NORTH EUROPEAN OIL ROYALTY TRUST
For the period ended Aug 29, 2025. Filed Aug 29, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Aug 29, 2025 · Filed Aug 29, 2025
NRT$7.05+4.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-04-30; filed 2025-05-30.
0000072633-25-000006
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-08-29; filed 2025-08-29.
0000072633-25-000010
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 45 previous paragraphs and 41 current paragraphs.
23 unchanged; 14 reworded; 4 added; 8 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 4 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (4)
Current report
Results: Third Quarter of Fiscal 2025 Versus Third Quarter of Fiscal 2024
Current report
Trust expenses for the third quarter of fiscal 2025 increased 10.6%, or $17,622, to $183,344 compared to $165,722 for the third quarter of fiscal 2024. The increase in expenses for the third quarter of fiscal 2025 reflects higher Trustee fees as specified by the provisions of the Trust Agreement and the timing of the payment of mailing expenses. The Trust received interest income in the amount of $25,220 and $26,394 during the third quarters of fiscal 2025 and 2024 respectively.
Current report
Total royalty income received during the first nine months of fiscal 2025 was derived from sales of gas, sulfur and oil from the Trust's overriding royalty areas in Germany during the fourth calendar quarter of 2024 and the first and second calendar quarters of 2025. Comparisons of total royalty income and net income for the first nine months of fiscal 2025 and 2024 are shown below.
Current report
Trust expenses for the first nine months of fiscal 2025 increased 2.0% or $12,620 to $646,828 compared to $634,208 for the prior fiscal year's equivalent period. The increase in expenses for the first nine months of fiscal 2025 reflects higher Trustee fees as specified by the provisions of the Trust Agreement and higher transfer agent fees. Trust interest income received during the first nine months of fiscal 2025 increased to $58,180 in comparison to $50,187 received in the first nine months of fiscal 2024 due to higher net income.
Removed paragraphs (8)
Previous report
On or about the 20th of the months of January, April, July and October of each year, the operating companies determine the amount of royalties that were payable to the Trust based on applicable sales during the relevant period. This amount is paid out to the Trust in three monthly installments as royalty payments (payable on or about the 15th of each month) during its upcoming fiscal quarter. In addition, the operating companies review the actual amount of royalties that were paid to the Trust for the prior quarter and calculate the difference between the amounts paid and the amounts payable. Any additional amounts payable by the operating companies would be paid immediately and any overpayment would be deducted from the payment for the first month of the following fiscal quarter. In September of each year, the operating companies make the final determination of any necessary underpayment or overpayment of royalties for the prior calendar year. The Trust's independent accountants based in Germany review the royalty calculations on a biennial basis and will commence their examination for 2023 and 2024 in October 2025.
Previous report
Results: Second Quarter of Fiscal 2025 versus Second Quarter of Fiscal 2024
Previous report
Trust expenses for the second quarter of fiscal 2025 increased 6.7%, or $14,318, to $229,519 from $215,201 in the second quarter of fiscal 2024. The increase in expenses reflects the timing of payments related to the biennial examination of the royalty payments by the accounting firm retained by the Trust in Germany. Trust interest income received in the second quarter of fiscal 2025 increased to $19,224 in comparison to $16,333 received in the second quarter of fiscal 2024 due to more funds available.
Previous report
Total royalty income received during the first six months of fiscal 2025 increased in comparison to the first six months of fiscal 2024 based on several factors: (1) gas prices under both the Mobil and the OEG Agreements were higher in average for the first six months of fiscal 2025; (2) the Mobil sulfur royalties were $59,237 higher for the first six months of fiscal 2025; and (3) while during both six month periods there were no OEG royalties during the first quarters, the residual negative balance impacting the second quarter of fiscal 2025 was $169,231 lower than the residual negative balance impacting the second quarter of fiscal 2024. Comparisons of total royalty income received and net income for the first six months of fiscal 2025 and 2024 are shown below.
Previous report
Trust expenses for the first six months of fiscal 2025 decreased 1.1%, or $5,002, to $463,484 from $468,486 for the first six months of fiscal 2024. The decrease in expenses reflects the biennial nature of costs associated with the royalty examination in Germany and the reduced costs for the first six months of fiscal 2025 in comparison. Trust interest income received during the first six months of fiscal 2025 increased to $32,960 in comparison to $23,793 received in the first six months of fiscal 2024 due to more funds available.
Previous report
Report on Drilling and Geophysical Work
Previous report
The Trust's German consultant has been in contact with representatives of ExxonMobil Production Gesellschaft ("EMPG") for technical discussions regarding EMPG's future drilling and geophysical work. The following is a summary of these discussions with some additional comments from the Trust's German consultant. The Trust is not able to confirm the accuracy of any of the information supplied by the operating companies. In addition, the operating companies are not obligated to take any of the actions outlined and, if they change their plans with respect to any such actions, they are not obligated to inform the Trust.
Previous report
The Trust's German consultant advised the Trust that, in these discussions, EMPG has indicated that it will not be drilling any wells during 2025. In order to keep production decline as low as possible, workovers of existing wells, maintenance of all installations and small stimulations measures will help to maximize performance and production.
Reworded paragraphs (14)
Previous wording
Mobil Erdgas and BEB Erdgas und Erdol GmbH, formed a company, ExxonMobil Production Deutschland GmbH ("EMPG"), to carry out all exploration, drilling and production activities. All sales activities are still handled by the operating companies, either Mobil Erdgas or BEB.
Current wording
Mobil Erdgas and BEB Erdgas formed a company, ExxonMobil Production Deutschland GmbH ("EMPG"), to carry out all exploration, drilling and production activities. All sales activities are still handled by the operating companies, either Mobil Erdgas or BEB.
Previous wording
The operating companies pay monthly royalties to the Trust based on their sales of natural gas, sulfur and oil. Of these three products, natural gas provided approximately 92% of the cumulative royalty income received in fiscal 2025. The amount of royalties paid to the Trust is primarily based on four factors: the amount of gas sold, the price of that gas, the area from which the gas is sold, and the exchange rate.
Current wording
The operating companies pay monthly royalties to the Trust based on their sales of natural gas, sulfur and oil. Of these three products, natural gas provided approximately 93% of the cumulative royalty income received in fiscal 2025. The amount of royalties paid to the Trust is primarily based on four factors: the amount of gas sold, the price of that gas, the area from which the gas is sold, and the exchange rate.
Previous wording
Under one set of rights covering the western part of the Oldenburg concession (approximately 662,000 acres), the Trust receives a royalty payment of 4% on gross receipts from sales by Mobil Erdgas of gas well gas, oil well gas, crude oil and condensate (the "Mobil Agreement"). Under the Mobil Agreement, there is no deduction of costs prior to the calculation of royalties from gas well gas and oil well gas, which together accounted for approximately 98% of the cumulative royalty income received under this agreement in fiscal 2025. Historically, the Trust has received significantly greater royalty payments under the Mobil Agreement, as compared to the OEG Agreement described below, due to the higher royalty rate specified by the Mobil Agreement.
Current wording
Under one set of rights covering the western part of the Oldenburg concession (approximately 662,000 acres), the Trust receives a royalty payment of 4% on gross receipts from sales by Mobil Erdgas of gas well gas, oil well gas, crude oil and condensate (the "Mobil Agreement"). Under the Mobil Agreement, there is no deduction of costs prior to the calculation of royalties from gas well gas and oil well gas, which together accounted for approximately 99% of the cumulative royalty income received under this agreement in fiscal 2025. Historically, the Trust has received significantly greater royalty payments under the Mobil Agreement, as compared to the OEG Agreement described below, due to the higher royalty rate specified by the Mobil Agreement.
Previous wording
The Trust is also entitled under an agreement with Mobil to receive a 2% royalty on gross receipts of sales of sulfur obtained as a by-product of sour gas produced from the western part of Oldenburg ("the Mobil Sulfur Agreement"). The payment of the sulfur royalty is conditioned upon sales of sulfur by Mobil Erdgas at a selling price above an agreed upon base price. This base price is adjusted annually by an inflation index. In the first six months of fiscal 2025, the Trust received $127,442 in sulfur royalties under the Mobil Sulfur Agreement from a combination of previous quarters and corrections uncovered during the royalty examination process. In the first six months of fiscal 2024, the Trust received $68,205 in sulfur royalties under the Mobil Sulfur Agreement.
Current wording
The Trust is also entitled under an agreement with Mobil to receive a 2% royalty on gross receipts of sales of sulfur obtained as a by-product of sour gas produced from the western part of Oldenburg ("the Mobil Sulfur Agreement"). The payment of the sulfur royalty is conditioned upon sales of sulfur by Mobil Erdgas at a selling price above an agreed upon base price. This base price is adjusted annually by an inflation index. In the first nine months of fiscal 2025, the Trust received $188,724 in sulfur royalties under the Mobil Sulfur Agreement from a combination of previous quarters and corrections uncovered during the royalty examination process. In the first nine months of fiscal 2024, the Trust received $68,205 in sulfur royalties under the Mobil Sulfur Agreement.
Previous wording
Total royalty income received during the second quarter of fiscal 2025 was based upon actual royalties received by the Trust during the first calendar quarter of 2025. A distribution of $0.20 per unit was paid on May 28, 2025 to owners of record as of May 16, 2025. Comparisons of total royalty income received and net income for the second quarter of fiscal 2025 and 2024 are shown below.
Current wording
Total royalty income received during the third quarter of fiscal 2025 was derived from sales of gas, sulfur, and oil from the Trust's overriding royalty areas in Germany during the second calendar quarter of 2025. A distribution of 26 cents per unit was paid on August 27, 2025 to owners of record as of August 15, 2025. Comparisons of total royalty income and net income for the third quarter of fiscal 2025 and 2024 are shown below.
Previous wording
The increase in total royalty income for the second quarter of fiscal 2025 in comparison to the second quarter of fiscal 2024 resulted from the royalty payments based on the higher gas prices and higher average exchange rates experienced during the current quarter. Total royalty income can potentially include positive and/or negative adjustments that the operators made during the quarter based upon their corrected royalty calculations for the prior periods, as well as the inclusion of Mobil sulfur royalties. In the second quarter of fiscal 2025, total royalty income was reduced by a negative carryover under the OEG royalty agreement of $45,000 but was increased by Mobil sulfur royalties of $57,240. In the second quarter of fiscal 2024, total royalty income was reduced by a negative carryover under the OEG royalty agreement of $214,362 and was unchanged by Mobil sulfur royalties of $0.
Current wording
The increase in total royalty income for the third quarter of fiscal 2025 in comparison to the third quarter of fiscal 2024 resulted from the increase in gas prices and the higher average exchange rate applied to the royalty conversions. Total royalty income reflects the inclusion of positive and/or negative adjustments that the operators make during the quarter based upon their corrected royalty calculations for the prior periods, as well as the inclusion of Mobil sulfur royalties. In the third quarter of fiscal 2025, total royalty income was not affected by any prior period adjustments. An overpayment of Mobil royalties of $30,047 was offset against the Mobil sulfur royalty payment of $61,282, which yielded a royalty payment of $31,235. An overpayment of Euros 8,705 under the OEG royalty will be carried over to the fourth quarter of fiscal 2025. In the third quarter of fiscal 2024, total royalty income was not affected because there were no prior period adjustments. Due to an overpayment of Mobil royalties (Euros 395,842) during the third quarter of fiscal 2024, the Mobil sulfur royalty (Euros 39,943) was not be paid until the fourth quarter of fiscal 2024. In addition, there was an overpayment of OEG royalties (Euros 201,509) during the third quarter of fiscal 2024.
Previous wording
The following table is intended to illustrate trends based on actual gas sales in each quarter. Gas royalties are determined based on the actual physical gas sales that occurred during the first calendar quarter of 2025 and the average German Border Import gas Price for the period of November 2024 through January 2025.
Current wording
The following table is intended to illustrate trends based on actual gas sales in each fiscal quarter. Gas royalties shown in the table below are determined based on the actual physical gas sales that occurred during the second calendar quarter of 2025 and the average German Border Import gas Price for the period of February 2025 through April 2025.
Previous wording
Excluding the effects of differences in prices and average exchange rates, the combination of royalty rates on gas sold from western Oldenburg results in an effective royalty rate approximately seven times higher than the royalty rate on gas sold from eastern Oldenburg. This is of particular significance to the Trust since gas sold from western Oldenburg provides the bulk of royalties paid to the Trust. For the calendar quarter ended March 31, 2025, gas sales from western Oldenburg accounted for only 29% of all gas sales from the Oldenburg concession. However, royalties on these gas sales provided approximately 78%, or $1,615,410 out of $1,819,549, in Oldenburg royalties attributable to gas.
Current wording
Excluding the effects of differences in prices and average exchange rates, the combination of royalty rates on gas sold from western Oldenburg results in an effective royalty rate approximately seven times higher than the royalty rate on gas sold from eastern Oldenburg. This is of particular significance to the Trust since gas sold from western Oldenburg provides the bulk of royalties paid to the Trust. For the calendar quarter ended June 30, 2025, gas sales from western Oldenburg accounted for only 29.1% of all gas sales from the Oldenburg concession. However, royalties on these gas sales provided approximately 77.5%, or $1,906,880 out of $2,459,191, of all royalties attributable to gas.
Previous wording
The current Statement of Assets, Liabilities and Trust Corpus of the Trust at April 30, 2025, compared to that at fiscal year-end (October 31, 2024), shows an increase in assets primarily to reserve for present and future liabilities.
Current wording
The current Statement of Assets, Liabilities and Trust Corpus of the Trust at July 31, 2025, compared to that at fiscal year-end (October 31, 2024), shows an increase in assets due to the absence of negative adjustments and higher royalty receipts during the third quarter of fiscal 2025.
Previous wording
Results: First Six Months of Fiscal 2025 versus First Six Months of Fiscal 2024
Current wording
Results: First Nine Months of Fiscal 2025 Versus First Nine Months of Fiscal 2024
Previous wording
Total royalty income can potentially include positive and/or negative adjustments that the operators made during the quarter based upon their corrected royalty calculations for the prior periods, as well as the inclusion of Mobil sulfur royalties. During the first six months of fiscal 2025, total royalty income was reduced because there were prior period adjustments totaling $2,567,090 and was increased by Mobil sulfur royalties of $127,442. During the first six months of fiscal 2024, total royalty income was reduced because there were prior period negative adjustments totaling $2,152,016 but was increased by Mobil sulfur royalties of $68,205.
Current wording
The increase in total royalty income in the first nine months of fiscal 2025 from the first nine months of fiscal 2024 resulted from higher gas prices under both the Mobil and OEG Agreements. Total royalty income also reflects the inclusion of various positive and negative adjustments that the operators made during the nine-month period, including adjustments from prior periods, as well as the inclusion of Mobil sulfur royalties. During the first nine months of fiscal 2025, total royalty income was reduced because there were prior and current period negative adjustments totaling $1,815,276 but was increased by Mobil sulfur royalties of $188,724. During the first nine months of fiscal 2024, total royalty income declined reflecting prior period negative adjustments totaling $2,150,743 but was increased by Mobil sulfur royalties of $68,205.
Previous wording
The following table is intended to illustrate trends based on actual gas sales in each quarter. Gas royalties for the first six months of fiscal 2025 are determined based on the actual physical gas sales that occurred during the fourth calendar quarter of 2024 and the first calendar quarter of 2025 and the average German Border Import gas Price for the period of August 2024 through January 2025.
Current wording
The following table is intended to illustrate trends based on actual gas sales in each of the fiscal nine-month periods shown. Gas royalties for the nine-month periods shown in the table below are determined based on the actual physical gas sales that occurred during the period from October 1, 2024 through June 30, 2025 and the average German Border Import gas Price for the period of August 1, 2024 through April 30, 2025.
Previous wording
Gas Data Providing Basis for Six-Month Fiscal Period Royalties
Current wording
Gas Data Providing Basis for Fiscal Nine-Month Period Royalties
Previous wording
For the six months ended 3/31/2025, gas sales from western Oldenburg accounted for only 29.7% of all gas sales from the Oldenburg concession. However, royalties on these gas sales provided approximately 81.8%, or $2,031,473 out of $2,235,613, of all royalties attributable to gas sales from the Oldenburg concession.
Current wording
For the nine months ended June 30, 2025, gas sales from western Oldenburg accounted for only 29.5% of all gas sales from the Oldenburg concession. However, royalties on these gas sales provided approximately 79.8%, or $4,142,237 out of $5,193,271, of all royalties attributable to gas sales from the Oldenburg concession.