CRT
- Cross Timbers Royalty Trust
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Overview
Company Summary
Cross Timbers Royalty Trust (CRT) is a publicly traded trust that holds interests in oil and natural gas properties in the United States. As a royalty trust, CRT does not engage in direct exploration or production activities. Instead, it mainly acts as a pass-through entity, distributing the income generated from its ownership interests to its unitholders.
CRT's primary assets consist of royalty and overriding royalty interests in oil and gas properties, primarily located in Texas, Oklahoma, and New Mexico. These interests entitle CRT to a portion of the revenues generated from the production and sale of oil and gas by the working interest owners, who are responsible for the operational activities.
The trust's role is to collect the royalty payments, deduct any related expenses, and distribute the remaining income to its unitholders on a periodic basis. CRT's income from these interests primarily depends on the production volumes, commodity prices, and operating costs associated with the underlying properties.
It is important to note that as a royalty trust, CRT's fortunes are directly tied to the performance of the oil and gas industry. If oil and gas prices rise or if production increases in its properties, CRT's income and distributions to unitholders could increase. Conversely, a decline in oil and gas prices or production levels could adversely impact CRT's financial performance.
Overall, CRT provides investors with an opportunity to gain exposure to the oil and gas industry without directly participating in exploration or production activities. The trust's primary objective is to generate income by collecting and distributing royalty payments from its ownership interests, creating a potential long-term income stream for its unitholders.