Mexco Energy Reports Decrease in Net Income and Revenue for Quarter Ended December 31, 2025

Mexco Energy Corporation reported its financial results for the three and nine months ended December 31, 2025, revealing a net income of $50,245 for the quarter, a significant decrease from $469,133 in the same period of the previous year. For the nine-month period, net income was $615,702, down from $1,077,370 in the prior year. The decline in profitability was attributed to a 29% decrease in oil and gas sales revenue, which totaled $1,301,794 for the quarter and $4,681,094 for the nine months, primarily due to lower oil production volumes and prices, despite an increase in natural gas production.

The company's total operating revenues for the three months ended December 31, 2025, were $1,383,887, down from $1,891,265 in the same quarter of 2024. The decrease in revenue was partially offset by an increase in other operating revenues, which rose to $82,093 from $62,861 year-over-year. Operating expenses also decreased to $1,292,414 from $1,444,884, contributing to a reduction in overall costs. The effective tax rate for the quarter was 56%, compared to a tax benefit of 4% in the previous year, reflecting changes in estimated income tax accruals.

In terms of strategic developments, Mexco Energy made several acquisitions during the nine months, incurring approximately $626,000 in costs to acquire royalty interests in 92 producing wells across multiple states, including Colorado and Texas. This is a notable reduction from the $2 million spent on similar acquisitions in the previous year. The company also reported a cash balance of $2,267,640 as of December 31, 2025, an increase from $1,753,955 at the end of the previous fiscal period, indicating improved liquidity.

Operationally, Mexco Energy's working interest in new wells has been a focus, with plans to participate in the drilling of fifty horizontal wells and one vertical well at an estimated cost of $1.7 million for the fiscal year ending March 31, 2026. The company has also seen a decrease in production costs, which fell to $302,572 for the quarter, down 34% from the previous year, primarily due to reduced lease operating expenses. The company’s total assets increased slightly to $20,556,389 from $20,347,857, while total liabilities decreased to $1,299,469 from $1,636,160, reflecting a stronger balance sheet.

Looking ahead, Mexco Energy aims to enhance its profit margins by focusing on acquiring and developing oil and gas properties with long-term production potential. The company is also evaluating the impact of recent federal tax legislation on its operations and financial statements. Despite the challenges posed by fluctuating oil and gas prices, Mexco remains committed to its strategic initiatives and operational improvements to drive future growth.