By Robb M. Stewart

TXO Partners' shares dropped after the energy company priced an equity raising aimed at raising up to $175 million to help fund the acquisition of producing assets in Montana and North Dakota.

In early trading, the shares were 14% lower at $15.24. The stock is now down 9.5% so far this year, and has fallen 26% over the last 12 months.

TXO earlier priced a public offering of up to 11.7 million units of the company at $15 each. It granted the underwriters an option to buy up to an additional 1.75 million units at the same price.

In all, the company said it expects to bring in a net $165.3 million after underwriting discounts, commissions and before the option is exercised.

A day earlier, TXO reached a deal with White Rock Energy to buy additional properties in the Elm Coulee field in the Williston Basin for about $350 million in cash. The agreement was signed in partnership with North Hudson Resource Partners, which will acquire a 30% non-operated interest in the White Rock assets.

The acquisition will position TXO as a leading producer in the Elm Coulee field, which it said has an estimated resource base of 4 billion barrels of oil. The transaction is expected to close in the third quarter and is expected to add some 6,800 barrels of daily oil equivalent production for TXO.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

May 14, 2025 10:17 ET (14:17 GMT)

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