Financial Results - Mexco Energy Corporation announced its financial results for the nine months ended December 31, 2025[4] - The financial results include key metrics that will be detailed in the news release filed as Exhibit 99.1[6] Company Developments - The company issued a news release on February 10, 2026, to further develop its properties[5]

FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 1-31785 MEXCO ENERGY CORPORATION (Exact name of registrant as specified in its charter) Colorado 84-0627918 (State or other jurisdiction of (IRS ...

Financial Results - Mexco Energy Corporation announced its financial results for the six months ended September 30, 2025[4]. - The report is filed as Exhibit 99.1, which contains detailed financial information[7]. Company Developments - The company issued a news release on November 12, 2025, to announce further development of properties[5].

Financial Performance - For the six months ended September 30, 2025, net cash provided by operating activities was $2,067,549, an increase of $61,144 compared to $2,006,405 for the same period in 2024[67]. - Net income for the six months ended September 30, 2025, was $565,457, down from $608,237 for the same period in 2024[94]. - Revenue from oil and gas sales decreased to $3,379,300 for the six months ended September 30, 2025, from $3,383,909 in 2024, primarily due to a decrease in oil prices[96]. - Oil revenue decreased by 11% to $2,698,042 for the six months ended September 30, 2025, while gas revenue increased by 93.5% to $681,258[96]. - Production costs decreased by 9% to $773,863 for the six months ended September 30, 2025, from $850,825 in 2024[97]. - Depreciation, depletion, and amortization expense increased by 19% to $1,337,917 for the six months ended September 30, 2025, from $1,123,985 in 2024[98]. - General and administrative expenses increased by 4% to $726,701 for the six months ended September 30, 2025, from $701,570 in 2024[99]. - Federal income tax for the six months ended September 30, 2025, was $108,781, down from $171,353 in 2024, with an effective tax rate of 22%[100]. Revenue and Sales - Oil and gas sales revenue for the second quarter of fiscal 2026 was $1,624,566, a 4% decrease from $1,695,853 in the same period of fiscal 2025[89]. - The average price per barrel of oil decreased by 13.5% to $64.74, while gas revenue increased by 85.1% to $322,461 due to a 45.4% increase in average price per mcf to $1.89[89]. Production and Costs - Production costs for the second quarter of fiscal 2026 were $369,093, an 11% decrease from $413,405 in the same period of fiscal 2025[90]. - Mexco's working interest in two completed horizontal wells in the Bone Spring formation was 0.5%, with initial average production rates of 1,497 BOE per day[74]. - The company plans to participate in the drilling of forty-six horizontal wells and one vertical well at an estimated cost of approximately $1,000,000 for the fiscal year ending March 31, 2026[73]. Investments - The company made a $2,000,000 equity investment in a limited liability company, which has returned $401,801 or 20% of the total investment as of September 30, 2025[80]. - The company acquired royalty interests in 12 producing wells for $60,000 and in 25 wells for $26,000, effective September 1, 2025[82]. Market Conditions - The WTI posted price for crude oil on September 30, 2025, was $58.35, while the Henry Hub spot price for natural gas was $3.12 per MMBtu[86]. - The company faces significant market risks due to fluctuations in commodity prices, with oil prices ranging from $53.11 to $76.02 per barrel over the last twelve months[106].

Financial Results - Mexco Energy Corporation announced its financial results for the three months ended June 30, 2025[4] - The financial results include key metrics that will be detailed in the news release filed as Exhibit 99.1[6] Company Developments - The company issued a news release on August 12, 2025, to announce further development of properties[5]

Financial Performance - For the quarter ended June 30, 2025, net income was $241,951, a decrease of 17% from $291,039 for the same quarter in 2024[79] - Revenue from oil and gas sales increased by 4% to $1,754,734 for the quarter ended June 30, 2025, compared to $1,688,056 for the same quarter in 2024[80] - Oil revenue decreased by 7.6% to $1,395,937, while gas revenue increased by 101.9% to $358,797, reflecting a 16.4% increase in oil volume and a 24.6% increase in gas volume[80] - Cash flow from operating activities was $1,363,277 for the three months ended June 30, 2025, an increase of 26.4% from $1,078,614 for the same period in 2024[62] Capital Expenditures and Investments - The company plans to participate in the drilling and completion of 35 horizontal wells at an estimated cost of approximately $1,100,000 for the fiscal year ending March 31, 2026[67] - The company expects to expend approximately $150,000 for the completion of 17 horizontal wells participated in during fiscal 2025[71] - As of June 30, 2025, cash and cash equivalents increased to $2,546,722, with working capital rising to $2,922,683, an increase of $453,019 from March 31, 2025[66] - The company acquired royalty interests in 2 wells for a purchase price of $40,000, effective April 1, 2025[74] Expenses and Costs - Depreciation, depletion, and amortization expense increased by 25% to $675,270 for the first quarter of fiscal 2026, primarily due to increased production volumes[83] - General and administrative expenses rose by 7% to $394,437 for the three months ended June 30, 2025, attributed to higher engineering and accounting fees[84] Market Conditions and Risks - As of June 30, 2025, the largest credit risk associated with a single purchaser was $380,192, representing 44% of total oil and gas receivables[88] - The NYMEX West Texas Intermediate (WTI) crude oil price ranged from $53.11 per barrel in May 2025 to $79.86 per barrel in July 2024, with a current price of $61.09 per barrel[92] - The Henry Hub spot price for natural gas fluctuated between $1.21 per MMBtu in November 2024 and $9.86 per MMBtu in January 2025, currently at $3.26 per MMBtu[92] - A $10 increase or decrease in average oil price for the quarter ended June 30, 2025, would result in a change of $220,100 in oil sales[94] - A $1 increase or decrease in average gas price for the same quarter would lead to a change of $169,905 in natural gas sales[94] - Declines in oil and natural gas prices could materially adversely affect financial condition, liquidity, and operating results[93] - Improvements in oil and gas prices can positively impact financial condition and capital resources[94] - Temporary pipeline capacity constraints in the Permian Basin have adversely affected natural gas prices[90] - Price fluctuations are influenced by global demand, supply levels, production quotas, weather conditions, and political/economic factors[91] - The company has not experienced significant credit losses despite the credit risk associated with oil and gas production[88]

Core Insights - Mexco Energy Corporation reported a net income of $1,712,368, or $0.81 per diluted share, representing a 27% increase compared to fiscal 2024 [1] - Operating revenues for fiscal 2025 were $7,358,066, an 11% increase from fiscal 2024, driven by increased oil and natural gas production volumes [2] Financial Performance - The average realized price for oil was $73.54 per barrel, while the average realized price for natural gas was $1.70 per thousand cubic feet [2] - The estimated present value of proved reserves at March 31, 2025, was approximately $23 million, with proved oil reserves decreasing by 15% to 675 thousand barrels and natural gas reserves decreasing by 4% to 4.360 billion cubic feet [6] Operational Activities - The company participated in the drilling of 35 horizontal wells at a cost of approximately $1,100,000 for fiscal 2025, with 17 wells to be completed this fiscal year [3] - Approximately 31% of fiscal 2025 operating revenues were generated from royalties free of operational costs to Mexco [4] Future Outlook - The company expects to participate in the drilling of 27 and completion of 17 horizontal wells at an estimated cost of approximately $1.2 million for fiscal 2026 [5] - The company has approximately $2.2 million cash on hand and no outstanding indebtedness on its bank line of credit, indicating a strong financial position [7] Acquisitions - Throughout the year, the company acquired various royalty and mineral interests in 840 gross wells for an aggregate purchase price of approximately $2.0 million [7]

Financial Results - Mexco Energy Corporation announced its financial results for the year ended March 31, 2025[4] - The financial results include key metrics that will be detailed in the news release filed as Exhibit 99.1[6] Company Developments - The company issued a news release on June 27, 2025, to further develop its properties[5]

Reserves and Production - As of March 31, 2025, total estimated proved reserves were approximately 1.401 million barrels of oil equivalent (MMBOE), with 48% being oil and 52% natural gas, and a present value of approximately $23 million[16] - Oil contributed approximately 84% of total oil and natural gas sales and 48% of total proved reserves volumes for fiscal 2025[36] - The Delaware Basin properties accounted for approximately 67% of discounted future net cash flows from proved reserves and 65% of gross revenues for fiscal 2025[39] - The Midland Basin properties accounted for approximately 12% of discounted future net cash flows from proved reserves and 14% of gross revenues for fiscal 2025[40] - Oil and gas production for fiscal 2025 was 83,564 barrels of oil and 570,012 Mcf of gas, representing increases of 19% and 13% respectively compared to fiscal 2024[43] Revenue and Sales - Revenues from oil and gas royalty interests accounted for approximately 31% of total operating revenues for fiscal 2025[36] - The company made sales to Company A that accounted for 58% of operating revenues for the year ended March 31, 2025[48] Financial Performance and Risks - As of March 31, 2025, the largest credit risk associated with any single purchaser was $478,863, representing 43% of total oil and gas receivables[217] - The company has not experienced significant credit losses on oil and gas accounts, indicating a low credit risk[49] - If the average oil price had increased or decreased by ten dollars per barrel for fiscal 2025, pretax income would have changed by $835,640[224] - If the average gas price had increased or decreased by one dollar per mcf for fiscal 2025, pretax income would have changed by $570,012[224] Market Conditions - The NYMEX West Texas Intermediate (WTI) crude oil price ranged from a low of $61.73 per barrel to a high of $82.89 per barrel in the last twelve months[221] - The Henry Hub Spot Market Price for natural gas ranged from a low of $1.21 per MMBtu to a high of $9.86 per MMBtu in the last twelve months[221] - On March 31, 2025, the WTI posted price for crude oil was $67.46 per barrel and the Henry Hub spot price for natural gas was $4.11 per MMBtu[222] Strategic Plans - The company plans to optimize cash flows through operating efficiencies and cost reductions, divest non-core assets, and balance capital spending with cash flows to minimize borrowings for fiscal 2026[34] - The company has made significant acquisitions, including a royalty interest purchase for $500,000 covering 4 producing gas units in Texas[20] - The company owns partial interests in approximately 7,500 producing wells across multiple states in the U.S.[42] Industry Environment - The competitive landscape includes major oil and gas companies and independent producers, which may place the company at a competitive disadvantage due to resource limitations[44] - The oil and gas industry is subject to extensive regulation, which may impose new costs and affect operations[50] - The company did not incur any material capital expenditures for remediation or pollution control activities for the year ended March 31, 2025[52]

Group 1 - Mexco Energy Corporation declared a regular annual cash dividend of $0.10 per common share, payable on June 16, 2025, to stockholders of record as of June 2, 2025 [1] - The company is an independent oil and gas entity based in Midland, Texas, primarily focused on the acquisition, exploration, and development of oil and gas properties in the Permian Basin [2] - Dividend payments are determined by the Board of Directors and are influenced by factors such as the company's liquidity, capital resources, operational results, and future expectations [3]