Mexco Energy Corporation Reports Profitable Earnings
MIDLAND, Texas, Feb. 12 /PRNewswire-FirstCall/ -- Mexco Energy Corporation (Amex: MXC) today reported net income of $167,145, or $0.09 per diluted share, for the quarter ending December 31, 2009, the Company's third quarter of fiscal 2010. This was a 27% increase from $131,501 for the same quarter of fiscal 2009. Operating revenues in the third quarter of fiscal 2010 were $865,169, a 7% decrease from $927,644 for the third quarter of fiscal 2009.
The average sales price for the third quarter of fiscal 2010 was $5.25 per Mcfe, an increase of 1% compared to $5.19 per Mcfe for the third quarter of fiscal 2009. Oil production increased 8% and gas production decreased 9% during the third quarter of fiscal 2010 as compared to the same period of fiscal 2009 due to a temporary shut-in of a gas property.
For the nine months ended December 31, 2009, the Company reported net income of $257,492, or $0.13 per diluted share, a 78% decrease from $1,181,405 for the same period of fiscal 2009. Operating revenues were $2,269,640 for the nine month period, a decrease of 46% from $4,208,771 for the same period of fiscal 2009. The average sales price for the nine months ended December 31, 2009 was $4.48 per Mcfe compared to $8.88 per Mcfe for the same period of fiscal 2009. Gas production increased 7% and oil production increased 3% during the nine months ended December 31, 2009 as compared to the same period of fiscal 2009.
Mexco Energy Corporation owns oil and gas properties in ten states, with the majority of its activity centered in West Texas. The Company continues to focus its efforts on increasing 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, 2009. Mexco Energy Corporation disclaims any intention or obligation to revise any forward-looking statements.
Mexco Energy Corporation and Subsidiary
CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31, March 31,
2009 2009
---------- ----------
ASSETS
Current assets
Cash and cash equivalents $167,853 $223,583
Accounts receivable:
Oil and gas sales 463,632 351,040
Trade 66,421 164,834
Related parties 4,383 1,687
Prepaid costs and expenses 32,414 36,610
------ ------
Total current assets 734,703 777,754
Property and equipment, at cost
Oil and gas properties, using
the full cost method 27,122,035 26,735,778
Other 69,733 61,362
------ ------
27,191,768 26,797,140
Less accumulated depreciation,
depletion and amortization 13,857,489 13,066,014
---------- ----------
Property and equipment, net 13,334,279 13,731,126
---------- ----------
$14,068,982 $14,508,880
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses $357,355 $555,765
Long-term debt 990,000 1,400,000
Asset retirement obligations 474,359 440,011
Deferred income tax liabilities 925,741 1,185,494
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;
1,975,866 and 1,962,616 shares
issued; 1,891,866 and 1,878,616
shares outstanding as of
December 31, 2009 and March 31,
2009, respectively 987,933 981,308
Additional paid-in capital 5,747,420 5,617,620
Retained earnings 5,012,791 4,755,299
Treasury stock, at cost (84,000
shares) (426,617) (426,617)
---------- ----------
Total stockholders' equity 11,321,527 10,927,610
---------- ----------
$14,068,982 $14,508,880
=========== ===========
Mexco Energy Corporation and Subsidiary
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
December 31 December 31
2009 2008 2009 2008
---- ---- ---- ----
Operating revenue:
Oil and gas $857,035 $908,253 $2,248,789 $4,176,050
Other 8,134 19,391 20,851 32,721
----- ------ ------ ------
Total operating
revenues 865,169 927,644 2,269,640 4,208,771
Operating expenses:
Production 269,154 237,736 779,379 930,477
Accretion of
asset retirement
obligation 7,963 7,291 23,570 21,495
Depreciation,
depletion, and
amortization 252,940 271,530 791,474 751,337
General and
administrative 198,527 193,102 628,941 674,002
------- ------- ------- -------
Total operating
expenses 728,584 709,659 2,223,364 2,377,311
------- ------- --------- ---------
Operating
profit 136,585 217,985 46,276 1,831,460
Other income (expenses):
Interest income 100 110 328 1,117
Interest expense (8,516) (17,226) (26,877) (70,815)
------ ------- ------- -------
Net other expense (8,416) (17,116) (26,549) (69,698)
------ ------- ------- -------
Earnings before provision
for income taxes 128,169 200,869 19,727 1,761,762
Income tax expense (benefit):
Current 21,988 67,057 21,988 538,187
Deferred (60,964) 2,311 (259,753) 42,170
------- ----- -------- ------
(38,976) 69,368 (237,765) 580,357
------- ------ -------- -------
Net income $167,145 $131,501 $257,492 $1,181,405
======== ======== ======== ==========
Earnings per common share:
Basic $0.09 $0.07 $0.14 $0.64
Diluted $0.09 $0.07 $0.13 $0.61
Weighted average common
shares outstanding:
Basic 1,891,866 1,874,866 1,884,598 1,836,999
Diluted 1,946,076 1,938,746 1,946,362 1,928,029
SOURCE Mexco Energy Corporation
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