CROSS TIMBERS ROYALTY TRUST DECLARES JANUARY CASH DISTRIBUTION

Rhea-AI Summary

Argent Trust Company, as Trustee of the Cross Timbers Royalty Trust (NYSE: CRT), declared a cash distribution of $0.095045 per unit. This payment will be made on February 14, 2025, to unitholders of record as of January 31, 2025.

The underlying oil and gas sales volumes and average prices for the current and prior month distributions are as follows:

• Current Month Distribution: Oil - 13,000 Bbls at $68.38 per Bbl; Gas - 114,000 Mcf at $3.78 per Mcf.
• Prior Month Distribution: Oil - 13,000 Bbls at $69.15 per Bbl; Gas - 68,000 Mcf at $3.26 per Mcf.

XTO Energy reported a recovery of $24,000 in excess costs from the Texas Working Interest properties, but no remaining proceeds were available for this month's distribution. The cumulative excess costs for these properties total $4,260,000, including $1,143,000 in accrued interest.

For more information, visit the Trust's website at www.crt-crosstimbers.com.

Positive

• Declared cash distribution of $0.095045 per unit.
• Recovery of $24,000 in excess costs from Texas Working Interest properties.

Negative

• No remaining proceeds from Texas Working Interest properties for this month's distribution.
• Cumulative excess costs for Texas Working Interest properties total $4,260,000.

Insights

Financial Analyst

The monthly distribution of $0.095045 per unit represents ongoing cash flow generation from the Trust's oil and gas assets. Notable in this distribution is the 67.6% increase in gas sales volumes from 68,000 Mcf to 114,000 Mcf, coupled with a 15.9% improvement in gas prices from $3.26 to $3.78 per Mcf. Oil volumes remained stable at 13,000 barrels with a minimal price decline.

The recovery of $24,000 in excess costs from Texas Working Interest properties is positive, but the remaining $4.26 million in cumulative excess costs, including $1.14 million in accrued interest, continues to impact distribution potential. This substantial excess cost burden means unitholders aren't receiving the full benefit from these specific properties, though other assets continue generating distributable income.

For retail investors, it's important to understand that royalty trusts like CRT typically have declining production over time. The Trust's ability to recover excess costs while maintaining stable oil production suggests reasonable operational management, but the significant remaining excess cost balance warrants careful monitoring.

DALLAS, Jan. 21, 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 $0.095045 per unit, payable on February 14, 2025, to unitholders of record on January 31, 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		13,000			114,000		$68.38		$3.78
Prior Month Distribution			13,000		68,000		$69.15			$3.26
(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 $24,000 of excess costs were recovered on properties underlying the Texas Working Interest net profits interests. However, after the partial recovery, there were no remaining proceeds from the properties underlying the Texas Working Interest net profits interests to be included in this month's distribution. Underlying cumulative excess costs remaining on the Texas Working Interest net profits interests total $4,260,000, including accrued interest of $1,143,000.

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-january-cash-distribution-302354945.html

SOURCE Cross Timbers Royalty Trust

FAQ

What is the cash distribution amount declared by Cross Timbers Royalty Trust for January 2025?

The cash distribution amount declared by Cross Timbers Royalty Trust for January 2025 is $0.095045 per unit.

When will the January 2025 cash distribution be paid to CRT unitholders?

The January 2025 cash distribution will be paid on February 14, 2025.

What are the underlying oil and gas sales volumes for the current month's distribution?

The underlying oil sales volume is 13,000 Bbls at $68.38 per Bbl, and the gas sales volume is 114,000 Mcf at $3.78 per Mcf.

What are the cumulative excess costs for the Texas Working Interest properties?

The cumulative excess costs for the Texas Working Interest properties total $4,260,000, including $1,143,000 in accrued interest.

How much excess costs were recovered from the Texas Working Interest properties for the January 2025 distribution?

A total of $24,000 in excess costs were recovered from the Texas Working Interest properties for the January 2025 distribution.