Cross Timbers Royalty Trust (CRT)

History and Background

Cross Timbers Royalty Trust (CRT) was formed in 1991 by XTO Energy Inc. The trust holds net profits interests in various producing oil and gas properties. CRT's purpose is to distribute the net profits from these properties to its unit holders.

Core Business Areas

• Oil and Gas Royalty Interests: CRT holds net profits interests in producing oil and gas properties, primarily located in Texas, Oklahoma, and New Mexico. Revenue is generated from the sale of oil and natural gas produced from these properties.

Leadership and Structure

CRT is a passive entity managed by a trustee, currently Argent Trust Company. There is no management team in the traditional sense. The trustee is responsible for administering the trust and distributing net profits to unit holders.

Key Offerings

• Oil and Gas Net Profits Interests: CRT's primary 'product' is the stream of net profits derived from oil and gas production. Revenue fluctuates based on commodity prices and production volumes. CRT doesn't directly compete in the oil and gas market but relies on the operators of the underlying properties. Competitors: Other royalty trusts (e.g., Permian Basin Royalty Trust (PBT), Texas Pacific Land Trust (TPL))

Industry Overview

The oil and gas royalty trust industry is driven by commodity prices and production levels. These trusts offer investors exposure to the energy sector without direct operational involvement.

Positioning

CRT is a relatively small royalty trust focused on specific producing properties. Its competitive advantage is its established portfolio of assets.

Total Addressable Market (TAM)

The TAM for royalty trusts depends on the overall oil and gas market. CRT is positioned to capture a fraction of the revenue generated by its underlying properties within the broader energy market.

Key Competitors

• PBT
• TPL

Competitive Landscape

CRT competes with other royalty trusts for investor capital. Its competitive advantage lies in the specific characteristics of its underlying properties.

Historical Growth: CRT's historical growth is limited due to its passive nature and dependence on existing properties. Production generally declines over time.

Future Projections: Future growth depends on commodity prices and potential acquisitions of additional royalty interests.

Recent Initiatives: CRT's activity primarily involves managing existing assets and distributing income. No significant strategic initiatives are typically undertaken.

Cross Timbers Royalty Trust is a passive entity whose financial performance is directly tied to commodity prices and the production of its underlying oil and gas properties. Its strengths lie in its established portfolio and passive income stream, while its weaknesses include dependence on commodity prices and declining production. Opportunities exist for acquisitions, but threats include fluctuating prices and reserve depletion. Overall, CRT is a volatile investment suitable for those seeking exposure to the energy sector with limited operational involvement.

Data Sources:

• SEC filings, Financial websites (e.g., Yahoo Finance, Google Finance)

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor.