On this page of StockholderLetter.com we present the latest annual shareholder letter from NORTH EUROPEAN OIL ROYALTY TRUST — ticker symbol NRT. Reading current and past NRT letters to shareholders can bring important insights into the investment thesis.
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The Annual Meeting of North European Oil Royalty Trust will be held on Wednesday, February 26, 2025
beginning at 11:00 a.m. EST via Zoom link as further detailed in the box immediately below. This will
facilitate the participation of any interested unit owners. All unit owners are welcome to attend.
Unit owners are urged to vote by proxy in the manner provided in the proxy card. 
Unit owners are welcome to participate in the annual meeting and ask questions during the question
period by using the following Zoom link, https://us02web.zoom.us/j/83538431577  At the start of
the presentation, you will be muted. At the start of the question period if you wish to pose a
question, please click on the    Participants    button at the bottom of the Zoom screen. A window
will open to the right. Click on the           at the bottom of the window and click    Raise Hand.    You
will then be called on to unmute yourself and pose your question.

7DEOH RI &RQWHQWV 
Management   s Discussion and Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
1-4 
Description of Trust Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
5
Critical Accounting Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
6
Report of Independent Registered Public Accounting Firms. . . . . . . . . . . . . . . .  7-10 
Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  11-12 
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  13-15 
Disclosure Controls and Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
16 
Internal Control over Financial Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
16 
Trustees, Administration, and Important Contacts . . . . . . . . . . . . . . . . . . . . . . .
17 
2024 Tax Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18-21


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The Trust is a passive fixed investment trust which holds overriding royalty rights, receives
income under those rights from certain operating companies, pays its expenses and distributes the
remaining net funds to its unit owners. As mandated by the Trust Agreement, distributions of income are
made on a quarterly basis. These distributions, as determined by the Trustees, constitute substantially all
the funds on hand after provision is made for the Trust   s anticipated expenses.
The Trust does not engage in any business or extractive operations of any kind in the areas over
which it holds royalty rights and is precluded from engaging in such activities by the Trust Agreement.
There are no requirements, therefore, for capital resources for capital expenditures or investments in order
to continue the receipt of royalty revenues by the Trust.
The operating companies pay royalties to the Trust based on their sales of natural gas, sulfur, and
oil. Of these three products, natural gas provided approximately 94% of the total royalties in fiscal 2024.
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 produced, and the exchange rate. For purposes of the
royalty calculations, the determination of the gas price is explained in detail in the following three
paragraphs.
On August 26, 2016, the Mobil and OEG Agreements were amended to establish a new base to
determine gas prices for the calculation of the Trust   s royalties. This new base is set as the state
assessment base for natural gas used by the operating companies in their calculation of royalties payable
to the State of Lower Saxony. This change reflects a shift to the prices calculated for the German Border
Import gas Price (   GBIP   ). The average combined totals of the GBIP for the relevant
three-month period are used to provide an average gas price for the quarter. This average gas price is
increased by 1% and 3% per the terms of the Mobil and OEG Royalty Agreements and is used by the
operators to calculate the royalties payable to the Trust for a given quarter.
The change to the GBIP has reduced the scope and cost of the accounting examination, eliminated
ongoing disputes with OEG and Mobil regarding sales to related parties, and reduced prior year
adjustments to the normally scheduled year-end reconciliation. The pricing basis has also eliminated
certain costs that were previously deductible prior to the royalty calculation under the OEG Agreement.
On approximately the 25th of the months of January, April, July and October, the operating
companies calculate the volume of gas sold during the previous calendar quarter. This volume of gas sold
is then multiplied by the average adjusted GBIP available at that time. The respective royalty amount is
divided into thirds and forms the monthly royalty payments to the Trust for the Trust   s upcoming fiscal
quarter. When the operating companies determine the actual amount of royalties that were payable for the
prior calendar quarter, they also look at the actual amount of royalties that were paid to the Trust for that
period and calculate the difference between what was paid and what was payable. Positive adjustments
are paid immediately and any negative adjustments are deducted from the next royalty payment. In
September of the succeeding calendar year, the operating companies make the final determination of any
-1-
necessary royalty adjustments for the prior calendar year with a positive or negative adjustment made
accordingly.
There are two types of natural gas found within the Oldenburg concession, sweet gas and sour gas.
Sweet gas has little or no contaminants and needs very minor treatment before it can be sold. Sour gas, in
comparison, must be processed at the Grossenkneten desulfurization plant which commenced operations
in 1972. The desulfurization process removes hydrogen sulfide and other contaminants before the clean
gas can be sold. The hydrogen sulfide in gaseous form is converted to sulfur in a solid form and sold
separately.
EMPG decommissioned one of the remaining two sulfur processing units ("trains"). The
decommissioning was conducted during May-July 2023. The plant is subject to an ongoing schedule of
inspections which may result in shutdowns while required repairs are conducted. Full operation of the
remaining train is approximately 200 million cubic feet ("MMcf") per day following the shutdown. It is
expected that the single train will be sufficient to handle sour gas production through-put from the
concession. It is also expected that operating expenses in the future may be reduced by this measure.
Since sour gas accounts for 71% of overall gas sales and 97% of western gas sales, any future shutdown
of the remaining train could significantly impact royalty income. The Trust has insufficient data to predict
whether, when and to what extent any future shutdown may occur.
The Trust has no means of ensuring continued income from overriding royalty rights at their
present level or otherwise. 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.
Eventually, the assets of the Trust will cease to produce in commercial quantities and the Trust will cease
to receive proceeds from such assets.  
Results: Fiscal 2024 versus Fiscal 2023
Fiscal 2023 was a turbulent year with dramatic price swings and significant negative adjustments
totaling $2,161,390 that carried over beyond the year   s end. Fiscal 2024 was more stable price-wise
despite the overall lower gas prices but it too was impacted by significant negative adjustments carrying
over beyond the year   s end. Due to the very high gas prices in effect towards the end of 2022 that were a
determining factor in royalty payments in early 2023, the Trust was notified in September 2024 that the
calendar 2023 end-of-year adjustment would be a sizeable negative amount under both royalty
agreements. These negative adjustments eliminated the scheduled royalty payments for October 2024 and
will have an impact on the first quarter of fiscal 2025, both eliminating the scheduled royalty payments in
the case of the OEG royalty and significantly reducing these payments in the case of the Mobil royalty.
Based on the current Euro/dollar exchange rate of 1.0521, the OEG and Mobil negative adjustments for
calendar 2023 are $1,000,143 and $1,619,368, respectively.
For fiscal 2024, the Trust   s gross royalty income decreased 73.7% to $5,785,303 from
$22,016,103 in fiscal 2023. The total distribution for fiscal 2024 was $0.48 per unit compared to $2.26
per unit for fiscal 2023. Gas prices under both royalty agreements were lower, gas sales were mixed, and
average exchange rates were up or flat. The royalty income received under the Mobil Agreement in fiscal
2024 decreased by $9,717,057 as compared to fiscal 2023. Royalty income received under the OEG
Agreement in fiscal 2024 decreased by $6,513,743 as compared to fiscal 2023.
Gas sales under the Mobil Agreement increased 1.2% to 12.592 Billion cubic feet (   Bcf   ) in fiscal
2024 from 12.439 Bcf in fiscal 2023. Despite the lack of drilling by the operating companies during 2024,
-2-
 • shareholder letter icon 1/14/2025 Letter Continued (Full PDF)
 • stockholder letter icon 1/3/2024 NRT Stockholder Letter
 • stockholder letter icon 1/16/2024 NRT Stockholder Letter
 • stockholder letter icon More "Rental" Category Stockholder Letters
 • Benford's Law Stocks icon NRT Benford's Law Stock Score = 86


NRT Shareholder/Stockholder Letter Transcript:

$QQXDO 5HSRUW    4
1RUWK 
(XURSHDQ 
2LO 
5R\DOW\ 
7UXVW
$77(17,21 
3/($6( 5(7$,1
&5,7,&$/ 7$; ,1)250$7,21 (1&/26('


The Annual Meeting of North European Oil Royalty Trust will be held on Wednesday, February 26, 2025
beginning at 11:00 a.m. EST via Zoom link as further detailed in the box immediately below. This will
facilitate the participation of any interested unit owners. All unit owners are welcome to attend.
Unit owners are urged to vote by proxy in the manner provided in the proxy card. 
Unit owners are welcome to participate in the annual meeting and ask questions during the question
period by using the following Zoom link, https://us02web.zoom.us/j/83538431577  At the start of
the presentation, you will be muted. At the start of the question period if you wish to pose a
question, please click on the    Participants    button at the bottom of the Zoom screen. A window
will open to the right. Click on the           at the bottom of the window and click    Raise Hand.    You
will then be called on to unmute yourself and pose your question.

7DEOH RI &RQWHQWV 
Management   s Discussion and Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
1-4 
Description of Trust Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
5
Critical Accounting Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
6
Report of Independent Registered Public Accounting Firms. . . . . . . . . . . . . . . .  7-10 
Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  11-12 
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  13-15 
Disclosure Controls and Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
16 
Internal Control over Financial Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
16 
Trustees, Administration, and Important Contacts . . . . . . . . . . . . . . . . . . . . . . .
17 
2024 Tax Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18-21


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0DQDJHPHQW  V 'LVFXVVLRQ DQG $QDO\VLV RI )LQDQFLDO &RQGLWLRQ DQG 5HVXOWV RI 2SHUDWLRQV 
([HFXWLYH 6XPPDU\
The Trust is a passive fixed investment trust which holds overriding royalty rights, receives
income under those rights from certain operating companies, pays its expenses and distributes the
remaining net funds to its unit owners. As mandated by the Trust Agreement, distributions of income are
made on a quarterly basis. These distributions, as determined by the Trustees, constitute substantially all
the funds on hand after provision is made for the Trust   s anticipated expenses.
The Trust does not engage in any business or extractive operations of any kind in the areas over
which it holds royalty rights and is precluded from engaging in such activities by the Trust Agreement.
There are no requirements, therefore, for capital resources for capital expenditures or investments in order
to continue the receipt of royalty revenues by the Trust.
The operating companies pay royalties to the Trust based on their sales of natural gas, sulfur, and
oil. Of these three products, natural gas provided approximately 94% of the total royalties in fiscal 2024.
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 produced, and the exchange rate. For purposes of the
royalty calculations, the determination of the gas price is explained in detail in the following three
paragraphs.
On August 26, 2016, the Mobil and OEG Agreements were amended to establish a new base to
determine gas prices for the calculation of the Trust   s royalties. This new base is set as the state
assessment base for natural gas used by the operating companies in their calculation of royalties payable
to the State of Lower Saxony. This change reflects a shift to the prices calculated for the German Border
Import gas Price (   GBIP   ). The average combined totals of the GBIP for the relevant
three-month period are used to provide an average gas price for the quarter. This average gas price is
increased by 1% and 3% per the terms of the Mobil and OEG Royalty Agreements and is used by the
operators to calculate the royalties payable to the Trust for a given quarter.
The change to the GBIP has reduced the scope and cost of the accounting examination, eliminated
ongoing disputes with OEG and Mobil regarding sales to related parties, and reduced prior year
adjustments to the normally scheduled year-end reconciliation. The pricing basis has also eliminated
certain costs that were previously deductible prior to the royalty calculation under the OEG Agreement.
On approximately the 25th of the months of January, April, July and October, the operating
companies calculate the volume of gas sold during the previous calendar quarter. This volume of gas sold
is then multiplied by the average adjusted GBIP available at that time. The respective royalty amount is
divided into thirds and forms the monthly royalty payments to the Trust for the Trust   s upcoming fiscal
quarter. When the operating companies determine the actual amount of royalties that were payable for the
prior calendar quarter, they also look at the actual amount of royalties that were paid to the Trust for that
period and calculate the difference between what was paid and what was payable. Positive adjustments
are paid immediately and any negative adjustments are deducted from the next royalty payment. In
September of the succeeding calendar year, the operating companies make the final determination of any
-1-

necessary royalty adjustments for the prior calendar year with a positive or negative adjustment made
accordingly.
There are two types of natural gas found within the Oldenburg concession, sweet gas and sour gas.
Sweet gas has little or no contaminants and needs very minor treatment before it can be sold. Sour gas, in
comparison, must be processed at the Grossenkneten desulfurization plant which commenced operations
in 1972. The desulfurization process removes hydrogen sulfide and other contaminants before the clean
gas can be sold. The hydrogen sulfide in gaseous form is converted to sulfur in a solid form and sold
separately.
EMPG decommissioned one of the remaining two sulfur processing units ("trains"). The
decommissioning was conducted during May-July 2023. The plant is subject to an ongoing schedule of
inspections which may result in shutdowns while required repairs are conducted. Full operation of the
remaining train is approximately 200 million cubic feet ("MMcf") per day following the shutdown. It is
expected that the single train will be sufficient to handle sour gas production through-put from the
concession. It is also expected that operating expenses in the future may be reduced by this measure.
Since sour gas accounts for 71% of overall gas sales and 97% of western gas sales, any future shutdown
of the remaining train could significantly impact royalty income. The Trust has insufficient data to predict
whether, when and to what extent any future shutdown may occur.
The Trust has no means of ensuring continued income from overriding royalty rights at their
present level or otherwise. 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.
Eventually, the assets of the Trust will cease to produce in commercial quantities and the Trust will cease
to receive proceeds from such assets.  
Results: Fiscal 2024 versus Fiscal 2023
Fiscal 2023 was a turbulent year with dramatic price swings and significant negative adjustments
totaling $2,161,390 that carried over beyond the year   s end. Fiscal 2024 was more stable price-wise
despite the overall lower gas prices but it too was impacted by significant negative adjustments carrying
over beyond the year   s end. Due to the very high gas prices in effect towards the end of 2022 that were a
determining factor in royalty payments in early 2023, the Trust was notified in September 2024 that the
calendar 2023 end-of-year adjustment would be a sizeable negative amount under both royalty
agreements. These negative adjustments eliminated the scheduled royalty payments for October 2024 and
will have an impact on the first quarter of fiscal 2025, both eliminating the scheduled royalty payments in
the case of the OEG royalty and significantly reducing these payments in the case of the Mobil royalty.
Based on the current Euro/dollar exchange rate of 1.0521, the OEG and Mobil negative adjustments for
calendar 2023 are $1,000,143 and $1,619,368, respectively.
For fiscal 2024, the Trust   s gross royalty income decreased 73.7% to $5,785,303 from
$22,016,103 in fiscal 2023. The total distribution for fiscal 2024 was $0.48 per unit compared to $2.26
per unit for fiscal 2023. Gas prices under both royalty agreements were lower, gas sales were mixed, and
average exchange rates were up or flat. The royalty income received under the Mobil Agreement in fiscal
2024 decreased by $9,717,057 as compared to fiscal 2023. Royalty income received under the OEG
Agreement in fiscal 2024 decreased by $6,513,743 as compared to fiscal 2023.
Gas sales under the Mobil Agreement increased 1.2% to 12.592 Billion cubic feet (   Bcf   ) in fiscal
2024 from 12.439 Bcf in fiscal 2023. Despite the lack of drilling by the operating companies during 2024,
-2-



shareholder letter icon 1/14/2025 Letter Continued (Full PDF)
 

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