MEXCO ENERGY CORPORATION REPORTS FINANCIAL RESULTS FOR FISCAL 2024
Mexco Energy (NYSE American: MXC) released its fiscal 2024 financial results on June 27, 2024. The company reported a net income of $1,344,952, or $0.64 per diluted share, and operating revenues of $6,604,884. The average realized prices for oil and natural gas were $76.40 per barrel and $2.22 per thousand cubic feet, respectively.
Mexco participated in drilling 52 wells, with 51 horizontal and 1 vertical well, at a cost of approximately $2.3 million. An additional $450,000 was spent to complete 21 wells from fiscal 2023. The company expects to drill 30 and complete 19 horizontal wells in fiscal 2025, with an estimated cost of $2.2 million.
The present value of proved reserves is approximately $29 million, with oil reserves increasing by 9% and natural gas reserves decreasing by 8%. Approximately 28% of revenues were produced from royalties. Mexco holds $2.4 million in cash, with no outstanding debt on its bank line of credit.
Throughout the year, Mexco acquired royalty and mineral interests in 348 gross wells for around $1.8 million, funded from cash on hand.
- Net income of $1,344,952, or $0.64 per diluted share.
- Operating revenues of $6,604,884.
- Oil reserves increased by 9% to 791 thousand barrels.
- No outstanding indebtedness on bank line of credit.
- Estimated present value of proved reserves at $29 million.
- Natural gas reserves decreased by 8% to 4.537 billion cubic feet.
- Average realized price for natural gas was relatively low at $2.22 per thousand cubic feet.
Insights
Mexco Energy Corporation's financial results for fiscal 2024 reveal certain key points that are important for investors. The company reported a net income of
Additionally, the average realized price for oil was
It's also worth noting the company's proactive approach in drilling activities. Participating in the drilling of 52 wells, predominantly horizontal wells, indicates strategic expansion and investment in growth. The
Another noteworthy detail is the company's investment in royalty and mineral interests, which amounted to approximately
In conclusion, the financial results indicate a stable performance with strategic investments aimed at future growth. However, the decrease in natural gas reserves by
Mexco Energy Corporation's fiscal 2024 results offer intriguing insights into its market positioning and strategy. The focus on horizontal drilling, especially in the Delaware Basin, is a strategic move, considering the Basin's reputation for high yield and substantial reserves. The company's drilling activities, with a major share in the Delaware Basin, highlight its efforts to tap into one of the most prolific oil and gas regions in the U.S.
The
The company's proactive stance with an anticipated participation in drilling 30 new wells in fiscal 2025, along with the completion of 19 wells, suggests a forward-thinking approach. This is indicative of its commitment to sustaining and potentially increasing its production capabilities.
Finally, Mexco's cash position of
MIDLAND, TX, June 27, 2024 (GLOBE NEWSWIRE) -- Mexco Energy Corporation (NYSE American: MXC) reported results on its Annual Report, Form 10-K to the Securities and Exchange Commission for the fiscal year ended March 31, 2024. The Company reported net income of
For the year ended March 31, 2024, the average realized price for oil was
The Company participated in the drilling of 52 wells consisting of 51 horizontal wells and 1 vertical well at a cost of approximately
In addition to the above working interests, there were 101 gross wells (.02 net wells) drilled by other operators on the Company’s royalty interests. Approximately
The Company currently expects to participate in the drilling of 30 and completion of 19 horizontal wells at an estimated aggregate cost of approximately
The Company’s estimated present value of proved reserves at March 31, 2024 was approximately
The President and Chief Financial Officer of the Company said, “We have approximately
Throughout the year, the Company acquired various royalty and mineral interests in 348 gross wells (7.65 net wells) primarily in Weld County, Colorado; Crane, Ector, Howard, Lee, Midland, Reeves and Upton Counties, Texas; and, Caddo Parish, Louisiana, for an aggregate purchase price of approximately
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, 2024. Mexco Energy Corporation disclaims any intention or obligation to revise any forward-looking statements.
For additional information, please contact: Tammy L. McComic, President and Chief Financial Officer of Mexco Energy Corporation, (432) 682-1119.
FAQ
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