CKX LANDS INC
For the period ended Jun 30, 2024. Filed Aug 12, 2024.
View on SEC.govAbout this filing
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, 2024 · Filed Aug 12, 2024
CKX$10.37-0.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-13.
0001437749-24-016203
Item 2. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-12.
0001437749-24-026102
Item 2. MANAGEMENT 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 51 previous paragraphs and 62 current paragraphs.
31 unchanged; 19 reworded; 9 added; 1 removed; 0 previous and 3 current paragraphs rearranged.
Tables are not compared: 1 previous and 2 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 (9)
Current report
Oil and gas revenues increased for the three months ended June 30, 2024, as compared to the three months ended June 30, 2023, by $59,787. The increase was due to an increase in the average oil price and net oil produced, offset by a decrease in average gas price and gas produced.
Current report
Surface revenues increased for the three months ended June 30, 2024, as compared to the three months ended June 30, 2023, by $608,049. The increase in surface revenue was due to three natural gas pipeline right of way agreements on the Company’s wholly- and partially-owned acreage. While non-recurring in nature, these right of way agreements and related income are driven by increased economic and industrial development activity in the Company’s region, which management believes could continue throughout the 2024 fiscal year.
Current report
Revenue–*** Six Months Ended June 30, 2024***
Current report
Oil and Gas
Current report
Oil and gas revenues were 21% and 28% of total revenues for the six months ended June 30, 2024 and 2023, respectively.
Current report
Timber
Current report
Surface
Current report
Surface revenues increased for the six months ended June 30, 2024, as compared to the six months ended June 30, 2023, by $550,457. The increase in surface revenue was due to three natural gas pipeline right of way agreements on the Company’s wholly- and partially-owned acreage. While non-recurring in nature, these right of way agreements and related income are driven by increased economic and industrial development activity in the Company’s region, which management believes could continue throughout the 2024 fiscal year.
Current report
Net cash used in financing activities was $208,854 and $0 for the six months ended June 30, 2024 and 2023, respectively. For the six months ended June 30, 2024, this resulted from repurchases of common stock.
Removed paragraphs (1)
Previous report
Surface revenues decreased for the three months ended March 31, 2024, as compared to the three months ended March 31, 2023, by $57,592. The decrease in surface revenue versus the first quarter of last year was primarily attributable to lower right-of-way payments as well as the fact that in the first quarter of 2023, the Company recognized non-recurring surface revenue from the expiration of a three year deposit made by one of its customers.
Reworded paragraphs (19)
Previous wording
In 2019, the Company began developing several ranchette-style subdivisions on certain of its lands in Calcasieu and Beauregard Parishes using existing road rights of way. The Company has identified demand in those areas for ranchette-style lots, which consist of more than three acres each, and the Board of Directors and management believe this project will allow the Company to realize a return on its investment in the applicable lands after payment of expenses. The Company has completed and recorded plans for three subdivisions. The three subdivisions are located on approximately 415 acres in Calcasieu Parish and approximately 160 acres in Beauregard Parish and contain an aggregate of 39 lots. As of March 31, 2024, the Company has closed on the sale of 21 of the 39 lots. As of the date of this report one sale was pending, and the Company is actively marketing the remaining lots.
Current wording
In 2019, the Company began developing several ranchette-style subdivisions on certain of its lands in Calcasieu and Beauregard Parishes using existing road rights of way. The Company has identified demand in those areas for ranchette-style lots, which consist of more than three acres each, and the Board of Directors and management believe this project will allow the Company to realize a return on its investment in the applicable lands after payment of expenses. The Company has completed and recorded plans for three subdivisions. The three subdivisions are located on approximately 415 acres in Calcasieu Parish and approximately 160 acres in Beauregard Parish and contain an aggregate of 39 lots. As of June 30, 2024, the Company has closed on the sale of 22 of the 39 lots. As of the date of this report the Company is actively marketing the remaining lots.
Previous wording
During 2023, the Company closed on the sale of two 40-acre parcels located in Jefferson Davis Parish in which it had a 16.67% ownership interest (13.3 net acres) for proceeds to the Company of $149,992.
Current wording
During 2023, the Company closed on the sale of two 40-acre parcels located in Jefferson Davis Parish in which it had a 16.67% ownership interest (13.3 net acres) for proceeds to the Company of $149,992. During the three months ended June 30, 2024, the Company closed on the sale of one 25-acre ranchette lot in which it had a 100% ownership interest for net proceeds to the Company of $140,582.
Previous wording
The Company’s results of operations for the three months ended March 31, 2024 were driven primarily by decreases in surface revenues, gain on sale of land and general and administrative expenses offset by increases in oil and gas, and timber revenue. The decrease in general and administrative expenses is primarily due to a decrease in share-based compensation expense, offset by an increase in land research advisory fees.
Current wording
The Company’s results of operations for the six months ended June 30, 2024 were driven primarily by increases in oil and gas and surface revenues, offset by an increase in general and administrative expenses. The increase in general and administrative expenses is primarily due to an increase in land research advisory fees and tax preparation fees, offset by a decrease in share-based compensation expense.
Previous wording
Total revenues for the three months ended March 31, 2024 were $141,849, a decrease of approximately 14.4% when compared with the same period in 2023. Total revenue consists of oil and gas, timber, and surface revenues. Components of revenues for the three months ended March 31, 2024 as compared to 2023, are as follows:
Current wording
Total revenues for the three months ended June 30, 2024 were $1,027,434, an increase of approximately 177% when compared with the same period in 2023. Total revenue consists of oil and gas, timber, and surface revenues. Components of revenues for the three months ended June 30, 2024 as compared to 2023, are as follows:
Previous wording
Oil and gas revenues were 58% and 30% of total revenues for the three months ended March 31, 2024 and 2023, respectively.
Current wording
Oil and gas revenues were 16% and 27% of total revenues for the three months ended June 30, 2024 and 2023, respectively.
Previous wording
CKX received oil and/or gas revenues from 58 and 62 wells during the three months ended March 31, 2024 and 2023, respectively.
Current wording
CKX received oil and/or gas revenues from 62 and 64 wells during the three months ended June 30, 2024 and 2023, respectively.
Previous wording
Timber revenue was $2,275 and $1,901 for the three months ended March 31, 2024 and 2023, respectively. The increase in timber revenues was due to normal business variations in timber customers’ harvesting.
Current wording
Timber revenue was $0 and $10,782 for the three months ended June 30, 2024 and 2023, respectively. The decrease in timber revenues was due to normal business variations in timber customers’ harvesting.
Previous wording
Oil and gas revenues increased for the three months ended March 31, 2024, as compared to the three months ended March 31, 2023, by $33,305. The increase was due to an increase in the net oil and gas produced partially offset by a decrease in the average sales price.
Current wording
Oil and gas revenues increased for the six months ended June 30, 2024, as compared to the six months ended June 30, 2023, by $93,092. The increase was due to an increase in the net oil and gas produced partially offset by a decrease in the average sales price.
Previous wording
Costs and Expenses –Three Months Ended March 31, 2024
Current wording
Costs and Expenses –Three and Six Months Ended June 30, 2024
Previous wording
Oil and gas costs increased for the three months ended March 31, 2024 as compared to the three months ended March 31, 2023 by $1,428. This variance is due to the normal variations in year to year costs.
Current wording
Oil and gas costs increased for the three and six months ended June 30, 2024 as compared to the three and six months ended June 30, 2023 by $2,576 and $4,004. This variance is due to the normal variations in year to year costs.
Previous wording
Timber costs increased for the three months ended March 31, 2024, as compared to the three months ended March 31, 2023, by $2,726. The increase is primarily due to increased timber management costs.
Current wording
Timber costs increased for the three months ended June 30, 2024, as compared to the three months ended June 30, 2023, by $2,132. Timber costs increased for the six months ended June 30, 2024, as compared to the six months ended June 30, 2023, by $4,858. Timber costs are related general management of the Company’s timberland. The increase is primarily due to increased timber management costs.
Previous wording
General and administrative expenses decreased for the three months ended March 31, 2024, as compared to the three months ended March 31, 2023, by $84,262. This is primarily due to a decrease in share based compensation expense, offset by an increase in land research advisory fees.
Current wording
General and administrative expenses increased for the three months ended June 30, 2024, as compared to the three months ended June 30, 2023, by $249,127. This is primarily due to an increase in land research fees. General and administrative expenses increased for the six months ended June 30, 2024, as compared to the six months ended June 30, 2023, by $164,865. This is primarily due to an increase in land research advisory fees, offset by a decrease in share-based compensation expense.
Previous wording
Gain on Sale of Land –Three Months Ended March 31, 2023
Current wording
Gain on Sale of Land –Three and Six Months Ended June 30, 2024
Previous wording
Gain on sale of land was $0 and $149,992 for the three months ended March 31, 2024 and 2023, respectively. For the three months ended March 31, 2023, this consisted of a gain on sale of two parcels of land.
Current wording
Gain on sale of land was $140,582 and $149,992 for the three and six months ended June 30, 2024 and 2023, respectively. For the three and six months ended June 30, 2024, this consisted of the sale of one 25-acre ranchette lot in Calcasieu parish. For the three and six months ended June 30, 2023, this consisted of a gain on sale of two parcels of land.
Previous wording
Current assets totaled $8,982,131 and current liabilities equaled $368,394 at March 31, 2024.
Current wording
Current assets totaled $9,688,496 and current liabilities equaled $466,287 at June 30, 2024.
Previous wording
Net cash used in operating activities was $337,838 and $90,391 for the three months ended March 31, 2024 and 2023, respectively. The increase in cash used in operating activities was attributable to a decrease in current liabilities.
Current wording
Net cash provided by operating activities was $353,909 and $104,185 for the six months ended June 30, 2024 and 2023, respectively. The increase in cash provided by operating activities was attributable to the increase in net income as a result of the material, high-margin right of way revenue recognized in the current year.
Previous wording
Net cash provided by investing activities was $34,485 and $132,634 for the three months ended March 31, 2024 and 2023, respectively. For the three months ended March 31, 2024, this resulted from purchases of certificates of deposit of $1,500,000, offset by maturity of certificates of deposit of $1,534,485. For the three months ended March 31, 2023, this primarily resulted from proceeds of the sale of fixed assets offset by costs of reforesting timber of $17,358.
Current wording
Net cash provided by investing activities was $175,067 and $1,133,860 for the six months ended June 30, 2024 and 2023, respectively. For the six months ended June 30, 2024, this resulted from maturity of certificates of deposit of $1,534,485 and proceeds from the sale of fixed assets of $140,582, offset by purchases of certificates of deposit of $1,500,000. For the six months ended June 30, 2023, this primarily resulted from maturity of certificates of deposit of $1,004,603, proceeds of the sale of fixed assets of $149,992, offset by costs of reforesting timber of $20,735.
Previous wording
There were no changes in our significant accounting policies and estimates during the three months ended March 31, 2024 from those set forth in “Significant Accounting Policies and Estimates” in our Annual Report on Form 10-K for the year ended December 31, 2023.
Current wording
There were no changes in our significant accounting policies and estimates during the six months ended June 30, 2024 from those set forth in “Significant Accounting Policies and Estimates” in our Annual Report on Form 10-K for the year ended December 31, 2023.
Previous wording
During the three months ended March 31, 2024, we did not have any off-balance sheet arrangements, financings, or other relationships with unconsolidated entities or other persons, also known as “special purpose entities” (SPEs).
Current wording
During the six months ended June 30, 2024, we did not have any off-balance sheet arrangements, financings, or other relationships with unconsolidated entities or other persons, also known as “special purpose entities” (SPEs).
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Total revenues for the six months ended June 30, 2024 were $1,169,283, an increase of approximately 118% when compared with the same period in 2023. Total revenue consists of oil and gas, timber, and surface revenues. Components of revenues for the six months ended June 30, 2024 as compared to 2023, are as follows:
Current report — wording carried from elsewhere
CKX received oil and/or gas revenues from 62 and 66 wells during the six months ended June 30, 2024 and 2023, respectively.
Current report — wording carried from elsewhere
Timber revenue was $2,275 and $12,683 for the six months ended June 30, 2024 and 2023, respectively. The decrease in timber revenues was due to normal business variations in timber customers’ harvesting.