Mexco Energy Corporation Reports Third Quarter Financial Results

MIDLAND, Texas, Feb. 26, 2013 /PRNewswire/ -- Mexco Energy Corporation (NYSE MKT: MXC) reported a net loss of $39,580 for the quarter ending December 31, 2012, the Company's third quarter of fiscal 2013, a decrease from a net income of $50,961 for the same quarter of fiscal 2012. 

Operating revenues in the third quarter of fiscal 2013 were $790,604, a 4% increase from $757,560 for the third quarter of fiscal 2012.      

The average sales price for the quarter ending December 31, 2012 was $5.59 per Mcfe compared to $6.10 per Mcfe for the quarter ending December 31, 2011, a decrease of 8%.  Oil production increased 23% and gas production increased 10% during the third quarter of fiscal 2013 as compared to the third quarter of fiscal 2012.     

For the nine months ended December 31, 2012, the Company reported a net loss of $102,034 compared to net income of $234,618 for the same period of fiscal 2012.  Operating revenues decreased 13% to $2,161,326 for the nine months ended December 31, 2012 from $2,482,415 for the same period of fiscal 2012. 

The average sales price of oil and natural gas for the nine months ended December 31, 2012 was $5.44 per Mcfe compared to $6.33 per Mcfe for the same period of fiscal 2012, a decrease of 14%.  Oil production increased 14% and gas production decreased 3% for the nine months ended December 31, 2012 as compared to the same period of fiscal 2012. 

On December 31, 2012, the Company purchased all of the outstanding ownership interests of TBO Oil & Gas, LLC, a Texas limited liability company which owns non-operated working interests producing primarily oil.  The cash purchase price of $1,150,000 was funded from our $4.9 million bank credit facility.  These interests cover approximately 280 wells located in 16 counties in Texas, New Mexico and North Dakota. 

The Company participated in drilling a horizontal well in Ellis County, Oklahoma which on February 22, 2013 produced per day 803 barrels of oil, 143 barrels of water and 4,531,000 cubic feet of natural gas on a 21/64" choke.  The Company owns approximately a 1.2% working interest (.9% net revenue interest) in this well.  Tammy L. McComic, President of the Company, stated, "Although the Company has previously participated in several horizontal wells, this well is one in a growing trend toward horizontal oil wells of the Company and the industry."  The Company has interests in horizontal oil wells in the Bakken of North Dakota and the Wolfcamp and Avalon-Bone Springs producing formations of Texas and New Mexico. 

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, 2012.  Mexco Energy Corporation disclaims any intention or obligation to revise any forward-looking statements.

 

Mexco Energy Corporation and Subsidiaries

CONSOLIDATED BALANCE SHEETS














December 31,


March 31,






2012


2012






(Unaudited)



ASSETS







Current assets






Cash and cash equivalents

$      105,175


$      498,681



Accounts receivable:







Oil and gas sales

512,496


333,191




Trade

18,783


30,404



Prepaid costs and expenses

88,967


16,782





Total current assets

725,421


879,058










Property and equipment, at cost






Oil and gas properties, using the full cost method

33,838,836


31,840,059



Other

92,326


78,520






33,931,162


31,918,579











Less accumulated depreciation, depletion and amortization

16,998,081


16,223,267





Property and equipment, net

16,933,081


15,695,312






$ 17,658,502


$ 16,574,370









LIABILITIES AND STOCKHOLDERS' EQUITY





Current liabilities






Accounts payable and accrued expenses

$      274,267


$      402,098










Long-term debt

2,900,000


1,700,000


Asset retirement obligations

745,544


613,279


Deferred income tax liabilities

734,620


884,703










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 and 2,099,116 shares issued; 2,039,699 and 2,035,949 shares outstanding as of December 31, 2012 and March 31, 2012, respectively











1,051,433


1,049,558



Additional paid-in capital

6,738,290


6,608,350



Retained earnings

5,539,793


5,641,827



Treasury stock, at cost - 63,167 shares as of







December 31, 2012 and March 31, 2012

(325,445)


(325,445)


Total stockholders' equity

13,004,071


12,974,290






$ 17,658,502


$ 16,574,370

         

Mexco Energy Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)







Three Months Ended


Nine Months Ended






December 31


December 31






2012


2011


2012


2011

Operating revenue:









Oil and gas

$    781,426


$   753,789


$ 2,139,609


$2,469,784


Other

9,178


3,771


21,717


12,631



Total operating revenues

790,604


757,560


2,161,326


2,482,415













Operating expenses:









Production

325,712


233,317


796,074


697,548


Accretion of asset retirement obligation

9,680


9,297


28,822


27,033


Depreciation, depletion, and amortization

283,498


223,181


774,814


702,362


General and administrative

250,183


227,928


779,161


723,489



Total operating expenses

869,073


693,723


2,378,871


2,150,432













Operating (loss) income

(78,469)


63,837


(217,545)


331,983













Other income (expenses):









Interest income                                   

2


47


132


141


Interest expense

(13,078)


(5,854)


(34,704)


(22,735)



Net other expense

(13,076)


(5,807)


(34,572)


(22,594)













(Loss) income before provision for income taxes

(91,545)


58,030


(252,117)


309,389













Income tax (benefit) expense:









Current

-


(4,858)


-


124,880


Deferred

(51,965)


11,927


(150,083)


(50,109)






(51,965)


7,069


(150,083)


74,771













Net (loss) income

$    (39,580)


$     50,961


$  (102,034)


$   234,618

























(Loss) earnings per common share:









Basic

$        (0.02)


$         0.03


$        (0.05)


$         0.12


Diluted

$        (0.02)


$         0.03


$        (0.05)


$         0.12













Weighted average common shares outstanding:









Basic

2,036,938


2,026,011


2,036,277


2,028,626


Diluted

2,036,938


2,031,453


2,036,277


2,037,994

 

SOURCE Mexco Energy Corporation



RELATED LINKS
http://www.mexcoenergy.com

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