Core Insights - Cross Timbers Royalty Trust (NYSE: CRT) was predicted to potentially double in value within two years due to its low valuation and an anticipated recovery in oil prices [1] Group 1 - The author has a background in chemical engineering and holds a master's degree in Food Technology and Economics, indicating a strong analytical foundation for investment decisions [1] - The author emphasizes the importance of fundamental and technical analysis in investment strategies, particularly utilizing options for both investing and trading [1] - The author achieved financial independence at the age of 45, showcasing a successful application of investment principles [1] Group 2 - The author has published multiple books on investing and mathematics, reflecting a commitment to educating others on financial literacy and investment strategies [1] - The reference to Warren Buffett's principle highlights the author's focus on analyzing financial statements as a key component of investment decision-making [1]

Distribution Announcement - Argent Trust Company declared a cash distribution of $0.032110 per unit for the Cross Timbers Royalty Trust, payable on May 14, 2025, to unitholders of record on April 30, 2025 [1] Underlying Sales Data - Current month sales volumes included 12,000 barrels of oil and 78,000 Mcf of gas, with average prices of $69.99 per barrel and $5.86 per Mcf - Prior month sales volumes were 19,000 barrels of oil and 97,000 Mcf of gas, with average prices of $73.40 per barrel and $5.05 per Mcf [2] Excess Costs - XTO Energy reported an increase in excess costs by $136,000 related to properties underlying the Texas Working Interest net profits interests, with cumulative excess costs totaling $4,567,000, including accrued interest of $1,223,000 [3] Cash Reserves - The Trustee withheld $50,000 from this month's distribution to bolster the cash reserve account, with plans to continue this withholding until the reserve reaches $1,500,000 [4]

Group 1 - CT REIT is a Canadian-based REIT primarily renting to Canadian Tire stores, which recently celebrated its 100th anniversary [1] - The REIT is currently attractive due to its reasonable valuation and dividend payments [1] Group 2 - The article expresses a beneficial long position in the shares of CRT.UN:CA [2]

Financial Performance - Net profits income for 2024 was $6,563,177, a 47% decrease from $12,300,176 in 2023, primarily due to decreased oil and gas production and lower prices[132]. - Total income for 2024 was $6,623,430, down from $12,364,073 in 2023, reflecting a decline of 46.6%[182]. - Distributable income for 2024 was $5,677,818, compared to $11,547,888 in 2023, representing a decrease of 50.8%[182]. - Distributable income per unit for 2024 was $0.946303, down from $1.924648 in 2023, a decline of 50.8%[182]. - Fourth quarter 2024 net profits income totaled $1,462,841, a 43% decrease from $2,548,233 in the fourth quarter of 2023[143]. - Distributable income for the fourth quarter of 2024 was $1,317,594, or $0.219599 per unit, compared to $2,416,884, or $0.402814 per unit in the fourth quarter of 2023[144]. Production and Reserves - Approximately 46% of the net profits income received by the Trust during 2024 was attributable to natural gas, with 40% of the Trust's estimated future net cash flows from proved reserves at December 31, 2024[30]. - Estimated proved reserves for the net profits interests are based on estimates of reserves for the underlying properties and can be significantly affected by fluctuations in oil and gas prices[41]. - The Trust's total proved reserves as of December 31, 2024, consist of 1,301,000 Bbls of oil and 8,334,000 Mcf of gas[87]. - The Trust's net profits are derived from the sale of hydrocarbons from depleting assets, and if no successful development projects are performed, the assets may deplete faster than expected[46]. - The underlying properties include over 2,900 producing properties with an average reserve-to-production index of approximately 11 years as of December 31, 2024[72]. Costs and Expenses - Total costs deducted in the calculation of net profits income were $9.8 million in 2024, a 14% decrease from $11.5 million in 2023[141]. - Average production cost per BOE for oil is $2.33 in 2024, an increase of 39.5% from $1.67 in 2023 and an increase of 25.3% from $1.86 in 2022[92]. - Average production cost per BOE for gas is $54.04 in 2024, an increase of 1.8% from $53.09 in 2023 and an increase of 95.0% from $27.71 in 2022[92]. - Total underlying development costs for 2024 were $1,509,510, representing a 42% increase from 2023 development costs of $1,061,887[84]. Market and Pricing - The Trust's monthly cash distributions are highly dependent on the prices realized from the sale of natural gas and oil, which can fluctuate widely due to various uncontrollable factors[36]. - Average sales price for oil in 2024 is $78.78 per Bbl, a slight decrease of 0.9% from $79.50 in 2023 and a decrease of 3.4% from $81.62 in 2022[92]. - Average sales price for gas in 2024 is $3.92 per Mcf, a significant decrease of 34.1% from $5.94 in 2023 and a decrease of 50.7% from $7.95 in 2022[92]. Risks and Liabilities - The Trust's financial performance is subject to various risk factors, including geopolitical instability and market volatility, which could materially affect its distributable income[32]. - The Trust's distributions may be adversely affected by operational risks and hazards associated with the production and transportation of oil and natural gas[42]. - Government actions or regulations aimed at reducing oil and natural gas production could impact the price of these commodities and, consequently, the Trust's net profits[38]. - Cybersecurity threats pose risks that could materially affect the Trust's business, financial condition, and results of operations[68]. - The Trust unitholders may be exposed to personal liability due to the structure of the Trust not providing the same limited liability protections as a corporation[55]. Trust Structure and Governance - Trust unitholders have limited voting rights and cannot influence the operations or future development of the underlying properties[52]. - The Trust's financial statements are prepared on a modified cash basis of accounting, differing from U.S. GAAP[54]. - The Trust expects to continue being exempt from Texas franchise tax as a passive entity[200]. - The Trust's only cash requirement is the declared monthly distribution of income to unitholders, funded by net profits income after administration expenses[149]. Future Outlook - Future net cash flows from proved reserves are approximately 38% natural gas and 62% oil, with total future net cash flows estimated at $52.652 million, discounted at an annual rate of 10%[87]. - Future net profits may be impacted by the creditworthiness of operators and purchasers of crude oil and natural gas, influenced by market prices[44]. - The Trust will terminate if it fails to generate gross revenues of at least $1,000,000 per year over any successive two-year period[49].

Cash Distribution - The Registrant announced a monthly cash distribution to unitholders of record on January 31, 2025[5] - The news release regarding the cash distribution was issued on January 21, 2025[5] - The cash distribution details are included in Exhibit 99.1 of the report[7]

Distribution Announcement - Argent Trust Company declared a cash distribution of $0.095045 per unit for the Cross Timbers Royalty Trust, payable on February 14, 2025, to unitholders of record on January 31, 2025 [1] Underlying Sales Data - Current month sales volumes included 13,000 barrels of oil and 114,000 Mcf of gas, with average prices of $68.38 per barrel for oil and $3.78 per Mcf for gas [2] - Prior month sales volumes were the same for oil at 13,000 barrels but lower for gas at 68,000 Mcf, with average prices of $69.15 per barrel for oil and $3.26 per Mcf for gas [2] Excess Costs Information - XTO Energy reported recovery of $24,000 in excess costs related to properties underlying the Texas Working Interest net profits interests, but no remaining proceeds were available for this month's distribution [3] - Cumulative excess costs on the Texas Working Interest net profits interests total $4,260,000, which includes accrued interest of $1,143,000 [3]

Core Insights - CT REIT has become the largest REIT position in the investment portfolio, indicating strong confidence in its performance and potential growth [3] Company Overview - CT REIT is highlighted as a significant player in the REIT sector, with a focus on high-quality investment opportunities [3] - The company is part of a broader investment strategy that includes European small-cap ideas, emphasizing capital gains and dividend income [3] Investment Strategy - The investment group offers exclusive access to actionable research on appealing Europe-focused investment opportunities, particularly in the small-cap space [3] - Features of the investment group include two model portfolios, weekly updates, and educational content aimed at enhancing understanding of European investment opportunities [3]

Cash Distribution - The Registrant announced a monthly cash distribution to unitholders of record on October 31, 2024[2] - The news release regarding the cash distribution was issued on October 21, 2024[2] - The cash distribution details are included in Exhibit 99.1 of the report[2] Report Filing - The report is filed under Item 2.02 of Form 8-K, indicating results of operations and financial condition[2] - The report is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934[2] - The report was submitted to the SEC on October 21, 2024[1] Signatories - The report was signed by Nancy Willis, Director of Royalty Trust Services[2] - The report was also signed by Kristy Walker, Unconventional Finance General Manager of Exxon Mobil Corporation[2] Company Information - The Registrant is Cross Timbers Royalty Trust, with Argent Trust Company as the trustee[1] - The Registrant's principal executive offices are located in Dallas, Texas[1]

Financial Performance - For the quarter ended September 30, 2024, net profits income decreased by 37% to $1,697,724 compared to $2,676,180 in Q3 2023[44]. - Distributable income for the quarter was $1,521,252, or $0.253542 per unit, down from $2,451,192, or $0.408532 per unit in Q3 2023[45]. - Total revenues for Q3 2024 were $4,588,397, a 15% decrease from $5,372,316 in Q3 2023[51]. - For the nine months ended September 30, 2024, net profits income was $5,100,336, a 48% decrease from $9,751,943 in the same period of 2023[47]. - Distributable income for the nine months was $4,360,224, or $0.726704 per unit, down from $9,131,004, or $1.521834 per unit in the prior year[47]. Sales and Pricing - Oil sales volumes decreased by 23% in Q3 2024, while gas sales volumes increased by 17% for the same period[55][56]. - Average oil price increased by 4% to $77.54 per Bbl in Q3 2024, while average gas price decreased by 14% to $3.65 per Mcf[57][58]. Expenses and Costs - Production expenses increased by 34% in Q3 2024, primarily due to higher processing costs and increased labor[60]. - Development costs increased by 103% for the nine-month period due to timing of drilling activity costs[61]. - Underlying cumulative excess costs for the Texas working interest conveyance totaled $3.8 million as of September 30, 2024[62]. Governance and Compliance - The Trust's disclosure controls and procedures are effective in ensuring timely reporting of required information under the Securities Exchange Act of 1934[66]. - There have been no material changes in the risk factors disclosed in the Trust's Annual Report for the year ended December 31, 2023[67]. - The Trust does not have any directors or officers, which affects the adoption or termination of trading arrangements[68].

Cash Distribution - The Registrant announced a monthly cash distribution to unitholders of record on September 30, 2024[2] - The news release regarding the cash distribution was issued on September 20, 2024[2] Financial Reporting - The report is filed under Item 2.02 of Form 8-K, indicating results of operations and financial condition[2] - The report is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934[2] Signatories - The report was signed by Nancy Willis, Director of Royalty Trust Services, on behalf of Cross Timbers Royalty Trust[3] - The report was also signed by Kristy Walker, Unconventional Finance General Manager of Exxon Mobil Corporation[3]