Cross Timbers Royalty Trust Files 10-Q for Period Ended March 31, 2024

TL;DR

<b>Cross Timbers Royalty Trust has filed its Q1 2024 10-Q report, confirming its operational status and financial reporting.</b>

AI Summary

CROSS TIMBERS ROYALTY TRUST (CRT) filed a Quarterly Report (10-Q) with the SEC on May 14, 2024. Cross Timbers Royalty Trust filed its quarterly report (10-Q) for the period ending March 31, 2024. The trust is incorporated in Texas and its fiscal year ends on December 31. Units of Beneficial Interest are traded under the symbol CRT on the New York Stock Exchange. The filing indicates the registrant is a non-accelerated filer and a smaller reporting company. The registrant is not a shell company.

Why It Matters

For investors and stakeholders tracking CROSS TIMBERS ROYALTY TRUST, this filing contains several important signals. This 10-Q filing provides investors with the latest financial and operational details for Cross Timbers Royalty Trust, crucial for understanding its performance in the oil and gas royalty sector. As a smaller reporting company and non-accelerated filer, this report offers insights into the trust's financial health and compliance with SEC regulations for the first quarter of 2024.

Risk Assessment

Risk Level: low — CROSS TIMBERS ROYALTY TRUST shows low risk based on this filing. The risk is low as this is a standard quarterly filing (10-Q) providing routine financial information and not indicating any immediate material changes or issues.

Analyst Insight

Monitor future filings for detailed financial performance, revenue streams, and any changes in operational status or market conditions affecting royalty income.

Key Numbers

• 20240331 — Quarterly Period End Date (Conformed Period of Report)
• 20240514 — Filing Date (Filed as of Date)
• 1231 — Fiscal Year End (Fiscal Year End)
• 001-10982 — SEC File Number (SEC File Number)
• 75-6415930 — IRS Number (IRS Number)
• 3838 OAK LAWN AVE., SUITE 1720 — Business Address Street 1 (Business Address)
• DALLAS — Business Address City (Business Address)
• 75219-4518 — Business Address Zip (Business Address)

Key Players & Entities

• CROSS TIMBERS ROYALTY TRUST (company) — Registrant name
• 0000950170-24-059607 (other) — Accession Number
• 20240331 (date) — Conformed Period of Report
• 20240514 (date) — Filed as of Date
• 0000881787 (other) — Central Index Key
• 6792 (other) — Standard Industrial Classification
• TX (location) — State of Incorporation
• CRT (ticker) — Trading Symbol

FAQ

Risk Factors

• Reporting Requirements [low — regulatory]: The registrant must file all reports required by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months.
• Interactive Data File Submission [low — regulatory]: The registrant must submit electronically every Interactive Data File required by Rule 405 of Regulation S-T during the preceding 12 months.

Key Financial Figures

• $1,000,000 — ome. The reserve is currently funded at $1,000,000. The accompanying notes to condensed
• $61,100,449 — g value of the net profits interests of $61,100,449 represents XTO Energy&#x2019;s historic
• $58,479,932 — st corpus. Accumulated amortization was $58,479,932 as of March 31, 2024, and $58,428,866 a
• $58,428,866 — s $58,479,932 as of March 31, 2024, and $58,428,866 as of December 31, 2023. Amortization o
• $40,000 — at, based upon that plan, approximately $40,000 should be allocated to the Trust as add
• $216,456 — ended March 31, 2024, excess costs were $216,456 ($162,341 net to the Trust) on properti
• $162,341 — h 31, 2024, excess costs were $216,456 ($162,341 net to the Trust) on properties underly
• $724,327 — ended March 31, 2024, excess costs were $724,327 ($543,245 net to the Trust) on properti
• $543,245 — h 31, 2024, excess costs were $724,327 ($543,245 net to the Trust) on properties underly
• $4.1 million — remaining as of March 31, 2024, totaled $4.1 million ($3.1 million net to the Trust), includ
• $3.1 million — f March 31, 2024, totaled $4.1 million ($3.1 million net to the Trust), including accrued in
• $0.9 million — e Trust), including accrued interest of $0.9 million ($0.7 million net to the Trust). 5. R
• $0.7 million — uding accrued interest of $0.9 million ($0.7 million net to the Trust). 5. Related Party T
• $48,224 — erhead charge as of March 31, 2024, was $48,224 ($36,168 net to the Trust) and is subje
• $36,168 — arge as of March 31, 2024, was $48,224 ($36,168 net to the Trust) and is subject to ann

Filing Documents

• crt_10-q_2403.htm (10-Q) — 404KB
• crt-ex31.htm (EX-31) — 14KB
• crt-ex32.htm (EX-32) — 11KB
• 0000950170-24-059607.txt (&nbsp;) — 430KB

&#x2011; FINANCIAL INFORMATION

PART I &#x2011; FINANCIAL INFORMATION 4 Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 4 Condensed Statements of Assets, Liabilities and Trust Corpus at March 31, 2024 and December 31, 2023 5 Condensed Statements of Distributable Income for the Three Months Ended March 31, 2024 and 2023 6 Condensed Statements of Changes in Trust Corpus for the Three Months Ended March 31, 2024 and 2023 7 Notes to Condensed Financial Statements 8 Item 2. Trustee&#x2019;s Discussion and Analysis 12 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 15 Item 4.

Controls and Procedures

Controls and Procedures 15

- OTHER INFORMATION

PART II - OTHER INFORMATION 16 Item 1A.

Risk Factors

Risk Factors 16 Item 5. Other Information 16 Item 6. Exhibits 16

Signatures

Signatures 17 Table of Contents CROSS TIMBERS ROYALTY TRUST GLOSS ARY OF TERMS The following are definitions of significant terms used in this Form 10-Q: Bbl Barrel (of oil) Mcf Thousand cubic feet (of natural gas) MMBtu One million British Thermal Units, a common energy measurement net proceeds Gross proceeds received by XTO Energy from sale of production from the underlying properties, less applicable costs, as defined in the net profits interest conveyances. net profits income Net proceeds multiplied by the applicable net profits percentage of 75% or 90%, which is paid to the Trust by XTO Energy. &#x201c;Net profits income&#x201d; is referred to as &#x201c;royalty income&#x201d; for income tax purposes. net profits interest An interest in an oil and gas property measured by net profits from the sale of production, rather than a specific portion of production. The following defined net profits interests were conveyed to the Trust from the underlying properties: 90% net profits interests - interests that entitle the Trust to receive 90% of the net proceeds from the underlying properties that are substantially all royalty or overriding royalty interests in Texas, Oklahoma and New Mexico. 75% net profits interests - interests that entitle the Trust to receive 75% of the net proceeds from the underlying properties that are working interests in Texas and Oklahoma. royalty interest (and overriding royalty interest) A non-operating interest in an oil and gas property that provides the owner a specified share of production without any production expense or development costs. underlying properties XTO Energy&#x2019;s interest in certain oil and gas properties from which the net profits interests were conveyed. The underlying properties include royalty and overriding royalty interests in producing and nonproducing properties in Texas, Oklahoma and New Mexico, and working interests in producing properties located in Texas and O

&#x2011; FINAN CIAL INFORMATION

PART I &#x2011; FINAN CIAL INFORMATION

Fin ancial Statements

Item 1. Fin ancial Statements The condensed financial statements included herein are presented, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Unless specified otherwise, all amounts included herein are presented in U.S. dollars. Certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted pursuant to such rules and regulations, although the Trustee believes that the disclosures are adequate to make the information presented not misleading. These condensed financial statements should be read in conjunction with the financial statements and the notes thereto included in the Trust&#x2019;s latest Annual Report on Form 10&#x2011;K. In the opinion of the Trustee, all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the assets, liabilities and trust corpus of the Cross Timbers Royalty Trust at March 31, 2024, and the distributable income and changes in trust corpus for the three-month periods ended March 31, 2024 and 2023, have been included. Distributable income for such interim periods is not necessarily indicative of the distributable income for the full year. 4 Table of Contents CROSS TIMBERS ROYALTY TRUST Condensed Statement s of Assets, Liabilities and Trust Corpus (Unaudited) March 31, 2024 December 31, 2023 ASSETS Cash and short-term investments $ 1,111,159 $ 1,852,320 Interest to be received 5,181 5,062 Net profits interests in oil and gas properties - net (Note 1) 2,620,517 2,671,583 $ 3,736,857 $ 4,528,965 LIABILITIES AND TRUST CORPUS Distribution payable to unitholders $ 116,340 $ 857,382 Expense reserve (a) 1,000,000 1,000,000 Trust corpus (6,000,000 units of beneficial interest authorized and outstanding) 2,620,517 2,671,583 $ 3,736,857 $ 4,528,965 (a) Expense reserve allows the Trustee to pay its obligations should it be

Trustee&#x2019;s D iscussion and Analysis

Item 2. Trustee&#x2019;s D iscussion and Analysis The following discussion should be read in conjunction with the Trustee&#x2019;s discussion and analysis contained in the Trust&#x2019;s 2023 Annual Report on Form 10-K, as well as the condensed financial statements and notes thereto included in this Quarterly Report on Form 10-Q. The Trust&#x2019;s Annual Report on Form 10-K, Quarterly Reports on Form 10&#x2011;Q, Current Reports on Form 8-K and all amendments to those reports are available on the Trust&#x2019;s website at www.crt-crosstimbers.com . Distributable Income For the quarter ended March 31, 2024, net profits income was $1,837,741 compared to $3,912,704 for first quarter 2023. This 53 percent decrease in net profits income is primarily the result of decreased gas production ($2.3 million), lower gas prices ($0.6 million), increased development costs ($0.4 million), lower oil prices ($0.2 million), and decreased oil production ($0.1 million), partially offset by net excess costs activity ($0.8 million), decreased taxes, transportation and other costs ($0.6 million), and decreased production expenses ($0.1 million). See &#x201c;Net Profits Income&#x201d; below. After considering interest income of $16,973 and administration expense of $361,500, distributable income for the quarter ended March 31, 2024,was $1,493,214, or $0.248869 per unit of beneficial interest. Administration expense for the quarter increased $73,656 from the prior year quarter, primarily related to the timing of receipt and payment of Trust expenses and terms of professional services. Changes in interest income are attributable to fluctuations in net profits income, expense reserve, and interest rates. For first quarter 2023, distributable income was $3,639,198, or $0.606533 per unit. Distributions to unitholders for the quarter ended March 31, 2024, were: Record Date Payment Date Distribution per Unit January 31, 2024 February 14, 2024 $ 0.115323 February 29, 202

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