Cross Timbers Royalty Trust (CRT) Q2 2024 earnings summary

Executive summary

• Q2 2024 distributable income was $1.35M, or $0.224293/unit, down from $3.04M, or $0.506769/unit, in Q2 2023; lower gas prices were the primary driver.

• H1 2024 distributable income was $2.84M, or $0.473162/unit, versus $6.68M, or $1.113302/unit, in H1 2023.

Financial highlights

• Q2 net profits income fell 51% YoY to $1.56M; H1 fell 52% to $3.40M.

• Q2 total income was $1.58M and administration expense was $234,286; administration expense rose $94,832 YoY, primarily due to payment timing and professional-services terms.

• H1 total income was $3.43M and administration expense was $595,786, up $168,488 YoY, primarily due to payment timing and professional-services terms.

• June 30 cash and short-term investments were $1.18M; net profits interests, net, were $2.55M, down from $2.67M at Dec. 31, 2023.

• Q2 distributions totaled $0.224293/unit; H1 distributions totaled $0.473162/unit across 6.0M units.

Outlook and guidance

• Natural production decline on underlying properties is estimated at 6%–8% annually.

• Allocation of any Chieftain settlement amount to the Trust is expected to be resolved in Q3 2024.