CROSS TIMBERS ROYALTY TRUST DECLARES MARCH CASH DISTRIBUTION

Rhea-AI Summary

Cross Timbers Royalty Trust (CRT) declared a cash distribution of $0.019390 per unit to unitholders, with underlying oil and gas sales data provided. XTO Energy recovered excess costs on properties but no proceeds were left for distribution. Excess costs increased on Oklahoma properties due to drilling costs.

Positive

• None.

Negative

• Excess costs remaining on Texas and Oklahoma properties affect distribution amounts negatively.
• Fluctuating sales volumes based on cash receipts timing may impact monthly distributions.

Insights

Financial Analyst

The recent announcement by Cross Timbers Royalty Trust regarding the cash distribution of $0.019390 per unit represents a routine operational update for current and potential investors. However, the disclosed sales volumes and average prices for oil and gas provide a snapshot of the company's recent performance in the commodities market. The slight increase in oil sales volumes and a significant drop in gas sales volumes compared to the prior month could be indicative of operational shifts or market dynamics affecting supply and demand.

Moreover, the average price for gas has seen a notable increase, which might suggest an improving market condition for gas or a strategic maneuver by the Trust to capitalize on favorable pricing. These factors could potentially influence the Trust's revenue and, by extension, the distribution amounts to unitholders. Investors should monitor these trends as they could impact future distributions and the Trust's financial health.

Energy Sector Analyst

The update on excess costs recovery and the remaining cumulative excess costs provides insight into the operational challenges faced by the Trust. For instance, XTO Energy's advisory on the recovery of $8,000 of excess costs on Texas Working Interest net profits interests, paired with the substantial remaining cumulative excess costs, highlights the financial obligations that can weigh on the Trust's net income. The drilling costs associated with the new wells in the Oklahoma Working Interest net profits interests, while not reducing net proceeds this month, reflect ongoing capital expenditures that are essential for maintaining and expanding production capabilities.

These operational details are vital for stakeholders to understand the Trust's capital management and its potential impact on future distributions. While the current production is contributing positively, the significant excess costs serve as a reminder of the financial discipline required in the energy sector, especially in the context of fluctuating commodity prices and the capital-intensive nature of oil and gas operations.

DALLAS, March 18, 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 $0.019390 per unit, payable on April 12, 2024, to unitholders of record on March 28, 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		15,000			50,000		$73.26		$5.94
Prior Month Distribution			14,000		123,000		$73.21			$4.26
(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 $8,000 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 $3,375,000, including accrued interest of $883,000.

XTO Energy has advised the Trustee excess costs increased by $707,000 on properties underlying the Oklahoma Working Interest net profits interests, primarily due to drilling costs from the Hewitt Unit for six new drill wells completed in fourth quarter 2023 that are currently producing. 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 $724,000, including accrued interest of $113.

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-march-cash-distribution-302091008.html

SOURCE Cross Timbers Royalty Trust

FAQ

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

Cross Timbers Royalty Trust declared a cash distribution of $0.019390 per unit.

When will the cash distribution be payable to unitholders?

The cash distribution will be payable on April 12, 2024.

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

The underlying oil sales volume is 15,000 Bbls, and the gas sales volume is 50,000 Mcf.

How much were the excess costs recovered on properties underlying the Texas Working Interest net profits interests?

$8,000 of excess costs were recovered on properties underlying the Texas Working Interest net profits interests.

What caused the increase in excess costs on properties underlying the Oklahoma Working Interest net profits interests?

Excess costs increased by $707,000 primarily due to drilling costs from the Hewitt Unit for six new drill wells completed in fourth quarter 2023.