Note 4 - Segment Reporting

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 4: Segment Reporting

The Company’s operations are classified into three principal operating segments that are all located in the United States: oil and gas, timber and surface. 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.

The tables below present financial information for the Company’s three operating business segments:

	Nine Months Ended September 30,		Year Ended December 31,
	2024		2023
Identifiable Assets, net of accumulated depreciation
Timber	$	2,250,551	$	2,250,616
General corporate assets		16,474,478		16,562,790
Total		18,725,029		18,813,406
Capital expenditures:
Timber	$	-	$	20,737
Surface		-		-
General corporate assets		-		-
Total segment costs and expenses	$	-	$	20,737
Depreciation and depletion
Oil and gas	$	-	$	-
Timber		65		685
General corporate assets		3,196		4,261
Total	$	3,261	$	4,946

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Revenues:
Oil and gas	$	73,340		$	47,924		$	316,986		$	198,480
Timber sales		18,883			118,365			21,158			131,048
Surface revenue		79,046			92,742			1,002,406			465,645
Total segment revenues		171,269			259,031			1,340,550			795,173
Cost and expenses:
Oil and gas costs		12,958			7,043		$	36,189		$	26,271
Timber costs		6,885			842			15,706			4,805
Surface costs		240			-			240			225
Total segment costs and expenses		20,083			7,885			52,135			31,301
Net income (loss) from operations:
Oil and gas		60,382			40,881		$	280,797		$	172,209
Timber		11,998			117,523			5,452			126,243
Surface		78,806			92,742			1,002,166			465,420
Total segment net income from operations		151,186			251,146			1,288,415			763,872
Unallocated other expense before income taxes		(113,981	)		(203,504	)		(926,842	)		(895,444	)
Income (loss) before income taxes	$	37,205		$	47,642		$	361,573		$	(131,572	)

There are no intersegment sales reported in the accompanying statements of operations. The accounting policies of the segments are the same as those described in the summary of significant accounting policies in the Company’s Form 10-K for the year ended December 31, 2023. The Company evaluates performance based on income or loss from operations before income taxes excluding any nonrecurring gains and losses. Income before income tax represents net revenues less costs and expenses less other income and expenses of a general corporate nature. Identifiable assets by segment are those assets used solely in the Company's operations within that segment.