Mexco Energy Corporation Reports Profitable First Quarter

MIDLAND, Texas, Aug. 14, 2013 /PRNewswire/ -- Mexco Energy Corporation (AMEX: MXC) today reported net income of $16,131 for the quarter ending June 30, 2013, the Company's first quarter of fiscal 2014, compared to a net loss of $63,217 for the same quarter of fiscal 2013.    

Operating revenues in the first quarter of fiscal 2014 were $996,525, an increase of 59% from $627,121 for the first quarter of fiscal 2013. 

The average sales price for the quarter ending June 30, 2013 was $7.23 per Mcfe compared to $5.22 per Mcfe for the quarter ending June 30, 2012, an increase of 39%.  Oil and gas production increased 33% and 7%, respectively, during the first quarter of fiscal 2014 as compared to the first quarter of fiscal 2013.

Nicholas C. Taylor, Chairman and CEO of Mexco Energy Corporation, said, "Horizontal drilling and increased prices together with favorable acquisitions have contributed to much improved revenues and earnings."

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, 2013.  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,






2013


2013






(Unaudited)



ASSETS







Current assets






Cash and cash equivalents

$      105,774


$      166,406



Accounts receivable:







Oil and gas sales

643,368


538,971




Trade                                                                   

19,618


16,370



Prepaid costs and expenses

57,895


19,281





Total current assets

826,655


741,028










Property and equipment, at cost






Oil and gas properties, using the full cost method

34,657,164


34,309,328



Other


93,257


92,326



Accumulated depreciation, depletion and amortization

(17,618,724)


(17,323,692)





Property and equipment, net

17,131,697


17,077,962










Derivative instruments – long term

6,167


-


Other noncurrent assets

6,974


116,454






$ 17,971,493


$  17,935,444









LIABILITIES AND STOCKHOLDERS' EQUITY





Current liabilities






Accounts payable and accrued expenses

$      364,637


$      431,848



Derivative instruments

27,224


-





Total current liabilities

391,861


431,848







Long-term debt

2,950,000


2,950,000


Asset retirement obligations

777,127


763,412


Deferred income tax liabilities

860,017


853,199





Total liabilities

4,979,005


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;







2,102,866 shares issued and 2,036,866 shares

outstanding as of June 30, 2013 and March 31, 2013

1,051,433


1,051,433



Additional paid-in capital

6,800,463


6,761,091



Retained earnings

5,481,584


5,465,453



Treasury stock, at cost (66,000 shares)

(340,992)


(340,992)


Total stockholders' equity

12,992,488


12,936,985





Total liabilities and stockholders' equity

$ 17,971,493


$ 17,935,444

 

Mexco Energy Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three Months Ended June 30,

(Unaudited)














2013


2012









Operating revenues:





Oil and gas

$       984,269


$      623,870


Other



12,256


3,251



Total operating revenues

996,525


627,121









Operating expenses:





Production

308,636


215,850


Accretion of asset retirement obligations

10,917


9,538


Depreciation, depletion and amortization

295,033


231,536


General and administrative

311,470


292,269



Total operating expenses

926,056


749,193









Operating profit (loss)

70,469


(122,072)









Other income (expense):





Interest income

2


130


Interest expense

(20,130)


(10,859)


Loss on derivative instruments

(27,392)


-



Net other expense

(47,520)


(10,729)









Earnings (loss) before provision for income taxes

22,949


(132,801)









Income tax expense (benefit):





Current 


-


-


Deferred


6,818


(69,584)






6,818


(69,584)










Net income (loss)

$       16,131


$     (63,217)


















Earnings (loss) per common share:






Basic

$               0.01


$         (0.03)



Diluted

$               0.01


$         (0.03)










Weighted average common shares outstanding:






Basic

2,036,866


2,035,949



Diluted

2,038,491


2,035,949









SOURCE Mexco Energy Corporation



RELATED LINKS
http://www.mexcoenergy.com

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