Mexco Energy Corporation Reports Financial Results for Third Quarter

Rhea-AI Summary

Mexco Energy (NYSE American: MXC) reported financial results for the nine months ending December 31, 2024, with net income of $1,077,370 ($0.51 per diluted share). Operating revenues reached $5,368,327, marking a 12% increase compared to the same period in fiscal 2024, driven by higher oil and natural gas production volumes but partially offset by lower average sales prices.

For Q3 fiscal 2025, the company posted net income of $469,133 ($0.22 per diluted share), up 36% from $345,610 in Q3 fiscal 2024, with operating revenues of $1,891,265. Oil represented 86% of operating revenues for the first nine months.

The company plans to participate in 28 drilling and 19 completion horizontal wells at an estimated cost of $1.8 million for fiscal 2025, with $1.1 million already spent. Additionally, Mexco has invested $2 million in royalty and mineral interest acquisitions across 700 producing wells in 37 counties across 9 states.

Positive

• Net income increased 36% YoY in Q3 fiscal 2025
• Operating revenues grew 12% in first nine months of fiscal 2025
• Strong oil revenue contribution at 86% of total operating revenues
• Significant expansion through investment in 700 producing wells across 9 states

Negative

• Lower average sales prices for oil and natural gas
• Natural gas prices affected by Permian Basin pipeline capacity
• Significant capital expenditure requirements ($1.8M) for well development

News Market Reaction

-2.95%

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-2.95% News Effect

On the day this news was published, MXC declined 2.95%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

MIDLAND, TX, Feb. 07, 2025 (GLOBE NEWSWIRE) -- Mexco Energy Corporation (NYSE American: MXC) today reported net income of $1,077,370, or $0.51 per diluted share, for the nine months ending December 31, 2024.

Operating revenues in the first nine months of fiscal 2025 were $5,368,327, an increase of 12% when compared to the first nine months of fiscal 2024. This increase was primarily due to an increase in oil and natural gas production volumes and partially offset by a decrease in the average sales prices of oil and natural gas. Natural gas prices have been low due to limited pipeline capacities in the Permian Basin. Oil contributed to 86% of our operating revenues for the first nine months of fiscal 2025.

Net income of $469,133, or $0.22 per diluted share, for the Company’s third quarter of fiscal 2025, an increase of 36% compared to $345,610, or $0.16 per diluted share, for the third quarter of fiscal 2024. Operating revenues in the third quarter of fiscal 2025 were $1,891,265.

The Company currently expects to participate in the drilling of 28 and completion of 19 horizontal wells at an estimated aggregate cost of approximately $1.8 million for the fiscal year ending March 31, 2025, of which $1.1 million has been expended to date.

Also, the Company has expended to date, approximately $2 million for royalty and mineral interest acquisitions in approximately 700 producing wells with additional potential development located in 37 counties in 9 states.

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, 2024. 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, at Mexco Energy Corporation, (432) 682-1119.

FAQ

What was MXC's net income for Q3 fiscal 2025?

Mexco Energy reported net income of $469,133 ($0.22 per diluted share) for Q3 fiscal 2025, representing a 36% increase from the same period last year.

How much did MXC's operating revenues increase in the first nine months of fiscal 2025?

MXC's operating revenues increased by 12% to $5,368,327 in the first nine months of fiscal 2025 compared to the same period in fiscal 2024.

What is MXC's planned well development program for fiscal 2025?

MXC plans to participate in drilling 28 horizontal wells and completing 19 wells at an estimated total cost of $1.8 million for fiscal year 2025.

How much has MXC invested in royalty and mineral interest acquisitions?

MXC has invested approximately $2 million in royalty and mineral interest acquisitions, covering 700 producing wells across 37 counties in 9 states.

What percentage of MXC's operating revenues came from oil production?

Oil production contributed 86% of MXC's operating revenues for the first nine months of fiscal 2025.