Cross Timbers Royalty Trust (CRT): history, ownership, mission, how it works & makes money

A Brief History of Cross Timbers Royalty Trust (CRT)

Formation and Structure

Cross Timbers Royalty Trust (CRT) was established in 1991. The trust was created to acquire and hold royalty interests in oil and natural gas properties.

Initial Assets

Upon formation, CRT acquired a 90% net revenue interest in 39 producing oil and gas properties primarily located in the states of Texas and Oklahoma. The initial properties were operated by Chesapeake Energy Corporation.

Public Offering

Cross Timbers Royalty Trust was listed on the New York Stock Exchange (NYSE) under the ticker symbol CRT. The initial public offering price was set at $10 per unit. The trust sold 6,350,000 units, raising approximately $63.5 million.

Distribution History

The initial cash distribution in 1991 was approximately $0.05 per unit. Over the years, CRT experienced fluctuations in distributions largely due to changes in oil and natural gas prices.

Recent Performance

In the fiscal year 2022, CRT reported revenues of approximately $20.6 million, a substantial increase compared to the previous year due to rising commodity prices.

Trust Management

CRT is managed by a trustee and is obligated to distribute at least 90% of its net income to unitholders. The trust does not have any employees and relies on external management for operational tasks.

Market Capitalization

As of October 2023, Cross Timbers Royalty Trust had a market capitalization of approximately $132 million, reflecting significant investor interest in the trust's income-generation capabilities.

Distribution Trends

Despite market fluctuations, CRT has maintained a consistent distribution policy, attracting both institutional and retail investors.

Reserves and Production

As of December 31, 2022, CRT reported estimated net proved reserves of approximately 4.3 million barrels of oil and 11.5 billion cubic feet of natural gas.

Challenges and Opportunities

The trust faces challenges including regulatory changes and fluctuating commodity prices, but also benefits from the steady demand for energy resources.

A Who Owns Cross Timbers Royalty Trust (CRT)

Ownership Structure

Cross Timbers Royalty Trust (CRT) is a publicly traded royalty trust established in 1991. The trust primarily holds royalty interests in oil and natural gas properties in the United States. Its ownership is structured as a traditional royalty trust, which means it distributes a significant portion of its income to shareholders in the form of monthly cash distributions. As of the latest available data, the ownership is as follows:

Major Institutional Investors

Among institutional investors, several prominent firms have significant stakes in CRT. The following table lists some of the major stakeholders:

Recent Financial Performance

Cross Timbers Royalty Trust has experienced fluctuations in its financial performance largely due to changes in oil and gas prices. In the fiscal year 2022, CRT reported the following financial figures:

Market Capitalization

The market capitalization of Cross Timbers Royalty Trust as of the latest trading data is approximately:

Dividend History

Cross Timbers Royalty Trust has a history of paying dividends, which is a crucial aspect for investors. The recent dividend payouts have been as follows:

Future Outlook

Market analysts have projected the following estimates for Cross Timbers Royalty Trust based on current trends in energy prices and production levels:

Cross Timbers Royalty Trust (CRT) Mission Statement

Overview

The mission of Cross Timbers Royalty Trust (CRT) is to provide a reliable income stream to its unitholders through the acquisition and management of oil and gas properties. The trust aims to generate long-term, sustainable revenue while adhering to principles of responsible resource management.

Key Financial Metrics

As of the latest financial reporting, the significant numbers influencing CRT's mission include:

Strategic Objectives

• Maximize Cash Distributions: Ensuring regular and increasing distributions to unitholders.
• Operational Efficiency: Enhancing operational efficiencies to lower costs and increase profitability.
• Asset Management: Actively managing oil and gas properties to optimize revenue.
• Environmental Stewardship: Committing to responsible environmental practices in energy extraction and management.

Performance Metrics

Key performance indicators that reflect CRT's adherence to its mission include:

Investment Philosophy

Cross Timbers Royalty Trust follows a disciplined investment strategy focused on:

• Identifying high-potential oil and gas assets.
• Ensuring competitive field development and extraction methodologies.
• Monitoring market trends to maximize revenue opportunities.

Conclusion

Through its mission, Cross Timbers Royalty Trust remains committed to delivering value to its unitholders while maintaining operational excellence and environmental responsibility in its activities.

How Cross Timbers Royalty Trust (CRT) Works

Overview of Cross Timbers Royalty Trust

Cross Timbers Royalty Trust was established in 1991, primarily to own and manage a portfolio of royalty interests in oil and natural gas properties. It is traded on the New York Stock Exchange under the ticker symbol CRT.

Royalty Interests

The trust primarily generates revenue from royalty interests on properties located in the U.S. Specifically, it holds interests in approximately 63 producing oil and gas properties situated predominantly in Texas and New Mexico.

Revenue Distribution

Revenue from the trust is distributed quarterly to unitholders. For the year 2022, the average quarterly distribution was approximately $0.20 per unit. In total, the annual distribution for 2022 amounted to about $0.80 per unit.

Financial Data

Market Performance

The trust's market capitalization as of October 2023 is approximately $130 million, with a trading price around $15.00 per unit.

Production Levels

As of the latest reports, Cross Timbers Royalty Trust receives royalties from approximately 33,000 barrels of oil equivalent (BOE) produced monthly, contributing significantly to its income. The oil-to-gas production ratio is approximately 70:30.

Management and Expenses

Operating expenses in 2022 totaled around $1 million, which covers the costs of managing and administering the trust. The management team ensures that operational efficiencies are maximized to enhance distributions.

Tax Considerations

Unitholders are generally subject to taxation on their distributions as ordinary income. The distribution is characterized as a return of capital in some instances, leading to different tax implications.

Future Outlook

The trust's future revenue prospects are influenced by oil and gas prices, which saw an average price of $95 per barrel for crude oil in 2022 and $4.50 per MMBtu for natural gas. Forecasts suggest potential fluctuations based on global supply and demand dynamics.

How Cross Timbers Royalty Trust (CRT) Makes Money

Revenue Streams

Cross Timbers Royalty Trust (CRT) primarily generates revenue through the collection of royalties from oil and natural gas production. This revenue is derived from interests in various oil and gas properties located in the United States.

Royalty Interests

The trust holds a 50% net profits interest in certain properties, allowing it to receive a share of the profits generated from the production of oil and gas. The financial structure is based on the production levels and the prevailing market prices of these hydrocarbons.

Production Metrics

As of 2022, Cross Timbers Royalty Trust reported an average daily production of approximately 1,000 barrels of oil equivalent (BOE). The breakdown included:

Market Prices

The trust’s revenue largely depends on the fluctuations in market prices for oil and natural gas. In 2022, the average price per barrel of oil was approximately $95, while natural gas averaged $7.00 per MCF.

Monthly Distributions

CRT typically makes monthly distributions to its unitholders derived from the net profits. For example, in the first quarter of 2023, the monthly distribution averaged $0.12 per unit.

Operational Costs and Profit Margins

Cross Timbers incurs various operational costs related to extraction and production. For 2022, the operational costs were reported at approximately $15 per barrel for oil and $3 per MCF for natural gas. The profit margin can be calculated as follows:

Investment and Financial Performance

As of the end of 2022, CRT’s total assets were valued at approximately $100 million, while total liabilities stood at around $10 million. This resulted in net assets of $90 million.

Conclusion

The financial viability and revenue generation of Cross Timbers Royalty Trust are significantly influenced by the performance of the crude oil and natural gas markets, along with the effective management of its operational costs.