Mexco Energy Cor Stock Price, News & Analysis

Mexco Energy Corporation (NYSE American: MXC) is an independent oil and gas company engaged in the acquisition, exploration and development of oil and gas properties. According to the company’s public disclosures, Mexco Energy Corporation is a Colorado corporation with its operations based in Midland, Texas, and its activities are focused primarily in the Permian Basin, a major oil and gas producing region in the United States.

The company is classified in the crude petroleum and natural gas extraction industry within the broader mining, quarrying, and oil and gas extraction sector. Public filings and press releases describe Mexco’s business as centered on oil and natural gas interests, including both working interests and royalty and mineral interests. The company reports that a portion of its operating revenues is generated from oil and gas royalty interests that are free of operational costs to Mexco, alongside revenues from oil and natural gas sales and from an investment in a limited liability company.

Operational focus and geographic footprint

Mexco Energy Corporation states that it is engaged in the acquisition, exploration and development of oil and gas properties primarily in the Permian Basin. The Permian Basin includes areas such as the Delaware Basin in the western portion of the Permian Basin and the Midland Basin in the eastern portion. The company’s disclosures indicate participation in drilling and completion of horizontal and vertical wells, as well as acquisitions of royalty and mineral interests in producing wells with additional potential development.

Press releases describe activity in multiple U.S. states and counties through royalty and mineral interest acquisitions and participation in wells. These include locations such as Lea and Eddy Counties in New Mexico and various counties in Texas and other states, reflecting a portfolio of interests associated with producing wells and further development potential. The company’s operating revenues are influenced by oil and natural gas production volumes and by the average realized prices of oil and natural gas.

Revenue characteristics and commodity mix

Mexco Energy Corporation reports that its operating revenues are derived from oil and natural gas sales, royalty interests, and income associated with a limited liability company investment. Company news releases indicate that oil has contributed a substantial portion of operating revenues in recent reporting periods, with oil accounting for a majority of oil and gas sales. The company also notes that natural gas prices can be affected by factors such as pipeline capacity in regions where it has interests, which in turn can influence overall operating revenues.

In some fiscal periods described in the company’s releases, a significant percentage of revenues has come from royalties that do not bear operational costs to Mexco. The company also highlights that changes in commodity prices and production volumes, as well as the performance of its limited liability company investment, can increase or decrease operating revenues from one period to another.

Drilling participation and royalty and mineral interests

Mexco’s public communications emphasize participation in the drilling and completion of horizontal and vertical wells. The company discloses expected numbers of wells in which it plans to participate during specific fiscal years, along with estimated aggregate costs for drilling and completion. These wells are primarily horizontal wells in the Delaware Basin and other formations where the company holds interests. In addition to working interests in wells, Mexco reports expenditures for acquiring royalty and mineral interests in numerous producing wells across multiple counties and states.

Through these activities, Mexco Energy Corporation indicates that it seeks to develop and expand its oil and gas reserve base and production volumes. The company’s reports also reference estimated present value of proved reserves and the composition of those reserves between oil and natural gas, as well as the share of oil in total proved reserves and in oil and gas sales for certain fiscal years.

Corporate governance and stock information

Mexco Energy Corporation’s common stock, with a par value of $0.50 per share, trades on the NYSE American under the symbol MXC, as reflected in its SEC filings. The company holds an annual meeting of stockholders where shareholders vote on the election of directors, ratification of the independent registered public accounting firm, and a non-binding advisory resolution regarding executive compensation, as described in its definitive proxy statement. The proxy materials outline the company’s board structure, committees, executive compensation framework, and other governance practices.

SEC filings also show that Mexco Energy Corporation files periodic reports, including annual reports on Form 10-K, and current reports on Form 8-K that announce financial results and other events such as further development of properties. The company’s proxy statement explains that its common stock is the sole class of voting securities and that stockholders are entitled to one vote per share on matters presented at the annual meeting.

Capital allocation and shareholder returns

In its public announcements, Mexco Energy Corporation has reported actions related to capital allocation, including the declaration of regular annual cash dividends on common shares. The company’s board of directors determines whether to authorize dividends based on factors such as liquidity, capital resources, results of operations, anticipated future results, and the level of cash reserves for capital expenditures or other needs. The company notes that there can be no assurance that dividends will be authorized or declared in the future or what the amount of any future dividends might be.

Mexco has also disclosed authorization of a common stock repurchase program, with a specified dollar amount allocated for repurchases of common stock for the company’s treasury account. The company states that repurchases may be made in accordance with applicable securities laws and that the repurchase program does not have an expiration date and may be modified, suspended or terminated at any time by the board of directors.

Risk factors and industry context

Mexco Energy Corporation’s press releases reference the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 and caution that forward-looking statements involve risks and uncertainties that may impact actual results. The company identifies risks such as 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. These risk factors are discussed in more detail in the company’s annual reports on Form 10-K for the relevant fiscal years.

Through its focus on oil and natural gas properties primarily in the Permian Basin and its combination of working interests and royalty and mineral interests, Mexco Energy Corporation provides investors with exposure to crude petroleum and natural gas extraction activities as disclosed in its public filings and news releases.