MIDLAND, Texas, Feb. 12 /PRNewswire-FirstCall/ -- Mexco Energy Corporation today reported net income of $167,145, or $0.09 per diluted share, for the quarter ending December 31, 2009, the Company's third quarter of fiscal 2010. This was a 27% increase from $131,501 for the same quarter of fiscal 2009. Operating revenues in the third quarter of fiscal 2010 were $865,169, a 7% decrease from $927,644 for the third quarter of fiscal 2009.
The average sales price for the third quarter of fiscal 2010 was $5.25 per Mcfe, an increase of 1% compared to $5.19 per Mcfe for the third quarter of fiscal 2009. Oil production increased 8% and gas production decreased 9% during the third quarter of fiscal 2010 as compared to the same period of fiscal 2009 due to a temporary shut-in of a gas property.
For the nine months ended December 31, 2009, the Company reported net income of $257,492, or $0.13 per diluted share, a 78% decrease from $1,181,405 for the same period of fiscal 2009. Operating revenues were $2,269,640 for the nine month period, a decrease of 46% from $4,208,771 for the same period of fiscal 2009. The average sales price for the nine months ended December 31, 2009 was $4.48 per Mcfe compared to $8.88 per Mcfe for the same period of fiscal 2009. Gas production increased 7% and oil production increased 3% during the nine months ended December 31, 2009 as compared to the same period of fiscal 2009.
Mexco Energy Corporation 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 on increasing oil and natural gas reserves, through exploration and development as well as acquisition of royalties with significant development potential.
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 Subsidiary CONSOLIDATED BALANCE SHEETS (Unaudited) December 31, March 31, 2009 2009 ---------- ---------- ASSETS Current assets Cash and cash equivalents $167,853 $223,583 Accounts receivable: Oil and gas sales 463,632 351,040 Trade 66,421 164,834 Related parties 4,383 1,687 Prepaid costs and expenses 32,414 36,610 ------ ------ Total current assets 734,703 777,754 Property and equipment, at cost Oil and gas properties, using the full cost method 27,122,035 26,735,778 Other 69,733 61,362 ------ ------ 27,191,768 26,797,140 Less accumulated depreciation, depletion and amortization 13,857,489 13,066,014 ---------- ---------- Property and equipment, net 13,334,279 13,731,126 ---------- ---------- $14,068,982 $14,508,880 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued expenses $357,355 $555,765 Long-term debt 990,000 1,400,000 Asset retirement obligations 474,359 440,011 Deferred income tax liabilities 925,741 1,185,494 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; 1,975,866 and 1,962,616 shares issued; 1,891,866 and 1,878,616 shares outstanding as of December 31, 2009 and March 31, 2009, respectively 987,933 981,308 Additional paid-in capital 5,747,420 5,617,620 Retained earnings 5,012,791 4,755,299 Treasury stock, at cost (84,000 shares) (426,617) (426,617) ---------- ---------- Total stockholders' equity 11,321,527 10,927,610 ---------- ---------- $14,068,982 $14,508,880 =========== =========== Mexco Energy Corporation and Subsidiary CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Nine Months Ended December 31 December 31 2009 2008 2009 2008 ---- ---- ---- ---- Operating revenue: Oil and gas $857,035 $908,253 $2,248,789 $4,176,050 Other 8,134 19,391 20,851 32,721 ----- ------ ------ ------ Total operating revenues 865,169 927,644 2,269,640 4,208,771 Operating expenses: Production 269,154 237,736 779,379 930,477 Accretion of asset retirement obligation 7,963 7,291 23,570 21,495 Depreciation, depletion, and amortization 252,940 271,530 791,474 751,337 General and administrative 198,527 193,102 628,941 674,002 ------- ------- ------- ------- Total operating expenses 728,584 709,659 2,223,364 2,377,311 ------- ------- --------- --------- Operating profit 136,585 217,985 46,276 1,831,460 Other income (expenses): Interest income 100 110 328 1,117 Interest expense (8,516) (17,226) (26,877) (70,815) ------ ------- ------- ------- Net other expense (8,416) (17,116) (26,549) (69,698) ------ ------- ------- ------- Earnings before provision for income taxes 128,169 200,869 19,727 1,761,762 Income tax expense (benefit): Current 21,988 67,057 21,988 538,187 Deferred (60,964) 2,311 (259,753) 42,170 ------- ----- -------- ------ (38,976) 69,368 (237,765) 580,357 ------- ------ -------- ------- Net income $167,145 $131,501 $257,492 $1,181,405 ======== ======== ======== ========== Earnings per common share: Basic $0.09 $0.07 $0.14 $0.64 Diluted $0.09 $0.07 $0.13 $0.61 Weighted average common shares outstanding: Basic 1,891,866 1,874,866 1,884,598 1,836,999 Diluted 1,946,076 1,938,746 1,946,362 1,928,029
Mexco Energy Corporation
CONTACT: Nicholas C. Taylor, President and Chief Executive Officer or
Tammy L. McComic, Executive Vice-President and Chief Financial Officer, both
of Mexco Energy Corporation, +1-432-682-1119
