Thu, May 15, 6:56 PM (32 days ago)
**The Reserve Petroleum Company (RPRC)** reported strong financial health and performance for the quarter ended March 31, 2025. Here are the key points: **Revenue and Profit Margins:** - Total operating revenues increased by 19% to $4,308,115, driven by an 28% increase in oil and natural gas sales to $3,851,465. - Net income surged by 143% to $1,768,085, with earnings per share rising to $11.71 from $4.75 in the prior year. **Cash Flow:** - Net cash provided by operating activities increased by 19% to $1,906,890. - Cash and cash equivalents grew by 33% to $5,234,110. **Earnings Changes:** - Operating costs and expenses decreased by 17% to $2,239,671, despite a 9% increase in production costs. - Depreciation, depletion, amortization, and valuation provision increased by 78% to $907,878 due to higher production and reserves on new wells. **Quarterly Performance Discussion:** - The company benefited from increased oil and natural gas sales volumes and prices. - The termination of the TWS Agreement with TWS South eliminated water well drilling revenues and expenses. - The company recorded a gain on the sale of unproved, non-producing leasehold. **Trends and Uncertainties:** - The company faces uncertainties related to spot market price fluctuations for oil and natural gas. - Legal proceedings involving TWS South may impact future operations and financial results. - The company's future performance will depend on management's ability to control expenses and generate revenues. **Future Operations Impact:** - The company plans to continue funding business activities using internal sources of cash. - Management is unaware of any additional material trends or uncertainties that would significantly impact liquidity and capital resources. **Ticker:** RPRC