MEXCO ENERGY CORPORATION REPORTS FINANCIAL RESULTS FOR FISCAL 2018 AND ANNOUNCES FURTHER DEVELOPMENT OF PROPERTIES
July 02 2018 - 11:33AM
Mexco Energy Corporation (NYSE American: MXC) reported results on
its Annual Report on Form 10-K to the Securities and Exchange
Commission (“SEC”) for the fiscal year ended March 31, 2018.
The Company reported a net loss of $321,489 or
($0.16) per diluted share, for fiscal year 2018, a decrease from a
net loss of $694,553, or ($0.34) per diluted share, for fiscal
2017.
Operating revenues in fiscal 2018 were
$2,705,235, an increase of 7% when compared to fiscal 2017
operating revenues of $2,525,363. This is the result of a 18%
increase in oil prices and a 17% increase in gas prices partially
offset by an 11% decrease in gas production.
The Company reported a profit of $264,461 for
the quarter ending March 31, 2018, the Company’s fourth quarter of
fiscal 2018, compared to a loss of $3,454 from the comparable
quarter of fiscal 2017. Operating revenues in the fourth
quarter were $763,532 compared to $684,204 for the same quarter in
fiscal 2017, an increase of 12%. This is primarily the result
of increased oil and natural gas prices and a decrease in
depreciation, depletion and amortization.
The Company’s estimated present value of proved
reserves at March 31, 2018 was approximately $22 million based on
estimated future net revenues discounted at 10% per annum, pricing
and other assumptions set forth in “Item2 – Properties” of the
Company’s Form 10-K, a decrease of 13% as compared to the same at
March 31, 2017. The Company’s estimated proved oil reserves
at March 31, 2018 decreased 44% to 1.197 million barrels of oil and
natural gas liquids, and natural gas reserves decreased 18% to
5.487 billion cubic feet over the prior fiscal year. This
reduction in reserves was due to sales of non-core properties and
the restructuring of our plans for development of a non-producing
leasehold interest in Martin County, Texas. For fiscal 2018,
oil constituted approximately 57% of the Company’s total proved
reserves and approximately 67% of the Company’s revenues.
After fiscal 2018, Mexco reduced its bank
indebtedness to $500,000 as of June 30, 2018, resulting in a debt
to equity ratio of 6%.
In addition to an indeterminate number of wells
to be drilled by other operators on Mexco’s royalty interests, the
Company currently expects to participate in the drilling and
completion of approximately 50 horizontal wells, at an estimated
aggregate cost of approximately $1,300,000 for the fiscal year
ended March 31, 2019, of which approximately $141,000 has been
expended to date. The operators of these wells include Concho
Resources, Inc., Marathon Oil Company, Mewbourne Oil Company, XTO
Energy, Inc. and others.
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 primarily in the Permian
Basin. 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, 2018. Mexco Energy Corporation
disclaims any intention or obligation to revise any forward-looking
statements.
Mexco Energy Corporation and
Subsidiaries |
CONSOLIDATED BALANCE SHEETS |
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March 31, |
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March 31, |
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2018 |
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2017 |
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ASSETS |
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Current
assets |
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|
Cash and
cash equivalents |
$ |
492,610 |
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|
$ |
73,451 |
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Accounts
receivable: |
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|
|
|
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Oil and gas
sales |
|
395,991 |
|
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|
381,414 |
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Trade |
|
436,249 |
|
|
|
13,744 |
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|
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Prepaid
costs and expenses |
|
47,583 |
|
|
|
36,325 |
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Total current
assets |
|
1,372,433 |
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|
504,934 |
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Property
and equipment, at cost |
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Oil and gas
properties, using the full cost method |
|
35,224,784 |
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37,640,096 |
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Other |
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|
107,484 |
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|
|
107,484 |
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Accumulated
depreciation, depletion and amortization |
|
(26,453,025 |
) |
|
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(25,572,606 |
) |
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Property and equipment,
net |
|
8,879,243 |
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12,174,974 |
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Other
noncurrent assets |
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149,278 |
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|
28,157 |
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Total assets |
$ |
10,400,954 |
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|
$ |
12,708,065 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current
liabilities |
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Accounts
payable and accrued expenses |
$ |
446,815 |
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$ |
137,259 |
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Total current
liabilities |
|
446,815 |
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|
137,259 |
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Long-term
debt |
|
700,000 |
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|
2,900,000 |
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Asset
retirement obligations |
|
852,553 |
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|
|
968,484 |
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Total liabilities |
|
1,999,368 |
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|
|
4,005,743 |
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Commitments
and contingencies |
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Stockholders' equity |
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Preferred
stock - $1.00 par value; |
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10,000,000
shares authorized; none outstanding |
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- |
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- |
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Common
stock - $0.50 par value; 40,000,000 shares authorized; |
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2,104,266
shares issued and 2,037,266 shares outstanding |
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as of
March 31, 2018 and 2017, respectively |
|
1,052,133 |
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1,052,133 |
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Additional
paid-in capital |
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7,265,601 |
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|
7,244,848 |
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Retained
earnings |
|
429,853 |
|
|
|
751,342 |
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Treasury
stock, at cost (67,000 shares) |
|
(346,001 |
) |
|
|
(346,001 |
) |
|
Total
stockholders' equity |
|
8,401,586 |
|
|
|
8,702,322 |
|
|
|
|
|
Total liabilities and
stockholders’ equity |
$ |
10,400,954 |
|
|
$ |
12,708,065 |
|
Mexco Energy Corporation and
Subsidiaries |
CONSOLIDATED STATEMENTS OF OPERATIONS |
Years ended March 31, |
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2018 |
|
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2017 |
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Operating
revenues: |
|
|
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Oil and
gas |
$ |
2,650,232 |
|
|
$ |
2,337,222 |
|
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Other |
|
55,003 |
|
|
|
188,141 |
|
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Total operating
revenues |
|
2,705,235 |
|
|
|
2,525,363 |
|
|
|
|
|
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Operating
expenses: |
|
|
|
|
Production |
|
1,070,447 |
|
|
|
878,458 |
|
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Accretion
of asset retirement obligation |
|
31,460 |
|
|
|
35,743 |
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Depreciation, depletion and amortization |
|
880,419 |
|
|
|
1,177,422 |
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General and
administrative |
|
955,147 |
|
|
|
976,392 |
|
|
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Total operating
expenses |
|
2,937,473 |
|
|
|
3,068,015 |
|
|
|
|
|
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Operating
loss |
|
(232,238 |
) |
|
|
(542,652 |
) |
|
|
|
|
|
|
Other
income (expenses): |
|
|
|
|
Interest
income |
|
286 |
|
|
|
225 |
|
|
Interest
expense |
|
(89,537 |
) |
|
|
(152,126 |
) |
|
|
Net other (expense)
income |
|
(89,251 |
) |
|
|
(151,901 |
) |
|
|
|
|
|
|
Loss before
provision for income taxes |
|
(321,489 |
) |
|
|
(694,553 |
) |
|
|
|
|
|
|
Income
tax |
|
- |
|
|
|
- |
|
|
|
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|
Net
loss |
$ |
(321,489 |
) |
|
$ |
(694,553 |
) |
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Loss per
common share: |
|
|
|
|
Basic: |
$ |
(0.16 |
) |
|
$ |
(0.34 |
) |
|
Diluted: |
$ |
(0.16 |
) |
|
$ |
(0.34 |
) |
|
|
|
|
|
|
Weighted
average common shares outstanding: |
|
|
|
|
Basic: |
|
2,037,266 |
|
|
|
2,037,266 |
|
|
Diluted: |
|
2,037,266 |
|
|
|
2,037,266 |
|
For additional information, please contact:
Nicholas C. Taylor,
Chairman and Chief Executive Officer
Tammy L. McComic,
President and Chief Financial Officer
Mexco Energy Corporation, (432) 682-1119.
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