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

Rhea-AI Summary

The Trustees of North European Oil Royalty Trust (NYSE:NRT) announced a quarterly distribution of $0.15 per unit for Q3 FY 2021, payable on August 25, 2021. This marks a 36.36% increase from $0.11 per unit in the same quarter of FY 2020. The distribution is primarily based on natural gas sales in Q2 2021. The total cumulative distribution over the last 12 months is $0.35 per unit, 23.91% lower than the previous $0.46 per unit. Key royalty income was derived from two agreements affecting gas sales and prices.

Positive

• Quarterly distribution increased by 36.36% from $0.11 to $0.15 per unit.
• Gas royalties from the Mobil Agreement rose by 30.51%, totaling $937,634.
• Gas royalties from the OEG Agreement increased by 70.39%, totaling $402,862.

Negative

• Cumulative 12-month distribution of $0.35 is 23.91% lower than the previous $0.46.
• Gas sales under the Mobil Agreement decreased by 6.70% compared to the same quarter last year.

KEENE, N.H., July 30, 2021 /PRNewswire/ -- The Trustees of North European Oil Royalty Trust (NYSE:NRT) announced today a quarterly distribution of $0.15 per unit for the third quarter of fiscal 2021, payable on August 25, 2021 to holders of record on August 13, 2021.  Natural gas sold during the second calendar quarter of 2021 is the primary source of royalty income on which the August 2021 distribution is based.  

John R. Van Kirk, Managing Director, reported that this year's quarterly distribution of $0.15 per unit is 36.36%, or $0.04 per unit, higher than the distribution of $0.11 per unit for the third quarter of fiscal 2020. Additional details will be available in the earnings press release scheduled for publication on or about August 13, 2021.

The Trust receives nearly 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 second calendar quarters of 2021 and 2020.   

	Quarterly Gas Data Providing Basis for Fiscal Quarter Royalties
Mobil Agreement	2nd Calendar Quarter Ended 6/30/2021	2nd Calendar Quarter Ended 6/30/2020	Percentage Change
Gas Sales (Bcf)1	4.259	4.565	-   6.70%
Gas Prices2 (Ecents/Kwh)3	1.6032	1.2326	+ 30.07%
Average Exchange Rate4	1.2004	1.1143	+   7.73%
Gas Royalties	$937,634	$718,425	+ 30.51%
OEG Agreement
Gas Sales (Bcf)	14.465	13.948	+   3.71%
Gas Prices (Ecents/Kwh)	1.6349	1.2570	+ 30.06%
Average Exchange Rate	1.1998	1.1141	+   7.69%
Gas Royalties	$402,862	$236,432	+ 70.39%

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

The cumulative 12-month distribution, which includes the August 2021 distribution and the three prior quarterly distributions, is $0.35 per unit.  This 12-month cumulative distribution is 23.91%, or $0.11 per unit, lower than the prior 12-month distribution of $0.46 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.

View original content:https://www.prnewswire.com/news-releases/north-european-oil-royalty-trust-announces-the-distribution-for-the-third-quarter-of-fiscal-2021-301345327.html

SOURCE North European Oil Royalty Trust

FAQ

What is the quarterly distribution announced by NRT for Q3 FY 2021?

NRT announced a quarterly distribution of $0.15 per unit for Q3 FY 2021, payable on August 25, 2021.

How does the Q3 FY 2021 distribution compare to the previous year?

The distribution of $0.15 per unit for Q3 FY 2021 is 36.36% higher than the $0.11 per unit distribution in Q3 FY 2020.

What was the total cumulative distribution for NRT over the last 12 months?

The total cumulative distribution over the past 12 months is $0.35 per unit, which is 23.91% lower than the prior $0.46 per unit.

How did gas royalties perform in Q2 2021 for NRT?

In Q2 2021, gas royalties from the Mobil Agreement rose by 30.51% and from the OEG Agreement increased by 70.39%.