Cross Timbers Royalty Trust was established in 1991 by XTO Energy Inc. to hold a collection of royalty and working interests in oil and natural gas producing properties across the United States. Based in Dallas, Texas, the trust was designed to provide a steady stream of income to unitholders through distributions derived from the sale of oil and gas produced from its underlying properties. The trust itself does not engage in exploration or production activities, but rather collects royalty income from third-party operators who extract hydrocarbons from wells on its behalf.
The trust’s assets consist primarily of producing and overriding royalty interests located in Texas, Oklahoma, and New Mexico—regions known for their long history of hydrocarbon production. These assets include both oil and natural gas properties, with a significant portion concentrated in mature fields where production decline rates are relatively stable. A small share of the trust’s revenue is also derived from working interests, which entitle it to a portion of production after operating costs, creating modest exposure to production expenses but also the potential for higher returns when energy prices are favorable.
Operationally, Cross Timbers Royalty Trust functions as a passive financial entity. It has no employees, and its activities are managed by Simmons Bank, which acts as the trustee. The trustee’s responsibilities include collecting proceeds from the underlying properties, paying applicable administrative costs and taxes, and distributing the remaining income to unitholders on a monthly basis. The trust reports production volumes, realized prices, and other relevant data periodically to maintain transparency, allowing investors to track performance and estimate future distributions based on commodity trends.
Over the years, the trust has gained recognition for its conservative management and consistent payout structure, making it a longstanding fixture among U.S. royalty trusts. While its production base naturally declines over time as wells mature, it continues to generate predictable income due to its diversified mix of oil and gas assets. Cross Timbers Royalty Trust’s enduring appeal lies in its simplicity—offering direct exposure to domestic energy production and price movements without the operational risks or capital expenditures typically associated with traditional exploration and production companies.