CROSS TIMBERS ROYALTY TRUST

Previous wording

After considering interest income of $13,666, administration expense of $234,441, and an increase to the expense reserve of $50,000, distributable income for the quarter ended March 31, 2026, was $503,406, or $0.083901 per unit of beneficial interest. Administration expense for the quarter decreased $47,021 from the prior year quarter, primarily related to the timing of receipt and payment of Trust expenses and terms of professional services. Changes in interest income are attributable to fluctuations in net profits income, expense reserve, and interest rates. For first quarter 2025, distributable income was $1,783,938, or $0.297323 per unit.

Current wording

After adding interest income of $13,591 and deducting administration expense of $240,566, distributable income for the quarter ended June 30, 2026, was $861,180, or $0.143530 per unit of beneficial interest. Administration expense for the quarter decreased $22,634 from the prior year quarter, primarily related to the timing of receipt and payment of Trust expenses and terms of professional services. Changes in interest income are attributable to fluctuations in net profits income, expense reserve, and interest rates. For second quarter 2025, distributable income was $892,548, or $0.148758 per unit.

Previous wording

For the quarter ended March 31, 2026, net profits income was $774,181 compared to $2,053,394 for first quarter 2025. This 62 percent decrease in net profits income is primarily the result of decreased oil and gas production ($1.3 million), lower oil prices ($0.5 million), increased overhead ($0.4 million), and increased production costs ($0.1 million), partially offset by net excess costs activity ($0.8 million), decreased taxes, transportation and other costs ($0.1 million), and decreased development costs ($0.1 million). See “Net Profits Income” below.

Current wording

For the six months ended June 30, 2026, net profits income was $1,862,336 compared to $3,347,160 for the same 2025 period. This 44 percent decrease in net profits income is primarily the result of decreased oil and gas production ($1.4 million), increased overhead costs ($0.5 million), lower oil and gas prices ($0.3 million), and increased production expenses ($0.1 million), partially offset by net excess costs activity ($0.5 million), decreased taxes, transportation and other costs ($0.2 million), and decreased development costs ($0.1 million). See “Net Profits Income” below.

Previous wording

Because of the interval between time of production and receipt of royalty income by the Trust, oil and gas sales for the quarter ended March 31 generally represent oil production for the period November through January and gas production for the period October through December.

Current wording

Because of the interval between time of production and receipt of royalty income by the Trust, (1) oil and gas sales for the quarter ended June 30 generally represent oil production for the period February through April and gas production for the period January through March and (2) oil and gas sales for the six-months ended June 30 generally represent oil production for the period November through April and gas production for the period October through March.

Previous wording

The following are explanations of significant variances on the underlying properties from first quarter 2025 to first quarter 2026:

Current wording

The following are explanations of significant variances on the underlying properties from second quarter 2025 to second quarter 2026 and from the first six months of 2025 to the comparable period in 2026:

Previous wording

Gas sales volumes decreased 38 percent from first quarter 2025 to first quarter 2026 primarily because of timing of cash receipts and natural production decline.

Current wording

Gas sales volumes decreased 10 percent for the second quarter and decreased 26 percent for the six-month period primarily because of the timing of cash receipts and natural production decline.

Previous wording

Taxes, transportation and other costs decreased 36 percent for first quarter 2026 primarily because of decreased oil and gas severance taxes on lower revenues and decreased gas deductions.

Current wording

Taxes, transportation and other costs decreased 4 percent for the second quarter primarily because of decreased gas deductions. Taxes, transportation and other costs decreased 21 percent for the six-month period primarily because of decreased oil and gas severance taxes on lower revenues and decreased gas deductions.

Previous wording

Production expense increased 52 percent for first quarter 2026 primarily because of increased overhead, and power and fuel costs, partially offset by decreased repairs and maintenance costs.

Current wording

Production expense decreased 5 percent for the second quarter primarily because of decreased repairs and maintenance, partially offset by increased power and fuel costs, and overhead. Production expense increased 19 percent for the six-month period primarily because of increased overhead, and power and fuel costs, partially offset by decreased repairs and maintenance costs.

Previous wording

Development costs related to properties underlying the 75% net profits interests decreased 101 percent for first quarter 2026 primarily because of the absence of recompletion costs related to the Hewitt Unit.

Current wording

Development costs related to properties underlying the 75% net profits interests decreased 100 percent for the second quarter and 101 percent for the six-month period primarily because of the absence of recompletion costs related to the Hewitt Unit.

Previous wording

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 any other conveyance. Underlying cumulative excess costs for the Texas and Oklahoma working interest conveyances remaining as of March 31, 2026, totaled $6.7 million ($5.0 million net to the Trust), including accrued interest of $1.6 million ($1.2 million net to the Trust). For further information on excess costs, see Note 4 to Condensed Financial Statements.

Current wording

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 any other conveyance. Underlying cumulative excess costs for the Texas and Oklahoma working interest conveyances remaining as of June 30, 2026, totaled $6.8 million ($5.1 million net to the Trust), including accrued interest of $1.7 million ($1.3 million net to the Trust). For further information on excess costs, see Note 4 to Condensed Financial Statements.

Previous wording

Certain information included in this Quarterly 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 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,” “believes,” “estimates,” “should,” “could,” “would,” and similar words that convey the uncertainty of future events. Such forward-looking statements may concern, among other things, development activities, future development plans by area, 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 supply and demand, the impact of inflation and economic downturns on economic activity, government policy and actions and their impact on oil and gas prices and future demand, the development and competitiveness of alternative energy sources, pricing differentials, proved reserves, production levels, expense reserve budgets, availability of financing, arbitration, litigation, liquidity, financing, political and regulatory matters, such as tax and environmental policy, climate policy, trade barriers, tariffs, sanctions, war and other geopolitical or security disturbances, and competition. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict, including those detailed in Part I, Item 1A of the Trust’s Annual Report on Form 10-K for the year ended December 31, 2025, which is incorporated by this reference as though fully set forth herein. 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. XTO Energy and the Trustee assume no duty to update these statements as of any future date.

Current wording

Certain information included in this Quarterly 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 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,” “believes,” “estimates,” “should,” “could,” “would,” and similar words that convey the uncertainty of future events. Such forward-looking statements may concern, among other things, development activities, future development plans by area, 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 supply and demand, the impact of inflation and economic downturns on economic activity, government policy and actions and their impact on oil and gas prices and future supply and demand, the development and competitiveness of alternative energy sources, pricing differentials, proved reserves, production levels, expense reserve budgets, availability of financing, arbitration, litigation, liquidity, financing, political and regulatory matters, such as tax and environmental policy, climate policy, trade barriers, tariffs, sanctions, war and other geopolitical or security disturbances, and competition. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict, including those detailed in Part I, Item 1A of the Trust’s Annual Report on Form 10-K for the year ended December 31, 2025, which is incorporated by this reference as though fully set forth herein. 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. XTO Energy and the Trustee assume no duty to update these statements as of any future date.