CROSS TIMBERS ROYALTY TRUST reported significant declines in financial performance for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, total revenues were $4.6 million, a decrease of 15% from $5.4 million in Q3 2023. The decline was primarily driven by a 20% drop in oil sales, which totaled $3.2 million, down from $4.0 million in the prior year. Gas sales, however, saw a slight increase of 1%, reaching $1.4 million compared to $1.4 million in Q3 2023.

For the nine months ended September 30, 2024, total revenues fell by 30% to $13.7 million from $19.5 million in the same period of 2023. Oil sales decreased to $9.7 million from $10.5 million, while gas sales plummeted by 56% to $3.9 million from $9.0 million in the previous year.

Net profits income for Q3 2024 was reported at $1.7 million, a 37% decrease from $2.7 million in Q3 2023. For the nine-month period, net profits income was $5.1 million, down 48% from $9.8 million in 2023. The declines were attributed to lower gas prices, decreased production volumes, and increased production expenses. Specifically, gas prices fell by 14% to $3.65 per Mcf in Q3 2024, and by 37% to $4.02 per Mcf for the nine months.

Distributable income also reflected this downturn, with Q3 2024 figures at $1.5 million, or $0.25 per unit, compared to $2.5 million, or $0.41 per unit, in Q3 2023. For the nine months, distributable income was $4.4 million, or $0.73 per unit, down from $9.1 million, or $1.52 per unit, in the prior year.

The Trust maintained a cash and short-term investment balance of $1.6 million as of September 30, 2024, down from $1.9 million at the end of 2023. The net profits interests in oil and gas properties also decreased to $2.5 million from $2.7 million during the same period.

Administrative expenses for Q3 2024 were $190,936, a decrease from the previous year, while total administrative expenses for the nine months increased to $786,722, reflecting a rise of $117,840 from 2023.

The Trust's financial position remains stable, with no impairment of net profits interests reported, and an expense reserve of $1 million is currently funded to cover obligations if net profits income is insufficient. The Trust continues to be treated as a grantor trust for federal income tax purposes, exempting it from taxation at the trust level.