# EDGAR Filing Document

**Accession Number:** 0000083350
**File Stem:** 0000083350-26-000008
**Filing Date:** 2026-5
**Character Count:** 68373
**Document Hash:** 98230490ec1e3b5d95696c6c7ee5e524
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000083350-26-000008.hdr.sgml**: 20260515

**ACCESSION NUMBER**: 0000083350-26-000008

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 52

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260515

**DATE AS OF CHANGE**: 20260515

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** RESERVE PETROLEUM CO
- **CENTRAL INDEX KEY:** 0000083350
- **STANDARD INDUSTRIAL CLASSIFICATION:** CRUDE PETROLEUM & NATURAL GAS [1311]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 730237060
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-08157
- **FILM NUMBER:** 26986011

**BUSINESS ADDRESS:**
- **STREET 1:** 6801 N BROADWAY STE 300
- **CITY:** OKLAHOMA CITY
- **STATE:** OK
- **ZIP:** 73116-9092
- **BUSINESS PHONE:** 4058487551

**MAIL ADDRESS:**
- **STREET 1:** 6801 NORTH BROADWAY
- **STREET 2:** SUITE 300
- **CITY:** OKLAHOMA
- **STATE:** OK
- **ZIP:** 73116-9092

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** FARMERS ROYALTY HOLDING CO
- **DATE OF NAME CHANGE:** 19751015

?xml version='1.0' encoding='ASCII'? rsrv-20260331

<u>[**Table of Contents**](#id4ebb6cb196c407ea5987e41ee9e4b6d_7)</u>

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q**

(Mark One)

---

| | |
|:---|:---|
| 🗹 | **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** |

---

For the Quarterly Period Ended March 31, 2026

□ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

Commission File Number 000-08157

![a01.jpg](rsrv-20260331_g1.jpg)

THE RESERVE PETROLEUM COMPANY

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Delaware** | **73-0237060** |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
| **6801 BROADWAY EXT., SUITE 300**<br>**OKLAHOMA CITY, OK 73116-9037**<br>**(405) 848-7551** | **6801 BROADWAY EXT., SUITE 300**<br>**OKLAHOMA CITY, OK 73116-9037**<br>**(405) 848-7551** |
| (Address and telephone number, including area code, of registrant's principal executive offices) | (Address and telephone number, including area code, of registrant's principal executive offices) |

---

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |

---

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. 🗹Yes □No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). 🗹Yes □No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer □ Accelerated filer □ Non-accelerated filer 🗹 <br> Smaller reporting company 🗹 Emerging growth company □

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). □Yes 🗹No

As of May 8, 2026, 151,594 shares of the Registrant's $0.50 par value common stock were outstanding.

------

<u>[**Table of Contents**](#id4ebb6cb196c407ea5987e41ee9e4b6d_7)</u>

**TABLE OF CONTENTS**

**PART I – FINANCIAL INFORMATION**

---

| | | |
|:---|:---|:---|
| | | Page |
| <u>[Item 1.](#id4ebb6cb196c407ea5987e41ee9e4b6d_13)</u> | <u>[Consolidated Financial Statements (Unaudited)](#id4ebb6cb196c407ea5987e41ee9e4b6d_13)</u> | <u>[2](#id4ebb6cb196c407ea5987e41ee9e4b6d_13)</u> |
|  | <u>[Consolidated Balance Sheets](#id4ebb6cb196c407ea5987e41ee9e4b6d_16)</u> | <u>[2](#id4ebb6cb196c407ea5987e41ee9e4b6d_16)</u> |
|  | <u>[Consolidated Statements of Income](#id4ebb6cb196c407ea5987e41ee9e4b6d_22)</u> | <u>[4](#id4ebb6cb196c407ea5987e41ee9e4b6d_22)</u> |
|  | <u>[Consolidated Statements of Equity](#id4ebb6cb196c407ea5987e41ee9e4b6d_25)</u> | <u>[5](#id4ebb6cb196c407ea5987e41ee9e4b6d_25)</u> |
|  | <u>[Consolidated Statements of Cash Flows](#id4ebb6cb196c407ea5987e41ee9e4b6d_28)</u> | <u>[6](#id4ebb6cb196c407ea5987e41ee9e4b6d_28)</u> |
|  | <u>[Notes to Consolidated Financial Statements](#id4ebb6cb196c407ea5987e41ee9e4b6d_31)</u> | <u>[8](#id4ebb6cb196c407ea5987e41ee9e4b6d_31)</u> |
|  | <u>[Note 1 - Basis of Presentation](#id4ebb6cb196c407ea5987e41ee9e4b6d_34)</u> | <u>[8](#id4ebb6cb196c407ea5987e41ee9e4b6d_34)</u> |
|  | <u>[Note 2 - Segment Reporting](#id4ebb6cb196c407ea5987e41ee9e4b6d_37)</u> | <u>[9](#id4ebb6cb196c407ea5987e41ee9e4b6d_37)</u> |
|  | <u>[Note 3 - Revenue Recognition](#id4ebb6cb196c407ea5987e41ee9e4b6d_40)</u> | <u>[9](#id4ebb6cb196c407ea5987e41ee9e4b6d_40)</u> |
|  | <u>[Note 4 - Other Income/(Loss), Net](#id4ebb6cb196c407ea5987e41ee9e4b6d_43)</u> | <u>[10](#id4ebb6cb196c407ea5987e41ee9e4b6d_43)</u> |
|  | <u>[Note 5 - Investments and Related Commitments and Contingent Liabilities, Including Guaranties](#id4ebb6cb196c407ea5987e41ee9e4b6d_46)</u> | <u>[10](#id4ebb6cb196c407ea5987e41ee9e4b6d_46)</u> |
|  | <u>[Note 6 - Non-Controlling Interest and Variable Interest Entities](#id4ebb6cb196c407ea5987e41ee9e4b6d_49)</u> | <u>[11](#id4ebb6cb196c407ea5987e41ee9e4b6d_49)</u> |
|  | <u>[Note 7 - Note Payable](#id4ebb6cb196c407ea5987e41ee9e4b6d_52)</u> | <u>[12](#id4ebb6cb196c407ea5987e41ee9e4b6d_52)</u> |
|  | <u>[Note 8 - Asset Retirement Obligation](#id4ebb6cb196c407ea5987e41ee9e4b6d_55)</u> | <u>[13](#id4ebb6cb196c407ea5987e41ee9e4b6d_55)</u> |
|  | <u>[Note 9 - Fair Value Measurements](#id4ebb6cb196c407ea5987e41ee9e4b6d_58)</u> | <u>[13](#id4ebb6cb196c407ea5987e41ee9e4b6d_58)</u> |
| <u>[Item 2.](#id4ebb6cb196c407ea5987e41ee9e4b6d_61)</u> | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#id4ebb6cb196c407ea5987e41ee9e4b6d_61)</u> | <u>[15](#id4ebb6cb196c407ea5987e41ee9e4b6d_61)</u> |
| <u>[Item 3.](#id4ebb6cb196c407ea5987e41ee9e4b6d_73)</u> | <u>[Quantitative and Qualitative Disclosures about Market Risk](#id4ebb6cb196c407ea5987e41ee9e4b6d_73)</u> | <u>[17](#id4ebb6cb196c407ea5987e41ee9e4b6d_73)</u> |
| <u>[Item 4.](#id4ebb6cb196c407ea5987e41ee9e4b6d_76)</u> | <u>[Controls and Procedures](#id4ebb6cb196c407ea5987e41ee9e4b6d_76)</u> | <u>[17](#id4ebb6cb196c407ea5987e41ee9e4b6d_76)</u> |
| **[PART II – OTHER INFORMATION](#id4ebb6cb196c407ea5987e41ee9e4b6d_79)** | **[PART II – OTHER INFORMATION](#id4ebb6cb196c407ea5987e41ee9e4b6d_79)** | **[PART II – OTHER INFORMATION](#id4ebb6cb196c407ea5987e41ee9e4b6d_79)** |
| <u>[Item 1.](#id4ebb6cb196c407ea5987e41ee9e4b6d_82)</u> | <u>[Legal Proceedings](#id4ebb6cb196c407ea5987e41ee9e4b6d_82)</u> | <u>[18](#id4ebb6cb196c407ea5987e41ee9e4b6d_82)</u> |
| <u>[Item 1A.](#id4ebb6cb196c407ea5987e41ee9e4b6d_85)</u> | <u>[Risk Factors](#id4ebb6cb196c407ea5987e41ee9e4b6d_85)</u> | <u>[18](#id4ebb6cb196c407ea5987e41ee9e4b6d_85)</u> |
| <u>[Item 2.](#id4ebb6cb196c407ea5987e41ee9e4b6d_88)</u> | <u>[Unregistered Sales of Equity Securities, Use of Proceeds, and Purchases of Equity Securities](#id4ebb6cb196c407ea5987e41ee9e4b6d_88)</u> | <u>[18](#id4ebb6cb196c407ea5987e41ee9e4b6d_88)</u> |
| <u>[Item 3.](#id4ebb6cb196c407ea5987e41ee9e4b6d_91)</u> | <u>[Defaults Upon Senior Securities](#id4ebb6cb196c407ea5987e41ee9e4b6d_91)</u> | <u>[18](#id4ebb6cb196c407ea5987e41ee9e4b6d_91)</u> |
| <u>[Item 4.](#id4ebb6cb196c407ea5987e41ee9e4b6d_94)</u> | <u>[Mine Safety Disclosures](#id4ebb6cb196c407ea5987e41ee9e4b6d_94)</u> | <u>[18](#id4ebb6cb196c407ea5987e41ee9e4b6d_94)</u> |
| <u>[Item 5.](#id4ebb6cb196c407ea5987e41ee9e4b6d_97)</u> | <u>[Other Information](#id4ebb6cb196c407ea5987e41ee9e4b6d_97)</u> | <u>[18](#id4ebb6cb196c407ea5987e41ee9e4b6d_97)</u> |
| <u>[Item 6.](#id4ebb6cb196c407ea5987e41ee9e4b6d_100)</u> | <u>[Exhibits](#id4ebb6cb196c407ea5987e41ee9e4b6d_100)</u> | <u>[19](#id4ebb6cb196c407ea5987e41ee9e4b6d_100)</u> |

---

------

<u>[**Table of Contents**](#id4ebb6cb196c407ea5987e41ee9e4b6d_7)</u>

**PART I – FINANCIAL INFORMATION**

**ITEM 1.&nbsp;&nbsp;&nbsp;&nbsp; CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**

THE RESERVE PETROLEUM COMPANY

CONSOLIDATED BALANCE SHEETS <sup>(1)</sup>

(Unaudited)

ASSETS

---

| | | |
|:---|:---|:---|
| | March 31,<br>2026 | December 31,<br>2025 |
| Current Assets: |  |  |
| &nbsp;&nbsp;Cash and Cash Equivalents | $2759925 | $2051330 |
| &nbsp;&nbsp;Equity Securities | 4215983 | 4516415 |
| &nbsp;&nbsp;Refundable Income Taxes | 294460 | 282311 |
| &nbsp;&nbsp;Accounts Receivable | 3217939 | 2994573 |
| Total Current Assets | 10488307 | 9844629 |
| Investments: |  |  |
| &nbsp;&nbsp;Equity Method Investments | 1772942 | 1782717 |
| &nbsp;&nbsp;Other Investments | 3790406 | 3440406 |
| Total Investments | 5563348 | 5223123 |
| Property, Plant and Equipment: |  |  |
| &nbsp;&nbsp;Oil and Gas Properties, at Cost, |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Based on the Successful Efforts Method of Accounting – |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unproved Properties | 5745509 | 6110839 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proved Properties | 85381608 | 84478449 |
| Oil and Gas Properties, Gross | 91127117 | 90589288 |
| Less – Accumulated Depreciation, Depletion, Amortization and Valuation Allowance | (67426870) | (66392912) |
| Oil and Gas Properties, Net | 23700247 | 24196376 |
| Other Property and Equipment, at Cost | 2573154 | 2573154 |
| Less – Accumulated Depreciation | (241712) | (228759) |
| Other Property and Equipment, Net | 2331442 | 2344395 |
| Total Property, Plant and Equipment, Net | 26031689 | 26540771 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Assets | $42083344 | $41608523 |

---

See accompanying notes to unaudited consolidated financial statements

------

<u>[**Table of Contents**](#id4ebb6cb196c407ea5987e41ee9e4b6d_7)</u>

CONSOLIDATED BALANCE SHEETS, CONTINUED <sup>(1)</sup>

(Unaudited)

LIABILITIES AND EQUITY

---

| | | |
|:---|:---|:---|
| | March 31,<br>2026 | December 31,<br>2025 |
| Current Liabilities: |  |  |
| &nbsp;&nbsp;Accounts Payable & Other Current Liabilities | $357297 | $1182142 |
| &nbsp;&nbsp;Note Payable, Current Portion | 972755 | 1010873 |
| Total Current Liabilities | 1330052 | 2193015 |
| Long-Term Liabilities: |  |  |
| &nbsp;&nbsp;Asset Retirement Obligation | 2553921 | 2509626 |
| &nbsp;&nbsp;Deferred Tax Liability, Net | 3184578 | 2906516 |
| Total Long-Term Liabilities | 5738499 | 5416142 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities | 7068551 | 7609157 |
| Equity: |  |  |
| &nbsp;&nbsp;Common Stock | 92368 | 92368 |
| &nbsp;&nbsp;Additional Paid-in Capital | 65000 | 65000 |
| &nbsp;&nbsp;Retained Earnings | 37087208 | 36080391 |
| Equity Before Treasury Stock | 37244576 | 36237759 |
| Less – Treasury Stock, at Cost | (2472606) | (2472606) |
| Total Equity Applicable to The Reserve Petroleum Company | 34771970 | 33765153 |
| Non-Controlling Interests | 242823 | 234213 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Equity | 35014793 | 33999366 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities and Equity | $42083344 | $41608523 |

---

<sup>(1)</sup> At March 31, 2026 and December 31, 2025, includes approximately $2,203,071 and $2,297,702, respectively, of assets related to consolidated variable interest entities that can be used only to settle obligations of the consolidated variable interest entities and approximately $972,755 and $1,010,873, respectively, of liabilities of consolidated variable interest entities for which creditors do have partial recourse to the general credit of the Company. For more information, see Note 6 – Non-Controlling Interest and Variable Interest Entities.

See accompanying notes to unaudited consolidated financial statements

------

<u>[**Table of Contents**](#id4ebb6cb196c407ea5987e41ee9e4b6d_7)</u>

THE RESERVE PETROLEUM COMPANY

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

---

| | | |
|:---|:---|:---|
| | Three Months Ended<br>March 31, | Three Months Ended<br>March 31, |
| | 2026 | 2025 |
| Operating Revenues: |  |  |
| &nbsp;&nbsp;Oil and Gas Sales | $5543055 | $3851465 |
| &nbsp;&nbsp;Lease Bonuses and Other | 10759 | 456650 |
| Total Operating Revenues | 5553814 | 4308115 |
| Operating Costs and Expenses: |  |  |
| &nbsp;&nbsp;Production | 1231836 | 1048361 |
| &nbsp;&nbsp;Exploration | 474385 | 104279 |
| &nbsp;&nbsp;Depreciation, Depletion, Amortization and Valuation Provision | 1477343 | 907878 |
| &nbsp;&nbsp;Asset Retirement Obligation Accretion | 43713 | 43557 |
| &nbsp;&nbsp;(Gain)/Loss on Disposition of Oil and Gas Properties | 97206 | (492282) |
| &nbsp;&nbsp;General, Administrative and Other | 633598 | 671435 |
| Total Operating Costs and Expenses | 3958081 | 2283228 |
| Income from Operations | 1595733 | 2024887 |
| Equity Income in Investees | 44743 | 39180 |
| Interest Expense | (15566) | (16149) |
| Other Income/(Loss), Net | (362324) | 267703 |
| Income Before Income Taxes and Non-Controlling Interests | 1262586 | 2315621 |
| Income Tax Provision/(Benefit): |  |  |
| &nbsp;&nbsp;Current | (11894) | 12234 |
| &nbsp;&nbsp;Deferred | 278062 | 535302 |
| Total Income Tax Benefit | 266168 | 547536 |
| Net Income | $996418 | $1768085 |
| Less: Net Loss Attributable to Non-Controlling Interests | (10399) | (10076) |
| Net Income Attributable to Common Stockholders | $1006817 | $1778161 |
| Per Share Data |  |  |
| &nbsp;&nbsp;Net Income Attributable to Common Stockholders, Basic | $6.64 | $11.71 |
| Weighted Average Shares Outstanding, Basic | 151594 | 151813 |

---

See accompanying notes to unaudited consolidated financial statements

------

<u>[**Table of Contents**](#id4ebb6cb196c407ea5987e41ee9e4b6d_7)</u>

THE RESERVE PETROLEUM COMPANY

CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Common <br>Stock | Additional <br>Paid-in <br>Capital | Retained<br>Earnings | Treasury<br>Stock | Non- <br>Controlling <br>Interests | Total |
| Three Months Ended March 31, 2026 | Three Months Ended March 31, 2026 |  |  |  |  |  |
| &nbsp;&nbsp;Balance as of December 31, 2025 | $92368 | $65000 | $36080391 | $(2472606) | $234213 | $33999366 |
| &nbsp;&nbsp;Net Income/(Loss) |  |  | 1006817 |  | (10399) | 996418 |
| &nbsp;&nbsp;Capital Contributions |  |  |  |  | 19009 | 19009 |
| &nbsp;&nbsp;Balance as of March 31, 2026 | $92368 | $65000 | $37087208 | $(2472606) | $242823 | $35014793 |
| Three Months Ended March 31, 2025 | Three Months Ended March 31, 2025 |  |  |  |  |  |
| &nbsp;&nbsp;Balance as of December 31, 2024 | $92368 | $65000 | $32694470 | $(2417341) | $205161 | $30639658 |
| &nbsp;&nbsp;Net Income/(Loss) |  |  | 1778161 |  | (10076) | 1768085 |
| &nbsp;&nbsp;Purchase of Treasury Stock |  |  |  | (25440) |  | (25440) |
| &nbsp;&nbsp;Capital Contributions |  |  |  |  | 16084 | 16084 |
| &nbsp;&nbsp;Balance as of March 31, 2025 | $92368 | $65000 | $34472631 | $(2442781) | $211169 | $32398387 |

---

See accompanying notes to unaudited consolidated financial statements

------

<u>[**Table of Contents**](#id4ebb6cb196c407ea5987e41ee9e4b6d_7)</u>

THE RESERVE PETROLEUM COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

---

| | | |
|:---|:---|:---|
| | Three Months Ended<br>March 31, | Three Months Ended<br>March 31, |
| | 2026 | 2025 |
| Cash Provided by/(Applied to) Operating Activities: |  |  |
| Net Income | $996418 | $1768085 |
| Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: |  |  |
| &nbsp;&nbsp; Depreciation, Depletion, Amortization and Valuation Provisions | 1477343 | 907878 |
| &nbsp;&nbsp; Accretion of Asset Retirement Obligation | 43713 | 43557 |
| &nbsp;&nbsp; (Gain)/Loss on Disposition of Oil and Gas Properties | 97206 | (492282) |
| &nbsp;&nbsp; Cash Distributions from Equity Method Investments | 57918 | 35371 |
| &nbsp;&nbsp; Income on Equity Method and Other Investments | (44743) | (39180) |
| &nbsp;&nbsp; Net Loss on Equity Securities | 401868 | 25154 |
| &nbsp;&nbsp; Deferred Income Taxes | 278062 | 535302 |
| &nbsp;&nbsp; Change in Refundable Income Taxes | (12149) | 591 |
| &nbsp;&nbsp; Change in Accounts Receivable | (223366) | (801828) |
| &nbsp;&nbsp; Change in Accounts Payable and Other Current Liabilities | (341052) | (75758) |
| Net Cash Provided by Operating Activities | $2731218 | $1906890 |
| Cash Provided by/(Applied to) Investing Activities: |  |  |
| &nbsp;&nbsp;Proceeds from Disposal of Oil and Gas Properties | 16740 | 1580166 |
| &nbsp;&nbsp;Purchase of Property, Plant and Equipment | (1565418) | (2337148) |
| &nbsp;&nbsp;Purchase of Investments | (353400) | (106275) |
| &nbsp;&nbsp;Sale of Equity Securities | 100602 | 803515 |
| &nbsp;&nbsp;Purchase of Equity Securities | (202038) | (491245) |
| Net Cash Applied to Investing Activities | $(2003514) | $(550987) |

---

See accompanying notes to unaudited consolidated financial statements

------

<u>[**Table of Contents**](#id4ebb6cb196c407ea5987e41ee9e4b6d_7)</u>

THE RESERVE PETROLEUM COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED

(Unaudited)

---

| | | |
|:---|:---|:---|
| | Three Months Ended<br>March 31, | Three Months Ended<br>March 31, |
| | 2026 | 2025 |
| Cash Provided by/(Applied to) Financing Activities: |  |  |
| &nbsp;&nbsp;Principal Payments on Note Payable | $(38118) | $(36259) |
| &nbsp;&nbsp;Capital Contributions from Non-Controlling Interests | 19009 | 16084 |
| &nbsp;&nbsp;Purchase of Treasury Stock |  | (25440) |
| Total Cash Applied to Financing Activities | (19109) | (45615) |
| Net Change in Cash and Cash Equivalents | 708595 | 1310288 |
| Cash and Cash Equivalents, Beginning of Period | 2051330 | 3923822 |
| Cash and Cash Equivalents, End of Period | $2759925 | $5234110 |
| Supplemental Disclosures of Cash Flow Information: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest Paid | $9984 | $11844 |
| Supplemental Schedule of Noncash Investing and Financing Activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Decrease in Accounts Payable for Property, Plant and Equipment Additions | $483793 | $210110 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Increase in Asset Retirement Obligation | $(582) | $(4074) |

---

See accompanying notes to unaudited consolidated financial statements

------

<u>[**Table of Contents**](#id4ebb6cb196c407ea5987e41ee9e4b6d_7)</u>

**THE RESERVE PETROLEUM COMPANY**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

March 31, 2026

(Unaudited)

**Note 1 – BASIS OF PRESENTATION**

The Reserve Petroleum Company, a Delaware corporation, is an independent oil and gas company focused on exploration and production. In addition to its core operations, the Company manages a diverse investment portfolio. Our consolidated subsidiaries consist of Grand Woods Development, LLC ("Grand Woods"), an Oklahoma limited liability company and wholly owned Trinity Water Services, LLC ("TWS"), an Oklahoma limited liability company. Unless otherwise specified or the context otherwise requires, all references in these notes to "the Company," "its," "our," and "we" are to The Reserve Petroleum Company and its consolidated subsidiaries.

The Company's consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and the rules and regulations of the Securities and Exchange Commission ("SEC"). The consolidated financial statements include the accounts of The Reserve Petroleum Company and its subsidiaries in which we hold a controlling interest, reflecting ownership of a majority of the voting interest, as of the financial statement date. Additionally, we consolidate Variable Interest Entities ("VIEs") under certain criteria discussed further below. All intercompany accounts and transactions have been eliminated in consolidation. When necessary, reclassifications to the consolidated financial statements are made to prior period financial information to conform to the current year presentation. These reclassifications had no material impact on net income or retained earnings.

The accompanying consolidated financial statements and notes thereto should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the Securities and Exchange Commission (hereinafter the "2025 Form 10-K").

In the opinion of management, the accompanying consolidated financial statements reflect all adjustments (consisting only of normal recurring accruals), which are necessary for a fair statement of the results of the interim periods presented. The results of operations for the current interim periods are not necessarily indicative of the operating results for the full year.

<u>Variable Interest Entities</u>

The Company decides at the inception of each arrangement whether an entity in which an investment is made, or in which the Company has other variable interests, is considered a VIE. Generally, an entity is a VIE if (1) the entity does not have sufficient equity at risk to finance its activities without additional subordinated financial support from other parties, (2) the entity's investors lack any characteristics of a controlling financial interest or (3) the entity was established with non-substantive voting rights. The Company consolidates VIEs when it is deemed to be the primary beneficiary. The primary beneficiary of a VIE is generally the party that both: (1) has the power to make decisions that most significantly affect the economic performance of the VIE and (2) has the obligation to absorb losses or the right to receive benefits that in either case could potentially be significant to the VIE. If the Company is not deemed to be the primary beneficiary of a VIE, it accounts for the investment or other variable interests in a VIE in accordance with other applicable GAAP.

<u>Non-Controlling Interests</u>

When the Company consolidates an entity, 100% of the assets, liabilities, revenues and expenses of the subsidiary are included in the consolidated financial statements. For those consolidated entities in which its ownership is less than 100%, it records a non-controlling interest as a component of equity on the Consolidated Balance Sheets, which represents the third-party ownership in the net assets of the respective consolidated subsidiary. Additionally, the portion of the net income or loss attributable to the non-controlling interest is reported as net income (loss) attributable to non-controlling interests on the Consolidated Statements of Income. Changes in ownership interests in an entity that do not result in deconsolidation are generally recognized within equity. See Note 6 for additional details on non-controlling interests.

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**Note 2 – SEGMENT REPORTING**

The Company has identified Oil and Gas as a reportable segment, which includes oil and natural gas exploration, development and minerals management with areas of concentration in Arkansas, Kansas, Oklahoma, South Dakota, Texas and Wyoming. This reportable segment's assets consist of oil and gas properties, net, presented on the Consolidated Balance Sheets.

In the Company's reconciliation to income before income taxes, in addition to segment information, it includes Equity Income in Investees, Interest Expense and Other Income/(Loss) categories to reconcile segment revenues, segment profit and other business activities to our operating results. Components in these categories do not meet the criteria to be considered reportable segments. The following table presents financial information for the Company's reportable segment and a reconciliation to income before income taxes:

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| | | |
|:---|:---|:---|
| | Three Months Ended<br>March 31, | Three Months Ended<br>March 31, |
| Segment Revenues | 2026 | 2025 |
| &nbsp;&nbsp;Oil and Gas Sales & Lease Bonus | $5553814 | $4308115 |
| Reportable Segment Expenses: |  |  |
| &nbsp;&nbsp;Production | 1231836 | 1048361 |
| &nbsp;&nbsp;Exploration | 474385 | 104279 |
| &nbsp;&nbsp;Depreciation, Depletion, Amortization and Valuation Provision | 1477343 | 907878 |
| &nbsp;&nbsp;Asset Retirement Obligation Accretion | 43713 | 43557 |
| &nbsp;&nbsp;(Gain)/Loss on Disposition of Oil and Gas Properties | 97206 | (492282) |
| Total Reportable Segment Expenses | 3324483 | 1611793 |
| Total Reportable Segment Profit | 2229331 | 2696322 |
| General, Administrative and Other | (633598) | (671435) |
| Equity Income in Investees | 44743 | 39180 |
| Interest Expense | (15566) | (16149) |
| Other Income/(Loss), Net | (362324) | 267703 |
| Income Before Income Taxes and Non-Controlling Interests | $1262586 | $2315621 |

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**Note 3 – REVENUE RECOGNITION**

A portion of oil and natural gas sales recorded in the Consolidated Statements of Income are the result of estimated volumes and pricing for oil and natural gas payments not yet received for the period. For the three months ended March 31, 2026 and 2025, that estimate represented $4,564,958 and $2,782,286, respectively, of oil and natural gas sales included in the Consolidated Statements of Income.

The Company's disaggregated revenue has two primary revenue sources, which are oil sales and natural gas sales. The following is an analysis of the components of oil and natural gas sales:

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| | | |
|:---|:---|:---|
| | Three Months Ended<br>March 31, | Three Months Ended<br>March 31, |
| | 2026 | 2025 |
| Oil Sales | $3750765 | $2642701 |
| Natural Gas Sales | 1752004 | 1123715 |
| Miscellaneous Oil and Gas Product Sales | 40286 | 85049 |
|  | $5543055 | $3851465 |

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**Note 4 – OTHER INCOME/(LOSS), NET**

The following is an analysis of the components of Other Income/(Loss), Net:

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| | | |
|:---|:---|:---|
| | Three Months Ended<br>March 31, | Three Months Ended<br>March 31, |
| | 2026 | 2025 |
| Net Realized and Unrealized Loss, Equity Securities | $(401868) | $(25154) |
| Interest Income | 2527 | 46514 |
| Dividend Income | 33677 | 16398 |
| Income from Other Investments | 5759 | 165906 |
| Miscellaneous Income/(Expense) | (2419) | 64039 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other Income/(Loss), Net | $(362324) | $267703 |

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**Note 5 – INVESTMENTS AND RELATED COMMITMENTS AND CONTINGENT LIABILITIES, INCLUDING GUARANTIES**

The Company's Equity Method Investments include:

Broadway Sixty-Eight, LLC ("Broadway 68"), an Oklahoma limited liability company, with a 33% ownership, was acquired in 1977. Broadway 68 owns and operates an office building in Oklahoma City, Oklahoma. We lease our corporate office from Broadway 68 on a month-to-month basis under the terms of the modified lease agreement. Rent expense for lease of the corporate office from Broadway 68 was $11,179 during each of the three months ended March 31, 2026 and 2025. The Company's investment in Broadway 68 totaled $176,841 and $153,502 at March 31, 2026, and December 31, 2025, respectively.

Broadway Seventy-Two, LLC ("Broadway 72"), an Oklahoma limited liability company, with a 40% ownership, was acquired in 2024. Broadway 72 owns and operates a commercial building in Oklahoma City, Oklahoma. The Company's investment in Broadway 72 totaled $968,269 and $971,829 at March 31, 2026, and December 31, 2025, respectively.

QSN Office Park, LLC ("QSN"), an Oklahoma limited liability company, with a 20% ownership, was acquired in 2016. QSN is constructing and selling office buildings in a new office park. The Company has guarantied 20% of a $620,000 development loan that matures July 15, 2028. The Company's investment in QSN totaled $317,679 and $347,053 at March 31, 2026, and December 31, 2025, respectively. The Company does not anticipate the need to perform on the guaranty of the loan.

Victorum BRH Investment, LLC ("BRH"), with a 7.53% ownership, was acquired in 2023. BRH serves as a special purpose investment vehicle to hold an investment in Berry-Rock Capital, LP ("Berry-Rock"). Berry-Rock is a provider of a rent-to-own program for individuals unable to qualify for a mortgage. The Company's investment in BRH totaled $310,152 and $310,333 at March 31, 2026, and December 31, 2025, respectively.

The Company's Other Investments primarily include:

Bailey Hilltop Pipeline, LLC ("Bailey"), with a 10% ownership, was acquired in 2008. Bailey is a gas gathering system pipeline for the Bailey Hilltop Prospect oil and gas properties in Grady County, Oklahoma. The Company's investment in Bailey totaled $5,434 at March 31, 2026, and December 31, 2025.

Cloudburst International, Inc. ("Cloudburst"), with a 8.85% ownership, was acquired in 2022. Cloudburst owns exclusive rights to a water purification process technology that is being developed and currently tested. The Company's investment in Cloudburst totaled $1,240,000 at March 31, 2026, and December 31, 2025.

Genlith, Inc. ("Genlith"), with a 5.15% ownership, was acquired in July 2023. Genlith identifies and structures investments in the new energy economy through corporate ventures, advisory and fund management. The Company's investment in Genlith totaled $50,000 at March 31, 2026, and December 31, 2025.

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Victorum Capital Club ("VCC") invests in and manages special purpose investment vehicles that hold investments in various startup companies. The Company participates with minority ownership in an assortment of investments held with VCC. The Company's investment in VCC special purpose investment vehicles totaled $200,802 at March 31, 2026, and December 31, 2025.

VCC Venture Fund I, LP ("VCC Venture"), with less than 2% ownership, was acquired in 2022, serves as a limited partnership to be used for investments in start-up entities and is managed by Victorum Capital Club. The Company committed to a $250,000 investment in VCC Venture. The Company's investment in VCC Venture totaled $218,750 at March 31, 2026, and December 31, 2025, which represents 87.50% of our capital commitment.

Cortado Ventures Fund II-A, LP ("Cortado II-A"), with less than 2% ownership, was acquired in 2023, serves as a limited partnership to be used for investments in start-up entities and is managed by Cortado Capital II, LLC. The Company's investment in Cortado II-A totaled $1,000,000 and $850,000 at March 31, 2026, and December 31, 2025, respectively.

Cypress MWC, LLC ("Cypress"), with 15% ownership, was acquired in 2024, is a town home development in Midwest City, Oklahoma. The Company's investment in Cypress totaled $750,000 at March 31, 2026 and December 31, 2025.

14501 N Rockwell, LLC ("Westcreek Ranch"), with a 3.74% ownership, was acquired in 2025. Westcreek Ranch is a cottage style apartment community development in Oklahoma City, Oklahoma. The Company committed to a $400,000 investment in Westcreek Ranch. The Company's investment in Westcreek Ranch totaled $116,570 at March 31, 2026 and December 31, 2025, which represents 29% of the Company's capital commitment.

Silverhorn BTR-OKC LLC ("Silverhorn"), with a 2.50% ownership, was acquired in January 2026. Silverhorn is a build-to-rent duplex development in NE Oklahoma City that will feature approximately 200 units on approximately 20 acres. The Company's investment in Silverhorn totaled $200,000 at March 31, 2026.

**Note 6 – NON-CONTROLLING INTEREST AND VARIABLE INTEREST ENTITIES**

Grand Woods is accounted for as a consolidated VIE. Grand Woods holds approximately 26.56 acres of undeveloped real estate in northeast Oklahoma City. The Company owns an 80.37% interest in Grand Woods in the form of 47.08 Class A units and 546,735 Class C units, with the remaining non-controlling interests held by other members, including 8.72% owned by executive officers of the Company. The Company is the only guarantor of a $1,200,000 note payable held by Grand Woods. See Note 7 for terms and guaranty of debt held by Grand Woods, which is included in the consolidated balance sheets. As a result of the guaranty, the note holder has partial recourse against the Company for the consolidated VIE's liabilities.

TWS is accounted for as a consolidated VIE. TWS entered into an agreement with TWS South, LLC ("TWS South"), a Texas limited liability company, on March 19, 2021, to form a water well drilling company. The agreement was subsequently terminated on April 19, 2024. TWS South holds title to certain Texas assets with TWS is the lienholder. During the term of the agreement, the Company recorded $495,977 in accounts receivable from TWS South. Due to significant uncertainty regarding collectibility, the full amount has been reserved through an allowance for credit losses on the consolidated balance sheets.

The following table presents the summarized assets and liabilities of Grand Woods and TWS included in the consolidated balance sheets as of March 31, 2026, and December 31, 2025. The assets of Grand Woods and TWS in the table below may only be used to settle obligations of Grand Woods or TWS, respectively.

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The assets and liabilities in the table below include third party assets and liabilities only and exclude intercompany balances that eliminate in consolidation.

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| | | | |
|:---|:---|:---|:---|
| | March 31, 2026 | March 31, 2026 | March 31, 2026 |
| | Grand Woods | TWS | Total |
| Assets: |  |  |  |
| &nbsp;&nbsp;Cash | $26100 | $5143 | $31243 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Current Assets | 26100 | 5143 | 31243 |
| &nbsp;&nbsp;Other Property and Equipment, at Cost | 2171828 |  | 2171828 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Assets | $2197928 | $5143 | $2203071 |
| Liabilities: |  |  |  |
| &nbsp;&nbsp;Note Payable, Current Portion | $972755 | $— | $972755 |
| &nbsp;&nbsp;&nbsp;Total Current Liabilities | 972755 |  | 972755 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities | $972755 | $— | $972755 |

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| | | | |
|:---|:---|:---|:---|
| | December 31, 2025 | December 31, 2025 | December 31, 2025 |
| | Grand Woods | TWS | Total |
| Assets: |  |  |  |
| &nbsp;&nbsp;Cash | $20344 | $105530 | $125874 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Current Assets | 20344 | 105530 | 125874 |
| &nbsp;&nbsp;Other Property and Equipment, at Cost | 2171828 |  | 2171828 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Assets | $2192172 | $105530 | $2297702 |
| Liabilities: |  |  |  |
| &nbsp;&nbsp;Note Payable, Current Portion | 1010873 |  | 1010873 |
| &nbsp;&nbsp;&nbsp;Total Current Liabilities | 1010873 |  | 1010873 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities | $1010873 | $— | $1010873 |

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**Note 7 – NOTE PAYABLE**

Grand Woods has a note payable ("the Note") that was used for the purchase and development of property. The Note has a 4% interest rate and matures November 23, 2026. The Note has scheduled payments of principal and interest in the amount of $16,034 per month, with a balloon payment of any unpaid principal balance due on November 23, 2026. The balance of the Note at March 31, 2026, and December 31, 2025, was $972,755 and $1,010,873, respectively, of which $972,755 is classified as current at March 31, 2026. Interest paid on the Note, in the three months ended March 31, 2026, and 2025 totaled $9,984 and $11,844, respectively. The Note is secured by the underlying property and a $1,200,000 guaranty issued by the Company. Covenants of the Note include a pay down requirement that states that sales of parcels will require a pay down on the loan of 90% of the net proceeds received from the purchaser less capital gains tax obligation. The remaining 10% shall be held in an operating reserve account for operating expenses and the use in payment of taxes. No distributions to partners, except for taxes, are permitted throughout the term of the loan. The intent of the Grand Woods investment manager and members is that proceeds from the sale of all, or part of, the property will be used to reduce or eliminate the Note. The Company anticipates the note will be refinanced if a sale does not occur prior to the maturity date of the note.

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**Note 8 – ASSET RETIREMENT OBLIGATION**

The Company records the fair value of its estimated liability to retire its oil and natural gas producing properties in the period in which it is incurred (typically the date of first sale). The estimated liability is calculated by obtaining current estimated plugging costs from the well operators and inflating it over the life of the property. Current year inflation rate used is 2.50%. When the liability is first recorded, a corresponding increase in the carrying amount of the related long-lived asset is also recorded. Subsequently, the asset is amortized to expense over the life of the property and the liability is increased annually for the change in its present value which is currently 7.50%.

A reconciliation of our asset retirement obligation liability is as follows:

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| | |
|:---|:---|
| Balance at December 31, 2025 | $2509626 |
| &nbsp;&nbsp;Revision to estimate | 582 |
| &nbsp;&nbsp;Accretion expense | 43713 |
| Balance at March 31, 2026 | $2553921 |

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**Note 9 – FAIR VALUE MEASUREMENTS**

The Company uses a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows:

Level 1 – Unadjusted quoted prices for identical assets or liabilities in active markets.

Level 2 – Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations whose inputs or significant value drivers are observable.

Level 3 – Unobservable inputs that reflect the Company's own assumptions.

<u>Recurring Fair Value Measurements</u>

Certain Company assets are reported at fair value in the accompanying consolidated balance sheets on a recurring basis. The Company determined the fair value of equity securities and available-for-sale debt securities using quoted market prices, public Net Asset Values ("NAV") and where applicable, securities with similar maturity dates and interest rates. Level 3 assets use NAV as fair value.

At March 31, 2026, and December 31, 2025, the Company's assets reported at fair value on a recurring basis using the three level valuation hierarchy are summarized as follows:

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| | | | |
|:---|:---|:---|:---|
| | March 31, 2026 | March 31, 2026 | March 31, 2026 |
| | Level 1 Inputs | Level 2 Inputs | Level 3 Inputs |
| Financial Assets: |  |  |  |
| &nbsp;&nbsp;Equity Securities: |  |  |  |
| &nbsp;&nbsp;&nbsp;Domestic Equities | $3827550 | $— | $— |
| &nbsp;&nbsp;&nbsp;Others | 45430 |  |  |
|  | $3872980 | $— | $— |

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| | | | |
|:---|:---|:---|:---|
| | December 31, 2025 | December 31, 2025 | December 31, 2025 |
| | Level 1 Inputs | Level 2 Inputs | Level 3 Inputs |
| Financial Assets: |  |  |  |
| &nbsp;&nbsp;Equity Securities: |  |  |  |
| &nbsp;&nbsp;&nbsp;Domestic Equities | $4176053 | $— | $— |
| &nbsp;&nbsp;&nbsp;International Equities | 52512 |  |  |
|  | $4228565 | $— | $— |

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The fair value hierarchy tables do not include investments that the Company has elected to use the NAV as a practical expedient to determine the fair value. These assets consist of an investment in a private business development fund. Liquidity of the fund is only attained through sales on the secondary market.

A reconciliation to the balance sheet equity securities is as follows:

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| | | |
|:---|:---|:---|
| | March 31, 2026 | December 31, 2025 |
| Level 1 Assets | $3872980 | $4228565 |
| Assets using NAV as a practical expedient, with a remaining commitment of $65,081 | 343003 | 287850 |
| Total | $4215983 | $4516415 |

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<u>Non-Recurring Fair Value Measurements</u>

The Company's asset retirement obligation annually represents a non-recurring fair value liability, for which there were no liabilities incurred in the three months ended March 31, 2026 and $4,074 in the comparable period in 2025. See Note 8 above for more information about this liability and the inputs used for calculating fair value.

There were no Impairment losses recorded on oil and gas assets in the three months ended March 31, 2026 and $45,821 in comparable period in 2025. This also relates to non-recurring fair value measurements calculated using Level 3 inputs. Certain oil and natural gas producing properties have been deemed to be impaired because the assets, evaluated on a property-by-property basis, are not expected to recover their entire carrying value through future cash flows. Impairment losses, when recorded, are included in the consolidated statements of income in the line-item Depreciation, Depletion, Amortization and Valuation Provision. Impairments are calculated by reducing the carrying value of the individual properties to an estimated fair value equal to the discounted present value of the future cash flow from these properties. Forward pricing is used for calculating future revenue and cash flow.

<u>Fair Value of Financial Instruments</u>

The estimated fair value of other financial instruments is the amount at which the instruments could be exchanged currently between willing parties. The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents approximate fair value, due to the short-term maturities of these instruments. Cash and cash equivalents are classified as Level 1 in the fair value hierarchy and the remaining financial instruments are classified as Level 2. The fair value of the Company's note payable approximates its carrying value and is classified as Level 2 in the fair value hierarchy.

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**ITEM 2.&nbsp;&nbsp;&nbsp;&nbsp; MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS** 

This discussion and analysis should be read with reference to ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS in the 2025 Form 10-K, as well as the consolidated financial statements included in this Form 10-Q.

**Forward-Looking Statements** 

This discussion and analysis includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give the Company's current expectations of future events. They include statements regarding the drilling of oil and natural gas wells, the production that may be obtained from oil and natural gas wells, cash flow and anticipated liquidity and expected future expenses.

Although management believes the expectations in these and other forward-looking statements are reasonable, we can give no assurance they will prove to have been correct. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Factors that would cause actual results to differ materially from expected results are described under "Forward-Looking Statements" on page 3 of the 2025 Form 10-K.

We caution you not to place undue reliance on these forward-looking statements, which speak only as of the date of this Form 10-Q, and we undertake no obligation to update this information because of new information, future developments, or otherwise as required by law. You are urged to carefully review and consider the disclosures made in this and our other reports filed with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect our business.

**LIQUIDITY AND CAPITAL RESOURCES**

Please refer to the consolidated balance sheets and the consolidated statements of cash flows in this Form 10-Q to supplement the following discussion. In the first three months of 2026, we continued to fund our business activity using internal sources of cash. We had net cash provided by operating activities of $2,731,218 in the three months ended March 31, 2026. Our cash provided by investing activities for the three months ended March 31, 2026 was $117,342 and consisted of proceeds from disposal of property, plant and equipment of $16,740 and sales of equity securities of $100,602. Our cash applied to investing activities for the three months ended March 31, 2026 was $2,120,856 and consisted of cash for the purchase of property, plant and equipment of $1,565,418, cash for the purchase of equity securities of $202,038, and cash for the purchase of equity method and other investments of $353,400. Our cash applied to financing activities for the three months ended March 31, 2026 was $38,118, which consisted solely of payments on the Grand Woods note payable. Cash provided by financing activities included Grand Woods Class C non-controlling interest contributions of $19,009. Cash and cash equivalents increased $708,595 (35%) to $2,759,925 at March 31, 2026, from $2,051,330 at December 31, 2025.

<u>Discussion of Significant Changes in Working Capital.</u> In addition to the changes in cash and cash equivalents discussed above, there were other changes in working capital line items from December 31, 2025. A discussion of these items follows.

Equity securities decreased $300,432 (7%) to $4,215,983 as of March 31, 2026, from $4,516,415 at December 31, 2025. The decrease was the result of $101,436 in net purchases and a $401,868 net decrease in market value.

Accounts receivable increased $223,366 (7%) to $3,217,939 as of March 31, 2026, from $2,994,573 at December 31, 2025, primarily due to substantial oil and gas receivables from new wells.

Accounts payable and other current liabilities decreased $824,845 (70%) to $357,297 as of March 31, 2026, from $1,182,142 at December 31, 2025, primarily due to invoice timing on end of year activity that was paid subsequent to year end.

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<u>Discussion of Significant Changes in the Consolidated Statements of Cash Flows.</u> Net cash provided by operating activities was $2,731,218 in the three months ended March 31, 2026, an increase of $824,328 (43%) from cash provided by operations in the comparable period in 2025 of $1,906,890. For more information see "Operating Revenues" and "Other Income" below.

Cash applied to the purchase of property, plant and equipment in the three months ended March 31, 2026, was $1,565,418, a decrease of $771,730 (33%) from cash applied to the purchase of property, plant and equipment in the comparable period in 2025 of $2,337,148. Unproved oil and gas properties account for approximately 60% of purchases, with proved oil and gas properties making up approximately 40%. Cash provided by the disposal of oil and gas properties was $16,740.

Cash applied to equity method and other investments in the three months ended March 31, 2026, was $353,400, an increase of $247,125 (233%) from $106,275 in the comparable period of 2025. Net purchases of equity securities was $101,436 in the three months ended March 31, 2026, with net sales of $312,270 in the comparable period in 2025.

<u>Off-Balance Sheet Arrangements.</u> We are a guarantor of 20% of a $620,000 development loan that matures July 15, 2028, held by QSN Office Park, LLC. We are committed to a $250,000 investment in VCC Venture Fund I, LP, of which $218,750 (87.50%) is invested at March 31, 2026. We are committed to a $400,000 investment in 14501 N Rockwell LLC, of which $116,570 (29%) is invested at March 31, 2026. For more information about these entities and the related off-balance sheet arrangements, see Note 5 to the accompanying consolidated financial statements.

<u>Conclusion.</u> Management is unaware of any additional material trends, demands, commitments, events or uncertainties, which would impact liquidity and capital resources to the extent that the discussion presented in the 2025 Form 10-K would not be representative of our current position.

**RESULTS OF OPERATIONS**

**Results of Operations – Three Months Ended March 31, 2026**

Net income decreased $771,667 (44%) to $996,418 in the three months ended March 31, 2026, from $1,768,085 in the comparable period in 2025. Net income per share attributable to common stockholders, basic, decreased $5.07 to $6.64 in the three months ended March 31, 2026, from $11.71 in the comparable period in 2025. A discussion of revenue from oil and natural gas sales and other significant line items in the consolidated statements of income follows.

<u>Operating Revenues.</u> Revenues from oil and natural gas sales increased $1,691,590 (44%) to $5,543,055 in the three months ended March 31, 2026, from $3,851,465 in the comparable period in 2025. The increase is due to an increase in oil sales of $1,108,064, an increase in natural gas sales of $628,289, and a decrease in miscellaneous oil and natural gas product sales of $44,763.

The $1,108,064 (42%) increase in oil sales to $3,750,765 in the three months ended March 31, 2026, from $2,642,701 in the comparable period in 2025 was the result of an increase in the volume sold and an increase in the average price per barrel (Bbl). The volume of oil sold increased 13,446 Bbls to 53,350 Bbls in the three months ended March 31, 2026, from 39,904 Bbls in the comparable period in 2025, resulting in a positive volume variance of $890,529. The average price per Bbl increased $4.07 to $70.30 per Bbl in the three months ended March 31, 2026, from $66.23 per Bbl in the comparable period in 2025, resulting in a positive price variance of $217,535.

The $628,289 (56%) increase in natural gas sales to $1,752,004 in the three months ended March 31, 2026, from $1,123,715 in the comparable period in 2025 was the result of an increase in the volume sold and an increase in the average price per thousand cubic feet ("MCF"). The volume of natural gas sold increased 120,078 MCF to 384,014 MCF in the three months ended March 31, 2026, from 263,936 MCF in the comparable period in 2025, resulting in a positive volume variance of $511,532. The average price per MCF increased $0.30 to $4.56 per MCF in the three months ended March 31, 2026, from $4.26 per MCF in the comparable period in 2025, resulting in a positive price variance of $116,757.

For both oil and natural gas sales, the price change was mostly the result of a change in the spot market prices upon which most of our oil and natural gas sales are based. These spot market prices have had significant fluctuations in the past and these fluctuations are expected to continue.

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Sales of miscellaneous oil and natural gas products were $40,286 in the three months ended March 31, 2026, compared to $85,049 in the comparable period in 2025, primarily due to decreased product sales in assets held in Ohio.

<u>Operating Costs and Expenses.</u> Operating costs and expenses increased $1,674,853 (73%) to $3,958,081 in the three months ended March 31, 2026, from $2,283,228 in the comparable period of 2025. See below for analysis of changes.

<u>Production Costs.</u> Production costs increased $183,475 (18%) to $1,231,836 in the three months ended March 31, 2026, from $1,048,361 in the comparable period in 2025. Lease operating expenses increased $73,786 (11%). Gas deductions and other costs increased $19,968 (14%). Gross production taxes increased $89,721 (43%).

<u>Exploration Costs.</u> Exploration costs increased $370,106 (355%) to $474,385 in the three months ended March 31, 2026, from $104,279 in the comparable period in 2025, due to increases of $433,528 in dry hole and plugging costs, and $1,839 in geological and geophysical and other expenses, offset by a decrease of $65,261 in cancelled and expired leases.

<u>Depreciation, Depletion, Amortization and Valuation Provision (DD&A).</u> DD&A increased $569,465 (63%) to $1,477,343 in the three months ended March 31, 2026, from $907,878 in the comparable period in 2025, primarily due to an increase in production from new wells.

<u>Gain/(Loss) on Disposition of Oil and Gas Properties.</u> We had a loss on the sale of unproved, non-producing leasehold of $97,206 in the three months ended March 31, 2026, with a gain on sale of $492,282 in the the comparable period in 2025.

<u>Equity Income in Investees.</u> Equity income in investees increased $5,563 (14%) to $44,743 in the three months ended March 31, 2026, from $39,180 in the comparable period in 2025. Equity income was comprised of $23,339 in Broadway Sixty-Eight, LLC ("Broadway 68"), income of $16,441 in Broadway Seventy-Two, LLC ("Broadway 72"), and income of $8,137 in Victorum BRH Investment LLC, offset by a loss of $3,174 in QSN Office Park, LLC ("QSN"). See Note 5 to the accompanying financial statements for additional information on equity method investments.

<u>Other Income/(Loss), Net.</u> We had a loss of $362,324 in the three months ended March 31, 2026 and income of $267,703 in the comparable period in 2025. See Note 4 to the accompanying consolidated financial statements for an analysis of the components of this line item.

<u>Income Tax Provision.</u> Income tax provision decreased $281,368 (51%) to $266,168 in the three months ended March 31, 2026, from $547,536 in the comparable period in 2025. Of the 2026 tax provision, the estimated current tax benefit was $11,894 and the estimated deferred tax provision was $278,062. Of the 2025 income tax provision, the estimated current tax provision was $12,234 and the estimated deferred tax provision was $535,302.

**ITEM 3.&nbsp;&nbsp;&nbsp;&nbsp; QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

Not applicable.

**ITEM 4.&nbsp;&nbsp;&nbsp;&nbsp; CONTROLS AND PROCEDURES** 

As defined in Rule 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 (the "Exchange Act"), the term "disclosure controls and procedures" means controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer's management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.

Our Principal Executive Officer and Principal Financial Officer evaluated the effectiveness of our disclosure controls and procedures. Based on this evaluation, they concluded that our disclosure controls and procedures were effective as of March 31, 2026.

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<u>[**Table of Contents**](#id4ebb6cb196c407ea5987e41ee9e4b6d_7)</u>

**Internal Control over Financial Reporting**

There were no changes in our internal control over financial reporting during the quarter ended March 31, 2026, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting (as such term is defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act).

**PART II – OTHER INFORMATION**

**ITEM 1.&nbsp;&nbsp;&nbsp;&nbsp; LEGAL PROCEEDINGS**

None.

**ITEM 1A.&nbsp;&nbsp;&nbsp;&nbsp; RISK FACTORS**

Not applicable.

**ITEM 2.&nbsp;&nbsp;&nbsp;&nbsp; UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS, AND PURCHASES OF EQUITY SECURITIES**

None.

**ITEM 3.&nbsp;&nbsp;&nbsp;&nbsp; DEFAULTS UPON SENIOR SECURITIES**

None.

**ITEM 4.&nbsp;&nbsp;&nbsp;&nbsp; MINE SAFETY DISCLOSURES**

Not applicable.

**ITEM 5.&nbsp;&nbsp;&nbsp;&nbsp; OTHER INFORMATION**

During the three months ended March 31, 2026, none of our officers or directors adopted or terminated a Rule 105-1 trading arrangement or a Non-Rule 10b5-1 trading arrangement, as each term is defined in Item 408(a) of Regulation S-K.

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<u>[**Table of Contents**](#id4ebb6cb196c407ea5987e41ee9e4b6d_7)</u>

**ITEM 6.&nbsp;&nbsp;&nbsp;&nbsp; EXHIBITS**

The following documents are exhibits to this Form 10-Q. Each document marked by an asterisk is filed electronically herewith.

---

| | |
|:---|:---|
| Exhibit<br>Number | Description |
| 31.1\* | <u>[Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as amended.](rsrv-20260331xexx311.htm)</u> |
| 31.2\* | <u>[Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as amended.](rsrv-20260331xexx312.htm)</u> |
| 32\* | <u>[Certification of Principal Executive Officer and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350.](rsrv-20260331xexx32.htm)</u> |
| 101.INS\* | Inline XBRL Instance Document |
| 101.SCH\* | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL\* | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF\* | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB\* | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE\* | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | Cover Page Interactive Data File (Formatted as Inline XBRL and contained in Exhibit 101) |

---

 \* Filed electronically herewith.

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereto duly authorized.

---

| | |
|:---|:---|
| | THE RESERVE PETROLEUM COMPANY |
| | (Registrant) |
| Date:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; May 15, 2026 | /s/ Cameron R. McLain |
|  | Cameron R. McLain |
|  | Principal Executive Officer |
| Date:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; May 15, 2026 | /s/ Lawrence R. Francis |
|  | Lawrence R. Francis |
|  | Principal Financial Officer |

---

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO**

**RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED**

I, Cameron R. McLain, certify that:

1. I have reviewed this report on Form 10-Q of The Reserve Petroleum Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the consolidated financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant is made known to us by others within this entity, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting, which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Any fraud, whether or not material that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; May 15, 2026 | /s/ Cameron R. McLain |
| | Cameron R. McLain |
| | Principal Executive Officer |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO**

**RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED**

I, Lawrence R. Francis, certify that:

1. I have reviewed this report on Form 10-Q of The Reserve Petroleum Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the consolidated financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant is made known to us by others within this entity, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting, which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Any fraud, whether or not material that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; May 15, 2026 | /s/ Lawrence R. Francis |
| | Lawrence R. Francis |
| | Principal Financial Officer |

---

## Ex-32

**Exhibit 32**

**CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL**

**FINANCIAL OFFICER PURSUANT TO**

**18 U.S.C. SECTION 1350**

In connection with the Quarterly Report of The Reserve Petroleum Company (the "Company") on Form 10-Q for the quarter ended March 31, 2026, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), we, Cameron R. McLain and Lawrence R. Francis, Principal Executive Officer and Principal Financial Officer, respectively, of the Company, certify, pursuant to 18 U.S.C. Section 1350, that to our knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The information contained in the Report fairly present, in all material respects, the financial condition and results of operations of the Company for the quarter ended March 31, 2026.

---

| | |
|:---|:---|
| May 15, 2026 | /s/ Cameron R. McLain |
| | Cameron R. McLain, President |
| | (Principal Executive Officer) |
| | /s/ Lawrence R. Francis |
| | Lawrence R. Francis, 1st Vice President |
| | (Principal Financial Officer) |

---

<br>