The Reserve Petroleum Company Reports 66% Increase in Net Income for Six Months Ended June 30, 2025

The Reserve Petroleum Company reported a significant increase in its financial performance for the six months ended June 30, 2025, with net income attributable to common stockholders rising 66% to $2,974,716, compared to $1,786,801 in the same period of 2024. This translates to a net income per share of $19.60, up from $11.53. Operating revenues also saw a 4% increase, reaching $7,805,705, driven primarily by a notable rise in natural gas sales, which increased by 80% to $2,061,034, while oil sales decreased by 9% to $5,089,607 due to a drop in average prices despite an increase in volume sold.

In terms of operational metrics, the company experienced a 10% increase in the volume of oil sold, totaling 83,398 barrels, while the average price per barrel fell to $61.03 from $76.88. The increase in natural gas sales was attributed to both a rise in volume and price, with the average price per thousand cubic feet increasing to $3.49 from $2.64. The company also reported a gain of $615,375 from the sale of unproved, non-producing leasehold properties, contributing to the overall increase in income.

The company’s balance sheet showed total assets of $38,359,089 as of June 30, 2025, an increase from $36,379,773 at the end of 2024. Current assets decreased slightly to $9,234,793, primarily due to a reduction in accounts receivable, which fell by 27% to $2,037,867, reflecting lower oil and gas receivables. Total liabilities increased to $6,274,319, with long-term liabilities rising due to an increase in deferred tax liabilities. The company’s equity also grew, reaching $32,084,770, up from $30,639,658, bolstered by retained earnings.

Strategically, the company has focused on its core oil and gas operations while managing a diverse investment portfolio. Notably, the termination of the water well drilling agreement with TWS South, LLC, in April 2024, has eliminated future revenues from that segment, but the company has redirected its focus towards oil and gas production. The company’s investments in equity securities increased by 26% to $3,147,407, reflecting both net purchases and market value appreciation.

Looking ahead, The Reserve Petroleum Company anticipates continued fluctuations in oil and natural gas prices, which may impact future revenues. Management remains focused on optimizing operational efficiencies and capitalizing on market opportunities while maintaining a strong balance sheet. The company is committed to leveraging its assets and investments to drive growth and enhance shareholder value in the coming periods.