Wed, May 14, 7:05 PM (60 days ago)
**Cross Timbers Royalty Trust (CRT)** reported its Q1 2025 financial performance, highlighting several key metrics and trends. **Revenue and Profit Margins:** - **Net Profits Income:** Increased by 12% to $2,053,394 from $1,837,741 in Q1 2024, driven by decreased development costs, increased production, and lower taxes and transportation costs. - **Distributable Income:** Rose to $1,783,938, or $0.297323 per unit, compared to $1,493,214, or $0.248869 per unit, in Q1 2024. - **Administration Expense:** Decreased by $80,038 due to timing of receipt and payment of Trust expenses. **Cash Flow and Earnings Changes:** - **Interest Income:** Declined to $12,006 from $16,973 in Q1 2024 due to fluctuations in net profits income, expense reserve, and interest rates. - **Distributions to Unitholders:** Totaled $0.297323 per unit for Q1 2025. **Quarterly Performance Discussion:** - **Sales Volumes:** Oil sales increased by 4%, and gas sales increased by 19% due to timing of cash receipts. - **Sales Prices:** Oil prices decreased by 6% to $70.48 per barrel, and gas prices decreased by 10% to $4.11 per Mcf. - **Costs:** Taxes, transportation, and other costs decreased by 21%, production expense decreased by 1%, and development costs decreased by 88% due to the absence of drilling activity. **Trends and Uncertainties:** - **Excess Costs:** Cumulative excess costs for the Texas working interest conveyance totaled $4.4 million, including accrued interest of $1.2 million. - **Forward-Looking Statements:** The Trust highlighted various risks and uncertainties, including economic downturns, government policy, and competition. **Future Operations Impact:** - **Expense Reserve:** The Trustee withheld $50,000 from the April distribution to increase the expense reserve, intending to continue this until the reserve reaches $1,500,000. - **Controls and Procedures:** The Trustee concluded that the Trust’s disclosure controls and procedures are effective. **Financial Health:** - **Assets:** Totaled $4,287,064, with cash and short-term investments at $1,936,621. - **Liabilities and Trust Corpus:** Distribution payable to unitholders was $940,350, and the trust corpus was $2,346,714. **Conclusion:** Cross Timbers Royalty Trust demonstrated improved financial performance in Q1 2025, with increased distributable income and reduced costs. However, the Trust faces uncertainties related to market conditions and regulatory changes. The Trustee's actions to increase the expense reserve reflect a proactive approach to managing potential risks.