The following discussion and analysis of our financial condition and results of
operations should be read in conjunction with our unaudited financial statements
and related notes included in this Quarterly Report on Form 10-Q and the audited
financial statements and notes thereto as of and for the year ended December 31,
2020 and the related Management's Discussion and Analysis of Financial Condition
and Results of Operations, both of which are contained in our Annual Report on
Form 10-K for the fiscal year ended December 31, 2020, filed on March 25, 2021.



Cautionary Statement



This Management's Discussion and Analysis includes a number of forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the
"Exchange Act") that reflect our current views with respect to future events and
financial performance. Forward-looking statements are often identified by words
like "believe," "expect," "plan," "estimate," "anticipate," "intend," "project,"
"will," "predicts," "seeks," "may," "would," "could," "potential," "continue,"
"ongoing," "should" and similar expressions, or words which, by their nature,
refer to future events. You should not place undue certainty on these
forward-looking statements, which apply only as of the date of this Form 10-Q.
These forward-looking statements are subject to certain risks and uncertainties
that could cause actual results to differ materially from historical results or
from our predictions, including those risks described in our Annual Report on
Form 10-K, this Form 10-Q and in our other public filings. We undertake no
obligation to update or revise publicly any forward-looking statements, whether
because of new information, future events, or otherwise.



Overview



CKX Lands, Inc., a Louisiana corporation, began operations in 1930 under the
name Calcasieu Real Estate & Oil Co., Inc. It was originally organized as a
spin-off by a bank operating in southwest Louisiana. The purpose of the spin-off
was to form an entity to hold non-producing mineral interests which regulatory
authorities required the bank to charge off. Over the years, as some of the
mineral interests began producing, the Company used part of the proceeds to
acquire land. In 1990, the Company made its largest acquisition when it was one
of four purchasers who bought a fifty percent undivided interest in
approximately 35,575 acres in southwest Louisiana.



Today the Company's income is derived from mineral royalties, timber sales and
surface payments from its lands. CKX receives income from royalty interests and
mineral leases related to oil and gas production, timber sales, and surface
rents. Although CKX is active in the management of its land and planting and
harvesting its timber, CKX is passive in the production of income from oil and
gas production in that CKX does not explore for oil and gas or operate wells.
These oil and gas activities are performed by unrelated third parties.



CKX leases its property to oil and gas operators and collects income through its
land ownership in the form of oil and gas royalties and lease rentals and
geophysical revenues. The Company's oil and gas income fluctuates as new oil and
gas production is discovered on Company land and then ultimately depletes or
becomes commercially uneconomical to produce. The volatility in the daily
commodity pricing of a barrel of oil or a thousand cubic feet, or "MCF," of gas
will also cause fluctuations in the Company's oil and gas income.



CKX has small royalty interests in 20 different producing oil and gas fields.
The size of each royalty interest is determined by the Company's net ownership
in the acreage unit for the well. CKX's royalty interests range from 0.0045% for
the smallest to 7.62% for the largest. As the Company does not own or operate
the wells, it does not have access to any reserve information. Eventually, the
oil and gas reserves under the Company's current land holdings will be depleted.



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Timber income is derived from sales of timber on Company lands. The timber
income will fluctuate depending on our ability to secure stumpage agreements in
the regional markets, timber stand age, and/or stumpage commodity prices. Timber
is a renewable resource that the Company actively manages.

Surface income is earned from various recurring and non-recurring sources. Recurring surface income is earned from lease arrangements for farming, recreational and commercial uses. Non-recurring surface income can include such activities as pipeline right of ways, and temporary worksite rentals.





In managing its lands, the Company relies on and has established relationships
with real estate, forestry, environmental and agriculture consultants as well as
attorneys with legal expertise in general corporate matters, real estate, and
minerals.



The Company actively searches for additional real estate for purchase in
Louisiana with a focus on southwest Louisiana and on timberland and agricultural
land. When evaluating unimproved real estate for purchase, the Company will
consider numerous characteristics including but not limited to, timber fitness,
agriculture fitness, future development opportunities and/or mineral potential.
When evaluating improved real estate for purchase, the Company will consider
characteristics including, but not limited to, geographic location, quality of
existing revenue streams, and/or quality of the improvements.



Recent Developments



In the first quarter of 2019, the Company began developing several
ranchette-style subdivisions on certain of its lands in Calcasieu and Beauregard
Parishes using existing road rights of way.  The Company has identified demand
in those areas for ranchette-style lots, which consist of more than three acres
each, and the Board of Directors and management believe this project will allow
the Company to realize a return on its investment in the applicable lands after
payment of expenses.  The Company has completed and recorded plats for two
subdivisions and obtained approval to complete a third subdivision during the
first quarter of 2021.  The three subdivisions are located on approximately 415
acres in Calcasieu Parish and approximately 160 acres in Beauregard Parish, and
contain an aggregate of 39 lots.  As of March 31, 2021, the Company has closed
on the sale of 15 of the 39 lots. As of the date of this report the Company sold
one additional lot, has two sales pending, and it is actively marketing the
remaining lots.



The Company is working to identify additional undeveloped acres owned by the
Company in Southwest Louisiana that would likewise be suitable for residential
subdivisions.



On August 27, 2020, Hurricane Laura made landfall in Cameron, Louisiana as a
major Category 4 hurricane.  The hurricane caused widespread property damage,
flooding, power outages, and water and communication service interruptions.

The


Company holds 13,941 acres of land in Southwest Louisiana across 11 parishes
with 10,495 acres classified as timber lands.  Ten of these parishes are
included in the Federal Emergency Management Agency's disaster declaration
related to Hurricane Laura.  A percentage of the Company's timber was damaged
during the storm and oil and gas production was temporarily interrupted.  No
other business operations were affected by the storm.  The Company assessed and
determined that that the Company did not incur an impairment loss on the value
of its timber and determined the temporary interruption had an immaterial effect
on its financial condition and results of operations.



On October 9, 2020, Hurricane Delta made landfall in Creole, Louisiana as a
Category 2 hurricane.  The hurricane caused property damage, flooding, power
outages, and water and communication service interruptions.  The Company holds
property in seven of the parishes included in the Federal Emergency Management
Agency's disaster declaration related to the hurricane.  The Company assessed
the damage to its timber and the effects of any temporary interruption in oil
and gas production on its lands and determined that the effects of the hurricane
on its assets and operations were minimal.



Results of Operations



Summary of Results



The Company's results of operations for the three months ended March 31, 2021
were driven primarily by a higher gain on the sale of land in the first quarter
of 2021, offset by lower general and administrative expenses. The higher gain on
sale of land in the first quarter of 2021 is due to the variable nature of land
sales. The decrease in general and administrative expenses in the first quarter
of 2021 was attributable to decreases in officer salaries, property management
fees, auditing fees and rent expense offset by an increase in property taxes.



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Revenue - Three Months Ended March 31, 2021





Total revenues for the three months ended March 31, 2021 were $154,876, a
decrease of approximately 14% when compared with the same period in 2020. Total
revenue consists of oil and gas, timber, and surface revenues. Components of
revenues for the three months ended March 31, 2021 as compared to 2020, are as
follows:



                                     Three Months Ended March 31,

Change from Percent Change


                                       2021                 2020            Prior Year        from Prior Year
Revenues:
Oil and gas                       $       50,145       $      115,050     $      (64,905 )               (56.4 )%
Timber sales                              53,527                7,888             45,639                 578.6 %
Surface revenue                           51,204               57,453             (6,249 )               (10.9 )%
Total revenues                    $      154,876       $      180,391     $      (25,515 )               (14.1 )%






Oil and Gas



Oil and gas revenues were 32% and 64% of total revenues for the three months
ended March 31, 2021 and 2020, respectively. A breakdown of oil and gas revenues
for the three months ended March 31, 2021 as compared to the three months ended
March 31, 2020 is as follows:



                                     Three Months Ended March 31,
                                                                           Change from        Percent Change
                                      2021                 2020             Prior Year        from Prior Year
Oil                               $      36,479       $        96,225     $      (59,746 )               (62.1 )%
Gas                                      12,921                17,977             (5,056 )               (28.1 )%
Lease and geophysical                       745                   848               (103 )               (12.1 )%
Total revenues                    $      50,145       $       115,050     $      (64,905 )               (56.4 )%

CKX received oil and/or gas revenues from 64 and 77 wells during the three months ended March 31, 2021 and 2020, respectively.

The following schedule summarizes barrels and MCF produced and average price per barrel and per MCF for the three months ended March 31, 2021 and 2020:





                                           Three Months Ended
                                                March 31,
                                            2021          2020
Net oil produced (Bbl)(2)                       753        1,586

Average oil sales price (per Bbl)(1,2) $ 48.43 $ 60.68 Net gas produced (MCF)

                        4,456        7,398

Average gas sales price (per MCF)(1) $ 2.90 $ 2.43

(1) Before deduction of production costs and severance taxes (2) Excludes plant products




Oil revenues decreased for the three months ended March 31, 2021, as compared to
the three months ended March 31, 2020, by $59,746. Gas revenues decreased for
the three months ended March 31, 2021, as compared to the same period in 2020,
by $5,056. As indicated from the schedule above, the decrease in oil revenues
was due to a decrease in the net oil produced and a decrease in the average oil
sales price per barrel. The decrease in gas revenues was due to a decrease in
net gas produced partially offset by an increase in the average price per MCF.



Lease and geophysical revenues decreased for the three months ended March 31,
2021, as compared to the three months ended March 31, 2020, by $103. These
revenues are dependent on oil and gas producers' activities, are not predictable
and can vary significantly from year to year.



Timber



Timber revenue was $53,527 and $7,888 for the three months ended March 31, 2021
and 2020, respectively. The increase in timber revenues was due to wet weather
during the first quarter of fiscal 2020 that limited customers' ability to
harvest timber.



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Surface

Surface revenues decreased for the three months ended March 31, 2021, as compared to the three months ended March 31, 2020, by $6,249. This decrease is due to a reduction in oil and gas lease bonus.

Costs and Expenses - Three Months Ended March 31, 2021

Oil and gas costs decreased for the three months ended March 31, 2021 as compared to the three months ended March 31, 2020 by $3,516.





Timber costs decreased for the three months ended March 31, 2021 as compared to
the three months ended March 31, 2020 by $1,493. Timber costs are related to
timber revenue, however, timber revenue during the quarter consisted mostly of a
recognized expired timber stumpage agreement. Therefore, costs in the current
quarter are lower.



General and administrative expenses decreased for the three months ended March
31, 2021 as compared to the three months ended March 31, 2020 by $40,038. This
is primarily due to a decrease in officer salaries, property management fees,
auditing fees and rent expense offset by an increase in property taxes.



Gain on Sale of Land

Gain on sale of land and equipment was $406,220 and $33,107 for the three months ended March 31, 2021 and 2020, respectively.

Liquidity and Capital Resources





Sources of Liquidity

Current assets totaled $7,570,488 and current liabilities equaled $295,190 at March 31, 2021.

As of March 31, 2021 and December 31, 2020, the Company had no outstanding debt.

In the opinion of management, cash and cash equivalents are adequate for projected operations and possible land acquisitions.





Analysis of Cash Flows



Net cash provided by (used in) operating activities was ($150,975) and $21,743
for the three months ended March 31, 2021 and March 31, 2020, respectively. The
change was attributable primarily to the increase on the gain on the sale of
land partially offset by the increase in net income.



Net cash provided by (used in) investing activities was $523,122 and ($434,876)
for the three months ended March 31, 2021, and 2020, respectively. For the three
months ended March 31, 2021, this primarily resulted from proceeds from the sale
of fixed assets of $537,360, offset by purchases of mutual funds of $124 and
costs of reforesting timber of $14,114. For the three months ended March 31,
2020, this primarily resulted from purchases of certificates of deposit of
$1,210,163 and purchases of mutual funds of $1,978, offset by proceeds from
maturity of certificates of deposit of $744,000 and the proceeds from the sale
of fixed assets of $33,265.

Significant Accounting Polices and Estimates

There were no changes in our significant accounting policies and estimates during the three months ended March 31, 2021 from those set forth in "Significant Accounting Policies and Estimates" in our Annual Report on Form 10-K for the year ended December 31, 2020.

Recent Accounting Pronouncements





See Note 1, Basis of Presentation and Recent Accounting Pronouncements, to our
condensed financial statements included in this report for information regarding
recently issued accounting pronouncements that may impact our financial
statements.

Off-Balance Sheet Arrangements





During the three months ended March 31, 2021, we did not have any relationships
with unconsolidated organizations or financial partnerships, such as structured
finance or special purpose entities that would have been established for the
purpose of facilitating off-balance sheet arrangements.



ITEM 3. NOT APPLICABLE



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