Note 8 - Segment Reporting

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note

8

:      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:

	Years Ended December 31,
	2019			2018
Revenues:
Oil and gas	$	500,426		$	576,976
Timber sales		72,847			454,177
Surface revenue		237,998			163,610
Total segment revenues		811,271			1,194,763
Cost and expenses:
Oil and gas costs		57,454			63,231
Timber costs		21,144			45,640
Surface costs		1,274			23,636
Total segment costs and expenses		79,872			132,507
Income from operations:
Oil and gas		442,972			513,745
Timber		51,703			408,537
Surface		236,724			139,974
Total segment income from operations		731,399			1,062,256
Other income (expense) before income taxes		(430,211	)		403,597
Income before income taxes	$	301,188		$	1,465,853

	Years Ended December 31,
	2019		2018
Identifiable Assets, net of accumulated depreciation
Timber	$	2,188,594	$	2,162,390
General corporate assets		13,673,936		13,439,611
Total		15,862,530		15,602,001
Capital expenditures:
Timber		26,815		45,067
Surface		-		4,900
General corporate assets		-		5,471
Total segment costs and expenses		26,815		55,438
Depreciation and depletion
Oil and gas		-		-
Timber		611		1,858
General corporate assets		1,751		2,027
Total	$	2,362	$	3,885

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.