Mexco Energy Corporation Reports Financial Results for First Quarter and Further Development of Properties
August 10 2018 - 1:29PM
Mexco Energy Corporation (NYSE American: MXC) today reported net
income of $14,420 for the quarter ending June 30, 2018, the
Company’s first quarter of fiscal 2019. This compares to a net loss
of $295,552 for the quarter ending June 30, 2017.
Operating revenues in the first quarter of
fiscal 2019 were $749,011, an increase of 12% from $667,684 for the
first quarter of fiscal 2018. This is the result of a 36% increase
in oil prices partially offset by an 11% decrease in gas prices, a
1% decrease in oil production and an 18% decrease in gas
production.
The average sales price of oil and natural gas
respectively for the quarter ending June 30, 2018 was $60.73 per
barrel and $2.25 per Mcf compared to $44.57 per barrel and $2.54
per Mcf for the quarter ending June 30, 2017.
Mexco’s bank indebtedness as of June 30, 2018 is
$500,000, 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. The operators of these wells include Concho
Resources, Inc., Marathon Oil Company, Mewbourne Oil Company, XTO
Energy, Inc. and others.
During the first quarter of fiscal 2019, Mexco
participated with various percentage interests in the drilling of
the first 8 of these horizontal wells in the Delaware Basin located
in the western portion of the Permian Basin in Eddy and Lea
Counties, New Mexico with aggregate costs of approximately
$142,000. Subsequently, in July 2018, Mexco expended an additional
$192,600 for the completion of five of these wells.
The president of the Company, Tammy McComic,
said, “We have excellent opportunities on our substantial inventory
of development acreage in the Delaware Basin.”
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 inherent 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.
For additional information, please contact: Nicholas C. Taylor,
Chairman and Chief Executive Officer or Tammy L. McComic, President
and Chief Financial Officer, both of Mexco Energy Corporation,
(432) 682-1119.
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