NRT 10-K & 10-Q changes, risk factors and insider trading
North European Oil Royalty Trust · NYSE · Oil Royalty Traders · CIK 72633 · All filings on SEC.gov
At a glance
What changed in the latest 10-K
Risk Factors
Not available: the section could not be located automatically in one of the filings (non-standard layout or incorporated by reference). See the original filing. Open the filing on SEC.gov.
Management's Discussion & Analysis (MD&A)
New heading “Quarterly and Yearly Gas Sales under the Mobil Agreement in Billion cubic feet”
New heading “Average Gas Prices under the Mobil Agreement in €cents per Kilowatt Hour”
New heading “Average Euro Exchange Rate under the Mobil Agreement”
New heading “Quarterly and Yearly Gas Sales under the OEG Agreement in Billion cubic feet”
New heading “Average Gas Prices under the OEG Agreement in €cents per Kilowatt Hour”
New heading “Average Euro Exchange Rate under the OEG Agreement”
Largest changes
“Quarterly and Yearly Gas Sales under the Mobil Agreement in Billion cubic feet”see in full comparison
“Quarterly and Yearly Gas Sales under the OEG Agreement in Billion cubic feet”see in full comparison
“Average Gas Prices under the Mobil Agreement in €cents per Kilowatt Hour”see in full comparison
“Average Gas Prices under the OEG Agreement in €cents per Kilowatt Hour”see in full comparison
Full comparison: every changed paragraph (27)
The operating companies pay
royalties to the Trust based on their sales of natural gas,
sulfur sulfur, and oil. Of these three products, natural gas provided
approximately 94% of the total
royalties in fiscal 2024.2025. The amount
of royalties paid to the Trust is primarily based on four factors:
the amount of gas sold, the price of that gas, the area from which
the gas is producedproduced, and the exchange rate. For purposes of the royalty
calculations, the determination of the gas price is explained in
detail in the following three paragraphs.
The Trust has no means of
ensuring continued income from overriding royalty rights at their
present level or otherwise. The assets
of the Trust are depleting
assets. While future maintenance and development projects on the underlying assets and,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, if they occur, will depend on the market prices of oil and natural gas. If the operators developing the concession do not perform
such additional maintenance or development projects, the future
rate of production decline of proved reserves may be higher than the rate currently expected by the Trust and 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 Trust'sTrust’s consultant in
Germany provides general information to the Trust on the German and
European economies and energy markets as well as monitoring the
continuing impact of the war in Ukraine
and ongoing efforts by the
European governments to respond to the economic impacts of the war.
This information provides a context in which to evaluate the actions
of the operating companies.companies.The The Trust'sTrust’s consultant receives reports
from EMPG with
respect to current and planned drilling and exploration
efforts. However, EMPG and the operating companies continue to limit
the information flow to that which is required by German law, and the
Trust is not able tocannot confirm the
accuracy of any of the information
supplied by EMPG or the operating companies.
Negative calendar 2023 adjustments had an impact on both the fourth quarter of fiscal 2024 and the first quarter of fiscal 2025. The actual adjustments affecting scheduled royalty payments in the first quarter of fiscal 2025 totaled ($1,754,663). This adjustment eliminated royalties payable under the OEG Agreement and reduced royalties received under the Mobil Agreement to $505,864 during the first quarter of fiscal 2025. The year-end adjustment for calendar 2024 was $472,384. There is a negative end-of-quarter adjustment for the fourth fiscal quarter that will reduce royalty income for the first quarter of fiscal 2026 by Euros 266,306 ($308,168 based on the exchange rate of 1.157196 as of October 31, 2025).
Fiscal 2023 was a turbulent
year with dramatic price swings and significant negative adjustments
totaling $2,161,390 that carried over beyond the year's end. Fiscal
2024 was more stable price-wise despite the overall lower gas prices
but it too was impacted by significant negative adjustments carrying
over beyond the year's end. Due to the very high gas prices in effect
towards the end of 2022 that were a determining factor in royalty
payments in early 2023, the Trust was notified in September 2024 that
the calendar 2023 end-of-year adjustment would be a sizeable negative
amount under both royalty agreements. These negative adjustments
eliminated the scheduled royalty payments for October 2024 and will
have an impact on the first quarter of fiscal 2025, both eliminating
the scheduled royalty payments in the case of the OEG royalty and
significantly reducing these payments in the case of the Mobil royalty.
Based on the November 20, 2024 Euro/dollar exchange rate of 1.0521,
the OEG and Mobil negative adjustments for calendar 2023 are
$1,000,143 and $1,619,368, respectively.
For fiscal 2024,2025, the Trust's
Trust’s gross royalty income decreasedincreased 73.7%49.5% to $5,785,303$8,650,094 from $22,016,103$5,785,303 in
fiscal 2023.2024. The total distribution for fiscal 20242025 was $0.48$0.81 per
unit compared to $2.26$0.48 per unit
for fiscal 2023.2024. Gas prices under
both royalty agreements were lower,higher, gas sales were mixed,lower, and average
exchange rates were up or flat.up. The royalty income received under the
Mobil Agreement in fiscal 20242025 decreasedincreased by30.7% $9,717,057or, as$1,301,622, to $5,535,716
compared to
$4,234,094 received in fiscal 2023.2024. Royalty income received under the OEG Agreement in fiscal
2024 decreased2025 byincreased $6,513,74381.3% asor, $1,261,744, to $2,812,905 compared to $1,551,161 received in fiscal 2023.2024.
Gas sales under the Mobil
Agreement increaseddecreased 1.2%4.7% to 12.59211.994 Billion cubic feet ("“Bcf"”) in fiscal
2024 2025 from 12.43912.592 Bcf in fiscal 2023.2024. DespiteWith the continued lack of
drilling by the
operating companies through 2024,2025, thethere ongoingwas program of
well workovers and uninterrupted operation of Grossenkneten resulted in
thea slight improvementdecline in gas production. However, absentAbsent a renewed
drilling program, the normal reduction in well pressure would be
expected to continue and gas production would be expected to decline.
Quarterly and Yearly Gas Sales under the Mobil Agreement in Billion cubic feet
Average prices for gas sold
under the Mobil Agreement decreasedincreased 55.3%11.1% to 3.72064.1328 Euro cents per
kilowatt hour ("Euro “€cents/kWh"”) in fiscal 20242025 from 8.32313.7206 Euro
€cents/kWh in fiscal 2023.2024.
Average Gas Prices under the Mobil Agreement in €cents per Kilowatt Hour
Converting gas prices into more
familiar terms, using the average exchange rate, yielded a price of $11.52
$13.10 per thousand cubic feet ("“Mcf"”), aan decreaseincrease of 51.1%13.7% from fiscal 2023's
2024’s average price of $23.54
$11.52/Mcf. For fiscal 2024,2025, royalties paid under the
Mobil Agreement were converted and transferred at an average Euro/U.S.
dollar exchange rate of 1.0834,1.1080, unchangeda 2.3% increase from the average Euro/U.S. dollar
exchange rate of 1.0834 for fiscal 2023.2024.
Average Euro Exchange Rate under the Mobil Agreement
Quarterly and Yearly Gas Sales under the OEG Agreement in Billion cubic feet
Average gas prices for gas sold
under the OEG Agreement decreasedincreased 55.4%11.5% to 3.79294.2293 Euro cents/kWh in fiscal
2024 from 8.4965 Euro €cents/kWh in fiscal 2023.2025 from 3.7929 €cents/kWh in fiscal 2024.
Average Gas Prices under the OEG Agreement in €cents per Kilowatt Hour
Converting gas prices into
more familiar terms, using the average exchange rate, yielded a price
of $11.32$13.43/Mcf for fiscal 2024,2025, aan decreaseincrease of 52.5%16.8% from fiscal 2023's
2024’s
average price of $23.85$11.50/Mcf. For fiscal 2024,2025, royalties paid under the
OEG Agreement were converted and transferred at an average Euro/U.S.
dollar exchange rate of 1.0848,1.1343, aan decreaseincrease of 0.1%4.6% from the average
Euro/U.S. dollar exchange rate of 1.0856
1.0848 for fiscal 2023.2024.
Average Euro Exchange Rate under the OEG Agreement
1 No royalty income under the OEG Royalty Agreement was deposited into the Trust’s account at Deutsche Bank and there was no conversion and transfer to the Trust’s account with M&T Bank. Consequently, no exchange rate was generated.
Trust expenses of $795,648 in fiscal 2025 were virtually unchanged from Trust expenses of $797,872 in fiscal 2024.
Interest income for fiscal 2024 of
$70,382 decreased from interest income of $125,003 for fiscal 2023 due to
the reduced amount of royalties received. Trust expenses decreased $169,719,
or 17.5%, to $797,872 in fiscal 2024 from $967,591 in fiscal 2023 due to
higher Trustees' fees as specified in the provisions of the Trust Agreement
paid during fiscal 2023.
The Trust's German consultant has advised the Trust
that EMPG has not planned any new wells for calendar 2025 and no major
work has been initiated on the exploration side.
Maintenance work, including well cleanup jobs and foam
jobs to de-water weak wells, will be continuing to ensure the wells are
operating at maximum efficiency and production levels.
• 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 the conflict in Ukraine and the Middle
East.
What changed in the latest 10-Q
Risk Factors
We could not find a separate Risk Factors item in the latest 10-Q. Some companies leave it out of quarterly reports; see the annual 10-K risk factors and the original filing. Open the filing on SEC.gov.
Management's Discussion & Analysis (MD&A)
Not available: the section could not be located automatically in both filings (non-standard layout or incorporated by reference). See the original filing. Open the filing on SEC.gov.
NRT insider buying and selling (Form 4)
Since 2026-04-11, insiders reported open-market purchases in 0 Form 4 filings and open-market sales in 0 filings. Totals add up every open-market (code P and S) line in those filings, using the prices reported in the filings. Awards, option exercises, tax withholding and gifts are listed below but not counted.
No Form 4 stock transactions in this period.
Well-known investors holding NRT (13F)
None of the 59 investors we track reported a position in their latest 13F.