Mexco Energy (NYSE: MXC) Q3 net income falls 89% as oil prices drop

Rhea-AI Filing Summary

Mexco Energy Corporation reported net income of $615,702, or $0.30 per diluted share, for the nine months ended December 31, 2025, on operating revenues of $4,932,806, an 8% decrease from the prior year period. Third-quarter net income fell sharply to $50,245, or $0.02 per diluted share, down 89% from $469,133, or $0.22 per diluted share, mainly because of lower oil prices.

Oil provided 77% of operating revenues for the first nine months of fiscal 2026, underscoring the company’s exposure to oil price movements. Mexco expects to participate in drilling and completing fifty horizontal wells for the fiscal year ending March 31, 2026 at an estimated aggregate cost of about $1.6 million, of which $0.9 million has already been spent. The company has also invested roughly $650,000 in royalty and mineral interest acquisitions in about 100 producing wells across seven counties in four states to support future production.

Positive

• Ongoing development and acquisition activity: The company plans to participate in fifty horizontal wells at an estimated aggregate cost of about $1.6 million and has already invested approximately $650,000 in royalty and mineral interests in roughly 100 producing wells, supporting future production potential.

Negative

• Significant earnings deterioration: Third-quarter net income declined 89% year over year to $50,245, or $0.02 per diluted share, primarily driven by lower oil prices and reduced oil production volumes, indicating materially weaker profitability.
• Revenue decline with oil concentration: Operating revenues for the nine months ended December 31, 2025 fell 8%, while oil still represented 77% of operating revenues, maintaining high exposure to oil price volatility.

Insights

Energy sector equity analyst

Sharp quarterly profit decline, but ongoing drilling and mineral investments continue.

Mexco Energy posted nine-month net income of $615,702 on operating revenues of $4,932,806, with revenues down 8% year over year. Third-quarter net income dropped to $50,245, or $0.02 per diluted share, an 89% decrease versus the prior-year quarter, mainly tied to weaker oil prices.

The earnings contraction reflects both lower average oil prices and production volumes, partially offset by stronger natural gas prices and volumes and higher income from a recent limited liability company investment. With oil accounting for 77% of operating revenues in the first nine months of fiscal 2026, results remain sensitive to oil price volatility.

Despite softer profitability, the company plans participation in fifty horizontal wells with an estimated fiscal 2026 cost of about $1.6 million, having spent $0.9 million so far. It has also deployed roughly $650,000 into royalty and mineral interests in about 100 producing wells across seven counties in four states, which may influence future production levels and revenue mix as these properties develop.

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934.

Date of Report: February 10, 2026
(Date of earliest event reported)

Mexco Energy Corporation
(Exact name of registrant as specified in its charter)

CO		1-31785		84-0627918
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification Number)

415 W. Wall Street, Suite 475 Midland, TX		79701
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: 432-682-1119

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.13e-4(c))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.50 per share		MXC		NYSE American

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On February 10, 2026, Mexco Energy Corporation (the “Registrant”) issued a news release to announce its financial results for the nine months ended December 31, 2025.

Item 8.01 Other Events

On February 10, 2026, Mexco Energy Corporation issued a news release to announce further development of properties.

Copy of the news release is filed as Exhibit 99.1.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number		Document
99.1		News release dated February 10, 2026.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	MEXCO ENERGY CORPORATION
Dated: February 10, 2026	By:	/s/ Tammy McComic
		Tammy McComic
		President and Chief Financial Officer

Exhibit 99.1

February 10, 2026

FOR IMMEDIATE RELEASE

Mexco Energy Corporation Reports Financial Results for Third Quarter

MIDLAND, TX – 02/10/2026 – 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 net income did Mexco Energy (MXC) report for the nine months ended December 31, 2025?

Mexco Energy reported net income of $615,702, or $0.30 per diluted share, for the nine months ended December 31, 2025. This result came on operating revenues of $4,932,806 and reflects the impact of lower oil prices and production volumes during the period.

How did Mexco Energy’s third-quarter fiscal 2026 earnings compare to the prior year quarter?

For the third quarter of fiscal 2026, Mexco Energy reported net income of $50,245, or $0.02 per diluted share, an 89% decrease from $469,133, or $0.22 per diluted share, in the prior year quarter. The company attributes this sharp decline mainly to lower oil prices.

What were Mexco Energy’s operating revenues for the third quarter and nine months of fiscal 2026?

Operating revenues were $1,383,887 for the third quarter of fiscal 2026 and $4,932,806 for the nine months ended December 31, 2025. The nine-month figure represents an 8% decrease from the first nine months of fiscal 2025, largely due to weaker oil prices and production volumes.

How dependent is Mexco Energy on oil versus natural gas revenues?

Oil contributed 77% of Mexco Energy’s operating revenues for the first nine months of fiscal 2026, highlighting significant reliance on oil pricing. Natural gas revenues did improve, with higher average natural gas prices and production volumes partially offsetting declines in oil-related revenues during the period.

What drilling and development spending does Mexco Energy plan for fiscal 2026?

Mexco Energy expects to participate in drilling and completing fifty horizontal wells for the fiscal year ending March 31, 2026, at an estimated aggregate cost of about $1.6 million. Approximately $0.9 million of this total has already been expended, indicating active development efforts.

What recent royalty and mineral interest investments has Mexco Energy made?

The company has spent about $650,000 on royalty and mineral interest acquisitions in approximately 100 producing wells across seven counties in four states. These interests generally have additional potential development, which may influence future production and revenue as those opportunities are pursued.

What risks does Mexco Energy highlight in connection with its forward-looking statements?

Mexco Energy cites risks such as production variance from expectations, volatility of oil and gas prices, the need to develop and replace reserves, exploration risks, reserve estimate uncertainties, competition, government regulation, and operational risks. These factors are further discussed in its Form 10-K for the year ended March 31, 2025.

Filing Exhibits & Attachments

4 documents

Press Releases

• EX-99.1 EX-99.1 8.5 KB

Other Documents

• EX-101 XBRL SCHEMA FILE 2.9 KB
• EX-101 XBRL LABEL FILE 33.4 KB
• EX-101 XBRL PRESENTATION FILE 21.8 KB