Cross Timbers Royalty Trust reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with net profits income totaling $6.56 million, a decrease of 47% from $12.30 million in 2023. This decline was primarily attributed to reduced oil and gas production, which fell by approximately $3.8 million, alongside lower average oil and gas prices that contributed an additional $3.4 million to the decrease. The Trust's total revenues for 2024 were $17.32 million, down from $25.44 million in the previous year, reflecting a decrease in both oil and gas sales volumes and prices.
The Trust's operational metrics also showed a downward trend, with oil sales volumes decreasing by 14% to 164,996 barrels in 2024, while gas sales volumes dropped by 31% to 1,216,905 Mcf. The average sales price for oil was $75.68 per barrel, down 2% from the previous year, and the average gas price fell by 34% to $3.97 per Mcf. The Trust's costs also decreased, totaling $9.83 million in 2024 compared to $11.49 million in 2023, primarily due to lower taxes, transportation, and production expenses.
Strategically, the Trust continues to rely on its net profits interests, which are derived from oil and gas properties owned by XTO Energy and its affiliates. The Trust's assets include 90% net profits interests from producing and non-producing properties in Texas, Oklahoma, and New Mexico, and 75% net profits interests from working interests in Texas and Oklahoma. As of December 31, 2024, the Trust's estimated proved reserves included approximately 469,000 barrels of oil and 7.08 million Mcf of gas, with a reserve-to-production index of about 11 years.
Looking ahead, the Trust's management has indicated that future net profits may be impacted by fluctuating oil and gas prices, production costs, and regulatory changes. The Trust has established a cash reserve of $1 million to manage potential liabilities and ensure liquidity for future distributions. However, the ongoing volatility in energy markets and the potential for increased operational costs due to regulatory pressures could pose challenges to the Trust's financial stability and distribution capabilities in the coming years.
About CROSS TIMBERS ROYALTY TRUST
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