Reserve Petroleum Co. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Reserve Petroleum Co. filed its Q1 2024 10-Q, detailing financial performance and operational segments in the oil and gas sector.</b>

AI Summary

RESERVE PETROLEUM CO (RSRV) filed a Quarterly Report (10-Q) with the SEC on May 15, 2024. Reserve Petroleum Co. reported financial results for the quarter ended March 31, 2024. The company operates in the Crude Petroleum & Natural Gas industry. Key segments include Oil and Gas Production, Exploration, and Water Well Drilling Services. Financial data includes common stock, additional paid-in capital, retained earnings, and treasury stock. The filing covers the period from January 1, 2024, to March 31, 2024.

Why It Matters

For investors and stakeholders tracking RESERVE PETROLEUM CO, this filing contains several important signals. This 10-Q filing provides a quarterly update on Reserve Petroleum Co.'s financial health and operational activities, crucial for investors tracking performance in the energy sector. Understanding the segment performance (Oil and Gas Production, Exploration, Water Well Drilling) and balance sheet details offers insight into the company's strategic direction and market position.

Risk Assessment

Risk Level: low — RESERVE PETROLEUM CO shows low risk based on this filing. The filing is a standard quarterly report (10-Q) with no immediate red flags, indicating routine disclosure.

Analyst Insight

Monitor future filings for trends in revenue and profitability across different operational segments to assess growth and efficiency.

Revenue Breakdown

Key Numbers

• 2024-03-31 — Report Date (Conformed Period of Report)
• 2024-05-15 — Filing Date (Filed as of Date)
• 2024-01-01 — Quarter Start Date (Reporting period start date)
• 2023-12-31 — Previous Year End Date (Balance sheet date)

Key Players & Entities

• RESERVE PETROLEUM CO (company) — Filer name
• 0000083350 (company) — Central Index Key
• 1311 (company) — Standard Industrial Classification Code for Crude Petroleum & Natural Gas
• OKLAHOMA CITY (company) — Business address city
• DE (company) — State of incorporation
• FARMERS ROYALTY HOLDING CO (company) — Former company name
• Broadway Sixty Eight Partnership (company) — Entity name
• Corporate Office From Broadway (company) — Entity name

FAQ

Key Dates

• 2024-03-31: Quarter End Date — End of the reporting period for the 10-Q filing.
• 2024-05-15: Filing Date — Date the 10-Q was officially filed with the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides a snapshot of the company's financial performance and position during a specific quarter.)

Crude Petroleum & Natural Gas

Industry classification for companies involved in the extraction of crude petroleum and natural gas. (Indicates the primary business sector of Reserve Petroleum Co.)

Key Financial Figures

• $0.50 — 024, 154,779 shares of the Registrant's $0.50 par value common stock were outstanding

Filing Documents

• rsrv-20240331.htm (10-Q) — 602KB
• rsrv-20240331xexx311.htm (EX-31.1) — 10KB
• rsrv-20240331xexx312.htm (EX-31.2) — 10KB
• rsrv-20240331xexx32.htm (EX-32) — 6KB
• rsrv-20240331_g1.jpg (GRAPHIC) — 2KB
• 0000083350-24-000013.txt (&nbsp;) — 4239KB
• rsrv-20240331.xsd (EX-101.SCH) — 30KB
• rsrv-20240331_cal.xml (EX-101.CAL) — 59KB
• rsrv-20240331_def.xml (EX-101.DEF) — 137KB
• rsrv-20240331_lab.xml (EX-101.LAB) — 419KB
• rsrv-20240331_pre.xml (EX-101.PRE) — 290KB
• rsrv-20240331_htm.xml (XML) — 491KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Page Item 1. Consolidated Financial Statements (Unaudited) 2 Consolidated Balance Sheets 2 Consolidated Statements of Income 4 Consolidated Statements of Equity 5 Consolidated Statements of Cash Flows 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 8 Note 1 - Basis of Presentation 8 Note 2 - Revenue Recognition 9 Note 3 - Other Income , Net 10 Note 4 - Investments and Related Commitments and Contingent Liabilities, Including Guaranties 10 Note 5 - Non-Controlling Interest and Variable Interest Entities 11 Note 6 - Note Payable 14 Note 7 - Provision for Income Taxes 14 Note 8 - Asset Retirement Obligation 14 Note 9 - Fair Value Measurements 15 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 17 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 20 Item 4.

Controls and Procedures

Controls and Procedures 20

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 20 Item 1A.

Risk Factors

Risk Factors 20 Item 2. Unregistered Sales of Equity Securities , Use of Proceeds , and Purchases of Equity Securit ies 21 Item 3. Defaults Upon Senior Securities 21 Item 4. Mine Safety Disclosures 21 Item 5. Other Information 21 Item 6. Exhibits 21 1 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) THE RESERVE PETROLEUM COMPANY CONSOLIDATED BALANCE SHEETS (1) (Unaudited) ASSETS March 31, 2024 December 31, 2023 Current Assets: Cash and Cash Equivalents $ 5,813,110 $ 5,218,474 Available-for-Sale Debt Securities — 2,220,901 Equity Securities 2,764,073 2,664,066 Refundable Income Taxes 614,025 317,755 Accounts Receivable 2,184,635 2,366,663 Total Current Assets 11,375,843 12,787,859 Investments: Equity Method Investments 2,810,745 2,818,790 Other Investments 5,553,553 5,332,553 Total Investments 8,364,298 8,151,343 Property, Plant and Equipment: Oil and Gas Properties, at Cost, Based on the Successful Efforts Method of Accounting – Unproved Properties 4,906,773 3,403,051 Proved Properties 70,976,987 69,152,923 Oil and Gas Properties, Gross 75,883,760 72,555,974 Less – Accumulated Depreciation, Depletion, Amortization and Valuation Allowance ( 58,070,746 ) ( 57,622,564 ) Oil and Gas Properties, Net 17,813,014 14,933,410 Other Property and Equipment, at Cost 833,681 820,965 Less – Accumulated Depreciation ( 339,502 ) ( 306,587 ) Other Property and Equipment, Net 494,179 514,378 Total Property, Plant and Equipment, Net 18,307,193 15,447,788 Total Assets $ 38,047,334 $ 36,386,990 See accompanying notes to unaudited consolidated financial statements 2 Table of Contents THE RESERVE PETROLEUM COMPANY CONSOLIDATED BALANCE SHEETS, CONTINUED (1) (Unaudited) LIABILITIES AND EQUITY March 31, 2024 December 31, 2023 Current Liabilities: Accounts Payable $ 1,182,001 $ 537,796 Other Current Liabilities 59,147 12,839 Note Payable, Current Portion 143,704 142,136 Total Current Liabilities 1,384,852 692,771 Long-Term Liabilities: Asset Retirement Obligation 2,220,023 2,566,368 Deferred Tax Liability, Net 1,966,506 1,219,511 Note Payable, Less Current Portion 1,122,104 1,158,736 Total Long-Term Liabilities 5,308,633 4,944,615 Total Liabilities 6,693,485 5,637,386 Equity:

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2024 (Unaudited) Note 1 – BASIS OF PRESENTATION The Reserve Petroleum Company, a Delaware corporation, is an independent oil and gas company engaged in oil and natural gas exploration, development and minerals management with areas of concentration in Arkansas, Kansas, Oklahoma, South Dakota, Texas and Wyoming, a single business segment. The Company is also engaged in investments and joint ventures that are not significant business segments. The Company's consolidated subsidiaries consist of Grand Woods Development, LLC ("Grand Woods"), an Oklahoma limited liability company and wholly owned Trinity Water Services, LLC ("TWS"), an Oklahoma limited liability company. Unless otherwise specified or the context otherwise requires, all references in these notes to "the Company," "its," "our," and "we" are to The Reserve Petroleum Company and its consolidated subsidiaries. The Company's consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and the rules and regulations of the Securities and Exchange Commission ("SEC"). The consolidated financial statements include the accounts of The Reserve Petroleum Company and its subsidiaries in which the Company holds a controlling interest, reflecting ownership of a majority of the voting interest, as of the financial statement date. Additionally, the Company consolidates Variable Interest Entities ("VIEs") under certain criteria discussed further below. All intercompany accounts and transactions have been eliminated in consolidation. In 2023, the Company changed its presentation method on the statement of cash flows from the direct method to the indirect method. The indirect method is predominantly used in practice, provides a useful link to income statements and balance sheets, is more familiar to financial statement users and is the less costly approach to prepare. The C

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