CKX LANDS, INC.
For the period ended Mar 31, 2025. Filed May 12, 2025.
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.
Mar 31, 2025 · Filed May 12, 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-Q
Period ended 2024-09-30; filed 2024-11-08.
0001437749-24-034224
Item 2. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-12.
0001437749-25-016019
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 62 previous paragraphs and 55 current paragraphs.
30 unchanged; 18 reworded; 4 added; 11 removed; 3 previous and 3 current paragraphs rearranged.
Tables are not compared: 2 previous and 1 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 (4)
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
Oil and gas costs increased for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 by $10,344. The increase is primarily due to an increase in production taxes.
Current report
Net cash provided by investing activities was $172,243 and $34,485 for the three months ended March 31, 2025 and 2024, respectively. The increase to net cash provided by investing activities resulted from purchases of certificates of deposits of $6,502,665, offset by the maturity of certificates of deposit of $6,674,908.
Removed paragraphs (11)
Previous report
Revenue–*** Nine Months Ended September 30, 2024***
Previous report
Oil and Gas
Previous report
Oil and gas revenues were 24% and 25% of total revenues for the nine months ended September 30, 2024 and 2023, respectively.
Previous report
Oil and gas revenues increased for the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023, by $118,506. The increase was due to an increase in the net oil and gas produced as well as an increase in the average oil sales price, partially offset by a decrease in the average gas sales price.
Previous report
Timber
Previous report
Surface
Previous report
Surface revenues increased for the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023, by $536,761. 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.
Previous report
Oil and gas costs increased for the three months ended September 30, 2024 as compared to the three months ended September 30, 2023 by $5,915. Oil and gas costs increased for the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023 by $9,918. Oil and gas costs increased proportionately with increased production; increased costs on the timber side were due to site preparation, such as spraying and replanting.
Previous report
Gain on Sale of Land –Three and Nine Months Ended September 30, 2024
Previous report
Gain on sale of land was $140,582 and $149,992 for the nine months ended September 30, 2024 and 2023, respectively. For the nine months ended September 30, 2024, this consisted of the sale of one 25-acre ranchette lot in Calcasieu parish. For the nine months ended September 30, 2023, this consisted of a gain on sale of two parcels of land. There were no land sales for the three months ended September 30, 2024 and 2023.
Previous report
Net cash used in investing activities was $4,126,604 and $ 374,184 for the nine months ended September 30, 2024 and 2023, respectively. For the nine months ended September 30, 2024, this resulted from purchases of certificates of deposits of $7,340,723, offset by the maturity of certificates of deposit of $3,073,537 and proceeds from the sale of fixed assets of $140,582. For the nine months ended September 30, 2023, this primarily resulted from purchases of certificates of deposits of $1,508,042 and costs of reforesting timber of $20,737, offset by the maturity of certificates of deposit of $1,004,603 and proceeds of the sale of fixed assets of $149,992.
Reworded paragraphs (18)
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, 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. 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 are 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. 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 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.
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. During the nine months ended September 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.
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’s results of operations for the nine months ended September 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.
Current wording
The Company’s results of operations for the three months ended March 31, 2025 were driven primarily by increases in oil and gas and surface revenues, along with a decrease in general and administrative expenses. The decrease in general and administrative expenses is primarily due to a decrease in professional expenses and stock-based compensation expense.
Previous wording
Total revenues for the three months ended September 30, 2024 were $171,269, a decrease of approximately 33.9% 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 September 30, 2024 as compared to 2023, are as follows:
Current wording
Total revenues for the three months ended March 31, 2025 were $348,184, an increase of approximately 145.5% when compared with the same period in 2024. Total revenue consists of oil and gas, timber, and surface revenues. Components of revenues for the three months ended March 31, 2025 as compared to 2024, are as follows:
Previous wording
Oil and gas revenues were 43% and 19% of total revenues for the three months ended September 30, 2024 and 2023, respectively.
Current wording
Oil and gas revenues were 77% and 58% of total revenues for the three months ended March 31, 2025 and 2024, respectively.
Previous wording
CKX received oil and/or gas revenues from 64 and 58 wells during the three months ended September 30, 2024 and 2023, respectively.
Current wording
CKX received oil and/or gas revenues from 71 and 58 wells during the three months ended March 31, 2025 and 2024, respectively.
Previous wording
Oil and gas revenues increased for the three months ended September 30, 2024, as compared to the three months ended September 30, 2023, by $25,416. The increase was due to an increase in the average oil sales and average gas sales prices as well as an increase in net oil and gas produced.
Current wording
Oil and gas revenues increased for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024, by $186,008. The increase was due to an increase in the average gas sales prices as well as an increase in net oil and gas produced.
Previous wording
Timber revenue was $18,883 and $118,365 for the three months ended September 30, 2024 and 2023, respectively. The decrease in timber revenues was due to normal business variations in timber customers’ harvesting.
Current wording
Timber revenue was $0 and $2,275 for the three months ended March 31, 2025 and 2024, respectively. The decrease in timber revenues was due to normal business variations in timber customers’ harvesting.
Previous wording
Surface revenues decreased for the three months ended September 30, 2024, as compared to the three months ended September 30, 2023, by $13,696. The decrease in surface revenue was due to lower oil and gas delay rental income, partially offset by higher surface lease income.
Current wording
Surface revenues increased for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024, by $22,602. The increase in surface revenue was due to an increase in farm rental income as well as higher surface lease income.
Previous wording
Costs and Expenses –Three and Nine Months Ended September 30, 2024
Current wording
Costs and Expenses –Three Months Ended March 31, 2025
Previous wording
Timber costs increased for the three months ended September 30, 2024, as compared to the three months ended September 30, 2023, by $6,043. Timber costs increased for the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023, by $10,901. Timber costs are related to general management of the Company’s timberland. The increase is primarily due to increased timber management costs.
Current wording
Timber costs decreased for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 by $209. Timber costs are related to general management of the Company’s timberland. The decrease is primarily due to decreased timber management costs.
Previous wording
General and administrative expenses decreased for the three months ended September 30, 2024, as compared to the three months ended September 30, 2023, by $79,217. This is primarily due to a decrease in share-based compensation expense. General and administrative expenses increased for the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023, by $85,647. This is primarily due to an increase in land research advisory fees, offset by a decrease in share-based compensation expense.
Current wording
General and administrative expenses decreased for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 by $352,360. This is primarily due to a decrease in share-based compensation expense along with a decrease in professional fees.
Previous wording
Current assets totaled $9,460,950 and current liabilities equaled $174,134 at September 30, 2024.
Current wording
Current assets totaled $9,751,251 and current liabilities equaled $259,796 at March 31, 2025.
Previous wording
Net cash provided by operating activities was $107,406 and $252,420 for the nine months ended September 30, 2024 and 2023, respectively. The decrease in cash provided by operating activities was attributable to the decrease in share-based compensation partially offset by the change in deferred income taxes and current assets.
Current wording
Net cash provided by (used in) operating activities was $118,664 and $(337,838) for the three months ended March 31, 2025 and 2024, respectively. The increase in cash provided by operating activities was attributable to an increase to net income partially offset by an increase in current assets.
Previous wording
Net cash used in financing activities was $208,854 and $0 for the nine months ended September 30, 2024 and 2023, respectively. For the nine months ended September 30, 2024, this resulted from repurchases of common stock.
Current wording
Net cash used in financing activities was $0 for the three months ended March 31, 2025 and 2024.
Previous wording
There were no changes in our significant accounting policies and estimates during the nine months ended September 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.
Current wording
There were no changes in our significant accounting policies and estimates during the three months ended March 31, 2025, from those set forth in “Significant Accounting Policies and Estimates” in our Annual Report on Form 10-K for the year ended December 31, 2024.
Previous wording
During the nine months ended September 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).
Current wording
During the three months ended March 31, 2025, 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
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.
Current report — wording carried from elsewhere
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 — wording carried from elsewhere
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.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Total revenues for the nine months ended September 30, 2024 were $1,340,550, an increase of approximately 68.6% when compared with the same period in 2023. Total revenue consists of oil and gas, timber, and surface revenues. Components of revenues for the nine months ended September 30, 2024 as compared to 2023, are as follows:
Previous report — wording carried elsewhere
CKX received oil and/or gas revenues from 64 and 66 wells during the nine months ended September 30, 2024 and 2023, respectively.
Previous report — wording carried elsewhere
Timber revenue was $21,158 and $131,048 for the nine months ended September 30, 2024 and 2023, respectively. The decrease in timber revenues was due to normal business variations in timber customers’ harvesting.