CROSS TIMBERS ROYALTY TRUST DECLARES DECEMBER CASH DISTRIBUTION

Rhea-AI Summary

Cross Timbers Royalty Trust (NYSE: CRT) has announced a cash distribution of $0.062265 per unit, payable on January 15, 2025, to unitholders of record on December 31, 2024. The Trust's underlying sales volumes show 13,000 barrels of oil and 68,000 Mcf of gas for the current month, with average prices of $69.15 per barrel for oil and $3.26 per Mcf for gas.

XTO Energy reported an increase in excess costs of $69,000 on Texas Working Interest net profits interests. The cumulative excess costs total $4,256,000, including accrued interest of $1,115,000. These excess costs did not impact net proceeds from other conveyances.

Positive

• Maintained stable oil production volumes at 13,000 barrels month-over-month
• Continuing regular monthly distributions to unitholders

Negative

• Gas sales volume decreased by 21% from 86,000 Mcf to 68,000 Mcf
• Oil prices declined by 3.1% from $71.39 to $69.15 per barrel
• Gas prices dropped by 7.9% from $3.54 to $3.26 per Mcf
• Excess costs increased by $69,000 on Texas Working Interest properties
• High cumulative excess costs of $4.26M including interest

Insights

Energy Markets Analyst

The December distribution of $0.062265 per unit reflects concerning trends in both oil and gas markets. The underlying sales data shows stable oil volumes at 13,000 barrels but a notable 21% decline in gas volumes from 86,000 Mcf to 68,000 Mcf. Oil prices dropped by $2.24 per barrel while gas prices fell $0.28 per Mcf month-over-month.

The growing excess costs on Texas Working Interest properties, increasing by $69,000 to reach $4.26 million (including interest), signals operational challenges. This cost structure, combined with lower commodity prices and reduced gas volumes, puts pressure on future distributions. The current yield appears unsustainable without improvement in either production volumes or commodity prices.

For retail investors seeking simplified context: Think of this royalty trust like a rental property where both the number of tenants (production volumes) and the rent they're paying (commodity prices) are declining, while maintenance costs (excess costs) are rising. This isn't a healthy combination for maintaining steady income payments.

DALLAS, Dec. 20, 2024 /PRNewswire/ -- Argent Trust Company, as Trustee of the Cross Timbers Royalty Trust (the "Trust") (NYSE: CRT), today declared a cash distribution to the holders of its units of beneficial interest of $0.062265 per unit, payable on January 15, 2025, to unitholders of record on December 31, 2024. The following table shows underlying oil and gas sales and average prices attributable to the current month and prior month distributions.

		Underlying Sales
		Volumes (a)					Average Price
		Oil (Bbls)			Gas (Mcf)		Oil (per Bbl)			Gas (per Mcf)
Current Month Distribution		13,000			68,000		$69.15		$3.26
Prior Month Distribution			13,000		86,000		$71.39			$3.54
(a) Sales volumes are recorded in the month the Trust receives the related net profits income. Because of this, sales volumes may fluctuate from month to month based on the timing of cash receipts.

Excess Costs
XTO Energy has advised the Trustee that excess costs increased by $69,000 on properties underlying the Texas Working Interest net profits interests. However, these excess costs did not reduce net proceeds from the remaining conveyances. Underlying cumulative excess costs remaining on the Texas Working Interest net profits interests total $4,256,000, including accrued interest of $1,115,000.

For more information on the Trust, including the annual tax information, distribution amounts, and historical press releases, please visit our website at www.crt-crosstimbers.com.

View original content:https://www.prnewswire.com/news-releases/cross-timbers-royalty-trust-declares-december-cash-distribution-302336220.html

SOURCE Cross Timbers Royalty Trust

FAQ

What is the December 2024 distribution amount for Cross Timbers Royalty Trust (CRT)?

Cross Timbers Royalty Trust declared a cash distribution of $0.062265 per unit for December 2024, payable on January 15, 2025.

How did CRT's oil and gas production volumes change in the latest report?

Oil production remained stable at 13,000 barrels, while gas production decreased from 86,000 Mcf to 68,000 Mcf.

What are the current oil and gas prices for CRT's December 2024 distribution?

The average prices for the current distribution are $69.15 per barrel of oil and $3.26 per Mcf of gas.

How much are the total excess costs for CRT's Texas Working Interest properties?

The total cumulative excess costs are $4,256,000, including accrued interest of $1,115,000.

When is the record date for CRT's December 2024 distribution?

The record date for the December 2024 distribution is December 31, 2024.