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UNITED STATES SECURITIES AND EXCHANGE
COMMISSION Washington, D.C. 20549   Form 10-K   ☒ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the
fiscal year ended December 31, 2023 OR ☐TRANSITION REPORT PURSUANT TO SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from  to . Commission File No. 1-10982   Cross Timbers Royalty Trust (Exact name of
registrant as specified in its charter)    Texas

75-6415930(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification No.)c/o Corporate Trustee:Argent Trust Company3838 Oak Lawn Ave, Suite 1720
Dallas, Texas 75219-4518

75219(Address of principal executive offices)

(Zip Code) Registrants telephone number, including area code (at the office of the Corporate Trustee): (855) 588-7839 Securities registered pursuant to Section 12(b) of the Act:  Title of each class

Trading symbol

Name of each exchange on which
registeredUnits of Beneficial Interest

CRT

New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. YES ☐  NO ☒ Indicate by check mark if the
registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the
Act. YES ☐  NO ☒ Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES ☒  NO ☐ Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to
be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such
files). YES ☐  NO ☐ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a
smaller reporting company, or an emerging growth company. See the definitions of large accelerated filer, accelerated filer, smaller reporting company, and emerging growth company in Rule 12b-2 of the Exchange Act.  Large accelerated filer ☐

Accelerated filer

☐Non-accelerated filer ☒

Smaller reporting company

☒Emerging growth company

☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ Indicate by check mark whether the registrant has filed a report on and attestation to its managements assessment of the effectiveness of its internal control over
financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐ If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing
reflect the correction of an error to previously issued financial statements. ☐ Indicate by check mark
whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrants executive officers during the relevant recovery period pursuant to §240.10D-1(b).☐ Indicate by check mark whether the registrant is
a shell company (as defined in Rule 12b-2 of the Act). YES ☐  NO ☒ The aggregate market value of units of beneficial interest held by non-affiliates of the registrant at June 30, 2023
(the last business day of the registrants most recently completed second fiscal quarter) was approximately $132.2 million. The number of units of
beneficial interest outstanding as of March 15, 2024, was 6,000,000.




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CROSS TIMBERS ROYALTY TRUST 2023 ANNUAL REPORT ON FORM 10-K TABLE OF CONTENTS  PageGlossary of Terms


1Part IItem 1.

Business


2Item 1A.

Risk Factors


4Item 1B.

Unresolved Staff Comments


9Item 1C.

Cybersecurity


9Item 2.

Properties


10Item 3.

Legal Proceedings


19Item 4.

Mine Safety Disclosures


19Part IIItem 5.

Market for Units of the Trust, Related Unitholder Matters and Trust Purchases of Units


19Item 6.

[Reserved]


20Item 7.

Trustees Discussion and Analysis of Financial Condition and Results of Operations


21Item 7A.

Quantitative and Qualitative Disclosures About Market Risk


27Item 8.

Financial Statements and Supplementary Data


27Item 9.

Changes in and Disagreements with Accountants on Accounting and Financial
Disclosure


39Item 9A.

Controls and Procedures


39Item 9B.

Other Information


39Item 9C.

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections


39Part IIIItem 10.

Directors, Executive Officers and Corporate Governance


40Item 11.

Executive Compensation


40Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Unitholder Matters


40Item 13.

Certain Relationships and Related Transactions, and Director
Independence


40Item 14.

Principal Accountant Fees and Services


41Part IVItem 15.

Exhibits and Financial Statement Schedules


42Signatures




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Glossary of Terms The following is a glossary of certain defined terms used in this Annual Report on Form 10-K. GLOSSARY  Bbl
Barrel (of oil)  Bcf
Billion cubic feet (of natural gas)  BOE
Barrel of oil equivalent  gross acres or gross wells
The total acres or wells, as the case may be, in which a working interest is owned  Mcf
Thousand cubic feet (of natural gas)  MMBtu
One million British Thermal Units, a common energy measurement  net acres or net wells
The sum of the fractional working interests owned in gross acres or wells, as the case may be  net proceeds
Gross proceeds received by XTO Energy from sale of production from the underlying properties, less applicable costs, as defined in the net profits interest conveyances  net profits income
Net proceeds multiplied by the applicable net profits percentage of 75% or 90%, which is paid to the Trust by XTO Energy. Net profits income is referred to as royalty income for income tax purposes.  net profits interest
An interest in an oil and gas property measured by net profits from the sale of production, rather than a specific portion of production. The following defined net profits interests were conveyed to the Trust from the underlying properties:  90% net profits interestsinterests that entitle the Trust to receive 90% of the net proceeds from the underlying properties that are substantially all royalty or overriding royalty interests in Texas,
Oklahoma and New Mexico  75% net profits interestsinterests that entitle the Trust to receive 75% of the net proceeds from the underlying properties that are working interests in Texas and Oklahoma  royalty interest (and overriding royalty interest)
A non-operating interest in an oil and gas property that provides the owner a specified share of production without any production expense or development costs  underlying properties
XTO Energys interest in certain oil and gas properties from which the net profits interests were conveyed. The underlying properties include royalty and overriding royalty interests in producing and nonproducing properties in Texas,
Oklahoma and New Mexico, and working interests in producing properties located in Texas and Oklahoma.  working interest
An operating interest in an oil and gas property that provides the owner a specified share of production that is subject to all production expense and development costs  1




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PART I  ITEM 1.
BUSINESS Cross Timbers Royalty Trust (the Trust) is an express trust created under the laws of Texas pursuant to the Cross Timbers Royalty Trust
Indenture entered into on February 12, 1991 between predecessors of XTO Energy Inc. (formerly known as Cross Timbers Oil Company and, hereafter, XTO Energy), as grantors, and NCNB Texas National Bank, as Trustee. The current trustee
of the Trust is Argent Trust Company, a Tennessee chartered trust company (Argent). Effective December 30, 2022, Simmons Bank resigned as trustee, and Argent was appointed as the successor trustee. The defined term Trustee as used herein shall refer to Simmons Bank for periods from February 20, 2018, through December 29, 2022,
and shall refer to Argent for periods on and after December 30, 2022. The principal office of the Trust is 3838 Oak Lawn Ave, Suite 1720,
Dallas, Texas 75219. The telephone number of the Trust is 1-855-588-7839. The Trusts internet website is www.crt-crosstimbers.com. We make available free of charge, through our website, our Annual Report on Form 10-K, quarterly reports on Form
10-Q, current reports on Form 8-K and all amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934.
These reports are accessible through our internet website as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities and Exchange Commission. Information on our website is not incorporated
into this report. On February 12, 1991, the predecessors of XTO Energy conveyed defined net profits interests to the Trust under five separate
conveyances:  1.
one in each of the states of Texas, Oklahoma and New Mexico, to convey a 90% defined net profits interest carved out of
substantially all royalty and overriding royalty interests owned by the predecessors in those states, and  2.
one in each of the states of Texas and Oklahoma, to convey a 75% defined net profits interest carved out of specific
working interests owned by the predecessors in those states. The conveyance of these net profits interests was effective for
production from October 1, 1990. The net profits interests and the underlying properties are further described under Item 2. Properties. In exchange for the net profits interests conveyed to the Trust, the predecessors of XTO Energy received 6,000,000 units of beneficial interest of the
Trust. Predecessors of XTO Energy distributed units to their owners in February 1991 and November 1992, and in February 1992, sold units in the Trusts initial public offering. Units are listed and traded on the New York Stock Exchange under
the symbol CRT. XTO Energy currently is not a unitholder of the Trust. On June 25, 2010, XTO Energy became a wholly owned
subsidiary of Exxon Mobil Corporation. Under the terms of each of the five conveyances, the Trust receives net profits income from the net profits
interests generally on the last business day of each month. Net profits income is determined by XTO Energy by multiplying the net profit percentage (90% or 75%) times net proceeds from the underlying properties for each conveyance during the
previous month. Net proceeds are the gross proceeds received from the sale of production, less production costs, as defined in the conveyances. For the 90% net profits interests and the 75% net profits interests, production costs
generally include applicable property taxes, transportation, marketing and other charges. For the 75% net profits interests, production costs also include capital and operating costs paid (e.g., drilling, production and other direct costs of owning
and operating the property), monthly overhead charged by operators of the underlying properties, and a monthly overhead XTO Energy deducts as reimbursement for costs associated with monitoring these interests. If production costs exceed gross
proceeds for any conveyance, this excess is carried forward to future monthly computations of net proceeds until the excess costs (plus interest accrued as specified in the conveyances) are completely recovered. Excess production costs and related
accrued interest from one conveyance cannot be used to reduce net proceeds from any other conveyance. For further information on excess costs, see Note 7 to Financial Statements under Item 8. Financial Statements and Supplementary Data.  2




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The Trust is not liable for any production costs or liabilities attributable to the underlying
properties. If at any time the Trust receives net profits income in excess of the amount due, the Trust is not obligated to return such overpayment, but future net profits income payable to the Trust will be reduced until the overpayment, plus
interest at the prime rate, is recovered. As a working interest owner, XTO Energy can generally decline participation in any operation and allow
consenting parties to conduct such operations, as provided under the operating agreements. XTO Energy also can assign, sell, or otherwise transfer its interest in the underlying properties, subject to the net profits interests, or can abandon an
underlying property that is a working interest if it is incapable of producing in paying quantities, as determined by XTO Energy. To the extent
allowed, XTO Energy is responsible for marketing its production from the underlying properties under existing sales contracts or new arrangements on the best terms reasonably obtainable in the circumstances. Net profits income received by the Trust on or before the last business day of the month is generally attributable to oil production two months prior
and gas production three months prior. The monthly distribution amount to unitholders is determined by: Adding - 1.
net profits income received; 2.
estimated interest income to be received on the monthly distribution amount, including an adjustment for the difference
between the estimated and actual interest received for the prior monthly distribution amount; 3.
cash available as a result of reduction of cash reserves; and 4.
other cash receipts; then Subtracting - 1.
liabilities paid; and 2.
the reduction in cash available due to establishment of or increase in any cash reserve. The monthly distribution amount is distributed to unitholders of record within ten business days after the monthly record date. The monthly record date
is generally the last business day of the month. The Trustee calculates the monthly distribution amount and announces the distribution per unit at least ten days prior to the monthly record date. The Trustee may establish cash reserves for contingencies. Cash held for such reserves, as well as for pending payment of the monthly distribution
amount, may be invested in federal obligations or certificates of deposit of major banks. The Trustees function is to collect the net profits
income from the net profits interests, to pay all Trust expenses, and to pay the monthly distribution amount to unitholders. The Trustees powers are specified by the terms of the Trust indenture. The Trust cannot engage in any business
activity or acquire any assets other than the net profits interests and specific short-term cash investments. The Trust has no employees since all administrative functions are performed by the Trustee. Approximately 57 percent of the net profits income received by the Trust during 2023 was attributable to natural gas, as well as 53 percent of
the Trusts estimated future net cash flows from proved reserves at December 31, 2023 (based on estimated future net cash flows using 12-month average oil and gas prices, based on the first-day-of-the-month price for each month in the period). There is generally a greater demand
for gas during the winter. Otherwise, Trust income is not subject to seasonal factors, nor dependent upon patents, licenses, franchises, or concessions. The Trust conducts no research activities. The oil and gas industry is highly competitive in all its phases. Operators of the properties in which the Trust holds interests encounter competition
from other oil and gas companies and from individual producers and operators. Oil and natural gas are commodities, for which market prices are determined by external supply and demand factors. Current market conditions are not necessarily indicative
of future conditions.  3




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ITEM 1A.
RISK FACTORS The following factors could cause actual results to differ materially from those contained in forward-looking statements made in this report and
presented elsewhere by the Trustee from time to time. Such factors may have a material adverse effect upon the Trusts financial condition, distributable income and changes in trust corpus. The following discussion of risk factors should be read in conjunction with the financial statements and related notes included under Item 8.
Financial Statements and Supplementary Data. Because of these and other factors, past financial performance should not be considered an indication of future performance. The market price for the Trust units may not reflect the value of the net profits interests held by the Trust. The public trading price for the Trust units tends to be tied to the recent and expected levels of cash distributions on the Trust units. The amounts
available for distribution by the Trust vary in response to numerous factors outside the control of the Trust or XTO Energy, including prevailing prices for oil and natural gas produced from the underlying properties. The market price of the Trust
units is not necessarily indicative of the value that the Trust would realize if the net profits interests were sold to a third-party buyer. In addition, such market price is not necessarily reflective of the fact that, since the assets of the Trust
are depleting assets, a portion of each cash distribution paid on the Trust units should be considered by investors as a return of capital, with the remainder being considered as a return on investment. There is no guarantee that distributions made
to a unitholder over the life of these depleting assets will equal or exceed the purchase price paid by the unitholder. Current and future oil and natural
gas prices fluctuate due to a number of uncontrollable factors, and any decline will adversely affect the net proceeds payable to the Trust and Trust distributions. The Trusts monthly cash distributions are highly dependent upon the prices realized from the sale of natural gas and oil. Oil and natural gas
prices can fluctuate widely on a month-to-month basis in response to a variety of factors that are beyond the control of the Trust and XTO Energy. Factors that
contribute to price fluctuations include instability in oil-producing regions, worldwide economic conditions, weather conditions, trade barriers, political instability, public health concerns, the supply of
domestic and foreign oil, natural gas and natural gas liquids, consumer demand, the price and availability of alternative fuels, the proximity to, and capacity of, transportation facilities and the effect of worldwide energy conservation measures.
Moreover, government regulations, such as regulation of natural gas transportation and price controls, environmental regulations, production restrictions, or trade barriers, can affect product prices. Oil and natural gas prices have fluctuated
wildly over the recent past and may vary significantly from period to period. Further, a significant decline in current oil or natural gas prices or lower anticipated long-term prices could have a material adverse effect on the amount of oil and
natural gas that is economic to produce, Trust net profits (and therefore cash available for distribution to unitholders) and proved reserves attributable to the Trusts interests. Adjustments impacting volume or value could also impact the
reported natural gas and oil prices. The volatility of energy prices reduces the predictability of future cash distributions to Trust unitholders. Higher
production expense and/or development costs, without concurrent increases in revenue, will directly decrease the net proceeds payable to the Trust from the properties underlying the 75% net profits interests. Production expense and development costs are deducted in the calculation of the Trusts share of net proceeds from properties underlying the 75% net
profits interests. Accordingly, higher or lower production expense and development costs, without concurrent changes in revenue, will directly decrease or increase the amount received by the Trust for its 75% net profits interests. If development
costs and production expense for properties underlying the 75% net profits in a particular state exceed the production proceeds from the properties (as was the case with respect to the properties underlying the Texas working interests for all of
2022 and 2023 and with respect to the properties underlying the Oklahoma working interests for the 2022 distribution months of February, March, October, November and December and the 2023 distribution months of January through June), the Trust will
not receive net profits income for those properties until future net proceeds from production in that state exceed the total of the excess costs plus accrued interest during the deficit period. Development activities may not generate sufficient
additional revenue to repay the costs.  4




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Government action, policies or regulations designed to discourage production, reduce demand for, or promote
alternatives to oil and natural gas could impact the price of oil and natural gas produced on the properties underlying the Trusts net profits interests, directly as intended or through unintended consequences. Governments around the world are considering actions intended to reduce greenhouse gas emissions by decreasing both the supply of and the demand for oil
and natural gas products or promote alternatives. These include the adoption of cap-and-trade regimes, carbon taxes, trade tariffs, minimum renewable usage requirements,
restrictive permitting, increased mileage and other efficiency standards, mandates for sales of electric vehicles, mandates for use of specific fuels or technologies, and other incentives or mandates designed to support transitioning to
lower-emission energy sources. Political and other actors and their agents also increasingly seek to advance climate change objectives indirectly, such as by seeking to reduce the availability or increase the cost of financing and investment in the
oil and gas sector. Depending on how policies are formulated and applied, such policies could impact the ability and costs of the operators of the properties underlying the Trusts net profits interests to supply products, demand for their
products, or the competitiveness of hydrocarbon-based products, which in turn, could reduce net proceeds to the Trust. Any policy that increases the costs for operators of the properties underlying the net profits interests or lower market prices
could have a material impact on the distributable income of the Trust. War, terrorism, geopolitical hostilities, and other military actions or political
instability could adversely affect Trust distributions or the market price of the Trust units. There are a number of national and
international events that could cause instability in global financial and energy markets. War, terrorist attacks and the threat of war or terrorist attacks, whether domestic or foreign, as well as other military or similar actions taken in response,
impact the demand for and price of oil and natural gas in unpredictable ways, including increasing volatility in pricing. Actual or threatened acts of war, terrorism and other geopolitical hostilities could adversely affect Trust distributions or
the market price of the Trust units in unpredictable ways, including through the disruption of fuel supplies and markets, increased volatility in oil and natural gas prices, or the possibility that the infrastructure on which the operators of the
underlying properties rely could be a direct target or an indirect casualty of such an event. Proved reserve estimates depend on many assumptions that may
turn out to be inaccurate. Any material inaccuracies in reserve estimates or underlying assumptions could cause the quantities and net present value of the reserves to be overstated. Estimating proved oil and gas reserves is inherently uncertain. Petroleum engineers consider many factors and make assumptions in estimating reserves and
future net cash flows. Those factors and assumptions include historical production from the area compared with production rates from similar producing areas, the effects of governmental regulation, assumptions about future commodity prices,
production expense and development costs, taxes and capital expenditures, the availability of enhanced recovery techniques and relationships with landowners, working interest partners, pipeline companies and others. Lower oil and gas prices
generally cause lower estimates of proved reserves. Ultimately, actual production, revenues and expenditures for the underlying properties will vary from estimates and those variances could be material. Because the Trust owns net profits interests,
it does not own a specific percentage of the oil and gas reserves. Estimated proved reserves for the net profits interests are based on estimates of reserves for the underlying properties and an allocation method that considers estimated future net
proceeds and oil and gas prices. Because Trust reserve quantities are determined using an allocation formula, increases or decreases in oil and gas prices can significantly affect estimated reserves of the net profits interests. Operational risks and hazards associated with the development and operations of the underlying properties may decrease Trust distributions. There are operational risks and hazards associated with the production and transportation of oil and natural gas, including without limitation natural
disasters, blowouts, explosions, fires, leakage of oil or natural gas, releases of other hazardous materials, mechanical failures, cratering, and pollution. Any of these or similar occurrences could result in the  5




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interruption or cessation of operations, personal injury or loss of life, property damage, damage to productive formations or equipment, damage to the environment or natural resources, or cleanup
obligations. The operation of oil and gas properties is also subject to various laws and regulations. Non-compliance with such laws and regulations could subject the operator to additional costs, sanctions or
liabilities. The uninsured costs resulting from any of the above or similar occurrences could be deducted as a production expense or development cost in calculating the net proceeds payable to the Trust from properties underlying the 75% net profits
interests, and would therefore reduce Trust distributions by the amount of such uninsured costs. The Trust may be subject to attempted cybersecurity
disruptions from a variety of sources including state-sponsored actors. XTO Energys defensive preparedness includes multi-layered
technological capabilities designed to prevent and detect cybersecurity disruptions; non-technological measures such as threat information sharing with governmental and industry groups; internal training and
awareness campaigns including routine testing of employee awareness and business preparedness for response and recovery. The Trustee also maintains robust cybersecurity protocols including, but not limited to, technological capabilities that prevent
and detect disruptions; computer workstations and programs protected with passwords and passphrases, as well as employee training throughout the year on banking regulations and cybersecurity followed up by testing of that knowledge. Other, non-technical protocols include securing of documents and work areas that could contain personal, non-public information. If the measures taken to protect against
cybersecurity disruptions prove to be insufficient or if proprietary data is otherwise not protected, XTO Energy, the Trustee or customers, employees, or third parties could be adversely affected. The Trust has limited ability to influence third
parties, including our partners, suppliers, and service providers (including providers of cloud-hosting services for our data or applications), to implement strong cybersecurity controls and is exposed to potential harm from cybersecurity events
that may affect their operations. Cybersecurity disruptions could cause physical harm to people or the environment; damage or destroy assets; compromise business systems; result in proprietary information being altered, lost, or stolen; result in
employee, customer, or third-party information being compromised; or otherwise disrupt our business operations. We could incur significant costs to remedy the effects of a major cybersecurity disruption in addition to costs in connection with
resulting regulatory actions, litigation, or reputational harm. Future net profits may be subject to risks relating to the creditworthiness of third parties. The Trust does not lend money and has limited ability to borrow money, which the Trustee believes limits the Trusts risk from exposure
to credit markets. The Trusts future net profits, however, may be subject to risks relating to the creditworthiness of the operators of the underlying properties and other purchasers of crude oil and natural gas produced from the underlying
properties. This creditworthiness may be impacted by the price of crude oil and natural gas. Trust unitholders and the Trustee have no influence over the
operations on, or future development of, the underlying properties. Because XTO Energy does not operate most of the underlying properties,
it is unable to significantly influence the operations or future development of the underlying properties. Neither the Trustee nor the Trust unitholders can influence or control the operation or future development of the underlying properties. The
failure of an operator to conduct its operations or discharge its obligations in a proper manner could have an adverse effect on the net proceeds payable to the Trust. Although XTO Energy and the other operators of the underlying properties must
adhere to the standard of a prudent operator, they are under no obligation to continue operating the properties. Neither the Trustee nor Trust unitholders have the right to replace an operator.  6




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The assets of the Trust represent interests in depleting assets and, if XTO Energy or any other operators
developing the underlying properties do not perform additional successful development projects, the assets may deplete faster than expected. Eventually, the assets of the Trust will cease to produce in commercial quantities and the Trust will cease
to receive proceeds from such assets. The net proceeds payable to the Trust are derived from the sale of hydrocarbons from depleting assets.
Future maintenance and development projects on the underlying properties will affect the quantity of proved reserves and can offset the reduction in the depletion of proved reserves. The timing and size of these projects will depend on the market
prices of oil and natural gas. If the operator(s) of the properties do not implement additional maintenance and development projects, the future rate of production decline of proved reserves may be higher than the rate currently expected by the
Trust. Because the net proceeds payable to the Trust are derived from the sale of hydrocarbons from depleting assets, the portion of distributions to unitholders attributable to depletion may be considered a return on capital as opposed to a return
on investment. Distributions that are a return of capital will ultimately diminish the depletion tax benefits available to the unitholders, which could reduce the market value of the units over time. Eventually, the properties underlying the
Trusts net profits interests will cease to produce in commercial quantities and the Trust will, therefore, cease to receive any net proceeds therefrom. XTO Energy may transfer its interest in the underlying properties without the consent of the Trust or the Trust unitholders. XTO Energy may at any time transfer all or part of its interest in the underlying properties to another party. Neither the Trust nor the Trust
unitholders are entitled to vote on any transfer of the properties underlying the Trusts net profits interests, and the Trust will not receive any proceeds of any such transfer. Following any transfer, the transferred property will continue to
be subject to the net profits interests of the Trust, but the calculation, reporting and remitting of net proceeds to the Trust will be the responsibility of the transferee. XTO Energy or any other operator of any underlying property may abandon the property, thereby terminating the related net profits interest payable to the Trust. XTO Energy or any other operator of the underlying properties, or any transferee thereof, may abandon any well or property without the
consent of the Trust or the Trust unitholders if they reasonably believe that the well or property can no longer produce in commercially economic quantities. This could result in the termination of the net profits interest relating to the abandoned
well or property. The net profits interests can be sold and the Trust would be terminated. The Trust will also be terminated if it fails to generate
sufficient gross revenues. The Trust may sell the net profits interests if the holders of 80 percent or more of the outstanding Trust units approve the
sale or vote to terminate the Trust. The Trust will terminate if it fails to generate gross revenues from the underlying properties of at least $1,000,000 per year over any successive two-year period.
Sale of all of the net profits interests will terminate the Trust. The net proceeds of any sale must be for cash with the proceeds less any Trust administrative costs promptly distributed to the Trust unitholders. The sale of the remaining net profits interests and the termination of the Trust will be taxable events to the Trust unitholders. Generally, Trust
unitholders will realize gain or loss equal to the difference between the amount realized on the sale and termination of the Trust and their adjusted basis in such units. Gain or loss realized by a Trust unitholder who is not a dealer with respect
to such units and who has a holding period for the units of more than one year will be treated as long-term capital gain or loss except to the extent of any depletion recapture amount, which must be treated as ordinary income. Other federal and
state tax issues concerning the Trust are discussed under Item 2 and Note 4 to the Trusts financial statements, which are included herein. Trust unitholders should consult their own tax advisor regarding all Trust tax compliance matters,
including federal and state tax implications concerning the sale of the net profits interests and the termination of the Trust.  7




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Trust unitholders have limited voting rights and have limited ability to enforce the Trusts rights against
XTO Energy or any other operator of the underlying properties. The voting rights of a Trust unitholder are more limited than those of
stockholders of most public corporations. For example, there is no requirement for annual meetings of Trust unitholders or for an annual or other periodic re-election of the Trustee. Additionally, Trust
unitholders have no voting rights in XTO Energy or Exxon Mobil Corporation. The Trust indenture and related trust law permit the Trustee and the
Trust to sue XTO Energy or any other operator of the underlying properties to compel them to fulfill the terms of the conveyance of the net profits interests. If the Trustee does not take appropriate action to enforce provisions of the conveyance,
the recourse of the Trust unitholders would likely be limited to bringing a lawsuit against the Trustee to compel the Trustee to take specified actions. Trust unitholders probably would not be able to sue XTO Energy or any other operator of the
underlying properties. Financial information of the Trust is not prepared in accordance with U.S. GAAP. The financial statements of the Trust are prepared on a modified cash basis of accounting, which is a comprehensive basis of accounting other than U.S.
generally accepted accounting principles (U.S. GAAP). Although this basis of accounting is permitted for royalty trusts by the Securities and Exchange Commission, the financial statements of the Trust differ from U.S. GAAP financial
statements because net profits income is not accrued in the month of production, expenses are not recognized when incurred and cash reserves may be established for certain contingencies that would not be recorded in U.S. GAAP financial statements. The limited liability of Trust unitholders is uncertain. The Trust unitholders are not protected from the liabilities of the Trust to the same extent that a shareholder would be protected from a
corporations liabilities. The structure of the Trust does not include the interposition of a limited liability entity such as a corporation or limited partnership which would provide further limited liability protection to Trust unitholders.
While the Trustee is liable for any excess liabilities incurred if the Trustee fails to ensure that such liabilities are to be satisfied only out of Trust assets, under the laws of Texas, which are unsettled on this point, a unitholder may be
jointly and severally liable for any liability of the Trust if the satisfaction of such liability was not contractually limited to the assets of the Trust and the assets of the Trust and the Trustee are not adequate to satisfy such liability. As a
result, Trust unitholders may be exposed to personal liability. The Trust, however, is not liable for production costs or other liabilities of the underlying properties. Drilling oil and natural gas wells is a high-risk activity and subjects the Trust to a variety of factors that it cannot control. Drilling oil and natural gas wells involves numerous risks, including the risk that commercially productive oil and natural gas reservoirs are not
encountered. The presence of unanticipated pressures or irregularities in formations, miscalculations or accidents may cause drilling activities to be unsuccessful. In addition, there is often uncertainty as to the future cost or timing of drilling,
completing and operating wells. Further, development activities may be curtailed, delayed or canceled as a result of a variety of factors, including:  1.
reduced oil or natural gas prices; 2.
unexpected drilling conditions; 3.
title problems; 4.
restricted access to land for drilling or laying pipeline; 5.
pressure or irregularities in formations; 6.
equipment failures or accidents; 7.
adverse weather conditions, natural disasters, or public health events; and 8.
costs of, or shortages or delays in the availability of, drilling rigs, labor, tubular materials, and equipment. While these risks do not expose the Trust to liabilities of the drilling contractor or operator of the well, they can reduce net
proceeds payable to the Trust and Trust distributions by decreasing oil and gas revenues or increasing  8




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##### Table of Contents

production expense or development costs from the underlying properties. Furthermore, these risks may cause the costs of development activities on properties underlying the 75% net profits
interests to exceed the revenues therefrom, thereby reducing net proceeds payable to the Trust and Trust distributions. The underlying properties are subject
to complex federal, state and local laws and regulations that could adversely affect net proceeds payable to the Trust and Trust distributions. Extensive federal, state and local regulation of the oil and natural gas industry significantly affects operations on the underlying properties. In
particular, oil and natural gas development and production are subject to stringent environmental regulations. These regulations have increased the costs of planning, designing, drilling, installing, operating and abandoning oil and natural gas
wells and other related facilities, which costs could reduce net proceeds payable to the Trust and Trust distributions. These regulations may become more demanding in the future. These regulations can often be changed by administrative agencies
without formal legislation, resulting in additional costs that can impact distributions. See Regulation in Item 2. Properties, and Greenhouse Gas Emissions and Climate Change Regulations in Item 7. Trustees
Discussion and Analysis of Financial Condition and Results of Operations. Cash held by the Trustee is not insured by the Federal Deposit Insurance
Corporation. Currently, cash held by the Trust reserved for the payment of accrued liabilities and estimated future expenses and
distributions to unitholders is typically held in a treasury fund that under normal market conditions invests exclusively in U.S. Treasury obligations. Although the funds underlying investments are obligations of the U.S. government, the fund
itself is not insured by the Federal Deposit Insurance Corporation. In the event that the fund becomes insolvent, the Trustee may be unable to recover any or all such cash from the insolvent fund. Any loss of such cash may have a material adverse
effect on the Trusts cash balances and any distributions to unitholders. The tax treatment of an investment in Trust units could be affected by recent
and potential legislative changes, possibly on a retroactive basis. U.S. federal tax reform legislation informally known as the Tax Cuts and
Jobs Act (TCJA) was enacted December 22, 2017, and made significant changes to the federal income tax rules applicable to both individuals and entities, including changes to the effective tax rate on a Trust unitholders allocable share of
certain income from the Trust. The TCJA is complex and Trust unitholders should consult their tax advisor regarding the TCJA and its effect on an investment in Trust units. In addition, the current administration has generally proposed repealing
fossil fuel tax subsidies, which could impact certain tax benefits available to Trust unitholders. Any modification to the U.S. federal income tax
laws or interpretations thereof may be applied retroactively and could adversely affect our business, financial condition or results of operations. The Trust is unable to predict whether any changes or other proposals will ultimately be enacted, or
whether any adverse interpretations will be used. Any such changes or interpretations could negatively impact the value of an investment in the Trust units.  ITEM 1B.
UNRESOLVED STAFF COMMENTS As of December 31, 2023, the Trust did not have any unresolved Securities and Exchange Commission staff comments.  ITEM 1C.
CYBERSECURITY The Trust does not have a board of directors; therefore, the Trustee is responsible for oversight of the Trusts risks from cybersecurity threats.
The Trustee has dedicated personnel that are responsible for assessing and managing the Trusts cyber risk management program, informing senior management of the Trustee regarding the prevention, detection, mitigation, and remediation of
cybersecurity incidents and supervising such efforts. The Trustees information technology team has decades of experience selecting, deploying, and operating cybersecurity technologies, initiatives, and processes, and relies on threat
intelligence as well as other information obtained from governmental, public or private sources,  9




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##### Table of Contents

including external consultants engaged by the Trustee to monitor the prevention, detection, mitigation, and remediation of cybersecurity incidents. External partners are a key part of the
Trustees cybersecurity protocols and policies. The Trustee works with leading firms in the cybersecurity industry, leveraging their technology and expertise to monitor and maintain the performance and effectiveness of products and services
that are used by the Trustee. The Trustee maintains a cyber risk management program designed to identify, assess, manage, mitigate, and respond to
cybersecurity threats, which processes are integrated into the Trustees overall risk management process. The Trustee maintains robust cybersecurity protocols including, but not limited to technological capabilities that prevent and detect
disruptions; computer workstations and programs protected with passwords and passphrases, as well as employee training throughout the year on financial regulations and cybersecurity followed up by testing of that knowledge. The protocols are based
on recognized best practices and standards for cybersecurity and information technology. The Trustee has an annual assessment, performed by a third-party vendor, of the Trustees cyber risk management program. Other, non-technical protocols include securing of documents and work areas that could contain personal, non-public information and independent verification of information changes by outside vendors. The Trust faces
risks from cybersecurity threats that could have a material adverse effect on its business, financial condition, results of operations, cash flows or reputation. The Trustee has experienced, and will continue to experience, cyber incidents in the
normal course of its business. However, prior cybersecurity incidents have not had a material adverse effect on the Trusts business, financial condition, results of operations, or cash flows. See Item 1A. Risk FactorsThe Trust may be
subject to attempted cybersecurity disruptions from a variety of sources including state-sponsored actors.  ITEM 2.
PROPERTIES The net profits interests are the principal asset of the Trust. The Trustee cannot acquire any other asset, with the exception of certain short-term
investments as specified under Item 1. Business. The Trustee is prohibited from selling any portion of the net profits interests unless approved by holders of at least 80 percent or more of the outstanding Trust units or at such time as
Trust gross revenue is less than $1 million for two successive years. The net profits interests comprise:  1.
the 90% net profits interests which are carved from:  a)
producing royalty and overriding royalty interest properties in Texas, Oklahoma and New Mexico; and  b)
11.11% nonparticipating royalty interests in nonproducing properties located primarily in Texas and Oklahoma; and  2.
the 75% net profits interests which are carved from working interests in four properties in Texas and three properties in
Oklahoma. All underlying royalties, underlying nonproducing royalties and underlying working interest properties are currently
owned by XTO Energy or other affiliated companies of ExxonMobil. XTO Energy may sell all or any portion of the underlying properties at any time, subject to and burdened by the net profits interests. The underlying properties include over 2,900 producing properties with established production histories in Texas, Oklahoma and New Mexico. The average reserve-to-production index for the underlying properties as of December 31, 2023, is approximately 10 years. This index is calculated using total proved reserves and
estimated 2024 production for the underlying properties. The projected 2024 production is from proved developed producing reserves as of December 31, 2023. Based on estimated future net cash flows at
12-month average oil and gas prices, based on the
first-day-of-the-month price for each month in the period, the future net cash flows from
proved reserves of the underlying  10




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##### Table of Contents

properties are approximately 51 percent natural gas and 49 percent oil. The underlying properties also include certain nonproducing properties in Texas, Oklahoma and New Mexico that are
primarily mineral interests. Producing Acreage, Wells and Drilling 90% Net Profits Interests Underlying Royalties.Royalty and overriding royalty properties underlying the 90% net profits interests
represent approximately 74 percent of the discounted future net cash flows from Trusts net profits interests proved reserves at December 31, 2023. Approximately 69 percent of the discounted future net cash flows from the 90% net
profits interests are from gas reserves, totaling 10.9 Bcf. Oil reserves allocated to the 90% net profits interests are primarily located in West Texas and are estimated to be 270,000 Bbls at December 31, 2023. The underlying royalties are royalty and overriding royalty interests primarily located in mature producing oil and gas fields. The most significant
producing region in which the underlying royalties are located is the San Juan Basin in northwestern New Mexico. The New Mexico royalties gas production accounted for approximately 78 percent of the Trusts net profits interests gas sales
volumes and 45 percent of the net profits income for 2023. The Trusts net profits interests estimated proved gas reserves from New Mexico totaled 9.5 Bcf at December 31, 2023, or approximately 87 percent of Trusts net
profits interests total gas reserves at that date. The majority of these wells are operated by Hilcorp Energy Company or Simcoe LLC. San Juan Basin
oil and gas accumulations, inclusive of the Fruitland Coal, Pictured Cliffs, Mancos, Mesaverde, and Dakota formations, have produced within the basin for over 100 years. Although these reservoirs have seen almost a century of development, numerous
upside opportunities are still available to basin operators via down-spacing drilling, recompletions, lateral drilling, and lease cost optimizations. Recently, operators have moved development toward the more liquid-rich portions of the basin
through the following:  1.
reduced dry gas drilling with a shift toward horizontal drilling in the more liquids-rich areas; 2.
lease optimization via compression upgrades, restimulations, and improved artificial lift; 3.
basinal work to rail crude oil out of basin to improve pricing; and 4.
stable gas pipeline infrastructure. The underlying royalties also include royalties in the Sand Hills field of Crane County, Texas. The Sand Hills field was discovered in 1931 and includes
production from three main intervals, the Tubb, McKnight and Judkins. Development potential for the field includes recompletions and additional infill drilling. Because the properties related to the 90% net profits interests are primarily royalty interests and overriding royalty interests, the net profits income
from these properties is not reduced by production or development costs, with the exception of a limited number of wells that were converted to working interest after conveyance that incur production and development costs. Additionally, net profits
income from these interests cannot be reduced by any excess costs of the 75% net profits interests. The Trust, therefore, should generally receive monthly net profits income from these interests, as determined by oil and gas sales volumes and
prices. The limited number of underlying working interest properties, referred to above, consists of five productive gross wells (0.23 net). Well
counts for the underlying royalties cannot be provided because information regarding the number of wells on royalty properties is generally not made available to royalty interest owners. 75% Net Profits Interests Underlying Working Interest Properties.Underlying the 75% net profits interests are working
interests in seven large, predominantly oil-producing properties in Texas and Oklahoma operated primarily by established oil companies. These properties are located in mature fields undergoing secondary or
tertiary recovery operations. Most of the oil produced from the 75% net profits interest properties is sour oil, which is sold at a discount to NYMEX sweet crude oil prices. XTO Energy is the operator of the Hewitt Unit, which is one of the
properties underlying the Oklahoma 75% net profits interests. With the exception of the Hewitt Unit, XTO Energy and ExxonMobil generally have little influence or control over operations on any of these properties.  11




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##### Table of Contents

Trusts net profits interests proved reserves from the 75% net profits interests are almost
entirely oil, estimated to be approximately 278,000 Bbls and represent approximately 26 percent of the discounted future net cash flows of the Trusts net profits interests proved reserves at December 31, 2023. The underlying working interest properties are detailed below:  Ownership byXTO EnergyUnit

County/State

Operator

WorkingInterest


RevenueInterestNorth Cowden

Ector/Texas

Occidental Permian Ltd.


1.7
%


1.4
%North Central Levelland

Hockley/Texas

Apache Corporation


3.2
%


2.1
%Penwell

Ector/Texas

Cross Timbers Energy, LLC


5.2
%


4.6
%Sharon Ridge Canyon

Borden/Texas

OXY USA WTP LP


4.3
%


2.8
%Hewitt

Carter/Oklahoma

XTO Energy Inc.


11.3
%


9.9
%Wildcat Jim

Carter/Oklahoma

Citation Oil & Gas Corporation


8.6
%


7.5
%South Graham Deese Sand

Carter/Oklahoma

Scout Energy Management LLC


9.2
%


7.4
% The underlying working interest properties consist of 3,824 gross (3,005 net) producing acres. As of December 31,
2023, there were 1,188 gross (66.8 net) productive oil wells. There were six gross (0.68 net) wells drilled in 2023, no wells in progress, 15 gross (1.69 net) wells drilled in 2022, and two gross (0.23 net) wells drilled in 2021. As operator of the
Hewitt Unit, XTO Energy has advised the Trustee that it has no plans to drill in 2024. Because these underlying properties are working interests,
production expense and development costs are deducted in calculating net profits income from the 75% net profits interests. As a result, net profits income from these interests is affected by the level of maintenance and development activity on
these underlying properties. Net profits income is also dependent upon oil and gas sales volumes and prices and is subject to reduction for any prior period excess costs. Total underlying 2023 development costs were $1,061,887, down 60 percent from 2022 development costs of $2,656,813. Development costs were lower in
2023 primarily because of decreased development activity and costs related to drilling in the Hewitt Unit. As reported to XTO Energy by unit
operators in February of each year, underlying budgeted development costs were $1.4 million for 2023 and $1.4 million for 2022 ($1.1 million and $1.0 million, respectively, net to the Trust). Actual development costs often differ
from amounts budgeted because of changes in product prices and other factors that may affect the timing or selection of projects. Also, costs are deducted in the calculation of Trust net profits income several months after they are incurred by the
operator. Unit operators have reported underlying budgeted costs of approximately $0.2 million for 2024 and $0.3 million for 2025 ($0.1 million and $0.2 million, respectively, net to the Trust). Changes in oil or natural gas
prices could impact future development plans on the underlying properties. If monthly costs exceed revenues for any conveyance, such excess costs
must be recovered, with accrued interest, from future net proceeds of that conveyance and cannot reduce net profits income from other conveyances. Remaining cumulative excess costs for the Texas working interest conveyance totaled $3.1 million
($2.3 million net to the Trust), including accrued interest of $0.8 million ($0.6 million net to the Trust) for the period ended December 31, 2023. For information regarding the effect of excess costs on Trust net profits income,
see Note 7 to Financial Statements under Item 8. Financial Statements and Supplementary Data, including the excess cost balance and accrued interest by conveyance.  12




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##### Table of Contents

Estimated Proved Reserves and Future Net Cash Flows The following are proved reserves of the underlying properties, as estimated by independent engineers, and proved reserves and future net cash flows from
proved reserves of the net profits interests, based on an allocation of these reserves, at December 31, 2023:  Underlying Properties


Net Profits InterestsProved Reserves(a)


Proved Reserves(a) (b)


Future Net Cash Flowsfrom Proved Reserves (a)
(c)Oil


Gas


Oil


Gas(in thousands)

(Bbls)


(Mcf)


(Bbls)


(Mcf)


Undiscounted


Discounted90% Net Profits InterestsNew Mexico


41



10,546



37



9,481


$
39,188


$
21,040Texas


218



653



196



588



15,482



8,570Oklahoma


41



1,020



37



848



5,845



3,476Total


300



12,219



270



10,917



60,515



33,08675% Net Profits InterestsTexas


94



1















Oklahoma


993



473



278



132



20,385



11,617Total


1,087



474



278



132



20,385



11,617TOTAL


1,387



12,693



548



11,049


$
80,900


$
44,703  (a)
Based on 12-month average oil price of $74.88 per Bbl and $4.40 per Mcf for gas,
based on the first-day-of-the-month price for each month in the period.  (b)
Since the Trust has defined net profits interests, the Trust does not own a specific percentage of the oil and gas
reserves. Oil and gas reserves are allocated to the net profits interests by dividing Trust net cash inflows by 12-month average oil and gas prices. As such, reserves allocated to the Trust have been reduced
to reflect recovery of the Trusts portion of applicable production and development costs, which includes excess costs. Any conveyance where costs exceed revenues will result in zero allocated net profits interests reserves for that conveyance.  (c)
Before income taxes since future net cash flows are not subject to taxation at the trust level. Future net cash flows are
discounted at an annual rate of 10 percent. Proved reserves at December 31, 2023, consist of the following:  Underlying Properties


Net Profits InterestsProved Reserves


Proved Reserves(in thousands)

Oil(Bbls)


Gas(Mcf)


Oil(Bbls)


Gas(Mcf)Proved developed producing reserves


1,387



12,693



548



11,049Proved undeveloped reserves














Proved developed non-producing reserves














Total proved reserves


1,387



12,693



548



11,049 The process of estimating oil and gas reserves is complex and requires significant judgment as discussed in
Item 1A. Risk Factors, and is performed by XTO Energy. As a result, XTO Energy has developed internal policies and controls for estimating and recording reserves. XTO Energys policies regarding booking reserves require proved
reserves to be in compliance with the SEC definitions and guidance. XTO Energys policies assign responsibilities for compliance in reserves bookings to its reserve engineering group and require that reserve estimates be made by qualified
reserves estimators, as defined by the Society of Petroleum Engineers standards. All qualified reserves estimators are required to receive education covering the fundamentals of SEC proved reserves assignments.  13




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##### Table of Contents

The XTO Energy reserve engineering group reviews reserve estimates with third-party petroleum consultants, Miller and
Lents, Ltd., independent petroleum engineers. Miller and Lents, Ltd. estimated oil and gas reserves attributable to the underlying properties as of December 31, 2023. Miller and Lents primary technical person responsible for calculating
the Trusts reserves has more than 12 years of experience as a reserve engineer. The estimated reserves for the underlying properties are then used by XTO Energy to calculate the estimated oil and gas reserves attributable to the net profits
interests. Numerous uncertainties are inherent in estimating reserve volumes and values, and such estimates are subject to change as additional information becomes available. The reserves actually recovered and the timing of production of these
reserves may be substantially different from the original estimates. Reserve quantities and revenues for the net profits interests were estimated
from projections of reserves and revenues attributable to the underlying properties. Since the Trust has defined net profits interests, the Trust does not own a specific percentage of the oil and gas reserves. Oil and gas reserves are allocated to
the net profits interests by dividing Trust net cash inflows by 12-month average oil and gas prices. Oil and Natural Gas
Production Trust production is recognized in the period net profits income is received, which is the month following receipt by XTO Energy, and
generally two months after the time of oil production and three months after gas production. Oil and gas sales volumes are allocated to the net profits interests based upon a formula that considers oil and gas prices and the total amount of
production expense and development costs. As such, the underlying property production volume changes may not correlate with the Trusts net profit share of those volumes in any given period. Oil and gas production and average sales prices attributable to the underlying properties and the net profits interests for the last three years ended
December 31 were as follows:  90% Net Profits Interests


75% Net Profits Interests


Total2023


2022


2021


2023


2022


2021


2023


2022


2021ProductionUnderlying PropertiesOil - Sales (Bbls)


61,465



47,459



50,522



130,654



189,988



42,080



192,119



237,447



92,602Average per day (Bbls)


168



130



139



358



521



115



526



651



254Gas - Sales (Mcf)


1,764,001



1,373,325



930,143



9,863



9,240



9,207



1,773,864



1,382,565



939,350Average per day (Mcf)


4,833



3,763



2,549



27



25



25



4,860



3,788



2,574Net Profits InterestsOil - Sales (Bbls)


53,783



41,920



39,205



17,348



16,116



21,464



71,131



58,036



60,669Average per day (Bbls)


147



115



107



48



44



59



195



159



166Gas - Sales (Mcf)


1,451,656



1,169,587



826,939



784



171



517



1,452,440



1,169,758



827,456Average per day (Mcf)


3,977



3,204



2,266



2



1



1



3,979



3,205



2,267Average Sales PriceOil (per Bbl)

$
79.50


$
81.62


$
60.22


$
75.90


$
76.11


$
68.85


$
77.05


$
77.21


$
64.14Gas (per Mcf)

$
5.94


$
7.95


$
5.80


$
15.76


$
27.55


$
19.55


$
6.00


$
8.08


$
5.93Average ProductionCost per BOE(a)(b)

$
1.67


$
1.86


$
1.10


$
53.09


$
27.71


$
99.28


$
15.62


$
12.44


$
18.28  (a)
Total average production cost per BOE includes production from the properties underlying the 90% net profits interests,
which are substantially all royalty and overriding royalty interests with insignificant production costs.  (b)
75% Net Profits Interests average production cost per BOE for 2021 is inflated due to the reversal of oil sales volumes
by the oil purchaser of the North Cowden Unit in fourth quarter 2021. These oil sales were subsequently paid by the operator in first quarter 2022.  14




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##### Table of Contents

Oil and gas production by conveyance attributable to the underlying properties for the last three
years ended December 31 were as follows:  Underlying Gas Production (Mcf)Conveyance

2023


2022


2021New Mexico royalty interest


1,397,441



1,059,929



708,689Oklahoma royalty interest


196,718



193,918



155,443Texas royalty interest


169,842



119,478



66,011Texas working interest


7,716



8,486



7,295Oklahoma working interest


2,147



754



1,912Total


1,773,864



1,382,565



939,350Underlying Oil Production (Bbls)Conveyance

2023


2022


2021New Mexico royalty interest


2,340



3,769



6,263Oklahoma royalty interest


18,928



13,985



11,260Texas royalty interest


40,197



29,705



32,999Texas working interest (a)


26,697



104,798



(45,292
)Oklahoma working interest


103,957



85,190



87,372Total


192,119



237,447



92,602  (a)
Texas working interest underlying oil production for 2021 is negative due to the reversal of oil sales volumes by the oil
purchaser of the North Cowden Unit in fourth quarter 2021. These oil sales were subsequently paid by the operator in first quarter 2022. Nonproducing Acreage The underlying nonproducing royalties
in Texas, Oklahoma and New Mexico were nonproducing at the date of the Trusts creation. The Trust is entitled to 10 percent of oil and gas production attributable to the underlying mineral interests, but is not entitled to delay rental
payments or lease bonuses. There has been no significant development of such nonproducing acreage since the Trusts creation. Pricing and Sales Information Oil and gas are generally sold from the underlying properties at market-sensitive prices. The majority of sales from the underlying working
interest properties are to major oil and gas companies. Information about purchasers of oil and gas from royalty properties is generally not provided by operators to XTO Energy as a royalty owner, or to the Trust. Regulation Natural Gas Regulation The interstate transportation and sale for resale of natural gas is subject to federal regulation, including transportation and storage rates charged,
tariffs, and various other matters, by the Federal Energy Regulatory Commission (FERC). Federal price controls on wellhead sales of domestic natural gas terminated on January 1, 1993. While natural gas prices are currently
unregulated, Congress historically has been active in the area of natural gas regulation. On August 8, 2005, Congress enacted the Energy Policy Act of 2005. The Energy Policy Act, among other things, amended the Natural Gas Act to prohibit
market manipulation by any entity, to direct FERC to facilitate market transparency in the market for sale or transportation of physical natural gas in interstate commerce, and to significantly increase the penalties for violations of the Natural
Gas Act, the Natural Gas Policy Act of 1978, or FERC rules, regulations or orders thereunder. FERC has  15




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##### Table of Contents

promulgated regulations to implement the Energy Policy Act, including enforcement rules and new annual reporting requirements for certain sellers of natural gas. It is impossible to predict
whether new legislation to regulate natural gas might be proposed, what proposals, if any, might actually be enacted by Congress or the various state legislatures, and what effect, if any, such proposals might have on the operations of the
underlying properties. Federal Regulation of Oil Sales of crude oil, condensate and natural gas liquids are not currently regulated and are made at market prices. The net price received from the sale of
these products is affected by market transportation costs. Under rules adopted by FERC effective January 1995, interstate oil pipelines can change rates based on an inflation index, though other rate mechanisms may be used in specific circumstances. On December 19, 2007, the President signed into law the Energy Independence & Security Act of 2007 (PL
110-140) (EISA). The EISA, among other things, prohibits market manipulation by any person in connection with the purchase or sale of crude oil, gasoline or petroleum distillates at wholesale in
contravention of such rules and regulations that the Federal Trade Commission may prescribe, directs the Federal Trade Commission to enforce the regulations, and establishes penalties for violations thereunder. XTO Energy has advised the Trustee
that it cannot predict the impact of future government regulation on any crude oil, condensate or natural gas liquids facilities, sales or transportation transactions. Environmental Regulation Companies
that are engaged in the oil and gas industry are affected by federal, state and local laws regulating the discharge of materials into the environment. Those laws may impact operations of the underlying properties. No material expenses have been
incurred on the underlying properties in complying with environmental laws and regulations. XTO Energy does not expect that future compliance will have a material adverse effect on the Trust. There is an increased focus by local, national and international regulatory bodies on greenhouse gas (GHG) emissions and climate change.
Several states have adopted climate change legislation and regulations, and various other regulatory bodies have announced their intent to regulate GHG emissions or adopt climate change regulations. As these regulations are under development, XTO
Energy is unable to predict the total impact of the potential regulations upon the operators of the underlying properties, and it is possible that operators of the underlying properties could face increases in operating costs in order to comply with
climate change or GHG emissions legislation, which costs could reduce net proceeds payable to the Trust and Trust distributions. State
Regulation The various states regulate the production and sale of oil and natural gas, including imposing requirements for obtaining
drilling permits, the method of developing new fields, the spacing and operation of wells and the prevention of waste of oil and gas resources. The rates of production may be regulated and the maximum daily production allowable from both oil and gas
wells may be established on a market demand or conservation basis, or both. Federal Income Taxes For federal income tax purposes, the Trust constitutes a fixed investment trust that is taxed as a grantor trust. A grantor trust is not subject to tax
at the trust level. The unitholders are considered to own the Trusts income and principal as though no trust were in existence. The income of the Trust is deemed to have been received or accrued by each unitholder at the time such income is
received or accrued by the Trust and not when distributed by the Trust. Impairments recorded for book purposes will not result in a loss for tax purposes for the unitholders until the loss is recognized. Because the Trust is a grantor trust for federal tax purposes, unitholders are taxed directly on their proportionate share of income, deductions and
credits of the Trust consistent with each such unitholders taxable year and method of  16




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##### Table of Contents

accounting and without regard to the taxable year or method of accounting employed by the Trust. The income of the Trust consists primarily of a specified share of the net profits from the sale
of oil and natural gas produced from the underlying properties. During 2023, the Trust incurred administration expenses and earned interest income on funds held for distribution and for the cash reserve maintained for the payment of contingent and
future obligations of the Trust. The Trust generally allocates its items of income, gain, loss and deduction between transferors and transferees of
the units each month based upon the ownership of the Trust units on the monthly record date, instead of on the basis of the date a particular unit is transferred. It is possible that the IRS could disagree with this allocation method and could
assert that income and deductions of the Trust should be determined and allocated on a daily or prorated basis, which could require adjustments to the tax returns of the unitholders affected by the issue and result in an increase in the
administrative expense of the Trust in subsequent periods. The net profits interests constitute economic interests in oil and gas
properties for federal tax purposes. Each unitholder is entitled to amortize the cost of the units through cost depletion over the life of the net profits interests or, if greater, through percentage depletion equal to 15 percent of gross
income from such net profits interests, limited to 100 percent of the net income from such net profits interests. Unlike cost depletion, percentage depletion is not limited to a unitholders depletable tax basis in the units. Rather, a
unitholder is entitled to a percentage depletion deduction as long as the applicable underlying properties generate gross income. Unitholders should compute both percentage depletion and cost depletion from each property and claim the larger amount
as a deduction on their income tax returns. Unitholders must maintain records of their adjusted basis in their Trust units (generally their cost
less prior depletion deductions), make adjustments for depletion deductions to such basis, and use the adjusted basis for the computation of gain or loss on the disposition of the Trust units. If a taxpayer disposes of any Section 1254 property (certain oil, gas, geothermal or other mineral property), and the adjusted basis of
such property includes adjustments for depletion deductions under Section 611 of the Internal Revenue Code (the Code), the taxpayer generally must recapture the amount deducted for depletion as ordinary income (to the extent of gain
realized on such disposition). This depletion recapture rule applies to any disposition of Section 1254 property that was placed in service by the taxpayer after December 31, 1986. Detailed rules set forth in Sections 1.1254-1 through 1.1254-6 of the U.S. Treasury Regulations govern dispositions of property after March 13, 1995. Interest and net profits income attributable to ownership of units and any gain on the sale thereof are considered portfolio income, and not income from
a passive activity, to the extent a unitholder acquires and holds units as an investment and not in the ordinary course of a trade or business. Therefore, interest and net profits income attributable to ownership of units generally may
not be offset by losses from any passive activities. Under the TCJA, for tax years beginning after December 31, 2017, and before
January 1, 2026, the highest marginal U.S. federal income tax rate applicable to ordinary income of individuals is 37 percent, and the highest marginal U.S. federal income tax rate applicable to long-term capital gains (generally, gains
from the sale or exchange of certain investment assets held for more than one year) and qualified dividends of individuals is 20 percent. Under the TCJA, for such tax years, personal exemptions and miscellaneous itemized deductions are not
allowed. Further, the U.S. federal income tax rate applicable to corporations is 21 percent, and such rate applies to both ordinary income and capital gains. Individuals may also incur expenses in connection with the acquisition or maintenance of Trust units. For tax years beginning before January 1,
2018, and after December 31, 2025, these expenses, which are different from a unitholders share of the Trusts administrative expenses discussed above, may be deductible as miscellaneous itemized deductions only to the
extent that such expenses exceed 2 percent of the individuals adjusted gross income. Under the TCJA, for tax years beginning after December 31, 2017, and before January 1, 2026, miscellaneous itemized deductions are not allowed. Section 1411 of the Code imposes a 3.8 percent Medicare tax on certain investment income earned by individuals, estates, and trusts. For
these purposes, investment income generally will include a unitholders allocable share of the  17




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##### Table of Contents

Trusts interest and royalty income plus the gain recognized from a sale of Trust units. In the case of an individual, the tax is imposed on the lesser of (i) the individuals net
investment income from all investments, or (ii) the amount by which the individuals modified adjusted gross income exceeds specified threshold levels depending on such individuals federal income tax filing status. In the case of an
estate or trust, the tax is imposed on the lesser of (i) undistributed net investment income, or (ii) the excess adjusted gross income over the dollar amount at which the highest income tax bracket applicable to an estate or trust begins. The difference between the per-unit taxable income for any period and the
per-unit cash distributions, if any, reported for such period is attributable to (i) items that reduce cash distributions but are not currently deductible, such as an increase in the cash reserve
maintained by the Trust for the payment of future expenditures; (ii) the current deduction of expenses that are paid with amounts previously reserved; (iii) items that increase cash distributions but do not constitute taxable income, such
as a decrease in the cash reserve maintained by the Trust and/or a return of capital; and (iv) items that constitute taxable income due to the recovery of prior period expense adjustments. Because of these types of items and when the Trustee
elects to reserve amounts from monthly distributions to maintain an administrative expense reserve, the taxable income per period frequently differs from the actual amount distributed to unitholders. Pursuant to the Foreign Account Tax Compliance Act (commonly referred to as FATCA), distributions from the Trust to foreign financial
institutions and certain other non-financial foreign entities may be subject to U.S. withholding taxes. Specifically, certain withholdable payments (including certain royalties,
interest and other gains or income from U.S. sources) made to a foreign financial institution or non-financial foreign entity will generally be subject to the withholding tax unless the foreign financial
institution or non-financial foreign entity complies with certain information reporting, withholding, identification, certification and related requirements imposed by FATCA. Foreign financial institutions
located in jurisdictions that have an intergovernmental agreement with the United States governing FATCA may be subject to different rules. The
Treasury Department issued guidance providing that the FATCA withholding rules described above generally apply to qualifying payments made after June 30, 2014. Foreign unitholders are encouraged to consult their own tax advisor regarding the
possible implications of these withholding provisions on their investment in Trust units. Some Trust units are held by middlemen, as such term is
broadly defined in U.S. Treasury Regulations (and includes custodians, nominees, certain joint owners, and brokers holding an interest for a customer in street name, collectively referred to herein as middlemen). Therefore, the Trustee
considers the Trust to be a non-mortgage widely held fixed investment trust (WHFIT) for U.S. federal income tax purposes. Argent Trust Company, EIN:
62-1437218, 3838 Oak Lawn Ave, Suite 1720, Dallas, Texas, 75219, telephone number
1-855-588-7839, email address Trustee@crt-crosstimbers.com, is the representative of the
Trust that will provide tax information in accordance with applicable U.S. Treasury Regulations governing the information reporting requirements of the Trust as a WHFIT. Tax information is also posted by the Trustee at www.crt-crosstimbers.com. Notwithstanding the foregoing, the middlemen holding Trust units on behalf of unitholders, and not the Trustee of the Trust, are solely responsible for complying with the information
reporting requirements under the U.S. Treasury Regulations with respect to such Trust units, including the issuance of IRS Forms 1099 and certain written tax statements. Unitholders whose Trust units are held by middlemen should consult with such
middlemen regarding the information that will be reported to them by the middlemen with respect to the Trust units. Unitholders should consult
their tax advisor regarding Trust tax compliance matters. State Income Taxes All revenues from the Trust are from sources within Texas, Oklahoma or New Mexico. Because it distributes all of its net income to unitholders, the Trust
is not taxed at the trust level in New Mexico or Oklahoma. While the Trust does not owe tax, the Trustee is required to file an Oklahoma income tax return reflecting the income and deductions of the Trust attributable to properties located in that
state, along with a schedule that includes information regarding distributions to unitholders. Oklahoma and New Mexico tax the income of nonresidents from real property located within those states, and the Trust has been advised by counsel that such
states will tax nonresidents on income from the net profits interests  18




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##### Table of Contents

located in those states. Oklahoma and New Mexico also impose a corporate income tax that may apply to unitholders organized as corporations (subject to certain exceptions for S corporations and
limited liability companies, depending on their treatment for federal tax purposes). Texas imposes a franchise tax at a rate of 0.75 percent
on gross revenues less certain deductions, as specifically set forth in the Texas franchise tax statutes. Entities subject to tax generally include trusts and most other types of entities that provide limited liability protection, unless otherwise
exempt. Trusts that receive at least 90 percent of their federal gross income from certain passive sources, including royalties from mineral properties and other non-operated mineral interest income, and
do not receive more than 10 percent of their income from operating an active trade or business, generally are exempt from the Texas franchise tax as passive entities. The Trust has been and expects to continue to be exempt from
Texas franchise tax as a passive entity. Because the Trust should be exempt from Texas franchise tax at the trust level as a passive entity, each unitholder that is a taxable entity under the Texas franchise tax generally will be required to include
its Texas portion of trust revenues in its own Texas franchise tax computation. This revenue is sourced to Texas under provisions of the Texas Administrative Code providing that such income is sourced according to the principal place of business of
the Trust, which is Texas. Each unitholder should consult their own tax advisor regarding state income tax requirements, if any, applicable to such
persons ownership of Trust units. State Tax Withholding Several states have enacted legislation requiring state income tax withholding from payments to nonresident recipients of oil and gas proceeds. After
consultation with its tax counsel, the Trustee believes that it is not required to withhold on payments made to the unitholders. However, regulations are subject to change by the various states, which could change this conclusion. Should amounts be
withheld on payments made to the Trust or the unitholders, distributions to the unitholders would be reduced by the required amount, subject to the filing of a claim for refund by the Trust or unitholders for such amount. Other Regulation The petroleum
industry is also subject to compliance with various other federal, state and local regulations and laws, including, but not limited to, regulations and laws relating to environmental protection, occupational safety, resource conservation and equal
employment opportunity. XTO Energy has advised the Trustee that it does not believe that compliance with these laws will have any material adverse effect upon the unitholders.  ITEM 3.
LEGAL PROCEEDINGS Certain of the underlying properties are involved in various lawsuits and certain governmental proceedings arising in the ordinary course of business.
XTO Energy has advised the Trustee that it does not believe that the ultimate resolution of these claims will have a material effect on the annual distributable income, financial position or liquidity of the Trust.  ITEM 4.
MINE SAFETY DISCLOSURES Not Applicable. PART
II  ITEM 5.
MARKET FOR UNITS OF THE TRUST, RELATED UNITHOLDER MATTERS AND TRUST PURCHASES OF UNITS Units of Beneficial Interest The units of beneficial interest in the Trust are listed and traded on the New York Stock Exchange under the symbol CRT.  19




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At March 2, 2024, there were 6,000,000 units outstanding and approximately 163 unitholders of
record; 5,929,622 of these units were held by depository institutions. The Trust has no equity compensation plans, nor has it purchased any units
during the period covered by this report. See Item 1. Business for a description of the Trustees obligations to make monthly
distributions and how the monthly distribution amount is determined under the indenture.  ITEM 6.
[RESERVED]  20




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##### Table of Contents

ITEM 7.
TRUSTEES DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Calculation of Net Profits Income The following is a summary of the calculation of net profits income received by the Trust:  Year EndedDecember 31 (a)


Three Months EndedDecember 31 (a)2023


2022


2023


2022Sales VolumesOil (Bbls) (b)Underlying properties


192,119



237,447



53,871



37,737Average per day


526



651



586



410Net profits interests


71,131



58,036



20,452



9,297Gas (Mcf) (b)Underlying properties


1,773,864



1,382,565



363,851



286,170Average per day


4,860



3,788



3,955



3,111Net profits interests


1,452,440



1,169,758



305,224



245,370Average Sales PriceOil (per Bbl)

$
77.05


$
77.21


$
79.05


$
88.30Gas (per Mcf)

$
6.00


$
8.08


$
4.63


$
10.52RevenuesOil sales

$
14,803,161


$
18,332,657


$
4,258,690


$
3,332,223Gas sales


10,636,622



11,177,646



1,682,968



3,011,123Total Revenues


25,439,783



29,510,303



5,941,658



6,343,346CostsTaxes, transportation and other


3,186,994



2,909,480



659,019



651,341Production expense (c)


7,617,528



5,821,761



2,694,001



1,628,629Development costs


1,061,887



2,656,813



321,747



1,298,868Excess costs (d)


(372,285
)


3,896,111



(625,543
)


(520,986
)Total Costs


11,494,124



15,284,165



3,049,224



3,057,852Net Proceeds

$
13,945,659


$
14,226,138


$
2,892,434


$
3,285,494Net Profits Income

$
12,300,176


$
12,493,727


$
2,548,233


$
2,956,945  (a)
Because of the interval between time of production and receipt of net profits income by the Trust, oil and gas sales for
the year ended December 31 generally relate to oil production from November through October and gas production from October through September, while oil and gas sales for the quarter ended December 31 generally relate to oil production
from August through October and gas production from July through September.  (b)
Oil and gas sales volumes are allocated to the net profits interests by dividing Trust net cash inflows by average sales
prices. As oil and gas prices change, the Trusts allocated production volumes are impacted as the quantity of production necessary to cover expenses changes inversely with price. As such, the underlying property production volume changes may
not correlate with the Trusts allocated production volumes in any given period. Therefore, comparative discussion of oil and gas sales volumes is based on the underlying properties.  (c)
Production expense includes an overhead charge which is deducted and retained by the operator. XTO Energy deducts an
overhead charge as reimbursement for costs associated with monitoring these interests. See Note 5 to Financial Statements under Item 8. Financial Statements and Supplementary Data.  (d)
See Note 7 to Financial Statements under Item 8. Financial Statements and Supplementary Data.  21




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##### Table of Contents

Results of Operations Years Ended December 31, 2023 and 2022 Net profits
income for 2023 was $12,300,176 as compared with $12,493,727 for 2022. The 2 percent decrease in net profits income from 2022 to 2023 was primarily the result of lower gas prices ($2.6 million), decreased oil production ($2.4 million),
increased production expenses ($1.4 million), and increased taxes, transportation and other costs ($0.3 million), partially offset by net excess costs activity ($3.2 million), increased gas production ($2.1 million), and decreased development costs
($1.2 million). During 2023 and 2022, 57 percent and 62 percent, respectively, of net profits income was derived from gas sales. Trust
administration expense was $816,185 in 2023 as compared to $765,955 in 2022. Cash reserve activity was $0 in 2023 and 2022. As of December 31, 2023, the reserve is funded at $1,000,000. Interest income was $63,897 in 2023 and $15,464 in 2022.
Other changes in interest income are attributable to fluctuations in net profits income and interest rates. Net profits income is recorded when
received by the Trust, which is the month following receipt by XTO Energy, and generally two months after oil production and three months after gas production. Net profits income is generally affected by three major factors:  1.
oil and gas sales volumes; 2.
oil and gas sales prices; and 3.
costs deducted in the calculation of net profits income. Volumes Oil. Underlying oil sales
volumes decreased 19 percent from 2022 to 2023 primarily because of the absence of North Cowden Unit adjustment in first quarter 2022 and natural production decline. Gas. Underlying gas sales volumes increased 28 percent from 2022 to 2023 primarily because of timing of cash receipts for the
New Mexico royalty interest net profits interests related to March 2018 to December 2020 production, partially offset by natural production decline. The estimated rate of natural production decline on the underlying oil and gas properties is approximately 6 to 8 percent a year. Prices Oil. The average oil price
for 2023 was $77.05 per Bbl, relatively flat from the 2022 average oil price of $77.21 per Bbl. Oil prices are expected to remain volatile. The average NYMEX price for November 2023 through January 2024 was $74.50 per Bbl. At March 15, 2024,
the average NYMEX oil price for the following 12 months was $77.89 per Bbl. Gas. The 2023 average gas price was $6.00 per Mcf,
down 26 percent from the 2022 average gas price of $8.08 per Mcf. Natural gas prices are affected by natural gas liquids prices, the level of North American production, weather, crude oil prices, the U.S. economy, storage levels and export
levels of liquefied natural gas. Natural gas prices are expected to remain volatile. The average NYMEX price for fourth quarter 2023 was $2.55 per MMBtu. At March 15, 2024, the average NYMEX gas price for the following 12 months was $2.70 per
MMBtu. Costs Because properties underlying the
90% net profits interests are primarily royalty and overriding royalty interests, the calculation of net profits income from these interests includes deductions for production and property taxes, legal costs, and marketing and transportation
charges. In addition to these costs, the calculation of net profits income from the 75% net profits interests includes deductions for production expense and development costs since the related underlying  22




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##### Table of Contents

properties are working interests. Net profits income is calculated monthly for each of the five conveyances under which the net profits interests were conveyed to the Trust. If monthly costs
exceed revenues for any conveyance, such excess costs must be recovered, with accrued interest, from future net proceeds of that conveyance and cannot reduce net profits income from other conveyances. Costs have never exceeded revenues from the 90%
net profits interests, nor are they expected to in the future. For further information on excess costs, see Note 7 to Financial Statements under Item 8. Financial Statements and Supplementary Data. Total costs deducted in the calculation of net profits income were $11.5 million in 2023 and $15.3 million in 2022. The 25 percent
decrease in costs from 2022 to 2023 is attributable to net excess costs activity ($4.3 million), decreased development costs ($1.6 million), offset by increased production expenses ($1.8 million) and increased taxes, transportation and other costs
($0.3 million). Unit operators of the properties underlying the 75% net profits interests have reported underlying budgeted development costs of
approximately $0.2 million for 2024 and $0.3 million for 2025 ($0.1 million and $0.2 million, respectively, net to the Trust), as compared to underlying budgeted development costs of $1.4 million ($1.1 million net to
the Trust) and actual development costs of $1.1 million ($0.8 million net to the Trust) for 2023. Actual development costs often differ from amounts budgeted because of changes in product prices and other factors that may affect the timing
or selection of projects. Changes in oil or natural gas prices could impact future development plans on the underlying properties. Fourth Quarter 2023 and 2022 During the quarter ended December 31, 2023, the Trust received net profits income totaling $2,548,233, compared with fourth quarter 2022
net profits income of $2,956,945. This 14 percent decrease in net profits income is primarily the result of lower oil and gas prices ($1.8 million) and increased production expenses ($0.8 million), partially offset by increased oil and gas
production ($1.4 million), decreased development costs ($0.7 million), and net excess costs activity ($0.1 million). Administration expense was
$147,303 and Trust interest income was $15,954, resulting in fourth quarter 2023 distributable income of $2,416,884, or $0.402814 per unit. Distributable income for fourth quarter 2022 was $2,763,048, or $0.460508 per unit. Distributions to unitholders for the quarter ended December 31, 2023, were:  Record Date

Payment Date

Per UnitOctober 31, 2023

November 14, 2023

$
0.109923November 30, 2023

December 14, 2023


0.149994December 29, 2023

January 16, 2024


0.142897$0.402814 Volumes Fourth
quarter 2023 underlying oil sales volumes were up 43 percent from fourth quarter 2022 primarily because of timing of cash receipts, partially offset by natural production decline. Underlying gas sales volumes for fourth quarter 2023 were up
27 percent from fourth quarter 2022 because of timing of cash receipts, partially offset by natural production decline. Prices The average fourth quarter 2023 oil price was $79.05 per Bbl, down 10 percent from the fourth quarter 2022 average price of $88.30 per Bbl. The
average fourth quarter 2023 gas price was $4.63 per Mcf, down 56 percent from the fourth quarter 2022 average price of $10.52 per Mcf. For further information about oil and gas prices, see Years Ended December 31, 2023 and 2022
 Prices above.  23




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##### Table of Contents

Costs Costs deducted in the calculation of fourth quarter 2023 net profits income decreased $8,628 from fourth quarter 2022. This decrease was primarily
attributable to decreased development costs ($1.0 million) and net excess costs activity ($0.1 million), partially offset by increased production expenses ($1.1 million). For further information about development and excess costs, see Years
Ended December 31, 2023 and 2022  Costs above. Liquidity and Capital Resources The Trusts only cash requirement is any declared monthly distribution of its income to unitholders, which is funded by the monthly receipt of net
profits income after payment of Trust administration expenses. The Trust is not liable for any production costs or liabilities attributable to the underlying properties. If at any time the Trust receives net profits income in excess of the amount
due, the Trust is not obligated to return such overpayment, but future net profits income payable to the Trust will be reduced by the overpayment, plus interest at the prime rate. The Trustee may establish cash reserves for certain contingencies.
The Trust may borrow funds required to pay Trust liabilities if fully repaid prior to further distributions to unitholders. The Trust does not have
any transactions, arrangements or other relationships with unconsolidated entities or persons that could materially affect the Trusts liquidity or the availability of capital resources. Greenhouse Gas Emissions and Climate Change Regulations There is an increased focus by local, national and international regulatory bodies on greenhouse gas (GHG) emissions and climate change. A
number of nations and U.S. states have adopted or are considering some form of climate change legislation and regulations, including carbon taxes, cap-and-trade policies
and bans on drilling in certain areas or in certain ways. The climate accord reached at the Conference of the Parties (COP21) in Paris set many new goals, and while many related policies are still emerging, XTO Energy has informed the Trustee that
it continues to anticipate that such policies will increase the cost of carbon dioxide emissions over time. As these regulations are under development, XTO Energy is unable to predict the total impact of the potential regulations upon the operators
of the underlying properties, and it is possible that the operators of the underlying properties could face increases in operating costs or a ban of certain types of activities in order to comply with climate change or GHG emissions legislation,
which costs could reduce or eliminate net proceeds payable to the Trust and Trust distributions. Off-Balance Sheet
Arrangements The Trust has no off-balance sheet financing arrangements. The Trust has not guaranteed the
debt of any other party, nor does the Trust have any other arrangements or relationships with other entities that could potentially result in unconsolidated debt, losses or contingent obligations. Related Party Transactions The underlying properties from
which the net profits interests were carved are currently owned by XTO Energy or other affiliated companies of ExxonMobil. Approximately 23 of the
underlying royalty interests burden working interests in properties operated by XTO Energy. XTO Energy operates the Hewitt Unit which is one of the properties underlying the Oklahoma 75% net profits interests. Other than these properties, XTO Energy
and ExxonMobil do not operate or control any of the underlying properties or related working interests. In computing net proceeds for the 75% net
profits interests (Note 3), XTO Energy deducts an overhead charge as reimbursement for costs associated with monitoring these interests. This overhead charge at December 31, 2023, was approximately $48,224 per month, or $578,688 annually (net
to the Trust of $36,168 per month, or $434,016 annually), and is subject to annual adjustment based on an oil and gas industry index.  24




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##### Table of Contents

XTO Energy deducts a monthly overhead charge for reimbursement of administrative expenses as operator
of the Hewitt Unit, which is one of the properties underlying the Oklahoma 75% net profits interests. As of December 31, 2023, this charge was approximately $33,972 per month, or $407,664 annually (net to the Trust of $25,479 per month, or
$305,748 annually), and is subject to annual adjustment based on an oil and gas industry index. On June 25, 2010, XTO Energy became a wholly
owned subsidiary of Exxon Mobil Corporation. Critical Accounting Policies The financial statements of the Trust are significantly affected by its basis of accounting and estimates related to its oil and gas properties and
proved reserves, as summarized below. Basis of Accounting The Trusts financial statements are prepared on a modified cash basis, which is a comprehensive basis of accounting other than U.S. GAAP. This
method of accounting is consistent with reporting of taxable income to Trust unitholders. The most significant differences between the Trusts financial statements and those prepared in accordance with U.S. GAAP are:  1.
net profits income is recognized in the month received rather than accrued in the month of production; 2.
expenses are recognized when paid rather than when incurred; and 3.
cash reserves may be established by the Trustee for certain contingencies that would not be recorded under U.S. GAAP. This comprehensive basis of accounting other than U.S. GAAP corresponds to the accounting permitted for royalty trusts by the
U.S. Securities and Exchange Commission, as specified by Staff Accounting Bulletin Topic 12:E, Financial Statements of Royalty Trusts. For further information regarding the Trusts basis of accounting, see Note 2 to Financial Statements under
Item 8. Financial Statements and Supplementary Data. All amounts included in the Trusts financial statements are based on cash amounts
received or disbursed, or on the carrying value of the net profits interests, which was derived from the historical cost of the interests at the date of their transfer from XTO Energy, less accumulated amortization to date. Accordingly, there are no
fair value estimates included in the financial statements based on either exchange or non-exchange trade values. Impairment of Net Profits Interests The Trustee reviews the Trusts net profits interests (NPI) in oil and gas properties for impairment whenever events or circumstances
indicate that the carrying value of the NPI may not be recoverable. In general, the Trustee does not view temporarily low prices as an indication of impairment. The markets for crude oil and natural gas have a history of significant price volatility
and though prices will occasionally drop significantly, industry prices over the long term will continue to be driven by market supply and demand. If events and circumstances indicate the carrying value may not be recoverable, the Trustee would use
the estimated undiscounted future net cash flows from the NPI to evaluate the recoverability of the Trust assets. If the undiscounted future net cash flows from the NPI are less than the NPI carrying value, the Trust would recognize an impairment
loss for the difference between the NPI carrying value and the estimated fair value of the NPI. The determination as to whether the NPI is impaired requires a significant amount of judgment by the Trustee and is based on the best information
available to the Trustee at the time of the evaluation, including commodity pricing and other information provided by XTO Energy such as estimates of future production and development and operating expenses. During 2023, including fourth quarter, no trigger event occurred that would indicate a need for an impairment assessment. Accordingly, there was no
impairment of the NPI as of December 31, 2023. Any impairment recorded for book purposes will not result in a deductible loss for tax purposes for the unitholders until the loss is recognized.  25




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##### Table of Contents

Net profits interests in oil and gas properties The initial carrying value of the net profits interests of $61,100,449 was XTO Energys historical net book value of the interests on
February 12, 1991, the date of the transfer to the Trust. Amortization of the net profits interests is calculated on a unit-of-production basis using proved
reserves and is charged directly to trust corpus. Accumulated amortization was $58,428,866 as of December 31, 2023, and $58,138,494 as of December 31, 2022. Amortization of the NPI does not impact unitholder distributions or the
determination of proved reserves. Oil and Gas Reserves The proved oil and gas reserves for the underlying properties are estimated by independent petroleum engineers. The estimated reserves for the underlying
properties are then used by XTO Energy to calculate the estimated oil and gas reserves attributable to the net profits interests. Reserve engineering is a subjective process that is dependent upon the quality of available data and the interpretation
thereof. Estimates by different engineers often vary, sometimes significantly. In addition, physical factors such as the results of drilling, testing and production subsequent to the date of an estimate, as well as economic factors such as changes
in product prices, may justify revision of such estimates. Because proved reserves are required to be estimated using 12-month average prices, based on the first-day-of-the-month price for each month in the period, estimated reserve quantities can be significantly impacted by changes
in product prices. Accordingly, oil and gas quantities ultimately recovered and the timing of production may be substantially different from original estimates. The standardized measure of discounted future net cash flows and changes in such cash flows, as reported in Note 8 to Financial Statements under
Item 8. Financial Statements and Supplementary Data, is prepared using assumptions required by the Financial Accounting Standards Board and the Securities and Exchange Commission. Such assumptions include using 12-month average oil and gas prices, based on the
first-day-of-the-month price for each month in the period, and year end costs for
estimated future development and production expenditures, including recovery of cumulative excess costs remaining at year end. Discounted future net cash flows are calculated using a 10 percent rate. Changes in any of these assumptions,
including consideration of other factors, could have a significant impact on the standardized measure. Accordingly, the standardized measure does not represent XTO Energys or the Trustees estimated current market value of proved
reserves. Forward-Looking Statements Certain
information included in this annual report and other materials filed, or to be filed, by the Trust with the Securities and Exchange Commission (as well as information included in oral statements or other written statements made or to be made by XTO
Energy or the Trustee) contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, relating to the Trust, operations of
the underlying properties and the oil and gas industry. Such forward-looking statements may concern, among other things, development activities, future development plans, increased density drilling, reserve-to-production ratios, future production, future net cash flows, maintenance projects, development, production, regulatory and other costs, oil and gas prices and expectations for future demand, the
impact of inflation and economic downturns on economic activity, government policy and its impact on oil and gas prices and future demand, the development and competitiveness of alternative energy sources, pricing differentials, proved reserves,
production levels, arbitration, litigation, liquidity, financing, political and regulatory matters, such as tax and environmental policy, climate policy, trade barriers, sanctions, war and other political or security disturbances, and competition.
Such forward-looking statements are based on XTO Energys and the Trustees current plans, expectations, assumptions, projections and estimates and are identified by words such as may, expects, intends,
plans, projects, anticipates, predicts, believes, goals, estimates, should, could, would, and similar words that convey the
uncertainty of future events. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual financial and operational results may differ materially
from expectations, estimates or assumptions expressed in, implied in, or forecasted in such forward-looking statements. Some of the risk factors that could cause actual results to differ materially are explained in Item 1A. Risk Factors.  26




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##### Table of Contents

ITEM 7A.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Not required for smaller reporting companies; the Trust has elected to omit this information.  ITEM 8.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA  PageReport of Independent Registered Public Accounting Firm (PCAOB 238)


28Statements of Assets, Liabilities and Trust Corpus


29Statements of Distributable Income


29Statements of Changes in Trust Corpus


29Notes to Financial Statements


30 All financial statement schedules are omitted as they are inapplicable or the required information has been included in
the consolidated financial statements or notes thereto.  27




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##### Table of Contents

Report of Independent Registered Public Accounting Firm To the Unitholders of Cross Timbers Royalty Trust and Argent Trust Company, as Trustee Opinion on the Financial Statements We have audited the accompanying
statements of assets, liabilities and trust corpus of Cross Timbers Royalty Trust (the Trust) as of December 31, 2023 and 2022,and the related statements of distributable income and changes in trust corpus for the years then
ended, including the related notes (collectively referred to as the financial statements).In our opinion, the financial statements present fairly, in all material respects, the assets, liabilities and trust corpus of the Trust as
of December 31, 2023 and 2022,and its distributable income and its changes in trust corpus for the years then ended in conformity with the modified cash basis of accounting described in Note 2. Basis for Opinion These financial statements are the responsibility
of the Trustee. Our responsibility is to express an opinion on the Trustsfinancial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB)
and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of its internal control over financial
reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trusts internal control over financial
reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial
statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also
included evaluating the accounting principles used and significant estimates made by the Trustee, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Basis of Accounting As described in Note 2, these financial
statements were prepared on the modified cash basis of accounting, which is a comprehensive basis of accounting other than generally accepted accounting principles. Critical Audit Matters Critical audit matters are matters arising
from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (i) relate to accounts or disclosures that are material to the financial statements and
(ii) involved our especially challenging, subjective, or complex judgments. We determined there are no critical audit matters. /s/ PricewaterhouseCoopers LLP Dallas, Texas April 1, 2024 We have served as the Trusts auditor since 2011.  28




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##### Table of Contents

CROSS TIMBERS ROYALTY TRUST Statements of Assets, Liabilities and Trust Corpus  December 312023


2022AssetsCash and short-term investments

$
1,852,320


$
1,898,638Interest to be received


5,062



3,372Net profits interests in oil and gas properties - net (Notes 1 and 2)


2,671,583



2,961,955$
4,528,965


$
4,863,965Liabilities and Trust CorpusDistribution payable to unitholders

$
857,382


$
902,010Expense reserve (a)


1,000,000



1,000,000Trust corpus (6,000,000 units of beneficial interest authorized and outstanding)


2,671,583



2,961,955$
4,528,965


$
4,863,965  (a)
Expense reserve allows the Trustee to pay its obligations should it be unable to pay them out of the net profits income.
The reserve is currently funded at $1,000,000. Statements of Distributable Income  Year Ended December 312023


2022Net profits income

$
12,300,176


$
12,493,727Interest income


63,897



15,464Total income


12,364,073



12,509,191Administration expense


816,185



765,955Distributable income

$
11,547,888


$
11,743,236Distributable income per unit (6,000,000 units)

$
1.924648


$
1.957206 Statements of Changes in Trust Corpus  Year Ended December 312023


2022Trust corpus, beginning of year

$
2,961,955


$
3,266,356Amortization of net profits interests


(290,372
)


(304,401
)Distributable income


11,547,888



11,743,236Distributions declared


(11,547,888
)


(11,743,236
)Trust corpus, end of year

$
2,671,583


$
2,961,955 See accompanying notes to financial statements.  29




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##### Table of Contents

CROSS TIMBERS ROYALTY TRUST NOTES TO FINANCIAL STATEMENTS 1. Trust Organization and
Provisions Cross Timbers Royalty Trust (the Trust) was created on February 12, 1991, by predecessors of XTO Energy Inc.
(XTO Energy), when the following net profits interests were conveyed under five separate conveyances to the Trust effective October 1, 1990, in exchange for 6,000,000 units of beneficial interest in the Trust:  1.
90% net profits interests in certain producing and nonproducing royalty and overriding royalty interest properties in
Texas, Oklahoma and New Mexico; and  2.
75% net profits interests in certain working interest properties in Texas and Oklahoma. The underlying properties from which the net profits interests were carved are currently owned by XTO Energy or other affiliated companies of ExxonMobil
(Note 5). The Trusts initial public offering was in February 1992. Effective December 30, 2022, Argent Trust Company
(Argent) became the Trustee of the Trust. The defined term Trustee as used herein shall refer to Simmons Bank for periods from February 20, 2018, through December 29, 2022, and shall refer to Argent for periods on
and after December 30, 2022. The Trust indenture provides, among other provisions, that:  1.
the Trust may not engage in any business activity or acquire any assets other than the net profits interests and specific
short-term cash investments;  2.
the Trust may not dispose of all or part of the net profits interests unless approved by holders of 80 percent or
more of the outstanding Trust units, or upon Trust termination, and any sale must be for cash with the proceeds promptly distributed to the unitholders on the next declared distribution;  3.
the Trustee may establish a cash reserve for payment of any liability that is contingent or not currently payable;  4.
the Trustee may borrow funds required to pay Trust liabilities if fully repaid prior to further distributions to
unitholders;  5.
the Trustee will make monthly cash distributions to unitholders (Note 3); and  6.
the Trust will terminate upon the first occurrence of:  a)
disposition of all net profits interests pursuant to terms of the Trust indenture;  b)
gross revenue of the Trust is less than $1 million per year for two successive years; or  c)
a vote of holders of 80 percent or more of the outstanding Trust units to terminate the Trust in accordance with
provisions of the Trust indenture. 2. Basis of Accounting The financial statements of Cross Timbers Royalty Trust (the Trust) are prepared on the following basis and are not intended to present
financial position and results of operations in conformity with U.S. generally accepted accounting principles (U.S. GAAP):  1.
net profits income is recorded in the month received by the Trustee (Note 3);  2.
interest income, interest to be received and distribution payable to unitholders include interest to be earned on net
profits income from the monthly record date (last business day of the month) through the date of the next distribution;  3.
trust expenses are recorded based on liabilities paid and cash reserves established by the Trustee for liabilities and
contingencies; and  4.
distributions to unitholders are recorded when declared by the Trustee (Note 3).  30




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##### Table of Contents

CROSS TIMBERS ROYALTY TRUST NOTES TO FINANCIAL STATEMENTS(Continued)  The most significant differences between the Trusts financial statements and those prepared in
accordance with U.S. GAAP are:  1.
net profits income is recognized in the month received rather than accrued in the month of production;  2.
expenses are recognized when paid rather than when incurred; and  3.
cash reserves may be established by the Trustee for certain contingencies that would not be recorded under U.S. GAAP. This comprehensive basis of accounting corresponds to the accounting permitted for royalty trusts by the U.S. Securities and
Exchange Commission, as specified by Staff Accounting Bulletin Topic 12:E, Financial Statements of Royalty Trusts. Most accounting pronouncements
apply to entities whose financial statements are prepared in accordance with U.S. GAAP, directing such entities to accrue or defer revenues and expenses in a period other than when such revenues were received or expenses were paid. Because the
Trusts financial statements are prepared on the modified cash basis, as described above, most accounting pronouncements are not applicable to the Trusts financial statements. Impairment of Net Profits Interests The Trustee
reviews the Trusts net profits interests (NPI) in oil and gas properties for impairment whenever events or circumstances indicate that the carrying value of the NPI may not be recoverable. In general, the Trustee does not view
temporarily low prices as an indication of impairment. The markets for crude oil and natural gas have a history of significant price volatility and though prices will occasionally drop significantly, industry prices over the long term will continue
to be driven by market supply and demand. If events and circumstances indicate the carrying value may not be recoverable, the Trustee would use the estimated undiscounted future net cash flows from the NPI to evaluate the recoverability of the Trust
assets. If the undiscounted future net cash flows from the NPI are less than the NPI carrying value, the Trust would recognize an impairment loss for the difference between the NPI carrying value and the estimated fair value of the NPI. The
determination as to whether the NPI is impaired requires a significant amount of judgment by the Trustee and is based on the best information available to the Trustee at the time of the evaluation, including commodity pricing and other information
provided by XTO Energy such as estimates of future production and development and operating expenses. During 2023, including fourth quarter, no
trigger event occurred that would indicate a need for an impairment assessment. Accordingly, there was no impairment of the NPI as of December 31, 2023. Any impairment recorded for book purposes will not result in a deductible loss by the
unitholders for tax purposes until the loss is recognized. Net profits interests in oil and gas properties The initial carrying value of the net profits interests of $61,100,449 was XTO Energys historical net book value of the interests on
February 12, 1991, the date of the transfer to the Trust. Amortization of the net profits interests is calculated on a unit-of-production basis using proved
reserves and charged directly to trust corpus. Accumulated amortization was $58,428,866 as of December 31, 2023, and $58,138,494 as of December 31, 2022. Amortization of the NPI does not impact unitholder distributions or the determination
of proved reserves.  31




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##### Table of Contents

CROSS TIMBERS ROYALTY TRUST NOTES TO FINANCIAL STATEMENTS(Continued)  3. Distributions to Unitholders The Trustee determines the amount to be distributed to unitholders each month by totaling net profits income, interest income and other cash receipts,
and subtracting liabilities paid and adjustments in cash reserves established by the Trustee. The resulting amount (with estimated interest to be received on such amount through the distribution date) is distributed to unitholders of record within
ten business days after the monthly record date, which is the last business day of the month. Net profits income received by the Trustee consists
of net proceeds received in the prior month by XTO Energy from the underlying properties multiplied by the net profits percentage of 90% or 75%. Net proceeds are the gross proceeds received from the sale of production, less applicable costs. For the
90% net profits interests, such costs generally include production and property taxes, legal costs, and marketing and transportation charges. In addition to these costs, the 75% net profits interests include deductions for production expense and
development costs. XTO Energy, as owner of the underlying properties, computes net profits income separately for each of the five conveyances. If
costs exceed gross proceeds for any conveyance, such excess costs must be recovered, with accrued interest, from future net proceeds of that conveyance and cannot reduce net profits income from the other conveyances (Note 7). 4. Income Taxes For federal income tax purposes, the Trust
constitutes a fixed investment trust that is taxed as a grantor trust. A grantor trust is not subject to tax at the trust level. Accordingly, no provision for income taxes has been made in the financial statements. The unitholders are considered to
own the Trusts income and principal as though no trust were in existence. The income of the Trust is deemed to have been received or accrued by each unitholder at the time such income is received or accrued by the Trust and not when
distributed by the Trust. Impairments recorded for book purposes will not result in a deductible loss by the unitholders for tax purposes until the loss is recognized. All revenues from the Trust are from sources within Texas, Oklahoma or New Mexico. Because it distributes all of its net income to unitholders, the
Trust has not been taxed at the trust level in New Mexico or Oklahoma. While the Trust has not owed tax, the Trustee is required to file an Oklahoma income tax return reflecting the income and deductions of the Trust attributable to properties
located in that state, along with a schedule that includes information regarding distributions to unitholders. Oklahoma and New Mexico tax the income of nonresidents from real property located within those states, and the Trust has been advised by
counsel that such states will tax nonresidents on income from the net profits interests located in those states. Oklahoma and New Mexico also impose a corporate income tax that may apply to unitholders organized as corporations (subject to certain
exceptions for S corporations and limited liability companies, depending on their treatment for federal income tax purposes). Texas imposes a
franchise tax at a rate of 0.75 percent on gross revenues less certain deductions, as specifically set forth in the Texas franchise tax statutes. Entities subject to tax generally include trusts and most other types of entities that provide
limited liability protection, unless otherwise exempt. Trusts that receive at least 90 percent of their federal gross income from certain passive sources, including royalties from mineral properties and other
non-operated mineral interest income, and do not receive more than 10 percent of their income from operating an active trade or business, generally are exempt from the Texas franchise tax as passive
entities. The Trust has been and expects to continue to be exempt from Texas franchise tax as a passive entity. Because the Trust should be exempt from Texas franchise tax at the trust level as a passive entity, each unitholder that is a
taxable entity under the Texas franchise tax will generally be required to include its Texas portion of Trust revenues in its own Texas franchise tax computation. This revenue is sourced to Texas under provisions of the Texas Administrative Code
providing that such income is sourced according to the principal place of business of the Trust, which is Texas.  32




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##### Table of Contents

CROSS TIMBERS ROYALTY TRUST NOTES TO FINANCIAL STATEMENTS(Continued)  The Trust may be required to bear a portion of the settlement costs arising from
theChieftain royalty class action settlement. For information on contingencies, see Note 6 to Financial Statements. In the event that the Trust is determined to be responsible for such costs, XTO Energy will deduct the costs
in its calculation of the net profits income payable to the Trust from the applicable net profits interests. Thus, for unitholders, the portion of the settlement payment to the Chieftainroyalty owner class for which the Trust is determined
to be responsible will be reflected through a reduction in net profits income received from the Trust and thus in a reduction in the gross royalty income reported by and taxable to the unitholders. In the event that the Trustee objects to such
claimed reductions, the Trustee may also incur legal fees in representing the Trusts interests. For unitholders, such costs would be reflected through an increase in the Trusts administrative expenses, which would be deductible by
unitholders in determining the net royalty income from the Trust. Each unitholder should consult their own tax advisor regarding income tax
requirements, if any, applicable to such persons ownership of Trust units. 5. Related Party Transactions The underlying properties from which the net profits interests were carved are currently owned by XTO Energy or other affiliated companies of ExxonMobil. Approximately 23 of the underlying royalty interests burden working interests in properties operated by XTO Energy. XTO Energy operates the Hewitt
Unit which is one of the properties underlying the Oklahoma 75% net profits interests. Other than these properties, XTO Energy and ExxonMobil do not operate or control any of the underlying properties or related working interests. In computing net proceeds for the 75% net profits interests (Note 3), XTO Energy deducts an overhead charge as reimbursement for costs associated with
monitoring these interests. This overhead charge at December 31, 2023, was approximately $48,224 per month, or $578,688 annually (net to the Trust of $36,168 per month, or $434,016 annually), and is subject to annual adjustment based on an oil
and gas industry index. XTO Energy deducts a monthly overhead charge for reimbursement of administrative expenses as operator of the Hewitt Unit,
which is one of the properties underlying the Oklahoma 75% net profits interests. As of December 31, 2023, this charge was approximately $33,972 per month, or $407,664 annually (net to the Trust of $25,479 per month, or $305,748 annually), and
is subject to annual adjustment based on an oil and gas industry index. On June 25, 2010, XTO Energy became a wholly owned subsidiary of Exxon
Mobil Corporation. 6. Contingencies Litigation A federal district court approved the settlement of a royalty class action lawsuit against XTO Energy Inc. (Chieftain Royalty Company v. XTO Energy
Inc.) in March 2018. In July 2018, the class plaintiffs submitted their plan to allocate the settlement funds among members of the class. After that plan of allocation was approved, XTO Energy advised the Trustee that, based upon that plan,
approximately $40,000 should be allocated to the Trust as additional production costs. The Trustee has objected to similar claims relating to the
Chieftain settlement with respect to another trust for which it serves as trustee (the Hugoton Royalty Trust) in an arbitration styled Simmons Bank (successor to Southwest Bank and Bank of America, N.A.) vs. XTO Energy Inc. through the
American Arbitration Association. In that arbitration, the Trustee requested a declaratory judgment that the Chieftainsettlement is not a production cost and that XTO Energy is prohibited from charging the settlement as a production cost
under the conveyance or otherwise reducing the Hugoton Royalty Trusts payments now or in the future as a result of the Chieftain litigation. Similar issues have arisen as between XTO  33




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##### Table of Contents

CROSS TIMBERS ROYALTY TRUST NOTES TO FINANCIAL STATEMENTS(Continued)  Energy and the Trust, but it was agreed those issues would be considered once the Panel issued its decisions with respect to the Hugoton Royalty Trust. On January 20, 2021, the Panel issued
its Corrected Interim Final Award (i) reject[ing] the Trusts contention that XTO has no right under the Conveyance to charge the [Hugoton Royalty] Trust with amounts XTO paid under section 1.18(a)(i) as royalty obligations to settle the
Chieftain litigation and (ii) stating [t]he next phase will determine how much of the Chieftain settlement can be so charged, if any of it can be, in the exercise of the right found by the Panel. Following
briefing by both parties, on May 18, 2021, the Panel issued its second interim final award over the amount of XTO Energys settlement in the Chieftain class action lawsuit that can be charged to the [Hugoton Royalty] Trust as a
production cost. The allocation of a portion of the Chieftain settlement to the Trust will be considered once all issues in the arbitration have been fully resolved. Although the arbitration is not terminated, the final hearing, previously
scheduled on November 8, 2023, was cancelled. Other Several states have enacted legislation requiring state income tax withholding from payments made to nonresident recipients of oil and gas proceeds.
After consultation with its tax counsel, the Trustee believes that it is not required to withhold on payments made to the unitholders. However, regulations are subject to change by the various states, which could change this conclusion. Should
amounts be withheld on payments made to the Trust or the unitholders, distributions to the unitholders would be reduced by the required amount, subject to the filing of a claim for refund by the Trust or unitholders for such amount. 7. Excess Costs If monthly costs exceed revenues for any
conveyance, such excess costs must be recovered, with accrued interest, from future net proceeds of that conveyance and cannot reduce net proceeds from other conveyances. The following summarizes excess costs activity, cumulative excess costs balances and accrued interest to be recovered by conveyance as calculated by XTO
Energy:  UnderlyingTX WI


OK WI


TotalCumulative excess costs remaining at 12/31/22

$
1,130,627


$
741,687


$
1,872,314Net excess costs (recovery) for the quarter ended 3/31/23


39,834



(151,450
)


(111,616
)Net excess costs (recovery) for the quarter ended 6/30/23


343,437



(515,164
)


(171,727
)Net excess costs (recovery) for the quarter ended 9/30/23


136,628



(75,073
)


61,555Net excess costs (recovery) for the quarter ended 12/31/23


625,543







625,543Cumulative excess costs remaining at 12/31/23


2,276,069







2,276,069Accrued interest at 12/31/23


814,892







814,892Total remaining to be recovered at 12/31/23

$
3,090,961


$



$
3,090,961  NPITX WI


OK WI


TotalCumulative excess costs remaining at 12/31/22

$
847,970


$
556,265


$
1,404,235Net excess costs (recovery) for the quarter ended 3/31/23


29,876



(113,587
)


(83,711
)Net excess costs (recovery) for the quarter ended 6/30/23


257,577



(386,373
)


(128,796
)Net excess costs (recovery) for the quarter ended 9/30/23


102,472



(56,305
)


46,167Net excess costs (recovery) for the quarter ended 12/31/23


469,158







469,158Cumulative excess costs remaining at 12/31/23


1,707,053







1,707,053Accrued interest at 12/31/23


611,169







611,169Total remaining to be recovered at 12/31/23

$
2,318,222


$



$
2,318,222  34




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##### Table of Contents

CROSS TIMBERS ROYALTY TRUST NOTES TO FINANCIAL STATEMENTS(Continued)  For the year ended December 31, 2023, excess costs on properties underlying the Texas working
interest conveyance increased by $1,145,442 ($859,083 net to the Trust). This includes net excess costs of $625,543 ($469,158 net to the Trust) for the quarter ended December 31, 2023. For the year ended December 31, 2023, net recoveries of excess costs were $741,687 ($556,265 net to the Trust) and recoveries of accrued interest
were $31,470 ($23,603 net to the Trust) on properties underlying the Oklahoma working interest conveyance. Underlying cumulative excess costs for
the Texas working interest conveyance remaining as of December 31, 2023, totaled $3.1 million ($2.3 million net to the Trust), including accrued interest of $0.8 million ($0.6 million net to the Trust). 8. Supplemental Oil and Gas Reserve Information (Unaudited) Oil and
Natural Gas Reserves Proved oil and gas reserves have been estimated by independent petroleum engineers. Proved reserves are those
quantities of oil and natural gas, which, by analysis of geoscience and engineering data can be estimated with reasonable certainty to be economically producible from a given date forward, from known reservoirs and under existing economic
conditions, operating methods, and government regulation before the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain. Proved developed reserves are the quantities expected to
be recovered through existing wells with existing equipment and operating methods in which the cost of the required equipment is relatively minor compared with the cost of a new well. Due to the inherent uncertainties and the limited nature of
reservoir data, such estimates are subject to change as additional information becomes available. The reserves actually recovered and the timing of production of these reserves may be substantially different from the original estimate. Revisions
result primarily from new information obtained from development drilling and production history and from changes in economic factors. Standardized Measure The standardized measure of discounted future net cash flows and changes in such cash flows are prepared using assumptions required by the
Financial Accounting Standards Board. Such assumptions include the use of 12-month average prices for oil and gas, based on the first-day-of-the-month price for each month in the period, and year end costs for estimated future development and production expenditures to produce the proved
reserves, including recovery of cumulative excess costs remaining at year end. Future net cash flows are discounted at an annual rate of 10 percent. No provision is included for federal income taxes since future net cash flows are not subject
to taxation at the trust level. The standardized measure does not represent XTO Energys or the Trustees estimate of future cash flows
or the value of proved oil and gas reserves. Probable and possible reserves, which may become proved in the future, are excluded from the calculations. Furthermore, prices used to determine the standardized measure are influenced by supply and
demand as affected by recent economic conditions as well as other factors and may not be the most representative in estimating future revenues or reserve data. Estimated costs to plug and abandon wells on the underlying working interest properties at the end of their productive lives have not been deducted from
cash flows since this is not a legal obligation of the Trust. These costs are the legal obligation of XTO Energy as the owner of the underlying working interests and will only be deducted from net proceeds payable to the Trust if net proceeds from
the related conveyance exceed such costs when paid, subject to excess cost carryforward provisions (Note 3).  35




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##### Table of Contents

CROSS TIMBERS ROYALTY TRUST NOTES TO FINANCIAL STATEMENTS(Continued)  Because overhead costs charged by XTO Energy are deducted in the calculation of net proceeds, the
standardized measure for the underlying properties and net profits interests have been reduced by these estimated overhead costs. See Note 5 to Financial Statements under Item 8. Financial Statements and Supplementary Data for more
information on overhead costs charged by XTO Energy. Oil prices used to determine the standardized measure were based on average realized oil
prices of $74.88 per Bbl in 2023, and $93.06 per Bbl in 2022. The weighted average realized gas prices used to determine the standardized measure were $4.40 per Mcf in 2023, and $8.60 per Mcf in 2022. Reserve quantities and revenues for the net profits interests were estimated from projections of reserves and revenues attributable to the underlying
properties. Since the Trust has defined net profits interests, the Trust does not own a specific percentage of the oil and gas reserves. Oil and gas reserves are allocated to the net profits interests by dividing Trust net cash inflows by 12-month average oil and gas prices. Any fluctuations in 12-month average prices or estimated costs will result in revisions to the estimated reserve quantities allocated to
the net profits interests, which may not correlate with revisions of underlying proved reserves. Significant revisions in reserves could potentially impact the pace of the amortization of the net profits interests. Proved Reserves  Net Profits Interests


UnderlyingProperties90% NetProfits Interests


75% NetProfits Interests


Total(in thousands)

Oil(Bbls)


Gas(Mcf)


Oil(Bbls)


Gas(Mcf)


Oil(Bbls)


Gas(Mcf)


Oil(Bbls)


Gas(Mcf)Balance, December 31, 2021


1,035



12,550



243



71



1,278



12,621



2,500



14,308Extensions, additions and discoveries


14



149











14



149



15



166Revisions of prior estimates


(658
)


3,278



162



59



(496
)


3,337



(465
)


3,810Production


(42
)


(1,169
)


(16
)






(58
)


(1,169
)


(237
)


(1,383
)Balance, December 31, 2022


349



14,808



389



130



738



14,938



1,813



16,901Extensions, additions and discoveries


5



13











5



13



6



14Revisions of prior estimates


(30
)


(2,452
)


(93
)


3



(123
)


(2,449
)


(240
)


(2,448
)Production


(54
)


(1,452
)


(18
)


(1
)


(72
)


(1,453
)


(192
)


(1,774
)Balance, December 31, 2023


270



10,917



278



132



548



11,049



1,387



12,693 Extensions, additions and discoveries of proved gas reserves are primarily because of development in the Mid-Continent area. Revisions of prior estimates are primarily related to changes in prices and costs. Proved Developed
Reserves  Net Profits Interests


UnderlyingProperties90% NetProfits Interests


75% NetProfits Interests


Total(in thousands)

Oil(Bbls)


Gas(Mcf)


Oil(Bbls)


Gas(Mcf)


Oil(Bbls)


Gas(Mcf)


Oil(Bbls)


Gas(Mcf)December 31, 2022


349



14,808



389



130



738



14,938



1,813



16,901December 31, 2023


270



10,917



278



132



548



11,049



1,387



12,693  36




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##### Table of Contents

CROSS TIMBERS ROYALTY TRUST NOTES TO FINANCIAL STATEMENTS(Continued)  Standardized Measure of Discounted Future Net Cash Flows from Proved Reserves  90% NetProfits Interests


75% NetProfits Interests


TotalDecember 31


December 31


December 31(in thousands)

2023


2022


2023


2022


2023


2022Net Profits InterestsFuture cash inflows

$
66,492


$
159,414


$
21,966


$
37,305


$
88,458


$
196,719Future production taxes


(5,977
)


(14,577
)


(1,581
)


(2,623
)


(7,558
)


(17,200
)Future net cash flows


60,515



144,837



20,385



34,682



80,900



179,51910% discount factor


(27,429
)


(71,344
)


(8,768
)


(15,276
)


(36,197
)


(86,620
)Standardized measure

$
33,086


$
73,493


$
11,617


$
19,406


$
44,703


$
92,899Underlying PropertiesFuture cash inflows


$
159,668


$
313,988Future costs



(65,250
)


(106,817
)Future net cash flows



94,418



207,17110% discount factor



(42,157
)


(99,673
)Standardized measure


$
52,261


$
107,498 Changes in Standardized Measure of Discounted Future Net Cash Flows from Proved Reserves  90% NetProfits Interests


75% NetProfits Interests


Total(in thousands)

2023


2022


2023


2022


2023


2022Net Profits InterestsStandardized measure, January 1

$
73,493


$
62,226


$
19,406


$
8,822


$
92,899


$
71,048Extensions, additions and discoveries


273



1,359











273



1,359Accretion of discount


6,262



5,278



1,799



801



8,061



6,079Revisions of prior estimates, changes in price and other


(35,897
)


15,575



(8,334
)


11,332



(44,231
)


26,907Net profits income


(11,045
)


(10,945
)


(1,254
)


(1,549
)


(12,299
)


(12,494
)Standardized measure, December 31

$
33,086


$
73,493


$
11,617


$
19,406


$
44,703


$
92,899Underlying PropertiesStandardized measure, January 1


$
107,498


$
81,003Revisions:Prices and costs



(44,236
)


41,556Quantity estimates



(5,510
)


(6,503
)Accretion of discount



9,264



6,903Future development costs



(1,062
)


(2,657
)Other



(50
)


(88
)Net revisions



(41,594
)


39,211Extensions, additions and discoveries



303



1,510Production



(15,008
)


(16,883
)Development costs



1,062



2,657Net change



(55,237
)


26,495Standardized measure, December 31


$
52,261


$
107,498  37




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##### Table of Contents

CROSS TIMBERS ROYALTY TRUST NOTES TO FINANCIAL STATEMENTS(Continued)  9. Quarterly Financial Data (Unaudited) The following is a summary of net profits income, distributable income and distributable income per unit by quarter for 2023 and 2022:  Net ProfitsIncome


DistributableIncome


DistributableIncome perUnit2023First Quarter

$
3,912,704


$
3,639,198


$
0.606533Second Quarter


3,163,059



3,040,614



0.506769Third Quarter


2,676,180



2,451,192



0.408532Fourth Quarter


2,548,233



2,416,884



0.402814$
12,300,176


$
11,547,888


$
1.9246482022First Quarter

$
1,951,672


$
1,684,932


$
0.280822Second Quarter


3,767,617



3,558,996



0.593166Third Quarter


3,817,493



3,736,260



0.622710Fourth Quarter


2,956,945



2,763,048



0.460508$
12,493,727


$
11,743,236


$
1.957206 10. Administration Expense Administrative expenses are incurred so that the Trustee may meet its reporting obligations to the unitholders and regulatory entities and otherwise
manage the administrative functions of the Trust. These obligations include, but are not limited to, all expenses, taxes, compensation to the Trustee for managing the Trust, fees to consultants, accountants, attorneys, transfer agents, other
professional and expert persons, expenses for clerical and other administrative assistance, and fees and expenses for all other services. See Item 11. Executive Compensation, for further information on the remuneration received by the
Trustee.  38




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ITEM 9.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None.  ITEM 9A.
CONTROLS AND PROCEDURES Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures The Trustee conducted an evaluation of the Trusts disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended. Based on this evaluation, the Trustee has concluded that the Trusts disclosure controls and procedures were effective as of the end
of the period covered by this annual report. In its evaluation of disclosure controls and procedures, the Trustee has relied, to the extent considered reasonable, on information provided by XTO Energy. Trustees Report on Internal Control Over Financial Reporting The Trustee is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) promulgated under the Securities Exchange Act of 1934, as amended. The Trustee conducted an evaluation of the effectiveness of the Trusts internal control over financial reporting based on the
criteria established in Internal Control Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on the Trustees evaluation under the framework in
Internal Control Integrated Framework (2013), the Trustee concluded that the Trusts internal control over financial reporting was effective as of December 31, 2023. Changes in Internal Control Over Financial Reporting There were no changes in the Trusts internal control over financial reporting during the quarter ended December 31, 2023, that have materially
affected, or are reasonably likely to materially affect, the Trusts internal control over financial reporting.  ITEM 9B.
OTHER INFORMATION The Trust has no directors or officers, and as a result, no such persons adopted or terminated a Rule
10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement, as each term is defined in Item 408(a) of
Regulation S-K.  ITEM 9C.
DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS Not applicable.  39




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PART III  ITEM 10.
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE  (a)
Directors, Officers and Committees. The Trust has no directors, executive officers, audit committee, audit
committee financial expert, compensation committee or nominating committee. The Trustee is a corporate trustee which may be removed, with or without cause, by the affirmative vote of the holders of a majority of all the units then outstanding.  (b)
Section16 (a) Beneficial Ownership Reporting Compliance. Section 16(a) of the Securities
Exchange Act of 1934 requires that directors, officers, and beneficial owners of more than 10 percent of the registrants equity securities file initial reports of beneficial ownership and reports of changes in beneficial ownership with
the Securities and Exchange Commission and the New York Stock Exchange. To the Trustees knowledge, based solely on the information furnished to the Trustee, the Trustee is unaware of any person that failed to file on a timely basis reports
required by Section 16(a) filing requirements with respect to the Trust units of beneficial interest during and for the year ended December 31, 2023.  (c)
Code of Ethics. Because the Trust has no employees, it does not have a code of ethics. Employees of the Trustee,
Argent Trust Company, must comply with the companys code of ethics which may be found at www.argentfinancial.com.  ITEM 11.
EXECUTIVE COMPENSATION  (a)
Compensation Committee Interlocks and Insider Participation/Compensation Committee Report.The Trust has no
officers or directors and is administered by a trustee. The Trust does not have a compensation committee or maintain any equity compensation plans and there are no units reserved for issuance under such plans.  (b)
Compensation of the Trustee. The Trustee received the following annual compensation for the fiscal years ended
December 31, 2022, through December 31, 2023, as specified in the Trust indenture:  2023


2022Argent Trust Company, Trustee (1)

$
98,795



Simmons Bank, Trustee (1)





$
91,079  (1)
Under the Trust indenture, the trustee is entitled to an administrative fee of: (i) 1/20 of 1 percent of the first
$100 million of the annual gross revenue of the Trust, and 1/30 of 1 percent of the annual gross revenue of the Trust in excess of $100 million, and (ii) trustees standard hourly rates for time in excess of 300 hours
annually.  ITEM 12.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED UNITHOLDER MATTERS  (a)
Equity Compensation Plans and Trust Repurchases.The Trust has no equity compensation plans. The Trust has not
repurchased any units during the fourth quarter of fiscal 2023.  (b)
Security Ownership of Certain Beneficial Owners. The Trustee is not aware of any person who beneficially owns more
than 5 percent of the outstanding units.  (c)
Security Ownership of Management. The Trust has no directors or executive officers. Argent Trust Company, the
Trustee, held as of February 26, 2024, an aggregate of 3,720 units in various fiduciary capacities, and it had sole voting and investment power with respect to all such units.  (d)
Changes in Control. The Trustee knows of no arrangements which may subsequently result in a change in control of
the Trust.  ITEM 13.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE The underlying properties from which the net profits interests were carved are currently owned by XTO Energy or other affiliated companies of ExxonMobil.  40




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##### Table of Contents

Approximately 23 of the underlying royalty interests burden working interests in properties operated
by XTO Energy. XTO Energy operates the Hewitt Unit which is one of the properties underlying the Oklahoma 75% net profits interests. Other than these properties, XTO Energy and ExxonMobil do not operate or control any of the underlying properties or
related working interests. In computing net proceeds for the 75% net profits interests (Note 3), XTO Energy deducts an overhead charge as
reimbursement for costs associated with monitoring these interests. This overhead charge at December 31, 2023, was approximately $48,224 per month, or $578,688 annually (net to the Trust of $36,168 per month, or $434,016 annually), and is
subject to annual adjustment based on an oil and gas industry index. XTO Energy deducts a monthly overhead charge for reimbursement of
administrative expenses as operator of the Hewitt Unit, which is one of the properties underlying the Oklahoma 75% net profits interests. As of December 31, 2023, this charge was approximately $33,972 per month, or $407,664 annually (net to the
Trust of $25,479 per month, or $305,748 annually), and is subject to annual adjustment based on an oil and gas industry index. On June 25,
2010, XTO Energy became a wholly owned subsidiary of Exxon Mobil Corporation. As of March 11, 2024, XTO Energy did not own any units. See Item 11. Executive Compensation, for the remuneration received by the Trustee for the fiscal years ended December 31, 2022, through
December 31, 2023. As noted in Item 10. Directors, Executive Officers and Corporate Governance, the Trust has no directors, executive
officers, audit committee, audit committee financial expert, compensation committee or nominating committee. The Trustee is a corporate trustee which may be removed, with or without cause, by the affirmative vote of the holders of a majority of all
the units then outstanding.  ITEM 14.
PRINCIPAL ACCOUNTANT FEES AND SERVICES Fees for services performed by PricewaterhouseCoopers LLP for the years ended December 31, 2023 and 2022 are:  2023


2022Audit fees-PwC

$
223,000


$
210,000Audit-related fees






Tax fees






All other fees






$223,000


$
210,000 The Trust does not have an audit committee. Any pre-approval and approval of all
services performed by the principal auditor or any other professional services firms and related fees are granted by the Trustee.  41




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##### Table of Contents

PART IV  ITEM 15.
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES  (a)
The following documents are filed as a part of this report:  1.
Financial Statements (included in Item 8 of this report) Report of Independent Registered Public Accounting Firm Statements of Assets, Liabilities and Trust Corpus at December 31, 2023 and 2022 Statements of Distributable Income for the years ended December 31, 2023 and 2022 Statements of Changes in Trust Corpus for the years ended December 31, 2023 and 2022 Notes to Financial Statements  2.
Financial Statement Schedules Financial statement schedules are omitted because of the absence of conditions under which they are required or because the required information is given
in the financial statements or notes thereto.  3.
Exhibits  (4)(a)
Cross Timbers Royalty Trust Indenture amended and restated on January 13, 1992 by NationsBank, N.A., as
Trustee, heretofore filed as Exhibit 3.1 to the Trusts Registration Statement No. 33-44385 filed with the Securities and Exchange Commission on February 19, 1992, is incorporated herein by
reference. (P)  (b)
Amendment No. 
1 to Amended and Restated Royalty Trust Indenture, dated October 
13, 2022, of Cross Timbers Royalty Trust, heretofore filed as Exhibit 4.1 to the Trusts Current Report on Form 8-K filed with the Securities and Exchange Commission on October 
14, 2022, is incorporated herein by reference.  (c)
Net Overriding Royalty Conveyance (Cross Timbers Royalty Trust, 90% - Texas) from South Timbers Limited Partnership, West
Timbers Limited Partnership, North Timbers Limited Partnership, East Timbers Limited Partnership, Hickory Timbers Limited Partnership, and Cross Timbers Partners, L.P. (predecessors of XTO Energy) to NCNB Texas National Bank, as Trustee, dated
February 12, 1991 (without Schedules A and B), heretofore filed as Exhibit 10.1 to the Trusts Registration Statement No. 33-44385 filed with the Securities and Exchange Commission on
February 19, 1992, is incorporated herein by reference. (P)  (d)
Correction to Net Overriding Royalty Conveyance (Cross Timbers Royalty Trust, 90% - Texas) from South Timbers Limited
Partnership, West Timbers Limited Partnership, North Timbers Limited Partnership, East Timbers Limited Partnership, Hickory Timbers Limited Partnership, and Cross Timbers Partners, L.P. (predecessors of XTO Energy) to NCNB Texas National Bank, as
Trustee, dated September 23, 1991 (without Schedules A and B), heretofore filed as Exhibit 10.2 to the Trusts Registration Statement No. 33-44385 filed with the Securities and Exchange
Commission on February 19, 1992, is incorporated herein by reference. (P)  (e)
Net Overriding Royalty Conveyance (Cross Timbers Royalty Trust, 75% - Texas) from South Timbers Limited Partnership, West
Timbers Limited Partnership, North Timbers Limited Partnership, East Timbers Limited Partnership, Hickory Timbers Limited Partnership, and Cross Timbers Partners, L.P. (predecessors of XTO Energy) to NCNB Texas National Bank, as Trustee, dated
February 12, 1991 (without Schedules A and B), heretofore filed as Exhibit 10.5 to the Trusts Registration Statement No. 33-44385 filed with the Securities and Exchange Commission on
February 19, 1992, is incorporated herein by reference. (P)  42




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##### Table of Contents

(23)
Consent of Miller and Lents, Ltd.  (31)
Rule 13a-14(a)/15d-14(a) Certification  (32)
Section 1350 Certification  (97)
Cross Timbers Royalty Trust Executive Officer Compensation Recovery Policy  (99.1)
Miller and Lents, Ltd. Report Copies of the above Exhibits are available to any unitholder, at the actual cost of reproduction, upon written request to the Trustee, Argent Trust
Company, 3838 Oak Lawn Ave, Suite 1720, Dallas, Texas 75219.  (P)
Paper exhibits.  43




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##### Table of Contents

SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed
on its behalf by the undersigned thereunto duly authorized.  CROSS TIMBERS ROYALTY TRUSTBy ARGENT TRUST COMPANY, TRUSTEEBy

/s/ NANCY WILLISNancy WillisDirector of Royalty Trust ServicesEXXON MOBIL CORPORATIONDate: April 1, 2024



By

/s/ WENDI POWELLWendi PowellUpstream Controller (The Trust has no directors or executive officers.)  44