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.

 •  1/7/2026 Letter Continued (Full PDF)
 •  1/3/2024 NRT Stockholder Letter
 •  1/16/2024 NRT Stockholder Letter
 •  1/14/2025 NRT Stockholder Letter
 •  More "Rental" Category Stockholder Letters
 •  NRT Benford's Law Stock Score = 70

NRT Shareholder/Stockholder Letter Transcript:

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The Annual Meeting of North European Oil Royalty Trust will be held on Tuesday, February 17, 2026
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/81979608232. 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.
Table of Contents
Management   s Discussion and Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Description of Trust Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Critical Accounting Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Report of Independent Registered Public Accounting Firms. . . . . . . . . . . . . . . .
Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Disclosure Controls and Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Internal Control over Financial Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trustees, Administration, and Important Contacts . . . . . . . . . . . . . . . . . . . . . . .
2025 Tax Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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9-10
11-13
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IMPORTANT TAX AND FINANCIAL INFORMATION
For your convenience, the information necessary to prepare
your 2025 tax return is included in the removable
   2025 Tax Letter.   
Please note that there will be no separate mailing of the tax letter.
The 2025 Tax Letter, as well as the Annual Report on Form 10-K
for fiscal 2025, are also available at the Trust   s website, www.neort.com.

REPORT TO UNIT OWNERS
Management   s Discussion and Analysis of Financial Condition and Results of Operations
Executive Summary
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 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 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
necessary royalty adjustments for the prior calendar year with a positive or negative adjustment made
accordingly.
-1-

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 73% 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. While future maintenance and
development projects on the underlying assets will affect the quantity of proved reserves and can offset
the reduction in the depletion of proved reserves, the timing and size of these projects, if they occur, will
depend on the market prices of oil and natural gas. If the operators developing the concession do not
perform such additional maintenance or development projects, the future rate of production decline of
proved reserves may be higher than the rate currently expected by the Trust and 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 2025 versus Fiscal 2024
Negative calendar 2023 adjustments had an impact on both the fourth quarter of fiscal 2024 and
the first quarter of fiscal 2025. The actual adjustments affecting scheduled royalty payments in the first
quarter of fiscal 2025 totaled ($1,754,663). This adjustment eliminated royalties payable under the OEG
Agreement and reduced royalties received under the Mobil Agreement to $505,864 during the first quarter
of fiscal 2025. The year-end adjustment for calendar 2024 was $472,384. There is a negative end-ofquarter adjustment for the fourth fiscal quarter that will reduce royalty income for the first quarter of
fiscal 2026 by Euros 266,306 ($308,168 based on the exchange rate of 1.157196 as of October 31, 2025).
For fiscal 2025, the Trust   s gross royalty income increased 49.5% to $8,650,094 from $5,785,303
in fiscal 2024. The total distribution for fiscal 2025 was $0.81 per unit compared to $0.48 per unit for
fiscal 2024. Gas prices under both royalty agreements were higher, gas sales were lower, and average
exchange rates were up. The royalty income received under the Mobil Agreement in fiscal 2025
increased 30.7% or, $1,301,622, to $5,535,716 compared to $4,234,094 received in fiscal 2024. Royalty
income received under the OEG Agreement in fiscal 2025 increased 81.3% or, $1,261,744, to $2,812,905
compared to $1,551,161 received in fiscal 2024.
Gas sales under the Mobil Agreement decreased 4.7% to 11.994 Billion cubic feet (   Bcf   ) in fiscal
2025 from 12.592 Bcf in fiscal 2024. With the continued lack of drilling by the operating companies
through 2025, there was a slight decline in gas production. Absent a renewed drilling program, the
-2-



 1/7/2026 Letter Continued (Full PDF)