RESERVE PETROLEUM CO
For the period ended Mar 31, 2025. Filed May 15, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 15, 2025
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What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-14.
0000083350-24-000030
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-15.
0000083350-25-000012
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 50 previous paragraphs and 39 current paragraphs.
7 unchanged; 21 reworded; 11 added; 19 removed; 3 previous and 0 current paragraphs rearranged.
Tables are not compared: 0 previous and 0 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
The risks and uncertainties that may affect the operations, performance, development and results of our business include, but are not limited to, the following:
Current report
• Our future operating results will depend upon management’s ability to employ and retain quality employees, generate revenues and control expenses. Any decline in operating revenues, without a corresponding reduction in operating expenses, could have a material adverse effect on our business, results of operations and financial condition.
Current report
• We have no significant long-term sales contracts for either oil or gas. For the most part, the price we receive for our product is based upon the spot market price, which in the past has experienced significant fluctuations. Management anticipates price fluctuations will continue in the future, making any attempt at estimating future prices subject to significant uncertainty.
Current report
• Exploration costs have been a significant component of our capital expenditures in the past and are expected to remain so in the near term. Under the successful efforts method of accounting for oil and gas properties which we use, these costs are capitalized if drilling is successful or charged to operating costs and expensed if unsuccessful. Estimating the amount of future costs which may relate to successful or unsuccessful drilling is extremely imprecise.
Current report
Equity securities decreased $337,424 (13%) to $2,163,770 as of March 31, 2025, from $2,501,194 at December 31, 2024. The decrease was the result of $312,270 in net sales and a $25,154 net decrease in market value.
Current report
Accounts receivable increased $801,828 (29%) to $3,576,315 as of March 31, 2025, from $2,774,487 at December 31, 2024. Trade accounts receivable, primarily resulting from the sale of unproved, non-producing properties, were $1,389,584 as of March 31, 2025, compared to $607,039 at December 31, 2024, offset by a net decrease in oil and gas receivables of $527,205, primarily due to substantial oil and gas receivables expected from new wells at December 31, 2024.
Current report
Accounts payable decreased $298,215 (57%) to $221,967 as of March 31, 2025, from $520,182 at December 31, 2024, primarily due to decreases of leasehold and intangible drilling costs for new wells.
Current report
Operating Costs and Expenses. Operating costs and expenses decreased $447,573 (17%) to $2,239,671 in the three months ended March 31, 2025, from $2,687,244 in the comparable period of 2024. See below for analysis of changes.
Current report
Production Costs. Production costs increased $82,210 (9%) to $1,048,361 in the three months ended March 31, 2025, from $966,151 in the comparable period in 2024. Lease operating expenses decreased $7,765 (1%). Gas deductions and other costs increased $48,760 (54%). Gross production taxes increased $41,215 (25%).
Current report
Water Well Drilling Costs. Water well drilling costs decreased $378,589 (100%) to $0 in the three months ended March 31, 2025, from $378,589 in the comparable period in 2024. On April 19, 2024, we terminated the TWS Agreement with TWS South, LLC due to a breach of the agreement. Due to the termination, there will be no future expenses from water well drilling operations. See Note 6 for details on the termination.
Current report
Gain on Disposition of Oil and Gas Properties. We had a gain on the sale of unproved, non-producing leasehold of $492,282 in the three months ended March 31, 2025, with none in the the comparable period in 2024.
Removed paragraphs (19)
Previous report
Equity securities increased $1,524,009 (57%) to $4,188,075 as of September 30, 2024, from $2,664,066 at December 31, 2023. The increase resulted from $148,797 in net purchases, reclassification of $148,042 in cost basis for Chilean Cobalt Corp. ("C3") from Other Investments resulting from an Initial Public Offering on April 29, 2024, and net increases in market value $1,227,170, including a $962,275 unrealized gain on C3.
Previous report
Accounts receivable decreased $24,576 (1%) to $2,342,087 as of September 30, 2024, from $2,366,663 at December 31, 2023, resulting from decreases in trade and other accounts receivable of $57,165, primarily related to the decrease in TWS water well drilling receivables, and an increase of in oil and gas receivables of $32,589, primarily due to increased volumes on expected production accrued.
Previous report
Accounts payable decreased $490,710 (91%) to $47,086 as of September 30, 2024, from $537,796 at December 31, 2023, primarily due to timing differences in the processing of accounts payable.
Previous report
Results of Operations – Nine Months Ended September 30, 2024
Previous report
The $1,717,060 (24%) increase in oil sales to $8,740,819 in the nine months ended September 30, 2024, from $7,023,759 in the comparable period in 2023 was the result of an increase in the volume sold and an increase in the average price per barrel (Bbl). The volume of oil sold increased 13,048 Bbls to 107,948 Bbls in the nine months ended September 30, 2024, resulting in a positive volume variance of $965,682. The average price per Bbl increased $6.96 to $80.97 per Bbl in the nine months ended September 30, 2024, from $74.01 per Bbl in the comparable period in 2023, resulting in a positive price variance of $751,378.
Previous report
The $286,048 (20%) increase in natural gas sales to $1,717,843 in the nine months ended September 30, 2024, from $1,431,795 in the comparable period in 2023 was the result of an increase in the volume sold, partially offset by a decrease in the average price per thousand cubic feet ("MCF"). The volume of natural gas sold increased 161,618 MCF to 684,177 MCF in the nine months ended September 30, 2024, from 522,559 MCF in the comparable period in 2023, resulting in a positive volume variance of $442,833. The average price per MCF decreased $0.23 to $2.51 per MCF in the nine months ended September 30, 2024, from $2.74 per MCF in the comparable period in 2023, resulting in a negative price variance of $156,785.
Previous report
The Company had water well drilling revenues of $660,978 in the nine months ended September 30, 2024, related to water well drilling through TWS, with $385,006 in the comparable period in 2023. The increase was due to the completion of a large commercial well project and several commercial and residential water wells completed in 2024. Water well drilling revenues ceased on the joint venture agreement termination date of April 19, 2024. See Note 5 for additional information on TWS.
Previous report
Operating Costs and Expenses. Operating costs and expenses decreased $184,352 (2%) to $8,037,067 in the nine months ended September 30, 2024, from $8,221,419 in the comparable period of 2023. The decrease was the net result of a decrease in production costs of $77,061; a decrease in exploration costs charged to expense of $308,910; a decrease in water well drilling costs of $277,486; an increase in DD&A of $25,844; and an increase in G&A of $453,261.
Previous report
Production Costs. Production costs decreased $77,061 (2%) to $3,083,457 in the nine months ended September 30, 2024, from $3,160,518 in the comparable period in 2023. Lease operating expenses decreased $328,946 (14%), hauling, compression, and other costs increased by $216,766 (70%), and gross production taxes increased $35,119 (7%) due to increased revenues from oil and natural gas sales, offset by a previous period adjustment to GPT of $106,635.
Previous report
Water Well Drilling Costs. Water well drilling costs decreased $277,486 (40%) to $410,741 in the nine months ended September 30, 2024, from $688,227 in the comparable period in 2023. These costs consist of contract labor, equipment rental and maintenance, fuel costs, and other operating supplies related to the drilling of water wells through TWS. Water well drilling costs ceased on the joint venture agreement termination date of April 19, 2024. See Note 5 for additional information on TWS.
Previous report
General, Administrative and Other (G&A). G&A increased $453,261 (24%) to $2,347,154 in the three months ended September 30, 2024, from $1,893,893 in the comparable period in 2023. This was primarily the result of bad debt expense of $465,977 recorded for TWS South, LLC accounts receivable. See Note 5 to the accompanying consolidated financial statements for an analysis of the circumstances of this line item.
Previous report
Other Income, Net. Other income, net was $839,718 in the nine months ended September 30, 2024, as compared $850,021 in the comparable period in 2023. See Note 3 to the accompanying consolidated financial statements for an analysis of the components of this line item.
Previous report
Net income attributable to common stockholders increased $1,136,133 (182%) to $1,761,037 in the three months ended September 30, 2024, from $624,904 in the comparable period in 2023. The significant changes in the consolidated statements of income are discussed below. Net income per share attributable to common stockholders, basic increased $7.38 to $11.39 in the three months ended September 30, 2024, from $4.01 in the comparable period in 2023.
Previous report
Operating Costs and Expenses. Operating costs and expenses decreased $43,476 (2%) to $2,592,376 in the three months ended September 30, 2024, from $2,635,852 in the comparable period in 2023. The decrease was the net result of a decrease in production costs of $52,484; a decrease in exploration costs charged to expense of $63,416; a decrease in water well drilling costs of $373,094; a decrease in DD&A of $13,978; and an increase in G&A of $459,496.
Previous report
Production Costs. Production costs decreased $52,484 (5%) to $1,041,694 in the three months ended September 30, 2024, from $1,094,178 in the comparable period in 2023. Lease operating expenses decreased $120,866 (16%), hauling, compression, and other costs increased by $143,651 (122%), and gross production taxes decreased $75,269 (37%) due to an increase in GPT of $31,366 from increased oil and gas sales, offset by a previous period adjustment to GPT of $106,635.
Previous report
Exploration Costs. Exploration costs decreased $63,416 (60%) to $42,735 in the three months ended September 30, 2024, from $106,151 in the comparable period in 2023, due to decreased dry hole and plugging costs of $64,856, offset by an increase of $1,440 in leasehold impairments.
Previous report
Water Well Drilling Costs. Water well drilling costs decreased $373,094 (100%) to $563 in the three months ended September 30, 2024, from $373,657 in the comparable period in 2023. These costs consist of contract labor, equipment rental and maintenance, fuel costs, and other operating supplies related to the drilling of water wells through TWS. Water well drilling costs ceased on the joint venture agreement termination date of April 19, 2024. See Note 5 for additional information on TWS.
Previous report
General, Administrative and Other (G&A). G&A increased $459,496 (79%) to $1,037,631 in the three months ended September 30, 2024, from $578,135 in the comparable period in 2023. This was primarily the result of bad debt expense of $465,977 recorded for TWS South, LLC accounts receivable. See Note 5 to the accompanying consolidated financial statements for an analysis of the circumstances of this line item.
Previous report
Income Tax Provision/(Benefit). Income tax provision increased $104,020 (71%) to $250,495 in the three months ended September 30, 2024, from a provision of $146,475 in the comparable period in 2023. Of the 2024 tax provision, estimated current tax benefit was $69,438 and estimated deferred tax provision was $319,933. Of the 2023 income tax provision, the estimated current tax provision was $51,655 and the estimated deferred tax provision was $94,820. See discussions above in “Results of Operations” section and Note 7 to the accompanying consolidated financial statements for additional explanation of the changes in the provision for income taxes.
Reworded paragraphs (21)
Previous wording
This discussion and analysis includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give the Company’s current expectations of future events. They include statements regarding the drilling of oil and natural gas wells, the production that may be obtained from oil and natural gas wells, cash flow and anticipated liquidity and expected future expenses.
Current wording
This discussion and analysis includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give our current expectations of future events. They include statements regarding the drilling of oil and natural gas wells, the production that may be obtained from oil and natural gas wells, cash flow and anticipated liquidity and expected future expenses.
Previous wording
Although management believes the expectations in these and other forward-looking statements are reasonable, we can give no assurance they will prove to have been correct. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Factors that would cause actual results to differ materially from expected results are described under “Forward-Looking Statements” on page 3 of the 2023 Form 10-K.
Current wording
Although management believes the expectations in these and other forward-looking statements are reasonable, we can give no assurance they will prove to have been correct. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties.
Previous wording
We caution you not to place undue reliance on these forward-looking statements, which speak only as of the date of this Form 10-Q, and we undertake no obligation to update this information because of new information, future developments, or except as required by law. You are urged to carefully review and consider the disclosures made in this and our other reports filed with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect our business.
Current wording
We caution you not to place undue reliance on these forward-looking statements, which speak only as of the date of this Form 10-Q, and we undertake no obligation to update this information because of new information, future developments, or otherwise. You are urged to carefully review and consider the disclosures made in this and our other reports filed with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect our business.
Previous wording
Please refer to the consolidated balance sheets and the consolidated statements of cash flows in this Form 10-Q to supplement the following discussion. In the first nine months of 2024, the Company continued to fund its business activity using internal sources of cash. The Company had net cash provided by operating activities of $5,521,459 in the nine months ended September 30, 2024. The Company had sales of equity securities of $2,649,885, cash provided by property dispositions of $243,081, distributions from other investments of $4,000, and maturity of available-for-sale debt securities of $2,534,727 for total cash provided by investing activities of $5,431,693. The Company utilized cash for the purchase of property of $7,160,505, the purchase of equity securities of $2,798,682, purchase of investments of $385,165, and purchase of available-for-sale debt securities of $313,826 for cash applied to investing activities of $10,658,178. The Company paid $1,546,874 in stockholder dividends, $172,900 for the purchase of treasury stock, and $105,994 in payments on the Grand Woods note payable, for total cash applied to financing activities of $1,825,768. Cash provided by financing activities included Grand Woods Class C non-controlling interest contributions of $42,312. Cash and cash equivalents decreased $1,488,482 (29%) to $3,729,992 at September 30, 2024, from $5,218,474 at December 31, 2023.
Current wording
Please refer to the consolidated balance sheets and the consolidated statements of cash flows in this Form 10-Q to supplement the following discussion. In the first three months of 2025, we continued to fund our business activity using internal sources of cash. We had net cash provided by operating activities of $1,906,890 in the three months ended March 31, 2025. Our cash provided by investing activities for the three months ended March 31, 2025 was $2,383,681 and consisted of proceeds from disposal of property, plant and equipment of $1,580,166 and sales of equity securities of $803,515. Our cash applied to investing activities for the three months ended March 31, 2025 was $2,934,668 and consisted of cash for the purchase of property, plant and equipment of $2,337,148, cash for the purchase of equity securities of $491,245, and cash for the purchase of equity method and other investments of $106,275. Ourcash applied to financing activities forthe three months ended March 31, 2025 was $61,699 and consisted of cash paid of $25,440 for the purchase of treasury stock, and $36,259 in payments on the Grand Woods note payable. Cash provided by financing activities included Grand Woods Class C non-controlling interest contributions of $16,084. Cash and cash equivalents increased $1,310,288 (33%) to $5,234,110 at March 31, 2025, from $3,923,822 at December 31, 2024.
Previous wording
Other current liabilities increased $50,212 (391%) to $63,051 as of September 30, 2024, from $12,839 at December 31, 2023, due to an increase of $31,762 in payroll taxes resulting from the timing of payroll tax remittance, and an increase in state income and accrued property taxes of $18,450.
Current wording
Other current liabilities increased $12,347 (27%) to $57,527 as of March 31, 2025, from $45,180 at December 31, 2024, due to increases in accrued property taxes of $19,229 and state income taxes of $11,643, partially offset by decreases in payroll taxes of $16,719 and benefits payable of $1,806.
Previous wording
Discussion of Significant Changes in the Consolidated Statements of Cash Flows. As noted in the first paragraph above, net cash provided by operating activities was $5,521,459 in the nine months ended September 30, 2024, an increase of $2,382,744 (76%) from cash provided by operations in the comparable period in 2023 of $3,138,715. For more information see “Operating Revenues” and “Other Income, Net” below.
Current wording
Discussion of Significant Changes in the Consolidated Statements of Cash Flows. Net cash provided by operating activities was $1,906,890 in the three months ended March 31, 2025, an increase of $302,692 (19%) from cash provided by operations in the comparable period in 2024 of $1,604,198. For more information see “Operating Revenues” and “Other Income” below.
Previous wording
Cash applied to the purchase of property, plant and equipment in the nine months ended September 30, 2024, was $7,160,505, an increase of $3,450,874 (93%) from cash applied to the purchase of property, plant and equipment in the comparable period in 2023 of $3,709,631.
Current wording
Cash applied to the purchase of oil and gas properties in the three months ended March 31, 2025, was $2,337,148, a decrease of $543,614 (19%) from cash applied to the purchase of property, plant and equipment in the comparable period in 2024 of $2,880,762. Unproved oil and gas properties account for approximately 60% of purchases, with proved oil and gas properties making up approximately 40%. Cash provided by the disposal of oil and gas properties was $1,580,166, resulting from the sale of unproved, non-producing leasehold in western Oklahoma.
Previous wording
Cash applied to the purchase of available-for-sale debt securities in the nine months ended September 30, 2024, was $313,826, a decrease of $5,816,892 (95%) from $6,130,718 in the comparable period in 2023. Cash provided by the maturity of available-for-sale debt securities in the nine months ended September 30, 2024, was $2,534,727, a decrease of $3,519,928 (58%) from $6,054,655 in the comparable period in 2023. Cash applied to investments in the nine months ended September 30, 2024, was $385,165, a decrease of $246,941 (39%) from cash applied in the comparable period of 2023 of $632,106.
Current wording
Cash applied to the purchase of available-for-sale debt securities in the three months ended March 31, 2025, was $0, with $313,826 in the comparable period in 2024. Cash provided by the maturity of available-for-sale debt securities in the three months ended March 31, 2025, was $0, with $2,534,727 in the comparable period in 2024. We are not currently utilizing available-for-sale debt securities as cash is being deployed in oil and gas operations property. Excess cash not invested in long-term vehicles is invested in liquid securities. Cash applied to equity method and other investments in the three months ended March 31, 2025, was $106,275, a decrease of $123,775 (54%) to $230,050 in the comparable period of 2024. Current year activity was primarily for the call of capital committed in the investment of Cortado Ventures Fund II-A LP. Net sales of equity securities of was $312,270 in the three months ended March 31, 2025, with $33,684 in the comparable period in 2024. We have reduced our equity security portfolio to utilize funds for oil and gas operations and property purchases.
Previous wording
Off-Balance Sheet Arrangements. The Company is a guarantor of 20% of a $860,000 development loan that matures July 15, 2025, and 20% of a construction loan of $585,000 that matures January 25, 2025 held by QSN Office Park, LLC. The Company is committed to a $250,000 investment in VCC Venture Fund I, LP, of which $125,000 (50%) is invested at September 30, 2024. The Company is committed to a $1,000,000 investment in Cortado Ventures Fund II-A, of which $600,000 (60%) is invested at September 30, 2024. The Company is committed to a$750,000 investment in Cypress MWC, LLC, of which $225,000 (30%) is invested at September 30, 2024. The Company also has a commitment to purchase$175,924 of a private business development fund classified under section 3(c)(7) of the Investment Company Act of 1940 where the Company has elected to use the NAV as a practical expedient to determine the fair value. For more information about these entities and the related off-balance sheet arrangements, see Note 4, Note 5 and Note 9 to the accompanying consolidated financial statements.
Current wording
Off-Balance Sheet Arrangements. We are a guarantor of 20% of a $860,000 development loan that matures July 15, 2025, and 20% of a construction loan of $585,000 that matures May 25, 2025 held by QSN Office Park, LLC. We are committed to a $250,000 investment in VCC Venture Fund I, LP, of which $156,250 (62.50%) is invested at March 31, 2025. We are committed to a $1,000,000 investment in Cortado Ventures Fund II-A, of which $700,000 (70.00%) is invested at March 31, 2025. We are committed to a$750,000 investment in Cypress MWC, LLC, of which $375,000 (50.00%) is invested at March 31, 2025. For more information about these entities and the related off-balance sheet arrangements, see Note 5 to the accompanying consolidated financial statements.
Previous wording
Conclusion. Management is unaware of any additional material trends, demands, commitments, events or uncertainties, which would impact liquidity and capital resources to the extent that the discussion presented in the 2023 Form 10-K would not be representative of the Company’s current position.
Current wording
Conclusion. Management is unaware of any additional material trends, demands, commitments, events or uncertainties, which would impact liquidity and capital resources to the extent that the discussion presented in the 2024 Form 10-K would not be representative of our current position.
Previous wording
Net income attributable to common stockholders increased $2,030,203 (133%) to $3,554,929 in the nine months ended September 30, 2024, from $1,524,726 in the comparable period in 2023. Net income per share attributable to common stockholders, basic, increased $13.19 to $22.96 in the nine months ended September 30, 2024, from $9.77 in the comparable period in 2023. A discussion of revenue from oil and natural gas sales and other significant line items in the consolidated statements of income follows.
Current wording
Net income increased $1,041,569 (143%) to $1,768,085 in the three months ended March 31, 2025, from $726,516 in the comparable period in 2024. Net income per share attributable to common stockholders, basic, increased $6.96 to $11.71 in the three months ended March 31, 2025, from $4.75 in the comparable period in 2024. A discussion of revenue from oil and natural gas sales and other significant line items in the consolidated statements of income follows.
Previous wording
Operating Revenues. Revenues from oil and natural gas sales increased $2,071,681 (24%) to $10,723,062 in the nine months ended September 30, 2024, from $8,651,381 in the comparable period in 2023. The increase is due to an increase in oil sales of $1,717,060, an increase in natural gas sales of $286,048, and an increase in miscellaneous oil and natural gas product sales of $68,573.
Current wording
Operating Revenues. Revenues from oil and natural gas sales increased $839,823 (28%) to $3,851,465 in the three months ended March 31, 2025, from $3,011,642 in the comparable period in 2024. The increase is due to an increase in oil sales of $192,537, an increase in natural gas sales of $609,370, and an increase in miscellaneous oil and natural gas product sales of $37,916. Revenues from water well drilling services decreased $615,480 (100%) to $0 from $615,480 in the comparable period in 2024. On April 19, 2024, we terminated the TWS Agreement with TWS South, LLC due to a breach of the agreement. Due to the termination, there will be no future revenues from water well drilling operations. See Note 6 for details on the termination.
Previous wording
The $669,676 (27%) increase in oil sales to $3,153,936 in the three months ended September 30, 2024, from $2,484,260 in the comparable period in 2023 was the result of an increase in the volume sold and an increase in the average price per barrel (Bbl). The volume of oil sold increased 3,875 Bbls to 35,274 Bbls in the three months ended September 30, 2024, resulting in a positive volume variance of $306,590. The average price per Bbl increased $10.29 to $89.41 per Bbl in the three months ended September 30, 2024, from $79.12 per Bbl in the comparable period in 2023, resulting in a positive price variance of $363,086.
Current wording
The $192,537 (8%) increase in oil sales to $2,642,701 in the three months ended March 31, 2025, from $2,450,164 in the comparable period in 2024 was the result of an increase in the volume sold and a decrease in the average price per barrel (Bbl). The volume of oil sold increased 6,614 Bbls to 39,904 Bbls in the three months ended March 31, 2025, from 33,290 Bbls in the comparable period in 2024, resulting in a positive volume variance of $486,790. The average price per Bbl decreased $7.37 to $66.23 per Bbl in the three months ended March 31, 2025, from $73.60 per Bbl in the comparable period in 2024, resulting in a negative price variance of $294,253.
Previous wording
The $112,821 (25%) increase in natural gas sales to $572,784 in the three months ended September 30, 2024, from $459,963 in the comparable period in 2023 was the result of an increase in the volume sold and a decrease in the average price per MCF. The volume of natural gas sold increased 77,602 MCF to 249,993 MCF in the three months ended September 30, 2024, from 172,391 MCF in the comparable period in 2023, resulting in a positive volume variance of $207,197. The average price per MCF decreased $0.38 to $2.29 per MCF in the three months ended September 30, 2024, from $2.67 per MCF in the comparable period in 2023, resulting in a negative price variance of $94,376.
Current wording
The $609,370 (118%) increase in natural gas sales to $1,123,715 in the three months ended March 31, 2025, from $514,345 in the comparable period in 2024 was the result of an increase in the volume sold and an increase in the average price per thousand cubic feet ("MCF"). The volume of natural gas sold increased 57,008 MCF to 263,936 MCF in the three months ended March 31, 2025, from 206,928 MCF in the comparable period in 2024, resulting in a positive volume variance of $141,950. The average price per MCF increased $1.77 to $4.26 per MCF in the three months ended March 31, 2025, from $2.49 per MCF in the comparable period in 2024, resulting in a positive price variance of $467,420.
Previous wording
For both oil and natural gas sales, the price change was mostly the result of a change in the spot market prices upon which most of the Company’s oil and natural gas sales are based. These spot market prices have had significant fluctuations in the past and these fluctuations are expected to continue.
Current wording
For both oil and natural gas sales, the price change was mostly the result of a change in the spot market prices upon which most of our oil and natural gas sales are based. These spot market prices have had significant fluctuations in the past and these fluctuations are expected to continue.
Previous wording
Sales of miscellaneous oil and natural gas products were $264,400 in the nine months ended September 30, 2024, compared to $195,827 in the comparable period in 2023.
Current wording
Sales of miscellaneous oil and natural gas products were $85,049 in the three months ended March 31, 2025, compared to $47,133 in the comparable period in 2024, primarily due to increased gas production.
Previous wording
Exploration Costs. Exploration costs decreased $308,910 (45%) to $370,810 in the nine months ended September 30, 2024, from $679,720 in the comparable period in 2023, due to a decrease of $92,963 in geological and geophysical and other expenses, and $222,212 in dry hole and plugging costs, partially offset by an increase of $6,265 in leasehold impairments.
Current wording
Exploration Costs. Exploration costs decreased $54,920 (34%) to $104,279 in the three months ended March 31, 2025, from $159,199 in the comparable period in 2024, primarily due todecreases of $125,794 in dry hole and plugging costs, offset byincreases of $11,878 in geological and geophysical and other expenses and $58,996 in cancelled and expired leases.
Previous wording
Depreciation, Depletion, Amortization and Valuation Provision (DD&A). DD&A increased $25,844 (1%) to $1,824,905 in the nine months ended September 30, 2024, from $1,799,061 in the comparable period in 2023, due to a decrease in long-lived assets impairments of $443,456 offset by a $469,251 net increase in depletion, depreciation, and amortization due to an increase in completions and production.
Current wording
Depreciation, Depletion, Amortization and Valuation Provision (DD&A). DD&A increased $398,709 (78%) to $907,878 in the three months ended March 31, 2025, from $509,169 in the comparable period in 2024, primarily due to an increase in production and reserves on new wells.
Previous wording
Equity Income in Investees. Equity income in investees decreased $16,723 (21%) to $64,691 in the nine months ended September 30, 2024, from $81,414 in the comparable period in 2023. Income in the nine months ended September 30, 2024, was made up of income of $8,661 in Broadway Sixty-Eight, LLC (“Broadway 68”), income of $48,569 in Broadway Seventy-Two, LLC (“Broadway 72”), income of $47,104 from Victorum BRH Investment, LLC, loss of $17,492 in QSN
Current wording
Equity Income in Investees. Equity income in investees increased $15,639 (66%) to $39,180 in the three months ended March 31, 2025, from $23,541 in the comparable period in 2024. Income was made up of income of $19,199 in Broadway Sixty-Eight, LLC (“Broadway 68”), income of $16,202 in Broadway Seventy-Two, LLC (“Broadway 72”), losses of $4,285 in QSN Office Park, LLC (“QSN”), income of $8,139 from Victorum BRH Investment LLC, and losses of $75 in Stott's Mill. See Note 5 to the accompanying financial statements for additional information on equity method investments.
Previous wording
Other Income, Net. Other income, net increased $340,899 in the three months ended September 30, 2024, to $433,378 from $92,479 in the comparable period in 2023. See Note 3 to the accompanying consolidated financial statements for an analysis of the components of this item.
Current wording
Other Income, Net. Other income, net increased $4,537 (2%) to $224,146 in the three months ended March 31, 2025, from $219,609 in the comparable period in 2024. See Note 4 to the accompanying consolidated financial statements for an analysis of the components of this line item.
Previous wording
Income Tax Provision. Income tax provision increased $591,506 (156%) to $969,746 in the nine months ended September 30, 2024, from $378,240 in the comparable period in 2023. Of the 2024 tax provision, estimated current tax benefit was $68,639 and estimated deferred tax provision was $1,038,385. Of the 2023 income tax provision, the estimated current tax provision was $1,981 and the estimated deferred tax provision was $376,259. See Note 7 to the accompanying consolidated financial statements for additional information on income taxes.
Current wording
Income Tax Provision. Income tax provision increased $107,812 (25%) to $547,536 in the three months ended March 31, 2025, from $439,724 in the comparable period in 2024. Of the 2025 tax provision, the estimated current tax provision was $12,234 and the estimated deferred tax provision was $535,302. Of the 2024 income tax provision, the estimated current tax benefit was $307,271 and the estimated deferred tax provision was $746,995.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Office Park, LLC (“QSN”), and loss of $22,151 in Stott's Mill. See Note 4 to the accompanying financial statements for additional information on equity method investments.
Previous report — wording carried elsewhere
Operating Revenues. Revenues from oil and gas sales increased $866,311 (29%) to $3,874,796 in the three months ended September 30, 2024, from $3,008,485 in the comparable period in 2023. The increase is due to an increase in oil sales of $669,676, an increase in natural gas sales of $112,821, and an increase in miscellaneous oil and gas product sales of $83,814.
Previous report — wording carried elsewhere
Equity Income in Investees. Equity income in investees decreased $15,448 to income of $7,333 in the three months ended September 30, 2024, from $22,781 in the comparable period in 2023. See Note 4 to the accompanying financial statements for additional information on equity method investments.