CKX Lands, Inc. (CKX): Business Model Canvas [11-2024 Updated]

CKX Lands, Inc. (CKX) operates a multifaceted business model that capitalizes on its extensive land holdings in southwest Louisiana. This innovative approach combines oil and gas leasing, timber management, and surface leasing to create diverse revenue streams while promoting sustainability. Interested in how CKX navigates its partnerships, resources, and customer relationships to generate passive income? Read on to explore the intricate components of CKX's Business Model Canvas.

CKX Lands, Inc. (CKX) - Business Model: Key Partnerships

Collaborations with oil and gas operators

CKX Lands, Inc. has established significant collaborations with various oil and gas operators. For the three months ended September 30, 2024, CKX generated $73,340 in oil and gas revenues, marking an increase of 53.0% from $47,924 in the same period of 2023. This revenue was derived from 64 oil and gas wells, up from 58 wells in the comparable prior year.

Partnerships with timber management companies

The company has also engaged with timber management companies to optimize its forestry resources. Timber revenues for the nine months ended September 30, 2024, amounted to $21,158, a significant decline of 83.9% compared to $131,048 in the same period of 2023. This drop is attributed to normal business variations in timber harvesting by customers.

Relationships with environmental consultants

CKX maintains relationships with environmental consultants to ensure compliance with regulations and sustainability practices. This collaboration is vital considering the ecological implications associated with land management and resource extraction. The costs associated with timber management, including environmental assessments, increased significantly, reflecting the commitment to sustainable practices.

Legal partnerships for real estate and mineral rights

CKX has established legal partnerships to manage its real estate and mineral rights effectively. For instance, in a recent lease agreement with Stream Wetlands Services, LLC, CKX received a one-time payment of $38,333 for a 25-year lease. This agreement includes contingent payments based on revenue generated from activities on the leased property, with a guaranteed minimum payment of $500,000 if revenue thresholds are not met.

Key Partnership Type	Details	Financial Impact
Oil and Gas Operators	64 wells operated	$73,340 revenue (Q3 2024)
Timber Management Companies	Partnership for timber harvesting	$21,158 revenue (9M 2024)
Environmental Consultants	Compliance and sustainability	N/A
Legal Partnerships	Lease with Stream Wetlands	$38,333 one-time payment

Overall, CKX Lands, Inc. leverages these key partnerships to enhance its operational effectiveness and financial performance, adapting to market demands and environmental standards.

CKX Lands, Inc. (CKX) - Business Model: Key Activities

Leasing land for oil and gas production

CKX Lands, Inc. generates significant income through leasing its land for oil and gas production. For the nine months ending September 30, 2024, oil and gas revenues amounted to $316,986, reflecting a 59.7% increase from $198,480 during the same period in 2023. The company received revenues from 64 wells in 2024 compared to 66 wells in 2023.

The oil and gas segment accounted for approximately 24% of total revenues for the nine months ended September 30, 2024.

Timber management and harvesting

Timber management is another critical activity for CKX. Timber revenues for the nine months ended September 30, 2024, were $21,158, a significant decrease of 83.9% from $131,048 in the same period of the previous year. This decline is attributed to normal business variations in customer harvesting patterns.

Timber costs also increased, amounting to $15,706 for the nine months ended September 30, 2024, compared to $4,805 in 2023, indicating a rise in management costs.

Surface leasing for agricultural and recreational use

CKX engages in surface leasing, which includes agricultural and recreational uses. Surface revenues reached $1,002,406 for the nine months ended September 30, 2024, representing a dramatic 115.3% increase from $465,645 in 2023. The rise in surface revenue is largely due to three natural gas pipeline right-of-way agreements.

Surface costs were minimal, with only $240 incurred during the nine months of 2024, reflecting efficient management of surface leasing activities.

Monitoring and managing mineral rights

CKX actively monitors and manages its mineral rights, which are integral to its revenue generation. The company has no outstanding debt as of September 30, 2024, and current assets totaled $9,460,950 against current liabilities of $174,134. This financial positioning allows CKX to effectively manage its mineral rights and respond to market opportunities.

The company's net income for the nine months ended September 30, 2024, was $218,065, compared to a loss of $98,679 in 2023. This turnaround is indicative of effective management of its core activities, including mineral rights management.

Activity	Revenue (2024)	Revenue (2023)	Percentage Change
Oil and Gas	$316,986	$198,480	59.7%
Timber	$21,158	$131,048	(83.9%)
Surface Leasing	$1,002,406	$465,645	115.3%

CKX Lands, Inc. (CKX) - Business Model: Key Resources

Extensive land holdings in southwest Louisiana

CKX Lands, Inc. owns approximately 35,575 acres of land in southwest Louisiana, which serves as a critical asset for the company. The land is primarily used for mineral extraction, timber production, and surface leasing activities. The value of these land holdings is estimated at $6,815,711 as of September 30, 2024 .

Mineral rights and royalty interests

CKX benefits from mineral rights and royalty interests that contribute significantly to its revenue streams. For the nine months ended September 30, 2024, oil and gas revenues amounted to $316,986, representing a 59.7% increase compared to $198,480 for the same period in 2023. This revenue was derived from 64 wells. The company's royalty income is primarily influenced by fluctuations in oil and gas production on its lands.

Timber resources and management expertise

CKX manages approximately 2,250 acres of timber resources, with timber revenue of $21,158 for the nine months ended September 30, 2024, down from $131,048 in 2023. The decrease in timber revenue is attributed to normal business variations in harvesting activities. The company employs management expertise in sustainable forestry practices to optimize timber production and ensure long-term viability of its timberland.

Legal and consulting relationships

CKX maintains strong legal and consulting relationships that support its operations and strategic initiatives. These relationships are crucial for navigating regulatory requirements, managing legal transactions involving land rights, and optimizing lease agreements with oil and gas operators. The company's general and administrative expenses were $1,233,209 for the nine months ended September 30, 2024, reflecting the costs associated with legal and consulting services.

Key Resource	Description	Value/Revenue (2024)
Land Holdings	Approx. 35,575 acres in southwest Louisiana	$6,815,711
Oil and Gas Revenues	Revenue from mineral rights and royalties	$316,986
Timber Resources	Management of timberland for sustainable production	$21,158
General and Administrative Expenses	Legal and consulting relationships	$1,233,209

As of September 30, 2024, CKX Lands, Inc. has positioned itself to leverage its key resources effectively, contributing to its operational sustainability and growth potential in the market.

CKX Lands, Inc. (CKX) - Business Model: Value Propositions

Passive income generation from mineral leases

CKX Lands, Inc. generates passive income through mineral leases, primarily from oil and gas production. For the nine months ended September 30, 2024, the company reported oil and gas revenues of $316,986, which represented a 59.7% increase from $198,480 in the same period of 2023. CKX received revenues from 64 wells during this period, compared to 66 wells in the previous year.

Sustainable timber management practices

CKX is committed to sustainable timber management, which is reflected in its revenue from timber sales. For the nine months ended September 30, 2024, timber sales amounted to $21,158, a significant decline of 83.9% from $131,048 in the same period of 2023. This decrease was attributed to normal business variations in timber harvesting by customers.

Diverse revenue streams from oil, gas, and timber

The company's revenue streams are diverse, comprising oil and gas, timber, and surface revenues. The total revenue for the nine months ended September 30, 2024, was $1,340,550, an increase of 68.6% from $795,173 for the same period in 2023. Surface revenue specifically surged to $1,002,406, representing a 115.3% increase from $465,645 in the prior year. This growth was driven by natural gas pipeline right-of-way agreements, which are expected to continue generating income due to increased economic activity in the region.

Strategic land management in a growing region

CKX's strategic land management practices position it well within a growing economic region. The company reported current assets of $9,460,950 and total assets of $18,725,029 as of September 30, 2024. This asset management enables CKX to capitalize on growth opportunities through land acquisitions and other strategic investments.

Revenue Source	Q3 2024 Revenue	Q3 2023 Revenue	Change (%)
Oil and Gas	$73,340	$47,924	53.0%
Timber Sales	$18,883	$118,365	(84.0%)
Surface Revenue	$79,046	$92,742	(14.8%)
Total Revenue	$171,269	$259,031	(33.9%)

CKX Lands, Inc. (CKX) - Business Model: Customer Relationships

Long-term leases with oil and gas operators

CKX Lands, Inc. engages in long-term leasing agreements with various oil and gas operators. For the three months ended September 30, 2024, CKX received oil and gas revenues from 64 wells, up from 58 wells in the same period of 2023. The revenue from oil and gas amounted to $73,340, representing a 53% increase compared to $47,924 in the prior year. The total revenues for oil and gas for the nine months ended September 30, 2024, reached $316,986, a 59.7% increase from $198,480 in 2023.

Ongoing engagement with timber buyers

CKX maintains continuous engagement with timber buyers, although timber revenue saw a significant decline. For the three months ended September 30, 2024, timber sales were $18,883, down from $118,365 in the same period of 2023, marking an 84% decrease. Over the nine-month period, timber sales were $21,158 compared to $131,048 in 2023, indicating an 83.9% decline. This decrease is attributed to fluctuations in customer harvesting activities.

Transparency in financial reporting to investors

CKX emphasizes transparency in its financial reporting, which is reflected in its detailed disclosures in quarterly and annual reports. As of September 30, 2024, the company reported total assets of $18,725,029 and stockholders' equity of $18,550,895. The company's current assets included cash and cash equivalents totaling $3,318,637, down from $7,546,689 at the end of the previous year. The management provides thorough insights into revenue streams, costs, and overall financial health to its investors.

Responsive communication with stakeholders

CKX maintains responsive communication with its stakeholders, ensuring that inquiries are addressed promptly. The company reported a net income of $54,116 for the three months ended September 30, 2024, compared to $35,732 in the same period of 2023. This reflects the company's commitment to stakeholder engagement and maintaining strong relationships with its investors and partners.

Metrics	Q3 2024	Q3 2023	Change (%)
Oil and Gas Revenue	$73,340	$47,924	+53%
Timber Revenue	$18,883	$118,365	-84%
Total Revenue	$171,269	$259,031	-33.9%
Net Income	$54,116	$35,732	+51%
Total Assets	$18,725,029	$18,813,406	-0.5%
Stockholders' Equity	$18,550,895	$18,318,058	+1.3%

CKX Lands, Inc. (CKX) - Business Model: Channels

Direct leasing agreements with operators

CKX Lands, Inc. generates substantial income through direct leasing agreements with oil and gas operators. As of September 30, 2024, oil and gas revenues amounted to $316,986 for the nine months ended, marking a 59.7% increase from $198,480 in the same period of 2023. The company received revenues from 64 wells in 2024 compared to 66 wells in 2023, indicating stability in their leasing agreements despite fluctuations in well numbers.

Timber sales through regional markets

Timber sales are another crucial channel for CKX. For the three months ended September 30, 2024, timber revenue was reported at $18,883, significantly down from $118,365 in 2023, reflecting a decrease of 84% due to normal business variations in timber customers’ harvesting. Over the nine-month period, timber sales dropped from $131,048 in 2023 to $21,158 in 2024, an 83.9% decline.

Period	Timber Revenue (2024)	Timber Revenue (2023)	Percentage Change
Three Months Ended September 30	$18,883	$118,365	-84.0%
Nine Months Ended September 30	$21,158	$131,048	-83.9%

Real estate transactions for land sales

CKX engages in real estate transactions, primarily focusing on land sales. In the nine months ending September 30, 2024, the gain on the sale of land was reported at $140,582, a decline from $149,992 during the same period in 2023. The transaction involved the sale of a 25-acre ranchette lot in Calcasieu Parish. There were no land sales recorded for the three months ended September 30, 2024 and 2023.

Investor relations through financial reporting

CKX maintains strong investor relations through consistent and transparent financial reporting. As of September 30, 2024, total current assets were $9,460,950, with current liabilities at $174,134. The company reported net income of $218,065 for the nine months ended September 30, 2024, compared to a net loss of $98,679 in the same period of the previous year. This financial performance highlights CKX's commitment to providing stakeholders with clear financial insights.

CKX Lands, Inc. (CKX) - Business Model: Customer Segments

Oil and gas exploration companies

CKX Lands, Inc. derives a significant portion of its revenue from oil and gas exploration companies. For the nine months ended September 30, 2024, oil and gas revenues totaled $316,986, representing a 59.7% increase from $198,480 in the same period of 2023. The company received oil and gas revenues from 64 wells, compared to 66 wells in the previous year. Oil and gas revenues accounted for 24% of total revenues.

Timber buyers and processors

Timber sales are another crucial segment for CKX. For the three months ended September 30, 2024, timber revenue was $18,883, down from $118,365 in the same period in 2023, marking an 84% decrease. For the nine months ended September 30, 2024, timber sales amounted to $21,158, significantly lower than $131,048 in the previous year. This decline is attributed to normal business variations in timber harvesting.

Investors seeking passive income opportunities

CKX offers investment opportunities that appeal to investors looking for passive income. The company’s total revenues for the nine months ended September 30, 2024, reached $1,340,550, up from $795,173 in 2023, reflecting a growth of 68.6%. The increase in surface revenue, which totaled $1,002,406 for the nine months ended September 30, 2024, compared to $465,645 in 2023, is particularly attractive to investors. This segment is bolstered by agreements related to natural gas pipelines, driven by economic development in the area.

Local agricultural and recreational users

CKX also serves local agricultural and recreational users. The company’s land management activities support these users by providing access to land for agricultural purposes and recreational activities. While specific revenue figures for this segment are not delineated, the overall surface revenues, which include income from leasing land for various uses, reached $1,002,406 for the nine months ended September 30, 2024.

Customer Segment	Revenue (2024)	Revenue (2023)	Change (%)	Notes
Oil and gas exploration companies	$316,986	$198,480	59.7%	Revenue from 64 wells
Timber buyers and processors	$21,158	$131,048	(83.9%)	Significant decrease due to harvesting variations
Investors seeking passive income	$1,340,550	$795,173	68.6%	Growth in surface revenue
Local agricultural and recreational users	$1,002,406	$465,645	115.3%	Driven by natural gas pipeline agreements

CKX Lands, Inc. (CKX) - Business Model: Cost Structure

Operational costs for land management

For the nine months ended September 30, 2024, CKX Lands, Inc. reported total operational costs related to land management amounting to approximately $52,135, which includes costs associated with oil and gas, timber, and surface operations.

Legal and consulting fees

The company incurs legal and consulting fees that are categorized under general and administrative expenses. For the nine months ended September 30, 2024, these fees contributed to a total general and administrative expense of $1,233,209, which reflects an increase from the previous year's expense of $1,147,562.

Maintenance costs for timber resources

Timber costs for the nine months ended September 30, 2024, totaled $15,706, a significant increase from $4,805 in the same period of the previous year. This increase is attributed to enhanced management practices and site preparations.

General administrative expenses

General administrative expenses for CKX Lands, Inc. decreased by $79,217 for the three months ended September 30, 2024, compared to the same period in 2023. However, for the nine months, these expenses increased by $85,647, primarily due to land research advisory fees. The breakdown of general and administrative expenses is as follows:

Expense Type	2024 (9 Months)	2023 (9 Months)
General and Administrative Expenses	$1,233,209	$1,147,562
Timber Management Costs	$15,706	$4,805
Legal and Consulting Fees	Included in G&A	Included in G&A
Total Operational Costs	$52,135	$31,301

CKX Lands, Inc. (CKX) - Business Model: Revenue Streams

Oil and gas royalties from production

For the nine months ended September 30, 2024, CKX Lands, Inc. generated $316,986 in oil and gas revenue, which represents a 59.7% increase from $198,480 for the same period in 2023. Oil and gas revenues accounted for 24% of total revenues in 2024, with income derived from 64 wells .

Period	Oil and Gas Revenue	Wells	% of Total Revenue
2024 (9 months)	$316,986	64	24%
2023 (9 months)	$198,480	66	25%

Timber sales from managed forests

Timber sales for the nine months ended September 30, 2024 totaled $21,158, a significant decrease of 83.9% from $131,048 in the prior year. The reduction in timber revenue is attributed to normal business variations in harvesting by timber customers .

Period	Timber Sales	% Change from Prior Year
2024 (9 months)	$21,158	-83.9%
2023 (9 months)	$131,048	N/A

Surface rentals from land leases

Surface revenue saw a dramatic increase to $1,002,406 for the nine months ended September 30, 2024, compared to $465,645 in 2023, marking a growth of 115.3%. This surge is primarily due to three natural gas pipeline right-of-way agreements that CKX established on its property .

Period	Surface Revenue	% Change from Prior Year
2024 (9 months)	$1,002,406	115.3%
2023 (9 months)	$465,645	N/A

Gains from land sales and other transactions

CKX Lands, Inc. reported a gain on the sale of land amounting to $140,582 for the nine months ending September 30, 2024, down from $149,992 the previous year. The 2024 gain was derived from the sale of a 25-acre lot .

Period	Gain on Sale of Land
2024 (9 months)	$140,582
2023 (9 months)	$149,992

Updated on 16 Nov 2024

Resources:

1. CKX Lands, Inc. (CKX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of CKX Lands, Inc. (CKX)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View CKX Lands, Inc. (CKX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.