Cross Timbers Royalty Trust(CRT) - 2025 Q3 - Quarterly Report

Financial Performance - Distributable income for the three months ended September 30, 2025, was $453,318, down 70.3% from $1,521,252 in the same period of 2024[12] - For the nine months ended September 30, 2025, distributable income totaled $3,129,804, a decrease of 28.3% compared to $4,360,224 for the same period in 2024[12] - The net profits income for the three months ended September 30, 2025, was $761,552, a significant drop of 55.2% from $1,697,724 in the prior year[12] - For the quarter ended September 30, 2025, net profits income decreased by 55% to $761,552 compared to $1,697,724 for the same quarter in 2024, primarily due to decreased oil and gas production and lower oil prices[35] - For the nine months ended September 30, 2025, net profits income was $4,108,712, a 19% decrease from $5,100,336 in the same period of 2024[38] - Total revenues for the quarter were $2,774,186, a 40% decrease from $4,588,397 in the third quarter of 2024[43] Asset and Trust Information - As of September 30, 2025, total assets amounted to $3,723,615, a decrease from $3,806,934 as of December 31, 2024, representing a decline of approximately 2.2%[10] - The trust corpus at the end of the period was $2,233,097, down from $2,477,975 at the end of September 2024, reflecting a decrease of approximately 9.9%[14] - The trust has not recorded any impairment of net profits interests as of September 30, 2025, indicating stable asset valuation[20] - The trust's financial statements are prepared on a modified cash basis, differing from U.S. GAAP, which may affect revenue and expense recognition[16] Production and Sales - Oil sales volumes decreased by 20% in the third quarter and 11% in the nine-month period, primarily due to natural production decline[44] - Gas sales volumes decreased by 47% in the third quarter and 26% in the nine-month period, attributed to timing of cash receipts and natural production decline[45] - The average oil price for the third quarter decreased by 20% to $62.21 per Bbl, while the average gas price remained flat at $3.65 per Mcf[47][48] - The estimated rate of natural production decline on the underlying oil and gas properties is approximately 6 to 8 percent per year[46] Expenses and Costs - Administrative expenses for the quarter decreased by $19,973 from the prior year quarter, primarily due to timing of Trust expenses[36] - Production expenses decreased by 17% in Q3 due to lower gas processing costs and maintenance expenses, while increasing by 1% for the nine-month period primarily due to higher labor and fuel costs[50] - Development costs related to properties with 75% net profits interests decreased by 58% in Q3 and 89% for the nine-month period, mainly due to the absence of drilling activity costs in the second half of 2023[51] - Cumulative excess costs remaining at September 30, 2025, totaled $5.1 million, including accrued interest of $1.4 million[29] - Cumulative excess costs for the Texas working interest conveyance as of September 30, 2025, totaled $5.1 million, including accrued interest of $1.4 million[53] Risk 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[57] - There have been no material changes in the risk factors disclosed in the Trust's Annual Report for the year ended December 31, 2024[59]