TXO Partners slides on $175 mln equity raise for oil and gas assets acquisition

Shares of TXO Partners TXO.N down 16% premarket to $14.86 after acquisition-related equity offering prices

TXO set to snap 6-session winning streak

Fort Worth, Texas-based E&P firm sells ~11.7 mln common units at $15 for $175 mln gross proceeds

Offering price is 15.2% discount to stock's last close

It plans to use net proceeds to fund $475 mln purchase of certain oil, gas and mineral assets owned by White Rock Energy, which are located in the Williston Basin of Montana and North Dakota

If pending acquisition, expected to close in Q3 2025, is not completed, offering proceeds will be used to repay debt and for general purposes, co said

Raymond James and Stifel acting as jt bookrunners for equity offering

With ~41.2 mln units outstanding, TXO has roughly $728 mln market cap

Through Tues, TXO up 5% YTD

Avg rating among 4 analysts is "strongbuy" and median PT is $22.50, per LSEG data