CKX Lands, Inc. reported its financial results for the three and nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, total revenue decreased to $171,269,000, down approximately 33.9% from $259,031,000 in the same period in 2023. This decline was primarily attributed to a decrease in timber revenue, which fell to $18,883,000 from $118,365,000, due to normal business variations in timber harvesting. However, oil and gas revenue increased by 53.0% to $73,340,000, up from $47,924,000, representing 43% of total revenues compared to 19% in the prior year. The company received oil and gas revenues from 64 wells, an increase from 58 wells in Q3 2023.

Net income for the three months ended September 30, 2024, rose to $54,116,000, compared to $35,732,000 in the same period in 2023, resulting in a net income per share of $0.03, up from $0.02. For the nine months ended September 30, 2024, net income was $218,065,000, a significant turnaround from a net loss of $(98,679,000) in the same period in 2023.

Total revenues for the nine months ended September 30, 2024, increased by approximately 68.6% to $1,340,550,000, compared to $795,173,000 in 2023. Oil and gas revenues for this period rose to $316,986,000, an increase of 59.7% from $198,480,000, driven by higher net production and an increase in average oil sales prices. Surface revenues also saw a substantial increase of 115.3%, totaling $1,002,406,000, attributed to new natural gas pipeline right-of-way agreements.

The company’s cash and cash equivalents decreased to $3,318,637 as of September 30, 2024, down from $7,546,689 at the end of 2023. In contrast, certificates of deposit increased significantly to $5,869,471 from $1,525,173. Total current liabilities decreased to $174,134 from $495,348, while total stockholders' equity rose to $18,550,895 from $18,318,058.

Strategically, CKX Lands initiated a formal process in August 2023 to evaluate alternatives to enhance shareholder value, receiving preliminary indications of interest for potential acquisitions. The company is also actively developing ranchette-style subdivisions in Louisiana, having sold 22 of 39 lots as of September 30, 2024.

Overall, CKX Lands, Inc. demonstrated a strong recovery in profitability and revenue growth in its oil and gas segment, despite challenges in timber revenue and a decrease in total revenue for the latest quarter.