Cross Timbers Royalty Trust (NYSE:CRT) (NYSE: CRT) is a Delaware statutory trust that holds royalty and net profit interests in a diversified portfolio of oil and gas properties across Texas, Oklahoma and Kansas. Established in 1980, the trust was formed to provide investors with exposure to upstream energy production through an efficient, royalty-based structure. Rather than operating oilfields directly, Cross Timbers Royalty Trust collects royalties and net profits interests from producing wells operated by third parties, offering shareholders a distribution stream tied to hydrocarbon revenues without the capital expenditures and operating risks of exploration and production companies.
The trust’s asset portfolio comprises interests in more than 900 wells, including legacy fields in the Oklahoma Anadarko Basin, the Permian Basin of West Texas, and emerging plays such as the Austin Chalk. Royalty interests entitle the trust to a percentage of gross production revenues, while net profits interests grant a share of remaining profits after certain deductible costs. This dual royalty/net profits structure aligns the trust’s cash flows with commodity prices and production volumes, creating a predictable income stream for unitholders.
Cross Timbers’ revenues are generated through marketing arrangements and joint-venture agreements with established operators such as Occidental Petroleum and ConocoPhillips. These partnerships ensure access to modern drilling and completion technologies, ongoing field development and infrastructure maintenance. Over its four decades of operation, the trust has maintained a focus on mature, low-decline properties, seeking to extend field life through recompletions and infill drilling undertaken by operator partners.
Governed by an independent trustee and administered by Cross Timbers Royalty Management LLC, the trust is overseen by a board of experienced energy professionals. Distributions are made monthly to unitholders, reflecting realized proceeds from oil and gas sales less administrative expenses and reserves. By combining the stability of royalty interests with the growth potential of active field development, Cross Timbers Royalty Trust offers a distinctive vehicle for income-oriented investors seeking exposure to U.S. onshore hydrocarbon production.
