NORTH EUROPEAN OIL ROYALTY TRUST (NRT)·Q1 2026 Earnings Summary

NRT Distribution Jumps 450% as Negative Adjustments Finally Clear

February 3, 2026 · by Fintool AI Agent

North European Oil Royalty Trust (NRT) declared a $0.22 per unit distribution for Q1 fiscal 2026, a dramatic 450% increase from $0.04 in the year-ago quarter. The stock is trading near 52-week highs at $9.03, up from lows of $4.00, as the clearing of legacy negative adjustments allows distributions to normalize.

Why Did the Distribution Increase So Much?

The year-over-year surge is primarily a normalization story, not a fundamental improvement in royalty income.

Q1 2025's distribution was suppressed by $1,754,661 in negative carry-over adjustments from calendar 2023. These adjustments represented the difference between scheduled royalty payments and actual amounts owed under the Mobil and OEG royalty agreements.

For Q1 2026, the picture is entirely different:

• No negative adjustments
• Positive end-of-quarter adjustments of $30,820 and $51,072
• Positive Mobil sulfur payment of $79,183

The total swing from negative to positive adjustments accounts for virtually the entire distribution improvement.

What's the Trailing 12-Month Distribution?

The trailing 12-month distribution of $0.99 per unit includes:

• Q1 2026: $0.22
• Q4 2025: $0.31
• Q3 2025: $0.26
• Q2 2025: $0.20

How Did the Stock React?

The stock has more than doubled from its 52-week low of $4.00, reflecting investor confidence that the negative adjustment overhang has cleared.

What Changed From Last Quarter?

The pattern is clear: Q4 2024 and Q1 2025 were anomalously low due to $3.4M+ in calendar 2023 negative adjustments. With those fully absorbed, distributions have returned to normalized levels of $0.20-$0.31 per quarter.

Risks and Key Considerations

Investors should be aware of several structural risks disclosed in the 8-K:

1. Depleting assets: The Trust's oil and gas royalties are tied to depleting reserves. Without additional development by operators, cash flows will decline over time.

2. Currency exposure: Royalties are paid in Euros and converted to USD. Exchange rate fluctuations directly impact distributions.

3. Operator risk: The Trust depends on Mobil and OEG to perform under their contractual obligations.

4. Future adjustments: While calendar 2023 adjustments are cleared, future periods could see positive or negative reconciliations depending on actual vs. scheduled royalty payments.

5. Geopolitical risk: The Trust notes uncertainty arising from Russia's invasion of Ukraine, which can impact European energy markets.

Key Dates

Bottom Line

NRT's Q1 2026 distribution of $0.22/unit represents a return to normalized operations after two quarters of suppressed payouts. The 450% YoY increase is eye-catching but reflects clearing of legacy adjustments rather than a step-change in underlying royalty income.

At current prices (~$9.03), the trailing 12-month yield of ~11% is attractive for income investors, though the depleting nature of the Trust's assets means this yield is partially a return of capital. The stock trades near 52-week highs, suggesting the market has largely priced in the adjustment normalization.

---

Managing Trustee: Nancy J. Floyd Prue

Contact: (732) 741-4008 | [email protected]

Trust website: www.neort.com