Mexco Energy (NYSE American: MXC) reported fiscal 2026 net income of $1.31 million or $0.64 per diluted share, a 24% decrease year over year. Operating revenues were $6.56 million, down 8%, mainly from lower realized oil prices and reduced oil production volumes.
The company participated in 58 wells for about $1.25 million and spent $150,000 completing prior wells. Proved reserves had a present value of about $21 million, with oil reserves down 2% and natural gas reserves up 7%. Mexco ended the year with about $1.4 million cash and no bank line debt.
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Positive
Net income of $1,305,722 with $0.64 diluted EPS in fiscal 2026
Operating revenues of $6,561,324 despite lower oil prices and volumes
Estimated present value of proved reserves around $21 million at March 31, 2026
Natural gas proved reserves increased 7% to 4.67 billion cubic feet
Approximately 49% of operating revenues from royalties with no operating costs
Participation in 58 wells in fiscal 2026 at a cost of about $1.25 million
Planned $1.8 million drilling and completion program for fiscal 2027, with $500,000 already spent
Approximately $1.4 million cash on hand and no outstanding bank line indebtedness
Acquisition of royalty and mineral interests in 262 gross wells for about $800,000, funded from cash
Negative
Net income decreased 24% compared to fiscal 2025
Operating revenues declined 8% year over year
Lower average realized oil prices and reduced oil production volumes in fiscal 2026
Estimated proved oil reserves fell 2% to 659 thousand barrels
Oil accounted for about 81% of oil and gas sales, concentrating revenue exposure
Forward-looking plans subject to risks including price volatility and reserve uncertainty
News Market Reaction – MXC
-2.01%
2 alerts
-2.01%Session close to close
+11.1%Peak Tracked
$15.96MMarket Cap
0.1xRel. Volume
In the Jun 29 session, MXC declined 2.01%, reflecting a moderate negative market reaction.
Argus tracked a peak move of +11.1% during that session.
Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility.
This announcement highlights a 24% EPS decline and an 8% revenue drop, but also a $21M proved-reserv...
Analysis
This announcement highlights a 24% EPS decline and an 8% revenue drop, but also a $21M proved-reserve base and ongoing drilling plans. Key risks remain oil-price volatility; investors may watch whether natural gas growth offsets softer oil trends.
Key Figures
Net income:$1,305,722Diluted EPS:$0.64 per shareOperating revenues:$6,561,324+5 more
8 metrics
Net income$1,305,722Fiscal year ended March 31, 2026; down 24% vs fiscal 2025
Diluted EPS$0.64 per shareFiscal 2026 earnings per diluted share
Operating revenues$6,561,324Fiscal 2026; 8% decrease compared to fiscal 2025
Average oil price$64.25 per barrelAverage realized oil price for fiscal 2026
Average gas price$1.86 per thousand cubic feetAverage realized natural gas price for fiscal 2026
PV of proved reserves$21 millionEstimated present value at March 31, 2026, discounted at 10% per annum
Cash on hand$1.4 millionManagement commentary at fiscal 2026 year-end; no bank debt outstanding
Planned drilling spend$1.8 millionEstimated aggregate cost for FY 2027 drilling and completions
Nine‑month net income and revenues increased on higher production volumes.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Pattern Detected
Earnings headlines have frequently been followed by negative price reactions, including on stronger prior-year results.
Key Terms
royalty interests, mineral interests, proved reserves
3 terms
royalty interestsfinancial
"other operators drilled 177 gross wells (.07 net wells) on the Company’s royalty interests."
A royalty interest is a legal right to receive a share of revenue generated by a natural resource, property, or intellectual asset—like getting a slice of every sale or barrel produced—without owning or running the business that creates it. For investors it can act like a toll road: it provides potential steady cash flow and upside when production or sales rise, while leaving operational costs and many day-to-day risks with the operator; payments still vary with output, prices, and legal or regulatory changes.
mineral interestsfinancial
"The Company acquired various royalty and mineral interests in 262 gross wells"
Mineral interests are the ownership rights to the oil, gas, metals, coal or other naturally occurring resources beneath a piece of land — imagine owning the rights to the treasure buried under a property even if you don't own the yard above it. For investors, they matter because they can provide ongoing revenue from production or royalties and add tangible asset value, while also exposing holders to commodity price swings, depletion and regulatory risks.
proved reservestechnical
"The estimated present value of the Company’s proved reserves at March 31, 2026, was approximately $21 million"
Proved reserves are the quantities of oil or natural gas that geological and engineering data show with high confidence can be extracted under current economic and operating conditions. For investors, they act like a verified inventory: larger proved reserves usually support future production, revenue and borrowing capacity, while declines can signal falling asset value or the need for investment to replace supply.
MIDLAND, TX, June 29, 2026 (GLOBE NEWSWIRE) -- Mexco Energy Corporation (NYSE American: MXC) reported results in its Annual Report on Form 10-K filed with the Securities and Exchange Commission for the fiscal year ended March 31, 2026. The Company reported net income of $1,305,722, or $0.64 per diluted share, a 24% decrease compared to fiscal 2025.
Operating revenues for fiscal 2026 were $6,561,324, an 8% decrease compared to fiscal 2025. This decrease was primarily attributable to lower average realized oil prices and reduced oil production volumes, partially offset by higher average realized natural gas prices, increased natural gas production volumes, and increased income from one of the Company’s limited liability company investments. For the year ended March 31, 2026, the average realized price for oil was $64.25 per barrel, and the average realized price for natural gas was $1.86 per thousand cubic feet.
During fiscal 2026, the Company participated in the development of 57 horizontal wells and one vertical well at a cost of approximately $1.25 million, of which 20 wells are expected to be completed during the current fiscal year. Fifty-one of these wells are located in the Delaware Basin, in the western portion of the Permian Basin, in Eddy and Lea Counties, New Mexico. The Company also expended approximately $150,000, representing the remaining amount required to complete 17 horizontal wells that were drilled during fiscal 2025.
In addition to the working interest activity described above, other operators drilled 177 gross wells (.07 net wells) on the Company’s royalty interests. Approximately 49% of the fiscal 2026 operating revenues were derived from royalties and were therefore free of operating costs to Mexco.
For the fiscal year ending March 31, 2027, the Company currently expects to participate in the drilling and completion of 33 horizontal wells, as well as the completion of 20 horizontal wells that were drilled during fiscal 2026. The estimated aggregate cost of these activities is approximately $1.8 million, of which approximately $500,000 has been expended to date. The Company continues to evaluate other prospects for participation during the current fiscal year.
The estimated present value of the Company’s proved reserves at March 31, 2026, was approximately $21 million, based on estimated future net revenues discounted at 10% per annum, pricing and other assumptions set forth in “Item 2 – Properties” of Form 10-K. Estimated proved oil reserves at March 31, 2026, decreased 2% to 659 thousand barrels, while natural gas reserves increased 7% to 4.67 billion cubic feet compared to the prior fiscal year. For fiscal 2026, oil represented approximately 46% of the Company’s total proved reserves and approximately 81% of its oil and gas sales.
The President and Chief Financial Officer of the Company said, “We have approximately $1.4 million cash on hand, no outstanding indebtedness under our bank line of credit and are actively seeking opportunities.”
Throughout the year, the Company acquired various royalty and mineral interests in 262 gross wells (0.12 net wells) located in Weld County, Colorado; Eddy County, New Mexico; and multiple counties throughout Louisiana and Texas, for an aggregate purchase price of approximately $800,000. These and other related expenditures were funded from cash on hand.
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 primarily in the Permian Basin. 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 inherent 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, 2026. Mexco Energy Corporation disclaims any intention or obligation to revise any forward-looking statements.
For additional information, please contact: Tammy L. McComic, President and Chief Financial Officer of Mexco Energy Corporation, (432) 682-1119.
FAQ
How did Mexco Energy (MXC) perform financially in fiscal 2026?
Mexco Energy reported net income of $1,305,722, or $0.64 per diluted share, for fiscal 2026. According to Mexco, operating revenues were $6,561,324, with results affected by lower realized oil prices and reduced oil production volumes.
Why did Mexco Energy (MXC) net income and revenue decline in fiscal 2026?
Net income fell 24% and operating revenues declined 8% versus fiscal 2025. According to Mexco, lower average realized oil prices and reduced oil production volumes drove the decrease, partly offset by higher natural gas prices, increased gas volumes, and higher LLC investment income.
What drilling and completion plans does Mexco Energy (MXC) have for fiscal 2027?
Mexco expects to participate in drilling and completing 33 horizontal wells and completing 20 more in fiscal 2027. According to Mexco, the estimated aggregate cost is about $1.8 million, with approximately $500,000 already expended during the current fiscal year.
What are Mexco Energy (MXC) proved oil and gas reserves as of March 31, 2026?
Mexco reported estimated proved oil reserves of 659 thousand barrels and natural gas reserves of 4.67 billion cubic feet. According to Mexco, oil reserves decreased 2% while gas reserves increased 7%, with total proved reserves valued at about $21 million on a discounted basis.
How strong is Mexco Energy (MXC) balance sheet at the end of fiscal 2026?
Mexco reported approximately $1.4 million in cash and no outstanding indebtedness under its bank line of credit. According to Mexco, recent drilling, completion, and royalty acquisitions, totaling about $1.95 million, were funded from cash on hand.
What portion of Mexco Energy (MXC) revenue comes from royalty interests?
About 49% of Mexco’s fiscal 2026 operating revenues came from royalty interests, which carry no operating costs. According to Mexco, additional royalty and mineral interests were acquired in 262 gross wells across Colorado, New Mexico, Louisiana, and Texas for about $800,000.
How dependent is Mexco Energy (MXC) on oil sales versus natural gas?
Oil remains the dominant revenue driver, representing about 81% of oil and gas sales in fiscal 2026. According to Mexco, oil made up roughly 46% of total proved reserves, while natural gas represented the remaining percentage at March 31, 2026.
