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 ($786.8M and $765.4M). TXO Partners LP has negative trailing earnings, so its P/E is not meaningful; Obsidian Energy trades at 38.6×. 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 13 and TXO Partners LP on 6.

Valuation

Metric OBE TXO Oil & Gas E&P median
P/E 38.65 n/m 11.01
P/S 1.80 1.94 1.98
P/B 0.79 1.22 1.30
Price to free cash flow n/m 65.52 10.68
EV/EBITDA 6.49 9.01 5.09
EV/Sales 2.46 2.34 2.63
Earnings yield 2.59% (5.20%) 5.78%
Free cash flow yield (16.77%) 1.53% 4.91%

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% 8.18%
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%) (10.50%)
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 0.89

Dividend

Metric OBE TXO Oil & Gas E&P median
Dividend yield — 9.92% 3.29%
Payout ratio — — 0.35

Size

Metric OBE TXO Oil & Gas E&P median
Market cap 765.39m 786.78m 1.04b

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