8-K: Cross Timbers Royalty Trust Announces February Cash Distribution of $0.114156 Per Unit

Cross Timbers Royalty Trust declared a February cash distribution of $0.114156 per unit, payable on March 14, 2024, to unitholders of record on February 29, 2024.

Summary

• Cross Timbers Royalty Trust has announced a cash distribution of $0.114156 per unit.
• The distribution is payable on March 14, 2024, to unitholders of record on February 29, 2024.
• The current month's distribution is based on sales of 14,000 barrels of oil at an average price of $73.21 per barrel and 123,000 Mcf of gas at an average price of $4.26 per Mcf.
• The prior month's distribution was based on sales of 14,000 barrels of oil at an average price of $79.71 per barrel and 80,000 Mcf of gas at an average price of $4.18 per Mcf.
• Excess costs on Texas properties increased by $172,000, with cumulative excess costs totaling $3,360,000, including $860,000 in accrued interest.
• Excess costs on Oklahoma properties increased by $17,000, with cumulative excess costs totaling $17,000.

Sentiment

Score: 5

Explanation: The sentiment is neutral to slightly negative due to the decrease in oil prices and the increase in excess costs, although a distribution was still made.

Positives

• The Trust is making a cash distribution to unitholders.
• The Trust provides transparency by disclosing underlying sales volumes and average prices.

Negatives

• Excess costs on Texas properties increased by $172,000.
• Cumulative excess costs on Texas properties are significant at $3,360,000.
• Oil prices decreased from $79.71 to $73.21 per barrel compared to the prior month.

Risks

• Fluctuations in oil and gas prices can impact the Trust's revenue and distributions.
• Excess costs can reduce the net proceeds available for distribution.
• The timing of cash receipts can cause fluctuations in sales volumes from month to month.

Future Outlook

The document does not provide specific forward-looking statements beyond the announced distribution.

Management Comments

• XTO Energy has advised the Trustee regarding excess costs on properties underlying the Texas and Oklahoma Working Interest net profits interests.

Industry Context

This announcement is typical for royalty trusts, which distribute cash flow from oil and gas production to unitholders. The distribution amount is influenced by commodity prices and production volumes.

Comparison to Industry Standards

• The distribution is in line with the business model of royalty trusts, which are designed to pass through income from oil and gas production.
• The fluctuation in oil and gas prices is a common factor affecting the distributions of similar trusts.
• The excess costs reported are a normal part of oil and gas operations and are often disclosed by royalty trusts.

Stakeholder Impact

• Unitholders will receive a cash distribution of $0.114156 per unit.
• The distribution amount is affected by oil and gas prices and excess costs.

Next Steps

• The Trust will pay the cash distribution on March 14, 2024.
• The Trust will continue to monitor oil and gas sales and excess costs.

Key Dates

Keywords

Royalty Trust, Cash Distribution, Oil and Gas, Unit Holders, Excess Costs, XTO Energy, Net Profits, Texas, Oklahoma