NORTH EUROPEAN OIL ROYALTY TRUST ANNOUNCES THE DISTRIBUTION FOR THE SECOND QUARTER OF FISCAL 2024
The North European Oil Royalty Trust (NYSE-NRT) declared a distribution of $0.20 per unit for the second quarter of fiscal 2024, payable on May 29, 2024. The Trust receives royalties under the Mobil and OEG Royalty Agreements. Positive royalty adjustments of $125,240 under the Mobil Agreement and $51,781 under the OEG Agreement were noted. Third-quarter royalties are estimated at $2.4 million. Expenses will impact distribution, and additional details will be in the Trust's 10-Q filing on or about May 30, 2024.
Positive distribution of $0.20 per unit for the second quarter of fiscal 2024.
Positive adjustments of $125,240 under the Mobil Agreement and $51,781 under the OEG Agreement.
Estimated third-quarter royalties of $2.4 million.
Expenses impacting distribution as they will be deducted from royalty income.
Potential negative reconciliation in subsequent quarters based on actual prices and volumes.
Insights
The announcement of the distribution for the second quarter of fiscal 2024 by North European Oil Royalty Trust is indicative of the Trust's ability to generate royalty income and manage expenses. The specified distribution of
Furthermore, the mention of positive adjustments under both Mobil and OEG Agreements reflects upon the Trust's effective royalty management and compliance with contractual obligations. The impact of the exchange rate on the actual royalty income highlights the importance of currency risk management for international trusts like NRT. Investors should consider this in their assessment of the distribution's reliability and the Trust's exposure to currency fluctuations.
Finally, the disclosure of potential royalty adjustments and the deduction of expenses from the royalty income before calculating the next distribution provides transparency and allows investors to gauge the net income that could potentially affect future distributions. Investors would do well to anticipate the detailed 10-Q filings for a fuller picture of the Trust's financial well-being.
Investors interested in oil and gas royalties should note that distributions like these are commonly contingent on commodity prices and volumes. This distribution announcement may reflect underlying strength in these factors. However, investors should be aware that the sector is vulnerable to volatile commodity prices and regulatory changes, which could impact future revenues and, consequently, distributions.
Analyzing the trust's performance also requires understanding the specifics of the Mobil and OEG Royalty Agreements. The adjustments mentioned in the release indicate a periodic reconciliation process that aligns with industry practices. Investors should pay close attention to the details in the 10-K and upcoming 10-Q reports to discern the stability and sustainability of these distributions in context with the broader market.
The Trust receives its royalties under the Mobil and OEG Royalty Agreements as detailed in the 2023 10-K on the Trust's website. The Trust's monthly royalty payments are paid based on the amount of royalties payable to the Trust in the prior quarter. End of quarter royalty adjustments result from the need to align scheduled royalty payments from the operating companies with actual royalties that should have been paid. When actual prices and volumes are reported, there will be a positive reconciliation in the current quarter or a negative reconciliation in the subsequent quarter. As of the end of the second quarter of fiscal 2024, there were positive adjustments of
Scheduled royalty payments for the third quarter of fiscal 2024 are estimated to be
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
View original content:https://www.prnewswire.com/news-releases/north-european-oil-royalty-trust-announces-the-distribution-for-the-second-quarter-of-fiscal-2024-302132216.html
SOURCE North European Oil Royalty Trust
FAQ
<p>When will the distribution for the second quarter of fiscal 2024 be paid?</p>
The distribution will be paid on May 29, 2024.
<p>What are the estimated third-quarter royalties for fiscal 2024?</p>
The estimated third-quarter royalties are $2.4 million.
<p>Where can additional details be found regarding the Trust's financial information?</p>
Additional details can be found in the Trust's 10-Q filing on or about May 30, 2024.
