Mexco Energy Corporation Reports Increased Quarterly Net Income and Revenue Growth

Mexco Energy Corporation reported its financial results for the three and nine months ended December 31, 2024, showing a net income of $469,133 for the quarter, up from $345,610 in the same period last year. For the nine-month period, net income was $1,077,370, slightly down from $1,080,657 in the prior year. The company’s total operating revenues increased to $1,891,265 for the quarter, a 14% rise from $1,656,443 in the previous year, driven primarily by a 12.7% increase in oil sales, which reached $1,563,663. However, natural gas sales decreased by 18.4% to $264,741, reflecting challenges in pricing and market conditions.

Comparing the nine-month periods, total operating revenues rose to $5,368,327, an increase of 11% from $4,811,472, largely due to a 17.3% increase in oil revenue, which totaled $4,595,585. This was partially offset by a significant decline in natural gas revenue, which fell by 21.9% to $616,728. The company attributed the fluctuations in revenue to increased production volumes but noted that these were countered by lower average prices for both oil and gas, influenced by market volatility and pipeline capacity constraints in the Permian Basin.

Operationally, Mexco Energy has been active in expanding its asset base, incurring approximately $2 million in acquisition costs for various royalty interests across multiple states, including Colorado, Louisiana, New Mexico, Texas, and Wyoming. The company also reported a significant increase in production costs, which rose by 15% to $1,311,066 for the nine-month period, driven by higher production taxes and lease operating expenses. General and administrative expenses also increased by 6% to $1,042,084, reflecting higher contract and engineering service costs.

In terms of stockholder equity, Mexco repurchased 57,766 shares for a total cost of $703,216 during the nine months ended December 31, 2024, compared to 37,161 shares repurchased for $455,133 in the same period of the previous year. The company declared a regular annual dividend of $0.10 per share, totaling $209,000, consistent with the previous year’s dividend. Looking ahead, Mexco Energy plans to continue its focus on increasing profit margins and acquiring low-cost reserves, while navigating the challenges posed by fluctuating commodity prices and market conditions.