Cross Timbers Royalty Trust reported a net profits income of $5.74 million for the fiscal year ending December 31, 2025, a decrease of 13% from the previous year's income of $6.56 million. This decline was primarily attributed to lower oil prices, which accounted for a $1.3 million reduction in income, alongside decreased oil and gas production that contributed an additional $1.5 million drop. Despite these challenges, the Trust benefited from a decrease in development costs, which fell by $1 million, and an increase in gas prices, which rose by $0.6 million. The total revenues for 2025 were $14.59 million, down from $17.32 million in 2024.
In terms of operational metrics, the Trust's oil sales volume decreased by 10% to 148,068 barrels in 2025, while gas sales volume also saw a similar decline, totaling 1,099,910 Mcf. The average sales price for oil was $65.85 per barrel, down from $75.68 in 2024, while the average gas price increased to $4.40 per Mcf from $3.97. The Trust's administration expenses decreased to $847,078 from $945,612 in the previous year, reflecting a focus on cost management.
Strategically, the Trust underwent a significant change in its trustee, with Argent Trust Company appointed as the new trustee effective December 30, 2022, replacing Simmons Bank. This transition is expected to enhance the Trust's governance and operational efficiency. The Trust continues to hold net profits interests primarily from XTO Energy, which is a wholly owned subsidiary of ExxonMobil, and remains focused on managing its assets effectively in a competitive oil and gas market.
Looking ahead, the Trust's outlook remains cautious due to the inherent volatility in oil and gas prices, which are influenced by various external factors including geopolitical events and market demand. The Trust's future net profits are also subject to risks associated with production costs and regulatory changes that could impact profitability. As of December 31, 2025, the Trust's cash reserves stood at $1.45 million, providing a buffer against potential fluctuations in income and expenses. The Trust's ability to maintain distributions to unitholders will depend on the stabilization of oil and gas prices and effective management of operational costs.
About CROSS TIMBERS ROYALTY TRUST
Cross Timbers Royalty Trust is a Texas-based entity that holds net profits interests in oil and gas properties primarily in Texas, Oklahoma, and New Mexico. It generates income from royalty and working interests, distributing cash to unitholders. The trust's assets include mature, depleting oil and gas reserves, with income driven by commodity prices, production volumes, and operational costs, operating within a highly regulated energy industry.
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