CKX LANDS, INC.
For the period ended Dec 31, 2024. Filed Mar 25, 2025.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2024 · Filed Mar 25, 2025
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-K
Period ended 2023-12-31; filed 2024-03-27.
0001437749-24-009560
Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-K
Period ended 2024-12-31; filed 2025-03-25.
0001437749-25-009075
Item 7. 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 54 previous paragraphs and 60 current paragraphs.
31 unchanged; 23 reworded; 6 added; 0 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 5 previous and 5 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 (6)
Current report
On April 18, 2024, the Company provided an update on the process, noting that it had received preliminary indications of interest from multiple parties related to the potential acquisition of the Company or its assets, and that the Company and its advisors were working with a select group of these parties to provide them with additional information. The Board has formed a subcommittee to provide oversight and management of the process.
Current report
Since the April 18, 2024 update, management and the Board subcommittee, together with the Company’s financial advisors, have continued working with interested parties and have advanced discussions with a potential counterparty.
Current report
As part of management’s desire to maximize value for shareholders through this process, the Company expects to seek to partition, in kind or by sale, ownership of its undivided interests in lands co-owned with others. There can be no assurance that the Company will be successful in reaching a negotiated partition of its co-owned acreage that would avoid the need to seek partition in court.
Current report
Additionally, a sale of the Company or all or substantially all of its assets would be subject to a number of conditions and contingencies, including the approval of the Company’s shareholders. There can be no assurance that this process will result in the successful negotiation of a definitive agreement for a transaction or any other strategic outcome, or that the Board will recommend that CKX’s shareholders approve any transaction.
Current report
(1) Before deduction of production costs and severance taxes
Current report
(2) Excludes plant products
Reworded paragraphs (23)
Previous wording
CKX leases its property to oil and gas operators and collects income through its land ownership in the form of oil and gas royalties and lease rentals and geophysical revenues. The Company’s oil and gas income fluctuates as new oil and gas production is discovered on Company land and then ultimately depletes or becomes commercially uneconomical to produce. The volatility in the daily commodity pricing of a barrel of oil or a thousand cubic feet, or “MCF,” of gas will also cause fluctuations in the Company’s oil and gas income. These commodity prices are affected by numerous factors and uncertainties external to CKX’s business and over which it has no control, including the global supply and demand for oil and gas, the effect of the COVID-19 pandemic and government responses to the pandemic on supply and demand, geopolitical conditions and domestic and global economic conditions, among other factors.
Current wording
CKX leases its property to oil and gas operators and collects income through its land ownership in the form of oil and gas royalties and lease rentals and geophysical revenues. The Company’s oil and gas income fluctuates as new oil and gas production is discovered on Company land and then ultimately depletes or becomes commercially uneconomical to produce. The volatility in the daily commodity pricing of a barrel of oil or a thousand cubic feet, or “MCF,” of gas will also cause fluctuations in the Company’s oil and gas income. These commodity prices are affected by numerous factors and uncertainties external to CKX’s business and over which it has no control, including the global supply and demand for oil and gas, geopolitical conditions and domestic and global economic conditions, among other factors.
Previous wording
The Company’s Board of Directors regularly evaluates a range of strategic alternatives that could increase shareholder value, and the Board and management conduct due diligence activities in connection with such alternatives. These include opportunities for growth though the acquisitions of land or other assets, business combinations, dispositions of assets and reinvestment of the proceeds, and other alternatives. On August 21, 2023, the Company announced that the Board had determined to initiate a formal process to evaluate strategic alternatives for the Company to enhance value for stockholders and had retained a financial advisor in connection with the process. As noted in the announcement, the Board and the management team are considering a broad range of potential options, including continuing to operate CKX as a public, independent company or a sale of all or part of the company, among other potential alternatives. There is no deadline or definitive timetable set for the completion of the review of strategic alternatives and there can be no assurance that this process will result in CKX pursuing a transaction or any other strategic outcome.
Current wording
The Company’s Board of Directors regularly evaluates a range of strategic alternatives that could increase shareholder value, and the Board and management conduct due diligence activities in connection with such alternatives. These include opportunities for growth though the acquisitions of land or other assets, business combinations, dispositions of assets and reinvestment of the proceeds, and other alternatives. On August 21, 2023, the Company announced that the Board had determined to initiate a formal process to evaluate strategic alternatives for the Company to enhance value for stockholders and had retained a financial advisor in connection with the process.
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 December 31, 2023, 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 December 31, 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 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 had net income for the year ended December 31, 2023 of $142,961 compared to a net loss of $1,317,718 for the year ended December 31, 2022. This change was primarily attributable to a decrease of $1,466,698 in share-based compensation expense, an increase in gain on sale of land of $131,020, offset by a decrease of deferred tax benefits. The Company has granted awards for all of the shares that are issuable under its stock incentive plan, and no further awards may be made under the plan.
Current wording
The Company had net income for the year ended December 31, 2024 of $250,224 compared to net income of $142,961 for the year ended December 31, 2023. This change was primarily attributable to an increase of $35,519 in total revenue, a decrease in general and administrative expenses of $30,155 and an increase of $46,646 in interest income, offset by an increase in deferred income tax expenses. As of December 31, 2024, the Company has fully expensed all awards under its stock incentive plan.
Previous wording
Total revenues for 2023 were $1,485,605, an increase of approximately 34% when compared with 2022 revenues of $1,105,494. Total revenue consists of oil and gas, timber, and surface revenues. Components of revenues for the year ended December 31, 2023 as compared to 2022, are as follows:
Current wording
Total revenues for 2024 were $1,521,124, an increase of approximately 2.4% when compared with 2023 revenues of $1,485,605. Total revenue consists of oil and gas, timber, and surface revenues. Components of revenues for the year ended December 31, 2024 as compared to 2023, are as follows:
Previous wording
Oil and gas revenues were 26% and 54% of total revenues for 2023 and 2022, respectively. A breakdown of oil and gas revenues for the years ended December 31, 2023, as compared to 2022 are as follows:
Current wording
Oil and gas revenues were 27% and 26% of total revenues for 2024 and 2023, respectively. A breakdown of oil and gas revenues for the years ended December 31, 2024, as compared to 2023 are as follows:
Previous wording
CKX received oil and/or gas revenues from 72 and 95 wells during the years ended December 31, 2023 and 2022, respectively.
Current wording
CKX received oil and/or gas revenues from 72 wells during the years ended December 31, 2024 and 2023.
Previous wording
Oil revenues decreased for the year ended December 31, 2023, as compared to 2022, by $152,705. Gas revenues decreased for the year ended December 31, 2023, as compared to 2022, by $76,809. As indicated from the schedule above, the decrease in oil revenues was due to a decrease in net oil produced and a decrease in the average oil sales price per barrel. The decrease in gas revenues was due to a decrease in the average price per MCF and a decrease in net gas produced.
Current wording
Oil revenues increased for the year ended December 31, 2024, as compared to 2023, by $52,249. Gas revenues increased for the year ended December 31, 2024, as compared to 2023, by $34,629. As indicated from the schedule above, the increase in oil revenues was due to an increase in net oil produced. The increase in gas revenues was due to an increase in net gas produced.
Previous wording
The following eight fields produced 94.31% of the Company’s oil and gas revenues in 2022. The following table shows the number of barrels of oil (Bbl Oil) and MCF of gas (MCF Gas) produced from these fields.
Current wording
The following eight fields produced 94.82% of the Company’s oil and gas revenues in 2024. The following table shows the number of barrels of oil (Bbl Oil) and MCF of gas (MCF Gas) produced from these fields.
Previous wording
Lease and geophysical revenues increased for the year ended December 31, 2023, as compared to 2022, by $13,413. These revenues are dependent on oil and gas producers’ activities, are not predictable and can vary significantly from year to year.
Current wording
Lease and geophysical revenues decreased for the year ended December 31, 2024, as compared to 2023, by $49,686. These revenues are dependent on oil and gas producers’ activities, are not predictable and can vary significantly from year to year.
Previous wording
Timber revenues were 10% and 20% of total revenues for 2023 and 2022, respectively. Timber revenues decreased for the year ended December 31, 2023, as compared to the year ended December 31, 2022, by $65,827. Management believes the decline in timber revenue versus 2022 is primarily a result of timber harvest timing, and, to a lesser extent, weather. In management’s opinion, demand for timber in the Company’s region was stable during 2023.
Current wording
Timber revenues were 1% and 10% of total revenues for 2024 and 2023, respectively. Timber revenues decreased for the year ended December 31, 2024, as compared to the year ended December 31, 2023, by $131,922. Management believes the decline in timber revenue versus 2023 is primarily a result of timber harvest timing, and, to a lesser extent, weather. In management’s opinion, demand for timber in the Company’s region was stable during 2024.
Previous wording
Surface revenues were 64% and 26% of total revenues for 2023 and 2022, respectively. Surface revenues increased for the year ended December 31, 2023, as compared to 2022, by $662,039. This increase is reflective of sustained robust economic activity in the region, including industrial project development and pipeline construction.
Current wording
Surface revenues were 71% and 64% of total revenues for 2024 and 2023, respectively. Surface revenues increased for the year ended December 31, 2024, as compared to 2023, by $130,249. This increase is reflective of sustained robust economic activity in the region, including industrial project development and pipeline construction.
Previous wording
Oil and gas costs decreased for the year ended December 31, 2023 as compared to 2022 by $8,635. These variances are due to the normal variations in year to year costs, which correlate directly with variations in revenues.
Current wording
Oil and gas costs increased for the year ended December 31, 2024 as compared to 2023 by $4,759. These variances are due to the normal variations in year to year costs, which correlate directly with variations in revenues.
Previous wording
Timber costs decreased for the year ended December 31, 2023 as compared to 2022 by $16,063. This is primarily due to decreased timber management costs.
Current wording
Timber costs increased for the year ended December 31, 2024 as compared to 2023 by $5,784. This is primarily due to decreased timber management costs.
Previous wording
General and administrative expenses decreased for the year ended December 31, 2023 as compared to 2022 by $1,425,410 This is primarily due to decreased officer share-based compensation expense.
Current wording
General and administrative expenses decreased for the year ended December 31, 2024 as compared to 2023 by $30,155. This is primarily due to decreased officer share-based compensation expense.
Previous wording
Gain on sale of land was $149,992 and $18,972 for the years ended December 31, 2023 and 2022, respectively. For the year ended December 31, 2023, this consisted of a gain on sale of two parcels of land. For the year ended December 31, 2022, this consisted of a gain on the sale of two parcels of land.
Current wording
Gain on sale of land was $85,636 and $149,992 for the years ended December 31, 2024 and 2023, respectively. For the years ended December 31, 2024 and 2023, this consisted of a gain on sale of one parcel of land.
Previous wording
The Company began directly managing its lands in 2017, except for approximately 5,030 acres of timber property in which the Company owns an undivided 1/6 interest, which is managed by Walker Louisiana Properties. The Company believes direct land management and continuing economic activity in southwest Louisiana may be a catalyst for increased surface revenue.
Current wording
The Company began directly managing its lands in 2017, except for approximately 5,030 net acres of timber property in which the Company owns an undivided 1/6 interest, which is managed by Walker Louisiana Properties. The Company believes direct land management and continuing economic activity in southwest Louisiana may be a catalyst for increased surface revenue.
Previous wording
The Company’s current assets totaled $9,388,882 and current liabilities equaled $495,348 at December 31, 2023.
Current wording
The Company’s current assets totaled $9,579,388 and current liabilities equaled $264,183 at December 31, 2024.
Previous wording
The Company’s Board of Directors regularly evaluates a range of strategic alternatives that could increase shareholder value, and the Board and management conduct due diligence activities in connection with such alternatives. These include opportunities for growth though the acquisitions of land or other assets or business combinations, dispositions of assets and reinvestment of the proceeds, and other alternatives. Additionally, as noted above, the Company announced on August 21, 2023, that the Board had determined to initiate a formal process to evaluate strategic alternatives for the Company to enhance value for stockholders. The cost and terms of any financing to be raised in conjunction with any growth opportunity, including the Company’s ability to raise debt or equity capital on terms and at costs satisfactory to the Company, and the effect of such opportunities on the Company’s balance sheet, are critical considerations in any such evaluation.
Current wording
The Company’s Board of Directors regularly evaluates a range of strategic alternatives that could increase shareholder value, and the Board and management conduct due diligence activities in connection with such alternatives. These include opportunities for growth though the acquisitions of land or other assets or business combinations, dispositions of assets and reinvestment of the proceeds, and other alternatives. The cost and terms of any financing to be raised in conjunction with any growth opportunity, including the Company’s ability to raise debt or equity capital on terms and at costs satisfactory to the Company, and the effect of such opportunities on the Company’s balance sheet, are critical considerations in any such evaluation.
Previous wording
Net cash provided by operating activities increased by $463,262 to $876,953 for the year ended December 31, 2023, compared to $413,691 for the year ended December 31, 2022. The change in cash provided by operating activities was attributable primarily to the increase in revenue of $380,111 and a decrease in operating expenses, excluding the gain on sale of land.
Current wording
Net cash provided by operating activities decreased by $672,192 to $204,761 for the year ended December 31, 2024, compared to $876,953 for the year ended December 31, 2023. The change in cash provided by operating activities was attributable primarily to a $459,337 decrease in current liabilities.
Previous wording
Net cash used in investing activities was $391,315 and $498,765 for the years ended December 31, 2023 and 2022, respectively. For the year ended December 31, 2023, this included purchases of certificates of deposit of $1,525,173, costs of reforesting timber of $20,737, offset by maturity of certificates of deposits of $1,004,603 and proceeds from the sale of fixed assets of $149,992. For the year ended December 31, 2022, this consisted of purchases of certificates of deposit of $1,000,000, costs of reforesting timber of $16,461, purchases of property and equipment of $12,271, and purchases of land of $564, offset by sales of mutual funds of $511,559 and proceeds from the sale of fixed assets of $18,972.
Current wording
Net cash used in investing activities was $4,121,020 and $391,315 for the years ended December 31, 2024 and 2023, respectively. For the year ended December 31, 2024, this included purchases of certificates of deposit of $7,340,724 offset by maturity of certificates of deposits of $3,079,122 and proceeds from the sale of fixed assets of $140,582. For the year ended December 31, 2023, this consisted of purchases of certificates of deposit of $1,525,173, costs of reforesting timber of $20,737, offset by maturity of certificates of deposits of $1,004,603 and proceeds from the sale of fixed assets of $149,992.
Previous wording
Net cash used in financing activities was $87,156 and $176,592 for the year ended December 31, 2023, and 2022, respectively. For the year ended December 31, 2023, this consisted of repurchases of common stock of $87,156. For the year ended December 31, 2022, this consisted of repurchases of common stock of $176,592.
Current wording
Net cash used in financing activities was $208,854 and $87,156 for the year ended December 31, 2024, and 2023, respectively. For the years ended December 31, 2024 and 2023, this consisted of stock withheld to pay employee taxes of $208,854 and $87,156, respectively.