Deltic Timber Corp. Reports Operating Results (10-K)
Deltic Timber Corp. has a market cap of $776.1 million; its shares were traded at around $62.13 with a P/E ratio of 62.7 and P/S ratio of 5.6. The dividend yield of Deltic Timber Corp. stocks is 0.5%.Mutual Fund and Other Gurus that owns DEL: John Keeley of Keeley Fund Management, Jean-Marie Eveillard of First Eagle Investment Management, LLC, Chuck Royce of Royce& Associates.
Highlight of Business Operations: Wildlife Management. Deltic actively leases Company lands for hunting purposes and manages wildlife resources on Company property. The Company complies with the U.S. Endangered Species Act and strives to provide, maintain, and/or enhance habitats for all species with special biological or ecological concerns. The Company leased approximately 433,000, 439,000, and 427,000 acres to hunting clubs in 2010, 2009, and 2008, respectively. For the years ended 2010, 2009, and 2008, the Company had hunting lease revenues totaling $2,046,000, $1,893,000, and $1,782,000, respectively.
Oil and Gas Revenues. The Company receives oil and gas lease rental revenues when it agrees to grant certain mineral rights to third parties for terms that generally range from three to five years. Once production begins on leased mineral acres, it receives oil and gas royalty income payments. Deltic recorded oil and gas lease rental revenues of $2,016,000, $2,028,000, and $1,966,000 in 2010, 2009, and 2008, respectively on related leased acres of 37,200, 35,000, and 37,500, respectively. For the years ended 2010, 2009, and 2008, the Company earned $4,154,000, $2,296,000, and $1,686,000, respectively from oil and gas royalties.
Residential Development. Residential lots were first offered for sale in Chenal Valley during the second half of 1986 with closings beginning in 1987. As of December 31, 2010, 2,738 lots have been developed in 34 neighborhoods, and 2,534 lots have been sold, with about 2,342 residences constructed or under construction. When fully developed, Chenal Valley could include approximately 4,600 single-family residences. However, the actual number of residences in Chenal Valley will depend on final land usages and lot densities. The Company has developed lots in a wide variety of market segments. Lot size has ranged from 0.2 acres to 2.25 acres, and the lot sales price over the life of the development has ranged from $25,000 per lot to over $335,000 per lot.
The first phase of Chenal Downs was opened in December 1997, followed by a second phase in November 2000. By the end of 2010, 64 of the 76 developed lots were sold. Lot prices in Chenal Downs range from $89,000 to approximately $187,000. In Red Oak Ridge, the first two neighborhoods were offered for sale in 1998, with a third neighborhood offered in late 2005. These neighborhoods offer a choice of either estate-sized homesites, many of which overlook one of two private lakes, or garden-home lots. As of the end of 2010, 89 of the 135 lots offered have been sold, and prices for lots currently offered range from about $30,000 to almost $183,000.
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