UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-KSB

x ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2005

¨ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

Commission file Number 0-9669

CKX LANDS, INC.

(Exact Name of registrant as specified in its charter)

Louisiana	72-0144530
(State of other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

One Lakeside Plaza, Lake Charles, Louisiana	70601
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (337) 310-0547

Securities registered pursuant to Section 12(b) of the Act:

Common Stock with no par value	American Stock Exchange
(Title of each class)	(Name of exchange on which registered)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-KSB.  ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes  ¨    No  x

Transitional Small Business Disclosure Format    Yes  ¨    No  x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes  ¨    No  x

As of December 31, 2005, the aggregate market value of the common equity held by non-affiliates (based on the closing price on the American Stock Exchange on December 30, 2005) was approximately $17,118,000.

The dollar amount of revenues for fiscal year ended December 31, 2005, was $2,650,040.

Indicate the number of shares outstanding of each of the registrant’s classes of common stock as of the latest practicable date. Common Stock, No Par Value, 1,942,495 shares outstanding at March 9, 2006.

Documents Incorporated by Reference

Portions of the Registrant’s definitive Proxy Statement prepared in connection with the 2006 Annual Meeting of Stockholders are incorporated by reference into Part III, Items 9, 10, 11, 12 and 14 of this Annual Report on Form 10-KSB.

PART I

Item 1. BUSINESS

General Description

CKX Lands, Inc. is a Louisiana corporation organized in 1930 as Calcasieu Real Estate & Oil Co., Inc., to receive non-producing mineral royalties spun off by a Southwest Louisiana bank. Over the years as some of the royalties yielded oil and gas income the Company used the proceeds to purchase land. On May 17, 2005, the Company changed its name from Calcasieu Real Estate & Oil Co., Inc. to CKX Lands, Inc. The primary reason for the change was to help make clear that the Company is not directly involved in oil and gas exploration or operations. As used herein, The “Company” or “CKX” refers to CKX Lands, Inc.

The Company’s shares are listed on the American Stock Exchange, under the symbol CKX. As of March 9, 2006, there were 1,942,495 shares outstanding. The Company has revenues less than $25,000,000 and its public float in 2005 was less than $25,000,000, consequently the Company is a small business issuer under the Securities Exchange Commission regulations.

As a reporting company, CKX is subject to the informational requirements of the Securities Exchange Act of 1934 (the “Exchange Act”) and accordingly files its annual report on Form 10-KSB, quarterly reports on 10-QSB, current reports on Form 8-K, proxy statements and other information with the Securities and Exchange Commission (the “SEC”). The public may read and copy any materials filed with the SEC at the SEC’s Public Reference Room at 450 Fifth Street NW, Washington, DC 20549. Please call the SEC at (800) SEC-0330 for further information on the Public Reference Room. As an electronic filer, CKX’s public filings are maintained on the SEC’s Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC. The address of that website is http://www.sec.gov.

The Company owns land and mineral interests, all of which are located in Southwest Louisiana. The Company collects income from this land in the form of oil and gas royalties, agriculture rentals and timber sales. The Company is not involved in the exploration or production of oil and gas nor does it actively farm its lands. These activities are performed by others for royalties or rentals. Part of the Company’s lands are owned in indivision with other owners. The Company’s ownership share in most of this acreage is one-sixth. For convenience the owners jointly operate an entity known as Walker Louisiana Properties to manage this acreage. Neither the Company nor Walker Louisiana Properties consider themselves to be in oil and gas producing activities inasmuch as: (1) they do not search for crude oil or natural gas in their natural states; (2) they do not acquire property for the purpose of exploration or the removing of oil and gas; and (3) they are not involved in construction, drilling and production activities necessary to retrieve oil and gas.

Oil and gas royalties are paid by the operators who own the wells. Timber income is paid by the highest bidder of the timber. There are several mills in the immediate area who compete for timber. All of the agriculture income comes from tenants who pay annual cash rents. The prices paid for oil, gas and timber depend on national and international market conditions. Oil and gas operations produced 91% of the Company’s revenues in 2005 and 84.3% in 2004.

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The source of all raw materials for the Company is the land itself. Timber income and agriculture income are renewable resources. All oil and gas income will eventually deplete but we have no access to this data.

The Company does not spend any money on Research and Development.

The Company does not need government approval of its principal products or services except that the State of Louisiana must approve all oil and gas producing units as to size and location.

Employees

The Company has four employees, all of whom are part-time. They are the three officers and one clerical person. The Company is subject to no union contracts nor does the Company have any hospitalization, pension, profit sharing, option or deferred compensation programs. Walker Louisiana Properties has five full-time employees and the Company pays one-sixth of their payroll costs. One employee of Walker is devoted full-time to agriculture and one employee of Walker is devoted full-time to timber.

Customers

The Company’s customers are those who have mineral leases on the Company’s property or purchase the timber in competitive bids or execute farming leases. The largest customers are the oil and gas operators under the mineral leases. The Company received 21.6% of revenues from Unit Petroleum Co. for royalties from the Castor Creek Field and 21.5% of revenues from Cox & Perkins for royalties from the South Gordon Field. Termination of production from either field would have a material adverse effect on the Company.

Environmental and Other Governmental Regulations

The operators of the wells are responsible for complying with environmental and other governmental regulations. However, should an operator abandon a well located on Company land, without following prescribed procedure, the land owners could possibly be held responsible. The Company does not believe this would have a material effect on its financial condition.

Item 2. PROPERTIES

The Company owns a total of 13,889 net acres in the Parishes of Allen, Beauregard, Calcasieu, Cameron, Jefferson Davis, LaFourche, Sabine, St. Landry and Vermilion in Louisiana. Most of the acreage is in Southwest Louisiana within 65 miles of the City of Lake Charles. Much of this land is owned in indivision. Ownership is as follows:

100% Ownership	7,053 acres
40% Ownership of 1,748 acres with Walker Louisiana Properties	648 acres
50% Ownership of 440 acres with Prairie Land Company	220 acres
16.667% Ownership of 35,621 acres comprising Walker Louisiana Properties	5,937 acres

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In addition the Company owns mineral and royalty interests in net 471 acres of 5,955 gross acres of land owned by others. Under Louisiana law these minerals will prescribe if ten years pass without mineral activity. Of these acres there are 122 net acres currently producing.

Of the total net 13,889 acres owned by CKX, timberland comprises 6,371 acres, 6,528 acres are agricultural land, 741 acres are marsh land and 249 acres represents the Company’s one-sixth interest in property contiguous to the city limits of Lake Charles which is future subdivision land.

The table below shows, for the years ended December 31, 2005, and December 31, 2004, the Company’s net gas produced in thousands of cubit feet (MCF) and net oil produced in barrels (Bbl) and average sales prices relating to oil and gas attributable to the royalty interests of the Company.

	Year Ended 12/31/05		Year Ended 12/31/04
Net gas produced (MCF)		151,764		138,426
Average gas sales price (per MCF) 1	$	7.93	$	6.83
Net oil produced (Bbl) 2		15,337		27,601
Average oil sales price (per Bbl) 1	$	52.67	$	40.32

1. Before deduction of production and severance taxes.

2. Excludes plant products.

Item 3. LEGAL PROCEEDINGS

The Company owns a 5.56% undivided interest in 104 acres in Calcasieu Parish and a co-owner has sued for partition. This action is beneficial to the Company. With this exception the Company was not involved in any legal proceedings as of December 31, 2005.

Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

There were no matters submitted to a vote of security holders during the three months ended December 31, 2005.

PART II

Item 5. MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND SMALL BUSINESS ISSUER PURCHASES OF EQUITY SECURITIES

The Company’s Common Stock is traded on the American Stock Exchange under the trading symbol CKX since its listing on December 8, 2003. Prior to the listing there was no established public trading market for the Common Stock and there had been only limited and sporadic trading in the Common Stock, principally among its shareholders. On March 9, 2006, there were approximately 630 stockholders of record. The Company believes that there are approximately 675 beneficial owners of its Common Stock. There were no sales of unregistered securities of the Company and no purchases of equity securities of the Company during 2005 by the Company. The following table sets forth the high and low sales prices reported on the American Stock Exchange for the Common Stock by quarter during 2005 and 2004.

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	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Common stock price per share 2005
high	$	20.30	$	16.50	$	16.90	$	12.50
low	$	9.30	$	11.11	$	11.75	$	8.90
Common stock price per share 2004
high	$	9.25	$	10.00	$	8.50	$	10.20
low	$	7.20	$	8.00	$	8.00	$	8.00

The Company has paid cash dividends since 1990. The Company is currently paying a quarterly dividend of 7¢ per share and intends to maintain quarterly dividends. In addition the Company paid a special extra dividend of 10¢ per share to shareholders of record March 31, 2005, and declared another special extra dividend of 10¢ per share payable to shareholders of record March 27, 2006. A summary of cash dividends is set forth in the table on page 37 of this Annual Report on Form 10-KSB

Item 6. MANAGEMENT’S DISCUSSION AND ANALYSIS

Overview

CKX Lands, Inc. began operations in 1930 under the name Calcasieu Real Estate & Oil Co., Inc. It was originally organized as a spin-off by a bank operating in Southwest Louisiana. The purpose of the spin-off was to form an entity to hold non-producing minerals which regulatory authorities required the bank to charge off. Over the years as some of the mineral interests began producing the Company used part of the proceeds to acquire land. In 1990 the Company made its largest acquisition when it was one of four purchasers who bought American Airline’s fifty percent undivided interest in approximately 35,000 acres in Southwest Louisiana.

Today most of the Company’s income is derived from mineral production on the land acquired over the years. CKX receives income from seismic permits, mineral leases and the landowner’s portion of any oil and gas production. CKX also receives income from agriculture rents and timber sales. The Company’s activities are passive in that it doesn’t explore for oil and gas, operate wells or farm land. All timber activities are contracted. The Company doesn’t plant or harvest trees, except through contractors.

The Company’s income fluctuates as new oil and gas production is discovered on Company land and as the wells deplete. Oil and gas activity has increased considerably over prior years due to higher prices but also due to technology developments, particularly 3-D seismic. With new technology, companies are able to find much smaller pockets of oil and gas as well as drill with a much higher success rate. Most of these discoveries are small, however, and have a limited life.

CKX has small interests in 43 different oil and gas fields. The size of the interest is determined by the Company’s net ownership in the acreage unit for the well. CKX’s interests range from .0033% for the smallest to 4.166% for the largest. As the Company doesn’t own or operate the wells it doesn’t have access to any reserve information.

Eventually, the oil and gas under the Company’s current land holdings will be depleted. The Company is constantly looking for additional land to be purchased in our immediate area. We are primarily looking for timberland that has mineral potential.

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Results of Operations

Calendar 2005 Compared to Calendar 2004

Revenues for 2005 were $2,650,040, a decrease of 2.58% compared with revenues of $2,720,257 reported for 2004. All of the decrease was attributable to lower agriculture and timber revenues. Agriculture income decreased $24,468 or 14.05%. This was due to lower right of way income in the amount of $38,668.

Timber revenues decreased $164,387 or 64.87% due primarily to Hurricane Rita. We normally schedule timber sales in the third and fourth calendar quarters. Hurricane Rita on September 23, 2005, not only interrupted timber negotiations, it, along with Hurricane Katrina, adversely affected timber prices. There was a glut of timber on the market since timber on the ground was for sale at cut-rate prices.

Oil and gas revenues increased $118,637 or 5.17%. Of this increase, oil lease income increased $201,498 while oil and gas royalties decreased $82,862. The Company saw much greater leasing activity in 2005 than in prior years.

Net income decreased $15,020 in 2005 from 2004 or 1%. Income before taxes in 2005 was $4,672 or .2% less than in 2004.

Gas production increased 13,338 MCF and the average gas sales price per MCF increased 16.11%. Total gas revenues increased 27.3%. Oil production decreased 44.4% while the average price increased 30.6%. The net effect was a decrease in oil revenue of 27.4%

The following six fields produced 88% of the Company’s oil in 2005 and 78% of the Company’s gas. This schedule shows the changes in production from 2004.

Field	Bbl. Oil		MCF Gas
	2005	2004	2005	2004
South Gordon	7,469	16,477	12,646	28,798
Castor Creek	1,456	2,168	60,171	48,978
South Jennings	431	295	34,203	21,381
Lakeside	336	195	5,837	10,247
Vinton	3,361	6,101
Northwest Vinton	467	603	5,737	5,407

All of the decreases were due to depletion. The increases at South Jennings were due to new wells. Two new wells have been drilled at South Gordon but it is too early to determine their impact on production.

As of December 31, 2005, the Company was a lessor in twenty-eight active mineral leases on twenty-eight separate tracts. The total acreage leased is 2,884. The Company’s net acres leased is 881 acres. The acreage is located in six different parishes.

The only material change in any expense was lower oil and gas severance taxes due to lower production.

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The Company determined that the casualty loss to timber from Hurricane Rita was $303,095. This did not effect the income statement since there was no impairment of assets. The value of the Company’s timber exceeds its book value.

The Company along with the Walker Louisiana Properties co-owners sold 47.34 acres of suburban land in 2005 for $700,000. The Company’s one-sixth share of the gain was $112,486. Most of the income tax on this gain was deferred because the co-owners reinvested $681,600 in the purchase of 703 acres of timberland.

In the 2004 Annual Report we reported that the Calcasieu Parish School Board was considering building a magnet school on property the Company has a one-sixth ownership. This would have opened approximately 1,200 acres to residential development. Local tax payers rejected a tax for construction of the school and the matter is dead for the foreseeable future.

Outlook for Calendar 2006

With twenty-eight active mineral leases there is a good chance that some of these will be drilled and production discovered. As of March 7, 2006, drilling is in progress on three of these leases. Indications are that at least two of these wells will be productive. A third new well was tested on March 3, 2006, and it tested 5.1 million cubic feet of gas and 300 barrels of condensate per day. It is projected that CKX’s royalty interest will be approximately 2.9 percent. The South Gordon Field had the largest decline from 2004 to 2005. A second well was completed in this field in November, 2005, and its production should impede the rate of decline.

Agriculture income is projected to remain stable in 2006. Timber income should increase in 2006 over 2005.

The Company has been advised that Calcasieu Parish will begin construction of an east-west road across the 1,200 acres it co-owns on the south boundary of Lake Charles. The Company owns an undivided one-sixth interest in this property. This road should help open the property up to residential development.

Liquidity and Capital Resources

The Company has no long-term liabilities, contingencies or off balance sheet liabilities. The only material current liability at December 31, 2005, was the dividend on our common stock declared in December and paid in January. Additional sources of liquidity are the Company’s securities available-for-sale and a bank line of credit for $1,000,000.

The are no current plans for capital expenditures. However, the Company is always looking to purchase additional land provided it meets the Company’s criteria.

In the opinion of management, cash flow from operations, investments and the line of credit are adequate for projected operation, possible land purchases and continuation of the regular cash dividend.

Critical Accounting Policies

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of

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assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The most significant accounting estimates inherent in the preparation of our financial statements include the following items:

Our accounts receivable consist of incomes received after year end for royalties produced prior to year end. When there are royalties that have not been received at the time of the preparation of the financial statements for months in the prior year, we estimate the amount to be received based on the last month’s royalties that were received from that particular company. We do not maintain an allowance for doubtful accounts because we can confirm virtually all of our receivables before they are booked as income.

The Company accounts for income taxes in accordance with Statement of Financial Accounting Standards No. 109, “Accounting for Income Taxes (SFAS 109)” which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities.

Reforestation expenses are added to the timber asset account and depleted over seven years. As timber is sold the original cost is amortized based on the volume as compared to the original cost. When we purchase land that portion that represents the timber value is set up as an asset labeled timber.

Forward Looking Statements

Certain matters contained in this report are forward-looking statements including, without limitation, the information contained under the heading “Outlook for Calendar 2006” in Item 6 of this report. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this report. Unless legally required, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Additional information may be obtained by reviewing the information set forth below under “Significant Risk Factors” and information contained in the Company’s reports filed from time to time with the SEC.

Item 6A. QUANTITIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Significant Risk Factors

The Company’s business and operations are subject to certain risks and uncertainties, including:

Reliance Upon Oil and Gas Discoveries

The Company’s most significant risk is its reliance upon others to perform exploration and development for oil and gas on its land. Future income is dependent on others finding new production on the Company’s land to replace present production as it is depleted. Oil and gas prices as well as new technology will affect the possibility of new discoveries.

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Commodity Prices

All of the Company’s operating income comes from the sale of commodities produced from its real estate; oil and gas, forest products, agriculture products. Fluctuations in these commodity prices will directly impact net income. In 2005 average gas prices were 16.1% higher than the average in 2004 and average oil prices were 30.6% higher in 2005 than in 2004. Should average oil and gas prices in 2006 revert to the 2004 averages, net income would decline approximately 18%.

Interest Rate Risks

The Company has no direct exposure to changes in foreign currency exchange rates and minimal direct exposure to interest rates. The Company has an unsecured line of credit with Chase at their prime rate, but the Company hasn’t utilized this line and has no current plans to do so.

Item 7. FINANCIAL STATEMENTS

All financial statements required by Item 310(a) of Regulation S-B are listed in the Table of Contents to Financial Statements and Supplemental Schedules appearing immediately after the signature page of this Form 10-KSB and are included herein by reference.

Item 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

Item 8A. CONTROLS AND PROCEDURES

The Company maintains disclosure controls and procedures that are designated to ensure that information required to be disclosed in the Company’s Securities Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

As of December 31, 2005, an evaluation was performed under the supervision and with the participation of the Company’s management, including the principal executive officer and principal financial officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures. Based on that evaluation, the Company’s management, including the principal executive officer and principal financial officer, concluded that the Company’s disclosure controls and procedures were effective as of December 31, 2005. There have been no changes in the Company’s internal control over financial reporting during the fiscal quarter ended December 31, 2005 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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Item 8B. OTHER INFORMATION

None.

PART III

Item 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT

The information required by Item 9 as to directors, nominees for directors, reports under Section 16 of the Securities Exchange Act of 1934, the Registrant’s audit committee and an audit committee financial expert is included in the Registrant’s definitive proxy statement to be filed pursuant to Section 14(a) of the Securities Exchange Act of 1934 and is incorporated herein by reference.

Executive officers of Registrant are as follows:

Name	Age	Position with Registrant
Arthur Hollins, III	75	President & Director
William D. Blake	73	Vice President, Treasurer, Chief Financial Officer and Director
Charles D. Viccellio	72	Vice President, Secretary and Director

The occupations of such executive officers during the last five years and other principal affiliations are:

Name
Arthur Hollins, III	Director of the Company since 1975; President of the Company since 1979; Mr. Hollins was engaged in various banking positions with First Commerce Corporation prior to 1999.
William D. Blake	Director of the Company since 1966; Secretary-Treasurer of the Company from 1966-1979; Vice-President and Treasurer of the Company since 1979; President of Lacassane Co., Inc. and Howell Industries, Inc.
Charles D. Viccellio	Vice-President and Secretary of the Company since 1997 and Director of the Company since 1996; attorney in the law firm of Stockwell, Sievert, Viccellio, Clements & Shaddock, LLP.

There are no family relationships between any of our directors (except Mrs. Leach and Mrs. Werner are mother and daughter) and executive officers or any arrangement or understanding between any of our executive officers and any other person pursuant to which any executive officer was appointed to his office.

The Company has adopted a Code of Ethics that applies to officers, directors and employees. A copy of the code of ethics will be provided by writing the President at P.O. Box 1864, Lake Charles, Louisiana 70602.

Item 10. EXECUTIVE COMPENSATION

The information required by Item 10 is included in the Registrant’s definitive proxy statement to be filed pursuant to Section 14(a) of the Securities and Exchange Act of 1934 and is incorporated herein by reference.

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Item 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The information required by Item 11 is included in the Registrant’s definitive proxy statement to be filed pursuant to Section 14(a) of the Securities Exchange Act of 1934 and is incorporated herein by reference.

Item 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

The information required by Item 12 is included in the Registrant’s definitive proxy statement to be filed pursuant to Section 14(a) of the Securities and Exchange Act of 1934 and is incorporated herein by reference.

Item 13. EXHIBITS AND REPORTS ON FORM 8-K

List of Exhibits

3.1	Restated/Articles of Incorporation of the Registrant is incorporated by reference to Exhibit (3)-1 to Form 10 filed April 29, 1981.
3.2	Amendment to Articles of Incorporation of the Registrant is incorporated by reference to Exhibit (3.2) to Form 10-K for year ended December 31, 2003.
3.3	By-Laws of the Registrant are incorporated by reference to Exhibit (3.3) to Form 10-K for year ended December 31, 2003.
23.1	Consent of McElroy, Quirk & Burch filed herewith.
31.1	Certification of Arthur Hollins, III, President and Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 filed herewith.
31.2	Certification of William D. Blake, Vice-President and Treasurer and Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 filed herewith.
32.1	Certification of Arthur Hollins, III, President and Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 filed herewith.

Reports on Form 8-K.

On January 13, 2005, we filed a Current Report on Form 8-K containing a press release correcting erroneous information about the Company on the internet.

On March 11, 2005, we filed a Current Report on Form 8-K containing a press release correcting erroneous information about the Company.

On May 16, 2005, we filed a Current Report on Form 8-K containing a press release announcing the change of the Company’s name to CKX Lands, Inc., from Calcasieu Real Estate & Oil Co., Inc.

On August 1, 2005, we filed a Current Report on Form 8-K containing the resignation of Troy Freund from the Board of Directors.

On January 20, 2006, we filed a Current Report announcing the engagement of Director Michael P. Terranova to assist management in accounting matters.

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Item 14. PRINCIPAL ACCOUNTANTS FEES AND SERVICES

The information required by Item 13 is included in the Registrant’s definitive proxy statement to be filed pursuant to Section 14(a) of the Securities and Exchange Act of 1934 and is incorporated herein by reference.

SIGNATURES

Pursuant to the requirement of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on March 9, 2006.

CKX LANDS, INC.
BY:	/s/ William D. Blake
Name:	William D. Blake
Title:	Vice-President & Treasurer,
	Chief Financial Officer and Director

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Pursuant to the requirements of the Securities Act of 1934, this report has been signed below by the following persons in the capacities indicated with regard to CKX Lands, Inc. on March 9, 2006.

/s/ Arthur Hollins, III Arthur Hollins, III	President (Chief Executive Officer and Director)
/s/ William D. Blake William D. Blake	Vice President & Treasurer (Principal Financial Officer and Director)
/s/ Charles D. Viccellio Charles D. Viccellio	Vice President & Secretary, (Director)
/s/ Laura A. Leach Laura A. Leach	Director
/s/ Frank O. Pruitt Frank O. Pruitt	Director
/s/ B. James Reaves, III B. James Reaves, III	Director
/s/ Mary W. Savoy Mary W. Savoy	Director
/s/ Michael P. Terranova Michael P. Terranova	Director
/s/ Mary L. Werner Mary L. Werner	Director

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CKX LANDS, INC.

FINANCIAL REPORT

DECEMBER 31, 2005 AND 2004

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CKX LANDS, INC.

Lake Charles, Louisiana

CONTENTS

	Page
REPORT OF INDEPENDENT AUDITORS ON THE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION	15
FINANCIAL STATEMENTS
Balance sheet	16
Statements of income	17
Statements of changes in stockholders’ equity	18-19
Statements of cash flows	20-21
Notes to financial statements	22-31
SUPPLEMENTARY INFORMATION
Property, plant and equipment	32
Accumulated depreciation, depletion and amortization	33
Quarterly financial data	34
SCHEDULE OMITTED
Schedules, other than those listed above, have been omitted because of the absence of the conditions under which they are required or because the required information is included in the financial statements or notes thereto.

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REPORT OF INDEPENDENT AUDITORS

To the Board of Directors

CKX Lands, Inc.

Lake Charles, Louisiana

We have audited the accompanying balance sheets of CKX Lands, Inc. as of December 31, 2005, and the related statements of income, changes in stockholders’ equity, and cash flows for the years ended December 31, 2005 and 2004. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of CKX Lands, Inc. as of December 31, 2005, and the results of its operations and its cash flows for the years ended December 31, 2005 and 2004, in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on pages 34 through 36 is presented for the purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Lake Charles, Louisiana

March 6, 2006

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CKX LANDS, INC.

BALANCE SHEET

December 31, 2005

ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	920,489
Accounts receivable		381,885
Prepaid expense and other		130,822
Total current assets		1,433,196
SECURITIES AVAILABLE-FOR-SALE		3,282,786
PROPERTY AND EQUIPMENT (less accumulated depreciation, depletion and amortization of $69,757 in 2005)		7,447
Timber (less accumulated depletion of $401,474 in 2005)		444,248
Land		3,998,555
		4,450,250
	$	9,166,232
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Trade payables and accrued expenses	$	29,226
Dividends payable		135,975
Income taxes payable:
Deferred, net		62,984
Total current liabilities		228,185
NONCURRENT LIABILITIES
Deferred income tax payable		166,833
STOCKHOLDERS’ EQUITY
Common stock, no par value; 3,000,000 shares authorized; 2,100,000 shares issued		72,256
Retained earnings		9,042,971
Accumulated other comprehensive income		31,503
		9,146,730
Less cost of treasury stock (2005 157,505 shares)		375,516
		8,771,214
	$	9,166,232

See Notes to Financial Statements.

16

CKX LANDS, INC.

STATEMENTS OF INCOME

Years Ended December 31, 2005 and 2004

	2005		2004
Revenues	$	2,650,040	$	2,720,258
Costs and expenses:
Oil and gas production		138,652		169,068
Agricultural		5,726		5,511
Timber		44,380		28,529
General and administrative		331,699		332,841
Depreciation, depletion and amortization		43,102		38,900
		563,559		574,849
Income from operations		2,086,481		2,145,409
Other income (expense):
Interest income		77,515		59,690
Dividends on stock		27,289		15,871
Realized gain on sale of investments in available-for-sale securities		—		87,458
Gain on sale of assets		112,486		15
		217,290		163,034
Income before income taxes		2,303,771		2,308,443
Federal and state income taxes:
Current		566,725		712,428
Deferred		175,760		19,709
		742,485		732,137
Net income (per common share - 2005 $.80; 2004 $.81)	$	1,561,286	$	1,576,306

See Notes to Financial Statements.

17

CKX LANDS, INC.

STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

Years Ended December 31, 2005 and 2004

	Comprehensive Income			Retained Earnings			Accumulated Other Comprehensive Income			Capital Stock Issued		Treasury Stock
Balance, January 1, 2004	$	—		$	7,169,864		$	55,905		$	72,256	$	375,516
Comprehensive income:
Net income		1,576,306			1,576,306			—			—		—
Other comprehensive income:
Unrealized gains on securities available for sale:
Unrealized holding gains occurring during period net of taxes of $31,567		47,351			—			—			—		—
Less reclassification adjustments for gains included in net income, net of taxes of $34,983		(52,475	)		—			—			—		—
Other comprehensive income, net of tax		(5,124	)		—			(5,124	)		—		—
Total comprehensive income	$	1,571,182
Purchase of treasury stock					—			—			—		—
Dividends					(525,668	)		—			—		—
Balance, December 31, 2004					8,220,502			50,781			72,256		375,516

(continued on next page)

18

CKX LANDS, INC.

STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

Years Ended December 31, 2005 and 2004

(Continued)

	Comprehensive Income			Retained Earnings			Accumulated Other Comprehensive Income			Capital Stock Issued		Treasury Stock
Balance, January 1, 2005					8,220,502			50,781			72,256		375,516
Comprehensive income:
Net income	$	1,561,286			1,561,286			—			—		—
Other comprehensive income:
Unrealized gains on securities available for sale:
Unrealized holding (losses) occurring during period net of taxes of $12,863		(19,278	)		—			—			—		—
Other comprehensive income, net of tax		(19,278	)		—			(19,278	)		—		—
Total comprehensive income	$	1,542,008
Dividends					(738,817	)		—			—		—
Balance, December 31, 2005				$	9,042,971		$	31,503		$	72,256	$	375,516

See Notes to Financial Statements.

19

CKX LANDS, INC.

STATEMENTS OF CASH FLOWS

Years Ended December 31, 2005 and 2004

	2005			2004
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	1,561,286		$	1,576,306
Noncash (income) expenses included in net income:
Depreciation, depletion and amortization		43,102			38,900
Realized (gains) on sale of available-for-sale securities		—			(87,458	)
(Gain) on sale of assets		(112,486	)		(15	)
Loss on asset retirement		—			3,304
Deferred income tax		175,760			19,709
Change in assets and liabilities:
(Increase) in trade accounts and other receivables		(51,249	)		(90,822	)
(Increase) decrease in prepaid expenses		(110,757	)		11,270
Increase (decrease) in trade payables		19,802			(3,831	)
Increase (decrease) in income taxes payable		(2,948	)		2,948
Net cash provided by operating activities		1,522,510			1,470,311
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of timber and land		—			5,454
Available-for-sale securities:
Purchases		(2,072,244	)		(2,065,760	)
Sales		1,000,000			1,822,955
Proceeds from sale of assets		118,122			—
Purchase of land, property and equipment		(123,486	)		(19,877	)
Net cash (used in) investing activities		(1,077,608	)		(257,228	)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid, net of refunds		(738,818	)		(525,897	)
Net increase (decrease) in cash and cash equivalents		(293,916	)		687,186
Cash and cash equivalents:
Beginning		1,214,405			527,219
Ending	$	920,489		$	1,214,405

(continued on next page)

20

CKX LANDS, INC.

STATEMENTS OF CASH FLOWS

Years Ended December 31, 2005 and 2004

(Continued)

	2005			2004
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash payments for:
Interest	$	—		$	—
Income taxes		677,658			683,004
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Net change in unrealized and realized gains on available-for-sale securities		(19,278	)		(5,124	)

See Notes to Financial Statements.

21

CKX LANDS, INC.

NOTES TO FINANCIAL STATEMENTS

Note 1. Nature of Business and Significant Accounting Policies

Nature of business:

The Company’s business is the ownership and management of land. The primary activities consist of leasing its properties for mineral (oil and gas) and agriculture and raising timber.

Significant accounting policies:

Cash and cash equivalents:

For purposes of the statement of cash flows, cash equivalents include time deposits, certificates of deposit, and all highly liquid debt instruments with original maturities of three months or less.

Pervasiveness of estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Investment securities:

The Company complies with the provisions of Financial Accounting Standards Board Statement No. 115, Accounting for Certain Investments in Debt and Equity Securities. Under the provisions of this statement, management must make a determination at the time of acquisition whether certain investments in debt and equity securities are to be held as investments to maturity, held as available for sale, or held for trading. Management, under a policy adopted by the board of directors of the Company, made a determination that all debt and equity securities owned at that date and subject to the provisions of the statement would be classified as held available-for-sale.

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Under the accounting policies provided for investments classified as held available-for-sale, all such debt securities and equity securities that have readily determinable fair value shall be measured at fair value in the balance sheet. Unrealized holding gains and losses for available-for-sale securities shall be excluded from earnings and reported as a net amount (net of income taxes) as a separate component of retained earnings until realized. Realized gains and losses on available-for-sale securities are included in income. The cost of securities sold is based on the specific identification method. Interest on debt securities is recognized in income as earned, and dividends on marketable equity securities are recognized in income when declared.

Declines in the fair value of available-for-sale securities below their cost that are deemed to be other-than-temporary are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers (1) length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

Property and equipment:

Property and equipment is stated at cost. Major additions are capitalized; maintenance and repairs are charged to income currently. Depreciation is computed on the straight-line and accelerated methods over the estimated useful lives of the assets.

Timber:

When timber land is purchased with standing timber, the cost is divided between land and timber based on timber cruises contracted by the Company. The costs of reforestation are capitalized. The timber asset is amortized when the timber is sold based on the percentage of the timber sold from a particular tract applied to the amount capitalized for timber for that tract.

Oil and gas:

Oil and gas income is booked when the Company is notified by the well’s operators as to the Company’s share of the sales proceeds together with the withheld severance taxes. The Company has no capitalized costs relating to oil and gas producing activities and no costs for property acquisition, exploration and development activities.

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Earnings per share:

Earnings per share is based on the weighted average number of common shares outstanding during the years.

Income taxes:

Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws.

Note 2. Securities Available-for-Sale

Debt and equity securities have been classified in the balance sheet according to management’s intent in the noncurrent asset sections under the headings securities available-for-sale. The carrying amount of securities and their approximate fair values at December 31, 2005 and 2004 follow:

	Gross Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
December 31, 2005
Available-for-sale securities:
Equity securities	$	698,659	$	88,707	$	28,009	$	759,357
Corporate bonds		200,003		947		—		200,950
US government securities		2,333,955		1,796		13,272		2,322,479
	$	3,232,617	$	91,450	$	41,281	$	3,282,786
December 31, 2004
Available-for-sale securities:
Equity securities	$	612,712	$	94,909	$	8,452	$	699,169
Corporate bonds		200,003		785		—		200,788
US government securities		1,347,645		—		4,919		1,342,726
	$	2,160,360	$	95,694	$	13,371	$	2,242,683

There were no gross realized gains or gross realized losses on available-for-sale securities during 2005.

24

Gross realized gains and gross realized losses on sales of available-for-sale securities during 2004 is presented below.

	Gains		Losses
2004
Gross realized gains:
Equity securities	$	37,820	$	—
Preferred equity securities		49,638		—
	$	87,458	$	—

Information pertaining to available-for-sale securities with gross unrealized losses at December 31, 2005 and 2004, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:

	Less Than 12 Months				12 Months or More
	Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss
2005
Equity securities	$	85,947	$	15,987	$	35,342	$	12,022
US government securities		1,496,102		13,272		—		—
	$	1,582,049	$	29,259	$	35,342	$	12,022
2004
Equity securities	$	26,890	$	8,452	$	—	$	—
US government securities		1,342,727		4,919		—		—
	$	1,369,617	$	13,371	$	—	$	—

Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issues, and (3) the intent and ability of the Company to retain its investment in the issues for a period of time sufficient to allow for any anticipated recovery in fair value.

The Company has the intent and ability to retain its investments for a period of time sufficient to allow for anticipated recovery of fair value.

25

The following table shows scheduled maturities of securities (other than equity securities) available-for-sale at December 31, 2005:

Years Ending	Fair Value
2006	$	839,649
2007		1,482,830
2008		—
2009		—
2010		—
Thereafter		200,950
	$	2,523,429

Note 3. Oil and Gas Properties

Results of operations for oil and gas producing activities at December 31, 2005 and 2004 is as follows:

	2005		2004
Gross revenues:
Royalty interests	$	2,366,281	$	2,291,804
Working interests		45,013		853
		2,411,294		2,292,657
Less:
Production costs		138,652		169,068
Results before income tax expenses		2,272,642		2,123,589
Income tax expenses		732,452		672,581
Results of operations from producing activities (excluding corporate overhead)	$	1,540,190	$	1,451,008

Costs incurred in oil and gas activities:

There were no major costs, with the exception of severance taxes, incurred in connection with the Company’s oil and gas operations (which are conducted entirely within the United States) at December 31, 2005 and 2004.

26

Reserve quantities (unaudited):

Reserve information relating to estimated quantities of the Company’s interest in proved reserves of natural gas and crude (including condensate and natural gas liquids) is not available. Such reserves are located entirely within the United States. A schedule indicating such reserve quantities is, therefore, not presented. All oil and gas royalties come from Company owned properties that were developed and produced by other partners under lease agreements.

Company’s share of oil and gas produced from royalty interests:

	2005	2004
Net gas produced (MCF)	288,017	159,889
Net oil produced (Bbl)	19,327	28,265

Note 4. Income Taxes

The Company files federal income tax returns on a calendar year basis.

The net deferred tax liability in the accompanying balance sheet includes the following components at December 31, 2005 and 2004:

	2005						2004
	Current			Non-Current			Current			Non-Current
Deferred tax assets	$	487		$	—		$	230		$	—
Deferred tax liabilities		(44,193	)		(166,833	)		(34,556	)		—
Deferred tax liabilities on unrealized appreciation of securities available for sale		(19,278	)		—			(32,594	)		—
Net deferred tax liability	$	(62,984	)	$	(166,833	)	$	(66,920	)	$	—

27

A reconciliation between income taxes, computed by applying statutory tax rates to income before income taxes and income taxes provided at December 31, 2005 and 2004 is as follows:

	2005			2004
Tax at statutory rates	$	783,282		$	784,871
Tax effect of the following:
Statutory depletion		(106,256	)		(110,549	)
Dividend exclusion		(6,495	)		(3,777	)
State income tax		44,294			58,607
Other		27,660			2,985
	$	742,485		$	732,137

Deferred income taxes result from timing differences in the recognition of revenue and expenses for tax and financial statement purposes. The effect of these timing differences at December 31, 2005 and 2004 is as follows:

	2005						2004
	Current			Non-Current			Current			Non-Current
Conversion of investment from tax cash basis to accrual basis for financial reporting	$	(43,706	)	$	—		$	(33,726	)	$	—
Excess of depreciation and depletion expensed for tax purposes (under) amount expensed for financial statement purposes		—			(600	)		(600	)		—
Casualty loss		—			(121,239	)		—			—
Deferred gain		—			(44,994	)		—			—
Unrealized gain on marketable securities		(19,278	)		—			(32,594	)		—
	$	(62,984	)	$	(166,833	)	$	(66,920	)	$	—

Note 5. Line of Credit

As of December 31, 2005, the Company had available an unsecured line of credit in the amount of $1,000,000. The balance on this line of credit was $-0- at December 31, 2005 and 2004.

28

Note 6. Company Operations

The Company’s operations are classified into three principal operating segments which are all located in the United States: oil and gas properties, agricultural properties and timber properties. The Company’s reportable business segments are strategic business units that offer income from different products. They are managed separately due to the unique aspects of each area.

Following is a summary of segmented information for 2005 and 2004:

	2005			2004
REVENUES
Oil and gas properties	$	2,411,294		$	2,292,657
Agricultural properties		149,735			174,203
Timber properties		89,011			253,398
	$	2,650,040		$	2,720,258
COSTS AND EXPENSES
Oil and gas properties	$	138,652		$	169,068
Agricultural properties		15,835			5,511
Timber properties		75,760			62,257
	$	230,247		$	236,836
INCOME FROM OPERATIONS
Oil and gas properties	$	2,272,642		$	2,123,589
Agricultural properties		133,900			168,692
Timber properties		13,251			191,141
		2,419,793			2,483,422
OTHER (EXPENSE)		(116,022	)		(174,979	)
INCOME BEFORE INCOME TAXES	$	2,303,771		$	2,308,443
IDENTIFIABLE ASSETS
Oil and gas properties	$	322,971		$	322,225
Agricultural properties		2,364,591			2,364,591
Timber properties		1,499,806			1,499,806
GENERAL CORPORATE ASSETS		4,978,864			3,996,668
TOTAL ASSETS	$	9,166,232		$	8,183,290

29

	2005		2004
CAPITAL EXPENDITURES
Oil and gas properties	$	—	$	—
Agricultural properties		—		1,195
Timber properties		—		13,812
	$	—	$	15,007
DEPRECIATION, DEPLETION AND AMORTIZATION
Agricultural properties	$	10,109	$	—
Timber properties		31,380		33,728
	$	41,489	$	33,728

There are no intersegment sales reported in the accompanying income statements. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on profit or loss from operations before income taxes excluding nonrecurring gains and losses on securities held available for sale. Income before income tax represents net sales less operating expenses and other income and expenses of a general corporate nature. Identifiable assets by segment are those assets that are used in the Company’s operations within that industry.

The following summarizes major customer information at December 31, 2005 and 2004 from oil and gas revenues:

Sales to Purchaser as a Percentage of

	Total Revenues
Purchaser	2005		2004
Cox and Perkins	27	%	34	%
Unit Petroleum	27	%	15	%

Note 7. Related Party Transactions

In 1990, the Company purchased interests in properties managed by Walker Louisiana Properties (WLP), such properties being subject to a management agreement.

Note 8. Supplementary Income Statement Information

Taxes, other than income taxes, of $217,623 and $238,215, were charged to expense during 2005 and 2004, respectively.

30

Note 9. Concentration of Credit Risk

The Company maintains its cash balances in one financial institution. The amount on deposit in the financial institution is insured by the Federal Deposit Insurance Corporation up to $100,000.

Note 10. Disclosures About Fair Value of Financial Instruments

The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it was practical to estimate that value:

Cash and cash equivalents:

For these short-term instruments, the carrying amount is a reasonable estimate of fair value.

Securities available-for-sale:

Debt and equity securities were valued at fair value, which equals quoted market price.

The estimated fair value of the Company’s financial instruments at December 31, 2005 and 2004 are as follows. Amounts are presented in thousands.

	2005				2004
	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial Assets
Cash and cash equivalents	$	920	$	920	$	1,214	$	1,214
Securities available for sale		3,283		3,283		2,243		2,243
	$	4,203	$	4,203	$	3,457	$	3,457

31

CKX LANDS, INC.

PROPERTY, PLANT AND EQUIPMENT

Years Ended December 31, 2005 and 2004

	Balance, Beginning of Period		Additions		Adjustments and Retirements		Balance, End of Period
2005
Other property:
Buildings and equipment	$	77,321	$	—	$	117	$	77,204
Timber		852,942		—		7,220		845,722
Land		3,887,776		110,779		—		3,998,555
	$	4,818,039	$	110,779	$	7,337	$	4,921,481
2004
Other property:
Buildings and equipment	$	79,904	$	7,785	$	10,368	$	77,321
Timber		842,434		13,812		3,304		852,942
Land		3,891,610		1,195		5,029		3,887,776
	$	4,813,948	$	22,792	$	18,701	$	4,818,039

32

CKX LANDS, INC.

ACCUMULATED DEPRECIATION, DEPLETION AND AMORTIZATION

Years Ended December 31, 2005 and 2004

	Balance, Beginning of Period		Additions		Adjustments and Retirements		Balance, End of Period
2005
Other property:
Buildings and equipment	$	65,351	$	4,927	$	521	$	69,757
Timber		377,187		24,287		—		401,474
	$	442,538	$	29,214	$	521	$	471,231
2004
Other property:
Buildings and equipment	$	67,224	$	5,172	$	7,045	$	65,351
Timber		343,459		33,728		—		377,187
	$	410,683	$	38,900	$	7,045	$	442,538

33

CKX LANDS, INC.

QUARTERLY FINANCIAL DATA

(UNAUDITED)

Amounts in thousands, except per share:

	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Total Year
Total revenues:
2005	$	610	$	638	$	658	$	744	$	2,650
2004		528		615		810		767		2,720
Operating income:
2005		450		501		512		623		2,086
2004		382		494		670		599		2,145
Net income:
2005		327		362		367		505		1,561
2004		275		412		467		422		1,576
Net income per share:
2005		.17		.19		.19		.25		.80
2004		.14		.21		.24		.22		.81
Cash dividends per share:
2005		.17		.07		.07		.07		.38
2004		.07		.07		.07		.07		.28
Shares outstanding:
2005		1,942		1,942		1,942		1,942		1,942
2004		1,942		1,942		1,942		1,942		1,942

34