NORTH EUROPEAN OIL ROYALTY TRUST ANNOUNCES THAT THERE WILL BE NO DISTRIBUTION FOR THE FOURTH QUARTER OF FISCAL 2023

Rhea-AI Summary

North European Oil Royalty Trust (NYSE-NRT) will not have a quarterly distribution for Q4 2023 due to a decline in gas sales volumes and negative adjustments. In Q4 2022, the distribution was $0.74 per unit. The shutdown of ExxonMobil's Grossenkneten desulphurization plant and declining German Border Import gas Price contributed to the absence of royalty payments. The residual balance of these adjustments will impact Q1 2024, and future cash distributions are uncertain due to gas price volatility and the Trust's pricing system.

KEENE, N.H., Oct. 31, 2023 /PRNewswire/ -- The Trustees of North European Oil Royalty Trust (NYSE-NRT) announced that, consistent with previous disclosures, there will not be a quarterly distribution for the fourth quarter of fiscal 2023. This compares to a distribution of $0.74 per unit for the fourth quarter of fiscal 2022.

ExxonMobil's scheduled shutdown of the Grossenkneten desulphurization plant for the first 18 days of this quarter contributed to a decline in gas sales volumes. This reduction and the continued decline in the German Border Import gas Price, as well as negative adjustments from the current and prior quarters, resulted in the absence of any royalty payments to the Trust for the quarter ending October 31, 2023. The residual balance of these adjustments will have an impact on the first quarter of fiscal 2024. However, cash distributions in any fiscal quarter beyond the fourth fiscal quarter of 2023 cannot be determined with any certainty at this time. The volatility in gas prices, coupled with the pricing system specified in the Trust's agreements with the operating companies, contributed to the uneven distributions in the most recent quarters. Distributions are based on actual royalty income received less incurred and anticipated expenses. Additional details will be included in the earnings press release scheduled for publication on or about November 17, 2023.

The cumulative 12-month distribution for fiscal 2023, which reflects the absence of any November distribution but includes the three prior quarterly distributions, is $2.26 per unit. This 12-month cumulative distribution is 23.50% or $0.43 per unit higher than the cumulative 12-month distribution of $1.83 for fiscal 2022. The Trust makes quarterly distributions, when possible, to unit owners during the months of February, May, August, and November.

Contact – John R. Van Kirk, Managing Director, telephone: (732) 741-4008, e-mail: 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.

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SOURCE North European Oil Royalty Trust

FAQ

Why is there no quarterly distribution for North European Oil Royalty Trust (NYSE-NRT) in Q4 2023?

The absence of a distribution is due to a decline in gas sales volumes, negative adjustments, and the shutdown of ExxonMobil's Grossenkneten desulphurization plant. These factors resulted in no royalty payments for the quarter.

What was the distribution per unit for North European Oil Royalty Trust (NYSE-NRT) in Q4 2022?

The distribution per unit for Q4 2022 was $0.74.

What factors contributed to the absence of royalty payments for North European Oil Royalty Trust (NYSE-NRT) in Q4 2023?

The decline in gas sales volumes, the continued decline in the German Border Import gas Price, and negative adjustments from the current and prior quarters contributed to no royalty payments for Q4 2023.

Will the residual balance of adjustments impact future distributions for North European Oil Royalty Trust (NYSE-NRT)?

Yes, the residual balance of adjustments will impact the first quarter of fiscal 2024. However, cash distributions beyond the fourth fiscal quarter of 2023 cannot be determined with certainty at this time.

Why were the recent distributions from North European Oil Royalty Trust (NYSE-NRT) uneven?

The volatility in gas prices and the Trust's pricing system specified in its agreements with operating companies contributed to the uneven distributions in the most recent quarters.