Cross Timbers Royalty Trust (CRT): Business Model Canvas [Dec-2025 Updated]

You're probably looking for a straightforward way to get passive income exposure to the volatile oil and gas sector without managing the actual production headaches. The Cross Timbers Royalty Trust (CRT) business model is exactly that: a pure pass-through vehicle that converts static net profits interests into monthly cash distributions for you, the unitholder. Honestly, looking at their Q3 2025 results, where they generated $\mathbf{\$453,318}$ in distributable income, shows this mechanism working in real-time. If you want to see the precise architecture behind this income stream-from its key partnerships to its specific net profits interests-check out the full Business Model Canvas breakdown below.

Cross Timbers Royalty Trust (CRT) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep Cross Timbers Royalty Trust (CRT) running, which is essentially a pass-through vehicle for royalties. The key here is that CRT has virtually no internal operations; it relies entirely on these external entities to function.

XTO Energy Inc. is the engine behind the income flow. They own the underlying properties and handle all the heavy lifting regarding the actual production and cost accounting. Net profits income received by Cross Timbers Royalty Trust is calculated and paid by XTO Energy Inc. based on net proceeds from the underlying properties in the prior month. For the quarter ended September 30, 2025, the net profits income reported was $761,552. This income comes from two main components: the 90% net profits interests (mostly gas from San Juan Basin) and the 75% net profits interests (predominantly oil-producing properties in Texas and Oklahoma) which are reduced by production and development costs. As of the November 17, 2025, distribution announcement, cumulative excess costs remaining on the Texas Working Interest net profits interests totaled $5,320,000, which includes accrued interest of $1,437,000. That's a big number that needs to be recovered before full proceeds flow to the Trust from those specific interests.

Argent Trust Company serves as the sole Trustee, managing the administrative side. They take the payment from XTO Energy Inc. and then calculate and pay the distributions to unitholders within ten business days of the month-end record date. To ensure they can meet their obligations even if net profits income fluctuates, the Trustee maintains an expense reserve currently funded at $1,300,000. This reserve is a critical buffer for administrative costs and other Trust obligations.

The relationship with unitholders is mediated entirely through third parties for transactions and record-keeping. The Trust itself cannot buy or sell units. You must use your broker for trading. The Trust does not maintain unitholder records; that responsibility falls to the broker or the transfer agent. This means if your address changes, you must update it with them, not with the Trustee directly.

Professional service providers are essential for compliance. While specific firms aren't always named in every release, the Trust's filings and operations require external expertise for legal and accounting functions, especially for managing compliance and filing requirements, such as providing the necessary tax information worksheets to unitholders.

Here's a quick view of the financial flow and key figures tied to these partnerships:

Partner Role	Entity/Function	Key Financial Metric/Amount (2025 Data)	Frequency/Context
Net Profits Income Calculation & Payment	XTO Energy Inc.	$761,552 (Net Profits Income for Q3 2025)	Monthly calculation, paid on the last business day of each month
Trustee & Distribution Calculation	Argent Trust Company	$1,300,000 (Current Expense Reserve Funding)	Manages reserve and calculates monthly distributions
Working Interest Cost Recovery	XTO Energy Inc. (Tracking)	$5,320,000 (Cumulative excess costs on Texas WI interests)	Balance subject to recovery before further distribution
Unit Trading & Record Keeping	Brokers / Transfer Agents	N/A (Service Fee Structure)	Handles all unit transactions and unitholder address records

The operational dependencies are clear. You can see the direct financial impact of the underlying property performance flowing through XTO Energy Inc. to the Trustee:

• Net Profits Income is calculated on net proceeds from the prior month.
• Distributions are paid to month-end unitholders of record.
• Excess costs on working interests total $5,320,000 plus interest.
• The Trust relies on brokers for all unitholder record updates.
• Compliance filings depend on professional service providers.

Finance: draft next quarter's cash flow projection based on Q3 2025 NPI by next Tuesday.

Cross Timbers Royalty Trust (CRT) - Canvas Business Model: Key Activities

The primary operational activity for Cross Timbers Royalty Trust (CRT) involves the collection of cash flow derived from its underlying oil and gas net profits interests. Net profits income is calculated and paid by XTO Energy Inc. based on net proceeds received from the underlying properties in the prior month, with the cash received by the Trust on the last business day of each month. This income stream is subject to fluctuations based on sales volumes and commodity prices, and is also impacted by the management of excess costs related to the 75% net profits interests carved from working interests. For instance, as of the November 2025 distribution period, underlying cumulative excess costs remaining on the Texas Working Interest net profits interests totaled \$5,320,000, including accrued interest of \$1,437,000.

The Trust's activity of calculating and declaring monthly cash distributions to unitholders is a direct consequence of receiving the net profits income. The Trustee, Argent Trust Company, declares these distributions to unitholders of record, with payments typically following within ten business days of the record date. You can see the variation in per-unit distributions based on underlying property performance:

• November 2025 Distribution per Unit: \$0.036930.
• September 2025 Distribution per Unit: \$0.031753.
• January 2025 Distribution per Unit: \$0.095045.

Here's a look at the sales volumes that underpin these recent distributions, which directly feed the net profits income collection:

Month	Oil Sales (Bbls)	Gas Sales (Mcf)	Oil Price (per Bbl)	Gas Price (per Mcf)
November 2025	14,000	50,000	\$60.37	\$4.55
September 2025	Not explicitly detailed in the same table format as November	Not explicitly detailed in the same table format as November	Not explicitly detailed in the same table format as November	Not explicitly detailed in the same table format as November
May 2025	13,000	72,000	\$67.18	\$5.80

As of the November 2025 distribution announcement, the Year-to-Date (YTD) total distribution for 2025 was reported as \$0.633769 per unit.

Maintaining the Trust's expense reserve is a critical activity to ensure the Trustee can cover its obligations even if net profits income is temporarily insufficient. The prompt suggests a target of \$1,300,000, but the latest reported figure from the Q2 2025 report (August 28, 2025) indicated the reserve was funded at \$1,150,000. Furthermore, in May 2025, the Trustee was actively building this reserve, withholding \$50,000 monthly with the stated goal of reaching a total reserve of \$1,500,000.

Fulfilling regulatory and tax reporting obligations is handled based on the Trust's structure as a grantor trust, not a partnership. This means the Trust does not issue K-1 forms to unitholders. Instead, cash distributions are reported by the unitholder's broker on a 1099-Misc form. The Trustee generally mails the required annual tax information booklets and yellow worksheets by March 1st, although the IRS deadline is April 1st. The Trust's continued existence is contingent on gross revenues remaining above \$2,000,000 for two successive fiscal years, or avoiding a unitholder vote for termination.

Finance: review the impact of the \$5,320,000 cumulative excess costs on the next two quarterly distribution forecasts by end of month.

Cross Timbers Royalty Trust (CRT) - Canvas Business Model: Key Resources

You're looking at the core assets that drive the Cross Timbers Royalty Trust (CRT), and honestly, it's all about the rights to the cash flow from those specific oil and gas wells. The trust itself has no operations; it's purely a vehicle to collect and distribute net profits income. Its entire existence hinges on the underlying mineral interests it was granted back in 1991.

The primary Key Resources are the two distinct sets of net profits interests (NPIs) located across the energy-rich states of Texas, Oklahoma, and New Mexico. These interests are the only true assets, aside from the cash held for expenses and distributions. The Trustee, which is Argent Trust Company, manages the administration, but the real value is in the ground rights.

The structure of these interests is critical because they are treated differently regarding operational costs. The 90% NPIs are insulated from day-to-day expenses, while the 75% NPIs directly share in the production and development costs, which can create liabilities like the accrued excess costs we see on the books.

Here's a breakdown of the core property interests that form the basis of Cross Timbers Royalty Trust (CRT):

• 90% Net Profits Interests: Royalty and overriding royalty properties across Texas, Oklahoma, and New Mexico.
• 75% Net Profits Interests: Working interest properties located in Texas and Oklahoma.

The 90% NPIs are particularly important for cash flow stability, as most of that income comes from long-lived gas properties in the San Juan Basin of northwestern New Mexico, and these interests are not subject to production or development costs. To be fair, the 75% NPIs, which are heavily weighted toward oil production, are where you see the cost volatility hit the bottom line.

The financial reality of those working interests shows up in the accumulated excess costs that must be recovered before further profits are distributed from those specific properties. For instance, as of the November 2025 distribution announcement, the cumulative excess costs on the Texas Working Interest were substantial.

Interest Component	Location(s)	Net Profits Interest Percentage	Associated Financial Metric (as of late 2025)
Royalty/Overriding Royalty	Texas, Oklahoma, New Mexico	90%	Income generally only varies by sales volume or price.
Working Interest	Texas, Oklahoma	75%	Income reduced by production and development costs.
Texas Working Interest Excess Costs	Texas	N/A	Cumulative excess costs remaining: $5,320,000
Texas Working Interest Accrued Interest	Texas	N/A	Accrued interest on excess costs: $1,437,000

The administrative side is handled by Argent Trust Company, which acts as the Trustee. Since the trust has no operations, the Trustee's key function is administrative-calculating and distributing the monthly net profits income based on reports from XTO Energy Inc., which owns the underlying properties. This administrative function is backed by a specific safeguard: the Trust maintains an expense reserve, which was funded at $1,300,000 as of the third quarter of 2025, to help cover obligations if net profits income fluctuates unexpectedly.

The trust's reliance on the underlying assets is absolute, as shown by the revenue mix in 2024, where oil accounted for 72% of total revenues and gas made up the remaining 28%. This mix directly impacts the cash flow the Trustee has available to distribute.

Cross Timbers Royalty Trust (CRT) - Canvas Business Model: Value Propositions

You're looking at the core appeal of Cross Timbers Royalty Trust (CRT), which boils down to getting energy sector exposure without the operational headaches. This is a pure play on the economics of existing production, which is a distinct value proposition in the energy space.

Passive, high-yield investment vehicle in the energy sector.

The primary draw is the passive nature of the income stream. Cross Timbers Royalty Trust (CRT) has no employees and no business activities other than collecting and distributing net profits income from its interests. Its assets are static, meaning no new properties can be added. The income is derived from two main components: 90% net profits interests carved out of royalty and overriding royalty interests in Texas, Oklahoma, and New Mexico, and 75% net profits interests carved out of working interests in Texas and Oklahoma. For context on valuation, as of late 2025, the trust was trading at a Price-to-Earnings Ratio of 11.5x, which was favorable when compared to the US Oil & Gas industry average of 13.5x. As of July 2025, the market capitalization stood at $57 million.

Monthly cash distributions, providing regular income flow.

This trust is designed for regular income. Distributions are paid Monthly. For instance, the November 2025 cash distribution declared was $0.036930 per unit, payable on December 12, 2025. This consistent payout structure supports its high-yield appeal; based on distributions through the first seven months of 2025, the annualized yield was approximately 8.6%, with the stated annual dividend being $0.74 per share and a yield of 8.63%.

Direct exposure to fluctuating oil and gas commodity prices.

Your return is directly tied to the realized prices and volumes from the underlying properties, which you don't control. The income from the 90% net profits interests, which makes up the bulk of the value, generally only varies due to price or volume changes since those interests are not subject to production or development costs. The commodity exposure looks like this based on the underlying sales data supporting the November 2025 distribution:

Commodity Metric	Current Month (Nov 2025 Distribution Basis)	Prior Month (Oct 2025 Distribution Basis)
Oil Price (per Bbl)	$60.37	$67.13
Gas Price (per Mcf)	$4.55	$4.79
Oil Volumes (Bbls)	14,000	12,000
Gas Volumes (Mcf)	50,000	80,000

To give you a sense of the revenue mix, in 2024, oil accounted for 72% of total revenues, with gas making up the remaining 28%.

Simplified structure as a pass-through grantor trust, not a partnership.

The legal structure is intentionally simple for tax reporting purposes, which is a key differentiator from Master Limited Partnerships (MLPs). The Cross Timbers Royalty Trust (CRT) is treated as a grantor trust for federal income tax purposes. This means you receive a 1099-Misc form from your broker reporting ordinary royalty income, not a K-1, which simplifies your personal tax filing. The trust was established on February 12, 1991. The structure does not have a set end date, but termination can occur under specific conditions:

• If the Trust's gross revenues from the Royalty Properties are less than $2,000,000 for two successive fiscal years.
• A vote of Unitholders.

The Trustee's role is strictly administrative: collect income, pay expenses, and distribute the rest. That's it.

Cross Timbers Royalty Trust (CRT) - Canvas Business Model: Customer Relationships

The relationship with Cross Timbers Royalty Trust (CRT) unitholders is primarily transactional, driven by the monthly payout schedule from the underlying net profits interests.

Transactional relationship with unitholders via monthly distributions.

Cross Timbers Royalty Trust exists to collect and distribute monthly net profits income to its unitholders of beneficial interest, which trade on the New York Stock Exchange under the symbol CRT. The Trust has no employees; all administrative functions are performed by the Trustee, Argent Trust Company. The relationship is defined by the regularity and amount of these cash payments.

Here are key distribution figures relevant to the unitholder relationship as of late 2025:

Distribution Metric	Value/Date
November 2025 Distribution per Unit	$0.036930
November 2025 Payable Date	December 12, 2025
November 2025 Record Date	November 28, 2025
2025 Year-to-Date Total (as of Jan 2025 announcement)	$0.633769
December 2024 Distribution per Unit	$0.062265
Market Capitalization (as of Nov 2025)	$50.28M

The distributions are calculated and paid by XTO Energy based on net proceeds received from the underlying properties in the prior month, with payments made to month-end unitholders of record within ten business days. The Trust's assets are static, meaning no further properties can be added to generate income.

Information provided through the Trust's website and SEC filings.

Unitholders rely on publicly available documentation and the Trust's dedicated website for comprehensive details. Cross Timbers Royalty Trust relies on the Securities and Exchange Commission's EDGAR database for its filings.

Key information channels include:

• The Trust's official website: www.crt-crosstimbers.com.
• SEC filings, such as Form 8-K for distribution announcements and Form 10-Q for quarterly reports.
• Access to tax documents, including Grantor Trust Schedule A and Supplemental Tax Tables, available on the website or from the Trustee.
• Information on underlying oil and gas sales and average prices accompanying distribution announcements.

Distributions from Cross Timbers Royalty Trust are taxable as royalties, not as dividends, for federal income tax purposes.

Direct contact with the Trustee for administrative and tax inquiries.

Since the Trust has no employees, all administrative functions are handled by the Trustee, Argent Trust Company. You can reach them for administrative or tax-related questions using the following contact points:

• Trustee: Argent Trust Company.
• Trustee Phone Number: 855-588-7839.
• Trustee Fax Number: 214-559-7010.
• Trustee Email: trustee@CRT-crosstimbers.com.
• Principal Office Address: 2911 Turtle Creek Blvd, Suite 850, Dallas, Texas 75219.

The Trustee's powers are specified by the terms of the indenture, and they are responsible for collecting net profits income, paying Trust expenses, and distributing the monthly amount to unitholders. Finance: confirm the 2025 YTD distribution total by end of Q4 2025 report date.

Cross Timbers Royalty Trust (CRT) - Canvas Business Model: Channels

You're looking at how Cross Timbers Royalty Trust (CRT) connects its value proposition-monthly royalty distributions-to its unitholders. For a trust like CRT, the channels are almost entirely focused on market access for its units and mandatory, transparent communication.

New York Stock Exchange (NYSE: CRT) for Unit Trading Liquidity

The primary channel for unit liquidity is the New York Stock Exchange, where Cross Timbers Royalty Trust units trade under the ticker CRT. This public listing is the mechanism by which investors can enter or exit their position in the trust's net profits interests.

Here are some key market metrics as of early December 2025:

Metric	Value (as of early Dec 2025)
Exchange Listing	NYSE
Stock Symbol	CRT
Latest Closing Price (Dec 05, 2025)	$8.61
52-Week Trading Range	$7.07 to $13.31
Market Capitalization (Approx.)	$51.06 Million to $52.80 Million
Shares Outstanding Float	6.00 Million units
Average Daily Trading Volume	23,018 units

The trust itself has a lean operational structure, reporting only 1 employee, so all market-facing activities rely on the exchange infrastructure and intermediaries. The dividend yield, which is a key driver for many unitholders, was reported around 5.2% recently.

Brokerage Accounts for Investors to Buy, Sell, and Hold Units

Directly facilitating the transactions on the NYSE are the brokerage accounts. Cross Timbers Royalty Trust units can be purchased through virtually any broker, including major online services. The trust itself does not buy or sell its own units, nor does it offer a Dividend Reinvestment Plan (DRIP); that functionality must be set up through the investor's broker.

The process relies on standard brokerage infrastructure for execution and custody:

• Use of standard brokerage accounts for buying and selling.
• Brokerage platforms handle the custody of the units.
• Investors must arrange any dividend reinvestment via their broker.

Official Trust Website for News Releases and Financial Reports

The official internet website, www.crt-crosstimbers.com, serves as a direct, though secondary, channel for information dissemination, supplementing mandatory regulatory filings. The Trustee, Argent Trust Company, manages the information flow here.

The website provides direct access points for unitholders:

• News Releases section for immediate announcements.
• Links to Annual/Qtrly Reports.
• Access to Cash Distributions schedules.
• Tax Information resources.

For instance, the November 2025 cash distribution news release was furnished via an 8-K filing on November 17, 2025, with a record date of November 28, 2025, information that would also be posted on the site.

SEC Filings (e.g., Form 8-K, 10-Q) for Mandatory Disclosure

Mandatory disclosure is channeled directly through the U.S. Securities and Exchange Commission (SEC) EDGAR database. This is the most formal and legally binding channel for financial and operational transparency. The trustee ensures these are filed on behalf of Cross Timbers Royalty Trust.

Recent mandatory filings demonstrate the cadence of this channel:

Filing Type	Date of Latest Report (2025)	Purpose/Content Example
Form 8-K	November 17, 2025	Announcing monthly cash distribution (Item 2.02)
Form 10-Q	November 13, 2025	Quarterly Earnings Report

These filings provide the detailed financial underpinning, such as the fact that in 2024, oil comprised 72% of total revenues while gas comprised 28%. Finance: draft 13-week cash view by Friday.

Cross Timbers Royalty Trust (CRT) - Canvas Business Model: Customer Segments

You're looking at the core buyers for Cross Timbers Royalty Trust (CRT) units as of late 2025. These aren't the same as buyers for an E&P company; they are looking for passive cash flow from existing assets.

Individual retail investors seeking monthly income and energy exposure.

This group targets the consistent, though volatile, monthly payout structure. They are drawn to the high yield, even if the underlying asset base is static and declining. The trust's market capitalization stood at $57 million as of July 2025. The monthly nature of the income is a key feature, with the December 12, 2025 payment declared at $0.036930 per unit, following a previous payment of 7.52c. The reported annual dividend yield has recently been cited around 8.63% or 8.71%.

Here are some recent financial snapshots that appeal to this income-focused segment:

Metric	Value (Latest Available)	Period/Date Reference
Latest Declared Monthly Distribution (Per Unit)	$0.036930	November 2025 Declaration
Q3 2025 Net Profits Income	$761,552	Quarter Ended September 30, 2025
Q3 2025 Distributable Income (Per Unit)	$0.075553	Quarter Ended September 30, 2025
H1 2025 Total Revenue	USD 3.37 Million	First Half of 2025

Institutional investors and funds focused on high-yield royalty trusts.

While CRT is a micro-cap entity, certain institutions still allocate capital here for yield enhancement or sector exposure. The ownership data for November 2025 shows that Institutional Shareholding was around 4% holding percentage, while Mutual Fund Holding was approximately 0.01%. The trust is classified under the Industry: Investment Trusts/Mutual Funds.

Financially-literate decision-makers comfortable with commodity price volatility.

These investors understand the pass-through nature and the inherent risks tied to the underlying properties. They focus on the structure and the decline rate. The trust holds:

• 90% net profit interest in properties in Texas, Oklahoma, and New Mexico (mostly gas).
• 75% net profit interest in working interest properties in Texas and Oklahoma (predominantly oil).
• The estimated rate of natural production decline for its oil and gas properties is 6%-8% per year.
• The trust is designed to terminate on December 31, 2032, or upon exhaustion of reserves.

These sophisticated buyers note the recent performance swings, such as the 1-Year Dividend Growth (CAGR) being -32.22%, and the Q3 2025 net profits income falling 55 percent compared to Q3 2024. Also, the trust had royalty income of $12.3 million in 2023, which dropped to $6.6 million in 2024.

Cross Timbers Royalty Trust (CRT) - Canvas Business Model: Cost Structure

You're looking at the hard costs Cross Timbers Royalty Trust (CRT) faces just to keep the royalty payments flowing, which is critical since the Trust has no operations of its own; it's purely a pass-through vehicle.

The primary, direct costs that hit the distributable income are tied to the administration of the Trust and the costs associated with the working interest properties. Here's a breakdown of the most recent concrete figures we have for late 2025.

Cost Component	Period/Date	Financial Amount
Trustee's Administrative Expense	Q3 2025	$170,963
Cumulative Excess Costs on Texas Working Interest Properties	As of November 2025	$5,320,000
Accrued Interest on Texas Working Interest Excess Costs	As of November 2025	$1,437,000
Increase in Texas Working Interest Excess Costs (Monthly)	November 2025	$56,000
Decrease in Taxes, Transportation, and Other Costs	Q3 2024 (vs. Q3 2023)	$0.2 million

The structure of these costs reflects the two main components of the Trust's income streams: the 90% net profits interests (which don't bear production/development costs) and the 75% net profits interests (which do, leading to these excess cost situations).

The costs that reduce the net profits income from the working interests, which you need to track closely, fall into these categories:

• Taxes, transportation, and other costs related to underlying production.
• Professional fees for legal, accounting, and regulatory compliance.

For context on the working interest properties, XTO Energy advised the Trustee that the cumulative excess costs remaining on the Texas Working Interest net profits interests total $5,320,000, which includes accrued interest of $1,437,000 as of November 2025. Also, for the Oklahoma Working Interest properties, excess costs of $6,000, including accrued interest of $34, were fully recovered in November 2025.

The expense reserve, which acts as a buffer for the Trustee to pay obligations if net profits income is insufficient, was funded at $1,300,000 as of the Q3 2025 report date.

Finance: review the latest 10-Q filing for Q4 2025 to find the actual professional fees for the full year.

Cross Timbers Royalty Trust (CRT) - Canvas Business Model: Revenue Streams

You're looking at the core way Cross Timbers Royalty Trust (CRT) brings in cash. Honestly, it's quite straightforward because the Trust has no operations; it's purely a pass-through vehicle for royalties. The revenue streams are dictated by the two types of net profits interests it holds in underlying oil and gas properties in Texas, Oklahoma, and New Mexico.

The Trust's income is generated from two main components:

• Net profits income from the 90% royalty interests (less production costs). This stream generally only varies due to changes in sales volumes or prices because it is not subject to production or development costs; most of this income comes from long-lived gas properties in the San Juan Basin.
• Net profits income from the 75% working interests (after production and development costs). This stream is more sensitive as it is reduced by production and development costs associated with the predominantly oil-producing properties in Texas and Oklahoma.

Beyond the core oil and gas proceeds, Cross Timbers Royalty Trust also generates income from its balance sheet holdings. Specifically, interest income earned on the cash held by the Trust, which was reported as $12,729 in Q3 2025. This is a smaller, but still present, component of the total revenue picture.

The ultimate measure of what flows to the unitholders is the distributable income. For the third quarter of 2025, the distributable income for Cross Timbers Royalty Trust was $453,318, which translates to $0.075553 per unit. This figure reflects the net result after all underlying revenues are collected and the Trust's own expenses are accounted for.

Here's a quick look at the key financial data points for the period you are analyzing:

Financial Metric	Amount/Value	Context
Reported Profit (Q3 2025)	$453,000	Reported profit figure, closely aligning with distributable income.
Distributable Income (Q3 2025)	$453,318	Total income available for distribution to unitholders for the quarter.
Distributable Income Per Unit (Q3 2025)	$0.075553	The per-unit amount of the Q3 2025 distribution.
Interest Income on Cash Held (Q3 2025)	$12,729	Income earned on cash reserves held by the Trust.
Reported EPS (Q3 2025)	$0.08	Earnings Per Share reported for the third quarter.

To be defintely clear on the structure of the income collection, remember the Trust's revenue is fundamentally derived from these sources:

• Proceeds from the 90% Net Profits Interests (primarily gas).
• Proceeds from the 75% Net Profits Interests (primarily oil, net of costs).
• Interest Income on uncommitted cash balances.

Finance: draft a comparison table of Q3 2025 distributable income against Q3 2024 by end of next week.