Obsidian Energy (OBE) vs TXO Partners LP (TXO)

Obsidian Energy and TXO Partners LP are both Oil & Gas E&P companies. Obsidian Energy and TXO Partners LP are of similar size ($791.8M and $750.7M). TXO Partners LP has negative trailing earnings, so its P/E is not meaningful; Obsidian Energy trades at 34.5×. TXO Partners LP grew revenue faster over the last twelve months: 22.2% against −19.3%. Obsidian Energy has the higher net margin (4.53% vs −9.23%) and the higher return on invested capital (1.47% vs −3.33%). Across the 19 metrics below, Obsidian Energy leads on 14 and TXO Partners LP on 5.

Valuation

Metric OBE TXO Oil & Gas E&P median
P/E 34.48 n/m 10.57
P/S 1.61 1.96 1.80
P/B 0.71 1.23 1.27
Price to free cash flow n/m 66.02 9.99
EV/EBITDA 5.98 9.07 5.08
EV/Sales 2.27 2.36 2.39
Earnings yield 2.90% (5.16%) 6.06%
Free cash flow yield (18.80%) 1.51% 6.17%

Profitability

Metric OBE TXO Oil & Gas E&P median
Gross margin 63.83% 53.10% 80.41%
Operating margin 6.70% (10.63%) 21.39%
Net margin 4.53% (9.23%) 14.17%
Free cash flow margin (30.26%) 2.96% 9.71%
Return on equity 1.99% (5.35%) 10.05%
Return on assets 1.43% (3.26%) 5.81%
Return on invested capital 1.47% (3.33%) 6.32%

Growth

Metric OBE TXO Oil & Gas E&P median
Revenue growth (TTM) (19.29%) 22.18% 9.94%
EPS growth (last fiscal year) 117.95% (166.15%) —
Revenue growth, 5-year CAGR 15.86% 29.82% 18.67%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric OBE TXO Oil & Gas E&P median
Debt to equity 0.25 0.42 0.28
Current ratio 0.78 1.05 0.96
Net debt to EBITDA 0.66 2.60 0.91

Dividend

Metric OBE TXO Oil & Gas E&P median
Dividend yield — 10.97% 4.93%
Payout ratio 0.00 — 0.07

Size

Metric OBE TXO Oil & Gas E&P median
Market cap 750.71m 791.77m 923.59m

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