Mexco Energy Corporation Reports Significant Net Income Increase and Strategic Acquisitions

Mexco Energy Corporation reported a net income of $501,065 for the three months ended June 30, 2026, a significant increase from $241,951 in the same period last year. This growth in profitability was driven by a 13% rise in total operating revenues, which reached $1,983,169, compared to $1,756,940 in the prior year. The increase in revenue was primarily attributed to a 29.7% rise in oil sales, which amounted to $1,811,183, while natural gas sales decreased by 53.5% to $166,975. The company’s operating income also improved, rising to $567,300 from $274,490 a year earlier, reflecting a decrease in total operating expenses from $1,482,450 to $1,415,869.

In terms of financial position, Mexco's total assets increased to $22,198,045 as of June 30, 2026, up from $21,692,463 at the end of the previous fiscal quarter. Current assets decreased to $3,248,617, primarily due to a reduction in cash and cash equivalents, which fell to $1,292,873 from $2,775,976. The company’s liabilities also rose, with total liabilities increasing to $1,874,881 from $1,705,644, largely due to higher accounts payable and accrued expenses. Stockholders' equity grew to $20,323,164, reflecting retained earnings of $12,023,436, up from $11,726,971.

Strategically, Mexco Energy made significant acquisitions during the quarter, purchasing royalty interests in 400 producing wells across multiple states, including Colorado, Texas, Louisiana, and Ohio, for a total of approximately $2.1 million. These acquisitions are expected to enhance the company’s production capabilities and long-term reserves. The company also reported plans to participate in the drilling of 53 horizontal wells at an estimated cost of $1.3 million for the fiscal year ending March 31, 2027, indicating a focus on expanding its operational footprint.

Operationally, Mexco's production metrics showed a decline in oil and gas volumes, with oil production decreasing by 14.6% to 18,802 barrels and natural gas production down by 8.5% to 155,426 mcf. The average price per barrel of oil increased significantly to $96.33, while the average price for natural gas fell to $1.07 per mcf. The company’s engagement in investments also yielded positive results, with income from investments in LLCs rising by 101% to $115,254, reflecting higher earnings from its limited liability company investments.

Looking ahead, Mexco Energy remains focused on increasing profit margins through strategic acquisitions and development of oil and gas properties. The company is aware of the volatility in oil and gas prices, which can significantly impact its financial performance. As of June 30, 2026, the company had cash and cash equivalents of $1,292,873 and working capital of $2,721,592, indicating a solid liquidity position to support its ongoing operations and future growth initiatives.