Mexco Energy Corporation Reports Profitable First Quarter

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

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