MIDLAND, Texas, June 24 /PRNewswire-FirstCall/ -- Mexco Energy Corporation
(Amex: MXC) reported results on its Annual Report on Form 10-K to the
Securities and Exchange Commission for the fiscal year ended March 31, 2008.
The Company reported net income of $466,480, or $.27 per diluted share,
for the quarter ending March 31, 2008, the Company's fourth quarter of fiscal
2008. This resulted in net income of $713,644, or $.40 per diluted share, for
fiscal year 2008, a 17% increase over fiscal 2007.
Operating revenues in the fourth quarter were a record high of $1,245,653,
resulting in the Company ending fiscal 2008 with operating revenues of
$3,899,408, compared to $2,971,717 in fiscal 2007, an increase of 31%. This
is partially the result of revenue generated from the $1,850,000 royalty
interest acquisition in the Barnett Shale gas field on December 31, 2007, the
largest acquisition of a property in the Company's history. Revenues from oil
and gas royalty interests, including this acquisition, accounted for
approximately 29% of the Company's revenues for fiscal 2008. On June 6, 2008,
Mexco purchased additional Barnett Shale royalties for $429,000.
The Company's total estimated proved reserves at March 31, 2008 were
7.857 Bcf of natural gas and 217,000 barrels of oil and natural gas liquids,
and its estimated present value of proved reserves was approximately
$41 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 2008, the Company added proved reserves of
794,000 Mcfe through extensions and discoveries, added 584,000 Mcfe through
acquisitions and had upward revisions of previous estimates of 43,000 Mcfe.
For fiscal 2008, gas reserves constituted approximately 86% of the
Company's total proved reserves and approximately 65% of the Company's
revenues.
Nicholas C. Taylor, President and Chief Executive Officer of Mexco Energy
Corporation, said, 'These fiscal year end results do not reflect any income
from Mexco's Steelhead #1 well in Loving County which is expected to be
connected to a gas pipeline and commence regular sales in the second quarter
of Mexco's fiscal 2009.'
During the year ended March 31, 2008, the Company participated with
working interests in 28 gross (.48 net) development wells and 5 gross
(.65 net) exploratory wells.
The average sales price received of $8.03 per Mcfe increased 19% from the
$6.75 per Mcfe received in fiscal 2007. Oil and gas production volumes
increased 5% and 12%, respectively, during fiscal 2008.
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 exploration and
development as well as acquisitions.
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, 2008.
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,
2008 2007 2006
Operating revenues:
Oil and gas $3,887,955 $2,969,325 $3,716,564
Other 11,453 2,392 3,079
Total operating revenues 3,899,408 2,971,717 3,719,643
Operating expenses:
Production 1,240,305 870,778 843,927
Accretion of asset retirement
obligation 26,262 24,057 23,436
Depreciation, depletion, and
amortization 779,618 652,826 658,365
General and administrative 821,786 829,180 817,332
Impairment of long-term asset - - 261,617
Total operating expenses 2,867,971 2,376,841 2,604,677
Operating profit 1,031,437 594,876 1,114,966
Other income (expense):
Interest income 5,113 4,670 2,837
Interest expense (105,312) (24,046) (98,657)
Net other expense (100,199) (19,376) (95,820)
Earnings before income taxes and
minority interest 931,238 575,500 1,019,146
Income tax expense (benefit):
Current - - (19,312)
Deferred 217,594 (28,050) 291,452
217,594 (28,050) 272,140
Earnings before minority interest 713,644 603,550 747,006
Minority interest in loss of
subsidiary - 4,835 41,799
Net income $713,644 $608,385 $788,805
Net income per common share:
Basic: $0.40 $0.35 $0.45
Diluted: $0.40 $0.33 $0.43
Mexco Energy Corporation and Subsidiaries
CONSOLIDATED BALANCE SHEETS
As of March 31,
2008 2007
ASSETS
Current assets
Cash and cash equivalents $303,617 $72,537
Accounts receivable:
Oil and gas sales 758,459 399,659
Trade 102,403 2,987
Related parties 12,659 -
Income tax receivable - 59,736
Prepaid costs and expenses 22,062 65,986
Total current assets 1,199,200 600,905
Investment in GazTex, LLC 20,509 20,509
Property and equipment, at cost
Oil and gas properties, using the full cost
method 23,941,483 20,526,431
Other 61,362 51,412
24,002,845 20,577,843
Less accumulated depreciation, depletion,
and amortization 12,019,895 11,240,277
Property and equipment, net 11,982,950 9,337,566
$13,202,659 $9,958,980
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses $571,526 $154,074
Long-term debt 2,600,000 700,000
Asset retirement obligation 374,789 350,584
Deferred income tax liabilities 1,196,280 978,686
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;
1,841,366 and 1,840,366 shares issued;
1,757,366 and 1,780,841 shares outstanding
as of March 31, 2008 and 2007, respectively 920,683 920,183
Additional paid-in capital 4,381,269 4,291,892
Retained earnings 3,584,729 2,871,085
Treasury stock, at cost (84,000 and
59,525 shares, respectively) (426,617) (307,524)
Total stockholders' equity 8,460,064 7,775,636
$13,202,659 $9,958,980
SOURCE Mexco Energy Corporation
