8-K: Cross Timbers Royalty Trust Announces April Cash Distribution of $0.032110 Per Unit

Cross Timbers Royalty Trust declares a cash distribution of $0.032110 per unit for April, payable on May 14, 2025.

Summary

• Cross Timbers Royalty Trust declared a cash distribution of $0.032110 per unit, payable on May 14, 2025, to unitholders of record on April 30, 2025.
• Underlying oil sales were 12,000 barrels at an average price of $69.99 per barrel.
• Underlying gas sales were 78,000 Mcf at an average price of $5.86 per Mcf.
• Excess costs on properties underlying the Texas Working Interest net profits interests increased by $136,000.
• Cumulative excess costs remaining on the Texas Working Interest net profits interests total $4,567,000, including accrued interest of $1,223,000.
• The Trustee withheld $50,000 from this month's distribution to increase the cash reserve.
• The Trustee intends to continue withholding $50,000 per month until the cash reserve reaches $1,500,000.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to the decreased distribution, increased excess costs, and the ongoing withholding for cash reserves. While the Trust continues to distribute cash, the factors mentioned above suggest a less favorable outlook compared to the previous month.

Positives

• The Trust continues to make monthly cash distributions to its unitholders.

Negatives

• Excess costs on the Texas Working Interest net profits interests increased by $136,000.
• The Trustee is withholding $50,000 from the monthly distribution to build up the cash reserve, reducing the immediate payout to unitholders.

Risks

• Fluctuations in oil and gas sales volumes can impact the monthly distribution amount.
• Excess costs on the Texas Working Interest net profits interests could further reduce net proceeds.
• The continued withholding of $50,000 per month to build the cash reserve will reduce distributable funds in the short term.

Future Outlook

The Trustee intends to continue withholding $50,000 from distributable funds per month until the cash reserve has reached $1,500,000.

Industry Context

Royalty trusts are sensitive to commodity prices and production volumes, making their distributions variable. This announcement reflects the impact of recent oil and gas prices and production on the Trust's cash flow.

Comparison to Industry Standards

• Distributions from royalty trusts are typically compared to other trusts with similar asset bases and cost structures.
• Factors such as geographical location, operator efficiency (e.g., XTO Energy in this case), and hedging strategies can influence performance relative to peers.
• Without a direct comparison to other royalty trusts, it's difficult to assess whether the $0.032110 per unit distribution is above or below average.

Stakeholder Impact

• Unitholders will receive a cash distribution of $0.032110 per unit.
• The reduced distribution and cash reserve withholding may disappoint some unitholders seeking immediate income.

Key Dates

Keywords

cash distribution, royalty trust, oil and gas, Cross Timbers Royalty Trust, CRT, excess costs, cash reserve