CROSS TIMBERS ROYALTY TRUST DECLARES FEBRUARY CASH DISTRIBUTION

Rhea-AI Summary

Argent Trust Company, as Trustee of Cross Timbers Royalty Trust (NYSE:CRT), declared a cash distribution of $0.114156 per unit, with underlying oil and gas sales data. XTO Energy reported increased excess costs on properties but did not affect net proceeds.

Positive

• None.

Negative

• Excess costs increased on properties underlying Texas and Oklahoma Working Interest net profits interests, totaling $3,360,000 and $17,000, respectively, with accrued interest.
• Fluctuations in sales volumes may occur monthly based on cash receipt timings.

Insights

Financial Analyst

The declaration of a cash distribution by Cross Timbers Royalty Trust is a concrete financial event with immediate implications for stakeholders. The distribution amount of $0.114156 per unit is a critical figure for investors, as it directly impacts their return on investment. Analyzing the Trust's distribution in relation to the underlying oil and gas sales volumes and average prices provides insight into the Trust's performance. Notably, the consistency in oil sales volume coupled with a slight decrease in the average oil price from the prior month may indicate a stable production output but fluctuating market prices. The increase in gas sales volume could suggest an operational uptick or strategic shift in production focus.

Furthermore, the mention of excess costs related to the Texas and Oklahoma Working Interest net profits interests is significant. While these costs have increased, they have not affected the net proceeds from the remaining conveyances. This information is essential for evaluating the Trust's operational efficiency and cost management. The cumulative excess costs, especially the substantial amount on the Texas interests, could be indicative of broader industry trends or specific operational challenges.

Energy Sector Analyst

Understanding the dynamics of the energy sector is crucial when evaluating the performance of a royalty trust like Cross Timbers. The average prices of oil and gas as reported are reflective of the prevailing market conditions and can be affected by a multitude of factors including geopolitical events, supply-demand dynamics and regulatory changes. The reported average price for oil shows a decrease compared to the prior month, which could be indicative of broader market trends that might affect future distributions.

Additionally, the mention of 'excess costs' is a term specific to the energy sector, often relating to higher-than-expected operational or development expenses that can eat into the net profits from oil and gas sales. The fact that these costs have not reduced the net proceeds for the Trust is a positive sign, but the ongoing accumulation of such costs warrants monitoring as it could potentially impact future distributions if they begin to exceed revenue from underlying properties.

Market Research Analyst

From a market research perspective, the distribution announcement by Cross Timbers Royalty Trust can influence investor sentiment and the stock's market performance. Royalty trusts like CRT are often evaluated based on their distribution yields, which are a function of the distribution amount and the unit price. Even though the distribution has been declared, the market's reaction will hinge on how this distribution aligns with investor expectations and historical performance.

The disclosed sales volumes and average prices provide a snapshot of the Trust's financial health and operational success. Investors and analysts use this data to forecast future performance and distributions. The reported increase in gas volumes and the associated average prices can be assessed against industry benchmarks to gauge the Trust's competitive position in the market. Moreover, the management of excess costs and the Trust's ability to shield net proceeds from these costs can be seen as a testament to the Trust's financial resilience and operational strategy.

DALLAS, Feb. 16, 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 $0.114156 per unit, payable on March 14, 2024, to unitholders of record on February 29, 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		14,000			123,000		$73.21		$4.26
Prior Month Distribution			14,000		80,000		$79.71			$4.18
(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 excess costs increased by $172,000 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 $3,360,000, including accrued interest of $860,000.

XTO Energy has advised the Trustee excess costs increased by $17,000 on properties underlying the Oklahoma 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 Oklahoma Working Interest net profits interests total $17,000.

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-302063794.html

SOURCE Cross Timbers Royalty Trust

FAQ

What is the cash distribution declared by Argent Trust Company for Cross Timbers Royalty Trust (NYSE:CRT)?

Argent Trust Company declared a cash distribution of $0.114156 per unit.

When is the cash distribution payable to unitholders of Cross Timbers Royalty Trust (NYSE:CRT)?

The cash distribution is payable on March 14, 2024, to unitholders of record on February 29, 2024.

What are the underlying oil and gas sales volumes and average prices for the current month distribution?

Oil sales: 14,000 Bbls, Gas sales: 123,000 Mcf, Average prices: $73.21 per Bbl for oil, $4.26 per Mcf for gas.

How much did excess costs increase on properties underlying Texas and Oklahoma Working Interest net profits interests?

Excess costs increased by $172,000 on Texas properties and $17,000 on Oklahoma properties.

Where can more information about Cross Timbers Royalty Trust, including annual tax information and historical press releases, be found?

More information can be found on the website www.crt-crosstimbers.com.