Mexco Energy Corporation Reports Profitable Second Quarter

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

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