Cross Timbers Royalty Trust Announces Third Quarter Financial Results for FY2023
December 10, 2023
☀️Earnings Overview
CROSS ($NYSE:CRT): The company reported total revenue of USD 2.7 million, which was a decrease of 29.8% compared to the same period in the prior year. In addition, net income for the quarter was USD 2.4 million, a 34.5% decline from the previous year.
Market Price
The stock opened at $19.0 and closed at $19.8, representing a 2.9% increase from the prior closing price of 19.2. This marks a successful quarter for CRT, whose share price has seen steady growth throughout the year. CRT is primarily a natural gas and oil company and their financial performance this quarter is reflective of the strength of the oil and gas market. The company attributed this success to their successful operations and cost management strategies, which enabled them to increase their profits despite volatile market conditions.
Looking forward, CRT is optimistic about their future prospects as they continue to explore new opportunities and refine their existing strategies. With their strong financial performance this quarter, they are well positioned to capitalize on future growth opportunities in order to maximize shareholder value. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for CRT. More…
| Total Revenues | Net Income | Net Margin |
| 12.71 | 11.89 | 93.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for CRT. More…
| Operations | Investing | Financing |
| 5.46 | – | -6.05 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for CRT. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.28 | 1.54 | 2.24 |
Key Ratios Snapshot
Some of the financial key ratios for CRT are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 31.6% | 34.6% | 93.1% |
| FCF Margin | ROE | ROA |
| 82.5% | 54.6% | 173.0% |
Analysis
At GoodWhale, we have closely analyzed the fundamentals of CROSS TIMBERS ROYALTY TRUST to come to the following conclusion. According to our Star Chart classification, CROSS TIMBERS ROYALTY TRUST is a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability; in other words, a ‘cheetah’. Investors interested in this type of company may be looking for high growth potential, but need to be aware of the risks involved. In terms of financial health, CROSS TIMBERS ROYALTY TRUST scores well with a score of 9/10. This indicates a strong ability to cover debt obligations and fund future operations. In terms of its financials, we have observed that it has strong assets and dividend payouts, however it is medium in terms of growth and weak in profitability. More…
Peers
The oil and gas industry is a highly competitive field, with many players vying for market share. Cross Timbers Royalty Trust is no exception, with competitors such as Sabine Royalty Trust, VOC Energy Trust, and Pacific Coast Oil Trust all competing for a piece of the pie. As the market changes, these entities must all strive to stay ahead of the competition by providing quality services and products to their customers.
– Sabine Royalty Trust ($NYSE:SBR)
The Sabine Royalty Trust is a publicly-traded trust that owns royalty interests in oil and gas properties located in the United States. It has a market cap of 1.2 billion as of 2022, making it one of the larger trusts in this sector. The trust has a return on equity of 628.33%, indicating that the trust is performing well and is able to generate a healthy return for its shareholders. The trust primarily invests in royalties from oil and natural gas production, which it collects from its properties and distributes to its shareholders. This provides a steady source of income for investors and provides them with a reliable return on their investments.
– VOC Energy Trust ($NYSE:VOC)
VOC Energy Trust is a publicly traded company that is primarily engaged in the acquisition and exploitation of oil and natural gas properties in the United States. With a market cap of 158.44M, VOC Energy Trust is one of the larger publicly traded companies in the sector. The company has a Return on Equity (ROE) of 4.06%, which is below the industry average. This indicates that the company may be using its equity resources more efficiently and effectively than its peers. VOC Energy Trust’s focus on cost-effective exploitation and production of oil and gas properties has enabled it to maintain a strong financial position and provide returns for its shareholders.
– Pacific Coast Oil Trust ($OTCPK:ROYTL)
Pacific Coast Oil Trust is an independent energy trust focused on providing stable, long-term cash flows to its shareholders through the acquisition and development of crude oil and natural gas assets. The company has a market cap of 3.86M as of 2022, which is relatively small compared to other energy trusts. Despite its small size, the company has been able to generate a respectable Return on Equity of 4.0%, indicating that it is profitable and able to generate returns for its shareholders.
Summary
The third quarter financial results of CROSS TIMBERS ROYALTY TRUST for FY2023 ending September 30 2023 were reported on November 13 2023. Total revenue for the quarter declined by 29.8% to USD 2.7 million compared to the same period in the previous year. Net income also decreased by 34.5% to USD 2.4 million. This indicates a weak performance for the quarter and investors should be cautious when considering investing in this trust.
Additionally, they should take into account the economic conditions and industry trends that have affected the trust’s performance before making decisions.
