-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Jeirq17eTed/8CoIOkaV0X3X2cnLgj/vWCvNPIEG+vQZnqHDC5O/rdKGIcBRbGi1 HNZn04O0QCjtHAmTfmMpyA== 0000930661-97-000206.txt : 19970430 0000930661-97-000206.hdr.sgml : 19970430 ACCESSION NUMBER: 0000930661-97-000206 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970204 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MEXCO ENERGY CORP CENTRAL INDEX KEY: 0000066418 STANDARD INDUSTRIAL CLASSIFICATION: 1311 IRS NUMBER: 840627918 STATE OF INCORPORATION: CO FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-06694 FILM NUMBER: 97517859 BUSINESS ADDRESS: STREET 1: 214 W TEXAS STE 1101 CITY: MIDLAND STATE: TX ZIP: 79701 BUSINESS PHONE: 9156821119 MAIL ADDRESS: STREET 1: P O BOX 10502 CITY: MIDLAND STATE: TX ZIP: 79702 FORMER COMPANY: FORMER CONFORMED NAME: MILLER OIL CO DATE OF NAME CHANGE: 19800702 10-Q 1 FORM 10-Q FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20539 (Mark One) (X) QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For quarterly period ended December 31, 1996 ---------------------------------- OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from --------------- to ---------------- For Quarter Ended December 31, 1996 Commission File No. 0-6994 --------------------- MEXCO ENERGY CORPORATION ------------------------------------------------------ (Exact name of registrant as specified in its charter) Colorado 84-0627918 - - ------------------------------- --------------------------------- (State or other jurisdiction of (IRS Employer Identification No.) incorporation or organization) 214 W. Texas, Suite 1101, Midland, TX 79701 - - ---------------------------------------- ---------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (915) 682-1119 NONE - - ------------------------------------------------------------------ (Former Name, Former Address & Former Fiscal Year if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES X NO ------ ------ Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Class Outstanding at December 31, 1996 - - ---------------------------- -------------------------------- Common stock, $.50 par value 1,423,229 1 MEXCO ENERGY CORPORATION Index Page Part I. Financial information: Condensed Balance Sheets as of March 31, 1996 and December 31, 1996 3 Condensed Statements of Operations for the three months ended December 31, 1996 and 1995 4 Condensed Statements of Operations for the nine months ended December 31, 5 1996 and 1995 Condensed Statements of Cash Flows for the nine months ended December 31, 1996 and 1995 6 Notes to condensed Financial Statements 7 Management's Discussion and Analysis of Financial Condition and Results of Operations 8 Part II. Other information: Not Applicable 2 MEXCO ENERGY CORPORATION CONDENSED BALANCE SHEETS December 31, 1996 and March 31, 1996 ASSETS ------
December 31, March 31, 1996 1996 ----------- --------- (Unaudited) CURRENT ASSETS Cash $ 148,870 $ 172,112 Accounts Receivable 143,040 108,583 Prepaid Assets 450 0 ---------- ---------- Total current assets 292,360 280,695 PROPERTY AND EQUIPMENT Oil and gas properties-accounted for under the full cost method 5,802,657 4,900,230 Office furniture and fixtures 2,431 2,431 ---------- ----------- 5,805,088 4,902,661 Less accumulated depreciation, depletion and amortization (2,817,950) (2,571,317) ---------- ----------- Net property and equipment 2,987,138 2,331,344 ---------- ----------- TOTAL ASSETS $3,279,498 $ 2,612,039 ========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY ------------------------------------
CURRENT LIABILITIES Accounts payable-trade $ 372,977 $ 32,584 Income taxes payable 5,972 0 ---------- ---------- Total current liabilities 378,949 32,584 DEFERRED INCOME TAXES 94,851 34,310 ---------- ---------- Total liabilities 473,800 66,894 STOCKHOLDERS' EQUITY Common Stock-$.50 par value, authorized 5,000,000, issued and outstanding- 1,423,229 711,614 711,614 Paid in capital 1,975,429 1,975,429 Retained Earnings (Accumulated Deficit) 118,655 (141,898) ---------- ---------- Total stockholders' equity 2,805,698 2,545,145 ---------- ---------- TOTAL LIABILITIES & EQUITY $3,279,498 $2,612,039 ========== ==========
The accompanying notes are an integral part of these financial statements. 3 MEXCO ENERGY CORPORATION CONDENSED STATEMENTS OF OPERATIONS Three months ended December 31, (Unaudited)
1996 1995 ------------ ------------ Revenues: Gross revenues from oil and gas production $ 287,979 $ 176,343 Production costs 93,451 75,647 ---------- ---------- Net revenues from oil and gas production 194,528 100,696 Administrative service charges and reimbursements 1,252 1,203 ---------- ---------- 195,780 101,899 ---------- ---------- Costs and expenses: Depreciation, depletion and amortization 84,974 62,919 General and administrative 30,079 19,529 Other income - (7,039) Interest income (2,151) (6,510) ---------- ---------- 112,902 68,899 ---------- ---------- Income before income tax expense 82,878 33,000 Income tax expense 21,890 1,498 ---------- ---------- NET INCOME $ 60,988 $ 31,502 ========== ========== Net income per share $.04 $.02 ========== ========== Weighted average common shares outstanding 1,423,229 1,423,229 ========== ==========
The accompanying notes are an integral part of these financial statements. 4 MEXCO ENERGY CORPORATION CONDENSED STATEMENTS OF OPERATIONS Nine months ended December 31, (Unaudited)
1996 1995 ------------ ----------- Revenues: Gross revenues from oil and gas production $ 888,866 $ 524,133 Production costs 238,782 201,590 ---------- ----------- Net revenues from oil and gas production 650,084 322,543 Administrative service charges and reimbursements 3,757 6,176 ---------- ----------- 653,841 328,719 ---------- ----------- Costs and expenses: Depreciation, depletion and amortization 246,633 179,855 General and administrative 85,813 65,632 Other income (607) (7,990) Interest income (6,060) (13,461) ---------- ----------- 325,779 224,036 ---------- ----------- Income before income tax expense 328,062 104,683 Income tax expense 67,509 6,683 ---------- ----------- NET INCOME $ 260,553 $ 98,000 ========== =========== Net income per share $.18 $.07 ========== =========== Weighted average common shares outstanding 1,423,229 1,315,956 ========== ===========
The accompanying notes are an integral part of these financial statements. 5 MEXCO ENERGY CORPORATION CONDENSED STATEMENTS OF CASH FLOWS Nine Months ended December 31, (Unaudited)
1996 1995 ----------- ---------- Cash flows from operating activities: - - ------------------------------------- Cash received from oil & gas operations $ 845,697 $ 535,570 Cash paid for oil & gas operations 114,080 (238,856) General & administrative expenses (86,263) (64,282) Interest received 6,060 13,461 Other cash received 607 7,990 Income taxes paid (996) (38,523) --------- --------- Net cash provided by operations 879,185 215,360 Cash flows from investing activities: - - ------------------------------------- Capital expenditures (945,687) (479,800) Sales of assets 43,260 1,500 --------- --------- Net cash used in investing activities (902,427) (478,300) --------- --------- Cash flows from financing activities: - - ------------------------------------- Sale of common stock - 500,000 --------- --------- Net increase (decrease) in cash & cash equivalents (23,242) 237,060 Cash & cash equivalents at the beginning of the period 172,112 220,974 --------- --------- Cash & cash equivalents at the end of the period $ 148,870 $ 458,034 ========= ========= Reconciliation of net income to net cash - - ---------------------------------------- provided by operating activities: --------------------------------- Net income $ 260,553 $ 98,000 --------- --------- Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion and amortization 246,633 179,855 Increase in accounts receivable (34,457) (27,275) Increase (decrease) in accounts payable 340,393 (4,730) (Increase) decrease in prepaid expenses (450) 1,350 Increase (decrease) in income taxes payable 66,513 (31,840) --------- --------- Total adjustments 618,632 117,360 --------- --------- Net cash provided by operating activities $ 879,185 $ 215,360 ========= =========
The accompanying notes are an integral part of these financial statements. 6 MEXCO ENERGY CORPORATION NOTES TO CONDENSED FINANCIAL STATEMENTS December 31, 1996 and 1995 NOTE A - BASIS OF PRESENTATION In the opinion of the Company, the accompanying unaudited financial statements contain all adjustments necessary to present fairly the financial position of the Company as of March 31, 1996 and December 31, 1996, the results of its operations for the three-month and nine-month periods ended December 31, 1996 and 1995 and the cash flows for the nine- month periods ended December 31, 1996 and 1995. All adjustments are of a normal and recurring nature. The results of operations for the three-month and nine-month periods ended December 31, 1996 are not necessarily indicative of the results to be expected for the full year. The condensed balance sheets as of March 31, 1996 have been prepared based upon the Registrant's audited balance sheets as of that date. NOTE B - ACQUISITION OF OIL AND GAS PROPERTIES In June 1996, the Company purchased an additional 2.5% (net 1.875%) working interest comprising approximately 520 acres, including eleven (11) wells located on producing and non-producing oil and gas leases in the Lazy JL Field, Garza County, Texas. In July 1996, the Company purchased a 30% (net 22.5%) working interest in approximately 1,000 acres of non-producing oil and gas leases adjacent to the Lazy JL Field, Garza County, Texas. In September 1996, the Company purchased an additional .05% overriding royalty interest in producing oil and gas leases in the Viejos Field, Pecos County, Texas. In December, 1996 the Company purchased a 30% (22.5% net) working interest in approximately 1,119 acres of non-producing oil and gas leases adjacent to the Lazy JL Field, Garza County, Texas. Also in December 1996, the Company purchased an additional .5% (.375% net) working interest in producing and non-producing oil and gas leases in the Viejos Field, Pecos County, Texas. 7 MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE CONDENSED STATEMENTS OF OPERATIONS Results of Operations - 3 Months Ended December 31, 1996 -------------------------------------------------------- Operating revenues increased $ 111,636 (63%) from the third quarter of fiscal 1995 due to increased oil and gas prices and production. Oil and gas revenues increased $88,103 (88%) and $23,533 (30%) respectively due to increased numbers of wells, acquisitions of properties and higher oil and gas prices. The average oil price for the third quarter of 1996 was $24.88 per barrel compared to $17.44 per barrel in the third quarter of 1996. The average gas price for the third quarter of 1996 was $2.18 per MCF compared to $1.68 per MCF in the third quarter of 1995. Production costs increased $17,804 (24%) due to increased production taxes of $2,438 (22%) and lease operating expenses of $15,366 (27%). Depreciation, depletion and amortization increased $22,055 (35%) as compared to the same quarter during the prior year due to the addition of oil and gas properties. General and administrative costs increased $10,550 (54%) primarily due to increased accounting and engineering costs and increased salaries. Interest income decreased $4,539 (67%) due to decreased funds invested in money market accounts. Other income decreased $7,039 (100%) primarily due to the non-recurrence of gathering fees collected at the Viejos Field Gas Gathering Unit in Pecos County, Texas. During the quarter, the Company participated in the successful drilling and completion of three (3) wells (each with approximately an 8.2% working interest and a 6.2% net revenue interest) in the Viejos Field, Pecos County, Texas. The Company also participated in the successful completion of four (4) wells (each with a 30% working interest and a 22.5% net revenue interest) in the Lazy JL Field, Garza County, Texas. The Company participated in the unsuccessful drilling attempt of one well in Howard County, Texas resulting in dry hole costs of approximately $57,000. Results of Operations - 9 Months Ended December 31, 1996 -------------------------------------------------------- Operating revenues increased $364,733 (70%) from the first nine months of fiscal 1995 due to increased oil and gas prices and production. Oil and gas revenues increased $231,915 (69%) and $132,818 (69%) respectively due to increased numbers of wells, acquisitions of properties and higher oil and gas prices. The average oil price for the first nine months of 1996 was $22.21 per barrel compared to $17.14 per barrel in the first nine months of 8 1995. The average gas price for the first nine months of 1996 was $2.16 per MCF compared to $1.44 per MCF in the first nine months of 1995. Production costs increased $37,192 (18%) due to increased production taxes of $19,464 (63%) and lease operating expenses of $17,728 (10%). Revenue from administrative service charges and reimbursements decreased $2,419 (39%) due to non-recurrence of operating overhead charges in 1995 resulting from the plugging of nine wells operated by the Company. Depreciation, depletion and amortization increased $66,778 (37%) due to the addition of oil and gas properties. General and administrative costs increased $20,181 (31%) due primarily to increased accounting and engineering costs and increased salaries. Interest income decreased $7,401 (55%) due to decreased funds invested in money market accounts. During the nine months, the Company participated in the successful drilling and completion of four (4) wells (each approximately a 7.9% working interest and a 5.9% net revenue interest) in the Viejos Field, Pecos County, Texas. The Company also participated in the successful completion of five (5) wells (one with a 37.5% working interest and a 28.125% net revenue interest and the other four each with a 30% working interest and a 22.5% net revenue interest) in the Lazy JL Field, Garza County, Texas. The Company participated in the unsuccessful drilling attempt of one well in Howard County, Texas resulting in dry hole costs of approximately $57,000. Financial Condition ------------------- Working capital decreased by $362,331 (146%) as compared to March 31, 1996 due to property acquisitions and drilling costs. In August 1996, the Registrant entered into a loan agreement providing a revolving line of credit of $500,000 collateralized by a deed of trust, covering substantially all of the Registrant's properties. Such loan would be payable in installments of $15,000 per month plus interest, and in full on April 15, 1997. On January 7, 1997 the Registrant borrowed $100,000 against this line of credit to pay drilling costs as described in the Results of Operations - 3 Months Ended December 31, 1996. -------------------------------------------------------- The increase in accounts payable reflects drilling expenses incurred at the end of the current period. Management cannot specifically identify the effects of inflation and other price changes on operations. 9 Signatures ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. MEXCO ENERGY CORPORATION (A Colorado Corporation) ------------------------------ Nicholas C. Taylor, President and Treasurer Date: Februay 3, 1997 10 EX-27 2 FINANCIAL DATA SCHEDULE
5 9-MOS 12-MOS MAR-31-1997 MAR-31-1996 APR-01-1996 APR-01-1995 DEC-31-1996 MAR-31-1996 148,870 172,112 0 0 143,040 108,583 0 0 0 0 292,360 280,695 5,805,088 4,902,661 2,817,950 2,571,317 3,279,498 2,612,039 378,949 32,584 0 0 0 0 0 0 711,614 711,614 2,094,084 1,833,531 3,279,498 2,612,039 888,866 798,589 899,290 834,073 238,782 272,892 238,782 272,892 332,446 348,876 0 0 0 0 328,062 212,305 67,509 11,699 260,553 200,606 0 0 0 0 0 0 260,553 200,606 .183 .149 0 0
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