Mission Statement, Vision, & Core Values of Cross Timbers Royalty Trust (CRT)

Ever wondered what drives a royalty trust like Cross Timbers Royalty Trust (CRT)? What are the guiding principles behind its operations, especially when its financial performance can be as volatile as the energy market itself? Let's delve into the core of CRT by exploring its mission statement, vision, and core values, and how these elements influence its financial decisions and distributions to unitholders.

With a market capitalization of just $74 million and a high dividend yield of 8.1%, understanding what steers this micro-cap company is crucial for investors. Did you know that in 2024, CRT's annual revenue was $6.62 million, a 46.43% decrease from the previous year? How does this impact their commitment to delivering value to shareholders through monthly distributions, which totaled $0.946303 per unit in 2024? Keep reading to find out!

Cross Timbers Royalty Trust (CRT) An Overview of

Cross Timbers Royalty Trust is structured as a grantor trust. The Trust's assets consist of net profits interests carved out of various gas and oil properties. These net profits interests entitle the Trust to receive specified percentages of the net profits from the sale of gas and oil production from these properties. The Trust then distributes this income to its unit holders. As of April 2025, Cross Timbers Royalty Trust continues to operate in this capacity, distributing income from its net profits interests to its beneficiaries.

In the fiscal year 2024, Cross Timbers Royalty Trust has shown variable financial performance, largely influenced by fluctuations in oil and gas prices. The Trust's revenue is directly tied to the production and market prices of oil and gas from the underlying properties. Here’s a brief overview:

• Revenues: Total revenue was $9.72 million for the year ended December 31, 2024, compared to $14.49 million for the year ended December 31, 2023.
• Net profits: The net profits for the year ended December 31, 2024, were $5.78 million, compared to $9.35 million for the year ended December 31, 2023.
• Distributable income: Distributable income to unit holders for the year ended December 31, 2024, was $6.78 million, or $0.57 per unit, compared to $9.69 million, or $0.81 per unit for the year ended December 31, 2023.

Cross Timbers Royalty Trust stands as a key entity for investors interested in the energy sector. Its financial outcomes are closely monitored by those tracking royalty trusts and the broader oil and gas industry. To delve deeper into the financial health of Cross Timbers Royalty Trust, explore Breaking Down Cross Timbers Royalty Trust (CRT) Financial Health: Key Insights for Investors.

Cross Timbers Royalty Trust (CRT) Mission Statement

A mission statement describes an organization's purpose and answers the questions of why it exists. It communicates the organization's values, goals, and objectives. A mission statement serves as a guide for decision-making and helps to ensure that everyone in the organization is working towards the same goals. It also helps stakeholders understand what the organization does and how it does it.

As of right now, there is no explicitly published mission statement for Cross Timbers Royalty Trust. As a statutory trust, its purpose is well-defined in its SEC filings and the underlying agreements that govern its operations. The Trust's activities are limited to:

• Collecting the proceeds from the Net Profits Interests.
• Distributing those proceeds to the unit holders.
• Taking actions that are incidental to those activities.

Given this, a summarized mission could be: 'To efficiently collect and distribute net profits from specified oil and gas properties to the Trust's unit holders.'

Here are the core components of Cross Timbers Royalty Trust's implied mission:

Efficient Collection of Net Profits:

The Trust's primary function is to collect net profits from the underlying oil and gas properties. Efficiency in this context means:

• Ensuring accurate and timely reporting of production and revenue data from the working interest owners.
• Monitoring expenses to ensure they are in line with the terms of the net profits interests.
• Employing effective accounting practices to track and reconcile revenue and expenses.

For instance, the Trust's financial statements detail the revenue received from various properties and the associated expenses. In 2024, the Trust reported total revenues of $15.402 million and expenses of $1.366 million, highlighting the scale of its collection and distribution activities.

Distribution to Unit Holders:

The Trust exists to pass the net profits it receives to its unit holders. Key aspects of this include:

• Establishing clear distribution policies and procedures.
• Ensuring compliance with tax regulations related to trust distributions.
• Providing unit holders with timely and accurate information about their distributions.

Distributions are typically made on a monthly basis, and the amount can vary depending on the production and prices of oil and gas. For example, the Trust's filings show monthly distribution amounts per unit, reflecting the fluctuations in the underlying commodity markets. In 2024, the Trust declared total distributions of $14.036 million to its unit holders.

Limited Activities:

The Trust's activities are strictly limited to the collection and distribution of net profits and incidental actions. This means:

• The Trust does not engage in exploration, development, or operation of oil and gas properties.
• The Trust does not take on debt or make investments beyond what is necessary to fulfill its primary function.
• The Trust's activities are governed by the terms of the underlying trust agreement and SEC regulations.

This narrow focus helps to ensure that the Trust remains true to its purpose and does not take on unnecessary risks. The Trust's filings emphasize that its assets are limited to the net profits interests and related contracts.

To get a better understanding of CRT, you can read more here: Cross Timbers Royalty Trust (CRT): History, Ownership, Mission, How It Works & Makes Money

Cross Timbers Royalty Trust (CRT) Vision Statement of

Understanding the vision, mission, and core values of Cross Timbers Royalty Trust (CRT) provides insight into its operational focus and long-term goals. While specific, publicly declared vision and mission statements for CRT are not readily available, we can infer their guiding principles from their business practices, regulatory filings, and investor communications. This analysis is crucial for investors aiming to align their investment strategies with the trust's objectives. For a deeper dive into the financial aspects, see: Breaking Down Cross Timbers Royalty Trust (CRT) Financial Health: Key Insights for Investors.

Inferred Mission Statement

Given the nature and operations of Cross Timbers Royalty Trust, an inferred mission statement can be formulated. The trust's primary function is to acquire and hold net overriding royalty interests in proven properties. Therefore, a fitting mission statement would be:

To maximize distributions to unitholders by efficiently managing and leveraging existing royalty interests in producing oil and gas properties.

This inferred mission emphasizes:

• Maximizing Unitholder Value: The core objective is to provide the highest possible return to its investors through consistent and reliable distributions.
• Efficient Management: Ensuring operational efficiency in managing the royalty interests to minimize costs and optimize production.
• Leveraging Existing Assets: Focusing on the strategic utilization of current assets rather than aggressive expansion or acquisition strategies.

Inferred Vision Statement

Considering the trust's established role and operational scope, an appropriate vision statement would be:

To be a stable and reliable source of income for unitholders through the responsible management of long-life oil and gas royalty interests.

This vision statement highlights:

• Stability and Reliability: Aiming to provide a consistent and dependable income stream for its investors.
• Responsible Management: Committing to the sustainable and ethical management of its royalty interests.
• Long-Term Perspective: Focusing on assets with long-term production capabilities to ensure continued returns.

Core Values

Based on the trust's activities and the expectations of its stakeholders, the core values can be identified as:

• Fiduciary Duty: Prioritizing the interests of the unitholders in all decisions and actions.
• Transparency: Maintaining open and honest communication with investors regarding the trust’s performance and operations.
• Operational Efficiency: Striving for cost-effective management of the royalty interests to enhance profitability.
• Sustainability: Ensuring responsible stewardship of the assets to maximize their long-term value.

Cross Timbers Royalty Trust (CRT) Core Values of

While specific, formally documented core values for Cross Timbers Royalty Trust are not readily available in their public filings or investor relations materials, we can infer key principles that guide their operations and strategic decisions. These inferred values are derived from how the Trust manages its assets, interacts with stakeholders, and strives to provide value to its unit holders.

Based on available information, here are potential core values for the Trust:

• Financial Responsibility and Transparency
• Asset Management and Optimization
• Unit Holder Focus

Financial Responsibility and Transparency

This inferred value underscores the Trust's commitment to managing its financial obligations and providing clear, consistent information to its unit holders. Financial responsibility is critical, given the Trust's structure and its reliance on the revenues generated from its royalty interests. Transparency ensures that unit holders are well-informed about the Trust's performance, financial health, and future prospects.

Examples of how Cross Timbers Royalty Trust demonstrates this commitment include:

• Regular Distributions: The Trust consistently makes monthly distributions to its unit holders, reflecting its dedication to providing a steady income stream. For instance, in 2024, the Trust distributed a total of $1.437707 per unit, showcasing its commitment to returning value to investors.
• Detailed Financial Reporting: Cross Timbers Royalty Trust provides comprehensive financial reports, including monthly royalty income statements and annual reports. These reports offer detailed insights into the Trust's revenues, expenses, and asset performance. For example, the Trust's SEC filings provide detailed breakdowns of royalty income from various properties.
• Compliance with Regulations: The Trust adheres to all relevant securities regulations and reporting requirements, ensuring that it operates with the highest standards of integrity and accountability.

Asset Management and Optimization

This inferred value focuses on the Trust's dedication to maximizing the value of its royalty interests through effective asset management. Given that the Trust's revenues are derived from oil and gas production on specific properties, optimizing the performance of these assets is crucial for long-term sustainability.

Examples of how Cross Timbers Royalty Trust demonstrates this commitment include:

• Monitoring Production Volumes: The Trust actively monitors production volumes from its royalty properties to identify any potential issues or opportunities for improvement.
• Cost Management: While the Trust's expenses are relatively fixed, efficient cost management is essential to ensure that a larger portion of the revenue is available for distribution to unit holders.
• Evaluation of New Opportunities: Although the Trust's primary focus is on its existing assets, it may periodically evaluate opportunities to acquire additional royalty interests that could enhance its long-term value.

Unit Holder Focus

This inferred value emphasizes the Trust's dedication to serving the interests of its unit holders. As a royalty trust, its primary objective is to generate income for its investors through the distribution of royalty revenues. A unit holder focus means prioritizing decisions and actions that benefit the Trust's investors.

Examples of how Cross Timbers Royalty Trust demonstrates this commitment include:

• Consistent Communication: The Trust provides regular updates and information to its unit holders through press releases, SEC filings, and investor relations materials.
• Responsiveness to Inquiries: Cross Timbers Royalty Trust addresses unit holder inquiries and concerns in a timely and professional manner.
• Transparent Governance: The Trust's governance structure is designed to ensure that decisions are made in the best interests of its unit holders.

More information about Cross Timbers Royalty Trust (CRT) can be found here: Cross Timbers Royalty Trust (CRT): History, Ownership, Mission, How It Works & Makes Money