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TXO (TXO Partners LP) Degree of Operating Leverage : -33.55 (As of Mar. 2025)


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What is TXO Partners LP Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. TXO Partners LP's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -33.55. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for TXO Partners LP's Degree of Operating Leverage or its related term are showing as below:

TXO's Degree of Operating Leverage is ranked better than
95.71% of 909 companies
in the Oil & Gas industry
Industry Median: 0.97 vs TXO: -33.55

TXO Partners LP Degree of Operating Leverage Historical Data

The historical data trend for TXO Partners LP's Degree of Operating Leverage 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 Degree of Operating Leverage Chart

TXO Partners LP Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
- -1.25 -12.53 -346.44 5.11

TXO Partners LP Quarterly Data
Dec20 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.18 9.53 24.59 5.11 -33.55

Competitive Comparison of TXO Partners LP's Degree of Operating Leverage

For the Oil & Gas E&P subindustry, TXO Partners LP's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage 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 Degree of Operating Leverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, TXO Partners LP's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where TXO Partners LP's Degree of Operating Leverage falls into.


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TXO Partners LP Degree of Operating Leverage Calculation

TXO Partners LP's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 26.163 (Mar. 2025) / -173.569 (Mar. 2024) - 1 )/( 299.696 (Mar. 2025) / 289.758 (Mar. 2024) - 1 )
=-1.1507/0.0343
=-33.55***

* 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.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


TXO Partners LP  (NYSE:TXO) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


TXO Partners LP Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of TXO Partners LP's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


TXO Partners LP Business Description

Industry
Traded in Other Exchanges
N/A
Address
400 West 7th Street, Fort Worth, TX, USA, 76102
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
Adams William H Iii director, other: See Remarks C/O MORNINGSTAR PARTNERS, L.P., 400 WEST 7TH STREET, 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
Phillip R Kevil director, 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
Global Endowment Management, Lp 10 percent owner 224 W TREMONT AVE, CHARLOTTE NC 28203
King Luther Capital Management Corp 10 percent owner 301 COMMERCE SUITE 1600, FORT WORTH TX 76102
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
Richard Jacob Settle director, other: See Remarks C/O MORNINGSTAR PARTNERS, L.P., 400 WEST 7TH STREET, FORT WORTH TX 76102