Note 5 - Segment Reporting

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note

5:

      Segment Reporting

The Company’s operations are classified into

three

principal operating segments that are all located in the United States: oil and gas, timber and surface. 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:

	Three Months Ended March 31,
	2020			2019
Revenues:
Oil and gas	$	115,050		$	94,228
Timber sales		7,888			14,481
Surface revenue		57,453			44,766
Total segment revenues		180,391			153,475
Cost and expenses:
Oil and gas costs		11,737			14,524
Timber costs		2,451			4,397
Surface costs		-			578
Total segment costs and expenses		14,188			19,499
Income from operations:
Oil and gas		103,313			79,704
Timber		5,437			10,084
Surface		57,453			44,188
Total segment income from operations		166,203			133,976
Other income (expense) before income taxes		(92,373	)		(18,092	)
Income before income taxes	$	73,830		$	115,884

	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

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.