Mexco Energy Corporation Reports Profitable First Quarter

Aug 14, 2013, 18:36 ET from Mexco Energy Corporation

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