8-K: Cross Timbers Royalty Trust Announces February Cash Distribution

Cross Timbers Royalty Trust declares a cash distribution of $0.045553 per unit for February.

Summary

• Cross Timbers Royalty Trust announced a cash distribution of $0.045553 per unit.
• The distribution is payable on March 14, 2025, to unitholders of record on February 28, 2025.
• For the current month, underlying oil sales were 12,000 barrels at an average price of $68.15 per barrel, and gas sales were 90,000 Mcf at an average price of $3.51 per Mcf.
• In the prior month, oil sales were 13,000 barrels at an average price of $68.38 per barrel, and gas sales were 114,000 Mcf at an average price of $3.78 per Mcf.
• Excess costs on properties underlying the Texas Working Interest net profits interests increased by $9,000.
• The underlying cumulative excess costs remaining on the Texas Working Interest net profits interests total $4,296,000, including accrued interest of $1,171,000.

Sentiment

Score: 5

Explanation: Neutral sentiment as it primarily reports factual information about the distribution and sales volumes. The increase in excess costs is a slightly negative factor.

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 $9,000.
• Cumulative excess costs remain significant at $4,296,000.

Risks

• Fluctuations in sales volumes can occur due to the timing of cash receipts.
• Excess costs can reduce net proceeds from conveyances, although they did not in the current month.

Future Outlook

The document does not contain specific forward-looking statements beyond the declared distribution.

Industry Context

Royalty trusts are sensitive to commodity prices and production volumes. This announcement reflects the Trust's performance based on recent oil and gas sales and prices.

Comparison to Industry Standards

• Comparable royalty trusts include those focused on oil and gas production, such as Permian Basin Royalty Trust (PBT) and San Juan Basin Royalty Trust (SJT).
• Distribution yields vary based on commodity prices and production, so comparing CRT's yield to peers requires analysis of their respective asset bases and cost structures.
• Excess costs are a common factor in royalty trusts, particularly those with older or more complex assets; the level of excess costs and their impact on distributions should be compared to similar trusts.

Stakeholder Impact

• Unitholders will receive a cash distribution of $0.045553 per unit.
• The distribution amount is influenced by oil and gas sales volumes and prices.

Key Dates

Keywords

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