Note 9 - Segment Reporting

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note

9

:

Segment Reporting

The Company’s operations are classified into

three

principal operating segments that are all located in the United States: oil and gas, surface and timber. The Company’s reportable business segments are strategic business units that offer income from different products. They are managed separately due to the unique aspects of each area.

The tables below present financial information for the Company’s

three

operating business segments:

	Year Ended
	December 31,
	2018		2017
Revenues:
Oil and gas	$	581,463	$	609,122
Timber sales		454,177		224,111
Surface revenue		159,123		311,352
Total segment revenues		1,194,763		1,144,585
Cost and expenses:
Oil and gas costs		63,231		62,315
Timber costs		45,640		35,692
Surface costs		23,636		43,929
Total segment costs and expenses		132,507		141,936
Income from operations:
Oil and gas		518,232		546,807
Timber		408,537		188,419
Surface		135,487		267,423
Total segment income from operations		1,062,256		1,002,649
Other income (expense) before income taxes		403,597		(416,562	)
Income before income taxes	$	1,465,853	$	586,087

	Year Ended
	December 31,
	2018		2017
Identifiable Assets, net of accumulated depreciation
Timber	$	2,162,390	$	2,119,180
General corporate assets		13,439,611		12,604,557
Total		15,602,001		14,723,737
Capital expenditures:
Timber		45,067		62,473
Surface		4,900		-
General corporate assets		5,471		92,157
Total segment costs and expenses		55,438		154,630
Depreciation and depletion
Oil and gas		1,858		-
Timber		-		15,661
General corporate assets		2,027		1,191
Total	$	3,885	$	16,852

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. The Company evaluates performance based on income or loss from operations before income taxes excluding nonrecurring gains and losses on equity investment. 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.