8-K: Cross Timbers Royalty Trust Announces January Cash Distribution of $0.115323 Per Unit

Cross Timbers Royalty Trust declared a January cash distribution of $0.115323 per unit, payable on February 14, 2024, to unitholders of record on January 31, 2024.

Summary

• Cross Timbers Royalty Trust has announced a cash distribution of $0.115323 per unit.
• The distribution is payable on February 14, 2024, to unitholders of record on January 31, 2024.
• The current month's distribution is 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.
• The prior month's distribution was based on sales of 19,000 barrels of oil at an average price of $84.61 per barrel and 118,000 Mcf of gas at an average price of $5.24 per Mcf.
• Excess costs on the Texas Working Interest net profits interests increased by $52,000.
• The cumulative excess costs remaining on the Texas Working Interest net profits interests total $3,165,000, including accrued interest of $837,000.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to decreased sales volumes and lower average prices, although the trust continues to make distributions.

Positives

• The Trust is continuing to provide monthly cash distributions to its unitholders.

Negatives

• Oil and gas sales volumes decreased compared to the prior month.
• Average prices for both oil and gas were lower than the prior month.
• Excess costs on the Texas Working Interest net profits interests increased by $52,000.

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 vary from month to month.
• Cumulative excess costs on the Texas Working Interest net profits interests remain significant at $3,165,000.

Management Comments

• Argent Trust Company, as Trustee of the Cross Timbers Royalty Trust, declared the cash distribution.

Industry Context

The announcement reflects the typical operational updates for royalty trusts, which are heavily influenced by commodity prices and production volumes.

Comparison to Industry Standards

• The distribution is dependent on the underlying oil and gas production and prices, which are subject to market volatility.
• Other royalty trusts may have different production profiles and cost structures, making direct comparisons challenging.
• The excess costs are specific to the Texas Working Interest and may not be representative of other royalty trusts.

Stakeholder Impact

• Unitholders will receive a cash distribution of $0.115323 per unit.
• The distribution is lower than the prior month due to decreased sales volumes and lower average prices.

Key Dates

Keywords

Cash Distribution, Royalty Trust, Oil and Gas, Unit Holders, Energy, CRT