Infinity Natural Resources Inc. (INR) vs TXO Partners LP (TXO)

Infinity Natural Resources Inc. and TXO Partners LP are both Oil & Gas E&P companies. Infinity Natural Resources Inc. is the larger, with a market value of $776.9M against $703.1M — 1.1× the size. TXO Partners LP has negative trailing earnings, so its P/E is not meaningful; Infinity Natural Resources Inc. trades at 4.0×. Infinity Natural Resources Inc. grew revenue faster over the last twelve months: 75.4% against −1.16%. Infinity Natural Resources Inc. has the higher net margin (9.70% vs −20.5%) and the higher return on invested capital (14.7% vs −6.22%). Across the 17 metrics below, Infinity Natural Resources Inc. leads on 14 and TXO Partners LP on 3.

Valuation

Metric INR TXO Oil & Gas E&P median
P/E 4.00 n/m 9.67
P/S 0.44 1.95 1.76
P/B 0.57 1.18 1.19
Price to free cash flow n/m 2.79 8.37
EV/EBITDA 2.07 15.17 4.59
EV/Sales 1.42 2.68 2.27
Earnings yield 25.00% (11.02%) 7.55%
Free cash flow yield (77.32%) 35.83% 3.98%

Profitability

Metric INR TXO Oil & Gas E&P median
Gross margin 85.21% 48.28% 79.54%
Operating margin 40.95% (23.74%) 24.01%
Net margin 9.70% (20.52%) 14.11%
Free cash flow margin (33.88%) 69.99% 7.72%
Return on equity 24.78% (11.09%) 8.99%
Return on assets 3.16% (5.76%) 4.63%
Return on invested capital 14.68% (6.22%) 6.33%

Growth

Metric INR TXO Oil & Gas E&P median
Revenue growth (TTM) 75.40% (1.16%) 13.60%
EPS growth (last fiscal year) — (166.15%) (10.17%)
Revenue growth, 5-year CAGR — 29.82% 18.67%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric INR TXO Oil & Gas E&P median
Debt to equity 1.35 0.45 0.29
Current ratio 0.87 0.63 0.92
Net debt to EBITDA 0.74 2.60 0.93

Dividend

Metric INR TXO Oil & Gas E&P median
Dividend yield — 11.11% 3.76%
Payout ratio — — 0.33

Size

Metric INR TXO Oil & Gas E&P median
Market cap 776.92m 703.06m 953.29m

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