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 February 17, 2022, Simmons Bank, as Trustee for the Cross Timbers Royalty Trust (CRT), announced a cash distribution of $0.100915 per unit to unitholders, payable on March 14, 2022. The distribution records show current month oil sales at 16,000 Bbls and gas sales at 83,000 Mcf, with average prices of $71.53 per Bbl and $7.78 per Mcf. XTO Energy reported timing adjustments affecting January oil sales volumes and average prices. Additionally, there are $2.4 million in cumulative excess costs related to Texas interests.
Cross Timbers Royalty Trust (CRT) announced a cash distribution of $0.125725 per unit for January 2022, payable on February 14, 2022, to unitholders of record on January 31, 2022. Current oil sales volumes reached 85,000 Bbls at an average price of $55.83 per barrel, while gas sales were 94,000 Mcf at $7.35 per Mcf. In contrast, the prior month saw oil sales of 12,000 Bbls at $73.31 per barrel and gas at 109,000 Mcf at $6.50 per Mcf. Notably, there are $2.6 million in cumulative excess costs remaining from the Texas Working Interest net profits interests.
Simmons Bank, as Trustee of the Cross Timbers Royalty Trust (NYSE:CRT), announced a cash distribution of $0.137129 per unit, payable on January 14, 2022, to unitholders recorded by December 31, 2021. The December distribution reflects oil sales of 12,000 Bbls and gas sales of 109,000 Mcf, with average prices of $73.31 per Bbl for oil and $6.50 per Mcf for gas. Prior adjustments by XTO Energy impacted gas volumes significantly. Additionally, $6.3 million in cumulative excess costs remain unrecovered from Texas Working Interest properties.
On November 19, 2021, Simmons Bank, Trustee of the Cross Timbers Royalty Trust (CRT), declared a cash distribution of $0.073000 per unit, scheduled for December 14, 2021, to unitholders of record by November 30, 2021. The current month's distribution reflects a notable fluctuation in oil and gas sales volumes, with adjustments affecting reported figures due to timing issues from XTO Energy. Excess costs tied to properties under the Texas Working Interest have increased, totaling approximately $6.3 million cumulatively after the latest distribution.
Simmons Bank, as Trustee of the Cross Timbers Royalty Trust (CRT), announced a cash distribution of $0.067003 per unit, payable on November 15, 2021, to unitholders of record as of October 29, 2021. The current month distribution reflects 62,000 Bbls of oil and 8,000 Mcf of gas, with average prices at $47.84 per Bbl for oil and $26.98 per Mcf for gas. Noteworthy is the increase in excess costs by $3,599,000 due to adjustments affecting the Texas Working Interest. The cumulative excess costs now total $6.3 million.
Cross Timbers Royalty Trust (NYSE: CRT) has declared a cash distribution of $0.162571 per unit for September 2021, with an ex-dividend date of September 30, 2021 and payment set for October 15, 2021. Current month distributions showed underlying sales of 14,000 Bbls of oil and 134,000 Mcf of gas. Average prices increased to $68.14 per Bbl for oil and $6.53 per Mcf for gas. However, $56,000 in excess costs were recovered, leaving cumulative excess costs of $2.7 million after the latest distribution.
Cross Timbers Royalty Trust (CRT) announced a cash distribution of $0.097254 per unit, payable on September 15, 2021, to unitholders of record as of August 31, 2021. The current month distribution is based on underlying sales of 15,000 barrels of oil and 77,000 Mcf of gas, with average prices of $62.74 per barrel and $5.00 per Mcf. Comparatively, the prior month distribution included 18,000 barrels of oil and 108,000 Mcf of gas at $57.35 and $4.55 respectively. Notably, $30,000 in excess costs were recovered, but cumulative excess costs remain at $2.7 million.
Simmons Bank, as Trustee of Cross Timbers Royalty Trust (CRT), announced a cash distribution of $0.123792 per unit, payable on August 13, 2021, to unitholders of record on July 30, 2021. The current month distribution includes sales of 18,000 Bbls of oil and 108,000 Mcf of gas, with average prices of $57.35 per Bbl and $4.55 per Mcf. Notably, $53,000 in excess costs were recovered, although there remains a cumulative excess of $2.8 million on Texas Working Interest. More information can be found at www.crt-crosstimbers.com.
Simmons Bank, Trustee of the Cross Timbers Royalty Trust (CRT), announced a cash distribution of $0.104054 per unit, payable on July 15, 2021. This distribution is for unitholders of record as of June 30, 2021. The current month saw oil sales of 13,000 Bbls and gas sales of 47,000 Mcf, with average prices of $78.77 per Bbl for oil and $7.15 per Mcf for gas. Meanwhile, XTO Energy reported an increase in excess costs by $77,000, though these did not affect net proceeds, which remain at $2.8 million.
Simmons Bank, Trustee of the Cross Timbers Royalty Trust (NYSE:CRT), announced a cash distribution of $0.077704 per unit, payable on June 14, 2021. Unitholders of record on May 28, 2021 will receive this payout. Current month underlying sales included 13,000 barrels of oil and 67,000 Mcf of gas, with average prices of $57.03 per barrel and $5.46 per Mcf. In contrast, prior month sales were 23,000 barrels and 104,000 Mcf, showing a decline. Additionally, $31,000 of excess costs were recovered, leaving cumulative excess costs of $2.7 million.
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