Mexco Energy Corporation Reports Third Quarter Financial Results

News provided by

Mexco Energy Corporation

Feb 26, 2013, 01:40 ET

MIDLAND, Texas, Feb. 26, 2013 /PRNewswire/ -- Mexco Energy Corporation (NYSE MKT: MXC) reported a net loss of $39,580 for the quarter ending December 31, 2012, the Company's third quarter of fiscal 2013, a decrease from a net income of $50,961 for the same quarter of fiscal 2012. 

Operating revenues in the third quarter of fiscal 2013 were $790,604, a 4% increase from $757,560 for the third quarter of fiscal 2012.      

The average sales price for the quarter ending December 31, 2012 was $5.59 per Mcfe compared to $6.10 per Mcfe for the quarter ending December 31, 2011, a decrease of 8%.  Oil production increased 23% and gas production increased 10% during the third quarter of fiscal 2013 as compared to the third quarter of fiscal 2012.     

For the nine months ended December 31, 2012, the Company reported a net loss of $102,034 compared to net income of $234,618 for the same period of fiscal 2012.  Operating revenues decreased 13% to $2,161,326 for the nine months ended December 31, 2012 from $2,482,415 for the same period of fiscal 2012. 

The average sales price of oil and natural gas for the nine months ended December 31, 2012 was $5.44 per Mcfe compared to $6.33 per Mcfe for the same period of fiscal 2012, a decrease of 14%.  Oil production increased 14% and gas production decreased 3% for the nine months ended December 31, 2012 as compared to the same period of fiscal 2012. 

On December 31, 2012, the Company purchased all of the outstanding ownership interests of TBO Oil & Gas, LLC, a Texas limited liability company which owns non-operated working interests producing primarily oil.  The cash purchase price of $1,150,000 was funded from our $4.9 million bank credit facility.  These interests cover approximately 280 wells located in 16 counties in Texas, New Mexico and North Dakota. 

The Company participated in drilling a horizontal well in Ellis County, Oklahoma which on February 22, 2013 produced per day 803 barrels of oil, 143 barrels of water and 4,531,000 cubic feet of natural gas on a 21/64" choke.  The Company owns approximately a 1.2% working interest (.9% net revenue interest) in this well.  Tammy L. McComic, President of the Company, stated, "Although the Company has previously participated in several horizontal wells, this well is one in a growing trend toward horizontal oil wells of the Company and the industry."  The Company has interests in horizontal oil wells in the Bakken of North Dakota and the Wolfcamp and Avalon-Bone Springs producing formations of Texas and New Mexico. 

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.  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, 2012.  Mexco Energy Corporation disclaims any intention or obligation to revise any forward-looking statements.

Mexco Energy Corporation and Subsidiaries

CONSOLIDATED BALANCE SHEETS













December 31,

March 31,





2012

2012





(Unaudited)

ASSETS





Current assets




Cash and cash equivalents

$      105,175

$      498,681


Accounts receivable:





Oil and gas sales

512,496

333,191



Trade

18,783

30,404


Prepaid costs and expenses

88,967

16,782




Total current assets

725,421

879,058









Property and equipment, at cost




Oil and gas properties, using the full cost method

33,838,836

31,840,059


Other

92,326

78,520





33,931,162

31,918,579










Less accumulated depreciation, depletion and amortization

16,998,081

16,223,267




Property and equipment, net

16,933,081

15,695,312





$ 17,658,502

$ 16,574,370








LIABILITIES AND STOCKHOLDERS' EQUITY



Current liabilities




Accounts payable and accrued expenses

$      274,267

$      402,098









Long-term debt

2,900,000

1,700,000

Asset retirement obligations

745,544

613,279

Deferred income tax liabilities

734,620

884,703









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;

2,102,866 and 2,099,116 shares issued; 2,039,699 and 2,035,949 shares outstanding as of December 31, 2012 and March 31, 2012, respectively









1,051,433

1,049,558


Additional paid-in capital

6,738,290

6,608,350


Retained earnings

5,539,793

5,641,827


Treasury stock, at cost - 63,167 shares as of





December 31, 2012 and March 31, 2012

(325,445)

(325,445)

Total stockholders' equity

13,004,071

12,974,290





$ 17,658,502

$ 16,574,370

         

Mexco Energy Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)






Three Months Ended

Nine Months Ended





December 31

December 31





2012

2011

2012

2011

Operating revenue:







Oil and gas

$    781,426

$   753,789

$ 2,139,609

$2,469,784

Other

9,178

3,771

21,717

12,631


Total operating revenues

790,604

757,560

2,161,326

2,482,415












Operating expenses:







Production

325,712

233,317

796,074

697,548

Accretion of asset retirement obligation

9,680

9,297

28,822

27,033

Depreciation, depletion, and amortization

283,498

223,181

774,814

702,362

General and administrative

250,183

227,928

779,161

723,489


Total operating expenses

869,073

693,723

2,378,871

2,150,432












Operating (loss) income

(78,469)

63,837

(217,545)

331,983












Other income (expenses):







Interest income                                   

2

47

132

141

Interest expense

(13,078)

(5,854)

(34,704)

(22,735)


Net other expense

(13,076)

(5,807)

(34,572)

(22,594)












(Loss) income before provision for income taxes

(91,545)

58,030

(252,117)

309,389












Income tax (benefit) expense:







Current

-

(4,858)

-

124,880

Deferred

(51,965)

11,927

(150,083)

(50,109)





(51,965)

7,069

(150,083)

74,771












Net (loss) income

$    (39,580)

$     50,961

$  (102,034)

$   234,618
























(Loss) earnings per common share:







Basic

$        (0.02)

$         0.03

$        (0.05)

$         0.12

Diluted

$        (0.02)

$         0.03

$        (0.05)

$         0.12












Weighted average common shares outstanding:







Basic

2,036,938

2,026,011

2,036,277

2,028,626

Diluted

2,036,938

2,031,453

2,036,277

2,037,994

SOURCE Mexco Energy Corporation

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