Mexco Energy Corporation Reports Profitable Fiscal 2011

MIDLAND, Texas, June 30, 2011 /PRNewswire/ -- Mexco Energy Corporation (AMEX: MXC) reported results on its Annual Report on Form 10-K to the Securities and Exchange Commission for the fiscal year ended March 31, 2011.

The Company reported net income of $155,696, or $.08 per diluted share, for fiscal year 2011 as compared to $400,839, or $.21 per diluted share, for fiscal 2010, a decrease of 61%.  

Operating revenues in fiscal 2011 were $3,161,858, a decrease of 3% when compared to 2010 operating revenues of $3,245,756.  This is the result of a 14% decrease in combined natural gas and oil production partially offset by a 14% increase in combined price of natural gas and oil.  The average sales price received was $5.60 per Mcfe compared to $4.92 per Mcfe received in fiscal 2010.  Production volumes of natural gas and oil decreased 16% and 6%, respectively, during fiscal 2011.  Revenues from oil and gas royalty interests accounted for approximately 38% of the Company's revenues for fiscal 2011.  

The Company's estimated present value of proved reserves at March 31, 2011 was approximately $22.7 million based on estimated future net revenues discounted at 10% per annum, pricing and other assumptions set forth in "Item 2 – Properties" of the Company's Form 10-K, an increase of 25% as compared to the same at March 31, 2010.  The Company's total estimated proved reserves at March 31, 2011 were 8.757 billion cubic feet of natural gas, an increase of 4% over the prior fiscal year, and 290,000 barrels of oil and natural gas liquids, an increase of 21% over the prior fiscal year.  For fiscal 2011, natural gas constituted approximately 83% of the Company's total proved reserves and approximately 58% of the Company's revenues.  

Nicholas C. Taylor, President and Chief Executive Officer, stated, "Fiscal 2011 was a productive year for acquisitions including a royalty interest in over 5,000 acres in the Haynesville area of Desoto Parish, Louisiana, a royalty company with interests in over 300 wells and most significantly, an approximately 10.8% working interest (7.77% net revenue interest) in an oil property in the Fuhrman-Mascho Field in Andrews County, Texas with a new well producing approximately 90 barrels of oil per day with space for at least 11 more infill wells."  Acquisitions by Mexco in fiscal 2011 totaled $3.1 million with debt currently at $950,000.  

The Company owns oil and gas properties in twelve states, with the majority of its activity centered in West Texas.  The Company continues to focus its efforts to increase oil and natural gas reserves, through acquisitions, exploration and development.

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 STATEMENTS OF OPERATIONS

Year ended March 31,












2011


2010


2009

Operating revenues:







Oil and gas

$       3,145,247


$       3,220,763


$       4,876,627


Other

16,611


24,993


49,366



Total operating revenues

3,161,858


3,245,756


4,925,993









Operating expenses:







Production

1,025,932


1,054,224


1,195,584


Accretion of asset retirement obligation

34,129


31,625


28,578


Depreciation, depletion and amortization

1,047,906


1,113,141


1,046,120


General and administrative

877,790


870,558


876,756



Total operating expenses

2,985,757


3,069,548


3,147,038









Operating profit

176,101


176,208


1,778,955









Other income (expenses):







Interest income

360


478


1,838


Interest expense

(36,361)


(33,082)


(81,961)










Net other expense

(36,001)


(32,604)


(80,123)









Earnings before provision for income taxes

140,100


143,604


1,698,832









Income tax expense (benefit):







Current

(25,502)


25,502


539,048


Deferred

9,906


(282,737)


(10,786)




(15,596)


(257,235)


528,262









Net income

$          155,696


$          400,839


$       1,170,570

















Earnings per common share:







Basic:

$                0.08


$                0.21


$                0.63


Diluted:

$                0.08


$                0.21


$                0.61









Weighted average common shares outstanding:







Basic:

1,947,605


1,888,070


1,846,394


Diluted:

1,962,656


1,929,588


1,934,235







Mexco Energy Corporation and Subsidiaries

CONSOLIDATED BALANCE SHEETS














March 31,


March 31,






2011


2010

ASSETS







Current assets






Cash and cash equivalents

$      179,071


$      160,439



Accounts receivable:







Oil and gas sales

384,215


538,444




Trade

42,432


63,455




Related parties

-


55



Prepaid costs and expenses

64,479


17,161





Total current assets

670,197


779,554


















Property and equipment, at cost






Oil and gas properties, using the full cost method

30,426,817


27,353,016



Other


78,520


76,161






30,505,337


27,429,177











Less accumulated depreciation, depletion and amortization

15,227,063


14,179,156





Property and equipment, net

15,278,274


13,250,021






$ 15,948,471


$ 14,029,575









LIABILITIES AND STOCKHOLDERS' EQUITY













Current liabilities






Accounts payable and accrued expenses

$      199,944


$      301,160










Long-term debt

1,800,000


700,000


Asset retirement obligations

528,911


486,305


Deferred income tax liabilities

912,663


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;







2,089,116 and 2,003,866 shares issued;

2,029,949 and 1,919,866 shares outstanding as of







March 31, 2011 and 2010, respectively

1,044,558


1,001,933



Additional paid-in capital

6,453,226


5,907,899



Retained earnings

5,311,834


5,156,138



Treasury stock, at cost (59,167 and 84,000 shares, respectively)

(302,665)


(426,617)


Total stockholders' equity

12,506,953


11,639,353






$ 15,948,471


$ 14,029,575




SOURCE Mexco Energy Corporation



RELATED LINKS
http://www.mexcoenergy.com

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.