0000072633 2025-11-01 2026-04-30 0000072633 2026-04-30 0000072633 2025-10-31 0000072633 2026-02-01 2026-04-30 0000072633 2025-02-01 2025-04-30 0000072633 2024-11-01 2025-04-30 0000072633 2024-10-31 0000072633 2025-04-30 0000072633 srt:MaximumMember 2025-11-01 2026-01-31 0000072633 srt:MaximumMember 2024-11-01 2025-01-31 shares iso4217:USD iso4217:USD shares iso4217:EUR pure 10-Q true 2026-04-30 2026 false 1-8245 NORTH EUROPEAN OIL ROYALTY TRUST DE 22-2084119 PO Box 107 East Schodack NY 12063 732 741-4008 Units of Beneficial Interest NRT NYSE Yes Yes Non-accelerated Filer true false false 9190590 3910974 4785156 1 1 3910975 4785157 2021930 2849083 1 1 1889044 1936073 3910975 4785157 2383374 2471301 15118 19224 2398492 2490525 346682 227821 0 1698 346682 229519 2051810 2261006 0.22 0.25 0.22 0.2 4595660 2976998 33790 32960 4629450 3009958 629124 459833 3495 3651 632619 463484 3996831 2546474 0.43 0.28 0.44 0.24 1936073 1441531 3996831 2546474 5932904 3988005 4043860 2205742 1889044 1782263 4595660 2976998 33790 32960 4629450 3009958 632619 463484 4871013 551436 -5503632 -1014920 -874182 1995038 4785156 1625343 3910974 3620381 <div> <span>(1) </span><span style="text-decoration: underline;">Summary of significant accounting policies:</span> </div> <div>  </div> <div style="margin-left: 36pt;"> <span> </span><span style="text-decoration: underline;">Basis of accounting -</span> </div> <div>  </div> <div style="text-indent: 36pt;"> <span>The accompanying financial statements of North European Oil Royalty Trust (the “Trust”) are prepared in accordance with the rules and regulations of the Securities and Exchange Commission. Financial statement balances and financial results are presented on a modified cash basis of accounting, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States (“GAAP basis”). </span><span style="color: rgb(0, 0, 0);">In the opinion of management, all adjustments that are considered necessary for a fair presentation of these financial statements, including adjustments of a normal, recurring nature, have been included.</span> </div> <div style="margin-left: 27pt;">  </div> <div style="text-indent: 36pt;"> <span>On a modified cash basis, revenue is earned when cash is received and expenses are incurred when cash is paid. GAAP basis financial statements disclose revenue as earned and expenses as incurred, without regard to receipts or payments. The modified cash basis of accounting is utilized to permit the accrual for distributions to be paid to unit owners (those distributions approved by the Trustees for the Trust). The Trust’s distributable income represents royalty income received by the Trust during the period plus interest income less any expenses incurred by the Trust, all on a cash basis. In the opinion of the Trustees, the use of the modified cash basis of accounting provides a more meaningful presentation to unit owners of the results of operations of the Trust.</span> </div> <div>  </div> <div style="text-indent: 36pt;"> <span style="color: rgb(0, 0, 0);">The results of any interim period are not necessarily indicative of the results to be expected for the fiscal year. </span><span>These financial statements should be read in conjunction with the financial statements that were included in the Trust’s Annual Report on</span><span style="color: rgb(0, 0, 0);"> </span><span>Form 10-K for the year ended October 31, 2025 (the “2025 Form 10-K”). The Statements of Assets, Liabilities and Trust Corpus included herein contain information from the Trust’s 2025 Form 10-K.</span> </div> <div>  </div> <div style="margin-left: 36pt;"> <span style="text-decoration: underline;">Producing gas and oil royalty rights -</span> </div> <div>  </div> <div style="text-indent: 36pt;"> <span>The rights to certain gas and oil royalties in Germany were transferred to the Trust at their net book value by North European Oil Company (the “Company”) (see Note 2). The net book value of the royalty rights has been reduced to one dollar ($1) in view of the fact that the remaining net book value of royalty rights is</span><span style="font-style: italic;"> de minimis</span><span> relative to annual royalties received and distributed by the Trust and does not bear any meaningful relationship to the fair value of such rights or the actual amount of proved producing reserves.</span> </div><div style="margin-left: 36pt;"> <span style="text-decoration: underline;">Federal and state income taxes -</span> </div> <div>  </div> <div style="text-indent: 36pt;"> <span>The Trust, as a grantor trust, is exempt from federal income taxes under a private letter ruling issued by the Internal Revenue Service. The Trust has no state income tax obligations.</span> </div> <div>  </div> <div style="margin-left: 36pt;"> <span style="text-decoration: underline;">Cash and cash equivalents -</span> </div> <div>  </div> <div style="text-indent: 36pt;"> <span>Cash and cash equivalents are defined as amounts deposited in bank accounts and amounts invested in certificates of deposit and U.S. Treasury bills with original maturities generally of three months or less from the date of purchase. The investment options available to the Trust are limited in accordance with specific provisions of the Trust Agreement. </span><span style="color: rgb(0, 0, 0);">In addition, the Trust held Euros 34,735, the equivalent of $40,425, in its German bank account as of April 30, 2026.</span> </div> <div>  </div> <div style="margin-left: 36pt;"> <span style="text-decoration: underline;">Net income per unit -</span> </div> <div>  </div> <div style="text-indent: 36pt;"> <span>Net income per unit is based upon the number of units outstanding at the end of the period. As of both April 30, 2026 and 2025, there were 9,190,590 units of beneficial interest outstanding.</span> </div> <div>  </div> <div style="margin-left: 36pt;"> <span style="text-decoration: underline;">New accounting pronouncements -</span></div> <div style="margin-left: 36pt;"> </div> <div style="text-indent: 45px; padding-left: 0px;"> Recent accounting pronouncements pending adoption are either not applicable or are not expected to have a material impact on the Trust’s financial condition or results of operation.</div> <div style="margin-left: 36pt;"> <span> </span><span style="text-decoration: underline;">Basis of accounting -</span> </div><div style="text-indent: 36pt;"> <span>The accompanying financial statements of North European Oil Royalty Trust (the “Trust”) are prepared in accordance with the rules and regulations of the Securities and Exchange Commission. Financial statement balances and financial results are presented on a modified cash basis of accounting, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States (“GAAP basis”). </span><span style="color: rgb(0, 0, 0);">In the opinion of management, all adjustments that are considered necessary for a fair presentation of these financial statements, including adjustments of a normal, recurring nature, have been included.</span> </div><div style="text-indent: 36pt;"> <span>On a modified cash basis, revenue is earned when cash is received and expenses are incurred when cash is paid. GAAP basis financial statements disclose revenue as earned and expenses as incurred, without regard to receipts or payments. The modified cash basis of accounting is utilized to permit the accrual for distributions to be paid to unit owners (those distributions approved by the Trustees for the Trust). The Trust’s distributable income represents royalty income received by the Trust during the period plus interest income less any expenses incurred by the Trust, all on a cash basis. In the opinion of the Trustees, the use of the modified cash basis of accounting provides a more meaningful presentation to unit owners of the results of operations of the Trust.</span> </div><div style="text-indent: 36pt;"> <span style="color: rgb(0, 0, 0);">The results of any interim period are not necessarily indicative of the results to be expected for the fiscal year. </span><span>These financial statements should be read in conjunction with the financial statements that were included in the Trust’s Annual Report on</span><span style="color: rgb(0, 0, 0);"> </span><span>Form 10-K for the year ended October 31, 2025 (the “2025 Form 10-K”). The Statements of Assets, Liabilities and Trust Corpus included herein contain information from the Trust’s 2025 Form 10-K.</span> </div> <div style="margin-left: 36pt;"> <span style="text-decoration: underline;">Producing gas and oil royalty rights -</span> </div><div style="text-indent: 36pt;"> <span>The rights to certain gas and oil royalties in Germany were transferred to the Trust at their net book value by North European Oil Company (the “Company”) (see Note 2). The net book value of the royalty rights has been reduced to one dollar ($1) in view of the fact that the remaining net book value of royalty rights is</span><span style="font-style: italic;"> de minimis</span><span> relative to annual royalties received and distributed by the Trust and does not bear any meaningful relationship to the fair value of such rights or the actual amount of proved producing reserves.</span> </div> 1 <div style="margin-left: 36pt;"> <span style="text-decoration: underline;">Federal and state income taxes -</span> </div><div style="text-indent: 36pt;"> <span>The Trust, as a grantor trust, is exempt from federal income taxes under a private letter ruling issued by the Internal Revenue Service. The Trust has no state income tax obligations.</span> </div> <div style="margin-left: 36pt;"> <span style="text-decoration: underline;">Cash and cash equivalents -</span> </div><div style="text-indent: 36pt;"> <span>Cash and cash equivalents are defined as amounts deposited in bank accounts and amounts invested in certificates of deposit and U.S. Treasury bills with original maturities generally of three months or less from the date of purchase. The investment options available to the Trust are limited in accordance with specific provisions of the Trust Agreement. </span><span style="color: rgb(0, 0, 0);">In addition, the Trust held Euros 34,735, the equivalent of $40,425, in its German bank account as of April 30, 2026.</span> </div> 34735 40425 <div style="margin-left: 36pt;"> <span style="text-decoration: underline;">Net income per unit -</span> </div><div style="text-indent: 36pt;"> <span>Net income per unit is based upon the number of units outstanding at the end of the period. As of both April 30, 2026 and 2025, there were 9,190,590 units of beneficial interest outstanding.</span> </div> 9190590 9190590 <div style="margin-left: 36pt;"> <span style="text-decoration: underline;">New accounting pronouncements -</span></div><div style="text-indent: 45px; padding-left: 0px;"> Recent accounting pronouncements pending adoption are either not applicable or are not expected to have a material impact on the Trust’s financial condition or results of operation.</div> <div> <span>(2) </span><span style="text-decoration: underline;">Formation of the Trust:</span> </div> <div style="margin-left: 27pt;">  </div> <div style="text-indent: 36pt;"> <span>The Trust was formed on September 10, 1975. As of September 30, 1975, the Company was liquidated and the remaining assets and liabilities of the Company, including its royalty rights, were transferred to the Trust. The Trust, on behalf of the owners of beneficial interest in the Trust, holds overriding royalty rights covering gas and oil production in certain concessions or leases in the Federal Republic of Germany. These rights are held under contracts with local German exploration and development subsidiaries of ExxonMobil Corporation and the Royal Dutch/Shell Group of Companies. Under these contracts, the Trust receives various percentage royalties on the proceeds of the sales of certain products from the areas involved. At the present time, royalties are received for sales of gas well gas, oil well gas, crude oil, condensate, and sulfur.</span> </div> <div> <span>(3) </span><span style="text-decoration: underline;">Related party transactions:</span> </div> <div>  </div> <div style="text-indent: 36pt;"> <span>John R. Van Kirk, the former Managing Director of the Trust, was reimbursed by the Trust for office expenses at cost. Mr. Van Kirk retired from his position of Managing Director of the Trust as of January 30, 2026. For such office expenses, the Trust reimbursed the former Managing Director $0 and $1,698 in the second quarter of fiscal 2026 and 2025, respectively. For such office expenses, the Trust reimbursed the Managing Director $3,495 and $3,651 in the first six months of fiscal 2026 and 2025, respectively.</span> </div> 0 1698 3495 3651 <div> <span>(4) </span><span style="text-decoration: underline;">Employee benefit plan:</span> </div> <div>  </div> <div style="text-indent: 36pt; text-align: justify;"> <span>The Trust established a savings incentive match plan for employees (SIMPLE IRA) that was available to employees of the Trust. As of February 28, 2026, the Trust no longer has employees eligible for the SIMPLE IRA. The Trustees had authorized the Trust to make contributions to the accounts of the employees, on a matching basis, of up to 3% of cash compensation paid to each employee for the First Quarter of 2026 and the 2025 calendar year.</span> </div> 0.03 0.03 false false false false 0000072633 false Q2 --10-31