MIDLAND, Texas, Aug. 14 /PRNewswire-FirstCall/ -- Mexco Energy Corporation
(Amex: MXC) today reported net income of $538,789, or .29 per diluted share,
for the quarter ending June 30, 2008, the Company's first quarter of fiscal
2009, compared to net income of $34,806, or .02 per diluted share, for the
same quarter of fiscal 2008, an increase of 1,448%.
Operating revenues in the first quarter of fiscal 2009 increased $829,003
or 97% to $1,679,320 from $850,317 for the first quarter of fiscal 2008. This
was another record high quarter of revenues for the Company, breaking the last
record set in the fourth quarter of fiscal 2008.
This is partially the result of revenues generated from oil and gas
royalty interests which include 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, as well as the additional Barnett Shale
royalties purchased on June 6, 2008 for $429,000. For the three month period
ending June 30, 2008, revenues from oil and gas royalty interests accounted
for approximately 37% of the Company's revenues, compared to approximately 24%
for the same period ending June 30, 2007. These first quarter results do not
reflect any income from Mexco's Steelhead #1 well in Loving County. The
Company is currently in the process of acquiring a right-of-way and preparing
to build a pipeline to enable production and sales of natural gas from this
well.
Nicholas C. Taylor, President and CEO of Mexco Energy Corporation, said,
'We are very pleased with the over fifteen times increase in net income due in
large part to the significant increase in revenues from natural gas
royalties.'
Thomas Graham, Jr., Chairman of the Board of Directors of the Company
added, 'A nearly fifteen fold increase in the Company's earnings is remarkable
but it is indicative of the Company's ongoing and expanding asset acquisition
program. We look for more of this in the future.'
The average sales price for the quarter ending June 30, 2008 was $11.38
per Mcfe compared to $7.46 per Mcfe for the quarter ending June 30, 2007, an
increase of 52%. Oil production decreased 6% and gas production increased 40%
during the first quarter of fiscal 2009 as compared to the first quarter of
fiscal 2008.
The Company 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 Subsidiaries
CONSOLIDATED BALANCE SHEETS
June 30, March 31,
2008 2008
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $220,713 $303,617
Accounts receivable:
Oil and gas sales 1,271,406 758,459
Trade 255,286 102,403
Related parties 1,834 12,659
Prepaid costs and expenses 48,846 22,062
Total current assets 1,798,085 1,199,200
Investment in GazTex, LLC - 20,509
Property and equipment, at cost
Oil and gas properties, using the full
cost method 24,578,655 23,941,483
Other 61,362 61,362
24,640,017 24,002,845
Less accumulated depreciation, depletion
and amortization 12,258,740 12,019,895
Property and equipment, net 12,381,277 11,982,950
$14,179,362 $13,202,659
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses $416,254 $571,526
Long-term debt 2,275,000 2,600,000
Asset retirement obligation 381,901 374,789
Deferred income tax liability 1,227,413 1,196,280
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; 1,948,866 and 1,841,366
shares issued; 1,864,866 and 1,757,366
shares outstanding as of June 30, 2008
and March 31, 2008, respectively 974,433 920,683
Additional paid-in capital 5,207,460 4,381,269
Retained earnings 4,123,518 3,584,729
Treasury stock, at cost (84,000 shares) (426,617) (426,617)
Total stockholders' equity 9,878,794 8,460,064
$14,179,362 $13,202,659
Mexco Energy Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended June 30,
(Unaudited)
2008 2007
Operating revenues:
Oil and gas $1,672,587 $850,144
Other 6,733 173
Total operating revenues 1,679,320 850,317
Operating expenses:
Production 334,988 333,050
Accretion of asset retirement obligation 6,938 6,611
Depreciation, depletion and amortization 238,844 172,884
General and administrative 281,661 269,624
Total operating expenses 862,431 782,169
Income from operations 816,889 68,148
Other income (expense):
Interest income 336 338
Interest expense (33,735) (15,348)
Net other expense (33,399) (15,010)
Income before income taxes 783,490 53,138
Income tax expense:
Current 213,568 -
Deferred 31,133 18,332
244,701 18,332
Net income $538,789 $34,806
Earnings per common share:
Basic $0.31 $0.02
Diluted $0.29 $0.02
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.
SOURCE Mexco Energy Corporation
