TXO Partners, a Fort Worth-based oil and gas company, announced Monday it has raised nearly $24 million through the sale of additional shares, helping fund a previously announced deal to acquire new assets.
The company’s underwriters exercised their option to buy an extra 1.75 million shares — known as "common units" — at $15 each. After subtracting fees and commissions, TXO expects to net about $23.9 million from the sale.
TXO plans to use the proceeds to help pay for the acquisition of assets from White Rock Energy, a company backed by investment firm Quantum Capital Group. If that deal doesn’t go through, the money will instead be used to pay down debt and for general corporate needs, according to a press release.
The stock offering was led by Raymond James and Stifel, with Capital One, Mizuho, and Texas Capital Securities also helping manage the deal.
TXO Partners, L.P. is a master limited partnership specializing in the acquisition, development, and optimization of conventional oil, natural gas, and natural gas liquids across North America. The company’s operations are primarily focused in the Permian Basin of West Texas and New Mexico, the San Juan Basin of New Mexico and Colorado, and the Williston Basin spanning Montana and North Dakota.
Bob Simpson retired as CEO in April. Gary D. Simpson and Brent W. Clum were promoted to serve as co-CEOs. Bob Simpson remained as chairman of the company.