The Company was founded in Range, Texas County, the Oklahoma Panhandle, in 1926, as Panhandle Cooperative Royalty Company and operated as a Co-op until 1979. At that time the Company was merged into Panhandle Royalty Company and its shares were registered with the SEC. On April 2, 2007 the Company's name was changed to Panhandle Oil and Gas Inc. The name change was made to clear up confusion as to the nature of the Company's business operations. Panhandle has never been a Royalty Trust and is not strictly a royalty company. The Company pays dividends on its common shares each March, June, September and December to each of its approximately 5,600 shareholders.

Initially the Co-op issued one share of stock, par value $50, for 40 acres of minerals in a homesteader's 160 acre tract. While operating as a Co-op, the Company returned most of its income to shareholders as dividends. Upon conversion to a public company in 1979, though still paying dividends, the Company began to retain a substantial part of its cash flow to acquire additional mineral acreage and participate with a working interest in the drilling of wells on its mineral acreage. Several acquisitions of additional mineral acreage and small companies were made in the 80's and 90's, and the acquisition of Wood Oil Company was consummated on October 1, 2001.

Currently the Company owns 255,000 fee mineral acres and a working interest and/or a royalty interest in over 5,800 wells. However, the Company does not operate any wells.