CROSS TIMBERS ROYALTY TRUST DECLARES JANUARY CASH DISTRIBUTION

Rhea-AI Summary

Argent Trust Company, as Trustee of the Cross Timbers Royalty Trust, declared a cash distribution of $0.115323 per unit, payable on February 14, 2024, to unitholders of record on January 31, 2024. The underlying oil and gas sales and average prices for the current and prior month distributions are also provided. Excess costs increased by $52,000 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 $3,165,000, including accrued interest of $837,000.

Insights

Financial Analyst

The declaration of a cash distribution by Cross Timbers Royalty Trust signifies a direct financial impact on shareholders, warranting a closer look into the distribution's sustainability and the trust's revenue sources. A notable decrease in both oil and gas sales volumes and average prices compared to the previous month suggests a potential volatility in earnings, which could concern investors regarding future distributions. Furthermore, the mention of excess costs, despite not currently affecting net proceeds, introduces a risk factor that could potentially impact future profitability and distributions if these costs were to be deducted from net proceeds. Analyzing the trust's ability to manage and mitigate these excess costs will be crucial for assessing long-term financial health.

Market Research Analyst

Understanding the industry context is essential; the energy sector is known for its cyclical nature and sensitivity to geopolitical events, regulatory changes and technological advancements. The reported decrease in sales volumes and prices for Cross Timbers Royalty Trust may reflect broader market trends, such as fluctuations in global oil and gas prices or changes in demand. Investors should consider how these factors could influence the trust's performance. Additionally, the accumulation of excess costs on the Texas Working Interest net profits interests, even though not currently impacting net proceeds, indicates operational challenges that could affect the trust's competitive position and attractiveness to investors compared to its peers in the sector.

Energy Sector Analyst

The specifics of the Cross Timbers Royalty Trust's distribution, tied to underlying oil and gas sales, highlight the direct correlation between commodity prices and royalty income. The reduction in sales volumes and average prices from the prior distribution period raises questions about the underlying assets' production stability and the trust's pricing power. The energy market's inherent volatility necessitates a robust hedging strategy to safeguard against price swings. Additionally, the disclosure of excess costs, while not currently affecting net proceeds, is an indication of the operational challenges inherent in the energy sector. It's essential to monitor these costs as they could eventually erode future earnings and distributions if they continue to rise.

DALLAS, Jan. 19, 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 $0.115323 per unit, payable on February 14, 2024, to unitholders of record on January 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		14,000			80,000		$79.71		$4.18
Prior Month Distribution			19,000		118,000		$84.61			$5.24
(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 $52,000 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 $3,165,000, including accrued interest of $837,000.

For more information on the Trust, 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-302039192.html

SOURCE Cross Timbers Royalty Trust

FAQ

What is the cash distribution declared by Cross Timbers Royalty Trust?

The cash distribution declared by Cross Timbers Royalty Trust is $0.115323 per unit, payable on February 14, 2024, to unitholders of record on January 31, 2024.

What are the underlying oil and gas sales and average prices for the current and prior month distributions?

The underlying sales volumes for the current month are 14,000 Bbls of oil and 80,000 Mcf of gas, with average prices of $79.71 per Bbl of oil and $4.18 per Mcf of gas. For the prior month, the sales volumes were 19,000 Bbls of oil and 118,000 Mcf of gas, with average prices of $84.61 per Bbl of oil and $5.24 per Mcf of gas.

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

Excess costs increased by $52,000 on properties underlying the Texas Working Interest net profits interests.

What is the total amount of underlying cumulative excess costs remaining on the Texas Working Interest net profits interests?

The total underlying cumulative excess costs remaining on the Texas Working Interest net profits interests is $3,165,000, including accrued interest of $837,000.