Mexco Energy Reports Q2 2026 Financial Results with Increased Natural Gas Sales

Mexco Energy Corporation reported its financial results for the second quarter and first half of fiscal 2026, revealing a net income of $323,506 for the three months ended September 30, 2025, compared to $317,198 for the same period in 2024. For the six months ended September 30, 2025, net income was $565,457, down from $608,237 in the prior year. Total operating revenues for the quarter were $1,734,743, slightly lower than $1,749,227 in the same quarter last year, while revenues for the six-month period increased to $3,548,919 from $3,477,062.

The company experienced a notable decrease in oil sales, which fell by 14.4% to $1,302,105 for the quarter, attributed to lower average prices per barrel. However, natural gas sales surged by 85.1% to $322,461, driven by increased production and higher prices. Overall, production costs decreased by 11% to $369,093 for the quarter, reflecting reduced lease operating expenses. Despite these positive trends in gas sales and production costs, the overall profitability was impacted by increased depreciation, depletion, and amortization expenses, which rose by 13% to $662,647.

In terms of strategic developments, Mexco Energy made several acquisitions during the reporting period, including royalty interests in multiple producing wells across Texas and Colorado, totaling approximately $126,000. These acquisitions are expected to enhance the company's production capabilities and expand its operational footprint. The company also reported a significant increase in cash and cash equivalents, which rose to $2,746,692 as of September 30, 2025, compared to $1,753,955 at the end of the previous fiscal year.

Operationally, Mexco Energy's total assets increased to $20,556,755, up from $20,347,857 at the end of the previous fiscal year. The company’s working capital improved to $3,282,347, reflecting a strategic focus on maintaining liquidity and financial stability. The company continues to evaluate its investments and operational strategies in light of fluctuating commodity prices, which have shown volatility in recent months. The average price for crude oil was reported at $58.35 per barrel, while natural gas was priced at $3.12 per MMBtu as of September 30, 2025.

Looking ahead, Mexco Energy plans to participate in the drilling of 46 horizontal wells and one vertical well at an estimated cost of approximately $1,000,000 for the fiscal year ending March 31, 2026. The company remains focused on increasing profit margins and acquiring low-cost oil and gas properties with potential for long-term production. Management is optimistic about the future, despite the inherent risks associated with market volatility and commodity price fluctuations.