Mon, May 12, 4:07 PM (43 days ago)
**CKX Lands, Inc. (CKX) Q1 2025 Financial Summary** **Company Overview:** CKX Lands, Inc. (CKX) is a Louisiana-based company that generates income from mineral royalties, timber sales, and surface payments from its lands. The company does not engage in oil and gas exploration or well operations, relying instead on third-party operators. **Financial Performance:** **Revenue:** - Total revenue for Q1 2025 was $348,184, a 145.5% increase from Q1 2024. - Oil and gas revenue increased by 225.5% to $268,508, driven by higher gas prices and increased production. - Timber revenue was $0 in Q1 2025, down from $2,275 in Q1 2024 due to normal business variations. - Surface revenue increased by 39.6% to $79,676, driven by higher farm rental and surface lease income. **Profit Margins:** - Net income for Q1 2025 was $115,573, a significant improvement from a net loss of $401,329 in Q1 2024. - The improvement was driven by higher revenues and a decrease in general and administrative expenses. **Cash Flow:** - Net cash provided by operating activities was $118,664 in Q1 2025, compared to a use of $337,838 in Q1 2024. - Net cash provided by investing activities was $172,243 in Q1 2025, up from $34,485 in Q1 2024, primarily due to purchases and maturities of certificates of deposit. **Liquidity and Capital Resources:** - As of March 31, 2025, CKX had $9,751,251 in current assets and $259,796 in current liabilities. - The company had no outstanding debt and adequate cash for projected operations and potential land acquisitions. **Future Operations and Uncertainties:** - CKX is evaluating strategic alternatives to enhance shareholder value, including potential acquisitions, dispositions, and business combinations. - The company is also exploring the development of additional residential subdivisions on its lands. - CKX's income is subject to fluctuations due to commodity prices, production levels, and market conditions, which are beyond the company's control. **Segment Performance:** - Oil and gas segment revenue increased significantly, driven by higher commodity prices and production. - Timber segment revenue was zero due to normal business variations. - Surface segment revenue increased due to higher farm rental and surface lease income. **Conclusion:** CKX Lands, Inc. demonstrated strong financial performance in Q1 2025, with significant increases in revenue and net income compared to the same period in 2024. The company's strategic initiatives and evaluation of growth opportunities position it for potential future growth. However, CKX's income remains subject to external market factors and uncertainties.