Cross Timbers Royalty Trust reported a significant decline in financial performance for the third quarter and the first nine months of 2025, as detailed in its latest 10-Q filing. For the quarter ended September 30, 2025, net profits income was $761,552, a decrease of 55% from $1,697,724 in the same period of 2024. The nine-month figures also reflected a decline, with net profits income totaling $4,108,712, down 19% from $5,100,336 year-over-year. The decrease in income was attributed primarily to reduced oil and gas production and lower oil prices, which collectively accounted for a loss of approximately $1.5 million in revenue.
The Trust's total income for the third quarter was $774,281, down from $1,712,188 in the prior year, while total income for the nine months was $4,145,429, compared to $5,146,946 in 2024. Distributable income for the quarter was $453,318, translating to $0.075553 per unit, a sharp decline from $1,521,252 or $0.253542 per unit in the same quarter of 2024. The nine-month distributable income also fell to $3,129,804, or $0.521634 per unit, from $4,360,224, or $0.726704 per unit, in the previous year.
Operationally, the Trust experienced a 20% decrease in oil sales volumes and a 47% decrease in gas sales volumes for the third quarter, with average oil prices dropping 20% to $62.21 per barrel. Gas prices remained stable at $3.65 per thousand cubic feet. The Trust's total revenues for the quarter were $2,774,186, down 40% from $4,588,397 in the prior year, while total costs decreased by 28% to $1,920,310, primarily due to lower production expenses and taxes.
Looking ahead, the Trust's management has indicated that the outlook remains uncertain due to ongoing volatility in oil and gas prices and production levels. The Trustee noted that while there were no impairment triggers for the net profits interests as of September 30, 2025, the long-term market conditions will continue to influence future performance. The Trust's financial statements are prepared on a modified cash basis, which may differ from U.S. GAAP, and the Trustee emphasized the importance of monitoring market conditions and operational performance closely.
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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