<DOCUMENT>
<TYPE>EX-21
<SEQUENCE>3
<FILENAME>d02142exv21.txt
<DESCRIPTION>SUBSIDIARIES OF THE REGISTRANT
<TEXT>
<PAGE>

                                                                      EXHIBIT 21

                    SUBSIDIARIES OF PANHANDLE ROYALTY COMPANY
                              AT SEPTEMBER 30, 2002

       The following table sets forth certain information with respect to
                             Panhandle's subsidiary:

                                   CORPORATION

                                WOOD OIL COMPANY

  Wood Oil Company was incorporated in Oklahoma and is included in Panhandle's
   consolidated financial statements. Effective October 1, 2001, 100% of Wood
                 Oil Company's outstanding stock was acquired by
                                   Panhandle.


                                       49

</TEXT>
</DOCUMENT>