Mexco Energy Corporation Reports Profitable First Quarter and Property Developments

Mexco Energy Corporation and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(Unaudited)

September 30,

March 31,

2014

2014

ASSETS

Current assets

Cash and cash equivalents

$        154,986

$      156,082

Accounts receivable:

Oil and gas sales

601,195

628,098

Trade

9,672

18,144

Prepaid costs and expenses

104,860

28,804

Derivatives – Short-term

3,010

-

Total current assets

873,723

831,128

Property and equipment, at cost

Oil and gas properties, using the full cost method

36,415,229

35,460,741

Other

98,401

94,356

Accumulated depreciation, depletion and amortization

(19,098,685)

(18,475,174)

Property and equipment, net

17,414,945

17,079,923

Other noncurrent assets

19,692

7,239

Total assets

$   18,308,360

$ 17,918,290

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable and accrued expenses

$        343,266

$      257,431

Income tax payable

-

6,500

Derivative instruments

-

44,981

Total current liabilities

343,266

308,912

Long-term debt

2,600,000

2,425,000

Asset retirement obligations

945,733

926,577

Deferred income tax liabilities

850,546

858,449

Total liabilities

4,739,545

4,518,938

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 2,038,266 shares outstanding 

as of September 30, 2014 and March 31, 2014, respectively 

1,052,133

1,052,133

Additional paid-in capital

6,985,798

6,921,645

Retained earnings

5,871,876

5,766,566

Treasury stock, at cost (66,000 shares) 

(340,992)

(340,992)

Total stockholders' equity

13,568,815

13,399,352

Total liabilities and stockholders' equity

$   18,308,360

$ 17,918,290

Mexco Energy Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three Months Ended

Six Months Ended

September 30

September 30

2014

2013

2014

2013

Operating revenue:

Oil and gas

$      987,942

$ 1,108,102

$1,994,597

$ 2,092,371

Other

18,157

13,344

29,335

25,600

Total operating revenues

1,006,099

1,121,446

2,023,932

2,117,971

Operating expenses:

Production

326,571

312,954

637,349

621,590

Accretion of asset retirement obligation

4,710

11,020

9,544

21,937

Depreciation, depletion, and amortization

322,696

298,489

623,511

593,522

General and administrative

291,994

286,615

642,330

598,085

Total operating expenses

945,971

909,078

1,912,734

1,835,134

Operating profit

60,128

212,368

111,198

282,837

Other income (expenses):

Interest income

2

105

4

107

Interest expense

(15,776)

(18,202)

(31,546)

(38,332)

Gain (loss) on derivative instruments

51,380

(59,295)

17,751

(86,687)

Net other income (expense)

35,606

(77,392)

(13,791)

(124,912)

Earnings before provision for income taxes

95,734

134,976

97,407

157,925

Income tax expense (benefit):

Current

-

-

-

-

Deferred

9,478

(59,075)

(7,903)

(52,257)

9,478

(59,075)

(7,903)

(52,257)

Net income

$      86,256

$  194,051

$   105,310

$  210,182

Earnings per common share:

Basic

$          0.04

$        0.10

$         0.05

$        0.10

Diluted

$          0.04

$        0.10

$         0.05

$        0.10

Weighted average common shares outstanding:

Basic

2,038,266

2,036,866

2,038,266

2,036,866

Diluted

2,053,158

2,039,108

2,054,003

2,038,800