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TXO Partners LP (TXO Partners LP) Beneish M-Score : -2.92 (As of May. 11, 2024)


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What is TXO Partners LP Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.92 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for TXO Partners LP's Beneish M-Score or its related term are showing as below:

TXO' s Beneish M-Score Range Over the Past 10 Years
Min: -2.92   Med: -2.8   Max: -2.78
Current: -2.92

During the past 4 years, the highest Beneish M-Score of TXO Partners LP was -2.78. The lowest was -2.92. And the median was -2.80.

TXO Partners LP Beneish M-Score Historical Data

The historical data trend for TXO Partners LP's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

TXO Partners LP Beneish M-Score Chart

TXO Partners LP Annual Data
Trend Dec20 Dec21 Dec22 Dec23
Beneish M-Score
- - - -2.78

TXO Partners LP Quarterly Data
Dec20 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - -2.82 -2.78 -2.92

Competitive Comparison of TXO Partners LP's Beneish M-Score

For the Oil & Gas E&P subindustry, TXO Partners LP's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

TXO Partners LP's Beneish M-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, TXO Partners LP's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where TXO Partners LP's Beneish M-Score falls into.


TXO Partners LP Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of TXO Partners LP for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.3824+0.528 * 1.5816+0.404 * 1.3472+0.892 * 0.6993+0.115 * 0.7379
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 3.426+4.679 * -0.094737-0.327 * 1.2351
=-2.92

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was $30.7 Mil.
Revenue was 67.439 + 91.973 + 69.874 + 60.472 = $289.8 Mil.
Gross Profit was 23.839 + 46.39 + 23.601 + 9.572 = $103.4 Mil.
Total Current Assets was $53.9 Mil.
Total Assets was $688.2 Mil.
Property, Plant and Equipment(Net PPE) was $623.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $43.9 Mil.
Selling, General, & Admin. Expense(SGA) was $8.3 Mil.
Total Current Liabilities was $39.7 Mil.
Long-Term Debt & Capital Lease Obligation was $26.1 Mil.
Net Income was 10.267 + -193.729 + 8.479 + -2.546 = $-177.5 Mil.
Non Operating Income was 8.413 + -217.861 + 5.199 + 6.72 = $-197.5 Mil.
Cash Flow from Operations was 25.197 + 17.418 + 24.179 + 18.404 = $85.2 Mil.
 Total Receivables was $31.8 Mil.
Revenue was 158.399 + 42.359 + 120.699 + 92.877 = $414.3 Mil.
Gross Profit was 112.137 + -2.376 + 77.307 + 46.785 = $233.9 Mil.
Total Current Assets was $62.2 Mil.
Total Assets was $907.1 Mil.
Property, Plant and Equipment(Net PPE) was $834.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $42.5 Mil.
Selling, General, & Admin. Expense(SGA) was $3.5 Mil.
Total Current Liabilities was $63.1 Mil.
Long-Term Debt & Capital Lease Obligation was $7.1 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(30.721 / 289.758) / (31.777 / 414.334)
=0.106023 / 0.076694
=1.3824

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(233.853 / 414.334) / (103.402 / 289.758)
=0.564407 / 0.356856
=1.5816

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (53.927 + 623.751) / 688.203) / (1 - (62.234 + 834.524) / 907.055)
=0.015293 / 0.011352
=1.3472

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=289.758 / 414.334
=0.6993

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(42.522 / (42.522 + 834.524)) / (43.867 / (43.867 + 623.751))
=0.048483 / 0.065707
=0.7379

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(8.319 / 289.758) / (3.472 / 414.334)
=0.02871 / 0.00838
=3.426

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((26.1 + 39.724) / 688.203) / ((7.1 + 63.144) / 907.055)
=0.095646 / 0.077442
=1.2351

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(-177.529 - -197.529 - 85.198) / 688.203
=-0.094737

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

TXO Partners LP has a M-score of -2.92 suggests that the company is unlikely to be a manipulator.

TXO Partners LP Beneish M-Score Related Terms

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TXO Partners LP (TXO Partners LP) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » TXO Partners LP (NYSE:TXO) » Definitions » Beneish M-Score
Comparable Companies
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Traded in Other Exchanges
7OJ:Germany
Address
400 West 7th Street, Fort Worth, TX, USA, 76102
Website
https://www.txopartners.com
TXO Partners LP is focused on the acquisition, development, optimization and exploitation of oil, natural gas, and natural gas liquid reserves in North America.
Executives
Phillip R Kevil director, other: See Remarks C/O MORNINGSTAR PARTNERS, L.P., 400 WEST 7TH STREET, FORT WORTH TX 76102
King Luther Capital Management Corp 10 percent owner 301 COMMERCE SUITE 1600, FORT WORTH TX 76102
Bob R Simpson director, 10 percent owner, officer: See Remarks, other: See Remarks C/O MORNINGSTAR PARTNERS, L.P., 400 WEST 7TH STREET, FORT WORTH TX 76102
Keith A Hutton director, 10 percent owner, officer: See Remarks, other: See Remarks C/O MORNINGSTAR PARTNERS, L.P., 400 WEST 7TH STREET, FORT WORTH TX 76102
Adams William H Iii director, other: See Remarks C/O MORNINGSTAR PARTNERS, L.P., 400 WEST 7TH STREET, FORT WORTH TX 76102
Global Endowment Management, Lp 10 percent owner 224 W TREMONT AVE, CHARLOTTE NC 28203
Lkcm Investment Partnership, L.p. 10 percent owner 301 COMMERCE STREET, SUITE 1600, FORT WORTH TX 76102
Lkcm Private Discipline Master Fund, Spc 10 percent owner PO BOX 309GT, UGLAND HOUSE, SOUTH CHURCH STREET, GRAND CAYMAN E9 00000
King J Luther Jr director, 10 percent owner, other: See Remarks C/O MORNINGSTAR PARTNERS, L.P., 400 WEST 7TH STREET, FORT WORTH TX 76102
Brent W. Clum director, officer: See Remarks, other: See Remarks C/O MORNINGSTAR PARTNERS, L.P., 400 W. 7TH STREET, FORT WORTH TX 76102
Scott T. Agosta officer: See Remarks, other: See Remarks C/O MORNINGSTAR PARTNERS, L.P., 400 W. 7TH STREET, FORT WORTH TX 76102
Richard Jacob Settle director, other: See Remarks C/O MORNINGSTAR PARTNERS, L.P., 400 WEST 7TH STREET, FORT WORTH TX 76102