UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~March~~ 31,September 30, 2020

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-31905

CKX Lands, Inc.

(Exact name of registrant as specified in its charter)

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


~~127 W. Broad Street~~2417 Shell Beach Drive
Lake Charles, LALouisiana		70601
(Address of principal executive offices)		(Zip Code)

	(337) 493-2399
	(Registrant’s telephone number) (Former name or former address, if changed since last report)

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

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock with no par value	CKX	NYSE American

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 ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 1,942,495 shares of common stock are issued and outstanding as of ~~May 7,~~November 6, 2020.

The accompanying notes are an integral part of these unaudited financial statements.

Note 1: Significant Accounting Policies and Recent Accounting Pronouncements

Significant Accounting Policies

Basis of Presentation

The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures have been omitted pursuant to such rules and regulations. In the opinion of management, the accompanying financial statements include normal recurring adjustments that are necessary for a fair presentation of the results for the interim periods presented. These financial statements should be read in conjunction with our audited financial statements and notes thereto for the fiscal year ended December 31, 2019 included in our Annual Report on Form 10-K. The results of operations for the three and nine months ended ~~March 31,~~September 30, 2020 are not necessarily indicative of results to be expected for the full fiscal year or any other periods.

The preparation of the financial statements in conformity with U.S. generally accepted accounting principles requires management to make a number of estimates and judgments that affect the reported amounts of assets, liabilities, expenses, and related disclosures. Actual results may differ from these estimates.

Certain prior period amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations.

Risks and Uncertainties

In December 2019, a novel coronavirus disease (“COVID-19”) was reported and in January 2020, the World Health Organization (“WHO”) declared it a Public Health Emergency of International Concern. On February 28, 2020, the WHO raised its assessment of the COVID-19 threat from high to very high at a global level due to the continued increase in the number of cases and affected countries, and on March 11, 2020, the WHO characterized COVID-19 as a pandemic. While the Company did not incur significant disruptions to its operations during the first ~~quarter~~nine months of 2020 from COVID-19, it is unable at this time to predict the impact that COVID-19 will have on its business, financial position and operating results in future periods due to numerous uncertainties and is closely monitoring the impact of the pandemic on all aspects of its business.

Concentration of Credit Risk

The Company maintains its cash balances in seven financial institutions. ~~The amount on deposit~~At times, cash balances may be in ~~each financial institution is insured by~~excess of the Federal Deposit Insurance ~~Corporation up~~Corporation’s insured limit of $250,000. The Company has not experienced any losses in such accounts and management believes the Company is not exposed to ~~$250,000.~~any significant credit risk on its cash balances.

Cash Equivalents

Cash equivalents are highly liquid debt instruments with original maturities of three months or less when purchased.

Certificate of Deposits

Certificates of deposit have maturities greater than three months when purchased, in amounts not greater than $250,000. All certificates of deposit are held until maturity and recorded at cost which approximates fair value. Certificates of deposit mature through ~~2021.~~the 4th quarter of 2020. Certificates of deposit with a maturity of one year or less are classified as short-term. Certificates of deposit with a maturity of more than one year are classified as long-term.

Equity Investment

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition of Financial Assets and Financial Liabilities,” (ASU 2016-01), which makes targeted amendments to the guidance for recognition, measurement, presentation and disclosure of financial instruments. The guidance under ASU 2016-01 requires equity investments, other than equity method investments, to be measured at fair value with changes in fair value recognized in net income. As of ~~March 31,~~September 30, 2020, and December 31, 2019, the Company classified ~~$499,610~~$502,847 and $500,642, respectively, of mutual funds as equity securities. The Company invests in ultra-short, high quality U.S. dollar money market funds, foreign funds, and obligations issued by the U.S. Government. The Company did not hold any equity investments until the fourth quarter of 2018, accordingly, there are no effects on the Company’s investments from the adoption of ASU 2016-01.

Accounts Receivable

The Company’s accounts receivable ~~consist~~consists of incomes received after quarter-end for royalties produced prior to quarter-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 quarter, the Company estimates the amount to be received based on the average of the most recent 12 month’s royalties that were received from that particular well. During the three months ended March 31, 2020, the Company revised its estimate for accrued royalty revenue by reducing it approximately 33% to reflect the decrease in oil prices in February and March of 2020. The Company does not maintain an allowance for doubtful accounts because other than the accrual for earned but not received royalties, it has no accounts receivable.

Property, Building and Equipment

Property, building, and equipment is stated at cost. Major additions are capitalized. Maintenance and repairs are charged to income as incurred. Depreciation is computed on the straight-line and accelerated methods over the following estimated useful lives of the assets:

Furniture and equipment (in years)	5	-	7
Land improvements (in years)		15

Impairment of Long-lived Assets

Long-lived assets, such as land, timber and property, buildings, and equipment, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. If events or circumstances arise that require a long-lived asset to be tested for potential impairment, the Company first compares undiscounted cash flows expected to be generated by the asset to its carrying value. If the carrying amount of the long-lived asset is not recoverable on an undiscounted cash flow basis, an impairment charge is recognized to the extent that the carrying value exceeds the fair value. Fair value may be determined through various valuation techniques including quoted market prices, third-party independent appraisals and discounted cash flow models. ~~During~~

On August 27, 2020, Hurricane Laura made landfall in Cameron, Louisiana as a major Category 4 hurricane. The hurricane caused widespread property damage, flooding, power outages, and water and communication service interruptions. The Company holds 13,944 acres of land in Southwest Louisiana across 11 parishes, with 10,522 acres classified as timber lands. Ten of these parishes are included in the ~~three months ended March 31, 2020,~~Federal Emergency Management Agency’s disaster declaration related to Hurricane Laura. Approximately one-third of the Company’s timber was damaged during the storm. The Company performed ~~a step zero~~an impairment analysis by comparing the undiscounted cash flow of the assets and the carrying value of the fixed assets and determined ~~there were no qualitative factors~~ that ~~would indicate impairment.~~the fair value of the timber exceeded the carrying value as of September 30, 2020. No impairment charges were recorded during the ~~three~~nine months ended ~~March 31,~~September 30, 2020 and 2019.

Revenue Recognition

Effective January 1, 2018, we adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606). Under the new standard, we recognize revenues when the following criteria are met: (i) persuasive evidence of a contract with a customer exists, (ii) identifiable performance obligations under the contract exist, (iii) the transaction price is determinable for each performance obligation, (iv) the transaction price is allocated to each performance obligation, and (v) the performance obligations are satisfied. We derive a majority of our revenues from oil and gas royalties, timber sales, and surface leases. Surface leases are not within the scope of ASC 606. See Note 6 for more detailed information about the Company’s reportable segments.

Oil and Gas

Oil and gas revenue is generated through customer contracts, where we provide the customer access to a designated tract of land upon which the customer performs exploration, extraction, production and ultimate sale of the oil and gas. The Company receives royalties on all oil and gas produced by the customer. The performance obligation identified in oil and gas related contracts is the production of oil and gas on the designated tract of land. The performance obligation is satisfied at a point in time, which is when the customer produces oil and gas. The transaction price is comprised of fixed fees (royalties) on all oil and gas produced. The Company accrues monthly royalty revenues based upon estimates and adjusts to actual as the Company receives payments. Net accrued royalty income was ~~$71,162~~$77,651 and $84,880 as of ~~March 31,~~September 30, 2020 and December 31, 2019, respectively. There are no capitalized contract costs associated with oil and gas contracts. The accounting of royalty income remains largely unchanged upon implementation of ASC 606.

Timber

Timber revenue is generated through customer contracts executed as a pay-as-cut arrangement, where the customer acquires the right to harvest specified timber on a designated tract for a set period of time at agreed-upon unit prices. The performance obligation identified in timber related contracts is the severing of a single tree.

We satisfy our performance obligation when timber is severed, at which time revenue is recognized. The transaction price for timber sales is determined using contractual rates applied to harvest volumes. The Company may receive a deposit at the time of entering into a stumpage agreement and this deposit is recorded in unearned revenue and accrued expenses until earned. The Company held stumpage agreement deposits of $137,300 and $87,300 ~~at March 31,~~as of September 30, 2020 and December 31, ~~2019.~~2019, respectively. There are no capitalized contract costs associated with timber contracts. The accounting of timber revenue remains largely unchanged upon implementation of ASC 606. No revenue has been recognized on the stumpage agreements held by the Company and they are still open. The amount deposited by the customer is recognized as revenue against the first timber harvested. If no timber is harvested by the end of the contract the deposit is retained and recognized as income at contract end. The accounting of timber revenue remains largely unchanged upon implementation of ASC 606.

Surface

Surface revenue is earned through annual leases for agricultural and hunting activities and the Company records revenues evenly over the term of these leases. Surface revenues from these sources are recurring on an annual basis. Unearned surface revenues and accrued expenses were ~~$80,025~~$111,311 and $77,857 ~~at March 31,~~as of September 30, 2020, and December 31, 2019, respectively.

Surface revenue is also earned through right of way and related temporary workspace leases, both of which are not usual in occurrence and are not recurring sources of revenue. Generally, a right of way lease relates to either a utility or pipeline right of way that is a permanent servitude or exists for fixed periods of time greater than thirty years. The Company retains ownership of the land and the servitude is limited to the use of the surface. Revenue is recorded at the time of the agreement’s execution date. For income tax purposes, these types of agreements are treated as sales of business assets.

Other sources of surface revenue can be commercial activities leases and sales of surface minerals, such as dirt.

Basic and Diluted Earnings per share

Net earnings per share is provided in accordance with FASB ASC 260-10, "Earnings per Share". Basic earnings per share is computed by dividing earnings available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted income per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive income per share excludes all potential common shares if their effect is anti-dilutive. As of ~~March 31,~~September 30, 2020, and 2019 there were no dilutive shares outstanding.

Dividends

In determining whether a dividend will be declared, the Board of Directors will take into account the Company’s prior fiscal year’s cash flows from operations and the current economic conditions among other information deemed relevant. Dividends paid per common share are based on the weighted average number of shares of common stock outstanding during the period. No dividends were declared during the ~~three~~nine months ended ~~March 31,~~September 30, 2020 and 2019.

Pursuant to a dividend reversion clause in the Company’s Articles of Incorporation, dividends not claimed within one year after the dividend becomes payable will expire and revert in full ownership to the Company and the Company’s obligation to pay such dividend will cease. Any dividend reversions are recorded in equity upon receipt.

Recent Accounting Pronouncements

In February 2016, the FASB issued ASU 2016-02, which amended the accounting treatment for leases. Lessees (for capital and operating leases) and lessors (for sales-type leases, direct financing leases and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. In July 2018, the FASB issued ASU 2018-10 and ASU 2018-11. ASU 2018-10 provides certain areas for improvement in ASU 2016-02 and ASU 2018-11 provides an additional optional transition method by allowing entities to initially apply the new leasing standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The new leasing standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted this standard as of January 1, 2019. The Company reviewed its service agreements and other arrangements and evaluated whether they met the definition of a lease under ASU 2016-02. The Company determined that the adoption of this standard had no impact on its financial statements.

There are various ~~other~~ updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to have a material impact on the Company’s financial position, results of operations or cash flows.

Note 3: Fair Value of Financial Instruments

ASC 820 Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value and enhances disclosures about fair value measurements. It defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities that are not active; and model-driven valuations whose inputs are observable or whose significant value drivers are observable. Valuations may be obtained from, or corroborated by, third-party pricing services.

Level 3: Unobservable inputs to measure fair value of assets and liabilities for which there is little, if any market activity at the measurement date, using reasonable inputs and assumptions based upon the best information at the time, to the extent that inputs are available without undue cost and effort.

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:

Class	Methods and/or Assumptions

Cash and cash equivalents:	Carrying value approximates fair value due to its readily convertible characteristic.

Certificate of Deposit:	Held until maturity and recorded at amortized cost which approximates fair value.

Equity Investment in mutual funds:	Carrying value adjusted to and presented at fair market value.

The estimated fair value of the Company's financial instruments are as follows:

			March 31, 2020				December 31, 2019					September 30, 2020				December 31, 2019
Financial Assets:	Level		Carrying Value		Fair Value		Carrying Value		Fair Value		Level	Carrying Value		Fair Value		Carrying Value		Fair Value

Cash and cash equivalents		1	$	2,867,156	$	2,867,156	$	3,280,289	$	3,280,289	1	$	5,255,957	$	5,255,957	$	3,280,289	$	3,280,289
Certificate of deposit - short term		1		3,163,163		3,163,163		2,697,000		2,697,000	1		1,193,604		1,195,009		2,697,000		2,697,000
Equity investment in mutual funds		1		502,387		499,610		500,410		500,642	1		502,847		504,117		500,410		500,642
Total			$	6,532,706	$	6,529,929	$	6,477,699	$	6,477,931		$	6,952,408	$	6,955,083	$	6,477,699	$	6,477,931

During the ~~three~~nine months ended ~~March 31,~~September 30, 2020 and 2019, the Company had a gain on sale of land of ~~$33,107~~$295,238 and ~~$75,926,~~$80,876, respectively.

Depreciation expense was ~~$234~~$1,793 and ~~$507~~$1,517 for the ~~three~~nine months ended ~~March 31,~~September 30, 2020 and 2019, respectively.

Depletion expense was ~~$134~~$683 and ~~$109~~$288 for the ~~three~~nine months ended ~~March 31,~~September 30, 2020 and 2019, respectively.

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 in the Company’s Form 10-K for the year ended December 31, 2019. 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.

ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited financial statements and related notes included in this Quarterly Report on Form 10-Q and the audited financial statements and notes thereto as of and for the year ended December 31, ~~201~~92019 and the related Management’s Discussion and Analysis of Financial Condition and Results of Operations, both of which are contained in our Annual Report on Form 10-K for the fiscal year ended December 31, ~~201~~9,2019, filed on March 13,~~, 20~~20. 2020.

This Management’s Discussion and Analysis includes a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words like “believe,” “expect,” “plan,” “estimate,” “anticipate,” “intend,” “project,” “will,” “predicts,” “seeks,” “may,” “would,” “could,” “potential,” “continue,” “ongoing,” “should” and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements, which apply only as of the date of this Form 10-Q. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or from our predictions, including those risks described in our Annual Report on Form 10-K, this Form 10-Q and in our other public filings. We undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events, or otherwise.

CKX Lands, Inc., a Louisiana corporation, 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 mineral interests 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 a fifty percent undivided interest in approximately 35,575 acres in southwest Louisiana.

Today the Company’s income is derived from mineral royalties, timber sales and surface payments from its lands. CKX receives income from royalty interests and mineral leases related to oil and gas production, timber sales, and surface rents. Although CKX is active in the management of its land and planting and harvesting its timber, CKX is passive in the production of income from oil and gas production in that CKX does not explore for oil and gas or operate wells. These oil and gas activities are performed by unrelated third parties.

CKX leases its property to oil and gas operators and collects income through its land ownership in the form of oil and gas royalties and lease rentals and geophysical revenues. The Company’s oil and gas income fluctuates as new oil and gas production is discovered on Company land and then ultimately depletes or becomes commercially uneconomical to produce. The volatility in the daily commodity pricing of a barrel of oil or a thousand cubic feet, or “MCF,” of gas will also cause fluctuations in the Company’s oil and gas income.

CKX has small royalty interests in 29 different producing oil and gas fields. The size of each royalty interest is determined by the Company’s net ownership in the acreage unit for the well. CKX’s royalty interests range from 0.0045% for the smallest to 7.62% for the largest. As the Company does not own or operate the wells, it does not have access to any reserve information. Eventually, the oil and gas reserves under the Company’s current land holdings will be depleted.

Timber income is derived from sales of timber on Company lands. The timber income will fluctuate depending on our ability to secure stumpage agreements in the regional markets, timber stand age, and/or stumpage commodity prices. Timber is a renewable resource that the Company actively manages.

Surface income is earned from various recurring and non-recurring sources. Recurring surface income is earned from lease arrangements for farming, recreational and commercial uses. Non-recurring surface income can include such activities as pipeline right of ways, and temporary worksite rentals.

In managing its lands, the Company relies on and has established relationships with real estate, forestry, environmental and agriculture consultants as well as attorneys with legal expertise in general corporate matters, real estate, and minerals.

The Company actively searches for additional real estate for purchase in Louisiana with a focus on southwest Louisiana. When evaluating unimproved real estate for purchase, the Company will consider numerous characteristics including but not limited to, timber fitness, agriculture fitness, future development opportunities and/or mineral potential. When evaluating improved real estate for purchase, the Company will consider characteristics including, but not limited to, geographic location, quality of existing revenue streams, and/or quality of the improvements.

In the first quarter of 2019, the Company began developing several ranchette-style subdivisions on certain of its lands in Calcasieu and Beauregard Parishes using existing road rights of way. The Company has identified demand in those areas for ranchette-style lots, which consist of more than three acres each, and the Board of Directors and management believe this project will allow the Company to realize a return on its investment in the applicable lands after payment of expenses. The Company has completed and recorded plats for two subdivisions and expects to complete a third subdivision during the ~~third~~fourth quarter of 2020. The three subdivisions are located on approximately 415 acres in Calcasieu Parish and approximately 160 acres in Beauregard Parish, and contain an aggregate of 39 lots. As of the date of this report, the Company has closed on the sale of ~~two~~five of the 39 lots, has ~~one sale~~nine sales pending, and it is actively marketing the remaining lots.

The Company is working to identify additional undeveloped acres owned by the Company in Southwest Louisiana that would likewise be suitable for residential subdivisions.

On October 9, 2020, Hurricane Delta made landfall in Creole, Louisiana as a Category 2 hurricane. The hurricane caused property damage, flooding, power outages, and water and communication service interruptions. The Company holds property in four of the parishes included in the Federal Emergency Management Agency’s disaster declaration related to the hurricane. The Company is currently in the process of assessing any damage to its timber and the effects of any temporary interruption in oil and gas production on its lands, but it currently believes the effects of the hurricane on its assets and operations are minimal.

The Company’s results of operations for the ~~three~~nine months ended ~~March 31,~~September 30, 2020 were driven primarily by an increase in ~~oil~~surface revenues from the first ~~quarter~~nine months of fiscal 2019 ~~due to~~and, an ~~over 240%~~ increase in ~~barrels of oil produced and a slightly higher average sale price per barrel, offset by higher general and administrative expenses and a lower~~ gain on the sale of ~~land.~~land, offset by a decrease in gas revenue due to a reduction in the average gas sales price and net gas produced. The ~~lower~~higher gain on the sale of land in the ~~in the~~ first ~~quarter~~nine months of fiscal 2020 is due to the variable nature of land sales. The increase in general and administrative expenses from the first quarter of 2019 was attributable to increased property management fees and auditing and accounting fees, offset by a decrease in director fees and travel expense.

Revenue – Three Months Ended ~~March 31~~~~, 20~~20September 30, 2020

Total revenues for the three months ended ~~March 31,~~September 30, 2020 were ~~$180,391, an increase~~$160,842, a decrease of approximately ~~18%~~29.6% when compared with the same period in 2019. Total revenue consists of oil and gas, timber, and surface revenues. Components of revenues for the three months ended ~~March 31,~~September 30, 2020 as compared to 2019, are as follows:

Oil and gas revenues were ~~64%~~32% and ~~61%~~76% of total revenues for the three months ended ~~March 31,~~September 30, 2020 and 2019, respectively. A breakdown of oil and gas revenues for the three months ended ~~March 31,~~September 30, 2020 as compared to the three months ended ~~March 31,~~September 30, 2019 is as follows:

CKX received oil and/or gas revenues from 7789 and 7980 wells during the three months ended ~~March 31,~~September 30, 2020 and 2019, respectively.

The following schedule summarizes barrels and MCF produced and average price per barrel and per MCF for the three months ended ~~March 31,~~September 30, 2020 and 2019:

Oil revenues ~~increased~~decreased for the three months ended ~~March 31,~~September 30, 2020, as compared to the three months ended ~~March 31,~~September 30, 2019, by ~~$58,226.~~$98,543. Gas revenues decreased for the three months ended ~~March 31,~~September 30, 2020, as compared to the same period in 2019, by ~~$34,245.~~$24,522. As indicated from the schedule above, the ~~increase~~decrease in oil revenues were due to ~~an increase~~a decrease in the net oil produced and ~~an increase~~a decrease in the average oil sales price per barrel. The decrease in gas revenues were due to a decrease in net gas produced and a decrease in the average price per MCF. Management believes the decrease in oil and gas revenues is a factor of the extreme weakness in oil and gas markets due to the COVID-19 pandemic.

Lease and geophysical revenues decreased for the three months ended ~~March 31,~~September 30, 2020, as compared to the three months ended ~~March 31,~~September 30, 2019, by ~~$3,160.~~$221. These revenues are dependent on oil and gas producers’ activities, are not predictable and can vary significantly from year to year.

Timber revenue was ~~$7,888~~$59,416 and ~~$14,481~~$16,717 for the three months ended ~~March 31,~~September 30, 2020 and 2019, respectively. The ~~decrease~~increase in timber revenues was due to ~~wet weather during the first quarter~~some holders of ~~fiscal 2020 that limited customers’ ability~~timber contracts determining to harvest ~~timber.~~timber on Company lands and favorable weather conditions.

Surface revenues increased for the three months ended ~~March 31,~~September 30, 2020, as compared to the three months ended ~~March 31,~~September 30, 2019, by ~~$12,687.~~$13,092. This increase is due to an increase in the price per acre charge for leases.

Total revenues for the nine months ended September 30, 2020 were $529,930, a decrease of approximately 11.5% when compared with the same period in 2019. Total revenue consists of oil and gas, timber, and surface revenues. Components of revenues for the nine months ended September 30, 2020 as compared to 2019, are as follows:

Oil and gas revenues were 44% and 68% of total revenues for the nine months ended September 30, 2020 and 2019, respectively. A breakdown of oil and gas revenues for the nine months ended September 30, 2020 as compared to the nine months ended September 30, 2019 is as follows:

CKX received oil and/or gas revenues from 89 and 97 wells during the nine months ended September 30, 2020 and 2019, respectively.

The following schedule summarizes barrels and MCF produced and average price per barrel and per MCF for the nine months ended September 30, 2020 and 2019:

Oil revenues decreased for the nine months ended September 30, 2020, as compared to the nine months ended September 30, 2019, by $100,527. Gas revenues decreased for the nine months ended September 30, 2020, as compared to the same period in 2019, by $69,609. As indicated from the schedule above, the decrease in oil revenues was due to a decrease in net oil produced and a decrease in the average oil sales price per barrel. The decrease in gas revenues was due to a decrease in net gas produced and a decrease in the average price per MCF. Management believes the decrease in oil and gas revenues is a factor of the extreme weakness in oil and gas markets due to the COVID-19 pandemic.

Lease and geophysical revenues decreased for the nine months ended September 30, 2020, as compared to the nine months ended September 30, 2019, by $4,104. These revenues are dependent on oil and gas producers’ activities, are not predictable and can vary significantly from year to year.

Timber revenue was $71,052 and $31,198 for the nine months ended September 30, 2020 and 2019, respectively. The increase in timber revenues was due to some holders of timber contracts determining to harvest timber on Company lands and favorable weather conditions for harvesting.

Surface revenues increased for the nine months ended September 30, 2020, as compared to the nine months ended September 30, 2019, by $65,696. This increase is due to an increase in the price per acre charge for leases.

Costs and Expenses – Three and Nine Months Ended September 30, 2020~~March 31~~~~, 20~~20

Oil and gas costs decreased ~~slightly~~ for the three and nine months ended ~~March 31,~~September 30, 2020 as compared to the three and nine months ended ~~March 31,~~September 30, 2019 by ~~$2,787.~~$14,970 and $20,330, respectively. These variances are due to the normal variations in year to year costs, which correlate directly with variations in revenues.

Timber costs decreased for the three and nine months ended ~~March 31,~~September 30, 2020 as compared to the three and nine months ended September 30, 2019 by $8,626 and $10,506, respectively. This is primarily due to decreased timber management costs.

General and administrative expenses decreased for the three months ended September 30, 2020 as compared to the three months ended ~~March 31,~~September 30, 2019 by ~~$1,946.~~$21,772. This is primarily due to ~~the~~ decreased ~~timber revenue occurring during the three months ended March 31, 2020.~~

~~Surface costs~~property management fees, legal fees and SEC filing fees. General and administrative expenses decreased for the ~~three~~nine months ended ~~March 31,~~September 30, 2020 as compared to the ~~three~~nine months ended ~~March 31,~~September 30, 2019 by ~~$578.~~

~~General and administrative expenses increased for the three months ended March 31, 2020 as compared to the three months ended March 31, 2019 by $23,086.~~$14,031. This is primarily due to ~~increased property management~~decreased legal fees, SEC filing fees, director fees and travel expense partially offset by an increase in auditing and accounting ~~fees, offset by a decrease in directors fees and travel expense.~~fees.

Gain on sale of land and equipment was ~~$33,107~~$41,331 and ~~$75,926~~$0 for the three months ended ~~March 31,~~September 30, 2020 and 2019, respectively. Gain on sale of land and equipment was $295,238 and $80,876 for the nine months ended September 30, 2020 and 2019, respectively. For the nine months ended September 30, 2020, this consisted of a gain on sale of six pieces of land including five lots in subdivisions and one sale to local government for roadway construction.

Current assets totaled ~~$6,756,300~~$7,086,470 and current liabilities equaled ~~$304,355 at March 31,~~$366,528 as of September 30, 2020.

The Company entered into an unsecured revolving line of credit with Hancock Whitney Bank on June 25, 2018. The line of credit permitted the Company to draw a maximum aggregate amount of $1,000,000. Borrowings under the line of credit bore interest at a rate of 4.25%. The line of credit expired, and the Company did not extend the line of credit as management believes it has sufficient cash on hand available to handle recurring costs.

In the opinion of management, cash and cash equivalents, and certificates of deposit are adequate for projected operations and possible land acquisitions.

Net cash provided by ~~(used in)~~ operating activities was ~~$21,743~~$176,539 and ~~($40,010)~~$75,314 for the ~~three~~nine months ended ~~March 31,~~September 30, 2020 and ~~March 31,~~September 30, 2019, respectively. The change was attributable primarily to the ~~decrease~~increase in net income and current liabilities offset by the ~~decrease~~increase on the gain on the sale of land.

Net cash provided by ~~(used in)~~ investing activities was ~~($434,876)~~$1,799,129 and ~~$305,807~~$1,004,310 for the ~~three~~nine months ended ~~March 31,~~September 30, 2020, and 2019, respectively. For the ~~three~~nine months ended ~~March 31,~~September 30, 2020, this primarily resulted from ~~purchases of certificates of deposit of $1,210,163 and purchases of mutual funds of $1,978, offset by~~ proceeds from maturity of certificates of deposit of ~~$744,000~~$3,489,163 and the proceeds from the sale of fixed assets of ~~$33,265. For the three months ended March 31, 2019, this primarily resulted from~~$299,441 offset by purchases of certificates of deposit of ~~$489,000,~~$1,985,767 and purchases of mutual funds of ~~$1,458 and purchases of timber of $17,970, offset by~~$3,708. For the nine months ended September 30, 2019, this primarily resulted from proceeds from maturity of certificates of deposit of ~~$710,000~~$2,390,000 and the proceeds from the sales of fixed assets of ~~$104,235.~~$109,235, offset by purchases of certificates of deposit of $1,468,000, purchases of mutual funds of $4,365 and costs of reforesting timber of $22,560.

There were no changes in our significant accounting policies and estimates during the ~~three~~nine months ended ~~March 31,~~September 30, 2020 from those set forth in “Significant Accounting Policies and Estimates” in our Annual Report on Form 10-K for the year ended December 31, 2019.

See Note 1, Basis of Presentation and Recent Accounting Pronouncements, to our condensed financial statements included in this report for information regarding recently issued accounting pronouncements that may impact our financial statements.

During the ~~three~~nine months ended ~~March 31,~~September 30, 2020, we did not have any relationships with unconsolidated organizations or financial partnerships, such as structured finance or special purpose entities that would have been established for the purpose of facilitating off-balance sheet arrangements.

Pursuant to Rule 13a-15(b) and Rule 15d-15(b) under the Exchange Act, the Company’s principal executive and financial officer carried out an evaluation of the effectiveness of the Company’s disclosure controls and procedures (as defined under Rule 13a-15(e) or Rule 15d-15(e) under the Exchange Act) as of the end of the period covered by this Report. Disclosure controls and procedures mean controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Based on its evaluation, management concluded that as of ~~March 31,~~September 30, 2020, the Company’s disclosure controls and procedures were effective.

As disclosed in our Annual Report on Form 10-K for the year ended December 31, 2019, our management concluded that, as of December 31, 2019, the Company’s internal control over financial reporting were effective. There were no changes in the Company’s internal control over financial reporting during the fiscal quarter ended ~~March 31,~~September 30, 2020 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

In addition to the other information set forth in this quarterly report, you should carefully consider the risks discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, including under the heading “Item 1A. Risk Factors,,”which, along with risks described below, could materially affect the Company’s business, financial condition or results of operations in future periods. These are not the only risks facing the Company. Other risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect the Company’s business, financial condition or results of operations in future periods.

The COVID-19 pandemic ~~has~~ created a global health crisis and an unprecedented suspension of commercial activity around the world, including in Louisiana, that may lead to a significant, worldwide recession. The effect of the pandemic is rapidly evolving, and its future consequences are highly uncertain, so we cannot predict how it may affect our future financial condition and results of operations.

The novel coronavirus, which emerged in China in late 2019, has caused a deadly pandemic that has spread to North America, including Louisiana. Government authorities around the world, including in the State of Louisiana, ~~have~~ implemented “stay-at-home” and other social distancing orders that ~~have~~ required many businesses, including some of our business partners and customers like timber mills who buy our timber, to close. This suspension in economic activity may in turn cause a worldwide recession, including in Louisiana where we operate. Although we have been able to continue operating, we cannot predict with any certainty how the pandemic could impact our operations in the future. Among other possible effects, the pandemic could materially and adversely affect us in the following ways:

The direct and indirect effects of the pandemic are extremely widespread and rapidly evolving. In addition, its future effects are highly uncertain. It is possible that the pandemic could affect our business in the future in ways that we do not or cannot now anticipate.

Pursuant to the requirements 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.

		Page

PART I.	FINANCIAL INFORMATION

ITEM 1.	FINANCIAL STATEMENTS
	BALANCE SHEETS AS OF ~~MARCH 31,~~SEPTEMBER 30, 2020 (UNAUDITED) AND DECEMBER 31, 2019
	STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED ~~MARCH 31,~~SEPTEMBER 30, 2020 AND 2019 (UNAUDITED)
	STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY FOR THE THREE AND NINE MONTHS ENDED ~~MARCH 31,~~SEPTEMBER 30, 2020 AND 2019 (UNAUDITED)
	STATEMENTS OF CASH FLOWS FOR THE ~~THREE~~NINE MONTHS ENDED ~~MARCH 31,~~SEPTEMBER 30, 2020 AND 2019 (UNAUDITED)
	NOTES TO FINANCIAL STATEMENTS AS OF ~~MARCH 31,~~SEPTEMBER 30, 2020 (UNAUDITED)	1

ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	1011

ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	1417

ITEM 4.	CONTROLS AND PROCEDURES	1417

PART II.	OTHER INFORMATION

ITEM 1	LEGAL PROCEEDINGS	1418

ITEM 1A.	RISK FACTORS	1418

ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	1518

ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	15 18

ITEM 4.	MINE SAFETY DISCLOSURES	15 18

ITEM 5.	OTHER INFORMATION	1518

ITEM 6.	EXHIBITS	1519

SIGNATURES		1620

	March 31,		December 31,		September 30,		December 31,
	2020		2019		2020		2019
	(unaudited)				(unaudited)
ASSETS
Current assets:
Cash	$	2,867,156	$	3,280,289
Cash and cash equivalents					$	5,255,957	$	3,280,289
Certificates of deposit		3,163,163		2,697,000		1,193,604		2,697,000
Equity investment in mutual funds		499,610		500,642		502,847		500,642
Accounts receivable		77,685		102,786		80,210		102,786
Prepaid expense and other assets		148,686		39,731		53,852		39,731
Total current assets		6,756,300		6,620,448		7,086,470		6,620,448
Property and equipment, net		9,241,556		9,242,082		9,235,403		9,242,082
Total assets	$	15,997,856	$	15,862,530	$	16,321,873	$	15,862,530

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Trade payables and accrued expenses		128,353		62,253		86,367		62,253
Unearned revenue		167,325		165,158		248,611		165,158
Income tax payable		8,677		-		31,550		-
Total current liabilities		304,355		227,411		366,528		227,411
Deferred income tax payable		187,664		187,664		187,664		187,664
Total liabilities		492,019		415,075		554,192		415,075

Stockholders' equity:
Common stock, 3,000,000 authorized, no par value, 1,942,495 issued and outstanding as of March 31, 2020 and December 31, 2019		59,335		59,335
Common stock, 3,000,000 authorized, no par value, 1,942,495 issued and outstanding as of September 30, 2020 and December 31, 2019						59,335		59,335
Retained earnings		15,446,502		15,388,120		15,708,346		15,388,120
Total stockholders' equity		15,505,837		15,447,455		15,767,681		15,447,455
Total liabilities and stockholders' equity	$	15,997,856	$	15,862,530	$	16,321,873	$	15,862,530

	Three Months Ended March 31,						Three Months Ended September 30,					Nine Months Ended September 30,
	2020			2019			2020			2019		2020			2019

Revenues:
Oil and gas	$	115,050		$	94,228		$	50,811		$	174,097	$	233,789		$	408,029
Timber sales		7,888			14,481			59,416			16,717		71,052			31,198
Surface revenue		47,870			35,183			41,032			27,940		196,340			130,644
Surface revenue - related party		9,583			9,583			9,583			9,583		28,749			28,749
Total revenue		180,391			153,475			160,842			228,337		529,930			598,620
Costs, expenses and (gains):
Oil and gas costs		11,737			14,524			5,226			20,196		28,034			48,364
Timber costs		2,451			4,397			666			9,292		3,870			14,376
Surface costs		-			578			198			581		456			1,274
General and administrative expense		143,121			120,035			121,426			143,198		457,637			471,668
Depreciation expense		234			507			1,326			507		1,793			1,517
Gain on sale of land		(33,107	)		(75,926	)		(41,331	)		-		(295,238	)		(80,876	)
Total costs, expenses and (gains)		124,436			64,115			87,511			173,774		196,552			456,323
Income from operations		55,955			89,360			73,331			54,563		333,378			142,297

Interest income		17,875			26,524			6,914			28,512		55,170			84,524
Income before income taxes		73,830			115,884			80,245			83,075		388,548			226,821
Federal and state income tax expense:
Current		15,448			10,163			30,191			25,105		68,322			39,859
Deferred		-			-			-			-		-			-
Total income taxes		15,448			10,163			30,191			25,105		68,322			39,859
Net income	$	58,382		$	105,721		$	50,054		$	57,970	$	320,226		$	186,962
Dividends paid		-			-
Net income available to common shareholders	$	58,382		$	105,721

Per common stock, basic and diluted
Net income	$	0.03		$	0.05
Dividends	$	-		$	-
Earnings per share, basic and diluted							$	0.03		$	0.03	$	0.16		$	0.10

Weighted average shares outstanding, basic and diluted		1,942,495			1,942,495			1,942,495			1,942,495		1,942,495			1,942,495

	Common Stock				Retained		Total
	Shares		Amount		Earnings		Equity
Balances, December 31, 2019		1,942,495	$	59,335	$	15,388,120	$	15,447,455
Net income		-		-		58,382		58,382
Balances, March 31, 2020 (unaudited)		1,942,495	$	59,335	$	15,446,502	$	15,505,837

	Common Stock				Retained		Total
	Shares		Amount		Earnings		Equity
Balances, June 30, 2020 (unaudited)		1,942,495	$	59,335	$	15,658,292	$	15,717,627
Net income		-		-		50,054		50,054
Balances, September 30, 2020 (unaudited)		1,942,495	$	59,335	$	15,708,346	$	15,767,681

	Three Months Ended						Nine Months Ended
	March 31,						September 30,
	2020			2019			2020			2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	58,382		$	105,721		$	320,226		$	186,962
Less non-cash expenses included in net income:
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense		234			507			1,793			1,517
Depletion expense		134			109			683			288
Gain on sale of land		(33,107	)		(75,926	)		(295,238	)		(80,876	)
Unrealized gain on equity investment in mutual funds		3,010			(245	)
Unrealized loss (gain) on equity investment in mutual funds								1,503			(246	)
Changes in operating assets and liabilities:
Increase (decrease) in current assets		(83,854	)		(47,609	)
(Increase) decrease in current assets								8,455			(42,297	)
Increase (decrease) in current liabilities		76,944			(22,567	)		139,117			9,966
Net cash provided by (used in) operating activities		21,743			(40,010	)
Net cash provided by operating activities								176,539			75,314

CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of certificates of deposit		(1,210,163	)		(489,000	)		(1,985,767	)		(1,468,000	)
Proceeds from maturity of certificates of deposit		744,000			710,000			3,489,163			2,390,000
Purchases of mutual funds		(1,978	)		(1,458	)		(3,708	)		(4,365	)
Costs of reforesting timber		-			(17,970	)		-			(22,560	)
Proceeds from the sale of fixed assets		33,265			104,235			299,441			109,235
Net cash provided by (used in) investing activities		(434,876	)		305,807
Net cash provided by investing activities								1,799,129			1,004,310

NET INCREASE IN CASH AND RESTRICTED CASH		(413,133	)		265,797
Cash and restricted cash, beginning of the period		3,280,289			1,860,736
Cash and restricted cash, end of the period	$	2,867,156		$	2,126,533
NET INCREASE IN CASH AND CASH EQUIVALENTS								1,975,668			1,079,624
Cash and cash equivalents, beginning of the period								3,280,289			1,860,736
Cash and cash equivalents, end of the period							$	5,255,957		$	2,940,360

SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for interest	$	-		$	-		$	-		$	-
Cash paid for income taxes	$	-		$	60,500		$	30,000		$	67,107

	Three Months Ended March 31,		Year Ended December 31,

	2019		2019
Identifiable Assets, net of accumulated depreciation
Timber	$	2,188,460	$	2,188,594
General corporate assets		13,809,396		13,673,936
Total		15,997,856		15,862,530

Capital expenditures:
Timber		-		26,815
Surface		-		-
General corporate assets		-		-
Total segment costs and expenses		-		26,815

Depreciation and depletion
Oil and gas		-		-
Timber		134		611
General corporate assets		234		1,751
Total	$	368	$	2,362

	Nine Months Ended September 30,		Year Ended December 31,
	2020		2019
Identifiable Assets, net of accumulated depreciation
Timber	$	2,187,911	$	2,188,594
General corporate assets		14,133,962		13,673,936
Total		16,321,873		15,862,530

Capital expenditures:
Timber		-		26,815
Surface		-		-
General corporate assets		-		-
Total segment costs and expenses		-		26,815

Depreciation and depletion
Oil and gas		-		-
Timber		683		611
General corporate assets		1,793		1,751
Total	$	2,476	$	2,362

	Three Months Ended March 31,				Nine Months Ended September 30,
Count	2020		2019		2020		2019
1	$	41,686	$	30,322	$	74,326	$	82,644
2		38,333		19,674		47,452		46,267
3		15,651		16,644		40,289		41,213
4		14,307		16,458		38,333		38,333
5		14,172		10,562		32,108		38,246

(1)	Before deduction of production costs and severance taxes
(2)	Excludes plant products

	●	We depend on third parties for the generation of revenues, such as exploration and production companies, land management companies, surface lessees and timber mills. If any of these businesses limit or suspend their operations due to the pandemic or its economic effects, our operations could be materially, adversely affected. We may be unable to determine whether declines in income-producing activities on our lands are the result of the pandemic or other conditions.

	3.2	Amendment to Articles of Incorporation of the Registrant (incorporated by reference to Exhibit 3.2 to Form 10-K (File No. 001-31905) for the year ended December 31, 2003 filed on March 19, 2004).

	3.3	Articles of Amendment to the Restated Articles of Incorporation of the Registrant (incorporated by reference to Exhibit 3.3 to Form 10-K (File No. 001-31905) for the year ended December 31, 2018 filed on March 21, 2019).

	3.4	Amended and Restated By-Laws of the Registrant (incorporated by reference to Exhibit 3.1 to Form 8-K (File No. 001-31905) filed on August 9, 2019).

	10.1+	Executive Employment Agreement effective as of July 15, 2020 (incorporated by reference to Exhibit 10.1 to Form 8-K (File No. 001-31905) filed on July 16, 2020.)

	31*	Certification of ~~Lee~~ W. ~~Boyer,~~Gray Stream, President and Treasurer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

	32**	Certification of ~~Lee~~ W. ~~Boyer,~~Gray Stream, President and Treasurer, pursuant to 18 U.S.C. Section 1350 and Section 906 of the Sarbanes-Oxley Act of 2002.

	101.INS	XBRL Instance

	*	Filed herewith
	**	Furnished herewith
	+	Management contract or compensatory plan or arrangement

~~CKX LANDS, INC.~~ ~~By:~~ /s/ ~~Lee~~ W. ~~Boyer~~Gray Stream
~~Lee~~ W. ~~Boyer~~Gray Stream
President and Treasurer
(Principal executive and financial officer)

	Three Months Ended March 31,										Three Months Ended September 30,
	2020		2019		Change from Prior Year			Percent Change from Prior Year			2020		2019		Change from Prior Year			Percent Change from Prior Year
Oil	$	96,225	$	37,999	$	58,226			153.2	%	$	46,968	$	145,511	$	(98,543	)		(67.7	)%
Gas		17,977		52,222		(34,245	)		(65.6	)%		3,507		28,029		(24,522	)		(87.5	)%
Lease and geophysical		848		4,007		(3,159	)		(78.8	)%		336		557		(221	)		(39.7	)%
Total revenues	$	115,050	$	94,228	$	20,822			22.1	%	$	50,811	$	174,097	$	(123,286	)		(70.8	)%

	Nine Months Ended September 30,
	2020		2019		Change from Prior Year			Percent Change from Prior Year
Oil	$	204,426	$	304,953	$	(100,527	)		(33.0	)%
Gas		27,569		97,178		(69,609	)		(71.6	)%
Lease and geophysical		1,794		5,898		(4,104	)		(69.6	)%
Total revenues	$	233,789	$	408,029	$	(174,240	)		(42.7	)%

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Non-accelerated filer

Smaller reporting company

Emerging growth company