OTCPK:RSRV

Stock Analysis Report

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Executive Summary

The Reserve Petroleum Company engages in oil and natural gas exploration and development, and mineral properties management primarily in Texas, Oklahoma, Kansas, Arkansas, and South Dakota.


Snowflake Analysis

Flawless balance sheet unattractive dividend payer.

Share Price & News

How has Reserve Petroleum's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RSRV's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

RSRV

5.8%

US Oil and Gas

2.9%

US Market


1 Year Return

-34.7%

RSRV

-31.3%

US Oil and Gas

8.9%

US Market

Return vs Industry: RSRV underperformed the US Oil and Gas industry which returned -31.6% over the past year.

Return vs Market: RSRV underperformed the US Market which returned 9.2% over the past year.


Shareholder returns

RSRVIndustryMarket
7 Day0%5.8%2.9%
30 Day0%9.8%10.6%
90 Day-28.9%-2.6%5.1%
1 Year-32.0%-34.7%-28.2%-31.3%11.4%8.9%
3 Year-43.5%-48.8%-28.6%-35.8%34.3%25.4%
5 Year-55.2%-61.2%-37.3%-46.7%60.7%42.7%

Price Volatility Vs. Market

How volatile is Reserve Petroleum's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Reserve Petroleum undervalued compared to its fair value and its price relative to the market?

0.65x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: RSRV ($128) is trading above our estimate of fair value ($64.23)

Significantly Below Fair Value: RSRV is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RSRV is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: RSRV is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RSRV's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RSRV is good value based on its PB Ratio (0.6x) compared to the US Oil and Gas industry average (0.7x).


Next Steps

Future Growth

How is Reserve Petroleum forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

51.0%

Forecasted Energy industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Reserve Petroleum has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Reserve Petroleum performed over the past 5 years?

4.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RSRV is currently unprofitable.

Growing Profit Margin: RSRV is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RSRV is unprofitable, but has reduced losses over the past 5 years at a rate of 4.2% per year.

Accelerating Growth: Unable to compare RSRV's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RSRV is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-19.8%).


Return on Equity

High ROE: RSRV has a negative Return on Equity (-5.62%), as it is currently unprofitable.


Next Steps

Financial Health

How is Reserve Petroleum's financial position?


Financial Position Analysis

Short Term Liabilities: RSRV's short term assets ($23.0M) exceed its short term liabilities ($263.9K).

Long Term Liabilities: RSRV's short term assets ($23.0M) exceed its long term liabilities ($3.1M).


Debt to Equity History and Analysis

Debt Level: RSRV is debt free.

Reducing Debt: RSRV has not had any debt for past 5 years.

Debt Coverage: RSRV has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: RSRV has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Reserve Petroleum's current dividend yield, its reliability and sustainability?

5.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RSRV's dividend (5.47%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: RSRV's dividend (5.47%) is in the top 25% of dividend payers in the US market (4.39%)


Stability and Growth of Payments

Stable Dividend: RSRV's dividend payments have been volatile in the past 10 years.

Growing Dividend: RSRV's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: RSRV is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

11.1yrs

Average management tenure


CEO

Cameron McLain (60yo)

11.08yrs

Tenure

US$209,319

Compensation

Mr. Cameron R. McLain has been the Chief Executive Officer of The Reserve Petroleum Company since May 19, 2009 and has been its President since May 20, 2008. Mr. McLain serves as an Advisory Director of Me ...


CEO Compensation Analysis

Compensation vs Market: Cameron's total compensation ($USD209.32K) is below average for companies of similar size in the US market ($USD589.00K).

Compensation vs Earnings: Cameron's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Kyle McLain
Chairman of the Board7.08yrsUS$206.67k7.73% $1.5m
Cameron McLain
CEO, President11.08yrsUS$209.32k7.73% $1.5m
Lawrence Francis
First VP2.42yrsUS$107.96kno data

11.1yrs

Average Tenure

60yo

Average Age

Experienced Management: RSRV's management team is seasoned and experienced (11.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kyle McLain
Chairman of the Board7.08yrsUS$206.67k7.73% $1.5m
Cameron McLain
CEO, President11.08yrsUS$209.32k7.73% $1.5m
Jerry Crow
Independent Director38.08yrsUS$4.50k3.43% $688.5k
Doug Fuller
Independent Director20.08yrsUS$4.50kno data
Marvin Harris
Independent Director29.08yrsUS$4.50kno data
Robert Savage
Director45.08yrsUS$4.50k1.26% $252.2k
William Smith
Independent Director22.08yrsUS$4.50kno data
James Tyler
Director2.08yrsUS$4.50kno data

21.1yrs

Average Tenure

65.5yo

Average Age

Experienced Board: RSRV's board of directors are seasoned and experienced ( 21.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Reserve Petroleum Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Reserve Petroleum Company
  • Ticker: RSRV
  • Exchange: OTCPK
  • Founded: 1931
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$20.047m
  • Shares outstanding: 156.62k
  • Website: https://www.reserve-petro.com

Number of Employees


Location

  • The Reserve Petroleum Company
  • 6801 Broadway Extension
  • Suite 300
  • Oklahoma City
  • Oklahoma
  • 73116-9037
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RSRVOTCPK (Pink Sheets LLC)YesCommon StockUSUSDSep 1992

Biography

The Reserve Petroleum Company engages in oil and natural gas exploration and development, and mineral properties management primarily in Texas, Oklahoma, Kansas, Arkansas, and South Dakota. As of December 31, 2019, the company had working interests in 22.52 net gas wells; and 25.59 net oil wells located in 7,732 net producing acres. It owns non-producing mineral interests of 88,239 net acres located in the north and south central United States; and has interests in approximately 945 producing properties. The Reserve Petroleum Company was founded in 1931 and is based in Oklahoma City, Oklahoma. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 02:20
End of Day Share Price2020/04/21 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.