North European Oil Royalty Trust (NRT) Q4 2024 earnings summary

Executive summary

• Passive royalty income from German oil and gas production fell sharply in FY2024 as gas prices declined; quarterly distributions totaled $0.48 per unit, down from $2.26 in FY2023.

• Natural gas generated ~94% of FY2024 royalties; production volumes were mixed across the two royalty agreements.

Financial highlights

• Gross royalties declined 73.7% to $5.785 million in FY2024 from $22.016 million in FY2023; interest income was $70,382 versus $125,003.

• Net income was $5.058 million, or $0.55 per unit, versus $21.174 million, or $2.30 per unit, in FY2023.

• Trust expenses decreased 17.5% to $797,872 from $967,591, mainly reflecting higher trustee fees in FY2023.

• Cash and cash equivalents ended FY2024 at $1.625 million, up from $795,201; distributions paid during the year were $4.228 million.

Outlook and guidance

• Negative calendar 2023 royalty adjustments of $1.000 million under OEG and $1.619 million under Mobil eliminated October 2024 scheduled payments and are expected to reduce or eliminate Q1 FY2025 payments.

• No new wells or major exploration work were planned for calendar 2025; well cleanups and foam jobs to de-water weak wells were expected to continue.

• Without renewed drilling, normal well-pressure decline is expected to weigh on gas production; no production or financial guidance was stated.