MEXCO ENERGY CORPORATION REPORTS FINANCIAL RESULTS FOR FISCAL 2021
25 Juin 2021 - 10:04PM
Mexco Energy Corporation (NYSE American: MXC) reported results on
its Annual Report, Form 10-K to the Securities and Exchange
Commission (“SEC”) for the fiscal year ended March 31, 2021.
Operating revenues in fiscal 2021 were
$2,799,004, an increase of 2% when compared to fiscal 2020
operating revenues of $2,738,540. This is the result of a 14%
increase in oil production, a 10% increase in natural gas
production and a 64% increase in natural gas prices partially
offset by a 23% decrease in oil prices.
Mexco reported net income of $417,075 for the
quarter ending March 31, 2021, approximately five times the prior
quarter ending December 31, 2020 primarily due to increases in oil
and natural gas prices.
The Company reported net income of $155,932 or
$0.08 per diluted share, for fiscal year 2021, compared to a net
loss of $99,478, or ($0.05) per diluted share, for fiscal 2020.
The Company participated in the drilling of 25
wells consisting of 22 horizontal wells and 3 vertical wells at a
cost of approximately $1,042,000 for the fiscal year ending March
31, 2021, of which twelve are in preparation to complete. All of
the horizontal wells are in the Delaware Basin located in the
western portion of the Permian Basin in Lea and Eddy Counties, New
Mexico. In addition, the Company expended approximately $270,000,
the balance required to complete 22 horizontal wells located in Lea
and Eddy Counties, New Mexico, which were drilled during fiscal
2020.
In addition to the above working interests,
there were 57 gross wells (.13 net wells) drilled by other
operators on the Company’s royalty interests. Approximately 22% of
the fiscal 2021 revenues were produced from royalties free of
expense to Mexco.
The Company’s estimated present value of proved
reserves at March 31, 2020 was approximately $14 million based on
estimated future net revenues discounted at 10% per annum, pricing
and other assumptions set forth in “Item2 – Properties” of Form
10-K. The Company’s estimated proved oil reserves at March 31, 2021
decreased 27% to 738 thousand barrels of oil and natural gas
liquids, and natural gas reserves decreased 5% to 4.595 billion
cubic feet over the prior fiscal year. This reduction in reserves
was primarily the result of the lower oil prices during fiscal 2021
and reserves written off due to the five-year limitation. They are
primarily working interests in a unit in the Wolfcamp B Zone in
Upton and Reagan Counties, Texas which are on a lease held by
production and still in place to be developed in the future. For
fiscal 2021, oil constituted approximately 49% of the Company’s
total proved reserves and approximately 73% of the Company’s
revenues.
The President and Chief Financial Officer of the
Company stated, “We are pleased to report increased volumes of oil
and gas production. Our Annual Report indicates the value of prices
to Mexco: If the average oil price had increased or decreased by
ten dollars per barrel for fiscal 2021, our oil revenue would have
changed by $503,270. If the average gas price had increased or
decreased by one dollar per mcf for fiscal 2021, natural gas
revenue would have changed by $324,205. Our outstanding debt as of
June 25, 2021 is $800,000 or approximately 9% of equity.”
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, 2021. 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.
Mexco Energy (AMEX:MXC)
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