Recent news coverage of Cross Timbers Royalty Trust primarily focuses on its monthly dividend declarations and its inclusion in sector leader and dividend stock lists.

• Cross Timbers Royalty Trust declared a $0.11 dividend in February 2024 and October 2023 [N7][N8].
• The Trust has been featured in articles highlighting monthly dividend stocks and sector leaders in rental, leasing, and royalty stocks [N3][N1].
• Sector laggard articles have also mentioned the Trust in the context of rental, leasing, and royalty stocks [N2].

The Trust benefits from diversified net profits interests in oil and gas properties operated by a major integrated energy company, providing exposure to both oil and natural gas markets. The Trust's monthly distribution structure offers regular income to unitholders. Recent increases in natural gas prices and cost reductions have partially offset declines in oil prices and production volumes, supporting distributable income. The Trust maintains cash reserves to manage contingencies and has no off-balance sheet liabilities, supporting financial stability. The Trust's modified cash basis accounting provides transparency on cash flows and distributions. Recent news highlights consistent dividend declarations, indicating ongoing income generation. [S1,N3,N7,N8]

The Trust faces risks from natural production decline estimated at 6-8% annually, which reduces net profits income over time. Commodity price volatility, particularly declines in oil prices, has materially impacted net profits income and distributions. Regulatory developments 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 has cumulative excess costs that must be recovered from future net proceeds, which could delay or reduce income. The Trust has no operational control over the underlying properties and depends on third-party operators, limiting its ability to mitigate risks. The Trust's financial statements are prepared on a modified cash basis, which differs from U.S. GAAP and may affect comparability. [S1]

The Trust's moat derives from its ownership of net profits interests in oil and gas properties operated by a major energy company, ExxonMobil's subsidiary XTO Energy. These interests provide a defined share of net profits from production without the Trust bearing operational liabilities or costs beyond its share of expenses. The Trust's structure limits its activities to holding these interests and distributing income, providing a stable income stream tied to commodity production and prices. The Trust's long-standing relationship with XTO Energy and the legal framework governing its net profits interests create barriers to entry and operational risk exposure. However, the Trust is exposed to commodity price volatility, natural production decline, and regulatory risks affecting the underlying properties. The Trust's lack of operational control and dependence on third-party operators limit its ability to influence production or costs directly. [S1]

• Commodity Price Volatility: The Trust's net profits income and distributions are sensitive to fluctuations in oil and natural gas prices, which have historically been volatile and can materially impact revenues.
• Natural Production Decline: Underlying oil and gas properties experience natural production decline estimated at 6-8% annually, reducing volumes and net profits income over time.
• Regulatory and Sustainability Risks: Increasing regulatory focus on greenhouse gas emissions and sustainability may raise operating costs for underlying properties, potentially reducing net proceeds to the Trust.
• Excess Costs Recovery: The Trust has cumulative excess costs that must be recovered from future net proceeds of certain conveyances, which could delay or reduce net profits income.
• Lack of Operational Control: The Trust does not operate the underlying properties and relies on third-party operators, limiting its ability to influence production, costs, or compliance with regulations.

• 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 after deducting production costs, taxes, and other expenses [S1].
• Net profits income is recorded on a modified cash basis, recognized when received rather than accrued [S1].
• The Trust's net profits income for the year ended December 31, 2025, was $5.74 million, down 13% from $6.56 million in 2024, mainly due to lower oil prices and decreased production volumes [S1].
• Oil sales volumes decreased approximately 10% from 2024 to 2025 due to natural production decline and timing of cash receipts [S1].
• Gas sales volumes also decreased about 10% from 2024 to 2025, influenced by timing and absence of certain out-of-period revenues, partially offset by residue gas sales [S1].
• Average oil price for 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].
• Costs deducted in calculating net profits income decreased 18% from 2024 to 2025, mainly due to lower development costs and production expenses [S1].
• The Trust pays monthly cash distributions to unitholders based on net profits income and other income less expenses and reserves [S1].
• Distributions for the quarter ended December 31, 2025, totaled $1.36 million or $0.226840 per unit [S1].
• The Trust had cash and short-term investments of approximately $2.13 million as of December 31, 2025, and an expense reserve funded at $1.45 million [S1].
• The Trust does not have directors or officers; Argent Trust Company is the Trustee as of December 30, 2022 [S1,S2].
• The Trust's net profits interests are subject to amortization based on proved reserves and production [S1].
• The Trust's underlying properties are primarily royalty and overriding royalty interests, with some working interests operated by XTO Energy [S1].
• XTO Energy deducts overhead charges for monitoring and administrative expenses related to the net profits interests [S1].
• The Trust's only cash requirement is to pay monthly distributions; it is not liable for production costs or liabilities of the underlying properties [S1].
• The Trust may establish cash reserves for contingencies and may borrow funds to pay liabilities if repaid before distributions [S1].
• The Trust's financial statements are prepared on a modified cash basis, a comprehensive basis of accounting other than U.S. GAAP [S1].
• The Trust's net profits income is affected by oil and gas sales volumes, prices, and costs deducted in the calculation [S1].
• The Trust's oil and gas production is subject to natural decline estimated at 6-8% per year [S1].
• The Trust has no off-balance sheet financing arrangements and no guarantees of debt of other parties [S1].
• There is regulatory focus on greenhouse gas emissions and sustainability that may increase operating costs for underlying properties, potentially affecting net proceeds to the Trust [S1].
• Recent news coverage highlights the Trust's monthly dividend declarations and its inclusion in dividend stock lists [N3,N7,N8].