MIDLAND, TX , July 02, 2018 (GLOBE NEWSWIRE) -- Mexco Energy Corporation (NYSE American: MXC) reported results on its Annual Report on Form 10-K to the Securities and Exchange Commission (“SEC”) for the fiscal year ended March 31, 2018.

The Company reported a net loss of $321,489 or ($0.16) per diluted share, for fiscal year 2018, a decrease from a net loss of $694,553, or ($0.34) per diluted share, for fiscal 2017.

Operating revenues in fiscal 2018 were $2,705,235, an increase of 7% when compared to fiscal 2017 operating revenues of $2,525,363.  This is the result of a 18% increase in oil prices and a 17% increase in gas prices partially offset by an 11% decrease in gas production.

The Company reported a profit of $264,461 for the quarter ending March 31, 2018, the Company’s fourth quarter of fiscal 2018, compared to a loss of $3,454 from the comparable quarter of fiscal 2017.  Operating revenues in the fourth quarter were $763,532 compared to $684,204 for the same quarter in fiscal 2017, an increase of 12%.  This is primarily the result of increased oil and natural gas prices and a decrease in depreciation, depletion and amortization.

The Company’s estimated present value of proved reserves at March 31, 2018 was approximately $22 million based on estimated future net revenues discounted at 10% per annum, pricing and other assumptions set forth in “Item2 – Properties” of the Company’s Form 10-K, a decrease of 13% as compared to the same at March 31, 2017.  The Company’s estimated proved oil reserves at March 31, 2018 decreased 44% to 1.197 million barrels of oil and natural gas liquids, and natural gas reserves decreased 18% to 5.487 billion cubic feet over the prior fiscal year.  This reduction in reserves was due to sales of non-core properties and the restructuring of our plans for development of a non-producing leasehold interest in Martin County, Texas.  For fiscal 2018, oil constituted approximately 57% of the Company’s total proved reserves and approximately 67% of the Company’s revenues.

After fiscal 2018, Mexco reduced its bank indebtedness to $500,000 as of June 30, 2018, resulting in a debt to equity ratio of 6%.

In addition to an indeterminate number of wells to be drilled by other operators on Mexco’s royalty interests, the Company currently expects to participate in the drilling and completion of approximately 50 horizontal wells, at an estimated aggregate cost of approximately $1,300,000 for the fiscal year ended March 31, 2019, of which approximately $141,000 has been expended to date.  The operators of these wells include Concho Resources, Inc., Marathon Oil Company, Mewbourne Oil Company, XTO Energy, Inc. and others.

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 inherit 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, 2018.  Mexco Energy Corporation disclaims any intention or obligation to revise any forward-looking statements.

Mexco Energy Corporation and Subsidiaries
     March 31, March 31,
      2018   2017 
 Current assets   
  Cash and cash equivalents$  492,610  $  73,451 
  Accounts receivable:   
   Oil and gas sales   395,991     381,414 
   Trade   436,249     13,744 
  Prepaid costs and expenses   47,583     36,325 
    Total current assets   1,372,433     504,934 
 Property and equipment, at cost   
  Oil and gas properties, using the full cost method   35,224,784     37,640,096 
  Other    107,484     107,484 
  Accumulated depreciation, depletion and amortization (26,453,025)  (25,572,606)
    Property and equipment, net   8,879,243     12,174,974 
  Other noncurrent assets 149,278   28,157 
    Total assets$  10,400,954  $  12,708,065 
 Current liabilities   
  Accounts payable and accrued expenses$  446,815  $  137,259 
    Total current liabilities 446,815   137,259 
 Long-term debt   700,000     2,900,000 
 Asset retirement obligations 852,553     968,484 
    Total liabilities 1,999,368   4,005,743 
 Commitments and contingencies   
 Stockholders' equity   
  Preferred stock - $1.00 par value;   
   10,000,000 shares authorized; none outstanding  -    - 
  Common stock - $0.50 par value; 40,000,000 shares authorized;   
   2,104,266 shares issued and 2,037,266 shares outstanding   
    as of March 31, 2018 and 2017, respectively   1,052,133     1,052,133 
  Additional paid-in capital   7,265,601     7,244,848 
  Retained earnings   429,853     751,342 
  Treasury stock, at cost (67,000 shares)   (346,001)    (346,001)
 Total stockholders' equity   8,401,586     8,702,322 
    Total liabilities and stockholders’ equity$  10,400,954  $  12,708,065 

Mexco Energy Corporation and Subsidiaries
Years ended March 31,
    2018   2017 
Operating revenues:   
 Oil and gas$  2,650,232  $  2,337,222 
 Other 55,003   188,141 
  Total operating revenues 2,705,235   2,525,363 
Operating expenses:   
 Production 1,070,447   878,458 
 Accretion of asset retirement obligation 31,460   35,743 
 Depreciation, depletion and amortization 880,419   1,177,422 
 General and administrative 955,147   976,392 
  Total operating expenses 2,937,473   3,068,015 
Operating loss  (232,238)  (542,652)
Other income (expenses):   
 Interest income 286   225 
 Interest expense (89,537)  (152,126)
  Net other (expense) income (89,251)  (151,901)
Loss before provision for income taxes (321,489)  (694,553)
Income tax -   - 
Net loss$  (321,489) $  (694,553)
Loss per common share:   
 Basic:$  (0.16) $  (0.34)
 Diluted:$  (0.16) $   (0.34)
Weighted average common shares outstanding:   
 Basic: 2,037,266   2,037,266 
 Diluted: 2,037,266   2,037,266 


For additional information, please contact:  

Nicholas C. Taylor, 
Chairman and Chief Executive Officer 

Tammy L. McComic, 
President and Chief Financial Officer 

Mexco Energy Corporation, (432) 682-1119.