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TXO Partners
TXO Partners launched in 2012 with Bob R. Simpson, the former co-founder of XTO Energy, as Chairman and CEO.
TXO Partners
TXO Partners launched in 2012 with Bob R. Simpson, the former co-founder of XTO Energy, as Chairman and CEO. Simpson sold XTO to ExxonMobil for $41 billion in 2010, then applied his technical and operational playbook to a new vehicle. The partnership went public in early 2023 on the NYSE under the ticker TXO, raising capital to consolidate legacy producing properties in mature US basins. TXO targets conventional oil and natural gas reservoirs where it can apply low-decline production management rather than high-risk exploration drilling. Its asset base concentrates in the Permian Basin of West Texas and New Mexico and the San Juan Basin of Colorado and New Mexico. The partnership structure enforces disciplined capital returns — TXO has paid quarterly distributions since going public, funded by operating cash flow rather than debt or asset sales. Confirmed acquisitions include properties in Eddy County, New Mexico and Glasscock County, Texas. As of early 2024, Simpson retained an ownership stake north of 15 million common units, anchoring management alignment with public unitholders. The firm operates from Fort Worth, Texas, where XTO Energy was once headquartered. In October 2023, TXO closed an acquisition of additional San Juan Basin natural gas assets for approximately $76 million (per the firm, October 2023). The deal increased net production and extended the partnership's reserve life in a basin it considers core. TXO partners with institutional co-investors and private equity firms on select acquisitions, using an operating-company model where the general partner manages day-to-day field operations. The governance structure separates the general partner from the MLP unitholders, with Simpson controlling the general partner entity. That architecture echoes the legacy XTO model — technically skilled operators running mature, cash-generating assets, returning capital predictably to investors rather than reinvesting aggressively in undeveloped acreage.
General information
Firm type
Asset Manager
Year founded
2012
AUM
Undisclosed
Location
Region
North America
Country
United States
City
Fort Worth
Corporate office
Fort Worth, TX, United States
Principals
Bob R. Simpson
Chairman and CEO
Brent Clum
President and CFO
Sector focus
Frequently asked questions
Who controls investment decisions at TXO Partners?
Bob R. Simpson, as Chairman and CEO, holds ultimate authority over acquisition and capital allocation decisions through his control of the general partner entity. His track record at XTO Energy — which he built into one of the largest independent natural gas producers before selling it — is central to the partnership's thesis. Brent Clum serves as President and CFO, overseeing financial operations and acquisition execution. The governance structure concentrates strategic discretion in the general partner rather than a shareholder vote.
How does TXO Partners source acquisition targets?
TXO relies on the operational network Simpson and his team built during the XTO Energy era, targeting legacy conventional assets that larger public E&P companies are divesting to redeploy capital elsewhere. The firm's technical staff evaluates reservoir performance, wellbore integrity, and decline curves before bidding. Their sourcing advantage is the ability to quickly assess and close on assets that don't fit the shale-focused strategies of major competitors.
What is TXO's relationship to XTO Energy?
TXO Partners is a separate entity with no legal or financial connection to XTO Energy, which Simpson sold to ExxonMobil in 2010. However, the operational philosophy and basin focus are direct descendants of the XTO approach — conventional reservoir management, low overhead, and high cash margins. Several members of TXO's technical team previously worked at XTO Energy, including Simpson himself.
How does TXO's partnership structure affect shareholder returns?
TXO is organized as a master limited partnership, which means it distributes the majority of available cash flow to unitholders quarterly. This structure incentivizes management to avoid dilutive capital raises and maintain high cash margins on production. Since going public in 2023, TXO has paid regular quarterly distributions funded by operating cash flow rather than debt, reflecting the partnership's focus on income over growth.
What basins does TXO currently operate in?
TXO's two core areas are the Permian Basin spanning West Texas and New Mexico, and the San Juan Basin in Colorado and New Mexico. Both are mature conventional plays with decades of production history and established infrastructure. The firm has stated publicly that it prefers basins with predictable geology and existing wellbore data, which reduces technical risk compared to unproven acreage positions.
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