Delaware 1-8245 22-2084119
State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation File Number) Identification No.)
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Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Units of Beneficial Interest NRT New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR Section 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR Section 240.12b-2).
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. [ ]
Item 2.02. Results of Operations and Financial Condition.
Item 2.02. Results of Operations and Financial Condition.
On April 28, 2023, North European Oil Royalty Trust issued a press release via PR Newswire announcing the Trust's distribution for the second quarter of fiscal 2023. Furnished herewith is a copy of the press release, which is incorporated by reference herein.
Item 9.01. Financial Statements and Exhibits.
(c) ExhibitsThe following exhibit is furnished herewith:
Exhibit 99. A press release dated April 28, 2023 and disseminated through PR Newswire announcing the distribution for North European Oil Royalty Trust for the second quarter of fiscal 2023.
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
NORTH EUROPEAN OIL ROYALTY TRUST
(Registrant)
/s/ John R. Van Kirk
John R. Van Kirk
Managing Director
February 15, 2023
Exhibit 99
PR NEWSWIRE
Keene, N.H. April 28, 2023 - The Trustees of North European Oil Royalty Trust (NYSE-NRT) announced today a quarterly distribution of $1.05 per unit for the second quarter of fiscal 2023, payable on May 31, 2023 to owners of record on May 19, 2023. John R. Van Kirk, Managing Director, reported that this year's quarterly distribution of $1.05 per unit is 176.32%, or $0.67 per unit, higher than the distribution of $0.38 per unit for the second quarter of fiscal 2022. Additional details will be included in the earnings press release scheduled for publication on or about May 12, 2023.
Based on the Trust's agreements with the operating companies, the Trust's monthly royalty payments are paid prospectively based on the amount of royalties that were payable to the Trust in the prior quarter. In the second quarter of fiscal 2023, the royalties paid to the Trust were based on actual royalties received during the first quarter of fiscal 2023. This was a period of a spike in German natural gas prices. Given the actual quarter-over-quarter decline in gas prices from the first to the second fiscal quarters, the Trust received significantly more royalties than specified by the agreements. This overpayment of royalties has resulted in a negative carry-over that will substantially offset the amount of royalties that will be paid to the Trust in the third fiscal quarter. Consequently, this reduction in royalty income is expected to substantially reduce quarter-over-quarter cash distributions to the unit owners for the third fiscal quarter.
The Trust receives all its royalties under two royalty agreements. The Mobil Agreement, the higher royalty rate agreement, covers gas sales from the western half of the Oldenburg concession. The OEG Agreement, the lower royalty rate agreement, covers gas sales from the entire Oldenburg concession. The table below shows the factors, drawn from the respective relevant periods, which determine the amount of gas royalties that were payable to the Trust under the two agreements during the second fiscal quarters of 2023 and 2022.
| Mobil Agreement | 1st Calendar Quarter Ended 3/31/2023 | 1st Calendar Quarter Ended 3/31/2022 | Percentage Change | Gas Sales (Bcf) 1 | 3.451 | 3.605 | -4.27% | Gas Prices2 (Ecents/Kwh)3 | 9.1043 | 5.1442 | +76.98% | Average Exchange Rates4 | 1.0698 | 1.0883 | -1.70% |
|---|---|---|---|---|
| Gas Royalties | $3,841,989 | $2,307,437 | +66.50% | |
| OEG Agreement | ||||
| Gas Sales (Bcf) | 12.242 | 13.123 | -6.71% | |
| Gas Prices (Ecents/Kwh) | 9.2846 | 5.2460 | +76.98% | |
| Average Exchange Rates | 1.0698 | 1.0867 | -1.56% | |
| Gas Royalties | $2,136,825 | $1,257,976 | +69.86% |
The cumulative 12-month distribution, which includes the May 2023 distribution and the three prior quarterly distributions, is $3.25 per unit. This 12-month cumulative distribution is 253.26% or $2.33 per unit higher than the prior cumulative 12-month distribution of $0.92 per unit. The Trust makes quarterly distributions to unit owners during the months of February, May, August, and November.
Contact -- John R. Van Kirk, Managing Director, telephone: (732) 741-4008, email: jvankirk@neort.com. The Trust's press releases and other pertinent 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.