Cross Timbers Royalty Trust Reports 72% Drop in Distributable Income Amid Production Declines
CRT sits 54% above its 52-week low of $7.07 on light trading volume (0.2× avg).
Summary
Cross Timbers Royalty Trust reported a significant 72% year-over-year decrease in distributable income for Q1 2026, driven by lower oil and gas production and prices, alongside rising excess costs.
Key Events · Earnings and Guidance · CRT
-
Distributable Income Plummets
Distributable income for Q1 2026 decreased by 71.7% to $503,406 ($0.083901 per unit) from $1,783,938 ($0.297323 per unit) in Q1 2025.
-
Production and Revenue Decline
Total revenues fell 45% year-over-year, primarily due to a 37% decrease in oil sales volumes and a 38% decrease in gas sales volumes from underlying properties, coupled with a 20% drop in average oil prices.
-
Rising Excess Costs
Cumulative excess costs, which reduce future distributions, increased to $5.0 million net to the Trust as of March 31, 2026, up from $2.99 million net at December 31, 2025.
-
Insider Confidence Amidst Weakness
Despite the poor financial performance reported in this filing, the company has seen over $2 million in insider purchases in the last 90 days, and the stock is trading near its 52-week high.
Analysis · CRT · Energy & Transportation
The Trust's Q1 2026 financial results show a substantial deterioration in performance, with distributable income per unit falling by 72% compared to the prior year. This decline is primarily due to a 37-38% reduction in underlying oil and gas production volumes and a 20% drop in average oil prices. Additionally, cumulative excess costs, which must be recovered from future net proceeds before distributions, increased to $5.0 million net to the Trust. This level of decline is significantly worse than the 13% decrease reported for the full year 2025. Despite these negative financial indicators, the stock is trading near its 52-week high, and there has been over $2 million in insider buying activity in the last 90 days, suggesting that some investors, including insiders, may be looking past the current quarter's challenges.
At the time of this filing, CRT was trading at $10.86 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $65.2M. The 52-week trading range was $7.07 to $11.10. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.