TXO Partners to acquire Elm Coulee assets in up to $475M deal

TXO Partners (TXO) announced that it has entered into a purchase agreement with White Rock Energy, LLC, a portfolio company of Quantum Capital Group, to purchase producing assets in the Elm Coulee field in the Williston Basin of Montana and North Dakota. The total cash consideration by TXO will be approximately $350M, subject to customary purchase price adjustments. Of this purchase price, $70M will be deferred and payable one year after the initial closing. The agreement was signed in partnership with North Hudson Resource Partners LP, whose affiliates will acquire a 30% non-operated interest in the White Rock assets. Together with the interests to be acquired by North Hudson, the total consideration for the acquisition of White Rock’s Elm Coulee properties is $475 million based on a May 1, 2025, effective date. “This transaction is the perfect complement to our initial acquisition in the prolific Elm Coulee field of Montana last year,” commented Brent Clum, Co-Chief Executive Officer. “Importantly, the strong well economics and our development plan, even with the lower oil prices, provide a pathway for healthy economic returns. We remain focused on the long-term value creation and distribution strategy for our owners with a disciplined allocation of our capital. These Williston Basin properties deliver growth, compelling margins and long-term visibility.” This transaction is expected to close in the third quarter of 2025, subject to satisfaction of customary closing conditions. If consummated, the transaction is expected to add approximately 6,800 daily barrels of oil equivalent production to TXO and Proved Developed reserves of approximately 25,000 Mboe, as of April 30, 2025, as determined by Cawley, Gillespie & Associates, using SEC pricing.