Mexco Energy Corporation Reports Profitable First Quarter

12 Aug, 2011, 12:50 ET from Mexco Energy Corporation

MIDLAND, Texas, Aug. 12, 2011 /PRNewswire/ -- Mexco Energy Corporation (AMEX: MXC) today reported net income of $104,385 for the quarter ending June 30, 2011, the Company's first quarter of fiscal 2012, compared to $5,776 for the same quarter of fiscal 2011, an increase of 1,707%.    

Operating revenues in the first quarter of fiscal 2012 were $909,094, an increase of $72,701 or 9% from $836,393 for the first quarter of fiscal 2011 and operating expenses decreased 14%.  

The average sales price for the quarter ending June 30, 2011 was $6.67 per Mcfe compared to $5.65 per Mcfe for the quarter ending June 30, 2010, an increase of 18%.  Oil production increased 1% and gas production decreased 10% during the first quarter of fiscal 2012 as compared to the first quarter of fiscal 2011.

Nicholas C. Taylor, President and CEO of Mexco Energy Corporation, said, "During the quarter, we received $450,000 in cash for an assignment of a five year term leasehold for a portion of our interest in 200 acres in Loving County, Texas.  This, together with operating revenues, enabled us to reduce our long term debt to date by 54% while participating in the drilling of seven (7) infill wells in projects in which we own working interest.  Our debt is now 6% of equity."  

The Company owns oil and gas properties in twelve states, with the majority of its activity centered in West Texas.  

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, 2011.  Mexco Energy Corporation disclaims any intention or obligation to revise any forward-looking statements.

Mexco Energy Corporation and Subsidiaries

CONSOLIDATED BALANCE SHEETS

June 30,

March 31,

2011

2011

(Unaudited)

ASSETS

Current assets

Cash and cash equivalents

$      123,513

$      179,071

Accounts receivable:

Oil and gas sales

437,698

384,215

Trade                                                                    

21,433

42,432

Prepaid costs and expenses

90,082

64,479

Total current assets

672,726

670,197

Property and equipment, at cost

Oil and gas properties, using the full cost method

30,086,663

30,426,817

Other

78,520

78,520

30,165,183

30,505,337

Less accumulated depreciation, depletion and amortization

15,472,236

15,227,063

Property and equipment, net

14,692,947

15,278,274

$ 15,365,673

$  15,948,471

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable and accrued expenses

$      281,391

$      199,944

Long-term debt

950,000

1,800,000

Asset retirement obligation

541,667

528,911

Deferred income tax liabilities

882,744

912,663

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;

2,089,116 shares issued and 2,029,949 shares

outstanding as of June 30, 2011 and March 31, 2011

1,044,558

1,044,558

Additional paid-in capital

6,551,759

6,453,226

Retained earnings

5,416,219

5,311,834

Treasury stock, at cost (59,167 shares)

(302,665)

(302,665)

Total stockholders' equity

12,709,871

12,506,953

$ 15,365,673

$ 15,948,471

Mexco Energy Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three Months Ended June 30,

(Unaudited)

2011

2010

Operating revenues:

Oil and gas

$       905,340

$      832,010

Other

3,754

4,383

Total operating revenues

909,094

836,393

Operating expenses:

Production

227,902

368,227

Accretion of asset retirement obligation

9,038

8,430

Depreciation, depletion and amortization

245,174

251,495

General and administrative

270,300

248,139

Total operating expenses

752,414

876,291

Operating income (loss)

156,680

(39,898)

Other income (expense):

Interest income

1

4

Interest expense

(10,919)

(3,339)

Net other expense

(10,918)

(3,335)

Income (loss) before provision for income taxes

145,762

(43,233)

Income tax expense (benefit):

Current  

71,296

-

Deferred

(29,919)

(49,009)

41,377

(49,009)

Net income

$       104,385

$          5,776

Earnings per common share:

Basic

$             0.05

$           0.00

Diluted

$             0.05

$           0.00

Weighted average common shares outstanding:

Basic

2,029,949

1,922,152

Diluted

2,046,061

1,946,847

SOURCE Mexco Energy Corporation



RELATED LINKS

http://www.mexcoenergy.com