North European Oil Royalty Trust (NRT): Business Model Canvas [Dec-2025 Updated]

You're looking at North European Oil Royalty Trust (NRT), and honestly, its business model is about as simple-and passive-as it gets: it's a pure royalty play on German oil and gas, meaning zero drilling risk for you. As someone who's spent two decades mapping out complex structures, I find this simplicity compelling, especially when you see the recent results, like the trailing twelve-month revenue hitting $6.18 million as of April 30, 2025, all collected and passed through automatically. If you want to see exactly how this trust converts German energy production into quarterly cash distributions-like the $0.81 per unit paid over the last year-dive into the full Business Model Canvas below to understand its key partners and razor-thin cost structure.

North European Oil Royalty Trust (NRT) - Canvas Business Model: Key Partnerships

The North European Oil Royalty Trust (NRT) operates as a grantor trust, meaning its entire function centers on collecting income from established royalty rights and distributing the net proceeds to unit owners; it conducts no active business operations, so capital expenditure for drilling or exploration is 0.00.

The core of the Trust's revenue generation relies on contracts with the German exploration and development subsidiaries of ExxonMobil Corp. and the Royal Dutch/Shell Group of Companies. These entities operate the underlying concessions or leases in the Federal Republic of Germany from which NRT derives its overriding royalty rights.

The financial performance of the Trust is directly tied to the terms of the two primary royalty agreements: the Mobil Royalty Agreement and the OEG Royalty Agreement. These agreements dictate the percentage royalties received on the sales of gas well gas, oil well gas, crude oil, condensate, and sulfur. The reconciliation process under these agreements can cause significant swings in distributions; for instance, substantial negative adjustments from calendar 2023 resulted in the complete elimination of all first quarter fiscal 2025 royalty payments under the OEG royalty agreement, with a residual negative balance affecting the February 2025 scheduled payment.

The American Stock Transfer & Trust Company serves as the corporate trustee, a critical partner responsible for the administrative backbone of the Trust. This entity oversees the collection of revenues, manages the payment of expenses, and handles the remittance of cash distributions on a quarterly basis. The Trust has only 2 employees, underscoring the reliance on this external trustee for administrative functions.

The operational impact of these partnerships is visible in the distribution figures for fiscal 2025. The quarterly distribution for the fourth quarter of fiscal 2025 was announced at $0.31 per unit, a significant increase from the $0.02 per unit paid in the fourth quarter of fiscal 2024, primarily due to the lack of large negative adjustments that impacted the prior year. The cumulative 12-month distribution ending November 2025 reached $0.81 per unit, which is 69% higher than the prior 12-month distribution of $0.48 per unit. For the quarter ending October 31, 2025, the Trust recorded a small negative adjustment of $10,152 from the prior quarter.

Here is a summary of the key entities involved in the Trust's royalty collection structure:

The nature of the rights held through these partnerships defines the Trust's passive income stream:

• Holds overriding royalty rights covering gas and oil production.
• Rights cover various concessions or leases in the Federal Republic of Germany.
• Receives royalties on proceeds from sales of gas well gas.
• Receives royalties on sales of oil well gas, crude oil, and condensate.
• Receives royalties on sales of sulfur.
• The Trust's trailing Price-to-Earnings ratio for the fiscal year ending October 2025 is approximately 9.28.

North European Oil Royalty Trust (NRT) - Canvas Business Model: Key Activities

You're looking at the core engine of North European Oil Royalty Trust (NRT), which is fundamentally about passive collection and distribution, not drilling or extraction. The key activities are all about managing the cash flow that comes from the German concessions held under the Mobil and OEG Royalty Agreements.

Collecting and verifying royalty payments from operating companies

This activity centers on receiving scheduled monthly payments based on prior quarter results, which are then reconciled with actual figures. The volatility here is real; for instance, the Q3 fiscal 2025 period saw a net royalty payment of only $31,235, which was the result of a negative end-of-quarter adjustment of $10,152 being offset by a positive Mobil sulfur royalty payment. To give you a sense of the scale of past volatility, the large carry over negative adjustments from calendar 2023, totaling $3,395,332, significantly impacted the Q4 fiscal 2024 distribution, which fell to just $0.02 per unit.

The Trust relies on the operators for accurate reporting, which necessitates verification. The Trustees conduct a biennial (every two years) examination of the operators' books; the examination for the 2023 and 2024 figures was scheduled to begin in October 2025. This process helps correct computational errors, like the positive adjustments seen in Q2 2025: $73,451 (Mobil) and $97,508 (OEG).

The expected cash flow for the next period is a key output of this activity. Scheduled royalty payments for Q4 fiscal 2025 were estimated at $2.6 million, based on an exchange rate of 1.1755 Euro/U.S. dollar.

Here's a quick look at the recent distribution history, which is the direct result of these collected royalties:

Distributing net income to unit owners quarterly

The Trust's purpose is to pass the income through. Distributions occur quarterly in the months of February, May, August, and November. The success of this activity is measured by the total amount returned to you, the unit owner.

The 12-month cumulative distribution ending November 2025 reached a robust $0.81 per unit. That figure is 69%, or $0.33 per unit, higher than the prior 12-month distribution of $0.48 per unit. This rebound is significant, especially when you compare the total fiscal 2024 distribution of $0.48 per unit to the fiscal 2023 total of $2.26 per unit.

The core distributions for the four quarters ending November 2025 are:

• Q4 Fiscal 2025: $0.31 per unit.
• Q3 Fiscal 2025: $0.26 per unit.
• Q2 Fiscal 2025: $0.20 per unit.
• Q1 Fiscal 2025: $0.04 per unit.

Managing administrative expenses and compliance (SEC filings)

This is where the Trust's structure shines in terms of efficiency. Because North European Oil Royalty Trust (NRT) does not engage in any business or extractive operations, its overhead is minimal. The Selling, General, and Administrative (SG&A) expenses, which cover trustee fees and administrative costs, were only $0.79 million for the Trailing Twelve Months (TTM) period leading up to late 2025.

This low cost base results in an impressive margin profile. Subtracting that $0.79 million in Operating Expenses from the $6.18 million Gross Profit yields an Operating Income and Net Income of $5.39 million for the same TTM period. That translates to an Operating Margin and Net Profit Margin of 87.18%. Compliance, which includes filing the annual 10-K (scheduled for release on or about December 31, 2025) and quarterly 10-Q reports, is handled within this minimal expense structure.

Converting Euro-denominated royalties to U.S. dollars

All royalties flow in Euros from the German concessions, so currency conversion is a critical, ongoing activity that directly impacts your dollar-denominated distribution. The exchange rate on the date of fund transfer dictates the final U.S. dollar amount received.

The exchange rate risk is material; for example, the Q4 fiscal 2025 royalty estimate of $2.6 million was calculated using an exchange rate of 1.1755 Euro/USD. This contrasts with the Q4 fiscal 2024 estimate, which used an exchange rate of 1.09.

The impact of currency fluctuations is constant, as a stronger U.S. dollar against the Euro means less in dollar terms for the Trust, even if the underlying European gas price is stable. The Trust's primary assets are overriding royalty rights on gas and oil production in Germany, held under agreements with ExxonMobil and the Royal Dutch/Shell Group.

Key elements of the royalty structure that feed into this conversion process include:

• Mobil Agreement: A 4% royalty on gross sales of gas well gas and oil well gas, plus a 2% royalty on gross receipts from sulfur.
• OEG Agreement: A 0.6667% royalty on gross sales of various hydrocarbons, less a certain allowed deduction of costs.

Finance: draft 13-week cash view by Friday.

North European Oil Royalty Trust (NRT) - Canvas Business Model: Key Resources

You're looking at the core assets that allow North European Oil Royalty Trust (NRT) to function, and honestly, it's a very simple, asset-light structure. The key resources aren't factories or inventory; they are legal rights and the governance structure to manage them.

Overriding royalty rights on oil, gas, and sulfur production in Germany.

The primary resource is the legal entitlement to a portion of the gross revenue from production. These rights are derived from agreements originally entered into in the early 1930s with German subsidiaries of ExxonMobil Corp. and the Royal Dutch/Shell Group of Companies. The most significant is the OEG Agreement, which grants a royalty rate of 0.6667% on gross sales of gas well gas, oil well gas, crude oil, condensate, and sulfur from the entire Oldenburg concession. For context, natural gas accounted for approximately 94% of the total royalties received in fiscal 2024. The Trust also receives royalties under the Mobil Agreement.

The Trust Agreement, which legally restricts active business operations.

The Trust Agreement itself is a critical, non-physical resource because it defines the strict limitations on activity. It explicitly restricts North European Oil Royalty Trust from conducting any active business operations, meaning zero capital expenditure for exploration or drilling. The mandate is limited to the collection and verification of royalty income, payment of administrative expenses, and distribution of the net proceeds to unit owners. The Trust has not issued any debt or equity securities other than its units of beneficial interest.

Cash reserves for administrative expenses and anticipated future costs.

While the Trust is designed to distribute nearly all net income quarterly, it must hold liquid assets to cover current administrative expenses and make provisions for future anticipated costs, which often relate to potential negative royalty adjustments from the operating companies. The Trust maintains a clean balance sheet, which serves as its financial cushion. For the most recent reporting period in fiscal year 2025, the Trust reported total assets of $3.6M against total liabilities of $1.8M. Furthermore, the quick ratio stood at a robust 1.97, indicating strong short-term liquidity to cover immediate obligations. The Trust carries $0.0 in total debt, resulting in a debt-to-equity ratio of 0%. Funds temporarily held before distribution are invested in interest-bearing money market accounts.

Here's a quick look at the financial structure as of late 2025 data:

Five Trustees and a Managing Director for oversight and administration.

Governance is handled by a small, dedicated group. The Trust is administered by five Trustees, one of whom is designated the Managing Trustee. Oversight and day-to-day administration are managed by a Managing Director, John R. Van Kirk. The Trust reports having 2 employees, which aligns with its passive administrative role, though the Trust Agreement itself restricts active business operations.

The governance structure is lean.

• Trustees: 5 individuals
• Managing Director: 1 individual (John R. Van Kirk)
• Reported Employees: 2

Finance: draft 13-week cash view by Friday.

North European Oil Royalty Trust (NRT) - Canvas Business Model: Value Propositions

You're looking at North European Oil Royalty Trust (NRT) for a straightforward income play, and the value proposition is built entirely around what the Trust does not do. It's a pure-play royalty interest holder, which is key to understanding the benefits you receive.

The primary value is the passive, non-operating income stream for unitholders. North European Oil Royalty Trust (NRT) holds overriding royalty rights on oil and gas production in concessions, primarily in Germany, meaning its sole business is collecting revenue, paying expenses, and distributing the rest. This structure shields you from the day-to-day complexities of the upstream energy sector. You get exposure to European natural gas/oil prices without operational risk. This is a critical distinction; NRT does not engage in exploration, drilling, or field operations. Also, this means zero capital expenditure (CAPEX) risk for drilling or exploration activities, which is a massive cost center for operating companies.

The income is delivered via regular cash payments. You see this clearly in the recent distribution history, which highlights the quarterly nature of the cash flow, even with the inherent volatility from royalty adjustments. For instance, the Q3 fiscal 2025 distribution was $0.26 per unit, payable in August 2025, which was a 23.8% increase from the $0.21 per unit paid in Q3 fiscal 2024. Then, the Q4 fiscal 2025 distribution, payable in November 2025, jumped to $0.31 per unit. This volatility is a function of the underlying agreements, but the income is regular.

Here's the quick math on the income stream as of late 2025:

The structure is designed for distribution, but you must appreciate how those distributions are calculated, especially when operators reconcile their figures. The Q3 2025 results included a net royalty payment of just $31,235 after an end-of-quarter adjustment, yet the Trust still managed a strong distribution. Conversely, the Q4 2025 distribution of $0.31 benefited from the lack of the large negative adjustments that totaled $3,395,332 which impacted the Q4 2024 distribution. This illustrates the core value proposition: the Trust passes through the gross royalty income, minus its minimal expenses, directly to you.

The key elements of this passive value proposition include:

• Passive, non-operating income stream for unitholders.
• Exposure to European natural gas/oil prices without operational risk.
• Quarterly cash distributions, with a cumulative TTM distribution of $0.81 per unit (Nov 2025).
• Zero capital expenditure (CAPEX) risk for drilling or exploration.

The Trust's TTM revenue ending April 30, 2025, was $6.18 million, leading to a TTM net income of $5.39 million. Even with a trailing P/E ratio around 9.28 to 10.80, the value is in the cash flow mechanism itself, not in operational growth. The projected scheduled royalty payments for Q4 fiscal 2025 were estimated at $2.6 million, based on an exchange rate of 1.1755. This is the raw material for your next payment. Finance: draft 13-week cash view by Friday.

North European Oil Royalty Trust (NRT) - Canvas Business Model: Customer Relationships

You're looking at the relationship North European Oil Royalty Trust (NRT) maintains with its unitholders, which is almost entirely financial and informational, given its structure as a grantor trust holding overriding royalty rights in Germany.

Transactional relationship via public stock market trading.

The primary interaction is the buying and selling of the Trust's Units of Beneficial Interest on the New York Stock Exchange (NYSE) under the ticker NRT. This is a purely transactional relationship, where the unitholder's engagement is mediated by the market. As of the close on July 31, 2025, the stock price was $5.06, contributing to a market capitalization of $46,506,460. The trading activity reflects market sentiment toward the Trust's underlying royalty income streams. The 52-week high reached $6.79 as of November 11, 2025.

Automated quarterly distribution payments to unitholders.

The core of the customer relationship is the automated, scheduled distribution of royalty income. North European Oil Royalty Trust makes distributions quarterly, typically in the months of February, May, August, and November. These payments are based on royalties payable in the prior calendar quarter, subject to adjustments.

Here are the declared distributions for fiscal year 2025:

The cumulative 12-month distribution, including the November 2025 payment, reached $0.81 per unit. This represents a 69%, or $0.33 per unit, increase compared to the prior 12-month distribution of $0.48 per unit. The Q4 2025 distribution of $0.31 is a significant increase from the $0.02 paid for the fourth quarter of fiscal 2024. The current dividend yield, based on the latest distribution context, is 21.12%.

The Trust had 9,190,590 units outstanding as of the Q3 2025 report.

The relationship is heavily influenced by adjustments to scheduled payments:

• The Q1 2025 distribution of $0.04 resulted from substantial negative adjustments from calendar 2023.
• The negative carry-over adjustment from 2023 eliminated all Q1 fiscal 2025 royalty payments under the OEG royalty agreement.
• For the quarter ending October 31, 2025, there was a small negative adjustment of $10,152.
• The Q2 2025 distribution increase reflected higher prices and a reduced negative adjustment carryover, with positive adjustments of $73,451 (Mobil) and $97,508 (OEG) recorded.

Investor relations via press releases and SEC filings (e.g., 10-K, 10-Q).

Communication is formal and regulatory-driven. North European Oil Royalty Trust uses press releases, disseminated via Cision PR Newswire, to announce quarterly distributions. The Managing Director, John R. Van Kirk, is listed as the contact, with telephone number (732) 741-4008.

Key filings and their relevance to unitholders include:

• Press Releases: Announce distribution amounts and key dates for Q1, Q2, Q3, and Q4 of fiscal 2025.
• 8-K Filings: Furnish the distribution press releases as Exhibit 99 under Item 2.02 (Results of Operations and Financial Condition).
• 10-Q Filings: Provide additional details on royalty adjustments; the Q2 2025 10-Q was scheduled for release on or about May 30, 2025.
• 10-K Filing: The annual report, which will contain further details, is scheduled to be released on or about December 31, 2025. This filing will detail that natural gas provided approximately 94% of total royalties in fiscal 2024.

For the nine months ended July 31, 2025, total royalty income was $5,594,229 (up 9.4%), and net income was $5,005,581 (up 10.5%). Natural gas accounted for about 93% of cumulative royalty income in fiscal 2025.

North European Oil Royalty Trust (NRT) - Canvas Business Model: Channels

You're looking at how North European Oil Royalty Trust (NRT) gets its information and distributions out to unit owners and how the units themselves are traded. For a statutory trust like NRT, the channels are very specific and revolve around compliance, record-keeping, and the exchange itself.

New York Stock Exchange (NYSE) for trading units (NRT)

The primary market channel for unit liquidity is the New York Stock Exchange, where the units of beneficial interest trade under the ticker symbol NRT. This exchange listing has been in place since January 29, 2002. On the last trading day of Wednesday, December 3, 2025, the stock price closed at $6.14. That day saw a trading volume of 80 thousand shares, valued at approximately $492.55 thousand. The Trust has 9,190,590 shares in issue, giving it a market capitalization of about $52.75 million as of the previous close price of $5.74. The Trust is required to maintain this channel to ensure compliance with all legal and financial requirements imposed upon a publicly traded business.

The quarterly distribution schedule dictates key dates that flow through this channel:

• The Q4 fiscal 2025 distribution was announced on October 31, 2025.
• The ex-date for this distribution was November 14, 2025.
• The payment date was November 26, 2025.

Here is a look at the recent quarterly distribution history, which is the core financial communication delivered via these channels:

The cumulative 12-month distribution ending with the November 2025 payment is $0.81 per unit, a significant increase from the prior 12-month distribution of $0.48 per unit. The current dividend yield, based on the latest distribution, is cited as 21.12%.

Trust's official website for corporate and financial information

The official digital hub for North European Oil Royalty Trust is www.neort.com. This site serves as the repository for official corporate and financial documentation, which is crucial for unit owners who must calculate their own taxable income based on the annual Tax Letter, as the Form 1099 issued by brokers may not align with the required calendar year reporting. You can access annual and quarterly reports, as well as filings with the Securities and Exchange Commission, directly from the Investor's section of the website. The Managing Director, John R. Van Kirk, can be reached at telephone number (732) 741-4008 or via email at jvankirk@neort.com.

Transfer Agent for processing and remitting cash distributions

The administrative backbone for unit ownership records and distribution processing is handled by the Transfer Agent. Broadridge Corporate Issuer Solutions maintains unit owner records. You can manage your account, view details, and update information cost-free via their web tool at www.shareholder.broadridge.com. For direct contact regarding records, Broadridge can be reached at P.O. Box 1342, Brentwood, NY 11717, or by telephone at (855) 418-5051. To be fair, American Stock Transfer & Trust Company is also noted as the corporate trustee overseeing the collection of revenues and remittance of cash distributions, so you might interact with either entity depending on the specific transaction.

Brokerage platforms for retail and institutional investors

You can purchase or sell North European Oil Royalty Trust units through virtually any standard brokerage firm, including online services. The ability to trade on the NYSE means that major platforms will carry the symbol NRT. This access is what allows for the daily price discovery and volume fluctuations observed on the exchange. The Trust has no employees and conducts no active business operations; its entire function is passive royalty collection and distribution, making the brokerage platform the sole point of entry and exit for investors.

Finance: draft 13-week cash view by Friday.

North European Oil Royalty Trust (NRT) - Canvas Business Model: Customer Segments

You're looking at the North European Oil Royalty Trust (NRT) as of late 2025, and the customer segments are clearly defined by their pursuit of yield and passive exposure to the energy sector, distinct from direct operational risk.

Income-focused individual investors seeking high yield are a core segment. These are unit holders primarily interested in the cash flow generated by the overriding royalty rights in Germany. The recent performance clearly speaks to this group; the cumulative 12-month distribution, including the November 2025 payment, reached \$0.81 per unit. This figure represents a significant increase of 69%, or \$0.33 per unit higher, compared to the prior 12-month distribution of \$0.48 per unit. The fourth quarter of fiscal 2025 saw a quarterly distribution of \$0.31 per unit, a material step up from the first quarter's \$0.04 per unit. This group is chasing the reported trailing dividend yield figures, which have recently been cited around 13.19%.

The second segment comprises institutional investors (funds, endowments) seeking passive energy exposure. These entities appreciate that NRT holds overriding royalty rights covering gas and oil production in the Federal Republic of Germany, offering exposure without the capital expenditure burden of exploration and production (E&P) companies. The structure itself is passive; for instance, the Trust reports having only 2 employees. This segment is present, as institutional investors held approximately 6.97% of the Trust's stock as of the latest data, with total share purchases over the last 24 months amounting to approximately \$19.84M in transactions. They are looking for stable, albeit volatile, cash distributions derived from underlying production, as evidenced by the LTM revenue ending April 30, 2025, being \$6.18M.

Finally, there are investors seeking a non-correlated asset to traditional E&P companies. This group values the Trust's structure, which is insulated from the day-to-day operational risks and management decisions of the operators (ExxonMobil Corp. and Royal Dutch/Shell Group subsidiaries). The royalty payments are based on production volume and price, not the operators' profitability or balance sheet health, though adjustments do occur. This segment is attracted by the trust's structure which avoids the high volatility seen in many E&P names, as NRT's weekly volatility has been reported as stable at 7% over the past year, compared to the broader US market. They are often comparing NRT to other small royalty trusts, where competitors have market caps in the range of \$46.7M to \$60.4M.

Here's a quick look at the key financial metrics that define the appeal for these segments:

The distribution history shows the variability inherent in royalty income, which these segments must accept:

• Q4 Fiscal 2025 Distribution: \$0.31 per unit.
• Q2 Fiscal 2025 Distribution: \$0.20 per unit.
• Q1 Fiscal 2025 Distribution: \$0.04 per unit.
• Q4 Fiscal 2024 Distribution: \$0.02 per unit.

The significant swings, like the jump from \$0.04 in Q1 2025 to \$0.31 in Q4 2025, are tied to the settlement of prior negative adjustments, such as the large carry over negative adjustments from calendar 2023 totaling \$3,395,332 that impacted prior periods. The Q4 2025 distribution benefited from a lack of substantial negative adjustments, only seeing a small negative adjustment of \$10,152 for the quarter ending October 31, 2025. Finance: review the impact of the \$3,395,332 negative adjustment carryover on the 2024 distribution versus the 2025 recovery by next Tuesday.

North European Oil Royalty Trust (NRT) - Canvas Business Model: Cost Structure

You're looking at the cost structure for North European Oil Royalty Trust (NRT), and honestly, it's one of the cleanest you'll find because the Trust doesn't operate the assets. Its entire cost base is administrative overhead, not production costs. For the trailing twelve months (TTM) ending April 30, 2025, the total Operating Expenses, which cover all SG&A, amounted to just $0.79 million.

Administrative expenses, including Trustee and Managing Director fees, form the bulk of this overhead. The structure relies on a corporate trustee, American Stock Transfer & Trust Company, to oversee revenue collection and expense payment. The Managing Director, John R. Van Kirk, had a total compensation of $148,753 as of October 30, 2024. The compensation for the Independent Trustees for that same period shows specific figures:

• Lawrence Kobrin, Independent Trustee: $30.36k
• Nancy J. Prue, Independent Managing Trustee: $50.36k
• Ahron Haspel, Independent Trustee: $30.36k

Professional fees for legal, accounting, and SEC compliance are bundled into the overall operating expenses. We know from prior periods that these expenses can include listing fees on the New York Stock Exchange. Since NRT is a statutory trust, it has no employees and incurs no capital expenditures, keeping its fixed operating costs extremely low outside of these contractual and regulatory obligations.

Provisions for future anticipated expenses and taxes are not explicitly detailed in the latest distribution announcements, as distributions are based on actual royalty income received less incurred and anticipated expenses. The Trust's structure as a grantor trust for U.S. federal income tax purposes is designed for efficient cash flow pass-through, but the underlying German operations are subject to various taxes and potential future liabilities that the Trust must account for, even if not itemized in the quarterly press releases.

Here is a breakdown of the most recently reported cost components, keeping in mind that the $0.79 million figure is the TTM total for all operating expenses as of April 30, 2025:

The Trust's minimal and fixed operating costs are a direct result of its passive nature. It does not engage in exploration, drilling, or field operations. The structure is designed so that the royalty income is collected after the operating companies deduct their operating and administrative expenses from the gross production revenues.

You can see the impact of this lean structure when you look at the margins. For the TTM ending April 30, 2025, the Operating Margin was 87.18%, meaning only about 12.82% of revenue was consumed by these administrative costs. Finance: draft the full expense breakdown from the upcoming December 31, 2025, 10-K by January 15, 2026.

North European Oil Royalty Trust (NRT) - Canvas Business Model: Revenue Streams

You're looking at North European Oil Royalty Trust (NRT) and seeing a pure-play royalty structure, which means revenue is entirely derived from the production volumes and market prices of hydrocarbons in Germany, not from active operations. This makes the revenue stream highly dependent on external factors.

The primary financial metric for the trailing period is the Trailing Twelve-Month (TTM) revenue, which stood at $6.18 million ending April 30, 2025. This represented an 18.55% year-over-year increase. To give you a recent snapshot, the revenue for the second quarter of fiscal 2025, ending April 30, 2025, was reported as $2.49 million.

The revenue streams are fixed by the underlying agreements, which are the Mobil and OEG Royalty Agreements.

The sources of these royalty payments are:

• Overriding royalty payments from natural gas sales, which historically form the vast majority of the income; for example, this stream accounted for approximately 94% of 2024 royalties.
• Royalty payments from crude oil, condensate, and sulfur sales.
• The Mobil Agreement specifically includes a 2% royalty on gross receipts from sulfur, which is a by-product of sour gas.

It's crucial to remember that this revenue is subject to commodity prices and Euro/Dollar exchange rate volatility. The actual cash received is the result of scheduled payments adjusted by true-ups from the operators, which can lead to significant swings, as seen in the distribution history.

Here's a look at the key revenue-related financial figures as of late 2025:

The volatility in realized income is starkly visible when you compare the quarterly distributions, which are the ultimate payout from the revenue stream. For instance, the Q4 fiscal 2025 distribution of $0.31 per unit contrasts sharply with the Q4 fiscal 2024 distribution of only $0.02 per unit. This difference highlights how adjustments and commodity pricing directly impact the cash flow available for distribution from the gross royalty revenue.

Also, note the positive adjustments that bolstered recent revenue realization. For the second quarter of fiscal 2025, positive adjustments totaled $73,451 under the Mobil Agreement and $97,508 under the OEG Agreement, plus a $57,240 Mobil sulfur royalty payment. Finance: draft 13-week cash view by Friday.