Mexco Energy Corporation Reports Financial Results For Fiscal 2014 And Announces Appointment Of New Director

MIDLAND, Texas, June 25, 2014 /PRNewswire/ -- Mexco Energy Corporation (NYSE Market: MXC) reported results on its Annual Report on Form 10-K to the Securities and Exchange Commission ("SEC") for the fiscal year ended March 31, 2014.

The Company reported net income of $301,113, or $.15 per diluted share, for fiscal year 2014, an increase from a net loss of $176,374, or ($0.09) per diluted share, for fiscal 2013.  

Operating revenues in fiscal 2014 were $4,041,941, an increase of 31% when compared to fiscal 2013 operating revenues of $3,096,415.  This is the result of a 17% increase in oil production, a 13% increase in oil prices and a 41% increase in natural gas prices partially offset by a 10% decrease in natural gas production.  The average sales price received was $7.61 per Mcfe compared to $5.67 per Mcfe received in fiscal 2013, a 34% increase.   

The Company reported operating profit of $88,425 for the quarter ending March 31, 2014, the Company's fourth quarter of fiscal 2014, a 40% increase from the comparable quarter of fiscal 2013.  Oil and gas revenues in the fourth quarter were $953,291 compared to $924,098 for the same quarter in fiscal 2013, an increase of 3%.  This is primarily the result of increased oil and natural gas prices and revenue generated from the multiple acquisitions effective March 1, 2014. 

The Company's estimated present value of proved reserves at March 31, 2014 was approximately $25 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, an increase of 39% as compared to the same at March 31, 2013.  The Company's total estimated proved reserves at March 31, 2014 were 502,000 barrels of oil and natural gas liquids, an increase of 37% over the prior fiscal year, and 6.259 billion cubic feet of natural gas, a decrease of 20% over the prior fiscal year.  For fiscal 2014, natural gas constituted approximately 68% of the Company's total proved reserves and approximately 35% of the Company's revenues.          

Tammy McComic, President of the Company, stated, "The Company's prospects for current and future development of its properties in the Permian Basin of West Texas and New Mexico by horizontal drilling and multi-stage fracturing are extensive." 

Also, the Company today reported the Board of Directors (the "Board") appointed Michael J. Banschbach to the Company's Board of Directors effective July 1, 2014.  Mr. Banschbach is expected to stand for election at the 2014 Annual Meeting of Shareholders on September 9, 2014 for a term of one year. 

Mr. Banschbach graduated from the Colorado School of Mines in 1980 with a BS degree in Chemical Engineering.  Thereafter, Mr. Banschbach served with Atlantic Richfield (ARCO) for twenty years, primarily in the gas processing midstream sector, as both a petroleum engineer and as a commercial representative.  From 2001 until the present time, he has represented numerous independent oil and gas producing companies in negotiations with midstream companies for the connection of production, transmission and sales for oil and gas wells. 

Mexco Energy Corporation, a Colorado corporation, is an independent oil and gas company located in Midland, Texas engaged in the acquisition, exploration and development of oil and gas properties.  For more information on Mexco Energy Corporation, go to www.mexcoenergy.com.

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, 2014.  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,






2014


2013

ASSETS







Current assets






Cash and cash equivalents

$      156,082


$      166,406



Accounts receivable:







Oil and gas sales

628,098


538,971




Trade

18,144


16,370



Prepaid costs and expenses

28,804


19,281





Total current assets

831,128


741,028










Property and equipment, at cost






Oil and gas properties, using the full cost method

35,460,741


34,309,328



Other


94,356


92,326



Accumulated depreciation, depletion and amortization

(18,475,174)


(17,323,692)





Property and equipment, net

17,079,923


17,077,962









Other noncurrent assets

7,239


116,454





Total assets

$ 17,918,290


$ 17,935,444









LIABILITIES AND STOCKHOLDERS' EQUITY





Current liabilities






Accounts payable and accrued expenses

$      257,431


$      431,848



Income tax payable

6,500


-



Derivative instruments

44,981


-





Total current liabilities

308,912


431,848










Long-term debt

2,425,000


2,950,000


Asset retirement obligations

926,577


763,412


Deferred income tax liabilities

858,449


853,199





Total liabilities

4,518,938


4,998,459










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; 2,104,266 and 2,102,866 shares issued; 2,038,266 and 2,036,866 shares outstanding as of March 31, 2014 and 2013, respectively

1,052,133


1,051,433



Additional paid-in capital

6,921,645


6,761,091



Retained earnings

5,766,566


5,465,453



Treasury stock, at cost (66,000 shares)

(340,992)


(340,992)


Total stockholders' equity

13,399,352


12,936,985






$ 17,918,290


$ 17,935,444

 

Mexco Energy Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS

Year ended March 31,












2014


2013


2012

Operating revenues:







Oil and gas

$     3,994,295


$     3,063,707


$     3,223,659


Other

47,646


32,708


16,380



Total operating revenues

4,041,941


3,096,415


3,240,039









Operating expenses:







Production

1,231,814


1,082,043


926,215


Accretion of asset retirement obligation

44,366


39,376


36,251


Depreciation, depletion and amortization

1,151,482


1,100,425


996,205


General and administrative

1,136,939


1,028,846


950,690



Total operating expenses

3,564,601


3,250,690


2,909,361









Operating income (loss)

477,340


(154,275)


330,678









Other income (expenses):







Interest income

172


229


195


Interest expense

(65,387)


(53,832)


(28,840)


Loss on derivative instruments

(99,262)


-


-



Net other expense

(164,477)


(53,603)


(28,645)









Earnings (loss) before provision for income taxes

312,863


(207,878)


302,033









Income tax expense (benefit):







Current

6,500


-


-


Deferred

5,250


(31,504)


(27,960)




11,750


(31,504)


(27,960)









Net income (loss)

$        301,113


$      (176,374)


$        329,993

















Income (loss) per common share:







Basic:

$              0.15


$            (0.09)


$              0.16


Diluted:

$              0.15


$            (0.09)


$              0.16









Weighted average common shares outstanding:







Basic:

2,036,950


2,036,959


2,028,014


Diluted:

2,042,184


2,036,959


2,036,241

 

SOURCE Mexco Energy Corporation



RELATED LINKS
http://www.mexcoenergy.com

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