8-K: Cross Timbers Royalty Trust Announces January Cash Distribution of $0.095 Per Unit

Cross Timbers Royalty Trust declared a January cash distribution of $0.095045 per unit, payable on February 14, 2025, to unitholders of record on January 31, 2025.

Summary

• Cross Timbers Royalty Trust has announced a cash distribution for January.
• The distribution is set at $0.095045 per unit.
• The payment will be made on February 14, 2025.
• Unitholders of record on January 31, 2025, will receive the distribution.
• The underlying oil sales volume for the current month was 13,000 barrels.
• The underlying gas sales volume for the current month was 114,000 Mcf.
• The average oil price was $68.38 per barrel.
• The average gas price was $3.78 per Mcf.
• XTO Energy recovered $24,000 of excess costs on Texas Working Interest properties.
• There were no remaining proceeds from the Texas Working Interest properties to be included in this month's distribution.
• The cumulative excess costs remaining on the Texas Working Interest net profits interests total $4,260,000, including accrued interest of $1,143,000.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. The announcement is routine, with a distribution being made, but the presence of significant cumulative excess costs is a concern.

Positives

• The Trust is making a cash distribution to unitholders.
• The distribution amount is clearly stated at $0.095045 per unit.
• The payment and record dates are clearly communicated.

Negatives

• There were no remaining proceeds from the Texas Working Interest properties to be included in this month's distribution after the partial recovery of excess costs.
• The cumulative excess costs on the Texas Working Interest net profits interests remain substantial at $4,260,000.

Risks

• Fluctuations in sales volumes can occur due to the timing of cash receipts.
• The remaining cumulative excess costs on the Texas Working Interest net profits interests could impact future distributions.
• The Trust's performance is dependent on oil and gas prices, which can be volatile.

Future Outlook

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

Management Comments

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

Industry Context

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

Comparison to Industry Standards

• The distribution of $0.095045 per unit 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 San Juan Basin Royalty Trust (SJT) also distribute monthly income based on production and prices.
• The excess cost recovery and remaining cumulative costs are specific to Cross Timbers Royalty Trust and its agreements with XTO Energy.

Stakeholder Impact

• Unitholders will receive a cash distribution of $0.095045 per unit.
• The distribution amount is influenced by oil and gas sales and prices, which directly impacts unitholder income.
• The remaining excess costs could affect future distributions.

Next Steps

• The next monthly 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