[144] iRhythm Technologies, Inc SEC Filing

Rhea-AI Filing Summary

TXO Partners, L.P. (TXO) Q2-25 10-Q highlights

• Top-line growth: revenue rose 57 % YoY to $89.9 m on 21 % higher volumes (2.37 MMBoe); natural-gas price recovery and Williston Basin assets drove gains.
• Bottom-line pressure: quarter posted a small $0.1 m net loss versus $2.8 m profit a year ago as DD&A doubled to $21.7 m and G&A expense (+106 %) absorbed unit-based comp.
• Cash metrics solid: operating cash flow up 19 % to $57.5 m YTD; Adjusted EBITDAX climbed 30 % to $27.5 m for the quarter.
• Balance-sheet reset: May equity offering raised $189.5 m; long-term debt cut to $19.1 m from $157.1 m YE-24. Post-quarter, borrowing base lifted from $275 m to $410 m, funding the $338.6 m White Rock Energy acquisition that closed 31 Jul 25.
• Hedging support: $14.8 m quarterly derivative gain (realized + unrealized) cushioned commodity swings; 50–90 % of forward PDP volumes hedged per covenant matrix.
• Returns to unitholders: distribution declared at $0.45 per unit (down from $0.61 in Q1); units outstanding increased 34 % to 54.8 m, diluting per-unit metrics.
• Liquidity & covenants: leverage well below 1×; in compliance with all credit facility tests; $7.95 m cash on hand.

Outlook: management targets “production & distribution” model—expect integration of WRE assets, stepped-up development spend (~$15 m YTD), and focus on maintaining hedge cover amid price volatility.

Positive

• Revenue up 57 % YoY on higher volumes and gas pricing.
• Adjusted EBITDAX +30 % to $27.5 m, improving cash generation.
• Long-term debt slashed 88 % to $19.1 m after $189 m equity raise.
• Borrowing base increased to $410 m, extending maturity to 2029.
• Strategic WRE acquisition adds Williston oil reserves and scale.

Negative

• Quarter swung to a net loss of $0.1 m vs. $2.8 m profit.
• DD&A and G&A costs doubled, compressing margins.
• Unit count up 34 %, causing dilution and lower per-unit metrics.
• Quarterly distribution cut from $0.61 to $0.45.
• Interest expense +145 % despite lower debt, reflecting higher rates.

Insights

Financial Analyst

TL;DR — solid revenue & cash flow growth but margin erosion and dilution temper upside.

Volume-driven revenue surge and sizeable hedge gains lifted Adjusted EBITDAX 30 %. Equity raise delevered the balance sheet and increased liquidity ahead of the WRE deal; borrowing base step-up provides ample headroom. Yet per-unit economics weakened: net loss, 110 % jump in DD&A, 19 % higher opex, and 106 % higher G&A. Distribution cut to $0.45 offsets some dilution but signals cash retention for integration. Near-term catalysts hinge on WRE asset performance and ability to compress operating costs toward historical norms.

Portfolio Manager

TL;DR — mixed; lower leverage good, but rising costs and unit count dilute thesis.

Debt reduction from $157 m to $19 m and expanded credit line materially lower financial risk; however, 13.4 m new units (+34 %) create headwind for per-unit cash flow. Operating loss underscores cost-control challenge as legacy PDP base ages. Distribution yield remains competitive (~11 % at $16) but coverage tight; sustainability rests on WRE synergy capture and commodity strip. Stock likely trades range-bound until integration proof points emerge.

Form 144 Filer Information	UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 144 NOTICE OF PROPOSED SALE OF SECURITIES PURSUANT TO RULE 144 UNDER THE SECURITIES ACT OF 1933
FORM 144

144: Filer Information

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144: Issuer Information

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Name of Person for Whose Account the Securities are To Be Sold

See the definition of "person" in paragraph (a) of Rule 144. Information is to be given not only as to the person for whose account the securities are to be sold but also as to all other persons included in that definition. In addition, information shall be given as to sales by all persons whose sales are required by paragraph (e) of Rule 144 to be aggregated with sales for the account of the person filing this notice.

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144: Securities Information

Title of the Class of Securities To Be Sold	Name and Address of the Broker	Number of Shares or Other Units To Be Sold	Aggregate Market Value	Number of Shares or Other Units Outstanding	Approximate Date of Sale	Name the Securities Exchange
Common	Morgan Stanley Smith Barney LLC Executive Financial Services 1 New York Plaza 8th Floor New York NY 10004	30000	4816190.87	32127763	08/05/2025	NASDAQ

Furnish the following information with respect to the acquisition of the securities to be sold and with respect to the payment of all or any part of the purchase price or other consideration therefor:

144: Securities To Be Sold

Title of the Class	Date you Acquired	Nature of Acquisition Transaction	Name of Person from Whom Acquired	Is this a Gift?	Date Donor Acquired	Amount of Securities Acquired	Date of Payment	Nature of Payment *
Common	11/01/2023	Restricted Stock	Issuer			7449	11/01/2023	Not Applicable
Common	06/06/2023	Open Market Purchase	Issuer			9755	06/06/2023	Cash
Common	11/01/2022	Restricted Stock	Issuer			12796	11/01/2022	Not Applicable

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FAQ

How did TXO (NYSE:TXO) perform financially in Q2 2025?

Revenue rose 57 % to $89.9 m, but the partnership posted a small $0.1 m loss; Adjusted EBITDAX improved 30 % to $27.5 m.

What is TXO’s current debt position?

Long-term debt was reduced to $19.1 m at 30 Jun 25 from $157.1 m at year-end, backed by a $410 m borrowing base credit facility maturing 2029.

Why was the unit distribution lowered to $0.45?

Management retained cash to help fund the $338.6 m White Rock Energy acquisition and offset higher operating costs and dilution from the May equity offering.

How was the White Rock Energy acquisition financed?

Through the $189.5 m May equity offering and incremental draws under the expanded credit facility; deal closed 31 Jul 25.

What hedging strategy does TXO employ?

The partnership hedges 35–90 % of projected PDP volumes per covenant triggers; Q2 delivered a $14.8 m gain from crude and gas derivatives.

Has TXO maintained covenant compliance?

Yes, TXO reported compliance with liquidity, current-ratio and leverage covenants as of 30 Jun 25.