Cross Timbers Royalty Trust 8-K, filed Dec 19, 2022
Cross Timbers Royalty Trust (CRT)
About this 8-K
Cross Timbers Royalty Trust filed this 8-K on December 19, 2022.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): December 19, 2022
CROSS TIMBERS ROYALTY TRUST
(Exact Name of Registrant as Specified in Its Charter)
| Texas | 1-10982 | 75-6415930 | ||
| (State or other jurisdiction of Incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
Simmons Bank
Trustee
2911 Turtle Creek Blvd, Suite 850
Dallas, Texas 75219
(Address of Principal Executive Offices) (Zip Code)
Registrant’s Telephone Number, Including Area Code (855) 588-7839
(Former Name or Former Address, if Changed Since Last Report) NONE
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class |
Trading symbol |
Name of each exchange on which registered | ||
| Units of Beneficial Interest | CRT | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On December 19, 2022, the Registrant issued a news release announcing its monthly cash distribution to unitholders of record on December 30, 2022. A copy of the news release is furnished as Exhibit 99.1.
The information in this Current Report, including the news release attached hereto, is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liabilities of that Section.
Item 9.01. Financial Statements and Exhibits.
| (d) | Exhibits. | |
| Exhibit 99.1 News Release dated December 19, 2022 | ||
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| CROSS TIMBERS ROYALTY TRUST | ||||||
| By: | SIMMONS BANK, TRUSTEE | |||||
| Date: December 19, 2022 | By: | /s/ NANCY WILLIS | ||||
| Nancy Willis | ||||||
| Vice President | ||||||
| EXXON MOBIL CORPORATION | ||||||
| By: | /s/ DAVID LEVY | |||||
| David Levy Vice President – Upstream Business Services |
||||||
3
EXHIBIT 99.1
[NEWS RELEASE LETTERHEAD OF CROSS TIMBERS ROYALTY TRUST APPEARS HERE]
CROSS TIMBERS ROYALTY TRUST
DECLARES DECEMBER CASH DISTRIBUTION
Dallas, Texas, December 19, 2022 – Simmons Bank, as Trustee of the Cross Timbers Royalty Trust (NYSE:CRT), today declared a cash distribution to the holders of its units of beneficial interest of $0.150335 per unit, payable on January 17, 2023, to unitholders of record on December 30, 2022. The following table shows underlying oil and gas sales and average prices attributable to the current month and prior month distributions.
| Underlying Sales Volumes (a) |
Average Price | |||||||||||||||
| Oil (Bbls) |
Gas (Mcf) |
Oil (per Bbl) |
Gas (per Mcf) |
|||||||||||||
| Current Month Distribution |
14,000 | 101,000 | $ | 84.61 | $ | 10.44 | ||||||||||
| Prior Month Distribution |
12,000 | 93,000 | $ | 85.47 | $ | 10.74 | ||||||||||
| (a) | Sales volumes are recorded in the month the Trust receives the related net profits income. Because of this, sales volumes may fluctuate from month to month based on the timing of cash receipts. |
Excess Costs
XTO Energy has advised the Trustee that $214,000 of excess costs were recovered on properties underlying the Texas Working Interest net profits interests. However, after the partial recovery, there were no remaining proceeds from the properties underlying the Texas Working Interest net profits interests to be included in this month’s distribution. Underlying cumulative excess costs remaining on the Texas Working Interest net profits interests after the current month’s distribution total $1.8 million, including accrued interest of $644,000.
XTO Energy has advised the Trustee that $6,000 of excess costs were recovered on properties underlying the Oklahoma Working Interest net profits interests. However, after the partial recovery, there were no remaining proceeds from the properties underlying the Oklahoma Working Interest net profits interests to be included in this month’s distribution. Underlying cumulative excess costs remaining on the Oklahoma Working Interest net profits interests after the current month’s distribution total $0.7 million, including accrued interest of $6,000.
New Trustee
On October 13, 2022, upon request of the Trustee and a unitholder of the Trust, the District Court of Tarrant County, Texas, 153rd Judicial District approved an order modifying the Trust indenture so that Argent Trust Company would quality as successor trustee. The effective date of the Trustee’s resignation and appointment of Argent Trust Company as successor trustee is anticipated to be December 30, 2022, subject to satisfaction or waiver of the conditions set forth in the Trustee’s notice of resignation and the Trust’s definitive proxy statement.
For more information on the Trust, please visit our website at www.crt-crosstimbers.com.
* * *
| Contact: | Nancy Willis Vice President Simmons Bank, Trustee 855-588-7839 |