Answer
The “implied yield” after a distribution is the return you would earn on the post‑distribution price of the security if you held it for the period covered by the distribution.
In the case of TXO Partners, the distribution is $0.45 per common unit for the quarter that ended June 30 2025 (to be paid on August 22 2025).
1. What you need to calculate the yield
| Variable | Definition |
|---|---|
| D | Distribution per unit for the period (here $0.45). |
| P_before | Closing price of TXO just before* the ex‑distribution date (i.e., the price at the end of trading on August 15 2025). |
| P_after | Expected market price after the distribution is paid (approximately P_before – D, because the market normally adjusts the price downward by the amount of the distribution). |
| Yield_quarter | Quarterly yield = D / P_after. |
| Yield_annual | Annualized yield = (D × 4) / Pafter (or 4 × Yieldquarter). |
Key point: The news article does not give the current price (Pbefore or Pafter). Without that price you cannot compute a numeric yield.
2. How to compute it once you have the price
Find the market price of TXO on the record‑date (close of trading on August 15 2025).
You can get this from any real‑time market data source, a brokerage platform, or a financial‑data website (e.g., Bloomberg, Yahoo Finance, Reuters).Adjust for the distribution:
[
P{\text{after}} \approx P{\text{before}} - D
]
(If you already have the price after the ex‑date, you can skip this step.)Calculate the quarterly yield:
[
\text{Yield}{\text{Q}} = \frac{D}{P{\text{after}}}
]Annualize (if desired):
[
\text{Yield}{\text{annual}} = 4 \times \text{Yield}{\text{Q}}
]
3. Example (illustrative only)
| Assumed price (for illustration) | Calculation |
|---|---|
| P_before = $10.00 (closing price on Aug 15) | |
| P_after ≈ $10.00 – $0.45 = $9.55 | |
| Quarterly yield = $0.45 / $9.55 = 4.71 % | |
| Annualized yield = 4 × 4.71 % = 18.8 % |
If the actual price were $12.00, the yields would be lower (quarterly ≈ 3.7 %, annual ≈ 14.9 %).
The numbers above are only a demonstration; you must substitute the real market price to obtain the true implied yield.
4. Practical steps you can take right now
- Look up TXO’s closing price on August 15 2025 (or the most recent price before the ex‑distribution date).
- Plug that price into the formula shown in Section 2.
- If you want the “post‑distribution price” rather than the “pre‑distribution price,” simply subtract $0.45 from the price you found and use the result in the denominator.
5. Bottom line
- The news article tells us the distribution amount ($0.45 per unit) but does not provide the current market price of TXO.
- Therefore, a numeric implied yield cannot be derived from the information given alone.
- Once you obtain TXO’s price around the record date, apply the simple formula
Yield = $0.45 / (price – $0.45)to get the quarterly yield, and multiply by 4 for an annualized figure.
If you can supply the current price (or the price on August 15 2025), I can instantly compute the exact implied yield for you.