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, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | |----------------------------------------------------------------------------|----------------------------------------------------------------------------------------- ...

Table of Contents Title of each classTrading symbolName of each exchange on which registered Units of Beneficial Interest CRT New York Stock Exchange 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 September 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Numb ...

[Glossary of Terms](index=4&type=section&id=Glossary%20of%20Terms) - The report provides definitions for key industry and financial terms, noting the Trust's entitlement to **90%** of net proceeds from royalty interests and **75%** from working interests[7](index=7&type=chunk) [PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited condensed financial statements for the quarter ended June 30, 2019, prepared on a modified cash basis, present the Trust's financial position and performance, reviewed by independent auditors [Report of Independent Registered Public Accounting Firm](index=6&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) PricewaterhouseCoopers LLP reviewed the interim financial statements for June 30, 2019, finding no material modifications needed and reaffirming their prior unqualified opinion - The independent auditors, PricewaterhouseCoopers LLP, conducted a review and found **no material modifications** that should be made to the interim financial statements[11](index=11&type=chunk) - The financial statements are prepared on a **modified cash basis**, which is a comprehensive basis of accounting **other than U.S. GAAP**[14](index=14&type=chunk) [Condensed Statements of Assets, Liabilities and Trust Corpus](index=7&type=section&id=Condensed%20Statements%20of%20Assets,%20Liabilities%20and%20Trust%20Corpus) As of June 30, 2019, the Trust's total assets decreased to $9.87 million from $10.13 million, primarily due to amortization of net profits interests, while maintaining a $1 million expense reserve Condensed Statement of Assets, Liabilities and Trust Corpus (in USD) | | June 30, 2019 | December 31, 2018 | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and short-term investments | $1,537,868 | $1,600,694 | | Net profits interests in oil and gas properties—net | $8,324,828 | $8,526,512 | | **Total Assets** | **$9,865,206** | **$10,129,530** | | **LIABILITIES AND TRUST CORPUS** | | | | Distribution payable to unitholders | $540,378 | $603,018 | | Expense reserve | $1,000,000 | $1,000,000 | | Trust corpus | $8,324,828 | $8,526,512 | | **Total Liabilities and Trust Corpus** | **$9,865,206** | **$10,129,530** | [Condensed Statements of Distributable Income](index=8&type=section&id=Condensed%20Statements%20of%20Distributable%20Income) Distributable income significantly decreased to $1.72 million for Q2 2019 and $2.80 million for the six months ended June 30, primarily due to lower net profits income Condensed Statement of Distributable Income (Unaudited, in USD) | | Three Months Ended June 30 | Six Months Ended June 30 | | :--- | :--- | :--- | | | **2019** | **2018** | **2019** | **2018** | | Net profits income | $1,857,396 | $2,333,173 | $3,193,281 | $4,610,672 | | Total income | $1,864,253 | $2,337,888 | $3,206,909 | $4,618,847 | | Administration expense | $144,365 | $168,660 | $403,937 | $419,339 | | **Distributable income** | **$1,719,888** | **$2,169,228** | **$2,802,972** | **$4,199,508** | | **Distributable income per unit** | **$0.286648** | **$0.361538** | **$0.467162** | **$0.699918** | [Condensed Statements of Changes in Trust Corpus](index=9&type=section&id=Condensed%20Statements%20of%20Changes%20in%20Trust%20Corpus) The Trust Corpus decreased from $8.53 million to $8.32 million as of June 30, 2019, primarily due to $201,684 in amortization of net profits interests Condensed Statement of Changes in Trust Corpus (Unaudited, in USD) | | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2019 | | :--- | :--- | :--- | | Trust corpus, beginning of period | $8,437,697 | $8,526,512 | | Amortization of net profits interests | ($112,869) | ($201,684) | | Distributable income | $1,719,888 | $2,802,972 | | Distributions declared | ($1,719,888) | ($2,802,972) | | **Trust corpus, end of period** | **$8,324,828** | **$8,324,828** | [Notes to Condensed Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Financial%20Statements) The notes detail the Trust's modified cash basis accounting, tax status, and significant contingencies, including a challenged $40,000 lawsuit allocation and $2.0 million in cumulative excess costs - The Trust's financial statements are prepared on a **modified cash basis**, recognizing revenues when received and expenses when paid, which is a comprehensive basis of accounting **other than U.S. GAAP**[22](index=22&type=chunk)[23](index=23&type=chunk) - The Trust is a **grantor trust** for federal income tax purposes and is **not subject to tax at the trust level**; unitholders are taxed directly on their share of the Trust's income[28](index=28&type=chunk) - A **potential contingency** exists where XTO Energy may allocate **approximately $40,000** in costs to the Trust from the Chieftain lawsuit settlement, which the Trustee is **challenging this allocation** and has deferred accounting entries pending an arbitration award[36](index=36&type=chunk)[37](index=37&type=chunk) Excess Costs to be Recovered as of June 30, 2019 (Underlying Properties) | Conveyance | Cumulative Excess Costs | Accrued Interest | Total to be Recovered | | :--- | :--- | :--- | :--- | | TX WI | $1,720,153 | $288,533 | $2,008,686 | | OK WI | $0 | $0 | $0 | | **Total** | **$1,720,153** | **$288,533** | **$2,008,686** | [Trustee's Discussion and Analysis](index=14&type=section&id=Item%202.%20Trustee's%20Discussion%20and%20Analysis) This section analyzes the Trust's financial performance for Q2 and the first six months of 2019, detailing a significant decrease in distributable income due to lower net profits income, reduced prices, and higher expenses [Distributable Income Analysis](index=14&type=section&id=Distributable%20Income%20Analysis) Distributable income for Q2 2019 decreased to $1.72 million ($0.286648 per unit) and for the six months to $2.80 million, primarily due to a 20% to 31% decline in net profits income Distributable Income Comparison (in USD) | Period | 2019 | 2018 | % Change | | :--- | :--- | :--- | :--- | | **Q2 Ended June 30** | $1,719,888 | $2,169,228 | (20.7%) | | **Six Months Ended June 30** | $2,802,972 | $4,199,508 | (33.3%) | Distributions per Unit (Q2 2019) | Record Date | Payment Date | Distribution per Unit | | :--- | :--- | :--- | | April 30, 2019 | May 14, 2019 | $0.114560 | | May 31, 2019 | June 14, 2019 | $0.082025 | | June 28, 2019 | July 15, 2019 | $0.090063 | | **Total** | | **$0.286648** | [Net Profits Income Analysis](index=15&type=section&id=Net%20Profits%20Income%20Analysis) Net profits income decreased 20% for Q2 2019 and 31% for the six-month period, driven by lower oil sales volumes, reduced oil prices, and a 59% increase in production expense, with an estimated 6% to 8% annual natural production decline Net Profits Income Calculation Summary (Three Months Ended June 30) | | 2019 | 2018 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $4,308,590 | $4,764,754 | (10%) | | Total Costs | $2,222,899 | $2,088,188 | 6% | | Net Proceeds | $2,085,691 | $2,676,566 | (22%) | | **Net Profits Income** | **$1,857,396** | **$2,333,173** | **(20%)** | - Q2 2019 vs Q2 2018 Variances: - Oil sales volumes (underlying properties) **decreased 15%** due to timing of cash receipts and natural decline - Gas sales volumes (underlying properties) **increased 18%** due to timing of cash receipts - Average oil price **decreased 8% to $54.11 per Bbl** - Production expense **increased 59%** due to timing of charges and reclassification of well work activity[57](index=57&type=chunk)[58](index=58&type=chunk)[60](index=60&type=chunk) - The estimated rate of natural production decline on the underlying oil and gas properties is approximately **6% to 8% a year**[59](index=59&type=chunk) [Contingencies and Forward-Looking Statements](index=18&type=section&id=Contingencies%20and%20Forward-Looking%20Statements) The report refers to Note 3 for contingencies, including the Chieftain lawsuit, and provides a standard safe harbor statement regarding forward-looking information subject to risks and uncertainties - For information on contingencies, see Note 3 to Condensed Financial Statements[66](index=66&type=chunk) - The report contains forward-looking statements concerning future plans, production, costs, and market conditions, which are **subject to risks and uncertainties**; the Trustee **assumes no duty to update** these statements[67](index=67&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=18&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section is not applicable as the Trust qualifies as a smaller reporting company, exempting it from market risk disclosures - Disclosure about market risk is **not required** as the Trust qualifies as a **smaller reporting company**[68](index=68&type=chunk) [Controls and Procedures](index=18&type=section&id=Item%204.%20Controls%20and%20Procedures) The Trustee concluded that the Trust's disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation, the Trustee concluded that the Trust's disclosure controls and procedures are **effective** for timely recording, processing, and reporting of required information[69](index=69&type=chunk) - **No changes** in the Trust's internal control over financial reporting occurred during the period that **materially affected**, or are reasonably likely to materially affect, these controls[69](index=69&type=chunk) [PART II. OTHER INFORMATION](index=19&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Risk Factors](index=19&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred in the risk factors previously disclosed in the Trust's Annual Report on Form 10-K for the year ended December 31, 2018 - There have been **no material changes** in the risk factors from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2018[70](index=70&type=chunk) [Exhibits](index=19&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the report, including the Rule 13a-14(a)/15d-14(a) and Section 1350 Certifications - The exhibits filed with this report include: - (31) Rule 13a-14(a)/15d-14(a) Certification - (32) Section 1350 Certification[72](index=72&type=chunk) [Signatures](index=20&type=section&id=Signatures) - The report was **duly signed on August 7, 2019**, on behalf of the Registrant by Simmons Bank, the Trustee, and by Exxon Mobil Corporation[74](index=74&type=chunk)

Table of Contents 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 March 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

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, 2018 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . | --- | --- | --- | |----------------------------------------------------------------------------|----------------------------------------------------- ...