Mexco Energy Corporation Reports Profitable First Quarter

Aug 13, 2010, 18:21 ET from Mexco Energy Corporation

MIDLAND, Texas, Aug. 13 /PRNewswire-FirstCall/ -- Mexco Energy Corporation (Amex: MXC) today reported net income of $5,776 for the quarter ending June 30, 2010, the Company's first quarter of fiscal 2011, compared to a net loss of $68,003 for the same quarter of fiscal 2010.  

Operating revenues in the first quarter of fiscal 2011 were $836,393, an increase of $178,216 or 27% from $658,177 for the first quarter of fiscal 2010.      

The average sales price for the quarter ending June 30, 2010 was $5.65 per Mcfe compared to $3.98 per Mcfe for the quarter ending June 30, 2009, an increase of 42%.  Oil production increased 4% and gas production decreased 13% during the first quarter of fiscal 2011 as compared to the first quarter of fiscal 2010.

Mexco Energy Corporation owns oil and gas properties in ten states, with the majority of its activity centered in West Texas.  The Company plans to continue to focus its efforts to increase oil and natural gas reserves through exploration and development as well as acquisition of royalties with significant development potential.

Mexco Energy Corporation and Subsidiary

CONSOLIDATED BALANCE SHEETS

June 30,

March 31,

2010

2010

(Unaudited)

ASSETS

Current assets

Cash and cash equivalents

$      141,457

$      160,439

Accounts receivable:

Oil and gas sales

430,732

538,444

Trade                                                                    

22,136

63,455

Related parties

-

55

Prepaid costs and expenses

56,399

17,161

Total current assets

650,724

779,554

Property and equipment, at cost

Oil and gas properties, using the full cost method

27,439,085

27,353,016

Other

78,520

76,161

27,517,605

27,429,177

Less accumulated depreciation, depletion and amortization

14,430,651

14,179,156

Property and equipment, net

13,086,954

13,250,021

$ 13,737,678

$  14,029,575

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable and accrued expenses

$      401,078

$      301,160

Current portion of long-term debt

325,000

-

Total current liabilities

726,078

301,160

Long-term debt

-

700,000

Asset retirement obligation

498,180

486,305

Deferred income tax liabilities

853,748

902,757

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;

2,006,366 and 2,003,866 shares issued;

1,922,366 and 1,919,866 shares outstanding

as of June 30, 2010 and March 31, 2010, respectively

1,003,183

1,001,933

Additional paid-in capital

5,921,192

5,907,899

Retained earnings

5,161,914

5,156,138

Treasury stock, at cost (84,000 shares)

(426,617)

(426,617)

Total stockholders' equity

11,659,672

11,639,353

$ 13,737,678

$ 14,029,575

Mexco Energy Corporation and Subsidiary

CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three Months Ended June 30,

(Unaudited)

2010

2009

Operating revenues:

Oil and gas

$   832,010

$   653,810

Other

4,383

4,367

Total operating revenues

836,393

658,177

Operating expenses:

Production

368,227

240,973

Accretion of asset retirement obligation

8,430

7,728

Depreciation, depletion and amortization

251,495

263,462

General and administrative

248,139

232,185

Total operating expenses

876,291

744,348

Operating loss

(39,898)

(86,171)

Other income (expense):

Interest income

4

166

Interest expense

(3,339)

(9,624)

Net other expense

(3,335)

(9,458)

Loss before provision for income taxes

(43,233)

(95,629)

Income tax benefit:

Current  

-

-

Deferred

(49,009)

(27,626)

(49,009)

(27,626)

Net income (loss)

$         5,776

$     (68,003)

Earnings (loss) per common share:

Basic

$           0.00

$         (0.04)

Diluted

$           0.00

$         (0.04)

Weighted average common shares outstanding:

Basic

1,922,152

1,878,616

Diluted

1,946,847

1,878,616

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, 2010.  Mexco Energy Corporation disclaims any intention or obligation to revise any forward-looking statements.

For additional information, please contact:  Nicholas C. Taylor, President and Chief Executive Officer or Tammy L. McComic, Executive Vice-President and Chief Financial Officer, both of Mexco Energy Corporation, (432) 682-1119.

SOURCE Mexco Energy Corporation