North European Oil Royalty Trust (NRT, Financial) filed Quarterly Report for the period ended 2011-01-31.
North European Oil Rylty has a market cap of $288.8 million; its shares were traded at around $31.42 with a P/E ratio of 15.1 and P/S ratio of 14.7. The dividend yield of North European Oil Rylty stocks is 7%. North European Oil Rylty had an annual average earning growth of 4.2% over the past 10 years.
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 account for
approximately 99% of all the royalties under this agreement. Historically,
as compared to the OEG Agreement described below, the Trust has received
significantly greater royalty payments under the Mobil Agreement due to the
higher royalty rate specified by that agreement.
Under another set of rights covering the entire Oldenburg
concession and pursuant to the agreement with OEG, the Trust receives
royalties at the rate of 0.6667% on gross receipts from sales by BEB of gas
well gas, oil well gas, crude oil, condensate and sulfur (removed during the
processing of sour gas) less a certain allowed deduction of costs (the "OEG
Agreement"). Under the OEG Agreement, 50% of the field handling, treatment
and transportation costs, as reported for state royalty purposes, are
deducted from the gross sales receipts prior to the calculation of the
royalty to be paid to the Trust. NV Nederlandse Gasunie (the state owned
For the first quarter of fiscal 2011, the Trust's net income was
$5,084,139, an increase of 10.13% from the net income of $4,616,291 for the
first quarter of fiscal 2010. Gross royalties received for the first quarter
of fiscal 2011 were $5,396,283, an increase of 10.25% as compared to
$4,894,409 for the first quarter of fiscal 2010. Royalties received during
the first quarter of fiscal 2011 were derived from sales of gas, sulfur and
oil from the Trust's overriding royalty areas in Germany during the fourth
calendar quarter of 2010. A distribution of $0.55 per unit was paid on
February 23, 2011 to owners of record as of February 11, 2011.
1st Fiscal Qtr. 1st Fiscal Qtr. Percentage
Mobil Agreement Ended 1/31/2011 Ended 1/31/2010 Change
- - - -
Gas Sales (Bcf) 11.707 11.861 - 1.30%
Gas Prices (Ecents/Kwh) 2.3753 1.6491 + 44.04%
Gas Prices ($/Mcf) $ 9.16 $ 6.88 + 33.14%
Average Exchange Rate 1.3431 1.4493 - 7.33%
1st Fiscal Qtr. 1st Fiscal Qtr. Percentage
OEG Agreement Ended 1/31/2011 Ended 1/31/2010 Change
- - - -
Gas Sales (Bcf) 30.213 30.616 - 1.32%
Gas Prices (Ecents/Kwh) 2.5404 1.9151 + 32.65%
Gas Prices ($/Mcf) $ 9.55 $ 7.74 + 23.39%
Average Exchange Rate 1.3436 1.4405 - 6.73%
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 quarter just ended, gas sales
from western Oldenburg accounted for only 38.75% of all gas sales.
However, royalties on these gas sales provided approximately 81.39% or
$4,259,728 out of a total of $5,233,878 in Oldenburg royalties attributable
to gas.
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North European Oil Rylty has a market cap of $288.8 million; its shares were traded at around $31.42 with a P/E ratio of 15.1 and P/S ratio of 14.7. The dividend yield of North European Oil Rylty stocks is 7%. North European Oil Rylty had an annual average earning growth of 4.2% over the past 10 years.
Highlight of Business Operations:
Under one set of rights covering the western part of the Oldenburgconcession (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 account for
approximately 99% of all the royalties under this agreement. Historically,
as compared to the OEG Agreement described below, the Trust has received
significantly greater royalty payments under the Mobil Agreement due to the
higher royalty rate specified by that agreement.
Under another set of rights covering the entire Oldenburg
concession and pursuant to the agreement with OEG, the Trust receives
royalties at the rate of 0.6667% on gross receipts from sales by BEB of gas
well gas, oil well gas, crude oil, condensate and sulfur (removed during the
processing of sour gas) less a certain allowed deduction of costs (the "OEG
Agreement"). Under the OEG Agreement, 50% of the field handling, treatment
and transportation costs, as reported for state royalty purposes, are
deducted from the gross sales receipts prior to the calculation of the
royalty to be paid to the Trust. NV Nederlandse Gasunie (the state owned
For the first quarter of fiscal 2011, the Trust's net income was
$5,084,139, an increase of 10.13% from the net income of $4,616,291 for the
first quarter of fiscal 2010. Gross royalties received for the first quarter
of fiscal 2011 were $5,396,283, an increase of 10.25% as compared to
$4,894,409 for the first quarter of fiscal 2010. Royalties received during
the first quarter of fiscal 2011 were derived from sales of gas, sulfur and
oil from the Trust's overriding royalty areas in Germany during the fourth
calendar quarter of 2010. A distribution of $0.55 per unit was paid on
February 23, 2011 to owners of record as of February 11, 2011.
1st Fiscal Qtr. 1st Fiscal Qtr. Percentage
Mobil Agreement Ended 1/31/2011 Ended 1/31/2010 Change
- - - -
Gas Sales (Bcf) 11.707 11.861 - 1.30%
Gas Prices (Ecents/Kwh) 2.3753 1.6491 + 44.04%
Gas Prices ($/Mcf) $ 9.16 $ 6.88 + 33.14%
Average Exchange Rate 1.3431 1.4493 - 7.33%
1st Fiscal Qtr. 1st Fiscal Qtr. Percentage
OEG Agreement Ended 1/31/2011 Ended 1/31/2010 Change
- - - -
Gas Sales (Bcf) 30.213 30.616 - 1.32%
Gas Prices (Ecents/Kwh) 2.5404 1.9151 + 32.65%
Gas Prices ($/Mcf) $ 9.55 $ 7.74 + 23.39%
Average Exchange Rate 1.3436 1.4405 - 6.73%
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 quarter just ended, gas sales
from western Oldenburg accounted for only 38.75% of all gas sales.
However, royalties on these gas sales provided approximately 81.39% or
$4,259,728 out of a total of $5,233,878 in Oldenburg royalties attributable
to gas.
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