Cross Timbers Royalty Trust
Key statistics
from XBRL data in SEC filingsAI briefing
from the latest 10-K, 10-Q and 8-K eventsCross Timbers Royalty Trust is a royalty trust that distributes net profits income from oil and gas properties in Texas, Oklahoma, and New Mexico.
What they do
The Trust holds net profits interests in oil and gas properties, which entitle it to receive 75% or 90% of net proceeds from the sale of production. XTO Energy operates the underlying properties and calculates net profits income. The Trust distributes this income monthly to unitholders.
Revenue drivers
- Oil sales — Oil sales are the largest revenue source. For the year ended December 31, 2025, oil sales were $9,750,308, with average price of $65.85 per Bbl.
- Gas sales — Gas sales for the year ended December 31, 2025 were $4,838,877, with average price of $4.40 per Mcf.
- Net profits interests — Revenue is derived from 75% or 90% net profits interests. For the year ended December 31, 2025, net profits income was $5,738,240.
Recent performance
For the year ended December 31, 2025, total revenues were $14,589,185, down from $17,319,388 in 2024, due to lower oil prices and volumes. Net profits income decreased to $5,738,240 from $6,563,177. In the quarter ended December 31, 2025, net profits income was $1,629,528, up from $1,462,841 in the prior-year period. The July 2026 distribution declared was $0.061397 per unit.
Strategy
The Trust is a passive entity with no stated growth strategy. Its primary objective is to collect and distribute net profits income to unitholders. The Trustee monitors XTO Energy's calculations and reports on distributions. There are no capital investment or acquisition plans.
Risks
- Commodity price volatility — Oil and gas prices are volatile and directly impact net profits income and distributions.
- Declining production — Underlying properties are mature and production declines over time, reducing cash flows.
- Excess costs — Excess costs on certain properties can reduce or eliminate net proceeds; cumulative excess costs on Texas Working Interest net profits interests totaled $5,987,000 as of July 2026.
- Concentration on XTO Energy — The Trust relies solely on XTO Energy for operations and net profits calculations; any operational or financial issues at XTO could affect distributions.
Outlook
Management does not provide formal guidance. Distributions depend on future oil and gas prices and production volumes. The Trust continues to monitor excess cost recoveries on Oklahoma properties and cumulative excess costs on Texas properties. No material changes to the Trust structure are anticipated.