TXO Partners, L.P.
Climate Impact & Sustainability Data (2020-12-31 to 2022-09-30, 2022, 2024)
Reporting Period: 2020-12-31 to 2022-09-30
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- Stringent federal, state, and local laws and regulations related to environmental and occupational health and safety issues.
- Risks arising from the threat of climate change (increased operating costs, limitations on exploration and production activities, reduced demand for produced oil, natural gas, and NGLs).
- Supply chain disruptions and inflationary pressures.
- Competition for drilling rigs, workover rigs, tubulars, and other well equipment, services, and supplies; increased labor costs and a decrease in qualified personnel.
Mitigation Strategies
- Opportunistic hedging of a portion of production volumes to mitigate exposure to price fluctuations.
- Pre-purchasing pipe for drilling, working with suppliers to ensure supply availability.
- Actions to strengthen supply chain to address inflationary pressures.
Supply Chain Management
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather conditions
Transition Risks
- Regulatory changes, market shifts
- Increased investor attention and risk of public and private litigation.
- Reduced demand for oil and gas due to conservation measures and technological advances.
Reporting Period: 2022
Environmental Metrics
Social Achievements
- Adopted enhanced safety measures and practices to protect employee health and safety and minimize the risk of business disruption in response to COVID-19.
Climate Goals & Targets
Environmental Challenges
- Supply chain disruptions due to inflation and global events.
- Risks related to climate change, including increased operating costs, limitations on exploration and production activities, and reduced demand for oil and natural gas.
- Increased political and regulatory risks in the United States, including climate change-related pledges made by elected officials.
- Increased litigation risks as entities sue oil and natural gas companies for contributing to climate change or for failing to disclose climate impacts.
- Financial risks for fossil fuel producers as shareholders and lenders shift investments away from carbon-intensive sectors.
Mitigation Strategies
- Opportunistic hedging of a portion of production to mitigate exposure to lower commodity prices.
- Pre-purchasing pipe and working with suppliers to ensure availability of supplies.
- Implementing plans to strengthen supply chain to address inflationary pressures.
Supply Chain Management
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather conditions
Transition Risks
- Regulatory changes
- Market shifts
- Reduced demand for oil and natural gas