RESERVE PETROLEUM CO
For the period ended Jun 30, 2025. Filed Aug 14, 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.
Jun 30, 2025 · Filed Aug 14, 2025
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What changed in Management’s Discussion and Analysis?
Read the current filingPrevious 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 OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-14.
0000083350-25-000019
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 39 previous paragraphs and 52 current paragraphs.
8 unchanged; 26 reworded; 11 added; 5 removed; 0 previous and 7 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
Accounts receivable decreased $736,620 (27%) to $2,037,867 as of June 30, 2025, from $2,774,487 at December 31, 2024, primarily related to a decrease in oil and gas receivables of $685,392 caused by a decrease in the price and volume of expected oil production..
Current report
Results of Operations – Six Months Ended June 30, 2025
Current report
The $497,276 (9%) decrease in oil sales to $5,089,607 in the six months ended June 30, 2025, from $5,586,883 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 10,724 Bbls to 83,398 Bbls in the six months ended June 30, 2025, resulting in a positive volume variance of $824,494. The average price per Bbl decreased $15.85 to $61.03 per Bbl in the six months ended June 30, 2025, from $76.88 per Bbl in the comparable period in 2024, resulting in a negative price variance of $1,321,770.
Current report
The $915,975 (80%) increase in natural gas sales to $2,061,034 in the six months ended June 30, 2025, from $1,145,059 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 156,679 MCF to 590,863 MCF in the six months ended June 30, 2025, from 434,184 MCF in the comparable period in 2024, resulting in a positive volume variance of $413,634. The average price per MCF increased $0.85 to $3.49 per MCF in the six months ended June 30, 2025, from $2.64 per MCF in the comparable period in 2024, resulting in a positive price variance of $502,341.
Current report
Production Costs. Production costs increased $52,117 (3%) to $2,093,880 in the six months ended June 30, 2025, from $2,041,763 in the comparable period in 2024. Lease operating expenses increased $50,631 (4%), gas deductions and other costs increased by $26,186 (10%) and gross production taxes decreased $24,698 (6%) due to increased revenues from oil and natural gas sales.
Current report
Exploration Costs. Exploration costs decreased $109,375 (33%) to $218,700 in the six months ended June 30, 2025, from $328,075 in the comparable period in 2024, due to increases in leasehold impairments of $58,996 andgeological and geophysical and other expenses of$17,536, offset by decreasesin dry hole and plugging costs of $185,907.
Current report
Depreciation, Depletion, Amortization and Valuation Provision (DD&A). DD&A increased $450,252 (33%) to $1,805,404 in the six months ended June 30, 2025, from $1,355,152 in the comparable period in 2024, due to an increase in long-lived assets impairments of $113,326 and a $336,926 net increase in depletion, depreciation, and amortization due to an increase in completions and production.
Current report
General, Administrative and Other (G&A). G&A decreased $5,270 (0.40%) to $1,304,254 in the six months ended June 30, 2025, from $1,309,524 in the comparable period in 2024.
Current report
Net income attributable to common stockholders increased $146,762 (14%) to $1,196,555 in the three months ended June 30, 2025, from $1,049,793 in the comparable period in 2024. The significant changes in the Consolidated Statements of Income are discussed below. Net income per share attributable to common stockholders, basic increased $1.09 to $7.88 in the three months ended June 30, 2025, from $6.79 in the comparable period in 2024.
Current report
Operating Revenues. Revenues from oil and gas sales decreased $360,341 (9%) to $3,476,283 in the three months ended June 30, 2025, from $3,836,624 in the comparable period in 2024. The decrease is due to a decrease in oil sales of $689,813, an increase in natural gas sales of $306,604, and an increase in miscellaneous oil and gas product sales of $22,868.
Current report
General, Administrative and Other (G&A). G&A decreased $2,570 (0.40%) to $632,818 in the three months ended June 30, 2025, from $635,388 in the comparable period in 2024.
Removed paragraphs (5)
Previous 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:
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Reworded paragraphs (26)
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 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.
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 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.
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.
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. Factors that would cause actual results to differ materially from expected results are described under “Forward-Looking Statements” on page 3 of the 2024 Form 10-K.
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 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.
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 six months of 2025, the Company continued to fund its business activity using internal sources of cash. The Company had net cash provided by operating activities of $5,012,279 in the six months ended June 30, 2025. The Company had sales of equity securities of $1,007,226, cash provided by property dispositions of $3,136,169, distributions from other investments of $466,000, for total cash provided by investing activities of $4,609,395. The Company utilized cash for the purchase of property of $6,090,663, the purchase of equity securities of $1,442,289, andpurchase of investments of $668,885, for cash applied to investing activities of $8,201,837. The Company paid $1,517,794 in stockholder dividends, $25,440 for the purchase of treasury stock, and $73,097 in payments on the Grand Woods note payable, for total cash applied to financing activities of $1,616,331. Cash provided by financing activities included Grand Woods Class C non-controlling interest contributions of $32,709. Cash and cash equivalents decreased $163,785 (4%) to $3,760,037 at June 30, 2025, from $3,923,822 at December 31, 2024.
Previous wording
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 wording
Equity securities increased $646,213 (26%) to $3,147,407 as of June 30, 2025, from $2,501,194 at December 31, 2024. The increase resulted from $435,063 in net purchases and a $236,304 net increase in market value.
Previous wording
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 wording
Accounts payable decreased $309,197 (59%) to $210,985 as of June 30, 2025, from $520,182 at December 31, 2024, primarily due to the timing of activity and invoices.
Previous 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.
Current wording
Other current liabilities increased $11,818 (26%) to $56,998 as of June 30, 2025, from $45,180 at December 31, 2024, due to a decrease of $24,661 in payroll taxes, offset by an increase in state income and accrued property taxes of $36,479.
Previous 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.
Current wording
Discussion of Significant Changes in the Consolidated Statements of Cash Flows. Net cash provided by operating activities was $5,012,279 in the six months ended June 30, 2025, an increase of $2,095,693 (72%) in net cash provided by operations in the comparable period in 2024 of $2,916,586. For more information see “Operating Revenues” and “Other Income, Net” below.
Previous 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.
Current wording
Cash applied to the purchase of property, plant and equipment in the six months ended June 30, 2025, was $6,090,663, an increase of $905,808 (17%) from cash applied to the purchase of property, plant and equipment in the comparable period in 2024 of $5,184,855. Of the $6,090,663 applied to the purchase of property, plant and equipment in the six months ended June 30, 2025, approximately 41% was for the purchase of unproved leasehold and minerals, approximately 49% for intangible drilling costs, and approximately 10% to purchase lease and well equipment. Cash provided by the disposal of oil and gas properties was $3,136,169, 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 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.
Current wording
Cash applied to the purchase of available-for-sale debt securities in the six months ended June 30, 2025, was $0, a decrease of $313,826 (100%) from $313,826 in the comparable period in 2024. Cash applied to the maturity of available-for-sale debt securities in the six months ended June 30, 2025, was $0, a decrease of $2,534,727 (100%) from $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. Excess cash not invested in long-term vehicles is invested in liquid securities. Cash applied to equity method and other investments in the six months ended June 30, 2025, was $668,885, an increase of $288,815 (76%) from cash applied in the comparable period of 2024 of $380,070. Current year activity was primarily for the call of capital committed to the investment in Cortado Ventures Fund II-A LP of $250,000 and for the call of capital committed to the investment in Cypress MWC, LLC of $375,000.
Previous 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.
Current wording
Off-Balance Sheet Arrangements. The Company is a guarantor of 15% of a $620,000 development loan that matures July 15, 2028, held by QSN Office Park, LLC. The Company is committed to a $250,000 investment in VCC Venture Fund I, LP, of which $187,500 (75%) is invested at June 30, 2025. The Company is committed to a $1,000,000 investment in Cortado Ventures Fund II-A, of which $850,000 (85%) is invested at June 30, 2025. For more information about these entities and the related off-balance sheet arrangements, see Note 5 and Note 6 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 2024 Form 10-K would not be representative of our 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 the Company’s current position.
Previous 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.
Current wording
Net income attributable to common stockholders increased $1,187,915 (66%) to $2,974,716 in the six months ended June 30, 2025, from $1,786,801 in the comparable period in 2024. Net income per share attributable to common stockholders, basic, increased $8.07 to $19.60 in the six months ended June 30, 2025, from $11.53 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
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.
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 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.
Previous 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.
Current wording
Sales of miscellaneous oil and natural gas products were $177,107 in the six months ended June 30, 2025, compared to $116,324 in the comparable period in 2024.
Previous 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.
Current wording
Water well drilling revenues decreased $660,975 (100%) to $0 in the six months ended June 30, 2025, related to water well drilling through TWS, with $660,975 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 additional information on TWS.
Previous wording
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 wording
Operating Costs and Expenses. Operating costs and expenses decreased $633,079 (11%) to $4,894,255 in the six months ended June 30, 2025, from $5,527,334 in the comparable period of 2024.
Previous 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.
Current wording
Equity Income in Investees. Equity income in investees increased $5,095 (9%) to $62,453 in the six months ended June 30, 2025, from $57,358 in the comparable period in 2024. Income in the six months ended June 30, 2025, was made up of income of $17,687 in Broadway Sixty-Eight, LLC (“Broadway 68”), income of $32,813 in Broadway Seventy-Two, LLC (“Broadway 72”), income of $14,714 from Victorum BRH Investment, LLC, offset by losses of $2,611 in QSN Office Park, LLC (“QSN”), and $150 in Stott's Mill. See Note 5 to the accompanying financial statements for additional information on equity method investments.
Previous 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.
Current wording
Income Tax Provision. Income tax provision increased $96,565 (13%) to $815,816 in the six months ended June 30, 2025, from $719,251 in the comparable period in 2024. Of the 2025 tax provision, estimated current tax provision was $2,602 and estimated deferred tax provision was $813,214. Of the 2024 income tax provision, the estimated current tax provision was $799 and the estimated deferred tax provision was $718,452.
Previous 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.
Current wording
The $689,813 (22%) decrease in oil sales to $2,446,906 in the three months ended June 30, 2025, from $3,136,719 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 4,110 Bbls to 43,494 Bbls in the three months ended June 30, 2025, resulting in a positive volume variance of $327,320. The average price per Bbl decreased $23.38 to $56.26 per Bbl in the three months ended June 30, 2025, from $79.64 per Bbl in the comparable period in 2024, resulting in a negative price variance of $1,017,133.
Previous 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.
Current wording
The $306,604 (49%) increase in natural gas sales to $937,318 in the three months ended June 30, 2025, from $630,714 in the comparable period in 2024 was the result of an increase in the volume sold and an increase in the average price per MCF. The volume of natural gas sold increased 99,670 MCF to 326,927 MCF in the three months ended June 30, 2025, from 227,257 MCF in the comparable period in 2024, resulting in a positive volume variance of $277,083. The average price per MCF increased $0.09 to $2.87 per MCF in the three months ended June 30, 2025, from $2.78 per MCF in the comparable period in 2024, resulting in a positive price variance of $29,521.
Previous wording
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 wording
Production Costs. Production costs decreased $30,093 (3%) to $1,045,519 in the three months ended June 30, 2025, from $1,075,612 in the comparable period in 2024. Lease operating expenses increased $58,396 (9%), gas deductions and other costs decreased by $22,575 (13%), and gross production taxes decreased $65,914 (26%).
Previous 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.
Current wording
Exploration Costs. Exploration costs decreased $54,455 (32%) to $114,421 in the three months ended June 30, 2025, from $168,876 in the comparable period in 2024, due to decreased dry hole and plugging costs of $60,713, offset by an increase of $6,258 in geological and geophysical and other costs.
Previous wording
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 wording
Water Well Drilling Costs. Water well drilling costs decreased $31,589 (100%) to $0 in the three months ended June 30, 2025, from $31,589 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 additional information on TWS.
Previous 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.
Current wording
Depreciation, Depletion, Amortization and Valuation Provision (DD&A). DD&A increased $51,543 (6%) to $897,526 in the three months ended June 30, 2025, from $845,983 in the comparable period in 2024, due to an increase in long-lived assets impairments of $94,819 and a $43,276 net decrease in depletion, depreciation, and amortization.
Previous wording
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.
Current wording
Gain on Disposition of Oil and Gas Properties. We had a gain on the sale of unproved, non-producing leasehold of $123,093 in the three months ended June 30, 2025, with none in the the comparable period in 2024.
Previous 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.
Current wording
Other Income, Net. Other income, net increased $340,851 in the three months ended June 30, 2025, to $562,105 from $221,254 in the comparable period in 2024. See Note 4 to the accompanying consolidated financial statements for an analysis of the components of this item.
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
Operating Revenues. Revenues from oil and natural gas sales increased $479,482 (7%) to $7,327,748 in the six months ended June 30, 2025, from $6,848,266 in the comparable period in 2024. The increase is due to a decrease in oil sales of $497,276, an increase in natural gas sales of $915,975, and an increase in miscellaneous oil and natural gas product sales of $60,783.
Current report — wording carried from elsewhere
Water Well Drilling Costs. Water well drilling costs decreased $410,178 (100%) to $0 in the six months ended June 30, 2025, from $410,178 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 additional information on TWS.
Current report — wording carried from elsewhere
Gain on Disposition of Oil and Gas Properties. We had a gain on the sale of unproved, non-producing leasehold of $615,375 in the six months ended June 30, 2025, with none in the the comparable period in 2024.
Current report — wording carried from elsewhere
Other Income, Net. Other income, net was $829,809 in the six months ended June 30, 2025, as compared $481,894 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.
Current report — wording carried from elsewhere
Operating Costs and Expenses. Operating costs and expenses decreased $188,035 (7%) to $2,611,026 in the three months ended June 30, 2025, from $2,799,061 in the comparable period in 2024.
Current report — wording carried from elsewhere
Equity Income in Investees. Equity income in investees decreased $10,544 (31%) to $23,273 in the three months ended June 30, 2025, from $33,817 in the comparable period in 2024. See Note 5 to the accompanying financial statements for additional information on equity method investments.
Current report — wording carried from elsewhere
Income Tax Provision. Income tax provision decreased $11,247 (4%) to $268,280 in the three months ended June 30, 2025, from $279,527 in the comparable period in 2024. Of the 2025 tax provision, estimated current tax benefit was $9,632 and estimated deferred tax provision was $277,912. Of the 2024 income tax provision, the estimated current tax provision was $308,070 and the estimated deferred tax benefit was $28,543.