Mexco Energy (NYSE: MXC) net income jumps 107% on higher oil prices
Rhea-AI Filing Summary
Mexco Energy Corporation reported stronger results for the quarter ended June 30, 2026, its first quarter of fiscal 2027. Net income was $501,065, or $0.24 per diluted share, compared with $241,951, or $0.12 per diluted share, for the same quarter in 2025, a 107% increase. Operating revenues were $1,983,169, up 13% from $1,756,940 in the first quarter of fiscal 2026.
The company stated that higher results were driven mainly by a 52% increase in average oil price, partly offset by a 15% decrease in oil production, a 9% decrease in natural gas production, and a 49% decrease in average natural gas price. Mexco expects to participate in drilling 53 horizontal wells and completing 20 horizontal wells in fiscal 2027 at an estimated cost of about $1.8 million, of which $620,000 has been spent.
Management reported investing approximately $2.1 million during the quarter in oil and gas royalty property acquisitions funded from existing cash resources, consistent with its strategy of acquiring royalty interests with development potential, primarily in the Permian Basin.
Positive
- Net income more than doubled to $501,065 (up 107%), with diluted EPS rising to $0.24 from $0.12 year over year.
- Operating revenue grew 13% to $1,983,169 for the quarter, reflecting stronger pricing despite volume and gas-price headwinds.
- The company plans to invest about $1.8 million in 53 drilling and 20 completion projects, and has already invested $2.1 million in royalty acquisitions funded from existing cash.
Negative
- Results relied on a 52% increase in average oil price while oil production fell 15% and natural gas production fell 9%, alongside a 49% drop in average natural gas price.
Insights
Analyzing...
8-K Event Classification
3 items: 2.02, 8.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net income: $501,065
Net income prior-year quarter: $241,951
Diluted EPS: $0.24 per share
+5 more
8 metrics
Net income
$501,065
Quarter ended June 30, 2026; first quarter of fiscal 2027
Net income prior-year quarter
$241,951
Quarter ended June 30, 2025; comparison period
Diluted EPS
$0.24 per share
Quarter ended June 30, 2026
Operating revenues
$1,983,169
First quarter of fiscal 2027; 13% increase from prior year
Operating revenues prior-year
$1,756,940
First quarter of fiscal 2026; comparison baseline
Planned drilling and completions
53 horizontal wells drilled; 20 completed
Expected activity during fiscal year ending March 31, 2027
Estimated drilling and completion cost
$1.8 million
Aggregate expected cost for fiscal year ending March 31, 2027
Royalty acquisitions investment
$2.1 million
Oil and gas royalty property acquisitions during the quarter
Key Terms
horizontal wells, royalty interests, Permian Basin, Safe Harbor provisions, +1 more
5 terms
horizontal wells technical
"expects to participate in the drilling of 53 horizontal wells and the completion of 20"
Horizontal wells are oil or gas boreholes drilled down and then steered to run sideways through a reservoir, exposing a long stretch of rock to the well instead of a single vertical point. For investors they matter because the wider contact with the resource usually increases production and lowers the cost per unit produced, much like slicing through a loaf covers more area than tiny pokes, so companies can generate more revenue with fewer surface locations.
royalty interests financial
"strategy of acquiring oil and gas royalty interests with development potential"
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.
Permian Basin technical
"engaged in the acquisition, exploration and development of oil and gas properties primarily in the Permian Basin"
A large geologic region spanning parts of West Texas and southeastern New Mexico that contains abundant deposits of oil and natural gas; think of it as a vast underground warehouse where energy is stored. It matters to investors because production levels, drilling costs and pipeline access in the Permian Basin strongly influence energy company profits, regional job activity and overall oil and gas supply, which in turn affect commodity prices and related stocks.
Safe Harbor provisions regulatory
"In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995"
Safe harbor provisions are rules or legal protections that shield companies or individuals from certain penalties or liabilities when they follow specific guidelines or procedures. They provide a sense of security, encouraging compliance and innovation by reducing the fear of legal repercussions if they act in good faith. For investors, these provisions help ensure that companies are transparent and accountable without the risk of unfair punishment for honest mistakes.
forward-looking statements regulatory
"cautions that statements in this press release which are forward-looking and which provide other than historical information"
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.
Earnings Snapshot
Net income: $501,065
Quarter ended June 30, 2026 (first quarter of fiscal 2027)
Net income
$501,065
107% increase from $241,951 in prior-year quarter
Diluted EPS
$0.24
Up from $0.12 in prior-year quarter
Operating revenues
$1,983,169
13% increase from $1,756,940 in first quarter of fiscal 2026
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How much net income did Mexco Energy (MXC) report for the quarter ended June 30, 2026?
Mexco Energy reported net income of $501,065, or $0.24 per diluted share, for the quarter ended June 30, 2026, compared with $241,951, or $0.12 per diluted share, for the same quarter in 2025.
How did Mexco Energy’s (MXC) latest quarterly results compare to the prior year?
Net income increased by 107% to $501,065 and diluted EPS doubled to $0.24. Operating revenues rose 13% to $1,983,169 from $1,756,940 in the comparable 2025 quarter.
What were Mexco Energy’s (MXC) operating revenues for the first quarter of fiscal 2027?
Operating revenues were $1,983,169 for the first quarter of fiscal 2027, a 13% increase from $1,756,940 in the first quarter of fiscal 2026, driven mainly by higher average oil prices.
What drilling and completion activity does Mexco Energy (MXC) expect in fiscal 2027?
Mexco expects to participate in drilling 53 horizontal wells and completing 20 horizontal wells during fiscal 2027 at an estimated aggregate cost of about $1.8 million, of which $620,000 has been spent.
How much did Mexco Energy (MXC) invest in oil and gas royalty properties this quarter?
Mexco invested approximately $2.1 million in oil and gas royalty property acquisitions during the quarter, funded from existing cash resources, consistent with its strategy of acquiring royalty interests with development potential.
What key factors affected Mexco Energy’s (MXC) revenue mix this quarter?
Revenue was helped by a 52% increase in average oil price, but was offset by a 15% decline in oil production, a 9% decline in natural gas production, and a 49% drop in average natural gas price.