CROSS TIMBERS ROYALTY TRUST DECLARES OCTOBER CASH DISTRIBUTION

Rhea-AI Summary

Cross Timbers Royalty Trust (NYSE: CRT) has declared a cash distribution of $0.064592 per unit for October, payable on November 15, 2024, to unitholders of record on October 31, 2024. The Trust's underlying oil and gas sales volumes for the current month distribution were 12,000 Bbls of oil and 82,000 Mcf of gas, with average prices of $76.77 per Bbl for oil and $4.46 per Mcf for gas.

The September 2024 distribution included a $24,128 deduction related to the settlement of a royalty class action lawsuit. XTO Energy reported an increase of $125,000 in excess costs on properties underlying the Texas Working Interest net profits interests, with cumulative excess costs totaling $4,000,000, including accrued interest of $1,061,000.

Positive

• Cash distribution of $0.064592 per unit declared for October
• Increase in average gas price from $3.29 to $4.46 per Mcf compared to prior month

Negative

• Decrease in oil sales volume from 16,000 Bbls to 12,000 Bbls compared to prior month
• Decrease in gas sales volume from 138,000 Mcf to 82,000 Mcf compared to prior month
• $24,128 deduction in September distribution due to lawsuit settlement
• $125,000 increase in excess costs on Texas Working Interest properties
• Cumulative excess costs of $4,000,000 on Texas Working Interest properties

Insights

Financial Analyst

The Cross Timbers Royalty Trust's October cash distribution of $0.064592 per unit represents a significant event for unitholders. This distribution reflects the Trust's current financial health and operational performance. The underlying sales volumes show a decrease in both oil and gas compared to the prior month, with oil dropping from 16,000 to 12,000 barrels and gas from 138,000 to 82,000 Mcf.

While oil prices remained relatively stable ($76.77 vs $77.46 per barrel), there was a notable increase in gas prices from $3.29 to $4.46 per Mcf. This 35.6% jump in gas prices partially offset the reduced sales volumes.

The resolution of the Chieftain settlement is a positive development, reducing uncertainty. However, the $24,128 deduction as a production cost in the September distribution slightly impacts the Trust's income. The $4,000,000 in cumulative excess costs on Texas Working Interest properties, including $1,061,000 in accrued interest, remains a concern and could affect future distributions if not addressed.

DALLAS, Oct. 21, 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 $0.064592 per unit, payable on November 15, 2024, to unitholders of record on October 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		12,000			82,000		$76.77		$4.46
Prior Month Distribution			16,000		138,000		$77.46			$3.29
(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.

Litigation Settlement in Prior Month Distribution
A federal district court approved the settlement of a royalty class action lawsuit against XTO Energy Inc. (Chieftain Royalty Company v. XTO Energy Inc.) in March 2018. In July 2018, the class plaintiffs submitted their plan to allocate the settlement funds among members of the class. After that plan of allocation was approved, XTO Energy advised the Trustee that, based upon that plan, approximately $40,000 should be allocated to the Trust as additional production costs.

The Trustee objected to similar claims relating to the Chieftain settlement with respect to another trust for which it serves as trustee (the Hugoton Royalty Trust) in an arbitration styled Simmons Bank (successor to Southwest Bank and Bank of America, N.A.) vs. XTO Energy Inc. through the American Arbitration Association. The Trustee and XTO Energy entered into a settlement agreement on June 18, 2024, which resolved the issues subject to the arbitration. As a result, the September 2024 distribution included a $24,128 (net to the Trust) deduction allocated to the Trust as a production cost for the Chieftain settlement.

Excess Costs
XTO Energy has advised the Trustee that excess costs increased by $125,000 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 $4,000,000, including accrued interest of $1,061,000.

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-october-cash-distribution-302281452.html

SOURCE Cross Timbers Royalty Trust

FAQ

What is the October 2024 cash distribution amount for Cross Timbers Royalty Trust (CRT)?

Cross Timbers Royalty Trust (CRT) declared a cash distribution of $0.064592 per unit for October 2024.

When is the payment date for CRT's October 2024 distribution?

The payment date for CRT's October 2024 distribution is November 15, 2024.

What were the oil and gas sales volumes for CRT's current month distribution?

The oil and gas sales volumes for CRT's current month distribution were 12,000 Bbls of oil and 82,000 Mcf of gas.

How much did excess costs increase on CRT's Texas Working Interest properties?

XTO Energy reported that excess costs increased by $125,000 on properties underlying CRT's Texas Working Interest net profits interests.

What is the total amount of cumulative excess costs on CRT's Texas Working Interest properties?

The total cumulative excess costs on CRT's Texas Working Interest properties are $4,000,000, including accrued interest of $1,061,000.