Stock fact sheet · data as of
TXO Partners, L.P. (TXO): fair value, margin of safety and Wheel Score
Ticker symbol TXO · Energy · Oil & Gas Exploration & Production · United States · Partnership units · Speculative Income
TXO trades as units of TXO Partners, L.P., a limited partnership: owners receive a K-1 tax form instead of a 1099, and the payouts are distributions rather than dividends.
Is TXO undervalued?
TXO has a margin of safety of 62%: the stock closed at 13.09 on 5 Nov 2026 against a GLS average fair value of 34.48. 2 of the 2 valuation models that produced a number sit above the price. Our scans treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
The average is built from just 2 models (10 Cap, DDM) - the rest returned nothing because an input they need (dividends, free cash flow, book value) is zero or negative - so treat it with more caution than usual.
The nightly engine files TXO under Speculative - it is losing money or its Piotroski health score is 3 or lower - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan. It also carries the Income tag (Income = a dividend yield of 4% or more).
Nine valuation models for TXO
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | - | - | The most a defensive investor pays for the earnings and book value per share; no value tonight |
| Graham Growth | - | - | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields; no value tonight |
| Lynch | - | - | EPS × the earnings growth rate (PEG of 1), growth capped at 25%; no value tonight |
| GLS Growth | - | - | EPS compounded ten years at the blended growth rate, discounted back at 15% a year; no value tonight |
| 10 Cap | 48.20 | +268% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 20.75 | +58% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | - | - | Earnings power value: current EPS capitalised at 9% with no growth; no value tonight |
| Zombie (liquidation) | -10.24 | -178% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 21.00 | +60% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
TXO Partners, L.P. scores only 3 of 9 on the Piotroski F-score, which fails the "Piotroski 6 or more" Wheel Trade Filter. A reading this low means several of the basic tests - positive earnings, positive operating cash flow, falling debt, no new share issuance - are not met. A GLS Moat score of 2.4/10 is a weak reading: the accounts do not show returns and margins that competitors have been unable to wear down, so the Moat part of the Wheel Score contributes little.
Returns on capital are thin or negative - ROIC -2.2%, ROE -3.1%, ROA -1.6% - with debt at 0.42 times equity and a free-cash-flow yield of 17.5%.
The dividend yield is high at 10.77% (payout ratio -105%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Oil and Condensate 93%, Natural Gas 7% (quarter Q2 FY2026).
Institutional ownership scores 3/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 3 / 9 | ROIC | -2.2% |
|---|---|---|---|
| GLS Moat | 2.4 / 10 | ROE | -3.1% |
| Debt / equity | 0.42 | ROA | -1.6% |
| Free-cash-flow yield | 17.5% | Payout ratio | -105% |
| Institutions | 3 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 42: Weak
With a Wheel Score of 42 TXO Partners, L.P. sits in the Weak band. It fails filter 2, a real business, not a gamble - speculative (a loss, or a weak Piotroski score); and filter 4, financially healthy - Piotroski 3/9 (under 6); and filter 8, big enough - market cap $726M (under $1.0B); Option trading (weak) is its weakest part.
Implied volatility is 41% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 4,030 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 295k shares a day on a market cap of $726M, with a beta of -0.01 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Fails | speculative (a loss, or a weak Piotroski score) |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Fails | Piotroski 3/9 (under 6) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Fails | market cap $726M (under $1.0B) |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 62% below fair value | |
| Premium | Strong | implied volatility 41% | |
| Moat | Weak | moat 2.4/10 | |
| Health | Weak | Piotroski 3/9 | |
| Red Flags | Good | Red Flags score 80/100 | |
| Option trading | Weak | 178 contracts a day, 4,030 open interest | |
| Stability | Fair | beta -0.01, $726M company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for TXO in the nightly calendar. The shares go ex-dividend on 13 Nov 2026 (0.4400 per share), so a covered call sold before then carries a small early-assignment risk around that date.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Oil & Gas Exploration & Production
The 12 companies below are the closest to TXO Partners, L.P. by market cap within the Oil & Gas Exploration & Production industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| VTS Vitesse Energy, Inc. | 14.67 | 34.34 | +57% | 43Weak | $618M |
| OBE Obsidian Energy Ltd. | 9.21 | 2.75 | -235% | 31Weak | $615M |
| GPRK GeoPark Limited | 9.43 | 21.78 | +57% | 51Fair | $612M |
| GRNT Granite Ridge Resources, Inc | 4.63 | 4.45 | -4% | 26Weak | $611M |
| EGY VAALCO Energy, Inc. | 5.40 | 2.45 | -120% | 37Weak | $568M |
| REPX Riley Exploration Permian, Inc. | 42.88 | 71.28 | +40% | 51Fair | $930M |
| DEC Diversified Energy Company PLC | 13.33 | 225.79 | +94% | 32No options | $943M |
| HPK HighPeak Energy, Inc. | 7.57 | 7.12 | -6% | 21Weak | $957M |
| TBN Tamboran Resources Corp | 28.10 | 3.56 | -689% | 8No options | $982M |
| EXCE EXCO Resources, Inc. | 24.01 | 21.82 | -10% | 14No options | $518M |
| WTI W&T Offshore, Inc. | 3.21 | 9.52 | +66% | 44Weak | $497M |
| SD SandRidge Energy, Inc. | 12.60 | 27.38 | +54% | 49Weak | $467M |
Scan the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about TXO
Is TXO undervalued right now?
By the GLS models, yes: at 13.09 the stock is 62% below the average fair value of 34.48 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of TXO and what does it mean?
TXO scores 42 out of 100 (Weak) - it fails Wheel Trade Filters 2, 4, 8. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for TXO?
34.48 per share as of 5 Nov 2026 - the simple average of the 2 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does TXO Partners, L.P. report earnings next?
No upcoming earnings date is recorded for TXO in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does TXO have listed options, and how liquid are they?
Yes. The nightly snapshot found 16 listed contracts with 4,030 open interest across all expiries and implied volatility of 41% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.
Is TXO a partnership?
Yes. TXO trades as units of TXO Partners, L.P., a limited partnership: owners receive a K-1 tax form instead of a 1099, and the payouts are distributions rather than dividends.