Mexco Energy Corporation - Company Summary

Business Overview

• Type: Independent oil and gas exploration, development, and production company.
• Founded: Incorporated in April 1972 under the name Miller Oil Company; changed to Mexco Energy Corporation on April 30, 1980.
• Headquarters: Midland, Texas (No. 415 W. Wall, Suite 475, Zip Code: 79701).
• Operations: Engaged in acquiring, exploring, developing, and producing crude oil, natural gas, condensate, and natural gas liquids (NGLs) within the United States.
• Geographic Focus: Primarily in West Texas and Southeastern New Mexico; also owns properties and undeveloped acreage in 14 states across the U.S.

Reserves & Production

• Proved Reserves (as of March 31, 2025): Approximately 1.401 million barrels of oil equivalent (MMBOE).
  • Reserves Composition: 48% oil and 52% natural gas.
  • Present Value of Reserves (PV-10): About $23 million based on discounted future revenues.
• Production (Fiscal Year 2025):
  • Oil: 83,564 barrels
  • Natural Gas: 570,012 Mcf
• Historical Production (last five years):
  • 2021: 50,327 barrels oil; 324,205 Mcf gas
  • 2022: 61,689 barrels oil; 393,841 Mcf gas
  • 2023: 73,968 barrels oil; 534,363 Mcf gas
  • 2024: 69,999 barrels oil; 502,879 Mcf gas
  • 2025: 83,564 barrels oil; 570,012 Mcf gas

Revenue & Income

• Total Revenue (Fiscal Year 2025): Approximately $7.12 million (up 10% from $6.46 million in FY 2024).
  • Sources:
    • Oil and gas sales
    • Royalties (about 31% of total operating revenues)
• Net Income (Fiscal Year 2025): $1,712,368 (increased 27% from $1,344,952 in FY 2024).
• Earnings per Share:
  • Basic: $0.83
  • Diluted: $0.81
• Number of Shares Outstanding: 2,046,000 as of June 27, 2025.
• Stockholders: 2,239,283 shares issued; 809 shareholders of record.

Business Strategy & Market Environment

• Focuses on acquiring proved reserves fitting with existing operations or in well-established regions.
• Primary operations include vertical and horizontal well drilling, especially in the Permian Basin (Delaware and Midland areas).
• Active in the acquisition of royalties, non-operated working interests, and undeveloped acreage.
• Faces challenges from volatile commodity prices, geopolitical risks, environmental regulations, and industry competition.
• Major focus areas include high-impact drilling in the Delaware and Midland Basins, targeting zones like Wolfcamp, Bone Spring, Penn Shale, and others.

Employees & Operations

• Employees: 2 full-time employees and 3 part-time employees (as of March 31, 2025).
• Operations: All properties are operated by third-party operators; the company owns interests in approximately 7,500 gross wells (26.4 net wells).

Financial Details

• Total Assets (as of March 31, 2025): About $20.34 million.
• Liabilities: Total liabilities approximately $1.64 million.
• Equity: Total stockholders’ equity around $18.71 million.
• Revenue from royalties (FY 2025): About 31% of total revenues.
• Main Customers: Only mention of significant customer concentration relates to oil and gas sales, with one purchaser accounting for 58% of revenues in FY 2025.

Key Initiatives & Activities

• Participated in drilling 35 horizontal wells in fiscal 2025, primarily in the Delaware Basin.
• Acquired royalties and interests in numerous wells and properties across states such as Texas, New Mexico, Colorado, Louisiana, Wyoming, Nebraska, North Dakota, South Dakota, Montana.
• Divested non-core assets including interests in acreage in Texas.
• Engaged in share repurchase programs, with 57,766 shares bought back in FY 2025 at an average price of $12.17 per share.

Market & Financial Risks

• Highly dependent on commodity prices, which are volatile.
• Significant concentration with one major purchaser.
• Environmental regulations, geopolitical risks, and operational hazards pose ongoing risks to business.

Summary:
Mexco Energy Corporation is a U.S.-based independent oil and gas producer primarily active in the Permian Basin, with diversified interests including royalties and non-operated working interests. It maintains a moderate asset base with proven reserves valued at about $23 million, and reported $7.12 million in revenue with a net income of approximately $1.7 million in fiscal 2025. The company employs a small team but actively participates in the exploration and development of high-potential horizontal drilling projects. It also repurchases shares and manages a portfolio of interests across multiple U.S. states.