Cross Timbers Stock Price, News & Analysis

Cross Timbers Royalty Trust (CRT) is a United States-based royalty trust whose net profits interests are derived from producing royalty, overriding royalty interests, and working interest properties. According to available information, the underlying properties of the trust include producing properties in Texas, Oklahoma, and New Mexico. Units of beneficial interest in the trust trade on the New York Stock Exchange under the symbol CRT, giving investors a way to obtain exposure to net profits interests in these oil and gas properties.

The trust structure means that Cross Timbers Royalty Trust does not operate oil and gas properties itself. Instead, it holds net profits interests that are tied to underlying properties. The trust receives net profits income from these interests and distributes cash to unitholders of record, as reflected in recurring announcements of monthly cash distributions. Argent Trust Company acts as Trustee of the Cross Timbers Royalty Trust and issues news releases describing each monthly cash distribution to holders of units of beneficial interest.

Business model and net profits interests

The trust’s net profits interests are derived from producing royalty interests, overriding royalty interests, and working interest properties. These interests relate to underlying oil and gas production from properties in Texas, Oklahoma, and New Mexico. The trust’s public disclosures emphasize that sales volumes are recorded in the month the trust receives the related net profits income. Because of this, reported sales volumes may fluctuate from month to month based on the timing of cash receipts rather than on physical production alone.

Monthly press releases describe underlying oil and gas sales volumes, average realized prices for oil (per barrel) and gas (per thousand cubic feet), and the resulting cash distribution per unit. The trust also reports information about excess costs on certain properties. XTO Energy has advised the Trustee on excess costs associated with properties underlying Texas Working Interest net profits interests and Oklahoma Working Interest net profits interests. These excess costs can increase over time, but the disclosures note when they do not reduce net proceeds from the remaining conveyances.

Role of the Trustee and reporting practices

Argent Trust Company serves as Trustee for Cross Timbers Royalty Trust. In that role, it declares monthly cash distributions and issues public news releases that describe the distribution amount, payment date, record date, and summary data on underlying oil and gas sales and average prices. These releases also summarize changes in excess costs on specific groups of properties and explain whether those excess costs affect net proceeds.

The trust files current reports on Form 8-K with the U.S. Securities and Exchange Commission in connection with these monthly distribution announcements. Each Form 8-K states that the registrant issued a news release announcing its monthly cash distribution to unitholders of record as of a specified date, and that a copy of the news release is furnished as an exhibit. The filings indicate that the information is furnished under Item 2.02, Results of Operations and Financial Condition, and is not deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934.

Geographic focus and property groupings

According to the trust’s description, the underlying properties include producing properties in Texas, Oklahoma, and New Mexico. Within these areas, the trust’s net profits interests are grouped into categories such as Texas Working Interest net profits interests, Oklahoma Working Interest net profits interests, and New Mexico Royalty Interest net profits interests. Public disclosures reference specific units, such as the Hewitt Unit in the Oklahoma Working Interest net profits interests, and non-operated properties in the New Mexico Royalty Interest net profits interests.

These groupings matter because excess costs and net proceeds are tracked separately for different sets of properties. For example, disclosures describe underlying cumulative excess costs remaining on the Texas Working Interest net profits interests and on the Oklahoma Working Interest net profits interests, including accrued interest. When excess costs are fully recovered on a group of properties, the trust notes that fact in its distribution announcements.

Cash distributions and reserve practices

Cross Timbers Royalty Trust regularly declares monthly cash distributions per unit of beneficial interest. Each announcement specifies the cash distribution per unit, the payment date, and the record date for unitholders. The trust’s disclosures also explain that sales volumes are recorded in the month the trust receives the related net profits income, which can cause month-to-month fluctuations in reported volumes and distribution amounts.

The trust may withhold a portion of distributable funds to build or maintain a cash reserve. In accordance with Section 3.08 of the Cross Timbers Royalty Trust Indenture, the Trustee has described withholding specific dollar amounts from certain monthly distributions to increase the amount of cash in the reserve account, with an intention to continue withholding until the cash reserve reaches a stated target amount. This reserve practice is disclosed in the monthly distribution news releases.

Sector classification and listing

Cross Timbers Royalty Trust is classified in the Finance and Insurance sector and the Miscellaneous Intermediation industry. Although its underlying assets are oil and gas properties, the trust itself functions as a financial vehicle that passes through net profits income from those properties to unitholders. Units of beneficial interest in the trust are listed on the New York Stock Exchange under the symbol CRT, and the trust files periodic and current reports with the SEC as a registrant.

Considerations for investors researching CRT

Investors researching Cross Timbers Royalty Trust (CRT) can review its monthly press releases and associated Form 8-K filings to understand recent distribution amounts, underlying oil and gas sales volumes, average realized prices, and the status of excess costs on various property groups. The trust’s disclosures highlight how timing of cash receipts affects recorded sales volumes, and how excess costs on certain working interest properties may influence net proceeds and future distributions.

Because Cross Timbers Royalty Trust is a royalty trust rather than an operating company, its disclosures focus on net profits interests, distributions, and the financial relationship between the trust and the underlying properties. The trust also provides information on annual tax reporting and historical press releases through its public communications, giving unitholders and prospective investors additional context on distribution history and the behavior of net profits over time.