CRT

Cross Timbers Royalty Trust is a royalty trust created in 1991 that owns net profits interests in oil and gas properties in Texas, Oklahoma, and New Mexico. The trust receives revenues from oil, natural gas, and natural gas liquids production from its underlying royalty properties operated by third parties. Cross Timbers distributes substantially all cash received from royalties to unitholders on a monthly basis. The trust does not actively manage properties, conduct operations, or invest in new drilling, instead passively receiving royalties based on production and commodity prices. Headquartered in Dallas, Texas, Cross Timbers provides investors with direct exposure to oil and gas production revenues and commodity prices without the operational risks and capital requirements of E&P companies. The trust experiences high volatility in distributions reflecting commodity price fluctuations and production volumes from aging properties. Cross Timbers faces declining production from mature properties, no new drilling investment, commodity price volatility, and operating cost inflation affecting net revenues. The trust has no employees or active management making operational decisions. Distributions fluctuate significantly based on energy prices and production. The trust continues to distribute cash flows from existing royalty interests.