MIDLAND, Texas, Aug. 13 /PRNewswire-FirstCall/ -- Mexco Energy Corporation today reported net income of $5,776 for the quarter ending June 30, 2010, the Company's first quarter of fiscal 2011, compared to a net loss of $68,003 for the same quarter of fiscal 2010.
Operating revenues in the first quarter of fiscal 2011 were $836,393, an increase of $178,216 or 27% from $658,177 for the first quarter of fiscal 2010.
The average sales price for the quarter ending June 30, 2010 was $5.65 per Mcfe compared to $3.98 per Mcfe for the quarter ending June 30, 2009, an increase of 42%. Oil production increased 4% and gas production decreased 13% during the first quarter of fiscal 2011 as compared to the first quarter of fiscal 2010.
Mexco Energy Corporation owns oil and gas properties in ten states, with the majority of its activity centered in West Texas. The Company plans to continue to focus its efforts to increase oil and natural gas reserves through exploration and development as well as acquisition of royalties with significant development potential.
Mexco Energy Corporation and Subsidiary CONSOLIDATED BALANCE SHEETS June 30, March 31, 2010 2010 ---- ---- (Unaudited) ASSETS Current assets Cash and cash equivalents $141,457 $160,439 Accounts receivable: Oil and gas sales 430,732 538,444 Trade 22,136 63,455 Related parties - 55 Prepaid costs and expenses 56,399 17,161 ------ ------ Total current assets 650,724 779,554 Property and equipment, at cost Oil and gas properties, using the full cost method 27,439,085 27,353,016 Other 78,520 76,161 ------ ------ 27,517,605 27,429,177 Less accumulated depreciation, depletion and amortization 14,430,651 14,179,156 ---------- ---------- Property and equipment, net 13,086,954 13,250,021 ---------- ---------- $13,737,678 $14,029,575 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued expenses $401,078 $301,160 Current portion of long-term debt 325,000 - ------- --- Total current liabilities 726,078 301,160 Long-term debt - 700,000 Asset retirement obligation 498,180 486,305 Deferred income tax liabilities 853,748 902,757 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; 2,006,366 and 2,003,866 shares issued; 1,922,366 and 1,919,866 shares outstanding as of June 30, 2010 and March 31, 2010, respectively 1,003,183 1,001,933 Additional paid-in capital 5,921,192 5,907,899 Retained earnings 5,161,914 5,156,138 Treasury stock, at cost (84,000 shares) (426,617) (426,617) -------- -------- Total stockholders' equity 11,659,672 11,639,353 ---------- ---------- $13,737,678 $14,029,575 =========== =========== Mexco Energy Corporation and Subsidiary CONSOLIDATED STATEMENTS OF OPERATIONS For the Three Months Ended June 30, (Unaudited) 2010 2009 ---- ---- Operating revenues: Oil and gas $832,010 $653,810 Other 4,383 4,367 Total operating revenues 836,393 658,177 Operating expenses: Production 368,227 240,973 Accretion of asset retirement obligation 8,430 7,728 Depreciation, depletion and amortization 251,495 263,462 General and administrative 248,139 232,185 ------- ------- Total operating expenses 876,291 744,348 ------- ------- Operating loss (39,898) (86,171) Other income (expense): Interest income 4 166 Interest expense (3,339) (9,624) ------ ------ Net other expense (3,335) (9,458) ------ ------ Loss before provision for income taxes (43,233) (95,629) Income tax benefit: Current - - Deferred (49,009) (27,626) ------- ------- (49,009) (27,626) ------- ------- Net income (loss) $5,776 $(68,003) ====== ======== Earnings (loss) per common share: Basic $0.00 $(0.04) Diluted $0.00 $(0.04) Weighted average common shares outstanding: Basic 1,922,152 1,878,616 Diluted 1,946,847 1,878,616
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, 2010. Mexco Energy Corporation disclaims any intention or obligation to revise any forward-looking statements.
For additional information, please 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, (432) 682-1119.
Mexco Energy Corporation
CONTACT: Tammy McComic of Mexco Energy Corporation, +1-432-682-1119,
mexco@sbcglobal.net
