Reserve Petroleum Company is engaged principally in managing its owned mineral properties and the exploration for and development of oil and natural gas properties. The company holds non producing mineral interests covering 88,868 net acres located in twelve states across the north central and south central United States, with approximately 81,504 acres or 92 percent situated in Arkansas, Kansas, Oklahoma, South Dakota and Texas. Its core activities include leasing these mineral interests to third party operators, participating as a working interest owner in drilling programs, and pursuing exploratory prospects through partnerships or independent efforts. The firm operates within the oil and gas sector, focusing on mineral management and both exploratory and developmental drilling initiatives.

The company generates revenue primarily from the sale of oil and natural gas, which includes royalties received from its mineral interests and proceeds from working interest participation in producing wells. In 2025, royalty and other interests contributed $3,425,011 or 21% of total oil and gas sales, while the remainder came from working interest production. Additionally, Reserve Petroleum Company maintains an investment program that holds marketable securities, real estate, and other assets, providing supplementary income through dividends, interest and capital gains. Revenue from oil and gas sales is conducted under short term contracts tied to prevailing spot market prices, allowing the company to benefit from short term fluctuations in commodity values.

The oil and gas industry remains highly competitive, featuring a mix of large integrated corporations, mid sized independents and numerous small exploration firms. Reserve Petroleum Company does not own or operate drilling rigs or production facilities; instead it relies on partnerships with established operators that possess the necessary equipment, staff and technical expertise to drill and complete wells. This approach allows the firm to limit capital expenditures and overhead while still accessing promising prospects. Competitive advantages arise from its substantial mineral acreage, which provides a steady inventory of leasehold opportunities, and from its internal geologic and economic evaluation team that assesses risk and potential before committing capital. Furthermore, the company’s strong financial position enables it to participate in both exploratory and developmental projects that might be beyond the reach of smaller peers, while its disciplined investment strategy helps mitigate sector volatility.

The company’s customer base consists chiefly of oil and gas purchasers that buy its production under short term arrangements. In 2025, two customers accounted for a significant share of sales: Crawley Petroleum Corporation purchased $5,280,399 or 33% of total oil and gas revenue and Mewbourne Oil Company purchased $3,065,190 or 19% of total oil and gas revenue. The remaining volume is sold to a variety of other buyers, including independent marketers and regional refiners, under contracts that reflect current spot market prices. This diversified yet concentrated buyer profile underscores the importance of maintaining reliable relationships with key counterparties while retaining flexibility to respond to market conditions.