NORTH EUROPEAN OIL ROYALTY TRUST ANNOUNCES THE DISTRIBUTION FOR THE SECOND QUARTER OF FISCAL 2025

Rhea-AI Summary

North European Oil Royalty Trust (NYSE: NRT) has announced a quarterly distribution of $0.20 per unit for the second quarter of fiscal 2025, matching the same period last year and showing significant improvement from Q1 2025's $0.04 distribution.

The distribution will be paid on May 28, 2025 to owners of record as of May 16, 2025. The increase reflects higher prices and a reduced negative adjustment carryover. The quarter ended with positive adjustments of $73,451 under the Mobil Agreement and $97,508 under the OEG Agreement, plus a Mobil sulfur royalty payment of $57,240.

The Trust receives royalties based on the previous quarter's performance, with payments structured under the Mobil and OEG Royalty Agreements. Detailed financial information will be available in the Trust's 10-Q filing through the SEC's EDGAR website by May 30, 2025.

Positive

• Distribution increased to $0.20 from $0.04 in previous quarter
• Positive adjustments received: $73,451 under Mobil Agreement and $97,508 under OEG Agreement
• Additional sulfur royalty payment of $57,240 received

Negative

• Distribution flat year-over-year at $0.20 compared to Q2 2024
• Trust assets are depleting with no guaranteed additional development projects
• Exposed to risks from gas price fluctuations and currency exchange rates
• Political and economic uncertainty from Russia's invasion of Ukraine could impact operations

Insights

Financial Analyst

NRT's $0.20 per unit Q2 distribution is unchanged from last year but 5x higher than Q1, driven by higher prices and positive adjustments.

North European Oil Royalty Trust's quarterly distribution of $0.20 per unit presents mixed signals for investors. While this represents a significant 400% increase from the $0.04 paid in Q1 2025, it merely matches the $0.20 distribution from the same quarter last year, indicating no year-over-year growth.

The substantial quarter-over-quarter improvement stems from two primary factors explicitly identified in the release: higher commodity prices and a reduced negative adjustment carryover. This suggests improved market conditions in Q2, though specific price figures aren't disclosed.

The Trust reported positive adjustments of $73,451 under the Mobil Agreement and $97,508 under the OEG Agreement, plus a $57,240 Mobil sulfur royalty payment. These favorable reconciliations between estimated and actual royalties contributed to the distribution increase.

For unitholders, the distribution will be paid on May 28, 2025, to owners of record as of May 16, 2025. The cyclical pattern observed—returning to prior-year levels after a significant dip—suggests volatility in the Trust's revenue streams, typical of royalty trusts whose distributions fluctuate with commodity prices and production volumes.

The Trust's forward-looking statements acknowledge inherent business risks, noting its assets are depleting and future performance depends on operators undertaking additional development projects—a reminder of the limited growth potential typical in royalty trust structures.

KEENE, N.H., April 30, 2025 /PRNewswire/ -- The Trustees of North European Oil Royalty Trust (NYSE-NRT) announced today a distribution of $0.20 per unit for the second quarter of fiscal 2025. This distribution amount matches the $0.20 distribution for the second quarter of fiscal 2024 and is an increase from the $0.04 distribution for the first quarter of fiscal 2025. The $0.20 distribution for the second quarter of fiscal 2025 is payable on May 28, 2025 to owners of record on May 16, 2025.

The Trust receives its royalties under the Mobil and OEG Royalty Agreements as detailed in the 2024 10-K on the Trust's website. In accordance with the agreements, the Trust's monthly royalty payments are paid based on the amount of royalties payable to the Trust in the prior quarter. For the quarter ending April 30, 2025, the increase in the distribution compared to this year's first fiscal quarter, reflects both higher prices and a reduced negative adjustment carryover. At the end of the second quarter of fiscal 2025, there were positive adjustments of $73,451 under the Mobil Agreement and $97,508 under the OEG Agreement. A payment of the Mobil sulfur royalty totaling $57,240 was also received. End of quarter royalty adjustments result from the need to align scheduled royalty payments with actual royalties owed to the Trust by the operating companies. Additional details will be available in the Trust's 10-Q filing at the Trust's website, shown below, or through the SEC's EDGAR website on or about May 30, 2025.

Contact – John R. Van Kirk, Managing Director, telephone: (732) 741-4008, e-mail: jvankirk@neort.com. The Trust's press releases, tax information, SEC filings, and other information are available on the Trust's website: www.neort.com.

Forward-Looking Statements

This press release may contain forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Such statements address future expectations and events or conditions concerning the Trust, such as statements concerning future gas prices, royalty payments and cash distributions. Many of these statements are based on information provided to the Trust by the operating companies or by consultants using public information sources, are difficult to predict, and are generally beyond the control of the Trust. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in any forward-looking statements. These include: the fact that the assets of the Trust are depleting assets and, if the operators developing the concession do not perform additional development projects, the assets may deplete faster than expected; risks and uncertainties concerning levels of gas production and gas sale prices, general economic conditions, and currency exchange rates; the ability or willingness of the operating companies to perform under their contractual obligations with the Trust; potential disputes with the operating companies and the resolution thereof; and political and economic uncertainty arising from Russia's invasion of Ukraine. Any forward-looking statement speaks only as of the date on which such statement is made, and the Trust does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.

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SOURCE North European Oil Royalty Trust

FAQ

What is North European Oil Royalty Trust's (NRT) Q2 2025 distribution amount?

North European Oil Royalty Trust (NRT) announced a distribution of $0.20 per unit for Q2 fiscal 2025, payable on May 28, 2025 to owners of record on May 16, 2025.

How does NRT's Q2 2025 distribution compare to previous quarters?

The Q2 2025 distribution of $0.20 matches the same quarter in fiscal 2024 and represents a significant increase from Q1 2025's distribution of $0.04.

What factors caused NRT's distribution increase in Q2 2025?

The increase in distribution reflects both higher prices and a reduced negative adjustment carryover, with positive adjustments of $73,451 under the Mobil Agreement and $97,508 under the OEG Agreement.

When will NRT release its detailed Q2 2025 financial results?

Additional details will be available in the Trust's 10-Q filing through the Trust's website or SEC's EDGAR website on or about May 30, 2025.

What are the key risks affecting NRT's future distributions?

Key risks include depleting assets, gas production levels, gas sale prices, economic conditions, currency exchange rates, operating companies' performance, and political uncertainty from Russia's invasion of Ukraine.