Reserve Petroleum Company reported significant financial performance improvements for the three and nine months ended September 30, 2024, compared to the same periods in 2023.

Operating revenues for the third quarter of 2024 reached $4.17 million, a 26.3% increase from $3.30 million in Q3 2023. Oil and gas sales contributed $3.87 million, up from $3.01 million, driven by increased sales volumes and higher average prices. For the nine-month period, total operating revenues rose to $11.68 million, a 26.7% increase from $9.22 million in the prior year. Oil sales for the nine months increased by 24% to $8.74 million, while natural gas sales rose by 20% to $1.72 million.

Net income for the third quarter of 2024 was $1.76 million, a substantial increase of 182% from $624,904 in Q3 2023. For the nine months, net income reached $3.55 million, up 133% from $1.52 million in the same period last year. The net income attributable to common stockholders for the nine months was $3.55 million, translating to a basic earnings per share of $22.96, compared to $9.77 in 2023.

The company’s total assets increased to $38.46 million as of September 30, 2024, from $36.39 million at the end of 2023. Current assets decreased to $10.63 million, primarily due to a reduction in cash and cash equivalents, which fell to $3.73 million from $5.22 million. However, equity securities saw a significant increase, rising to $4.19 million from $2.66 million, attributed to net purchases and market value increases.

Total liabilities increased slightly to $5.87 million from $5.64 million, with long-term liabilities rising to $5.61 million. Total equity applicable to Reserve Petroleum Company increased to $32.38 million from $30.55 million, reflecting retained earnings growth.

Strategically, the company faced challenges with the deconsolidation of TWS South, resulting in a loss of $296,717. Additionally, the company recorded impairment losses on certain investments, totaling $318,894 for the nine months ended September 30, 2024. Despite these challenges, the company’s operational efficiency improved, with operating costs decreasing by 2% to $8.04 million for the nine months, alongside a notable reduction in exploration and water well drilling costs.

Overall, Reserve Petroleum Company demonstrated robust growth in revenues and profitability, alongside strategic adjustments to its asset management and operational focus.