Cross Timbers Royalty Trust (CRT): BCG Matrix [Dec-2025 Updated]

You're looking at Cross Timbers Royalty Trust (CRT) not as a growing company, but as a portfolio of depleting assets, and the BCG Matrix reveals a stark picture as of late 2025. We've got solid Cash Cows-like those long-lived gas NPIs delivering an annualized distribution yield of 8.6% back in July-but they're shadowed by Dogs, specifically the Texas Working Interest assets sitting on cumulative excess costs of $5,320,000$ as of November. Then there are the Question Marks, where high oil price exposure (72% of 2024 revenue) caused mid-2025 distribution plunges, forcing the Trustee to hoard capital for a $1,500,000$ reserve. Honestly, the lack of Stars is no surprise for a passive trust, but seeing where the cash is actually flowing-and where it's getting stuck-is crucial for your next move. Dive in to see the full breakdown of this unique energy income stream.

Background of Cross Timbers Royalty Trust (CRT)

You're looking to map out the current strategic position of Cross Timbers Royalty Trust (CRT), and to do that right, we first need to nail down exactly what this entity is and what it owns as of late 2025. CRT isn't an operating company; it's a passive investment vehicle, an express trust set up way back in 1991 by XTO Energy Inc.. Its sole purpose is to collect and distribute monthly net profits income from its underlying mineral rights interests to its unitholders.

The trust's assets are carved out of producing leases across Texas, Oklahoma, and New Mexico. Structurally, CRT holds two main components: a 90% net profits interest (NPI) in royalty and overriding royalty properties, and a 75% NPI in working interest (WI) properties in Texas and Oklahoma. The WI properties mean that, unlike the royalty interests, the trust is exposed to production and development costs on those specific assets.

Operationally, CRT is lean; it employs just 2 people and has no field activities-Argent Trust Company acts as the independent trustee handling administration and distributions. The bulk of the income stream, particularly from the 90% NPI, comes from long-lived gas properties situated in the San Juan Basin of northwestern New Mexico, which offers some insulation from direct production costs. Conversely, the 75% NPI interests are tied to predominantly oil-producing properties, making that portion more sensitive to commodity price swings.

Looking at the most recent financials we have, as of September 30, 2025, the trailing twelve-month revenue for Cross Timbers Royalty Trust stood at $5.57M. The market has valued the trust around $52.7M as of mid-November 2025, with the unit price hovering near $8.79. It's important to note the inherent decline rate; CRT estimates its oil and gas properties decline production by 6% to 8% per year, which is a defintely significant long-term factor.

We see the monthly distribution rhythm continuing into late 2025, with the September distribution declared at $0.031753 per unit and the November distribution at $0.036930 per unit. Still, the working interest side carries cost risk; as of the November announcement, cumulative excess costs on the Texas WI properties totaled $5,320,000, including accrued interest. The trust maintains an expense reserve, currently funded at $1,300,000, to help cover obligations. Finally, the trust isn't permanent; it's structured to terminate upon the exhaustion of its reserves or on December 31, 2032, whichever comes first.

Cross Timbers Royalty Trust (CRT) - BCG Matrix: Stars

Cross Timbers Royalty Trust (CRT) has no assets qualifying for the Stars quadrant based on 2025 operational data.

The asset base is static; no further properties can be added to the trust.

The core business is a passive, depleting royalty interest, which fundamentally limits market growth potential.

Estimated rate of natural production decline for oil and gas properties is between 6% and 8% per year.

Projected average annual growth for distributable cash flow over the next five years is estimated at 2%.

Capital allocation for new development or exploration is zero, as the trust is a pass-through vehicle.

The trust's Market Capitalization as of late 2025 is approximately $57 million.

The trust's DCFU price multiple is currently trading at 11.6, with an assumed fair valuation multiple of 9.0.

The operational reality confirms the lack of high-growth characteristics:

• Asset base is static; no new properties added.
• Production decline rate is 6%-8% annually.
• Distributable Cash Flow (DCFU) for 2025 is estimated at $0.82 per unit.
• DCFU for 2024 was $0.95 per unit.
• Cumulative excess costs on Texas Working Interest interests total $5,320,000.
• Expense reserve is funded at $1,300,000 (as of Q3 2025 report).

Cross Timbers Royalty Trust (CRT) - BCG Matrix: Cash Cows

The core of Cross Timbers Royalty Trust (CRT) operations, fitting the Cash Cow profile, centers on its 90% Net Profits Interests (NPI) derived from long-lived gas properties situated in New Mexico, Oklahoma, and Texas. Specifically, the majority of this net profits income originates from these gas properties located in the San Juan Basin of northwestern New Mexico.

A key characteristic supporting the Cash Cow designation for this portion of the business is that these 90% NPI interests are conveyed from underlying royalty and overriding royalty interests, meaning the net profits income is generally insulated from production or development costs. This insulation helps maximize the cash pass-through to unit holders, as the income typically only varies due to shifts in sales volumes or prices.

The trust offered an annualized distribution yield of 8.6% as of July 2025, reflecting a strong income stream derived from these mature assets. To provide context on the underlying asset performance driving this cash flow, here is a look at recent volume changes:

The trust functions as a pass-through vehicle, with essentially all royalty income received being distributed to unit holders. As of July 2025, Cross Timbers Royalty Trust had a market capitalization of $57 million. The inherent nature of these producing properties means there is a natural production decline rate estimated by CRT to be between 6% and 8% per year, which acts as a headwind that must be overcome by price or volume increases elsewhere to maintain cash flow levels.

The cash generation is evident in the distribution history, though it is highly dependent on commodity prices, which is typical for a Cash Cow in a cyclical industry where investment is minimal. The trust's structure dictates that the 90% NPI cash flow is not reduced by the costs associated with the separate 75% NPI interests.

Here are some recent distribution and income figures:

• January 2025 cash distribution declared was $0.095045 per unit, payable February 14, 2025.
• Distributable income for Q1 2024 was $1,493,214, or $0.248869 per unit.
• The annualized yield based on distributions over the first eight months of 2025 was approximately 12.1%.
• The November 2025 cash distribution declared was $0.036930 per unit, payable December 12, 2025.

Cross Timbers Royalty Trust (CRT) - BCG Matrix: Dogs

You're looking at the assets within Cross Timbers Royalty Trust (CRT) that are clearly struggling to generate meaningful returns, which is what we label as Dogs in the Boston Consulting Group Matrix. These are the units operating in low-growth markets with a low relative market share, and honestly, they often just tie up capital. For CRT, the primary candidates for this quadrant are the interests tied to the 75% Net Profits Interests (NPI) from Texas Working Interest oil properties.

The core issue here is the cost structure. Unlike the 90% NPIs which are largely insulated from operational expenses, these 75% interests share in production expense and development cost. When costs outpace revenue on these specific conveyances, the trust gets no income from them until those overruns are cleared. As of November 2025, the financial drag is significant: the cumulative excess costs on the Texas Working Interest reached $5,320,000. That figure includes a substantial amount of capital sitting idle, specifically $1,437,000 in accrued interest alone. That's money that isn't being distributed to you.

The low-growth market aspect is driven by the underlying asset quality. These are working interests in properties located in mature fields, often undergoing secondary or tertiary recovery operations. To compound the cost problem, the underlying production decline rate for the trust's assets is estimated to be between 6%-8% per year. This means the revenue base is shrinking naturally while the deficit needs to be paid down. Expensive turn-around plans rarely work in this scenario; the strategic move is usually to minimize exposure or divest if possible, but for a trust structure, that's tough.

Here's a look at the financial reality tied to these specific high-cost assets as of the latest reporting:

The implication for your cash flow is clear: these assets are cash traps because they consume capital before they can contribute to your distributions. You should monitor the recovery of these excess costs closely, as that is the only path to turning this segment from a drain into a neutral or positive contributor. Still, the structural decline rate presents a persistent headwind.

Key characteristics defining these Dog assets for Cross Timbers Royalty Trust include:

• Ownership structure is 75% Net Profits Interest.
• Assets are subject to production and development costs.
• Underlying properties are in mature fields.
• Costs often reduce or eliminate net proceeds.
• The trust must recover $5,320,000 in deficit before income is generated.

Finance: review the latest XTO Energy report on Texas Working Interest cost recovery progress by next Tuesday.

Cross Timbers Royalty Trust (CRT) - BCG Matrix: Question Marks

You're looking at the Cross Timbers Royalty Trust (CRT) assets that are stuck in high-growth markets-the commodity sector-but have a low market share, meaning their returns are highly unpredictable and cash-consumptive relative to their potential. This is where the Trust's inherent structure creates a high-risk, high-reward dynamic, which is the classic profile of a Question Mark.

The trust's high exposure to volatile commodity prices creates the primary growth market uncertainty. For the fiscal year 2024, oil comprised 72% of total revenues, while gas accounted for the remaining 28%. This heavy reliance on oil means that any significant price movement directly dictates the trust's cash flow generation, which is a major growth constraint for a static asset base.

Distributions plunged in mid-2025 due to lower oil prices, creating a high-volatility, uncertain income stream. Look at the drop in distributable cash flow per unit (DCFU) from $0.95 in 2024 to an estimated $0.82 for 2025. This volatility is stark when you see the royalty income drop from $12.3 million in 2023 to $6.6 million in 2024. The market is pricing this uncertainty in, as evidenced by the annualized yield based on distributions in the first seven months of 2025 being 8.6%, which is high but reflects the risk.

The Trustee is actively using cash flow to build a necessary buffer, which is a non-growth use of capital, but essential for stability. In accordance with Section 3.08 of the Indenture, the Trustee intends to continue withholding $50,000 from distributable funds per month until the cash reserve has reached $1,500,000. As of the third quarter 2024 report, this reserve was already funded at $1,300,000. That means they are targeting to add another $200,000 of retained cash before distributions normalize, consuming capital that could otherwise be returned to you.

The 75% Net Profit Interest (NPI) assets occasionally recover excess costs, which is a small, unpredictable positive offset to the overall cash drain. These assets are structured so that production and development costs are first reduced from the net profits income for those specific properties. Here's a quick look at the structure and a recent recovery event:

• The Trust holds a 90% Net Profit Interest in properties in Texas, Oklahoma, and New Mexico (generally gas-focused).
• The Trust holds a 75% Net Profit Interest in working interest properties in Texas and Oklahoma (predominantly oil-producing).
• XTO Energy advised the Trustee that $6,000, including accrued interest of $34, was fully recovered on properties underlying the Oklahoma Working Interest in November 2025.
• Cumulative excess costs remaining on the Texas Working Interest totaled $5,320,000 as of November 2025 filings.

The recovery of $6,000 is a positive data point, but it's dwarfed by the need to manage the overall price exposure. Finance: draft the projected cash flow impact of a 10% sustained drop in average oil price on the next two distribution cycles by Monday.