Critical Survey: Sanchez Energy (OTCMKTS:SNEC) versus TXO Partners (NYSE:TXO)

Volatility and Risk

Sanchez Energy has a beta of 1.71, indicating that its stock price is 71% more volatile than the S&P 500. Comparatively, TXO Partners has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500.

Valuation & Earnings

This table compares Sanchez Energy and TXO Partners”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sanchez Energy	$1.06 billion	0.00	$85.21 million	N/A	N/A
TXO Partners	$380.72 million	2.13	-$103.99 million	($5.94)	-3.34

Sanchez Energy has higher revenue and earnings than TXO Partners.

Profitability

This table compares Sanchez Energy and TXO Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sanchez Energy	2.22%	-18.15%	3.09%
TXO Partners	-63.22%	8.05%	5.41%

Institutional & Insider Ownership

0.6% of Sanchez Energy shares are held by institutional investors. Comparatively, 27.4% of TXO Partners shares are held by institutional investors. 11.1% of Sanchez Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Sanchez Energy beats TXO Partners on 5 of the 8 factors compared between the two stocks.

About Sanchez Energy

Sanchez Energy Corporation, an independent exploration and production company, focuses on the acquisition and development of onshore unconventional oil and natural gas resources in the United States. It engages in the horizontal development of resources from the Eagle Ford Shale in South Texas. It also holds an undeveloped acreage position in the Tuscaloosa Marine Shale (TMS) in Mississippi and Louisiana. As of December 31, 2018, the company had assembled approximately 271,000 net acres in the Eagle Ford Shale; and owned approximately 34,000 net acres in the TMS. Sanchez Energy Corporation was founded in 2011 and is headquartered in Houston, Texas.

About TXO Partners

TXO Partners, L.P., an oil and natural gas company, focuses on the acquisition, development, optimization, and exploitation of conventional oil, natural gas, and natural gas liquid reserves in North America. Its acreage positions are concentrated in the Permian Basin of West Texas and New Mexico and the San Juan Basin of New Mexico and Colorado. The company was formerly known as TXO Energy Partners, L.P. and changed its name to TXO Partners, L.P. in May 2023. TXO Partners, L.P. was incorporated in 2012 and is based in Fort Worth, Texas.