8-K: CRT Declares March Cash Distribution, Details Costs

Cross Timbers Royalty Trust announced a cash distribution of $0.000923 per unit for March, alongside updates on underlying oil and gas sales and excess costs.

Summary

• Cross Timbers Royalty Trust declared a cash distribution of $0.000923 per unit for March.
• The distribution is payable on April 14, 2026, to unitholders of record on March 31, 2026.
• Underlying oil sales volumes for the current month distribution were 10,000 Bbls at an average price of $56.83 per Bbl.
• Underlying gas sales volumes for the current month distribution were 39,000 Mcf at an average price of $4.30 per Mcf.
• Compared to the prior month, oil sales volumes increased from 9,000 Bbls to 10,000 Bbls, and the average oil price increased from $55.35 to $56.83 per Bbl.
• Compared to the prior month, gas sales volumes decreased significantly from 73,000 Mcf to 39,000 Mcf, and the average gas price slightly decreased from $4.36 to $4.30 per Mcf.
• Excess costs on Texas Working Interest net profits interests increased by $95,000, bringing the cumulative remaining excess costs to $5,762,000, including $1,561,000 in accrued interest.
• Excess costs of $39,000 were recovered on Oklahoma Working Interest net profits interests, but no remaining proceeds from these properties were included in this month's distribution.
• Underlying cumulative excess costs remaining on the Oklahoma Working Interest net profits interests total $897,000, including $9,000 in accrued interest.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this filing with a low sentiment score due to the extremely low distribution, significant decline in gas production, and increasing excess costs in key operational areas, despite some positive movement in oil metrics.

Positives

• Underlying oil sales volumes increased from 9,000 Bbls to 10,000 Bbls compared to the prior month.
• The average price for oil increased from $55.35 per Bbl to $56.83 per Bbl.
• Excess costs of $39,000 were recovered on properties underlying the Oklahoma Working Interest net profits interests.

Negatives

• The declared cash distribution of $0.000923 per unit is very low.
• Underlying gas sales volumes decreased significantly from 73,000 Mcf in the prior month to 39,000 Mcf for the current month distribution.
• The average price for gas slightly decreased from $4.36 per Mcf to $4.30 per Mcf.
• Excess costs on Texas Working Interest net profits interests increased by $95,000.
• Despite partial recovery of excess costs on Oklahoma Working Interest properties, there were no remaining proceeds from these properties to be included in this month's distribution.

Future Outlook

No explicit forward-looking statements or guidance beyond the current distribution declaration are provided in the filing.

Industry Context

StockSavvy.ai notes that royalty trusts like Cross Timbers are highly sensitive to fluctuations in commodity prices and underlying production volumes. While oil prices and volumes showed a modest increase, the significant decline in gas sales volumes and the ongoing challenge of excess costs, particularly the increase in Texas, present headwinds. The very low distribution reflects these operational pressures, indicating a challenging environment for the trust's underlying assets.

Stakeholder Impact

• Shareholders (unitholders) will receive a very low cash distribution, impacting their immediate returns.
• The ongoing excess costs and fluctuating production volumes could impact the long-term value and sustainability of distributions for unitholders.

Next Steps

• Payment of the declared cash distribution to unitholders on April 14, 2026.

Key Dates

Recommendation

While the distribution is notably low and gas volumes have significantly declined, the trust structure means it passes through net profits. The slight increase in oil volume and price offers a minor offset. A 'hold' recommendation is appropriate for existing investors to monitor future distributions and commodity price trends, given the inherent volatility and the current operational challenges with excess costs. New investors should approach with caution due to the very low current yield and operational headwinds.

Keywords

Cross Timbers Royalty Trust, CRT, cash distribution, oil and gas, royalty trust, net profits interest, excess costs, energy, NYSE