SOURCE: Mexco Energy Corporation

Mexco Energy Corporation

June 28, 2017 13:01 ET

Mexco Energy Corporation Reports Financial Results for Fiscal 2017 and Announces Further Development of Properties

MIDLAND, TX--(Marketwired - Jun 28, 2017) - Mexco Energy Corporation (NYSE MKT: MXC) reported results on its Annual Report on Form 10-K to the Securities and Exchange Commission ("SEC") for the fiscal year ended March 31, 2017.

The Company reported a net loss of $694,553 or ($.34) per diluted share, for fiscal year 2017, a decrease from a net loss of $3,979,685, or ($1.95) per diluted share, for fiscal 2016.

Operating revenues in fiscal 2017 were $2,525,363, an increase of 4% when compared to fiscal 2016 operating revenues of $2,421,792. This is the result of a 6.5% increase in oil prices and a 20% increase in gas prices offset by an 11% decrease in oil production and a 13% decrease in natural gas production.

The Company reported an operating loss of $3,454 for the quarter ending March 31, 2017, the Company's fourth quarter of fiscal 2017, a decrease in loss from the comparable quarter of fiscal 2016. Operating revenues in the fourth quarter were $684,204 compared to $445,484 for the same quarter in fiscal 2016, an increase of 54%. This is primarily the result of increased oil and natural gas prices.

The Company's estimated present value of proved reserves at March 31, 2017 was approximately $25 million based on estimated future net revenues discounted at 10% per annum, pricing and other assumptions set forth in "Item2 - Properties" of the Company's Form 10-K, an increase of 57% as compared to the same at March 31, 2016. The Company's estimated proved oil reserves at March 31, 2017 increased 96% to 2.124 million barrels of oil and natural gas liquids, and natural gas reserves increased 15% to 6.681 billion cubic feet over the prior fiscal year. For fiscal 2017, oil constituted approximately 66% of the Company's total proved reserves and approximately 65% of the Company's revenues.

After fiscal 2017, Mexco sold certain non-core properties resulting in a reduction in bank indebtedness to $2,475,500 as of June 27, 2017.

In addition to an indeterminate number of wells to be drilled by other operators on Mexco's royalty interests, the Company currently expects to participate in the drilling and completion of approximately 27 horizontal wells, at an estimated aggregate cost of approximately $1,100,000 for the fiscal year ended March 31, 2018, of which approximately $200,000 has been expended to date. The operators of these wells include Apache Corporation, Bold Energy III, LLC, Concho Resources, Inc., Mewbourne Oil Company, XTO Energy, Inc. and others.

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 inherit 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, 2017. Mexco Energy Corporation disclaims any intention or obligation to revise any forward-looking statements.

   
Mexco Energy Corporation and Subsidiaries  
CONSOLIDATED BALANCE SHEETS  
             
    March 31,     March 31,  
    2017     2016  
ASSETS                
  Current assets                
    Cash and cash equivalents   $ 73,451     $ 34,013  
    Accounts receivable:                
      Oil and gas sales     381,414       248,145  
      Trade     13,744       29,880  
    Prepaid costs and expenses     36,325       43,284  
        Total current assets     504,934       355,322  
                 
  Property and equipment, at cost                
    Oil and gas properties, using the full cost method     37,640,096       40,365,197  
    Other     107,484       107,484  
    Accumulated depreciation, depletion and amortization     (25,572,606 )     (24,395,184 )
        Property and equipment, net     12,174,974       16,077,497  
                 
    Other noncurrent assets     28,157       34,441  
        Total assets   $ 12,708,065     $ 16,467,260  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
  Current liabilities                
    Accounts payable and accrued expenses   $ 137,259     $ 332,172  
                 
  Long-term debt     2,900,000       5,580,000  
  Asset retirement obligations     968,484       1,211,077  
        Total liabilities     4,005,743       7,123,249  
                 
  Commitments and contingencies                
                 
  Stockholders' equity                
    Preferred stock - $1.00 par value; 10,000,000 shares authorized; none outstanding     -       -  
    Common stock - $0.50 par value; 40,000,000 shares authorized; 2,104,266 shares issued and 2,037,266 shares outstanding as of March 31, 2017 and 2016, respectively     1,052,133       1,052,133  
    Additional paid-in capital     7,244,848       7,191,984  
    Retained earnings     751,342       1,445,895  
    Treasury stock, at cost (67,000 shares)     (346,001 )     (346,001 )
  Total stockholders' equity     8,702,322       9,344,011  
    $ 12,708,065     $ 16,467,260  
                 
   
Mexco Energy Corporation and Subsidiaries  
CONSOLIDATED STATEMENTS OF OPERATIONS  
Year ended March 31,  
                   
    2017     2016     2015  
  Operating revenues:                        
    Oil and gas   $ 2,337,222     $ 2,383,950     $ 3,336,826  
    Other     188,141       37,842       53,179  
      Total operating revenues     2,525,363       2,421,792       3,390,005  
                         
  Operating expenses:                        
    Production     878,458       1,144,061       1,300,820  
    Accretion of asset retirement obligation     35,743       35,155       27,932  
    Impairment of long-lived assets     -       2,984,410       -  
    Depreciation, depletion and amortization     1,177,422       1,572,738       1,362,862  
    General and administrative     976,392       1,155,183       1,239,750  
      Total operating expenses     3,068,015       6,891,547       3,931,364  
                         
  Operating loss     (542,652 )     (4,469,755 )     (541,359 )
                         
  Other income (expenses):                        
    Interest income     225       575       45  
    Interest expense     (152,126 )     (171,375 )     (99,240 )
    Gain on derivative instruments     -       -       102,069  
      Net other (expense) income     (151,901 )     (170,800 )     2,874  
                         
  Loss before provision for income taxes     (694,553 )     (4,640,555 )     (538,485 )
                         
  Income tax benefit:                        
    Deferred     -       (660,870 )     (197,499 )
                         
  Net loss   $ (694,553 )   $ (3,979,685 )   $ (340,986 )
                         
                         
  Loss per common share:                        
    Basic:   $ (0.34 )   $ (1.95 )   $ (0.17 )
    Diluted:   $ (0.34 )   $ (1.95 )   $ (0.17 )
                         
  Weighted average common shares outstanding:                        
    Basic:     2,037,266       2,037,266       2,038,250  
    Diluted:     2,037,266       2,037,266       2,038,250  
                             

Contact Information

  • For additional information, please contact:
    Nicholas C. Taylor
    Chairman and Chief Executive Officer
    Tammy L. McComic
    President and Chief Financial Officer
    Mexco Energy Corporation
    (432) 682-1119