MIDLAND, Texas, Nov. 17 /PRNewswire-FirstCall/ -- Mexco Energy Corporation
(Amex: MXC) today reported net income of $511,115, or .26 per diluted share,
for the quarter ending September 30, 2008, the Company's second quarter of
fiscal 2009, compared to a net loss of $8,756 for the same quarter of fiscal
2008. Operating revenues in the second quarter of fiscal 2009 increased
$760,698 or 90% to $1,601,806 from $841,108 for the second quarter of fiscal
2008.
The average sales price for the second quarter of fiscal 2009 was $10.74
per Mcfe compared to $7.31 per Mcfe for the second quarter of fiscal 2008, an
increase of 47%. Oil production increased 4% and gas production increased 37%
during the second quarter of fiscal 2009 as compared to the same period of
fiscal 2008.
For the six months ended September 30, 2008, the Company reported net
income of $1,049,904, or $0.55 per diluted share, as compared to $26,049, or
$0.01 per diluted share, for the same period of fiscal 2008, a 3930% increase.
Operating revenues increased $1,589,701, or 94%, to $3,281,127 for the six
month period from $1,691,426 for the same period of fiscal 2008.
This is partially the result of revenues generated from the recent
purchases of Barnett Shale oil and gas royalty interests. For the three month
period ending September 30, 2008, revenues from oil and gas royalty interests
accounted for approximately 36% of the Company's revenues, compared to
approximately 23% for the same period ending September 30, 2007.
These six-month period results do not reflect any income from Mexco's
Steelhead #1 well in Loving County. The Company has acquired rights-of-way
and is 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,
'In addition to the projected contribution to earnings from the Steelhead
discovery, we expect recently acquired royalty interests in Johnson County,
Texas to add significantly to the Company's earnings.'
Thomas Graham, Jr., Chairman of the Board of Directors of the Company
added, 'This latest report showing a significant earnings advance is more
evidence of progress and the bright future ahead for the Company.'
Mexco Energy Corporation 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 on increasing 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
September 30, March 31,
2008 2008
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $220,239 $303,617
Accounts receivable:
Oil and gas sales 867,441 758,459
Trade 474,449 102,403
Related parties 42,446 12,659
Prepaid costs and expenses 51,304 22,062
Total current assets 1,655,879 1,199,200
Investment in GazTex, LLC - 20,509
Property and equipment, at cost
Oil and gas properties, using the full
cost method 24,805,130 23,941,483
Other 61,362 61,362
24,866,492 24,002,845
Less accumulated depreciation, depletion
and amortization 12,499,702 12,019,895
Property and equipment, net 12,366,790 11,982,950
$14,022,669 $13,202,659
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued expenses $726,505 $571,526
Long-term debt 950,000 2,600,000
Asset retirement obligation 409,552 374,789
Deferred income tax liability 1,236,139 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; 1,958,866 and
1,841,366 shares issued; 1,874,866 and
1,757,366 shares outstanding as of
September 30 and March 31, 2008,
respectively 979,433 920,683
Additional paid-in capital 5,513,024 4,381,269
Retained earnings 4,634,633 3,584,729
Treasury stock, at cost (84,000 shares) (426,617) (426,617)
Total stockholders' equity 10,700,473 8,460,064
$14,022,669 $13,202,659
Mexco Energy Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
September 30 September 30
2008 2007 2008 2007
Operating revenue:
Oil and gas sales $1,595,209 $839,947 $3,267,797 $1,690,092
Other 6,597 1,161 13,330 1,334
Total operating revenues 1,601,806 841,108 3,281,127 1,691,426
Operating expenses:
Production 357,753 467,336 692,741 800,386
Accretion of asset
retirement obligation 7,266 6,713 14,204 13,324
Depreciation, depletion,
and amortization 240,962 183,797 479,807 356,681
General and administrative 199,239 178,918 480,900 448,543
Total operating expenses 805,220 836,764 1,667,652 1,618,934
Income from operations 796,586 4,344 1,613,475 72,492
Other income (expense):
Interest income 671 1,747 1,007 2,085
Interest expense (19,854) (20,345) (53,589) (35,694)
Net other expense (19,183) (18,598) (52,582) (33,609)
Income (loss) before income
taxes 777,403 (14,254) 1,560,893 38,883
Income tax expense (benefit):
Current 257,562 - 471,130 -
Deferred 8,726 (5,498) 39,859 12,834
266,288 (5,498) 510,989 12,834
Net income (loss) $511,115 $(8,756) $1,049,904 $26,049
Earnings per common share:
Basic: $.27 $ - $0.58 $0.01
Diluted: $.26 $ - $0.55 $0.01
Weighted average common
shares outstanding:
Basic: 1,873,127 1,772,268 1,817,962 1,774,526
Diluted: 1,975,453 1,772,268 1,922,568 1,786,397
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
