CROSS TIMBERS ROYALTY TRUST DECLARES FEBRUARY CASH DISTRIBUTION

Rhea-AI Summary

Cross Timbers Royalty Trust (NYSE: CRT) has announced its February 2025 cash distribution of $0.045553 per unit, payable on March 14, 2025, to unitholders of record on February 28, 2025.

The Trust reported underlying sales volumes for the current month distribution of 12,000 barrels of oil at an average price of $68.15 per barrel and 90,000 Mcf of gas at $3.51 per Mcf. These figures show a decrease from the prior month's volumes of 13,000 barrels of oil at $68.38 per barrel and 114,000 Mcf of gas at $3.78 per Mcf.

XTO Energy reported an increase of $9,000 in excess costs on Texas Working Interest properties, with cumulative excess costs totaling $4,296,000, including accrued interest of $1,171,000.

Positive

• Oil price remained relatively stable at $68.15/Bbl compared to previous month's $68.38/Bbl

Negative

• Monthly distribution decreased to $0.045553 per unit
• Oil sales volume declined 7.7% from 13,000 to 12,000 barrels
• Gas sales volume dropped 21% from 114,000 to 90,000 Mcf
• Gas price decreased 7.1% from $3.78 to $3.51 per Mcf
• Excess costs increased by $9,000 on Texas Working Interest properties

Insights

Energy Royalty Trust Analyst

The February 2025 distribution of $0.045553 per unit reflects concerning trends in both production volumes and commodity prices. The 7.7% decline in oil production (from 13,000 to 12,000 barrels) and substantial 21.1% drop in gas volumes (from 114,000 to 90,000 Mcf) signal potential underlying issues with field performance.

The mounting excess costs on Texas Working Interest properties, now totaling $4.3 million with $1.17 million in accrued interest, represent a significant burden. While these costs didn't directly impact this month's distribution, they create a high hurdle that must be overcome before these properties can contribute to future payments. The growing interest portion (27.3% of total excess costs) suggests a prolonged recovery period.

The modest decline in commodity prices (oil down 0.3% and gas down 7.1%) compounds the impact of lower production volumes. For unitholders, this combination of factors - declining production, lower prices, and accumulating excess costs - raises questions about the sustainability of future distributions. The trust's mature assets typically exhibit natural production declines, and without new development (which royalty trusts cannot pursue), these trends are likely to continue.

DALLAS, Feb. 18, 2025 /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 $0.045553 per unit, payable on March 14, 2025, to unitholders of record on February 28, 2025. 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		12,000			90,000		$68.15		$3.51
Prior Month Distribution			13,000		114,000		$68.38			$3.78
(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 $9,000 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 $4,296,000, including accrued interest of $1,171,000.

             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-february-cash-distribution-302378442.html

SOURCE Cross Timbers Royalty Trust

FAQ

What is CRT's February 2025 distribution amount per unit?

Cross Timbers Royalty Trust (CRT) declared a cash distribution of $0.045553 per unit for February 2025.

When is CRT's February 2025 distribution payable?

The February 2025 distribution is payable on March 14, 2025, to unitholders of record on February 28, 2025.

How much did CRT's oil and gas sales volumes decrease in the current month?

Oil sales decreased from 13,000 to 12,000 barrels, and gas sales decreased from 114,000 to 90,000 Mcf.

What are the current excess costs for CRT's Texas Working Interest properties?

The cumulative excess costs for Texas Working Interest properties total $4,296,000, including accrued interest of $1,171,000.

What were CRT's average oil and gas prices for the current distribution?

The average price was $68.15 per barrel of oil and $3.51 per Mcf of gas.