Form 10-Q For the transition period from to . (State or other jurisdiction of incorporation or organization) (Commission File Number) (I.R.S. Employer Identification No.) Texas 1-10982 75-6415930 Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☐ ...

Table of Contents [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Cross Timbers Royalty Trust (Exact name of registrant as specified in its charter) Securities registered pursuant to Section 12(b) of the Act: Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that ...

3. Contingencies Litigation A federal district court approved the settlement of a royalty class action lawsuit against XTO Energy Inc. (Chieftain Royalty Company v. XTO Energy Inc.) in March 2018. In July 2018, the class plaintiffs submitted their plan to allocate the settlement funds among members of the class. After that plan of allocation was approved, XTO Energy advised the Trustee that, based upon that plan, approximately $40,000 should be allocated to the Trust as additional production costs. The Trus ...

Table of Contents Form 10-K | --- | --- | --- | |------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------|-----------------------------------------------------| | Commission \n(Exact name of registrant as | File No. 1-10982 \nCross Timbers Royalty specified in its charter) | Trust | | Texas (State or other jurisdiction of incorporation or organization) | | 75-6415930 (I.R.S. Employer Identifica ...

Financial Performance - As of September 30, 2022, the Trust's total assets amounted to $5,228,221, an increase from $5,089,130 at December 31, 2021, representing a growth of approximately 2.74%[11] - The distributable income for the three months ended September 30, 2022, was $3,736,260, compared to $2,301,702 for the same period in 2021, reflecting a year-over-year increase of approximately 62.4%[13] - The net profits income for the nine months ended September 30, 2022, was $9,536,782, up from $5,602,598 in the same period of 2021, indicating a growth of approximately 70.5%[13] - The total income for the three months ended September 30, 2022, was $3,822,288, compared to $2,455,524 for the same period in 2021, indicating an increase of approximately 55.6%[13] - For the quarter ended September 30, 2022, net profits income was $3,817,493, a 55% increase from $2,455,493 in Q3 2021, primarily due to increased oil and gas prices[48] - For the nine months ended September 30, 2022, net profits income was $9,536,782, a 70% increase from $5,602,598 in the same period of 2021, driven by increased oil and gas production and prices[51] - Distributable income for the nine months ended September 30, 2022, was $8,980,188, or $1.496698 per unit, an increase from $5,010,510, or $0.835085 per unit in the same period of 2021[52] Assets and Investments - The Trust's cash and short-term investments increased to $2,200,234 as of September 30, 2022, compared to $1,822,750 at the end of 2021, marking an increase of about 20.7%[11] - The distribution payable to unitholders as of September 30, 2022, was $1,202,406, significantly higher than $822,774 at December 31, 2021, which is an increase of approximately 46%[11] - The Trust's corpus at the end of the period was $3,025,815, down from $3,266,356 at the end of 2021, reflecting a decrease of about 7.35%[11] - The Trust's net profits interests in oil and gas properties decreased to $3,025,815 as of September 30, 2022, from $3,266,356 at December 31, 2021, a decline of about 7.35%[11] Revenue and Sales - Oil sales volumes decreased by 12% in Q3 2022 but increased by 53% for the nine-month period compared to the same period in 2021[61] - Average oil price for Q3 2022 increased by 63% to $101.80 per Bbl, while the nine-month average rose by 36% to $75.11 per Bbl[64] - Total revenues for Q3 2022 were $7,071,571, a 52% increase from $4,653,596 in Q3 2021, and for the nine-month period, revenues reached $23,166,957, up 96% from $11,805,843[56] - Gas sales volumes increased by 1% in Q3 2022 and by 12% for the nine-month period compared to the same period in 2021[62] Expenses and Costs - Production expenses increased by 36% for Q3 2022 and 23% for the nine-month period, primarily due to higher gas processing and maintenance costs[67] - Taxes, transportation, and other costs rose by 33% in Q3 2022 and 39% for the nine-month period, mainly due to production taxes on higher revenues[66] - Administration expenses for the quarter decreased by $67,794 from the prior year quarter, primarily due to timing of expenses[49] - Development costs related to properties underlying the 75% net profits interests increased by $1.3 million for the nine-month period, driven by increased drilling activity in the Hewitt Unit[68] Trust Operations and Taxation - The Trust has not been taxed at the trust level in New Mexico or Oklahoma due to its distribution of all net income to unitholders[29] - The Trust expects to continue being exempt from Texas franchise tax as a passive entity[31] - The Trust may be required to bear a portion of the settlement costs arising from the Chieftain royalty class action settlement, which could affect net profits income[32] - The Trust's expense reserve remains unchanged at $1,000,000, which allows the Trustee to meet obligations if unable to pay them from net profits income[11] - Cumulative excess costs remaining as of September 30, 2022, totaled $2.0 million, including accrued interest of $0.6 million[43] Production and Decline Rates - The estimated rate of natural production decline on the underlying oil and gas properties is approximately 6% to 8% per year[63]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . (I.R.S. Employer Identification No.) | --- | --- | --- | |----------------------------------------------------------------------------|-------- ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 1-10982 | --- | --- | |-----------------------------------------------------------------------------------|------------------------------------------| | | ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |---------------------------------------------------------------|-----------------------| | | | | For the transition period from | . | | Commission File No. 1-10982 | | | Cr ...

Financial Performance - For the quarter ended September 30, 2021, net profits income was $2,455,493, a 196% increase from $829,258 in Q3 2020, driven by higher oil and gas prices and increased oil production[41]. - Distributable income for the same quarter was $2,301,702, or $0.383617 per unit, compared to $613,992, or $0.102332 per unit in Q3 2020[42]. - For the nine months ended September 30, 2021, net profits income rose to $5,602,598, a 36% increase from $4,107,869 in the same period of 2020[44]. - Total revenues for Q3 2021 were $4,653,596, a 129% increase from $2,029,110 in Q3 2020[49]. Price and Sales Volume - Average oil price for Q3 2021 increased 112% to $62.29 per Bbl, while the average gas price rose 132% to $5.49 per Mcf[54][55]. - Oil sales volumes increased 9% in Q3 2021, while gas sales volumes decreased 2% for the same period[51][52]. Expenses and Costs - Production expenses increased 15% for Q3 2021, primarily due to higher repairs and maintenance costs[57]. - Development costs surged 966% for Q3 2021, attributed to timing of charges, but decreased 59% for the nine-month period due to reduced activity[59]. - Taxes, transportation, and other costs rose 62% in Q3 2021, mainly due to increased severance taxes and property taxes[56]. Other Information - Cumulative excess costs for the Texas working interest conveyance totaled $2.7 million as of September 30, 2021[60]. - No material changes in risk factors since the last annual report[67]. - The report was signed on behalf of Cross Timbers Royalty Trust by Simmons Bank, Trustee[71]. - The annual report was filed with the SEC on April 13, 2021[69].

Table of Contents Emerging growth company ☐ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 1-10982 Cross Timbers Royalty Trust (Exact name of registrant as specified in its charter) Texas 75-6415930 (State or other jurisdict ...