Mexco Energy Corporation Reports 27% Increase in Net Income for Fiscal Year Ending March 31, 2025

Mexco Energy Corporation reported a net income of $1.71 million for the fiscal year ending March 31, 2025, marking a 27% increase from the previous year's net income of $1.34 million. The company's total revenue from oil and gas sales reached $7.12 million, a 10% increase compared to $6.46 million in fiscal 2024. This growth was primarily driven by a 19.4% increase in oil production volumes, which totaled 83,564 barrels, although it was partially offset by a decrease in average oil prices, which fell to $73.54 per barrel from $76.40. Natural gas revenue, however, decreased by 12.9% to $970,811, attributed to a 23.3% drop in average gas prices.

In terms of operational metrics, Mexco's total estimated proved reserves as of March 31, 2025, were approximately 1.40 million barrels of oil equivalent (MMBOE), a decline from 1.55 MMBOE in the previous year. The present value of these reserves was estimated at $23.22 million, down from $29.08 million in 2024. The company attributed the decrease in reserves to downward revisions primarily due to changes in the timing of development in wells located in Lea County, New Mexico. Despite these challenges, Mexco participated in the development of 35 horizontal wells during the fiscal year, with a total capital expenditure of approximately $1.1 million.

Strategically, Mexco has focused on expanding its portfolio through acquisitions. In fiscal 2025, the company made several notable acquisitions, including royalty interests in 21 producing wells in Reeves County, Texas, for $158,000, and additional interests in various wells across Texas, Colorado, and Louisiana, totaling over $1 million. These acquisitions are part of Mexco's strategy to enhance its production capabilities and increase its market share in key regions, particularly in the Delaware and Midland Basins of the Permian Basin, which account for a significant portion of its future cash flows.

The company also reported a decrease in working capital, which fell to $2.47 million from $3.26 million in the previous year. This decline was influenced by increased accounts receivable and cash used for stock repurchases, which totaled $703,216 for 57,766 shares during the fiscal year. As of March 31, 2025, Mexco had a total of 2,046,000 shares outstanding, with a closing stock price of $8.17 per share.

Looking ahead, Mexco Energy Corporation anticipates continued challenges in the oil and gas market, including volatility in commodity prices driven by geopolitical events and economic conditions. The company plans to optimize cash flows through operational efficiencies, divest non-core assets, and balance capital spending with cash flows to maintain liquidity. The management remains focused on enhancing production and reserves through strategic acquisitions and development activities, while navigating the complexities of the current market environment.