CRT Halts Monthly Distribution Despite $136K Cost Recovery
CRT sits 26% above its 52-week low of $7.07.
Summary
Cross Timbers Royalty Trust will not issue a monthly distribution this month, despite recovering $136,000 in excess costs from Oklahoma properties. This news clarifies the 8-K filed yesterday, which had declared a June cash distribution, indicating it will not materialize. The company continues to face significant cumulative excess costs, totaling $842,000 in Oklahoma and $5.951 million in Texas. For a royalty trust, distributions are the primary return, making this halt a material negative surprise that directly impacts the investment thesis and reflects ongoing challenges with distributable income.
At the time of this announcement, CRT was trading at $8.93 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $53.6M. The 52-week trading range was $7.07 to $11.10. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Wiseek News.