Reserve Petroleum Co. Files Q2 2024 10-Q

TL;DR

**RSRV Q2 10-Q FILED: Check financials for oil & gas ops.**

AI Summary

Reserve Petroleum Co. filed its 10-Q for the period ending June 30, 2024. The company, primarily involved in crude petroleum and natural gas, reported financial results for the second quarter and the first half of the year. Specific financial figures and operational details are contained within the filing.

Why It Matters

This filing provides investors and analysts with the latest financial performance and operational updates for Reserve Petroleum Co., crucial for understanding the company's current standing in the oil and gas sector.

Risk Assessment

Risk Level: medium — As a company in the volatile oil and gas industry, Reserve Petroleum Co. is subject to market fluctuations and operational risks.

Key Numbers

• N/A — Revenue (Specific revenue figures are not detailed in the provided header information.)
• N/A — Net Income (Specific net income figures are not detailed in the provided header information.)
• N/A — Earnings Per Share (Specific EPS figures are not detailed in the provided header information.)

Key Players & Entities

• RESERVE PETROLEUM CO (company) — Filer
• 0000083350 (company) — Central Index Key
• DE (company) — State of Incorporation
• OKLAHOMA CITY (company) — Business City
• 20240630 (date) — Period of Report

FAQ

Key Financial Figures

• $0.50 — 024, 154,624 shares of the Registrant's $0.50 par value common stock were outstanding

Filing Documents

• rsrv-20240630.htm (10-Q) — 727KB
• rsrv-20240630xexx311.htm (EX-31.1) — 10KB
• rsrv-20240630xexx312.htm (EX-31.2) — 10KB
• rsrv-20240630xexx32.htm (EX-32) — 6KB
• rsrv-20240630_g1.jpg (GRAPHIC) — 2KB
• 0000083350-24-000023.txt ( ) — 4613KB
• rsrv-20240630.xsd (EX-101.SCH) — 30KB
• rsrv-20240630_cal.xml (EX-101.CAL) — 59KB
• rsrv-20240630_def.xml (EX-101.DEF) — 143KB
• rsrv-20240630_lab.xml (EX-101.LAB) — 440KB
• rsrv-20240630_pre.xml (EX-101.PRE) — 306KB
• rsrv-20240630_htm.xml (XML) — 546KB

– 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 11 Note 5 - Non-Controlling Interest and Variable Interest Entities 12 Note 6 - Note Payable 14 Note 7 - Provision for Income Taxes 15 Note 8 - Asset Retirement Obligation 15 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 18 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 22 Item 4.

Controls and Procedures

Controls and Procedures 22

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 22 Item 1A.

Risk Factors

Risk Factors 22 Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Purchases of Equity Securities 22 Item 3. Defaults Upon Senior Securities 23 Item 4. Mine Safety Disclosures 23 Item 5. Other Information 23 Item 6. Exhibits 23 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 June 30, 2024 December 31, 2023 Current Assets: Cash and Cash Equivalents $ 3,152,651 $ 5,218,474 Available-for-Sale Debt Securities — 2,220,901 Equity Securities 3,783,996 2,664,066 Refundable Income Taxes 306,554 317,755 Accounts Receivable 2,828,386 2,366,663 Total Current Assets 10,071,587 12,787,859 Investments: Equity Method Investments 2,792,337 2,818,790 Other Investments 5,227,657 5,332,553 Total Investments 8,019,994 8,151,343 Property, Plant and Equipment: Oil and Gas Properties, at Cost, Based on the Successful Efforts Method of Accounting – Unproved Properties 4,686,468 3,403,051 Proved Properties 72,609,344 69,152,923 Oil and Gas Properties, Gross 77,295,812 72,555,974 Less – Accumulated Depreciation, Depletion, Amortization and Valuation Allowance ( 58,698,510 ) ( 57,622,564 ) Oil and Gas Properties, Net 18,597,302 14,933,410 Other Property and Equipment, at Cost 349,746 820,965 Less – Accumulated Depreciation ( 166,199 ) ( 306,587 ) Other Property and Equipment, Net 183,547 514,378 Total Property, Plant and Equipment, Net 18,780,849 15,447,788 Total Assets $ 36,872,430 $ 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 June 30, 2024 December 31, 2023 Current Liabilities: Accounts Payable $ 564,164 $ 537,796 Other Current Liabilities 56,694 12,839 Note Payable, Current Portion 145,178 142,136 Total Current Liabilities 766,036 692,771 Long-Term Liabilities: Asset Retirement Obligation 2,261,636 2,566,368 Deferred Tax Liability, Net 1,937,963 1,219,511 Note Payable, Less Current Portion 1,085,347 1,158,736 Total Long-Term Liabilities 5,284,946 4,944,615 Total Liabilities 6,050,982 5,637,386 Equity: Comm

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 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 that are not significant business segments. The Company's consolidated entities 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 variable interest entities ("VIEs") 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 VIEs under certain criteria discussed further below. All intercompany accounts and transactions have been eliminated in consolidation. In the period ended September 30, 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 Compan

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View this 10-Q filing on SEC EDGAR