8-K: Cross Timbers Royalty Trust Announces November Cash Distribution of $0.092742 Per Unit

Cross Timbers Royalty Trust declared a November cash distribution of $0.092742 per unit, payable on December 13, 2024, to unitholders of record on November 29, 2024.

Summary

• Cross Timbers Royalty Trust has announced a cash distribution of $0.092742 per unit.
• The distribution is payable on December 13, 2024, to unitholders of record on November 29, 2024.
• The current month's distribution is based on underlying 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.
• The prior month's distribution was based on sales of 12,000 barrels of oil at an average price of $76.77 per barrel and 82,000 Mcf of gas at an average price of $4.46 per Mcf.
• Excess costs on the Texas Working Interest net profits interests increased by $133,000, but did not reduce net proceeds from the remaining conveyances.
• The cumulative excess costs remaining on the Texas Working Interest net profits interests total $4,160,000, including accrued interest of $1,088,000.

Sentiment

Score: 5

Explanation: The sentiment is neutral to slightly negative due to the decrease in oil and gas 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

• Oil prices decreased from $76.77 per barrel in the prior month to $71.39 per barrel in the current month.
• Gas prices decreased from $4.46 per Mcf in the prior month to $3.54 per Mcf in the current month.
• Excess costs on the Texas Working Interest net profits interests increased by $133,000.

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 any specific forward-looking statements or guidance beyond the current distribution.

Management Comments

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

Industry Context

This announcement is typical for royalty trusts, which distribute cash based on underlying oil and gas sales. The fluctuations in oil and gas prices and the impact of excess costs are common factors affecting these distributions.

Comparison to Industry Standards

• Other royalty trusts such as Permian Basin Royalty Trust (PBT) and Sabine Royalty Trust (SBR) also distribute cash to unitholders based on oil and gas production.
• The distribution amount of $0.092742 per unit is within the range of typical distributions for royalty trusts, but varies based on production volumes and commodity prices.
• The reported excess costs are a common issue for royalty trusts, and the cumulative amount of $4,160,000 is a significant factor to monitor.

Stakeholder Impact

• Unitholders will receive a cash distribution, although it is lower than the previous month.
• The Trust's performance is directly tied to oil and gas prices, impacting the value of the units.

Next Steps

• Unitholders will receive the cash distribution on December 13, 2024.
• The Trust will continue to monitor oil and gas sales and excess costs for future distributions.

Key Dates

Keywords

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