TXO Energy Partners LP (TXO) has disclosed a new risk, in the Debt & Financing category.
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TXO Energy Partners LP has significantly increased its indebtedness with $150 million in outstanding borrowings under its Credit Facility as of December 31, 2024, raising its net debt-to-Adjusted EBITDAX ratio to approximately one. This heightened level of debt may limit the company’s agility in adapting to changing market conditions and elevate its exposure to interest rate fluctuations due to the variable rate nature of the borrowings. Consequently, a larger portion of its operational cash flows will be earmarked for servicing debt, potentially constraining investments in working capital, capital expenditures, acquisitions, and distributions to unitholders.
Overall, Wall Street has a Moderate Buy consensus rating on TXO stock based on 2 Buys.
To learn more about TXO Energy Partners LP’s risk factors, click here.