8-K: Cross Timbers Royalty Trust Announces December Cash Distribution of $0.062265 Per Unit

Cross Timbers Royalty Trust declared a December cash distribution of $0.062265 per unit, payable on January 15, 2025, to unitholders of record on December 31, 2024.

Summary

• Cross Timbers Royalty Trust has announced a cash distribution of $0.062265 per unit.
• The distribution is payable on January 15, 2025, to unitholders of record on December 31, 2024.
• The current month's distribution is based on sales of 13,000 barrels of oil at an average price of $69.15 per barrel and 68,000 Mcf of gas at an average price of $3.26 per Mcf.
• The prior month's distribution was based on sales of 13,000 barrels of oil at an average price of $71.39 per barrel and 86,000 Mcf of gas at an average price of $3.54 per Mcf.
• Excess costs on the Texas Working Interest net profits interests increased by $69,000.
• The total cumulative excess costs remaining on the Texas Working Interest net profits interests are $4,256,000, including accrued interest of $1,115,000.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. The distribution is positive, but the increase in excess costs is a concern.

Positives

• The Trust is continuing to provide monthly cash distributions to its unitholders.
• The Trust has provided detailed information on the underlying sales volumes and average prices for the current and prior month's distributions.

Negatives

• Excess costs on the Texas Working Interest net profits interests increased by $69,000.
• The cumulative excess costs on the Texas Working Interest net profits interests remain substantial at $4,256,000.

Risks

• Fluctuations in oil and gas prices can impact the Trust's revenue and distributions.
• The timing of cash receipts can cause sales volumes to fluctuate from month to month.
• The significant cumulative excess costs on the Texas Working Interest net profits interests could impact future distributions.

Future Outlook

The Trust will continue to provide monthly cash distributions based on underlying oil and gas sales and prices.

Management Comments

• Argent Trust Company, as Trustee of the Cross Timbers Royalty Trust, declared the cash distribution.
• XTO Energy advised the Trustee about the increase in excess costs.

Industry Context

The announcement is typical for royalty trusts, which distribute income from oil and gas production to unitholders. The results are dependent on commodity prices and production volumes.

Comparison to Industry Standards

• The distribution amount is within the range of typical distributions for royalty trusts, but the specific amount varies based on the underlying assets and commodity prices.
• Other royalty trusts such as Permian Basin Royalty Trust (PBT) and Sabine Royalty Trust (SBR) also provide monthly distributions based on oil and gas production.
• The excess costs are a common issue for royalty trusts, and the amount is specific to the underlying properties of Cross Timbers Royalty Trust.

Stakeholder Impact

• Unitholders will receive a cash distribution of $0.062265 per unit.
• The distribution amount is subject to fluctuations in oil and gas prices and production volumes.

Next Steps

• The next cash distribution will be announced in the following month.
• The Trust will continue to monitor oil and gas sales and prices.

Key Dates

Keywords

cash distribution, royalty trust, oil and gas, unit holders, excess costs, sales volumes, average price