UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934.
Date
of Report:
(Date of earliest event reported)
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) |
(IRS Employer Identification Number) |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code:
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.13e-4(c)) | |
| Pre-commencement communications pursuant to Rule 3e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Item 2.02 Results of Operations and Financial Condition.
On November 5, 2021, Mexco Energy Corporation (the “Registrant”) issued a news release to announce its financial results for the three and six months ended September 30, 2021.
Item 8.01 Other Events
On November 5, 2021, Mexco Energy Corporation issued a news release to announce further development of properties.
Copy of the news release is filed as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits.
| (d) | Exhibits |
| Exhibit | |||
| Number | Document | ||
| 99.1 | News release dated November 5, 2021. | ||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| MEXCO ENERGY CORPORATION | ||
| Dated: November 5, 2021 | By: | /s/ Tammy McComic |
| Tammy McComic | ||
| President and Chief Financial Officer | ||
Exhibit 99.1
November 5, 2021
FOR IMMEDIATE RELEASE
Mexco Energy Corporation Reports Financial Results for Profitable Second Quarter
MIDLAND, TX – 11/05/2021 – Mexco Energy Corporation (NYSE American: MXC) today reported net income of $1,103,834, or $0.52 per diluted share, for the six months ended September 30, 2021, compared to a net loss of $341,640, or $0.17 per diluted share, for the six months ended September 30, 2020.
Operating revenues were $2,817,679 for the six months ended September 30, 2021, a 180% increase from $1,006,498 for the September 30, 2020 six month period resulting from a 29% increase in oil production and a 9% increase in natural gas production as well as increases in the average sales price of oil and natural gas to $66.85 per barrel (a 110% increase) and $3.70 per Mcf (a 201% increase), respectively, for the six months ended September 30, 2021.
Net income was $708,828, or $0.33 per diluted share, for the quarter ending September 30, 2021, the Company’s second quarter of fiscal 2022, versus a net loss of $41,970, or $0.02 per diluted share, for the quarter ending September 30, 2020 and versus $395,006 net income for the preceding quarter ending June 30, 2021, a 79% increase.
Operating revenues in the second quarter of fiscal 2022 increased 144% to $1,553,481 from $636,042 for the second quarter of fiscal 2021. This increase resulted from a 24% increase in oil production and a 4% increase in natural gas production as well as the average sales price of oil and natural gas for the quarter ending September 30, 2021 to $69.62 per barrel (an 81% increase) and $4.41 per Mcf (a 213% increase), respectively.
The Company currently plans to participate in the drilling and completion of approximately 39 horizontal wells at an estimated aggregate cost of approximately $1,000,000 for the fiscal year ending March 31, 2022. During the first six months of fiscal 2022, the Company participated with various percentage interests in the drilling of nineteen of these wells in the Delaware Basin located in the Permian Basin in Lea and Eddy Counties, New Mexico and Reeves County, Texas with aggregate costs of approximately $450,000.
The Company also expended approximately $165,000 during the first quarter of fiscal 2022 for the additional completion costs of 12 drilled but uncompleted horizontal wells located in Lea and Eddy Counties, New Mexico that the Company participated in drilling during fiscal 2021. Two of these wells were completed at the end of June 2021 and beginning of July with initial average production rates of 1,406 barrels of oil, 3,214 barrels of water; and 2,146,000 cubic feet of gas per day, or 1,403 barrels of oil equivalent per day. Mexco’s working interest in these wells is 1.2%.
During the six months ended September 30, 2021, the Company paid in full the $1,180,000 balance on its bank line of credit.
The President and Chief Financial Officer of the Company stated, “We are pleased with record profits of approximately $1.1 million, $335,000 cash on hand and no bank debt as of November 1, 2021. The Oil & Gas Journal ranked Mexco as the 74th largest U.S. based publicly owned oil and gas company in its September 6, 2021 issue, up from 96th.”
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 at Mexco Energy Corporation, (432) 682-1119.
Cover |
Nov. 05, 2021 |
|---|---|
| Cover [Abstract] | |
| Document Type | 8-K |
| Amendment Flag | false |
| Document Period End Date | Nov. 05, 2021 |
| Entity File Number | 1-31785 |
| Entity Registrant Name | Mexco Energy Corporation |
| Entity Central Index Key | 0000066418 |
| Entity Tax Identification Number | 84-0627918 |
| Entity Incorporation, State or Country Code | CO |
| Entity Address, Address Line One | 415 W. Wall Street |
| Entity Address, Address Line Two | Suite 475 |
| Entity Address, City or Town | Midland |
| Entity Address, State or Province | TX |
| Entity Address, Postal Zip Code | 79701 |
| City Area Code | 432 |
| Local Phone Number | 682-1119 |
| Written Communications | false |
| Soliciting Material | false |
| Pre-commencement Tender Offer | false |
| Pre-commencement Issuer Tender Offer | false |
| Title of 12(b) Security | Common Stock, par value $0.50 per share |
| Trading Symbol | MXC |
| Security Exchange Name | NYSEAMER |
| Entity Emerging Growth Company | false |