Mexco Energy Corporation Reports Financial Results For Fiscal 2013

Jul 02, 2013, 14:20 ET from Mexco Energy Corporation

MIDLAND, Texas, July 2, 2013 /PRNewswire/ -- Mexco Energy Corporation (AMEX: MXC) reported results on its Annual Report on Form 10-K to the Securities and Exchange Commission for the fiscal year ended March 31, 2013.

The Company reported a net loss of $176,374, or ($.09) per diluted share, for fiscal year 2013, a decrease from a net income of $329,993, or $.16 per diluted share, for fiscal 2012.  

The Company reported operating profit of $63,270, for the quarter ending March 31, 2013, the Company's fourth quarter of fiscal 2013.  Oil and gas revenues in the fourth quarter were $924,098 compared to $753,875 for the same quarter in fiscal 2012, an increase of 23%.  This is the result of increased oil production, increased prices in natural gas and revenue generated from the $1,150,000 acquisition of TBO Oil & Gas, LLC on December 31, 2012. 

Operating revenues in fiscal 2013 were $3,096,415, a decrease of 4% when compared to fiscal 2012 operating revenues of $3,240,039.  This is the result of a 20% increase in oil production and a 1% increase in gas production partially offset by a 9% decrease in oil price and a 23% decrease in natural gas price.  The average sales price received was $5.67 per Mcfe compared to $6.29 per Mcfe received in fiscal 2012, a 10% decrease.    

The Company's estimated present value of proved reserves at March 31, 2013 was approximately $18 million based on estimated future net revenues discounted at 10% per annum, pricing and other assumptions set forth in "Item 2 – Properties" of the Company's Form 10-K, a decrease of 25% as compared to the same at March 31, 2012.  The Company's total estimated proved reserves at March 31, 2013 were 7.844 billion cubic feet of natural gas, a decrease of 7% over the prior fiscal year, and 366,000 barrels of oil and natural gas liquids, an increase of 6% over the prior fiscal year.  For fiscal 2013, natural gas constituted approximately 78% of the Company's total proved reserves and approximately 36% of the Company's revenues, down from last year as a result of Mexco's shift in emphasis from natural gas to oil.          

Nicholas C. Taylor, Chairman and Chief Executive Officer, stated, "In fiscal 2013, the acquisition of TBO Oil & Gas, LLC for $1.15 million added established production of interests in over 280 wells and opportunities for extensive horizontal drilling in Texas and North Dakota's Bakken.  Fiscal fourth quarter pre-tax income turned upwards from poor results in the first three quarters due to previously depressed natural gas prices."         

The Company owns oil and gas properties in twelve states, with the majority of its activity centered in West Texas.  The Company continues to focus its efforts to increase oil and natural gas reserves, through acquisitions, exploration and development.

In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, Mexco Energy Corporation cautions that statements in this press release which are forward-looking and which provide other than historical information involve risks and uncertainties that may impact the Company's actual results of operations.  These risks include, but are not limited to, production variance from expectations, volatility of oil and gas prices, the need to develop and replace reserves, exploration risks, uncertainties about estimates of reserves, competition, government regulation, and mechanical and other inherit risks associated with oil and gas production.  A discussion of these and other factors, including risks and uncertainties, is set forth in the Company's Form 10-K for the fiscal year ended March 31, 2013.  Mexco Energy Corporation disclaims any intention or obligation to revise any forward-looking statements

 

Mexco Energy Corporation and Subsidiaries

CONSOLIDATED BALANCE SHEETS

March 31,

March 31,

2013

2012

ASSETS

Current assets

Cash and cash equivalents

$      166,406

$    498,681

Accounts receivable:

Oil and gas sales

538,971

333,191

Trade

16,370

30,404

Prepaid costs and expenses

19,281

16,782

Total current assets

741,028

879,058

Property and equipment, at cost

Oil and gas properties, using the full cost method

34,309,328

31,840,059

Other

92,326

78,520

34,401,654

31,918,579

Less accumulated depreciation, depletion and amortization

17,323,692

16,223,267

Property and equipment, net

17,077,962

15,695,312

Other noncurrent assets

116,454

-

$ 17,935,444

$ 16,574,370

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable and accrued expenses

$      431,848

$    402,098

Long-term debt

2,950,000

1,700,000

Asset retirement obligations

763,412

613,279

Deferred income tax liabilities

853,199

884,703

Commitments and contingencies

Stockholders' equity

Preferred stock - $1.00 par value;

10,000,000 shares authorized; none outstanding

-

-

Common stock - $0.50 par value; 40,000,000 shares authorized;

2,102,866 and 2,099,116 shares issued;

2,036,866 and 2,035,949 shares outstanding as of

 March 31, 2013 and 2012, respectively

1,051,433

1,049,558

Additional paid-in capital

6,761,091

6,608,350

Retained earnings

5,465,453

5,641,827

Treasury stock, at cost (66,000 and 63,167 shares, respectively)

(340,992)

(325,445)

Total stockholders' equity

12,936,985

12,974,290

$ 17,935,444

$ 16,574,370

Mexco Energy Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS

Year ended March 31,

2013

2012

2011

Operating revenues:

Oil and gas

$     3,063,707

$     3,223,659

$     3,145,247

Other

32,708

16,380

16,611

Total operating revenues

3,096,415

3,240,039

3,161,858

Operating expenses:

Production

1,082,043

926,215

1,025,932

Accretion of asset retirement obligation

39,376

36,251

34,129

Depreciation, depletion and amortization

1,100,425

996,205

1,047,906

General and administrative

1,028,846

950,690

877,790

Total operating expenses

3,250,690

2,909,361

2,985,757

Operating (loss) profit

(154,275)

330,678

176,101

Other income (expenses):

Interest income

229

195

360

Interest expense

(53,832)

(28,840)

(36,361)

Net other expense

(53,603)

(28,645)

(36,001)

(Loss) earnings before provision for income taxes

(207,878)

302,033

140,100

Income tax expense (benefit):

Current

-

-

(25,502)

Deferred

(31,504)

(27,960)

9,906

(31,504)

(27,960)

(15,596)

Net (loss) income

$      (176,374)

$        329,993

$        155,696

(Loss) income per common share:

Basic:

$            (0.09)

$              0.16

$              0.08

Diluted:

$            (0.09)

$              0.16

$              0.08

Weighted average common shares outstanding:

Basic:

2,036,959

2,028,014

1,947,605

Diluted:

2,036,959

2,036,241

1,962,656

 

SOURCE Mexco Energy Corporation



RELATED LINKS

http://www.mexcoenergy.com