Panhandle Oil and Gas Inc. was founded in Range, Texas County, Oklahoma, in
1926, as Panhandle Cooperative Royalty Company. The Company operated as a cooperative
until 1979, when it merged into Panhandle Royalty Company, and its shares became
publicly traded. On April 2, 2007, the Company’s name was changed to Panhandle
Oil and Gas Inc.
While operating as a cooperative, the Company distributed most of its net income
to shareholders as cash dividends. Upon conversion to a public company in 1979,
although still paying dividends, the Company began to retain a substantial part
of its cash flow to participate with a working interest in the drilling of wells
on its mineral acreage and to purchase additional mineral acreage. Several acquisitions
of additional mineral and leasehold acreage and small companies were made from
1980 to the present time.
The Company is involved in the acquisition, management and development of non-operated
oil and natural gas properties, including wells located on the Company’s
mineral and leasehold acreage. Panhandle’s mineral and leasehold properties
are located primarily in Arkansas, New Mexico, North Dakota, Oklahoma and Texas.
The majority of the Company’s oil, NGL and natural gas production is from
wells located in Arkansas, Oklahoma and Texas.
The Company’s principal products, in order of revenue generated, are
natural gas, crude oil and NGL. These products are sold to various purchasers,
including pipeline and marketing companies, which service the areas where the
Company’s producing wells are located. Since the Company does not operate
any of the wells in which it owns an interest, it relies on the operating expertise
of numerous companies that operate wells in which the Company owns interests.
This includes expertise in the drilling and completion of new wells, producing
well operations and, in most cases, the marketing or purchasing of production
from the wells. Oil, NGL and natural gas sales are principally handled by the
well operator. Payment for oil, NGL and natural gas sold is received by the
Company from the well operator or the contracted purchaser.
Prices of oil, NGL and natural gas are dependent on numerous factors beyond
the control of the Company, including supply and demand, competition, weather,
international events and circumstances, actions taken by OPEC, and economic,
political and regulatory developments. Since demand for natural gas is subject
to weather conditions, prices received for the Company’s natural gas production
are subject to seasonal variations.
4.56% 
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