DEF: Reserve Petroleum Company Announces 2025 Annual Meeting and Proxy Statement

Reserve Petroleum Company has announced its 2025 Annual Meeting of Stockholders to be held on May 20, 2025, with proposals including the election of directors, ratification of auditors, and advisory votes on executive compensation.

Summary

• The Reserve Petroleum Company will hold its 2025 Annual Meeting of Stockholders on May 20, 2025, in Oklahoma City.
• Stockholders will vote on the election of eight directors, ratification of HoganTaylor LLP as the company's independent auditor for 2025, an advisory resolution to approve executive compensation, and an advisory vote on the frequency of future executive compensation votes.
• The record date for determining stockholders eligible to vote is April 10, 2025.
• The company estimates the costs of soliciting proxies to be $18,000.
• As of the record date, there were 151,779 shares of common stock outstanding and entitled to be voted.
• The Board recommends voting FOR all director nominees, FOR the ratification of HoganTaylor LLP, FOR the advisory resolution on executive compensation, and for a frequency of once every THREE years for future advisory votes on executive compensation.

Sentiment

Score: 7

Explanation: The document presents a generally positive outlook with improved financial results and continued development of oil and gas properties. The company is also committed to good governance practices.

Positives

• The company paid dividends of $10.00 per share in 2024.
• The company operated as a financially sound entity throughout the year.
• The company provided $7,919,307 of net cash from operating activities, with $2,029,278 in net income for 2024.
• The company participated in the drilling of 11 gross exploratory working interest wells, including 2 in progress at the end of 2023, with 4 wells completed as producers, 4 wells completed as dry holes and 3 wells in progress at the end of 2024.
• In 2024, the Company participated in 19 gross development working interest wells, including 4 in progress at the end of 2023, with working interests ranging from a high of 18% to a low of 0.25% . Of the 19 development wells, 15 were completed as producing wells and 4 were in progress at the end of 2024.

Risks

• The company's stock is thinly traded on OTC Pink Sheets, and the stock price is volatile.
• The company's stock price may not accurately reflect the performance of the company.

Future Outlook

The company's strategy for 2024 was to improve on its 2023 results and to further develop its oil and natural gas properties.

Management Comments

• On behalf of the Board of Directors, it is my pleasure to invite you to attend the 2025 Annual Meeting of Stockholders of The Reserve Petroleum Company on Tuesday, May 20, 2025, at 3:00 p.m. local time, in Oklahoma City, Oklahoma.
• Thank you for your continued support of The Reserve Petroleum Company.
• We look forward to seeing you on May 20th.

Industry Context

As a smaller reporting company in the oil and gas exploration and production (E&P) industry, Reserve Petroleum Company aims to comply with all relevant SEC rules and regulations while maintaining competitive compensation levels.

Comparison to Industry Standards

• The document does not provide enough information to make a detailed comparison to industry standards.
• However, the document mentions that the company tries to maintain compensation at a level that is competitive with other companies of similar size in this industry.

Related Party Transactions

• The Company is affiliated by common management and ownership with Lochbuie LLC (Lochbuie).
• The Company also owns interests in certain producing and non-producing oil and gas properties as tenants in common with Lochbuie.
• Kyle L. McLain and Cameron R. McLain, directors and officers of the Company, as a group, beneficially own approximately 17% of the common stock of the Company, which is the only class of stock outstanding and each own a 16.67% interest in Lochbuie.
• Robert L. Savage, a director, is a Financial Consultant with B.B. Graham & Company, Inc. (Graham) and an advisor with Leonard Investment Advisors (LIA).
• James L. Tyler, a director, performs tax consulting services for the Company.
• During 2024, The Company paid Mr. Tyler $14,650 in consulting fees.

Stakeholder Impact

• Stockholders have the opportunity to vote on key proposals, including the election of directors and executive compensation.
• Employees benefit from fair and reasonable compensation and company-sponsored benefits.
• The company's financial performance impacts stakeholders through dividends and overall company value.

Next Steps

• Stockholders are urged to vote by internet, phone, or by signing, dating and returning promptly the enclosed proxy card in the enclosed prepaid envelope.
• The Board will consider the results of the most recent stockholder advisory vote on executive compensation in determining compensation policies and decisions concerning Named Executive Officers.

Key Dates

Keywords

proxy statement, annual meeting, executive compensation, board of directors, HoganTaylor LLP, oil and gas, directors, stockholders, RSRV