Mexco Energy Corporation (NYSE American: MXC) reported third-quarter fiscal 2026 net income of $50,245 ($0.02 per diluted share) and nine-month net income of $615,702 ($0.30 per diluted share). The quarter's net income decreased 89% versus the prior-year quarter, primarily due to lower oil prices.
Operating revenues were $1,383,887 in the quarter and $4,932,806 for the nine months, with oil representing 77% of nine-month revenues. The company expects to participate in the drilling and completion of 50 horizontal wells at an estimated aggregate cost of ≈$1.6 million for the fiscal year ending March 31, 2026, and has spent ~$0.9 million to date.
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Positive
Planned drilling: participation in 50 horizontal wells at an estimated aggregate cost of ~$1.6M for fiscal year ending Mar 31, 2026
Capital deployed: ~$0.9M already expended on drilling program, demonstrating near-term activity
Acquisitions: ~$650k spent for royalty and mineral interests across ~100 producing wells to support future development
Negative
Net income -89% in Q3 fiscal 2026 versus prior-year quarter, driven primarily by lower oil prices
Revenue concentration: oil accounted for 77% of operating revenues for the first nine months, exposing results to oil price volatility
News Market Reaction – MXC
-5.73%
-5.73%Session close to close
In the Feb 11 session, MXC declined 5.73%, reflecting a notable negative market reaction.
The stock moved -5.7% in the session following this news. A negative reaction despite ongoing drilli...
Analysis
The stock moved -5.7% in the session following this news. A negative reaction despite ongoing drilling and royalty investments would have fit the weaker Q3 fundamentals, with net income dropping to $50,245 and nine‑month operating revenues down 8% to $4.93 million. Past earnings moves averaged about -0.23%, and several strong reports previously saw downside follow‑through, so a larger decline could have reflected concern over oil‑price exposure and sustainability of cash flows.
Key Figures
Net income (9M):$615,702EPS (9M):$0.30 per diluted shareQ3 net income:$50,245+5 more
8 metrics
Net income (9M)$615,702Nine months ended Dec 31, 2025
EPS (9M)$0.30 per diluted shareNine months ended Dec 31, 2025
Q3 net income$50,245Q3 fiscal 2026; down 89% vs prior-year quarter
First six months of fiscal 2025 showed higher income and revenues versus 2024.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Pattern Detected
Earnings headlines often show strong fundamentals, yet price reactions have been mixed, with several positive reports followed by negative next-day moves.
Recent Company History
Over the past few earnings cycles, Mexco has reported generally solid profitability and revenue growth, highlighted by fiscal 2025 net income of $1.71 million and operating revenues of $7.36 million. Subsequent quarters, including the six months ended Sept 30, 2025, maintained profitability but faced pressure from weaker oil prices. Earlier third-quarter 2025 results showed higher Q3 net income of $469,133. The current nine‑month 2026 update, with lower net income and revenues, contrasts with that prior momentum and underscores increased commodity headwinds.
Key Terms
limited liability company, royalty and mineral interest, safe harbor, forward-looking statements
4 terms
limited liability companyfinancial
"income from the Company’s most recent limited liability company investment."
A limited liability company (LLC) is a business structure that separates the owners’ personal assets from the company’s debts and legal obligations, like a protective shield that keeps personal savings and property distinct from business risk. For investors, that protection reduces personal financial exposure and often brings flexible rules for profit sharing and taxes, but it can also affect how easily interests are bought or sold and how decisions are made.
royalty and mineral interestfinancial
"expended approximately $650,000 to date for royalty and mineral interest acquisitions"
A mineral interest is ownership of the underground resources (like oil, gas, or minerals) beneath a piece of land; it’s similar to owning the rights to what’s under a neighbor’s yard. A royalty interest is the right to receive a fixed share of revenue from whatever is produced from those resources without having to run the operation, like getting a slice of the harvest while someone else farms the field. Investors care because these rights can provide steady, commodity-price‑linked income, are affected by production and legal title, and can be bought, sold, or used as collateral.
safe harborregulatory
"In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act"
Safe harbor is a rule that protects companies or individuals from legal trouble if they follow certain guidelines or procedures. It’s like having a safety net that allows them to act without fear of punishment, as long as they stick to the rules. This helps encourage honest behavior and clear standards in financial and legal activities.
forward-looking statementsregulatory
"disclaims any intention or obligation to revise any forward-looking statements."
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
MIDLAND, TX, Feb. 10, 2026 (GLOBE NEWSWIRE) -- Mexco Energy Corporation (NYSE American: MXC) today reported net income of $615,702, or $0.30 per diluted share, for the nine months ending December 31, 2025.
For the third quarter of fiscal 2026, the Company reported net income of $50,245, or $0.02 per diluted share, a decrease of 89% when compared to $469,133, or $0.22 per diluted share, for the prior year quarter. This decrease is primarily due to the decline in oil prices. Operating revenues in the third quarter of fiscal 2026 were $1,383,887.
For the nine months ended December 31, 2025, operating revenues were $4,932,806, a decrease of 8% when compared to the first nine months of fiscal 2025. This decrease was primarily due to a decrease in average oil prices and production volumes partially offset by an increase in average natural gas prices and production volumes as well as an increase in income from the Company’s most recent limited liability company investment. Oil contributed to 77% of our operating revenues for the first nine months of fiscal 2026.
The Company currently expects to participate in the drilling and completion of fifty horizontal wells at an estimated aggregate cost of approximately $1.6 million for the fiscal year ending March 31, 2026, of which $.9 million has been expended to date.
The Company has also expended approximately $650,000 to date for royalty and mineral interest acquisitions in approximately 100 producing wells generally with additional potential development located in seven counties in four 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, 2025. 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 did Mexco Energy (MXC) report for third-quarter fiscal 2026 net income?
Mexco reported Q3 fiscal 2026 net income of $50,245 ($0.02 per diluted share). According to the company, this represented an 89% decline versus the prior-year quarter, primarily attributed to a decline in oil prices impacting revenue and margins.
How much revenue did MXC generate for the nine months ended December 31, 2025?
Mexco reported operating revenues of $4,932,806 for the nine months ended Dec 31, 2025. According to the company, revenues fell due to lower average oil prices and production volumes despite higher natural gas prices and volumes.
What is Mexco's 2026 drilling plan and estimated cost for MXC shareholders?
Mexco expects to participate in drilling and completion of 50 horizontal wells at an estimated aggregate cost of about $1.6 million for the fiscal year ending Mar 31, 2026. According to the company, ~$0.9 million has been expended to date.
How much has Mexco spent on royalty and mineral acquisitions for MXC?
The company has expended approximately $650,000 to acquire royalty and mineral interests across about 100 producing wells. According to the company, these acquisitions target additional development potential in seven counties across four states.
How exposed is MXC to oil price movements after the Q3 2026 results?
Oil contributed 77% of operating revenues for the first nine months of fiscal 2026, indicating significant exposure to oil price swings. According to the company, lower oil prices were the primary driver of the recent quarterly net income decline.
