Company: NC
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000789933-25-000023
Chunk: 36

Company: NACCO INDUSTRIES INC
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 1
Chunk 36
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 expenses(324)Gross profit336 Gain on sale of assets(1)2025$1,970 

Operating profit decreased $0.4 million in the first quarter of 2025 compared with the first quarter of 2024. The change in Operating profit was primarily due to a decrease in earnings of unconsolidated operations and an increase in selling, general and administrative expenses, partially offset by an increase in gross profit. The decrease in earnings of unconsolidated operations was primarily due to a reduction in tons delivered. The increase in selling, general and administrative expenses was mainly the result of higher employee-related costs. The improvement in gross profit was mainly the result of an increase in part sales, partially offset by a reduction in tons delivered.

MINERALS MANAGEMENT SEGMENT

FINANCIAL REVIEW

The following table sets forth our estimate of the number of gross and net productive wells: 

March 31, 2025March 31, 2024GrossNetGrossNetOil1,4414.81,7408.8Natural Gas88718.526112.9Total2,32823.32,00121.7

Gross wells are the total wells in which an interest is owned. Net wells are calculated based on our net royalty interest, factoring in both ownership percentage of gross wells and royalty rate.

The table below shows the average prices as reported by the United States Energy Information Administration for the three months ended March 31:

THREE MONTHS 20252024West Texas Intermediate Average Crude Oil Price$71.84 $77.56 Henry Hub Average Natural Gas Price$4.15 $2.13 

These indicated prices do not necessarily reflect the contract terms for our sales. As an owner of royalty and mineral interests, our access to information concerning activity and operations of our royalty and mineral interests is limited. We do not have information that would be available to a company with working interests in oil and natural gas operations because detailed information is not generally available to owners of royalty and mineral interests. 

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The results of operations for the Minerals Management segment were as follows for the three months ended March 31:

THREE MONTHS 2025 2024Oil and natural gas revenues$9,117 $8,236 Other revenues1,785 2,165 Total Revenues$10,902 $10,401 Total Revenues $10,902 $10,401 Cost of sales2,244