Welcome to our dedicated page for Cross Timbers news (Ticker: CRT), a resource for investors and traders seeking the latest updates and insights on Cross Timbers stock.
Overview
Cross Timbers Royalty Trust (CRT) is a specialized U.S. trust that focuses on generating income through net profits interests derived from oil and gas royalties, overriding royalty interests, and working interests. Operating primarily in Texas, Oklahoma, and New Mexico, the trust manages a portfolio of producing properties that thus form the backbone of its revenue stream. In the competitive energy market, CRT utilizes its unique holding structure to convert production net proceeds into periodic cash distributions to its unitholders.
Business Model and Operations
The core business of Cross Timbers Royalty Trust lies in owning and managing net profits interests from oil and gas production. This entails obtaining proceeds from various forms of royalty interests associated with the production of hydrocarbons. The trust benefits from a structure that allows it to receive cash flows generated from producing properties, making it a key player in the royalty trust segment of the energy industry. It does not operate the producing facilities directly; rather, it leverages third-party operators to manage day-to-day production, while it focuses on the financial aspects such as cost recoveries and distribution of net revenues.
Revenue Generation and Distribution Mechanism
The trust's revenue is generated primarily through the earnings derived from oil and gas production on its underlying properties. Agents and operators like XTO Energy are typically involved in facilitating the production and managing operational expenses. The unique aspect of CRT's revenue generation is its focus on royalty and working interests, which allows it to capture a percentage of the net production income after accounting for operating costs and other recoverable expenditures. This income is then translated into cash distributions, which are distributed periodically to unitholders, often reflecting adjustments such as recovered excess costs from production-related expenses.
Geographic and Operational Footprint
With its underlying properties spread across key oil and gas producing regions in Texas, Oklahoma, and New Mexico, Cross Timbers Royalty Trust benefits from diversified geographic exposure. Each region brings its own operational dynamics and production characteristics, allowing the trust to balance local market challenges with overall portfolio strength. This geographic diversity not only mitigates region-specific risks but also offers multiple revenue streams that contribute to the trust's overall cash flow.
Market Position and Industry Context
Within the broader energy sector, CRT occupies a distinct niche among royalty trusts. While it shares similarities with other investment vehicles in the oil and gas space, its focus on net profits interests and production-derived royalties sets it apart. The trust's structure is designed to appeal to investors seeking exposure to the energy market without the operational complexities of direct production. The emphasis on transparent distribution mechanisms and structured recoveries from production activities further enhances its credibility among market participants and analysts who value consistent cash returns.
Operational Nuances and Cost Management
An important operational aspect of Cross Timbers Royalty Trust is its ongoing management of production costs and recoveries. The trust works closely with operating partners to monitor and recover excess costs from its working interest properties. These adjustments ensure that the net proceeds accurately reflect the underlying production performance and that unitholders receive cash distributions that mirror actual operational realities. The trust’s periodic distributions are adjusted based on recoveries and cost management practices, which demonstrates its commitment to maintaining financial transparency and operational efficiency.
Risk Factors and Investment Considerations
Investors should be aware that the performance of the trust is closely tied to fluctuations in oil and gas production, commodity prices, and operational expenses. While the trust benefits from diversified geographic exposure, it remains susceptible to market volatility inherent in the energy sector. The reliance on third-party operators introduces an element of operational risk, though the trust’s structure is designed to mitigate these factors by focusing on net proceeds rather than gross production figures. Understanding these risks is essential for valuing its distributions correctly within the context of broader energy market dynamics.
Expert Analysis and Industry Terminology
The description of Cross Timbers Royalty Trust utilizes industry-specific terminology such as royalty interests, net profits interests, and working interests. These terms are critical for understanding how the trust derives its income and manages production-related risks. By clearly defining these components, the trust is positioned as an instrument designed to generate steady cash flow through complex production mechanisms while simultaneously addressing operational cost recovery. This detailed analysis is intended to meet the needs of industry analysts and investors who require a thorough understanding of the underlying business model.
Summary
In summary, Cross Timbers Royalty Trust stands out as a specialized investment vehicle within the energy sector. Its main value proposition is based on earning net profits interests through oil and gas production, with a significant operational presence in Texas, Oklahoma, and New Mexico. The trust's structured approach to cost recovery and cash distribution, combined with its diversified geographic footprint, provides a transparent mechanism to capture the benefits of production without engaging directly in operational management. For those seeking an in-depth, reliable source of information about production-based royalty trusts, CRT offers a prime example of how complex energy assets can be leveraged to produce consistent financial returns.
On April 18, 2023, Argent Trust Company announced a cash distribution of $0.244670 per unit for holders of Cross Timbers Royalty Trust (NYSE:CRT). This payment is scheduled for May 12, 2023, to unitholders recorded as of April 28, 2023. The report detailed underlying sales, revealing current month oil sales of 14,000 Bbls and gas sales of 98,000 Mcf. The average price per barrel of oil was $75.27, while gas was $16.37. In comparison, the prior month recorded 19,000 Bbls of oil and 93,000 Mcf of gas with higher average prices of $81.55 for oil and $10.25 for gas. Despite an increase in excess costs by $139,000, these did not impact the net proceeds from the remaining conveyances significantly.
On March 21, 2023, Cross Timbers Royalty Trust (NYSE:CRT) announced a cash distribution of $0.179256 per unit for its unitholders, payable on April 14, 2023, to those on record by March 31, 2023. Current month sales showed 19,000 Bbls of oil and 93,000 Mcf of gas, with average prices at $81.55 per Bbl and $10.25 per Mcf. Compared to the previous month, oil volumes increased from 11,000 Bbls while gas volumes rose from 100,000 Mcf. However, excess costs increased by $34,000 for Texas properties, although this did not affect net proceeds significantly.
Cross Timbers Royalty Trust (NYSE:CRT) has announced a cash distribution of
On January 20, 2023, Argent Trust Company, as Trustee of the Cross Timbers Royalty Trust (NYSE:CRT), announced a cash distribution of
Simmons Bank, as Trustee of the Cross Timbers Royalty Trust (NYSE: CRT), announced a cash distribution of $0.150335 per unit, payable on January 17, 2023, to unitholders as of December 30, 2022. The current month distribution reflects sales of 14,000 barrels of oil and 101,000 Mcf of gas, with average prices of $84.61 per barrel and $10.44 per Mcf. Additionally, the Trust reported $214,000 of excess cost recoveries, but cumulative excess costs remain at $1.8 million. A new trustee, Argent Trust Company, will replace the current trustee on December 30, 2022.
Cross Timbers Royalty Trust announced a cash distribution of $0.161024 per unit, to be paid on December 14, 2022, for unitholders of record by November 30, 2022. The current month saw sales of 12,000 barrels of oil and 93,000 Mcf of gas, with average prices of $85.47 for oil and $10.74 for gas. Compared to the prior month, oil sales remained the same, while gas sales increased slightly from 92,000 Mcf. However, excess costs rose by $67,000 in Texas and $377,000 in Oklahoma, totaling $2.0 million and $0.7 million respectively in cumulative excess costs after the distribution.
FAQ
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What distinguishes a royalty trust like CRT from other energy companies?
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