Mexco Energy Corp. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Mexco Energy Corp. filed its quarterly report (10-Q) for the period ending December 31, 2023, detailing its financial performance and operational status.</b>

AI Summary

MEXCO ENERGY CORP (MXC) filed a Quarterly Report (10-Q) with the SEC on February 9, 2024. Mexco Energy Corp. filed a 10-Q report for the period ending December 31, 2023. The filing covers the third quarter of the fiscal year ending March 31, 2024. The company's fiscal year end is March 31. Mexco Energy Corp. is classified under SIC code 1311 for Crude Petroleum & Natural Gas. The company's principal executive offices are located in Midland, Texas.

Why It Matters

For investors and stakeholders tracking MEXCO ENERGY CORP, this filing contains several important signals. This filing provides investors with an update on Mexco Energy Corp.'s financial health and operational activities during the third quarter of its fiscal year. Understanding the details within this 10-Q is crucial for assessing the company's performance in the oil and gas sector and its future prospects.

Risk Assessment

Risk Level: low — MEXCO ENERGY CORP shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain any immediately apparent significant negative or positive financial events or disclosures that would elevate the risk level.

Analyst Insight

Review the detailed financial statements and segment performance within the 10-Q to understand revenue trends and operational efficiency.

Key Numbers

• 2023-12-31 — Reporting Period End Date (Conformed period of report)
• 2024-02-09 — Filing Date (Filed as of date)
• 0331 — Fiscal Year End (Company's fiscal year end)
• 1311 — SIC Code (Standard Industrial Classification for Crude Petroleum & Natural Gas)

Key Players & Entities

• MEXCO ENERGY CORP (company) — Filer name
• 20231231 (date) — Conformed period of report
• 20240209 (date) — Filed as of date
• 0000066418 (company) — Central Index Key
• 1311 (industry_code) — Standard Industrial Classification
• CO (jurisdiction) — State of incorporation
• 0331 (fiscal_year) — Fiscal year end
• MIDLAND (location) — City of business address

Forward-Looking Statements

• MEXCO ENERGY CORP will likely report continued low revenue in the next quarter if commodity prices or production volumes do not significantly improve. (MEXCO ENERGY CORP) — medium confidence, target: 2024-03-31

FAQ

Industry Context

Mexco Energy Corp. operates in the Crude Petroleum & Natural Gas industry, a sector characterized by commodity price volatility and significant capital investment.

Regulatory Implications

As a publicly traded company in the US, Mexco Energy Corp. is subject to SEC regulations, including the requirement to file quarterly reports (10-Q) to ensure transparency for investors.

What Investors Should Do

1. Analyze the financial statements for revenue, expenses, and net income for the quarter and year-to-date.
2. Review any disclosures regarding operational activities, production volumes, or significant events in the Management's Discussion and Analysis section.
3. Compare key financial metrics to previous periods to identify trends and performance changes.

Key Dates

• 2023-12-31: Period End Date — End of the reporting period for the 10-Q filing.
• 2024-02-09: Filing Date — Date the 10-Q report was officially filed with the SEC.
• 2024-03-31: Fiscal Year End — Indicates the end of Mexco Energy Corp.'s current fiscal year.

Year-Over-Year Comparison

This filing is a standard 10-Q for the period ending December 31, 2023. Specific comparative financial data against the previous filing is not detailed in the provided header information.

Key Financial Figures

• $0.50 — ch registered Common Stock, par value $0.50 per share MXC NYSE American Indi
• $1.0 b — financial statement income in excess of $1.0 billion, effective for tax years beginnin
• $1.0 million — rchases in excess of an annual limit of $1.0 million after December 31, 2022 . The IRA 2022

Filing Documents

• form10-q.htm (10-Q) — 773KB
• ex31-1.htm (EX-31.1) — 18KB
• ex31-2.htm (EX-31.2) — 19KB
• ex32-1.htm (EX-32.1) — 9KB
• 0001493152-24-005543.txt (&nbsp;) — 3794KB
• mxc-20231231.xsd (EX-101.SCH) — 25KB
• mxc-20231231_cal.xml (EX-101.CAL) — 57KB
• mxc-20231231_def.xml (EX-101.DEF) — 100KB
• mxc-20231231_lab.xml (EX-101.LAB) — 263KB
• mxc-20231231_pre.xml (EX-101.PRE) — 204KB
• form10-q_htm.xml (XML) — 460KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 3 Consolidated Balance Sheets as of December 31, 2023 (Unaudited) and March 31, 2023 3 Consolidated Statements of Operations (Unaudited) for the three months and nine months ended December 31, 2023 and December 31, 2022 4 Consolidated Statements of Changes in Stockholders' Equity (Unaudited) for the three and nine months ended December 31, 2023 and December 31, 2022 5 Consolidated Statements of Cash Flows (Unaudited) for the nine months ended December 31, 2023 and December 31, 2022 6

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 13 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 17 Item 4.

Controls and Procedures

Controls and Procedures 17

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 18 Item 1A.

Risk Factors

Risk Factors 18 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 18 Item 6. Exhibits 18

SIGNATURES

SIGNATURES 19 CERTIFICATIONS 2 PART I – FINANCIAL INFORMATION Item 1. Financial Statements Mexco Energy Corporation and Subsidiaries CONSOLIDATED BALANCE SHEETS December 31, March 31, 2023 2023 (Unaudited) ASSETS Current assets Cash and cash equivalents $ 3,578,938 $ 2,235,771 Accounts receivable: Oil and natural gas sales 911,255 1,366,784 Trade 8,427 7,031 Prepaid costs and expenses 20,479 56,502 Prepaid drilling 33,052 67,951 Total current assets 4,552,151 3,734,039 Property and equipment, at cost Oil and gas properties, using the full cost method 46,553,548 45,391,634 Other 121,926 121,926 Accumulated depreciation, depletion and amortization ( 33,483,798 ) ( 32,215,095 ) Property and equipment, net 13,191,676 13,298,465 Investments – cost basis 900,000 700,000 Operating lease, right-of-use asset 33,553 75,629 Other noncurrent assets 9,672 12,156 Total assets $ 18,687,052 $ 17,820,289 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued expenses $ 221,422 $ 201,897 Operating lease liability, current 33,553 56,366 Total current liabilities 254,975 258,263 Long-term liabilities Operating lease liability, long-term - 19,263 Asset retirement obligations 692,185 710,276 Deferred income tax liabilities 319,848 - Total long-term liabilities 1,012,033 729,539 Total liabilities 1,267,008 987,802 Commitments and contingencies - - Stockholders' equity Preferred stock - $ 1.00 par value; 10,000,000 shares authorized; none outstanding - - Common stock - $ 0.50 par value; 40,000,000 shares authorized; 2,221,916 and 2,221,416 shares issued; 2,099,339 and 2,136,000 shares outstanding as of December 31, 2023 and March 31, 2023, respectively 1,110,958 1,110,708 Additional paid-in capital 8,496,527 8,321,145 Retained earnings 8,858,186 7,991,129 Treasury stock, at cost ( 122,577 and 85,416 shares, respe

properties

properties ( 1,471,543 ) ( 4,760,880 ) Additions to other property and equipment - ( 1,718 ) Drilling refunds - 18,329 Investment in limited liability companies at cost ( 200,000 ) ( 225,000 ) Proceeds from sale of oil and gas properties and equipment 306,513 - Net cash used in investing activities ( 1,365,030 ) ( 4,969,269 ) Cash flows from financing activities: Proceeds from exercise of stock options 2,962 16,700 Profits from purchase of stock by insider - 30,179 Debt issuance costs ( 750 ) - Proceeds from long-term debt - 675,000 Reduction of long-term debt - ( 675,000 ) Dividends paid ( 213,600 ) - Acquisition of treasury stock ( 455,132 ) ( 168,260 ) Net cash used in financing activities ( 666,520 ) ( 121,381 ) Net increase (decrease) in cash and cash equivalents 1,343,167 ( 739,730 ) Cash and cash equivalents at beginning of period 2,235,771 1,370,766 Cash and cash equivalents at end of period $ 3,578,938 $ 631,036 Non-cash investing and financing activities: Asset retirement obligations $ 2,838 $ 21,554 The accompanying notes are an integral part of the consolidated financial statements. 6 Mexco Energy Corporation and Subsidiaries NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Nature of Operations Mexco Energy Corporation (a Colorado corporation) and its wholly owned subsidiaries, Forman Energy Corporation (a New York corporation), Southwest Texas Disposal Corporation (a Texas corporation) and TBO Oil & Gas, LLC (a Texas limited liability company) (collectively, the "Company") are engaged in the acquisition, exploration, development and production of crude oil, natural gas, condensate and natural gas liquids ("NGLs"). Most of the Company's oil and gas interests are centered in West Texas and Southeastern New Mexico; however, the Company owns producing properties and undeveloped acreage in fourteen states. All of the Company's oil and gas interests are operated b

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