Mexco Energy Corporation Reports Profitable Second Quarter

Nov 14, 2011, 18:26 ET from Mexco Energy Corporation

MIDLAND, Texas, Nov. 14, 2011 /PRNewswire/ -- Mexco Energy Corporation (AMEX: MXC) today reported net income of $79,272 for the quarter ending September 30, 2011, the Company's second quarter of fiscal 2012, a 13% increase from $70,040 for the same quarter of fiscal 2011.  

Operating revenues in the second quarter of fiscal 2012 were $815,761, a 3% increase from $788,639 for the same quarter of fiscal 2011.      

The average sales price for the quarter ending September 30, 2011 was $6.21 per Mcfe compared to $5.49 per Mcfe for the quarter ending September 30, 2010, an increase of 13%.  Oil production increased 10% and gas production decreased 13% during the second quarter of fiscal 2012 as compared to the second quarter of fiscal 2011.  This decrease in gas production is attributable to natural decline and certain production shut-in for repairs and maintenance.  

For the six months ended September 30, 2011, the Company reported net income of $183,657, a 142% increase from $75,816 for the six months ended September 30, 2010.  Operating revenues increased 6% to $1,724,855 for the six months ended September 30, 2011 from $1,625,032 for the same period of fiscal 2011.  

The average sales price for the six months ended September 30, 2011 was $6.44 per Mcfe compared to $5.58 per Mcfe for the six months ended September 30, 2010, an increase of 15%.  Oil production increased 6% and gas production decreased 11% for the six months ended September 30, 2011 as compared to the same period of fiscal 2011.  

Mexco Energy Corporation owns oil and gas properties in twelve states, with the majority of its activity centered in West Texas.  The Company plans to continue to focus its efforts to increase oil and natural gas reserves through exploration and development as well as acquisition of royalties with significant development potential.

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

September 30,

March 31,

2011

2011

(Unaudited)

ASSETS

Current assets

Cash and cash equivalents

$      79,429

$      179,071

Accounts receivable:

Oil and gas sales

381,992

384,215

Trade

25,567

42,432

Related parties

5

-

Prepaid costs and expenses

149,943

64,479

Total current assets

636,936

670,197

Property and equipment, at cost

Oil and gas properties, using the full cost method

30,238,628

30,426,817

Other

78,520

78,520

30,317,148

30,505,337

Less accumulated depreciation, depletion and amortization

15,706,243

15,227,063

Property and equipment, net

14,610,905

15,278,274

$ 15,247,841

$15,948,471

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable and accrued expenses

$      212,659

$      199,944

Long-term debt

775,000

1,800,000

Asset retirement obligation

551,803

528,911

Deferred income tax liabilities

850,627

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;

2,027,949 and 2,029,949 shares outstanding  

as of September 30 and March 31, 2011, respectively  

1,044,558

1,044,558

Additional paid-in capital

6,632,348

6,453,226

Retained earnings

5,495,491

5,311,834

Treasury stock, at cost (61,167 and 59,167 shares, respectively)  

(314,645)

(302,665)

Total stockholders' equity

12,857,752

12,506,953

$ 15,247,841

$ 15,948,471

Mexco Energy Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three Months Ended

Six Months Ended

September 30,

September 30,

2011

2010

2011

2010

Operating revenue:

Oil and gas

$   810,655

$   783,990

$1,715,995

$1,616,000

Other

5,106

4,649

8,860

9,032

Total operating revenues

815,761

788,639

1,724,855

1,625,032

Operating expenses:

Production

236,330

253,138

464,232

621,365

Accretion of asset retirement obligation

8,698

8,544

17,736

16,974

Depreciation, depletion, and amortization

234,006

267,691

479,180

519,186

General and administrative

225,261

199,544

495,561

447,683

Total operating expenses

704,295

728,917

1,456,709

1,605,208

Operating income

111,466

59,722

268,146

19,824

Other income (expenses):

Interest income

92

22

94

26

Interest expense

(5,961)

(6,857)

(16,881)

(10,196)

Net other expense

(5,869)

(6,835)

(16,787)

(10,170)

Income before provision for income taxes

105,597

52,887

251,359

9,654

Income tax expense (benefit):

Current

58,442

33,998

129,738

33,998

Deferred

(32,117)

(51,151)

(62,036)

(100,160)

26,325

(17,153)

67,702

(66,162)

Net income

$     79,272

$     70,040

$   183,657

$     75,816

Earnings per common share:

Basic

$         0.04

$         0.04

$         0.09

$         0.04

Diluted

$         0.04

$         0.04

$         0.09

$         0.04

Weighted average shares outstanding:

Basic

2,029,926

1,935,199

2,029,938

1,928,711

Diluted

2,036,476

1,945,893

2,041,269

1,946,420

SOURCE Mexco Energy Corporation



RELATED LINKS

http://www.mexcoenergy.com