Recent news coverage of Cross Timbers Royalty Trust focuses on dividend declarations and sector performance within the rental, leasing, and royalty sector.

• Cross Timbers Royalty Trust declared a $0.11 dividend in February 2024 [N7].
• The Trust also declared a $0.11 dividend in October 2023 [N8].
• The Trust has been mentioned in sector leader and laggard lists in the rental, leasing, and royalty sector in 2024, 2025, and 2026 [N1][N2][N3].
• The Trust was included in a list of 7 monthly dividend stocks for May 2024 [N4].

The Trust benefits from its ownership of net profits interests in producing oil and gas properties operated by a major energy company, providing a steady income stream without operational liabilities. The Trust's monthly distributions reflect net profits income after costs, with recent years showing resilience despite commodity price fluctuations. The Trust's cash reserve and conservative accounting basis provide financial stability. Higher natural gas prices and efficient cost management have partially offset declines in oil prices and production volumes. The Trust's structure allows for direct exposure to commodity prices and production, which can support income generation when market conditions are favorable.

The Trust's income is subject to natural production decline of underlying oil and gas properties, estimated at 6 to 8 percent annually, which reduces net profits income over time. Commodity price volatility, particularly declines in oil prices, has materially impacted net profits income, as seen in the 13 percent decrease from 2024 to 2025. Regulatory risks related to greenhouse gas emissions and sustainability policies may increase operating costs for underlying properties, potentially reducing net proceeds payable to the Trust. The Trust's net profits interests are amortized over proved reserves, which may be revised downward due to production declines or price changes, affecting the Trust's asset carrying value. The Trust has no operational control and depends on XTO Energy's management of the properties.

The Trust's moat derives from its ownership of net profits interests in oil and gas properties operated by a major integrated energy company, ExxonMobil through its subsidiary XTO Energy. These interests provide a defined share of net profits from production without the Trust bearing operational liabilities or costs beyond administrative expenses. The Trust's structure as a royalty trust limits operational risk and capital expenditure requirements, providing a stable income stream tied to commodity production and prices. The long-established relationship with ExxonMobil and the defined contractual rights to net profits interests underpin the Trust's economic rights. However, the Trust is exposed to commodity price volatility, natural production decline, and regulatory risks affecting the underlying properties.

• Commodity Price Volatility: The Trust's net profits income and distributions are directly affected by fluctuations in oil and natural gas prices, which are subject to market supply and demand dynamics and geopolitical factors.
• Natural Production Decline: Underlying oil and gas properties experience natural production decline estimated at 6 to 8 percent annually, reducing volumes and net profits income over time.
• Regulatory and Environmental Risks: Increasing focus on greenhouse gas emissions and sustainability regulations may raise operating costs for underlying properties, potentially reducing net proceeds payable to the Trust.
• Dependence on Operator: The Trust relies on XTO Energy, a subsidiary of ExxonMobil, to operate the underlying properties effectively; any operational issues or changes in management could impact production and income.
• Accounting and Valuation Risks: The Trust uses a modified cash basis accounting method and amortizes net profits interests based on proved reserves; changes in reserves or impairment could affect the Trust's asset values and distributions.

• Cross Timbers Royalty Trust (CRT) is a royalty trust owning net profits interests in oil and gas properties primarily owned by XTO Energy, a subsidiary of ExxonMobil [S1].
• The Trust receives net profits income from oil and gas sales, which is distributed monthly to unitholders after payment of Trust administration expenses [S1].
• Net profits income is affected by oil and gas sales volumes, prices, and costs deducted in the calculation of net profits income [S1].
• In 2025, net profits income was $5.74 million, down 13% from $6.56 million in 2024, mainly due to lower oil prices, decreased oil and gas production, partially offset by higher gas prices and lower costs [S1].
• Oil sales volumes underlying the Trust decreased approximately 10% from 2024 to 2025 due to natural production decline and timing of cash receipts [S1].
• Gas sales volumes underlying the Trust decreased approximately 10% from 2024 to 2025, influenced by timing of cash receipts, natural production decline, and out-of-period revenues [S1].
• Average oil price in 2025 was $65.85 per barrel, down 13% from $75.68 in 2024; average gas price was $4.40 per Mcf, up 11% from $3.97 in 2024 [S1].
• The Trust's total costs deducted in calculating net profits income were $8.0 million in 2025, down from $9.8 million in 2024, due to decreased development costs, taxes, transportation, and production expenses [S1].
• The Trust's administration expenses were $847,078 in 2025, down from $945,612 in 2024 [S1].
• The Trust maintains a cash reserve funded at $1.45 million as of December 31, 2025, for contingencies [S1].
• The Trust's net profits interests are amortized on a unit-of-production basis using proved reserves; accumulated amortization was $58.94 million as of December 31, 2025 [S1].
• The Trust does not have directors or officers; Argent Trust Company is the Trustee since December 30, 2022 [S1,S2].
• The Trust's only cash requirement is monthly distribution of income to unitholders; it is not liable for production costs or liabilities of underlying properties [S1].
• The Trust may borrow funds to pay liabilities if repaid before distributions [S1].
• The underlying properties are primarily operated by XTO Energy, which deducts overhead charges for monitoring and administrative expenses, subject to annual adjustment [S1].
• The Trust's financial statements are prepared on a modified cash basis of accounting, recognizing net profits income when received and expenses when paid, consistent with SEC guidance for royalty trusts [S1].
• No impairment of net profits interests was recorded as of December 31, 2025 [S1].
• The Trust's oil and gas sales volumes and prices are subject to natural production decline and market volatility [S1].
• The Trust has no off-balance sheet financing arrangements and no guarantees of debt of other parties [S1].
• The Trust's distributions per unit for the quarter ended December 31, 2025, totaled $0.226840 [S1].
• Recent news highlights include multiple dividend declarations of $0.11 per unit and mentions in sector leader and laggard lists in the rental, leasing, and royalty sector [N4,N7,N8,N1,N2,N3].