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Reserve Petroleum

OTCPK:RSRV
Snowflake Description

Flawless balance sheet and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RSRV
OTCPK
$33M
Market Cap
  1. Home
  2. US
  3. Energy
Company description

The Reserve Petroleum Company engages in oil and natural gas exploration and development, and minerals management primarily in Texas, Oklahoma, Kansas, Arkansas, and South Dakota. The last earnings update was 7 days ago. More info.


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RSRV Share Price and Events
7 Day Returns
1.5%
OTCPK:RSRV
0.9%
US Oil and Gas
1.6%
US Market
1 Year Returns
-1.4%
OTCPK:RSRV
-17.5%
US Oil and Gas
2.6%
US Market
RSRV Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Reserve Petroleum (RSRV) 1.5% 3.5% - -1.4% 4.5% -56%
US Oil and Gas 0.9% -4.9% -3.1% -17.5% -0.8% -32.9%
US Market 1.6% -1.7% 2.1% 2.6% 38.5% 41.4%
1 Year Return vs Industry and Market
  • RSRV outperformed the Oil and Gas industry which returned -17.5% over the past year.
  • RSRV underperformed the Market in United States of America which returned 2.6% over the past year.
Price Volatility
RSRV
Industry
5yr Volatility vs Market

Value

 Is Reserve Petroleum undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Reserve Petroleum to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Reserve Petroleum.

OTCPK:RSRV Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 8.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OTCPK:RSRV
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.9 (1 + (1- 21%) (0%))
0.933
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.93
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.933 * 5.96%)
8.29%

Discounted Cash Flow Calculation for OTCPK:RSRV using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Reserve Petroleum is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

OTCPK:RSRV DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.29%)
2019 2.35 Est @ 23.02% 2.17
2020 2.75 Est @ 16.94% 2.35
2021 3.10 Est @ 12.67% 2.44
2022 3.40 Est @ 9.69% 2.47
2023 3.66 Est @ 7.6% 2.46
2024 3.88 Est @ 6.14% 2.41
2025 4.08 Est @ 5.12% 2.34
2026 4.26 Est @ 4.4% 2.25
2027 4.43 Est @ 3.9% 2.16
2028 4.58 Est @ 3.55% 2.07
Present value of next 10 years cash flows $23.11
OTCPK:RSRV DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $4.58 × (1 + 2.73%) ÷ (8.29% – 2.73%)
$84.72
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $84.72 ÷ (1 + 8.29%)10
$38.21
OTCPK:RSRV Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $23.11 + $38.21
$61.32
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $61.32 / 0.16
$391.35
OTCPK:RSRV Discount to Share Price
Calculation Result
Value per share (USD) From above. $391.35
Current discount Discount to share price of $209.00
= -1 x ($209.00 - $391.35) / $391.35
46.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Reserve Petroleum is available for.
Intrinsic value
47%
Share price is $209 vs Future cash flow value of $391.35
Current Discount Checks
For Reserve Petroleum to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Reserve Petroleum's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Reserve Petroleum's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Reserve Petroleum's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Reserve Petroleum's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OTCPK:RSRV PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $15.10
OTCPK:RSRV Share Price ** OTCPK (2019-05-21) in USD $209
United States of America Oil and Gas Industry PE Ratio Median Figure of 101 Publicly-Listed Oil and Gas Companies 13.25x
United States of America Market PE Ratio Median Figure of 3,087 Publicly-Listed Companies 17.74x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Reserve Petroleum.

OTCPK:RSRV PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= OTCPK:RSRV Share Price ÷ EPS (both in USD)

= 209 ÷ 15.10

13.84x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Reserve Petroleum is overvalued based on earnings compared to the US Oil and Gas industry average.
  • Reserve Petroleum is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Reserve Petroleum's expected growth come at a high price?
Raw Data
OTCPK:RSRV PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.84x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
14.2%per year
United States of America Oil and Gas Industry PEG Ratio Median Figure of 76 Publicly-Listed Oil and Gas Companies 0.52x
United States of America Market PEG Ratio Median Figure of 2,123 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Reserve Petroleum, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Reserve Petroleum's assets?
Raw Data
OTCPK:RSRV PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $215.58
OTCPK:RSRV Share Price * OTCPK (2019-05-21) in USD $209
United States of America Oil and Gas Industry PB Ratio Median Figure of 196 Publicly-Listed Oil and Gas Companies 1.09x
United States of America Market PB Ratio Median Figure of 5,202 Publicly-Listed Companies 1.84x
OTCPK:RSRV PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= OTCPK:RSRV Share Price ÷ Book Value per Share (both in USD)

= 209 ÷ 215.58

0.97x

* Primary Listing of Reserve Petroleum.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Reserve Petroleum is good value based on assets compared to the US Oil and Gas industry average.
X
Value checks
We assess Reserve Petroleum's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Reserve Petroleum has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

  • No analysts cover Reserve Petroleum, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
14.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Reserve Petroleum expected to grow at an attractive rate?
  • Reserve Petroleum's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Reserve Petroleum's earnings growth is expected to exceed the United States of America market average.
  • Unable to compare Reserve Petroleum's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
OTCPK:RSRV Future Growth Rates Data Sources
Data Point Source Value (per year)
OTCPK:RSRV Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 14.2%
United States of America Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 13%
United States of America Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 4.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.8%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OTCPK:RSRV Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OTCPK:RSRV Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 8 5 2
2018-12-31 8 5 2
2018-09-30 8 4 2
2018-06-30 7 3 2
2018-03-31 6 2 0
2017-12-31 6 3 1
2017-09-30 7 4 1
2017-06-30 7 4 1
2017-03-31 7 4 1
2016-12-31 6 3 0
2016-09-30 6 3 -1
2016-06-30 6 3 -2

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Reserve Petroleum's earnings are expected to grow by 14.2% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Reserve Petroleum is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OTCPK:RSRV Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Reserve Petroleum Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:RSRV Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 15.10
2018-12-31 14.69
2018-09-30 15.70
2018-06-30 11.90
2018-03-31 2.72
2017-12-31 4.35
2017-09-30 6.60
2017-06-30 5.39
2017-03-31 6.74
2016-12-31 -0.53
2016-09-30 -7.69
2016-06-30 -15.20

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Reserve Petroleum will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Reserve Petroleum's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Reserve Petroleum has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Reserve Petroleum performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Reserve Petroleum's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Reserve Petroleum's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Reserve Petroleum's 1-year earnings growth exceeds its 5-year average (454% vs -32.3%)
  • Reserve Petroleum's earnings growth has exceeded the US Oil and Gas industry average in the past year (454% vs 31.8%).
Earnings and Revenue History
Reserve Petroleum's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Reserve Petroleum Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:RSRV Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 7.81 2.38 1.80
2018-12-31 7.94 2.31 1.87
2018-09-30 7.75 2.47 2.19
2018-06-30 7.17 1.88 2.18
2018-03-31 6.17 0.43 2.48
2017-12-31 6.02 0.69 2.50
2017-09-30 6.76 1.04 2.04
2017-06-30 6.85 0.85 2.34
2017-03-31 6.61 1.06 2.02
2016-12-31 6.08 -0.08 2.01
2016-09-30 5.58 -1.22 2.30
2016-06-30 5.86 -2.41 2.03
2016-03-31 6.58 -2.52 2.16
2015-12-31 8.14 -1.89 2.22
2015-09-30 11.52 -0.42 2.09
2015-06-30 14.89 2.77 2.06
2015-03-31 18.30 4.81 2.45
2014-12-31 21.17 6.76 2.95
2014-09-30 21.50 7.08 3.17
2014-06-30 20.87 6.62 3.21
2014-03-31 20.44 6.80 2.68
2013-12-31 18.81 6.07 2.26
2013-09-30 18.96 6.09 2.08
2013-06-30 17.49 5.59 2.13
2013-03-31 15.47 4.45 2.13
2012-12-31 15.13 4.55 1.92
2012-09-30 13.42 4.58 1.98
2012-06-30 13.44 5.11 1.86

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Reserve Petroleum has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Reserve Petroleum used its assets less efficiently than the US Oil and Gas industry average last year based on Return on Assets.
  • Reserve Petroleum has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Reserve Petroleum's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Reserve Petroleum has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Reserve Petroleum's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Reserve Petroleum's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Reserve Petroleum is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Reserve Petroleum's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Reserve Petroleum's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Reserve Petroleum has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Reserve Petroleum Company Filings, last reported 1 month ago.

OTCPK:RSRV Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 33.87 0.00 23.27
2018-12-31 33.58 0.00 23.13
2018-09-30 33.83 0.00 23.09
2018-06-30 32.96 0.00 22.33
2018-03-31 32.38 0.00 21.64
2017-12-31 32.12 0.00 21.70
2017-09-30 32.21 0.00 22.29
2017-06-30 31.92 0.00 21.74
2017-03-31 32.78 0.00 22.73
2016-12-31 32.26 0.00 21.99
2016-09-30 31.99 0.00 21.20
2016-06-30 31.90 0.00 21.53
2016-03-31 32.56 0.00 22.45
2015-12-31 33.22 0.00 22.99
2015-09-30 34.09 0.00 23.51
2015-06-30 35.17 0.00 22.94
2015-03-31 36.75 0.00 23.85
2014-12-31 36.74 0.00 22.30
2014-09-30 36.16 0.00 21.98
2014-06-30 34.09 0.00 19.88
2014-03-31 35.24 0.00 19.87
2013-12-31 33.33 0.00 18.01
2013-09-30 32.42 0.00 20.40
2013-06-30 30.91 0.00 18.23
2013-03-31 30.41 0.00 17.96
2012-12-31 29.18 0.00 17.88
2012-09-30 29.87 0.00 17.27
2012-06-30 28.72 0.00 17.10
  • Reserve Petroleum has no debt.
  • Reserve Petroleum has not taken on any debt in the past 5 years.
  • Reserve Petroleum has no debt, it does not need to be covered by operating cash flow.
  • Reserve Petroleum has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Reserve Petroleum's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Reserve Petroleum has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.39%
Current annual income from Reserve Petroleum dividends.
If you bought $2,000 of Reserve Petroleum shares you are expected to receive $48 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Reserve Petroleum's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • Reserve Petroleum's dividend is below the markets top 25% of dividend payers in United States of America (3.72%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OTCPK:RSRV Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United States of America Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 66 Stocks 3.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2003 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OTCPK:RSRV Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-27 5.000 2.464
2018-11-19 5.000 2.573
2018-05-29 5.000 2.510
2018-03-29 5.000 2.394
2017-11-14 5.000 2.290
2017-08-14 5.000 2.308
2017-03-29 5.000 2.199
2016-11-11 5.000 2.417
2016-06-08 5.000 2.584
2016-03-31 10.000 5.269
2015-11-12 10.000 5.221
2015-08-12 10.000 3.852
2015-03-30 20.000 5.744
2014-11-13 20.000 5.293
2014-08-13 20.000 4.792
2014-03-31 10.000 2.270
2013-11-14 20.000 4.992
2013-08-14 20.000 5.557
2013-04-30 20.000 6.435
2013-04-01 20.000 6.398
2012-11-16 10.000 3.253
2012-08-20 10.000 3.291
2012-03-28 10.000 3.139
2011-03-31 40.000 11.927
2010-12-06 40.000 10.955
2010-05-21 10.000 3.921
2010-04-06 10.000 3.645

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Reserve Petroleum has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Reserve Petroleum has only been paying a dividend for 9 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of Reserve Petroleum's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Reserve Petroleum's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Reserve Petroleum afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Reserve Petroleum has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Reserve Petroleum's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Cameron McLain
COMPENSATION $206,715
AGE 59
TENURE AS CEO 10 years
CEO Bio

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 Mesquite Minerals, Inc. He has been Exploration Manager of Reserve Petroleum Co. since May 9, 1982 and served as its Advisory Director. Previously, he was employed from May 1980 to May 1982 as a Southern Oklahoma exploration geologist for Cities Service Oil and Gas Company. He serves as a Director of Mid-American Oil Company. He has been a Director of Reserve Petroleum Co. since May 23, 2006. Mr. McLain holds a Bachelor of Science degree in Geology from the University of Oklahoma and a Master of Business Administration degree from Oklahoma City University.

CEO Compensation
  • Cameron's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Cameron's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Reserve Petroleum management team in years:

10
Average Tenure
59
Average Age
  • The average tenure for the Reserve Petroleum management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Kyle McLain

TITLE
Chairman of the Board
COMPENSATION
$204K
AGE
63
TENURE
35 yrs

Cameron McLain

TITLE
CEO, President
COMPENSATION
$207K
AGE
59
TENURE
10 yrs

Lawrence Francis

TITLE
First VP
COMPENSATION
$101K
AGE
41
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the Reserve Petroleum board of directors in years:

20
Average Tenure
64.5
Average Age
  • The average tenure for the Reserve Petroleum board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Cameron McLain

TITLE
CEO, President
COMPENSATION
$207K
AGE
59
TENURE
13 yrs

Jerry Crow

TITLE
Independent Director
COMPENSATION
$5K
AGE
81
TENURE
37 yrs

Kyle McLain

TITLE
Chairman of the Board
COMPENSATION
$204K
AGE
63
TENURE
6 yrs

Doug Fuller

TITLE
Independent Director
COMPENSATION
$5K
AGE
60
TENURE
19 yrs

Marvin Harris

TITLE
Independent Director
COMPENSATION
$5K
AGE
66
TENURE
28 yrs

Bob Savage

TITLE
Director
COMPENSATION
$5K
AGE
70
TENURE
44 yrs

Bill Smith

TITLE
Independent Director
COMPENSATION
$3K
AGE
59
TENURE
21 yrs

James Tyler

TITLE
Director
COMPENSATION
$137K
AGE
70
TENURE
1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Reserve Petroleum's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Reserve Petroleum has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

The Reserve Petroleum Company engages in oil and natural gas exploration and development, and minerals management primarily in Texas, Oklahoma, Kansas, Arkansas, and South Dakota. As of December 31, 2017, the company had working interests in 24.93 net gas wells; and 23.28 net oil wells located in 9,779 net producing acres. It owns non-producing mineral interests of 88,248 net acres located in the north and south central United States; and has interests in approximately 900 producing properties. The Reserve Petroleum Company was founded in 1931 and is based in Oklahoma City, Oklahoma.

Details
Name: The Reserve Petroleum Company
RSRV
Exchange: OTCPK
Founded: 1931
$32,748,001
156,689
Website: http://www.reserve-petro.com
Address: The Reserve Petroleum Company
6801 Broadway Extension,
Suite 300,
Oklahoma City,
Oklahoma, 73116,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
OTCPK RSRV Common Stock Pink Sheets LLC US USD 28. Sep 1992
Number of employees
Current staff
Staff numbers
9
Reserve Petroleum employees.
Industry
Oil and Gas Exploration and Production
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/22 03:36
End of day share price update: 2019/05/21 00:00
Last earnings filing: 2019/05/15
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.