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

Obsidian Energy and TXO Partners LP are both Oil & Gas E&P companies. TXO Partners LP is the larger, with a market value of $703.1M against $616.6M — 1.1× the size. TXO Partners LP has negative trailing earnings, so its P/E is not meaningful; Obsidian Energy trades at 29.9×. TXO Partners LP grew revenue faster over the last twelve months: −1.16% against −19.3%. Obsidian Energy has the higher net margin (4.53% vs −20.5%) and the higher return on invested capital (1.47% vs −6.22%). Across the 19 metrics below, Obsidian Energy leads on 15 and TXO Partners LP on 4.

Valuation

Metric OBE TXO Oil & Gas E&P median
P/E 29.94 n/m 9.67
P/S 1.40 1.95 1.76
P/B 0.61 1.18 1.19
Price to free cash flow n/m 2.79 8.37
EV/EBITDA 5.42 15.17 4.59
EV/Sales 2.05 2.68 2.27
Earnings yield 3.34% (11.02%) 7.55%
Free cash flow yield (21.65%) 35.83% 3.98%

Profitability

Metric OBE TXO Oil & Gas E&P median
Gross margin 63.83% 48.28% 79.54%
Operating margin 6.70% (23.74%) 24.01%
Net margin 4.53% (20.52%) 14.11%
Free cash flow margin (30.26%) 69.99% 7.72%
Return on equity 1.99% (11.09%) 8.99%
Return on assets 1.43% (5.76%) 4.63%
Return on invested capital 1.47% (6.22%) 6.33%

Growth

Metric OBE TXO Oil & Gas E&P median
Revenue growth (TTM) (19.29%) (1.16%) 13.60%
EPS growth (last fiscal year) 117.95% (166.15%) (10.17%)
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 0.45 0.29
Current ratio 0.78 0.63 0.92
Net debt to EBITDA 0.66 2.60 0.93

Dividend

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

Size

Metric OBE TXO Oil & Gas E&P median
Market cap 616.59m 703.06m 953.29m

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