CKX(CKX) - 2022 Q3 - Quarterly Report

Revenue Growth - Total revenues for the three months ended September 30, 2022, were $330,232, an increase of approximately 90$412,375, representing a 60.1% increase from $257,555 in 2021[85]. - Timber sales for the nine months ended September 30, 2022, were$198,283, a 72.6% increase from $114,877 in 2021[85]. - Surface revenue for the nine months ended September 30, 2022, was$211,704, an increase of 26.5% compared to $167,297 in 2021[85]. - Oil revenues for the three months ended September 30, 2022, were$170,376, a 69.2% increase from $100,715 in 2021[79]. - Gas revenues for the three months ended September 30, 2022, were$17,199, a 163.3% increase from $6,532 in 2021[79]. Pricing Information - The average oil sales price per barrel for the three months ended September 30, 2022, was$107.49, compared to $60.94 in 2021[80]. - The average gas sales price per MCF for the three months ended September 30, 2022, was$8.25, up from $3.28 in 2021[80]. Production Data - Net oil production decreased from 3,975 Bbl in 2021 to 3,734 Bbl in 2022, while average oil sales price increased from$56.90 to $98.34 per Bbl, resulting in an increase in oil revenues by$141,047[88]. - Net gas production decreased from 9,275 MCF in 2021 to 6,692 MCF in 2022, with average gas sales price rising from $3.04 to$6.22 per MCF, leading to an increase in gas revenues by $13,431[88]. - Timber revenue increased from$114,877 in 2021 to $198,283 in 2022, attributed to normal business variations in timber customers' harvesting[90]. Expenses and Cash Flow - General and administrative expenses increased by$788,294 for the nine months ended September 30, 2022, primarily due to share-based compensation and increased payroll expenses[94]. - Net cash provided by operating activities improved from ($63,893) in 2021 to$176,096 in 2022, driven by higher revenues from oil, gas, timber, and surface operations[100]. - Net cash used in investing activities was ($26,421) in 2022, compared to$988,570 in 2021, primarily due to purchases of mutual funds and property, plant, and equipment[101]. Assets and Liabilities - The company had no outstanding debt as of September 30, 2022, and current assets totaled $8,122,422 against current liabilities of$203,926[96][97]. Strategic Initiatives - The company is exploring strategic alternatives for growth, including land acquisitions and business combinations, to enhance shareholder value[99]. - The company is actively searching for additional undeveloped acres in Southwest Louisiana suitable for residential subdivisions[76]. - The company has closed on the sale of 21 out of 39 lots in its ranchette-style subdivisions as of September 30, 2022[74]. Land Sale Performance - Gain on sale of land decreased from $851,582 in 2021 to$261,316 in 2022 for the nine months ended September 30[95]. - Surface revenues rose by $44,407 for the nine months ended September 30, 2022, due to one-time oil and gas delay rentals and new surface leases[91].