CRT 8-K
Cross Timbers Royalty Trust (CRT)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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): October 21, 2024 |
CROSS TIMBERS ROYALTY TRUST
(Exact name of registrant as specified in its charter)
Texas |
001-10982 |
75-6415930 |
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(State or other jurisdiction |
(Commission File Number) |
(IRS Employer |
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Argent Trust Company Trustee 3838 Oak Lawn Ave, Suite 1720 |
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Dallas, Texas |
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75219-4518 |
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(Address of principal executive offices) |
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(Zip Code) |
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Registrant’s telephone number, including area code: (855) 588-7839 |
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(Former name or former address, if changed since last report)
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:
Securities registered pursuant to Section 12(b) of the Act:
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Trading Symbol(s) |
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Units of Beneficial Interest |
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CRT |
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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 October 21, 2024, the Registrant issued a news release announcing its monthly cash distribution to unitholders of record on October 31, 2024. 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.
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Exhibit 99.1 |
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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.
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CROSS TIMBERS ROYALTY TRUST |
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By: |
ARGENT TRUST COMPANY, TRUSTEE |
Date: |
October 21, 2024 |
By: |
/s/ NANCY WILLIS |
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Nancy Willis |
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Director of Royalty Trust Services |
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EXXON MOBIL CORPORATION |
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By: |
/s/ KRISTY WALKER |
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Kristy Walker |
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Unconventional Finance General Manager |
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EXHIBIT 99.1
[NEWS RELEASE LETTERHEAD OF CROSS TIMBERS ROYALTY TRUST APPEARS HERE]
CROSS TIMBERS ROYALTY TRUST
DECLARES OCTOBER CASH DISTRIBUTION
Dallas, Texas, October 21, 2024 – Argent Trust Company, as Trustee of the Cross Timbers Royalty Trust (the “Trust”) (NYSE: CRT), today declared a cash distribution to the holders of its units of beneficial interest of $0.064592 per unit, payable on November 15, 2024, to unitholders of record on October 31, 2024. The following table shows underlying oil and gas sales and average prices attributable to the current month and prior month distributions.
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Underlying Sales |
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Volumes (a) |
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Average Price |
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Oil (Bbls) |
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Gas (Mcf) |
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Oil (per Bbl) |
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Gas (per Mcf) |
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Current Month Distribution |
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12,000 |
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82,000 |
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$76.77 |
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$4.46 |
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Prior Month Distribution |
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16,000 |
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138,000 |
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$77.46 |
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$3.29 |
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(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. |
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Litigation Settlement in Prior Month Distribution
A federal district court approved the settlement of a royalty class action lawsuit against XTO Energy Inc. (Chieftain Royalty Company v. XTO Energy Inc.) in March 2018. In July 2018, the class plaintiffs submitted their plan to allocate the settlement funds among members of the class. After that plan of allocation was approved, XTO Energy advised the Trustee that, based upon that plan, approximately $40,000 should be allocated to the Trust as additional production costs.
The Trustee objected to similar claims relating to the Chieftain settlement with respect to another trust for which it serves as trustee (the Hugoton Royalty Trust) in an arbitration styled Simmons Bank (successor to Southwest Bank and Bank of America, N.A.) vs. XTO Energy Inc. through the American Arbitration Association. The Trustee and XTO Energy entered into a settlement agreement on June 18, 2024, which resolved the issues subject to the arbitration. As a result, the September 2024 distribution included a $24,128 (net to the Trust) deduction allocated to the Trust as a production cost for the Chieftain settlement.
Excess Costs
XTO Energy has advised the Trustee that excess costs increased by $125,000 on properties underlying the Texas Working Interest net profits interests. However, these excess costs did not reduce net proceeds from the remaining conveyances. Underlying cumulative excess costs remaining on the Texas Working Interest net profits interests total $4,000,000, including accrued interest of $1,061,000.
For more information on the Trust, including the annual tax information, distribution amounts, and historical press releases, please visit our website at www.crt-crosstimbers.com.
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Contact: |
Nancy Willis Director of Royalty Trust Services Argent Trust Company, Trustee 855-588-7839 |