North European Oil Royalty Trust 8-K, filed May 2, 2022
North European Oil Royalty Trust (NRT)
About this 8-K
North European Oil Royalty Trust filed this 8-K on May 2, 2022, reporting on events of April 30, 2022.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND
EXCHANGE COMMISSION
WASHINGTON,
DC 20549
FORM 8-K
NORTH EUROPEAN OIL
ROYALTY TRUST
Delaware 1-8245 22-2084119
State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation File Number) Identification No.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.below):
[ ] Written communication
pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant
to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement
communication pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement
communication pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Units of Beneficial Interest NRT New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR Section 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR Section 240.12b-2).
Emerging growth company [ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Item 2.02. Results of Operations and Financial Condition.
On April 29, 2022, North European Oil Royalty Trust issued a press release via PR Newswire announcing the Trust's distribution for the second quarter of fiscal 2022. Furnished herewith is a copy of the press release, which is incorporated by reference herein.
Item 9.01. Financial Statements and Exhibits.
(c) ExhibitsThe following exhibit is furnished herewith:
Exhibit 99. A press release dated April 29, 2022 and disseminated through PR Newswire announcing the distribution for North European Oil Royalty Trust for the second quarter of fiscal 2022.
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
NORTH EUROPEAN OIL ROYALTY TRUST
(Registrant)
/s/ John R. Van Kirk
John R. Van Kirk
Managing Director
May 2, 2022
Exhibit 99
PR NEWSWIRE
Keene, N.H. April 29, 2022 - The Trustees of North European Oil Royalty Trust (NYSE-NRT) announced today a quarterly distribution of $0.38 per unit for the second quarter of fiscal 2022, payable on May 25, 2022 to owners of record on May 13, 2022. Natural gas sold during the first calendar quarter of 2022 is the primary source of royalty income on which the May 2022 distribution is based.
John R. Van Kirk, Managing Director, reported that this year's quarterly distribution of $0.38 per unit is 171.43%, or $0.24 per unit, higher than the distribution of $0.14 per unit for the second quarter of fiscal 2021. For the quarter ending April 30, 2022, the impact on royalty income of higher gas prices easily offset both the lower gas sales and lower average exchange rate. There were no adjustments during either the second quarter of fiscal 2022 or 2021. Royalty income under the Mobil Sulfur Agreement was $70,618 and $36,411 for the second quarters of fiscal 2022 and 2021, respectively. Additional details will be included in the earnings press release scheduled for publication on or about May 13, 2022.
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 first calendar quarters of 2022 and 2021.
| Mobil Agreement | 1st Calendar Quarter Ended 3/31/2022 | 1st Calendar Quarter Ended 3/31/2021 | Percentage Change | |
|---|---|---|---|---|
| Gas Sales (Bcf) 1 | 3.605 | 4.354 | -17.20% | |
| Gas Prices2 (Ecents/Kwh)3 | 5.1442 | 1.5395 | +234.15% | |
| Average Exchange Rates4 | 1.0883 | 1.2020 | -9.46% | |
| Gas Royalties | $2,307,437 | $921,896 | +150.29% | |
| OEG Agreement | ||||
| Gas Sales (Bcf) | 13.123 | 14.495 | -9.47% | |
| Gas Prices (Ecents/Kwh) | 5.2460 | 1.5700 | +234.14% | |
| Average Exchange Rates | 1.0867 | 1.2022 | -9.61% | |
| Gas Royalties | $1,257,976 | $383,843 | +227.73% |
Footnotes:
- 1. Billion cubic feet
- 2. Gas prices derived from November-January period
- 3. Euro cents per kilowatt hour
- 4. Based on average Euro/dollar exchange rates of cumulative royalty transfers
The cumulative 12-month distribution, which includes the May 2022 distribution and the three prior quarterly distributions, is $0.92 per unit. This 12-month cumulative distribution is 196.77% or $0.61 per unit higher than the prior cumulative 12-month distribution of $0.31 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.