Ckx Lands Inc
CKX Lands, Inc. is a Louisiana corporation organized in 1930 as Calcasieu Real
Estate & Oil Co., Inc. to receive non-producing mineral royalties spun off
by a southwest Louisiana bank. Over the years, as some of the royalties yielded
oil and gas income, the Company used the proceeds to purchase land. On May 17,
2005, the Company changed its name from Calcasieu Real Estate & Oil Co.,
Inc. to CKX Lands, Inc. The primary reason for the change was to help clarify
that the Company is not directly involved in oil and gas exploration or operations.
As used herein, the “Company” or “CKX” refers to CKX
Lands, Inc.
The Company owns land, timber, and mineral interests and collects income through
its ownership in the form of oil and gas royalties, timber sales, and surface
leases for farming, right of way and other uses. The Company actively manages
its timber lands, however the Company is not involved in the exploration or
production of oil and gas nor does it actively farm for agricultural purpose
its lands.
CKX owns a 100% interest in 7,521 acres and undivided interests ranging from
0.260% to 77.778% in 37,739 acres, including a 16.667% interest in 33,486 acres
and a 50.000% interest in 1,696 acres, resulting in an ownership of approximately
14,326 net acres.
CKX does not perform or cause to have performed oil and gas producing activities
inasmuch as: (1) we do not search for crude oil or natural gas in their natural
states; (2) we do not acquire property for the purpose of exploration or the
removing of oil and gas; and (3) we are not involved in construction, drilling
and/or production activities necessary to retrieve oil and gas.
Oil and gas royalties are paid by the operators who own the wells. Timber income
is paid by the highest bidder for the timber. There are several mills in the
immediate area that compete for timber. Surface income is received for farming,
right of way or other surface land uses. The prices paid for oil, gas and timber
depend on national and international market conditions. Prices paid for surface
leases depend on regional and local market conditions.
The source of all raw materials for the Company is the land itself. All oil
and gas income will eventually deplete, but we have no access to this depletion
information. Timber income and agriculture income are renewable resources. The
Company’s three reportable business segments are oil and gas, timber,
and surface. Segment revenue and related business segment financial information
are included in the notes to financial statements.
