MIDLAND, Texas, June 30 /PRNewswire-FirstCall/ -- Mexco Energy Corporation reported results on its Annual Report on Form 10-K to the Securities and Exchange Commission for the fiscal year ended March 31, 2009.
The Company reported net income of $1,170,570, or $.61 per diluted share, for fiscal year 2009 as compared to $713,644, or $.40 per diluted share, for fiscal 2008, a 64% increase.
Operating revenues in fiscal 2009 were $4,925,993, an increase of 26% over 2008 operating revenues of $3,899,408. This is partially the result of several royalty acquisitions in the Barnett Shale gas field. Revenues from oil and gas royalty interests, including these acquisitions, accounted for approximately 42% of the Company's revenues for fiscal 2009.
Gas production volumes increased 43% during fiscal 2009 with an average sales price received of $7.57 per Mcfe, a decrease of 6% from the $8.03 per Mcfe received in fiscal 2008. Oil production volumes decreased 3%.
The Company's total estimated proved reserves at March 31, 2009 were 9.477 Bcf of natural gas and 207,000 barrels of oil and natural gas liquids, and its estimated present value of proved reserves was approximately $14.3 million based on estimated future net revenues discounted at 10% per annum, pricing and other assumptions set forth in "Item 2 - Properties" of the Company's Form 10-K. During fiscal 2009, the Company added total proved reserves of 2.2 Bcfe of which 60% was through extensions and discoveries and 40% through acquisitions. This represents an approximate 21% increase in gas reserves and 5% decrease in oil reserves as compared to fiscal 2008. For fiscal 2009, gas reserves constituted approximately 88% of the Company's total proved reserves and approximately 71% of the Company's revenues.
"The Company continued to move ahead in fiscal year 2009 under its capable management, as evidenced by its significant recorded increases in both gas production as well gas reserves in the past year," said Thomas Graham, Jr., Chairman of the Board of Mexco Energy Corporation.
Nicholas C. Taylor, President and Chief Executive Officer, added, "We achieved record gross revenues with after tax profit of 24% of gross income despite low prices for oil and gas in the second half of our fiscal year. Also, we promoted Tammy McComic to Executive Vice President and Chief Financial Officer and Stacy Hardin to Assistant Treasurer in recognition of their outstanding performances."
During the year ended March 31, 2009, the Company participated with working interests in 14 gross wells (.83 net wells) compared to 33 gross wells (1.13 net wells) for the previous year. All of such wells were commercially productive.
The Company owns oil and gas properties in ten states, with the majority of its activity centered in West Texas. The Company continues to focus its efforts to increase oil and natural gas reserves, through acquisitions, exploration and development.
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, 2009. Mexco Energy Corporation disclaims any intention or obligation to revise any forward-looking statements
Mexco Energy Corporation and Subsidiaries CONSOLIDATED STATEMENTS OF OPERATIONS Year ended March 31, 2009 2008 2007 Operating revenues: Oil and gas $4,876,627 $3,887,955 $2,969,325 Other 49,366 11,453 2,392 Total operating revenues 4,925,993 3,899,408 2,971,717 Operating expenses: Production 1,195,584 1,240,305 870,778 Accretion of asset retirement obligation 28,578 26,262 24,057 Depreciation, depletion, and amortization 1,046,120 779,618 652,826 General and administrative 876,756 821,786 829,180 Total operating expenses 3,147,038 2,867,971 2,376,841 Operating profit 1,778,955 1,031,437 594,876 Other income (expense): Interest income 1,838 5,113 4,670 Interest expense (81,961) (105,312) (24,046) Net other expense (80,123) (100,199) (19,376) Earnings before income taxes and minority interest 1,698,832 931,238 575,500 Income tax expense (benefit): Current 539,048 - - Deferred (10,786) 217,594 (28,050) 528,262 217,594 (28,050) Earnings before minority interest 1,170,570 713,644 603,550 Minority interest in loss of subsidiary - - 4,835 Net income $1,170,570 $713,644 $608,385 Earnings per common share: Basic: $0.63 $0.40 $0.35 Diluted: $0.61 $0.40 $0.33 Weighted average common shares outstanding: Basic: 1,846,394 1,767,777 1,761,344 Diluted: 1,934,235 1,773,049 1,819,969 Mexco Energy Corporation and Subsidiaries CONSOLIDATED BALANCE SHEETS As of March 31, 2009 2008 ASSETS Current assets Cash and cash equivalents $223,583 $303,617 Accounts receivable: Oil and gas sales 351,040 758,459 Trade 164,834 102,403 Related parties 1,687 12,659 Prepaid costs and expenses 36,610 22,062 Total current assets 777,754 1,199,200 Investment in GazTex, LLC - 20,509 Property and equipment, at cost Oil and gas properties, using the full cost method 26,735,778 23,941,483 Other 61,362 61,362 26,797,140 24,002,845 Less accumulated depreciation, depletion, and amortization 13,066,014 12,019,895 Property and equipment, net 13,731,126 11,982,950 $14,508,880 $13,202,659 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued expenses $555,765 $571,526 Long-term debt 1,400,000 2,600,000 Asset retirement obligation 440,011 374,789 Deferred income tax liabilities 1,185,494 1,196,280 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; 1,962,616 and 1,841,366 shares issued; 1,878,616 and 1,757,366 shares outstanding as of March 31, 2009 and 2008, respectively 981,308 920,683 Additional paid-in capital 5,617,620 4,381,269 Retained earnings 4,755,299 3,584,729 Treasury stock, at cost (84,000 shares) (426,617) (426,617) Total stockholders' equity 10,927,610 8,460,064 $14,508,880 $13,202,659
Mexco Energy Corporation
CONTACT: Tammy L. McComic, Executive Vice President and Chief Financial
Officer of Mexco Energy Corporation, +1-432-682-1119, mexco@sbcglobal.net
