8-K: Cross Timbers Royalty Trust Declares April Distribution

Cross Timbers Royalty Trust announced a monthly cash distribution of $0.069720 per unit for April 2026.

Summary

• Cross Timbers Royalty Trust declared a cash distribution of $0.069720 per unit for unitholders of record on April 30, 2026, payable on May 14, 2026.
• Underlying oil sales volumes increased to 17,000 barrels from 10,000 barrels, with the average oil price rising to $58.93 from $56.83.
• Underlying gas sales volumes increased to 121,000 Mcf from 39,000 Mcf, with the average gas price rising to $4.83 from $4.30.
• Excess costs increased by $69,000 on Texas Working Interest properties and $116,000 on Oklahoma Working Interest properties.
• Cumulative excess costs remaining on Texas Working Interest net profits interests total $5,863,000, including $1,594,000 in accrued interest.
• Cumulative excess costs remaining on Oklahoma Working Interest net profits interests total $1,019,000, including $14,000 in accrued interest.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral to slightly positive filing, with positive movement in sales volumes and prices offset by increasing operational costs.

Positives

• Increased underlying oil sales volumes to 17,000 barrels from 10,000 barrels.
• Increased underlying gas sales volumes to 121,000 Mcf from 39,000 Mcf.
• Higher average oil price of $58.93 per barrel compared to $56.83 in the prior month.
• Higher average gas price of $4.83 per Mcf compared to $4.30 in the prior month.

Negatives

• Excess costs increased by $69,000 on Texas Working Interest properties.
• Excess costs increased by $116,000 on Oklahoma Working Interest properties.
• Significant cumulative excess costs remain: $5,863,000 for Texas and $1,019,000 for Oklahoma.

Risks

• The increase in excess costs on properties underlying net profits interests could impact future distributions.
• The substantial cumulative excess costs remaining on Texas and Oklahoma Working Interest net profits interests represent a potential drag on future net proceeds.

Future Outlook

The filing does not contain specific forward-looking statements or guidance beyond the declaration of the current month's distribution and the reporting of excess costs.

Management Comments

• Argent Trust Company, as Trustee of the Cross Timbers Royalty Trust, declared a cash distribution to the holders of its units of beneficial interest of $0.069720 per unit.
• Sales volumes may fluctuate from month to month based on the timing of cash receipts.
• XTO Energy has advised the Trustee that excess costs increased on properties underlying the Texas and Oklahoma Working Interest net profits interests.

Industry Context

StockSavvy.ai notes that the increase in oil and gas sales volumes and prices is a positive indicator for royalty trusts, but the rising excess costs on underlying properties warrant close monitoring as they can erode future distributions.

Stakeholder Impact

• Shareholders will receive a cash distribution of $0.069720 per unit.
• The increasing excess costs could negatively impact future distributions for unitholders if not managed effectively.

Next Steps

• Distribution of $0.069720 per unit to unitholders of record on April 30, 2026, payable on May 14, 2026.

Key Dates

Recommendation

The filing shows positive trends in sales volumes and prices, supporting the current distribution. However, the increasing excess costs and significant cumulative excess costs present a risk that warrants a 'hold' recommendation pending further clarity on cost management and future performance.

Keywords

Cross Timbers Royalty Trust, CRT, Cash Distribution, Oil and Gas, Royalty Trust, Net Profits Interests, Excess Costs, SEC Filing