Cross Timbers Royalty Trust (CRT)

Key Insights

• Distributable income declined significantly to $632,154 in Q1 2026 compared to $1,127,695 in Q1 2025, representing a 44% year-over-year decrease, primarily due to lower oil and natural gas prices in the current period.
• Cash and short-term investments decreased from $2.13M to $1.50M quarter-over-quarter, indicating the trust is distributing more cash to unitholders than it is generating from operations, which may not be sustainable long-term if commodity prices remain depressed.
• The trust maintains a $1.5M expense reserve to cover obligations, and distribution payable to unitholders dropped significantly from $688,230 at year-end 2025 to $5,538 at March 31, 2026, suggesting recent distributions to unitholders were made.
• Net profits interests in oil and gas properties declined modestly from $2.16M to $2.13M, reflecting the depletion of reserves without replacement, which is a natural concern for a royalty trust with finite underlying assets.