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What changed in CKX LANDS, INC.'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of CKX LANDS, INC.'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+84 added−76 removedSource: 10-K (2025-03-25) vs 10-K (2024-03-27)

Top changes in CKX LANDS, INC.'s 2024 10-K

84 paragraphs added · 76 removed · 62 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeThere 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.
Biggest changeThere 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.
Of those awards, 14,622 restricted stock units and 31,584 performance share units vested and the underlying shares were issued during the year ended December 31, 2022 and 25,582 restricted stock units vested and the underlying shares were issued during the year ended December 31, 2023.
Of those awards, 25,582 restricted stock units vested and the underlying shares were issued during the year ended December 31, 2023, and 36,551 restricted stock units and 51,761 performance share units vested and the underlying performance shares were issued during the year ended December 31, 2024.
The operator of the oil and gas units is responsible for this permitting process. The operators of the wells are responsible for complying with environmental and other governmental regulations. However, should an operator abandon a well located on Company land without following prescribed procedures, the landowners could possibly be held responsible.
The operators of the wells are responsible for complying with environmental and other governmental regulations. However, should an operator abandon a well located on Company land without following prescribed procedures, the landowners could possibly be held responsible. The Company does not believe this would have a material effect on its financial condition.
Customers The Company’s customers are those who have mineral leases on Company lands, purchase timber in competitive bids or execute surface leases for farming, hunting, right of ways or other purposes.
As of December 31, 2024, there are no longer any unvested awards under the plan, however, 36,551 shares issuable pursuant to awards that vested in 2024 have not yet been issued. 2 Customers The Company’s customers are those who have mineral leases on Company lands, purchase timber in competitive bids or execute surface leases for farming, hunting, right of ways or other purposes.
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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.
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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.
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During 2023, the Company received approximately 69.18% of its total revenues from the following customers: Customer Revenue Type % of Total Revenue Venture Global CP Express, LLC Surface Lease 27.20 % New Generation Gas Gathering, LLC Surface Lease 11.78 % Ballard Exploration Company Oil & Gas 9.53 % Bennett Timber Co., LLC Timber 5.29 % Louisiana Timber Procurement Timber 5.12 % Cedar Holdco, LLC Surface Lease 3.71 % Talos Low Carbon Solutions, LLC Oil & Gas 3.67 % Chato Energy, LLC Oil & Gas 2.88 % Loss of cash receipts from any of these customers or revenue streams would have a material adverse effect on the Company. 2 Environmental and Other Governmental Regulations The Company does not need government approval of its principal products or services except that the State of Louisiana must permit the size and location of all oil and gas producing units.
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The Board has formed a subcommittee to provide oversight and management of the process. 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.
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The Company does not believe this would have a material effect on its financial condition.
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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.
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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.
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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.
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During 2024, the Company received approximately 77.19% of its total revenues from the following customers: Customer Revenue Type % of Total Revenue Pehler & Associates, LLC Surface Lease 35.28 % TC Louisiana Intrastate Pipeline Surface Lease 15.82 % Total Ballard Exploration Company Oil & Gas 10.20 % Total Daylight Petroleum Oil & Gas 4.10 % East LA CCS LLC Oil & Gas 3.58 % Total Chato Energy, LLC Oil & Gas 2.75 % Sunchase Power, LLC Oil & Gas 2.74 % Total EOG Resources, Inc.
Added
Oil & Gas 2.73 % Loss of cash receipts from any of these customers or revenue streams would have a material adverse effect on the Company.
Added
Environmental and Other Governmental Regulations The Company does not need government approval of its principal products or services except that the State of Louisiana must permit the size and location of all oil and gas producing units. The operator of the oil and gas units is responsible for this permitting process.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeSignificant expansion involves risks, such as: ● the availability and terms of financing for the transaction and its effect on our financial condition; ● increased expenses and working capital needs; ● successfully integrating an acquired asset into our existing business, including: o the distraction of our current management from our existing business operations; o the potential loss of key employees or customers of an acquired business; o identifying key managers to run an acquired business; o implementing and maintaining consistent standards, controls, procedures and information systems across the company; o managing the geographic distance of an acquired asset from our other assets and management team; and o exposure to unforeseen or undisclosed liabilities of any acquired asset.
Biggest changeSignificant expansion involves risks, such as: ● the availability and terms of financing for the transaction and its effect on our financial condition; ● increased expenses and working capital needs; ● successfully integrating an acquired asset into our existing business, including: o the distraction of our current management from our existing business operations; o the potential loss of key employees or customers of an acquired business; o identifying key managers to run an acquired business; o implementing and maintaining consistent standards, controls, procedures and information systems across the company; o managing the geographic distance of an acquired asset from our other assets and management team; and o exposure to unforeseen or undisclosed liabilities of any acquired asset. 7 If we are unable to integrate a new asset into our existing business and manage a larger overall company efficiently, the expansion could adversely affect our operations, financial results and prospects, and we might not realize the cost savings and synergies we expected from the expansion.
In addition, speculation regarding any developments related to the review of strategic alternatives and perceived uncertainties related to the future of the Company could cause our stock price to fluctuate significantly. Our operations and properties could be adversely affected by hurricanes or other adverse weather events, natural disasters, or other significant disruptions.
In addition, speculation regarding any developments related to the review of strategic alternatives and perceived uncertainties related to the future of the Company could cause our stock price to fluctuate significantly. 3 Our operations and properties could be adversely affected by hurricanes or other adverse weather events, natural disasters, or other significant disruptions.
Our efforts to comply with new and changing regulations are likely to continue to result in increased general and administrative expenses and a diversion of management time and attention. 5 Our common stock may not have an active, liquid, and orderly trading market, and our stock price may be volatile.
Our efforts to comply with new and changing regulations are likely to continue to result in increased general and administrative expenses and a diversion of management time and attention. Our common stock may not have an active, liquid, and orderly trading market, and our stock price may be volatile.
In addition to hurricanes, natural disasters that could affect our timber lands include tornados, high winds, heavy rains and flooding, and/or fire caused by lightning or other sources. 3 If any of the events described above occurs, we may experience disruptions to our operations and damage to our properties, which could have an adverse effect on our business, our financial condition, our results of operations, and our cash flows.
In addition to hurricanes, natural disasters that could affect our timber lands include tornados, high winds, heavy rains and flooding, and/or fire caused by lightning or other sources. 4 If any of the events described above occurs, we may experience disruptions to our operations and damage to our properties, which could have an adverse effect on our business, our financial condition, our results of operations, and our cash flows.
We have approximately 13,699 net acres of timberland in various stages of growth or age classes. A typical pine timber stand will be harvested after 30 to 35 years of growth with some thinning occurring during this time. A hardwood stand will be harvested after 45 to 50 years of growth.
We have approximately 13,674 net acres of timberland in various stages of growth or age classes. A typical pine timber stand will be harvested after 30 to 35 years of growth with some thinning occurring during this time. A hardwood stand will be harvested after 45 to 50 years of growth.
Additionally, the diversion of management’s time and attention from our day-to-day operations could adversely impact our performance. 6
Additionally, the diversion of management’s time and attention from our day-to-day operations could adversely impact our performance.
The future consequences of COVID-19 or other pandemics, wars or other hostilities, geopolitical instability, widespread cyberattacks, climate events or other national or global crises are uncertain and we cannot predict how such events may affect our future financial condition and results of operations.
The future consequences of pandemics, wars or other hostilities, geopolitical instability, widespread cyberattacks, climate events or other national or global crises are uncertain and we cannot predict how such events may affect our future financial condition and results of operations.
We expect to incur expenses, which could be substantial, associated with identifying, evaluating and negotiating potential strategic alternatives. The process of reviewing potential strategic alternatives may be time-consuming, distracting and disruptive to our business and our management team. We may also incur additional unanticipated expenses in connection with this process.
We have incurred and expect to continue to incur expenses, which could be substantial, associated with identifying, evaluating and negotiating potential strategic alternatives. The process of reviewing potential strategic alternatives may be time-consuming, distracting and disruptive to our business and our management team. We may also incur additional unanticipated expenses in connection with this process.
Disruptions in commercial activity and changes in consumer spending resulting from the COVID-19 pandemic significantly affected worldwide commerce and the global economy. Although we operated continuously throughout the pandemic, and while conditions in the U.S. and around the world have significantly improved, we cannot predict how new variants of coronavirus could impact our operations in the future.
Disruptions in commercial activity and changes in consumer spending resulting from the COVID-19 pandemic significantly affected worldwide commerce and the global economy. Although we operated continuously throughout the pandemic, and while conditions in the U.S. and around the world significantly improved, we cannot predict how new variants of coronavirus or other viral outbreaks could impact our operations in the future.
We are actively working with financial and legal advisors in this strategic alternative review process. We cannot make any assurances about the timing or outcome of the process, including whether the process will result in a transaction; what the terms, structure, benefits and costs of any transaction will be; or that any transaction that is agreed to will be completed.
We cannot make any assurances about the timing or outcome of the process, including whether the process will result in a transaction; what the terms, structure, benefits and costs of any transaction will be; or that any transaction that is agreed to will be completed.
Our revenues could be negatively impacted by declines in commodity prices for oil, natural gas, and timber, among others. We earn a significant portion of our operating income from the sale of commodities produced from our lands: oil and gas, and timber. Fluctuations in the prices for these commodities will directly impact our cash flow, net income and financial condition.
Oil and gas prices, as well as new technology, will affect the possibility of replacing present production. 5 Our revenues could be negatively impacted by declines in commodity prices for oil, natural gas, and timber, among others. We earn a significant portion of our operating income from the sale of commodities produced from our lands: oil and gas, and timber.
Additionally, our ability to generate future earnings depends on third parties finding new production on our land to replace present production as it is depleted. Oil and gas prices, as well as new technology, will affect the possibility of replacing present production.
Additionally, our ability to generate future earnings depends on third parties finding new production on our land to replace present production as it is depleted.
Additionally, because certain of our lands are leased to farmers, declines in the commodity prices for the crops they grow may impact their ability to make lease payments, and therefore could adversely affect our cash flow, results of operations and financial condition. 4 The COVID-19 pandemic created a global health crisis and an unprecedented disruption of commercial activity around the world, including in Louisiana.
Fluctuations in the prices for these commodities will directly impact our cash flow, net income and financial condition. Additionally, because certain of our lands are leased to farmers, declines in the commodity prices for the crops they grow may impact their ability to make lease payments, and therefore could adversely affect our cash flow, results of operations and financial condition.
The direct and indirect effects of the COVID-19 pandemic are widespread and may evolve, and the effects of similar future disasters are also uncertain. It is possible that the pandemic and similar events, and economic conditions resulting from those events, could affect our business in the future in ways that we do not or cannot now anticipate.
The effects of future significant adverse events and disasters are uncertain. It is possible that such events, and economic conditions resulting from those events, could affect our business in the future in ways that we do not or cannot now anticipate. Our overall business is subject to risks associated with the real estate industry.
Changing laws, regulations and standards relating to corporate governance and public disclosure has created uncertainty for public companies and significantly increased the costs and risks associated with accessing the public markets and public reporting.
The cost of being a publicly traded company is substantial, not only in absolute terms but, more importantly, in relation to the overall scope of the operations of a small company. 6 Changing laws, regulations and standards relating to corporate governance and public disclosure has created uncertainty for public companies and significantly increased the costs and risks associated with accessing the public markets and public reporting.
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Our overall business is subject to risks associated with the real estate industry.
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We are actively working with financial and legal advisors in this strategic alternative review process.
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The cost of being a publicly traded company is substantial, not only in absolute terms but, more importantly, in relation to the overall scope of the operations of a small company.
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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.
Removed
If we are unable to integrate a new asset into our existing business and manage a larger overall company efficiently, the expansion could adversely affect our operations, financial results and prospects, and we might not realize the cost savings and synergies we expected from the expansion.
Added
The Board has formed a subcommittee to provide oversight and management of the process. 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.
Added
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.
Added
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.
Added
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.
Added
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.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeThe Louisiana parish location for these 100% owned lands is presented below: Parish Acres Segment(s) Beauregard 2,720 Oil and gas, timber and surface Calcasieu 2,326 Oil and gas, timber and surface Allen 1,121 Oil and gas, timber and surface Jefferson Davis 684 Timber and surface Natchitoches 200 Timber and surface Cameron 162 None Rapides 129 Timber Sabine 50 Timber Total 7,392 For management purposes, the Company classifies the 13,699 net acres owned by CKX as follows: 10,357 net acres are timber lands, 2,253 net acres are agriculture lands, 895 net acres are marsh lands, and 194 net acres are located in metropolitan areas. 7
Biggest changeThe Louisiana parish location for these 100% owned lands is presented below: Parish Acres Segment(s) Beauregard 2,720 Oil and gas, timber and surface Calcasieu 2,301 Oil and gas, timber and surface Allen 1,121 Oil and gas, timber and surface Jefferson Davis 684 Timber and surface Natchitoches 200 Timber and surface Cameron 162 None Rapides 129 Timber Sabine 50 Timber Total 7,367 For management purposes, the Company classifies the 13,674 net acres owned by CKX as follows: 10,357 net acres are timber lands, 2,228 net acres are agriculture lands, 895 net acres are marsh lands, and 194 net acres are located in metropolitan areas.
ITEM 2. PROPERTIES The Company owns approximately 13,699 net acres all located in Louisiana. The approximate gross and net acres located in each Louisiana parish are presented below.
ITEM 2. PROPERTIES The Company owns approximately 13,674 net acres all located in Louisiana. The approximate gross and net acres located in each Louisiana parish are presented below.
Parish Gross Acres Net Acres Segment(s) Calcasieu 15,761 4,660 Oil and gas, timber and surface Jefferson Davis 9,759 2,330 Oil and gas, timber and surface Allen 7,988 2,428 Oil and gas, timber and surface Beauregard 7,323 3,554 Oil and gas, timber and surface Cameron 1,248 274 Oil and gas, surface LaFourche 240 40 Oil and gas Natchitoches 200 200 Timber Vermilion 180 30 Oil and gas, surface Rapides 129 129 Timber St.
Parish Gross Acres Net Acres Segment(s) Calcasieu 15,736 4,635 Oil and gas, timber and surface Jefferson Davis 9,759 2,330 Oil and gas, timber and surface Allen 7,988 2,428 Oil and gas, timber and surface Beauregard 7,323 3,554 Oil and gas, timber and surface Cameron 1,248 274 Oil and gas, surface LaFourche 240 40 Oil and gas Natchitoches 200 200 Timber Vermilion 180 30 Oil and gas, surface Rapides 129 129 Timber St.
Landry 42 4 Timber Sabine 50 50 Timber Total 42,920 13,699 Included in the 13,699 net acres presented above, are approximately 7,392 acres owned 100% by the Company.
Landry 42 4 Timber Sabine 50 50 Timber Total 42,895 13,674 8 Included in the 13,674 net acres presented above, are approximately 7,367 acres owned 100% by the Company.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeThe Company was not involved in any legal proceedings as of December 31, 2023. ITEM 4. MINE SAFETY DISCLOSURES Not applicable. PART II
Biggest changeThe Company was not involved in any legal proceedings as of December 31, 2024. ITEM 4. MINE SAFETY DISCLOSURES Not applicable. PART II

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeItem 4. Mine Safety Disclosure 8 PART II Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 8 Item 6. [Reserved] 9 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 9 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 13 Item 8.
Biggest changeItem 4. Mine Safety Disclosure 9 PART II Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 9 Item 6. [Reserved] 10 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 10 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 14 Item 8.
Financial Statements and Supplementary Data 13 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 13 Item 9A. Controls and Procedures 14 Item 9B. Other Information 15
Financial Statements and Supplementary Data 14 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 14 Item 9A. Controls and Procedures 15 Item 9B. Other Information 16

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThere were no sales of unregistered securities of the Company and no purchases of CKX equity securities by the Company during 2023 (other than shares that were withheld by the Company to satisfy tax withholding obligations of stock plan participants incurred upon the vesting of stock awards). Holders On March 18, 2024, we had 273 stockholders of record.
Biggest changeThere were no sales of unregistered securities of the Company and no purchases of CKX equity securities by the Company during 2024 (other than shares that were withheld by the Company to satisfy tax withholding obligations of stock plan participants incurred upon the vesting of stock awards).
Pursuant to a dividend reversion clause in the Company’s Articles of Incorporation, dividends not claimed within one year after a dividend becomes payable will expire and revert in full ownership to the Company and the Company’s obligation to pay such dividend will cease. During 2023 and 2022, the Company received no dividend reversions.
Pursuant to a dividend reversion clause in the Company’s Articles of Incorporation, dividends not claimed within one year after a dividend becomes payable will expire and revert in full ownership to the Company and the Company’s obligation to pay such dividend will cease. During 2024 and 2023, the Company received no dividend reversions.
ITEM 5. MARKET FOR THE REGISTRANT ’ S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES The Company’s common stock trades on the NYSE American under the trading symbol CKX. Common Stock As of March 18, 2024, there were 1,991,337 shares outstanding.
ITEM 5. MARKET FOR THE REGISTRANT ’ S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES The Company’s common stock trades on the NYSE American under the trading symbol CKX. Common Stock As of March 25, 2025, there were 2,027,032 shares outstanding.
The Company does not have a share repurchase program. 8 Dividend Policy The Company does not currently pay dividends on a regular basis. In determining whether to declare a dividend, the Board of Directors takes into account the Company’s prior fiscal year’s cash flows from operations and the current economic conditions among other information deemed relevant.
Holders On March 25, 2025, we had 265 stockholders of record. 9 Dividend Policy The Company does not currently pay dividends on a regular basis. In determining whether to declare a dividend, the Board of Directors takes into account the Company’s prior fiscal year’s cash flows from operations and the current economic conditions among other information deemed relevant.
Removed
Issuer Purchases of Equity Securities During the fourth quarter of fiscal year 2023, the Company repurchased shares of its common stock as follows: Period (a) Total Number of Shares Purchased(1) (b) Average Price Paid per Share (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (d) Maximum Number (or Approximate Dollar Value) of Shares that May yet Be Purchased under the Plans or Programs Oct. 1 – Oct. 31, 2023 – – Nov. 1 – Nov. 30, 2023 – – Dec. 1 – Dec. 31, 2023 8,672 $ 10.05 – – Total – – (1) All purchases were made pursuant to the Company’s 2021 Stock Incentive Plan under which shares were withheld to satisfy tax withholding obligations.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeAs of the date of this report one sale was pending, and the Company is actively marketing the remaining lots. The Company is working to identify additional undeveloped acres owned by the Company in Southwest Louisiana that would likewise be suitable for residential subdivisions.
Biggest changeThe Company is working to identify additional undeveloped acres owned by the Company in Southwest Louisiana that would likewise be suitable for residential subdivisions. 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.
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.
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 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 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.
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, 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.
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. Surface Surface revenues were 64% and 26% of total revenues for 2023 and 2022, respectively.
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. Surface Surface revenues were 71% and 64% of total revenues for 2024 and 2023, respectively.
These variances are due to the normal variations in year to year costs, which correlate directly with variations in revenues. 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.
These variances are due to the normal variations in year to year costs, which correlate directly with variations in revenues. 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.
These revenues are dependent on oil and gas producers’ activities, are not predictable and can vary significantly from year to year. Timber 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.
These revenues are dependent on oil and gas producers’ activities, are not predictable and can vary significantly from year to year. Timber 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.
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. Costs and Expenses Oil and gas costs decreased for the year ended December 31, 2023 as compared to 2022 by $8,635.
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. Costs and Expenses Oil and gas costs increased for the year ended December 31, 2024 as compared to 2023 by $4,759.
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. Gain on Sale of Land and Equipment Gain on sale of land was $149,992 and $18,972 for the years ended December 31, 2023 and 2022, respectively.
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. Gain on Sale of Land and Equipment Gain on sale of land was $85,636 and $149,992 for the years ended December 31, 2024 and 2023, respectively.
Results of Operations - for the years ended December 31, 2023 and 2022 Revenue 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.
Results of Operations - for the years ended December 31, 2024 and 2023 Revenue 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.
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.
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.
The following schedule summarizes barrels and MCF produced and average price per barrel and per MCF for the years ended December 31, 2023 and 2022: Years Ended December 31, 2023 2022 Net oil produced (Bbl)(2) 3,826 4,719 Average oil sales price (per Bbl)(1,2) $ 79.08 $ 96.48 Net gas produced (MCF) 8,976 14,891 Average gas sales price (per MCF)(1) $ 3.57 $ 7.31 (1) Before deduction of production costs and severance taxes (2) Excludes plant products Oil revenues decreased for the year ended December 31, 2023, as compared to 2022, by $152,705.
The following schedule summarizes barrels and MCF produced and average price per barrel and per MCF for the years ended December 31, 2024 and 2023: Years Ended December 31, 2024 2023 Net oil produced (Bbl)(2) 4,558 3,826 Average oil sales price (per Bbl)(1,2) $ 77.84 $ 79.08 Net gas produced (MCF) 20,966 8,976 Average gas sales price (per MCF)(1) $ 3.18 $ 3.57 (1) Before deduction of production costs and severance taxes (2) Excludes plant products Oil revenues increased for the year ended December 31, 2024, as compared to 2023, by $52,249.
Summary of Fiscal Year 2023 Results 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.
Summary of Fiscal Year 2024 Results 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.
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.
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. CKX has small royalty interests in 20 different producing oil and gas fields.
Field Bbl Oil MCF Gas Bon Air 617 5,726 South Bear Head Creek 1,137 759 Reeves 663 4,893 Cowards Gully 715 - Gonzales County 637 208 Castor Creek 452 - South Lake Charles 202 2,175 Lake Arthur 116 1,446 The following eight fields produced 94.31% of the Company’s oil and gas revenues in 2022.
Field Bbl Oil MCF Gas Bon Air 617 5,726 South Bear Head Creek 1,137 759 Reeves 663 4,893 Cowards Gully 715 - Gonzales County 637 208 Castor Creek 452 - South Lake Charles 202 2,175 Lake Arthur 116 1,446 Lease and geophysical revenues decreased for the year ended December 31, 2024, as compared to 2023, by $49,686.
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.
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.
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.
The Company will consider purchases outside of southwest Louisiana and will consider developing its properties for commercial or residential purposes. 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 decrease in gas revenues was due to a decrease in the average price per MCF and a decrease in net gas produced. The following eight fields produced 96.70% of the Company’s oil and gas revenues in 2023. The following table shows the number of barrels of oil (Bbl Oil) and MCF of gas (MCF Gas) produced from these fields.
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.
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.
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.
The Company actively searches for additional real estate for purchase in Louisiana with a focus on southwest Louisiana and on timberland and agricultural land. When evaluating unimproved real estate for purchase, the Company will consider numerous characteristics including but not limited to, timber fitness, agriculture fitness, future development opportunities and/or mineral potential.
When evaluating unimproved real estate for purchase, the Company will consider numerous characteristics including but not limited to, timber fitness, agriculture fitness, future development opportunities and/or mineral potential. When evaluating improved real estate for purchase, the Company will consider characteristics including, but not limited to, geographic location, quality of existing revenue streams, and/or quality of the improvements.
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.
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.
CKX has small royalty interests in 20 different producing oil and gas fields. The size of each royalty interest is determined by the Company’s net ownership in the acreage unit for the well. CKX’s royalty interests range from 0.0045% for the smallest to 7.62% for the largest.
The size of each royalty interest is determined by the Company’s net ownership in the acreage unit for the well. CKX’s royalty interests range from 0.0045% for the smallest to 7.62% for the largest. As the Company does not own or operate the wells, it does not have access to any reserve information.
Outlook for Fiscal Year 2024 The Company will continue to consider and evaluate commercial, agricultural and timber lands, and other business opportunities for acquisitions and to evaluate its current holdings for divestiture. The Company will consider purchases outside of southwest Louisiana and will consider developing its properties for commercial or residential purposes.
For the years ended December 31, 2024 and 2023, this consisted of a gain on sale of one parcel of land. Outlook for Fiscal Year 2025 The Company will continue to consider and evaluate commercial, agricultural and timber lands, and other business opportunities for acquisitions and to evaluate its current holdings for divestiture.
As the Company does not own or operate the wells, it does not have access to any reserve information. Eventually, the oil and gas reserves under the Company’s current land holdings will be depleted. Timber income is derived from sales of timber on Company lands.
Eventually, the oil and gas reserves under the Company’s current land holdings will be depleted. Timber income is derived from sales of timber on Company lands. The Company’s timber income will fluctuate depending on our ability to secure stumpage agreements in the regional markets, timber stand age, and/or stumpage commodity prices.
Non-recurring surface income can include such activities as pipeline right of ways, and temporary worksite rentals. In managing its lands, the Company relies on and has established relationships with real estate, forestry, environmental and agriculture consultants as well as attorneys with legal expertise in general corporate matters, real estate, and minerals.
In managing its lands, the Company relies on and has established relationships with real estate, forestry, environmental and agriculture consultants as well as attorneys with legal expertise in general corporate matters, real estate, and minerals. 10 The Company actively searches for additional real estate for purchase in Louisiana with a focus on southwest Louisiana and on timberland and agricultural land.
A breakdown of oil and gas revenues for the years ended December 31, 2023, as compared to 2022 are as follows: Years Ended December 31, 2023 2022 Change from Prior Year Percent Change from Prior Year Oil $ 302,572 $ 455,277 $ (152,705 ) (33.5 )% Gas 32,043 108,852 (76,809 ) (70.6 )% Lease and geophysical 46,039 32,626 13,413 41.1 % Total revenues $ 380,654 $ 596,755 $ (216,101 ) (36.2 )% CKX received oil and/or gas revenues from 72 and 95 wells during the years ended December 31, 2023 and 2022, respectively.
A breakdown of oil and gas revenues for the years ended December 31, 2024, as compared to 2023 are as follows: Years Ended December 31, 2024 2023 Change from Prior Year Percent Change from Prior Year Oil $ 354,821 $ 302,572 $ 52,249 17.3 % Gas 66,672 32,043 34,629 108.1 % Lease and geophysical (3,647 ) 46,039 (49,686 ) (107.9 )% Total revenues $ 417,846 $ 380,654 $ 37,192 9.8 % CKX received oil and/or gas revenues from 72 wells during the years ended December 31, 2024 and 2023.
Components of revenues for the year ended December 31, 2023 as compared to 2022, are as follows: Years Ended December 31, 2023 2022 Change from Prior Year Percent Change from Prior Year Revenues: Oil and gas $ 380,654 $ 596,755 $ (216,101 ) (36.2 )% Timber sales 154,147 219,974 (65,827 ) (29.9 )% Surface revenue 950,804 288,765 662,039 229.3 % Total revenues $ 1,485,605 $ 1,105,494 $ 380,111 34.4 % 10 Oil and Gas Oil and gas revenues were 26% and 54% of total revenues for 2023 and 2022, respectively.
Components of revenues for the year ended December 31, 2024 as compared to 2023, are as follows: Years Ended December 31, 2024 2023 Change from Prior Year Percent Change from Prior Year Revenues: Oil and gas $ 417,846 $ 380,654 $ 37,192 9.8 % Timber sales 22,225 154,147 (131,922 ) (85.6 )% Surface revenue 1,081,053 950,804 130,249 13.7 % Total revenues $ 1,521,124 $ 1,485,605 $ 35,519 2.4 % 11 Oil and Gas Oil and gas revenues were 27% and 26% of total revenues for 2024 and 2023, respectively.
Liquidity and Capital Resources Sources of Liquidity The Company’s current assets totaled $9,388,882 and current liabilities equaled $495,348 at December 31, 2023. 12 As of December 31, 2023, and 2022, the Company had no outstanding debt. In the opinion of management, cash and cash equivalents are adequate for projected operations and possible land acquisitions.
The Company believes direct land management and continuing economic activity in southwest Louisiana may be a catalyst for increased surface revenue. Liquidity and Capital Resources Sources of Liquidity The Company’s current assets totaled $9,579,388 and current liabilities equaled $264,183 at December 31, 2024. 13 As of December 31, 2024, and 2023, the Company had no outstanding debt.
Analysis of Cash Flows 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.
Analysis of Cash Flows 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.
The Company’s timber income will fluctuate depending on our ability to secure stumpage agreements in the regional markets, timber stand age, and/or stumpage commodity prices. Timber is a renewable resource that the Company actively manages. Surface income is earned from various recurring and non-recurring sources. Recurring surface income is earned from lease arrangements for farming, recreational and commercial uses.
Timber is a renewable resource that the Company actively manages. Surface income is earned from various recurring and non-recurring sources. Recurring surface income is earned from lease arrangements for farming, recreational and commercial uses. Non-recurring surface income can include such activities as pipeline right of ways, and temporary worksite rentals.
When evaluating improved real estate for purchase, the Company will consider characteristics including, but not limited to, geographic location, quality of existing revenue streams, and/or quality of the improvements. 9 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.
In the opinion of management, cash and cash equivalents are adequate for projected operations and possible land acquisitions. 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.
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.
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.
Removed
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.
Added
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.
Removed
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.
Added
The Board has formed a subcommittee to provide oversight and management of the process. 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.
Removed
Field Bbl Oil MCF Gas South Bear Head Creek 2,139 948 Reeves 608 354 Gonzales County 830 290 Castor Creek 406 - Cowards Gully 1,257 - South Lake Charles 209 2,239 Lake Arthur 106 2,186 South Elton 50 4,323 11 Lease and geophysical revenues increased for the year ended December 31, 2023, as compared to 2022, by $13,413.
Added
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.
Removed
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.
Added
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.
Removed
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.
Added
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.
Removed
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. Net cash used in investing activities was $391,315 and $498,765 for the years ended December 31, 2023 and 2022, respectively.
Added
Field Bbl Oil MCF Gas Bon Air 1,762 18,631 South Bear Head Creek 1,476 129 Cowards Gully 644 - Gonzales County 615 174 Castor Creek 266 - South Lake Charles 189 2,185 Lake Arthur 1,034 1,689 North Indian Village 1,623 - 12 The following eight fields produced 96.70% of the Company’s oil and gas revenues in 2023.
Removed
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.
Added
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.

Other CKX 10-K year-over-year comparisons