Mexco Energy Reports Decrease in Net Income and Operating Revenues for Fiscal Year Ending March 31, 2026

Mexco Energy Corporation reported a net income of $1.31 million for the fiscal year ending March 31, 2026, a decrease of 24% from the previous year's net income of $1.71 million. The company's total operating revenues fell to $6.56 million, down 8% from $7.14 million in fiscal 2025. This decline was primarily attributed to a decrease in oil sales, which dropped by 14% to $5.28 million, while natural gas sales increased by 31% to $1.27 million, reflecting a rise in production volumes and prices. The average price per barrel of oil decreased to $64.25, down from $73.54, while the average price per thousand cubic feet of natural gas rose to $1.86 from $1.70.

In terms of operational metrics, Mexco's total estimated proved reserves as of March 31, 2026, were approximately 1.44 million barrels of oil equivalent (MMBOE), with 46% being oil and 54% natural gas. This represents a slight increase from 1.40 MMBOE in the previous year. The company reported production of 82,133 barrels of oil and 681,794 thousand cubic feet of natural gas during the fiscal year, with oil production slightly down from 83,564 barrels in 2025. The company also noted a significant increase in its natural gas production, which rose by nearly 20% compared to the previous year.

Strategically, Mexco Energy has focused on acquisitions to bolster its asset base, spending approximately $818,000 to acquire various royalty interests in 270 producing wells across multiple states, including Texas and Colorado. The company also made a $2 million equity investment in a limited liability company aimed at acquiring mineral interests in the Utica and Marcellus formations in Ohio. These acquisitions are part of Mexco's strategy to enhance its production capabilities and reserve base, particularly in the Delaware and Midland Basins, which are critical to its operations.

Looking ahead, Mexco Energy plans to continue optimizing cash flows through operational efficiencies and cost reductions while balancing capital expenditures with cash flows to maintain liquidity. The company is also focused on divesting non-core assets and expects to participate in the drilling of new wells, with 62 new wells projected for development in the coming years. The ongoing volatility in commodity prices remains a concern, but the company aims to navigate these challenges by leveraging its existing assets and pursuing strategic growth opportunities.