8-K: Cross Timbers Royalty Trust Declares November Distribution

Cross Timbers Royalty Trust declared a cash distribution of $0.036930 per unit for November, payable December 12, 2025.

Summary

• A cash distribution of $0.036930 per unit has been declared for unitholders of Cross Timbers Royalty Trust.
• The distribution is payable on December 12, 2025, to unitholders of record on November 28, 2025.
• Underlying oil sales volumes for the current distribution period were 14,000 Bbls at an average price of $60.37 per Bbl.
• Underlying gas sales volumes for the current distribution period were 50,000 Mcf at an average price of $4.55 per Mcf.
• Compared to the prior month, oil sales volumes increased from 12,000 Bbls, but gas sales volumes decreased from 80,000 Mcf.
• Average oil prices decreased from $67.13 per Bbl and average gas prices decreased from $4.79 per Mcf compared to the prior month.
• Excess costs on properties underlying the Texas Working Interest net profits interests increased by $56,000, with cumulative excess costs now totaling $5,320,000, including $1,437,000 in accrued interest.
• Excess costs of $6,000, including accrued interest, were fully recovered on properties underlying the Oklahoma Working Interest net profits interests.

Sentiment

Score: 4

Explanation: The declaration of a cash distribution is positive, and oil sales volumes increased with full recovery of Oklahoma excess costs. However, average oil and gas prices decreased, gas sales volumes significantly declined, and excess costs increased for the Texas Working Interest, indicating some underlying headwinds.

Positives

• A cash distribution of $0.036930 per unit has been declared for unitholders.
• Underlying oil sales volumes increased to 14,000 Bbls for the current distribution period, up from 12,000 Bbls in the prior month.
• Excess costs of $6,000, including accrued interest, were fully recovered on properties underlying the Oklahoma Working Interest net profits interests.

Negatives

• Average oil price decreased to $60.37 per Bbl for the current distribution period, down from $67.13 per Bbl in the prior month.
• Average gas price decreased to $4.55 per Mcf for the current distribution period, down from $4.79 per Mcf in the prior month.
• Underlying gas sales volumes decreased to 50,000 Mcf for the current distribution period, down from 80,000 Mcf in the prior month.
• Excess costs increased by $56,000 on properties underlying the Texas Working Interest net profits interests.
• Cumulative excess costs remaining on the Texas Working Interest net profits interests total $5,320,000, including $1,437,000 in accrued interest.

Risks

• Sales volumes may fluctuate from month to month based on the timing of cash receipts.
• Ongoing cumulative excess costs on the Texas Working Interest net profits interests could impact future distributions.

Future Outlook

No specific future outlook or guidance is provided beyond the declared distribution and its associated dates.

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 $0.036930 per unit.
• XTO Energy has advised the Trustee that excess costs increased by $56,000 on properties underlying the Texas Working Interest net profits interests.
• XTO Energy has advised the Trustee that excess costs of $6,000, including accrued interest of $34, were fully recovered on properties underlying the Oklahoma Working Interest net profits interests.

Industry Context

The filing focuses on the Trust's specific distribution and underlying operational metrics, without providing broader industry context or trends.

Comparison to Industry Standards

• The filing does not provide a comparison of its results to global benchmarks or specific comparable companies/projects.

Related Party Transactions

• XTO Energy (an Exxon Mobil Corporation entity) provides advice to the Trustee regarding excess costs on underlying properties, which is an ongoing operational relationship for the Trust.

Stakeholder Impact

• Shareholders/Unitholders will receive a cash distribution of $0.036930 per unit.

Next Steps

• The cash distribution of $0.036930 per unit will be paid on December 12, 2025.

Key Dates

Recommendation

The filing announces a routine monthly cash distribution. While oil sales volumes increased, average oil and gas prices, along with gas sales volumes, decreased compared to the prior month. Additionally, excess costs increased for the Texas Working Interest, partially offset by full recovery of costs for the Oklahoma Working Interest. These mixed underlying operational metrics suggest a 'hold' position as the trust continues its regular distributions, but with some headwinds on commodity prices and specific asset costs.

Keywords

Royalty Trust, Cash Distribution, Oil and Gas, CRT, Net Profits Interests, Excess Costs