North European Oil Royalty Trust Announces The Distribution For The Fourth Quarter Of Fiscal 2021

Rhea-AI Summary

The North European Oil Royalty Trust (NRT) has declared a quarterly distribution of $0.14 per unit for Q4 of fiscal 2021, payable on November 24, 2021. This marks a significant increase of 600%, or $0.12 higher, compared to $0.02 in Q4 2020. The rise is attributed to increased natural gas sales, with sales reaching 3.985 Bcf, a 25.08% increase year-over-year, and gas prices jumping 111.49%. The cumulative distribution for the fiscal year is $0.47, a 46.88% rise from $0.32 in 2020.

Positive

• Quarterly distribution increased to $0.14 per unit, a 600% increase from Q4 2020.
• Natural gas sales rose to 3.985 Bcf, a 25.08% increase year-over-year.
• Gas prices surged by 111.49%, contributing to increased revenue.
• Cumulative distribution for fiscal 2021 reached $0.47 per unit, up 46.88% from $0.32 in fiscal 2020.

Negative

• Average exchange rates declined slightly by 0.49%, potentially impacting royalty income.

KEENE, N.H., Oct. 29, 2021 /PRNewswire/ -- The Trustees of North European Oil Royalty Trust (NYSE: NRT) announced a quarterly distribution of $0.14 per unit for the fourth quarter of fiscal 2021, payable on November 24, 2021 to holders of record on November 12, 2021.  Natural gas sold during the third calendar quarter of 2021 is the primary source of royalty income on which the November 2021 distribution is based.

John R. Van Kirk, Managing Director, reported that this year's quarterly distribution of $0.14 per unit is 600.0%, or $0.12 per unit, higher than the distribution of $0.02 per unit for the fourth quarter of fiscal 2020.  For the quarter ending October 31, 2021, the combination of higher gas sales and gas prices more than offset the slight decline in average exchange rates and the negative year-end adjustments for calendar 2020

(-$157,538) resulting in the higher distribution.  The more significant economic impact of COVID-19 during the first half of calendar 2020 resulted in the negative year-end adjustments.  Additional details will be included in the earnings press release scheduled for publication on or about November 12, 2021.

The Trust receives all of its royalties under two royalty agreements.  The Mobil Agreement, which is the higher royalty rate agreement, covers gas sales from the western half of the Oldenburg concession.  The OEG Agreement, which is the lower royalty rate agreement, covers gas sales from the entire Oldenburg concession.  The factors determining the amount of gas royalties payable under the two agreements from the preceding calendar quarter are shown in the table below comparing the third calendar quarters of 2021 and 2020.  

 

	Quarterly Gas Data Providing Basis for Fiscal Quarter Royalties
Mobil Agreement	3rd Calendar Quarter   Ended 9/30/2021	3rd Calendar Quarter   Ended 9/30/2020	Percentage Change
Gas Sales (Bcf1)	3.985	3.186	+ 25.08%
Gas Prices2 (Ecents/Kwh3)	1.9573	0.9255	+111.49%
Average Exchange Rates4	1.1703	1.1761	-     0.49%
Gas Royalties	$1,043,662	$395,791	+163.69%
OEG Agreement
Gas Sales (Bcf)	13.365	10.601	+ 26.07%
Gas Prices (Ecents/Kwh)	1.9961	0.9438	+111.50%
Average Exchange Rates	1.1714	1.1730	-     0.14%
Gas Royalties	$441,458	$97,128	+354.51%

 

1Billion cubic feet     2Gas prices derived from May-July period     3Euro cents per kilowatt hour      4 Based on average Euro/dollar exchange rates of cumulative royalty transfers

The cumulative 12-month distribution for fiscal 2021, which includes this November distribution and the three prior quarterly distributions, is $0.47 per unit.  This 12-month cumulative distribution is 46.88% or $0.15 per unit higher than the cumulative 12-month distribution of $0.32 for fiscal 2020.  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, e-mail: jvankirk@neort.com. The Trust's press releases and other pertinent information are available on the Trust's website: www.neort.com.

 

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SOURCE North European Oil Royalty Trust

FAQ

What is the latest distribution announced by North European Oil Royalty Trust (NRT) for Q4 2021?

The latest distribution announced for Q4 2021 is $0.14 per unit.

How does the Q4 2021 distribution compare to Q4 2020 for NRT?

The Q4 2021 distribution is $0.14 per unit, a 600% increase from $0.02 per unit in Q4 2020.

What were the natural gas sales figures for NRT in Q3 2021?

NRT reported natural gas sales of 3.985 Bcf in Q3 2021, a 25.08% increase from the previous year.

What are the gas prices reported by North European Oil Royalty Trust for Q3 2021?

Gas prices for Q3 2021 were reported at 1.9573 Ecents/Kwh, up by 111.49% from the previous year.

What is the cumulative distribution amount for North European Oil Royalty Trust in fiscal 2021?

The cumulative distribution for fiscal 2021 is $0.47 per unit, a 46.88% increase from $0.32 in fiscal 2020.