TXO swings to $74M Q1 loss on hedging hits; cuts distribution 41%, selling assets for debt

Filed May 4, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 1, 2025 · ~2 min read

Key Changes

• high

  Net loss of $74M in Q1 2026 vs. $2M profit prior year, driven by $91M in hedging losses ($68M unrealized) as oil spiked to $103/bbl amid Middle East conflict before moderating. Realized hedging losses of $14M are permanent cash impacts.

  MD&A: Results of Operations verify on EDGAR →
• high

  Company selling Cross Timbers properties for $200M gross ($100M net expected) to fund $70M deferred payment due July 31, 2026 from Williston acquisition. Two of three sales closed; third expected by end of Q2 2026.

  MD&A: Cross Timbers Transactions verify on EDGAR →
• high

  Quarterly distribution slashed 41% to $0.36/unit from $0.61/unit despite stable cash available for distribution ($29M), signaling discretionary capital preservation over payout priority.

  MD&A: Distributions verify on EDGAR →