[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Mexco Energy Corporation reported a net loss of $341,640 for the six months ended September 30, 2020, with total assets increasing to $10.21 million and liabilities growing to $2.15 million [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to $10.21 million, liabilities rose to $2.15 million due to debt and a PPP loan, and stockholders' equity decreased to $8.06 million Consolidated Balance Sheet Highlights (Unaudited) | Account | Sep 30, 2020 ($) | Mar 31, 2020 ($) | | :--- | :--- | :--- | | **Total Current Assets** | $407,943 | $369,266 | | **Property and equipment, net** | $9,573,669 | $9,472,913 | | **Total Assets** | **$10,209,769** | **$10,070,509** | | **Total Current Liabilities** | $167,200 | $182,481 | | **Long-term debt** | $1,143,686 | $757,423 | | **PPP loan payable** | $68,574 | $- | | **Total Liabilities** | **$2,149,664** | **$1,706,147** | | **Total Stockholders' Equity** | **$8,060,105** | **$8,364,362** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) The company reported a net loss of $41,970 for Q2 2020, while the six-month net loss widened to $341,640 due to decreased operating revenues Quarterly and Six-Month Operating Results (Unaudited) | Metric | Q2 2020 ($) | Q2 2019 ($) | Six Months 2020 ($) | Six Months 2019 ($) | | :--- | :--- | :--- | :--- | :--- | | **Total Operating Revenues** | $636,042 | $625,884 | $1,006,498 | $1,325,475 | | **Operating Loss** | $(16,806) | $(74,771) | $(298,186) | $(122,621) | | **Net Loss** | **$(41,970)** | **$(82,787)** | **$(341,640)** | **$(136,973)** | | **Loss Per Share (Basic)** | $(0.02) | $(0.04) | $(0.17) | $(0.07) | [Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Stockholders' equity decreased from $8.36 million to $8.06 million, primarily due to a net loss, partially offset by stock-based compensation and option exercises Changes in Stockholders' Equity (Six Months Ended Sep 30, 2020) | Description | Amount ($) | | :--- | :--- | | Balance at April 1, 2020 | $8,364,362 | | Net loss | $(341,640) | | Issuance of stock through options exercised | $9,435 | | Stock based compensation | $27,948 | | **Balance at September 30, 2020** | **$8,060,105** | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations decreased to $164,237, investing activities used $593,949, and financing provided $458,009, resulting in a net cash increase of $28,297 Cash Flow Summary (Six Months Ended Sep 30) | Cash Flow Activity | 2020 ($) | 2019 ($) | | :--- | :--- | :--- | | Net cash provided by operating activities | $164,237 | $342,938 | | Net cash used in investing activities | $(593,949) | $(915,691) | | Net cash provided by financing activities | $458,009 | $515,000 | | **Net increase (decrease) in cash** | **$28,297** | **$(57,753)** | | **Cash at end of period** | **$62,678** | **$70,499** | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail oil and gas operations, COVID-19 impact on energy prices, and key accounting policies including debt, leases, and derivatives - The company explores, develops, and produces oil and natural gas primarily in West Texas and Southeastern New Mexico, with all interests operated by others[17](index=17&type=chunk) - The COVID-19 pandemic has significantly reduced oil and natural gas demand, adversely impacting the company's operations and financial performance[18](index=18&type=chunk) - The credit facility with West Texas National Bank was increased to **$2.5 million** and extended to March 28, 2023, with an outstanding balance of **$1.175 million** as of September 30, 2020[31](index=31&type=chunk)[37](index=37&type=chunk) - The company incurred a realized loss of **$19,200** from crude oil put option contracts that expired in July and August 2020[58](index=58&type=chunk)[59](index=59&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 52% decrease in cash flow from operations, a widened net loss of $341,640, and plans for drilling 20 horizontal wells [Liquidity and Capital Resources](index=16&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is funded by operations, borrowings, and asset sales; cash flow from operations decreased by 52% to $164,237 due to lower oil prices - Cash flow from operations for the first six months of fiscal 2021 decreased by **52%** to **$164,237**, primarily due to lower crude oil and natural gas prices[80](index=80&type=chunk) - The company plans to participate in drilling 20 horizontal wells at an estimated cost of approximately **$1.2 million** for fiscal year 2021[82](index=82&type=chunk) - The company received a Paycheck Protection Program (PPP) loan of approximately **$68,600** in May 2020 to maintain payroll and cover overhead[91](index=91&type=chunk) [Results of Operations – Three Months Ended September 30, 2020](index=18&type=section&id=Results%20of%20Operations%20%E2%80%93%20Three%20Months%20Ended%20September%2030%2C%202020) Net loss for Q2 fiscal 2021 improved to $41,970 due to increased oil and gas sales volumes offsetting lower oil prices, and a 25% decrease in G&A expenses Q2 2021 vs Q2 2020 Oil and Gas Sales | Metric | Q2 2021 | Q2 2020 | % Change | | :--- | :--- | :--- | :--- | | **Oil Revenue ($)** | $504,957 | $531,086 | (4.9)% | | Oil Volume (barrels) | 13,143 | 10,094 | 30.2% | | Avg. Oil Price ($/barrel) | $38.42 | $52.61 | (27.0)% | | **Gas Revenue ($)** | $125,007 | $94,664 | 32.1% | | Gas Volume (Mcf) | 88,890 | 72,686 | 22.3% | | Avg. Gas Price ($/Mcf) | $1.41 | $1.30 | 8.5% | - General and administrative expenses decreased by **25%** to **$192,360**, driven by lower salaries, legal fees, and insurance[99](index=99&type=chunk) [Results of Operations – Six Months Ended September 30, 2020](index=19&type=section&id=Results%20of%20Operations%20%E2%80%93%20Six%20Months%20Ended%20September%2030%2C%202020) The six-month net loss widened to $341,640 due to a 25% decrease in oil and gas sales revenue, primarily from a 41% drop in average oil prices Six Months 2021 vs 2020 Oil and Gas Sales | Metric | Six Months 2021 | Six Months 2020 | % Change | | :--- | :--- | :--- | :--- | | **Oil Revenue ($)** | $787,327 | $1,119,522 | (29.7)% | | Oil Volume (barrels) | 24,677 | 20,703 | 19.2% | | Avg. Oil Price ($/barrel) | $31.91 | $54.08 | (41.0)% | | **Gas Revenue ($)** | $206,816 | $197,922 | 4.5% | | Gas Volume (Mcf) | 168,406 | 144,533 | 16.5% | | Avg. Gas Price ($/Mcf) | $1.23 | $1.37 | (10.2)% | - Production costs decreased by **13%** due to lower production taxes and operator cost-cutting measures amid depressed commodity prices[103](index=103&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=19&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces significant market risks from commodity price volatility and interest rate changes, with a concentrated credit risk from a single purchaser - Energy price risk is significant; a **$10 per barrel** change in oil price would alter pretax income by **$246,770** for the first six months of fiscal 2021[111](index=111&type=chunk)[115](index=115&type=chunk) - A **$1 per Mcf** change in average gas price would alter pretax income by **$168,406** for the first six months of fiscal 2021[115](index=115&type=chunk) - As of September 30, 2020, credit risk is concentrated, with one purchaser accounting for **$212,549**, or **66%**, of total oil and gas receivables[110](index=110&type=chunk) [Controls and Procedures](index=20&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of September 30, 2020, with no material changes to internal control over financial reporting - Disclosure controls and procedures were effective as of September 30, 2020, as concluded by principal executive and financial officers[116](index=116&type=chunk) - No material changes in internal control over financial reporting occurred during the six months ended September 30, 2020[117](index=117&type=chunk) [PART II. OTHER INFORMATION](index=21&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=21&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material legal or governmental proceedings - The company is not currently involved in any material litigation or claims arising from its operations[119](index=119&type=chunk) [Risk Factors](index=21&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the company's 2020 Annual Report on Form 10-K - No material changes have occurred to the risk factors disclosed in the Form 10-K for the fiscal year 2020[120](index=120&type=chunk) [Exhibits](index=21&type=section&id=Item%206.%20Exhibits) The report includes required certifications from the Chief Executive Officer and Chief Financial Officer - The exhibits filed with this report include CEO and CFO certifications pursuant to securities laws (31.1, 31.2, 32.1)[121](index=121&type=chunk)

Financial Performance - For the first three months of fiscal 2021, cash flow from operations was $66,472, a decrease of 64% compared to the same period in fiscal 2020, primarily due to a 56% decrease in crude oil price and a 29% decrease in natural gas price [73]. - Revenue from oil and gas sales was $364,179 for the quarter ended June 30, 2020, a 47% decrease from $691,694 for the quarter ended June 30, 2019, primarily due to a decrease in oil and gas prices [86]. - The company reported a net loss of $299,670 for the quarter ended June 30, 2020, compared to a net loss of $54,186 for the same quarter in 2019 [85]. - General and administrative expenses were $248,878 for the three months ended June 30, 2020, a 20% decrease from $311,061 for the same period in 2019 [89]. - Working capital decreased to $102,065 as of June 30, 2020, from $186,785 at March 31, 2020, a decrease of $84,720 [74]. Oil and Gas Prices - The average price per barrel of oil decreased by 55.9% to $24.48 in 2020 from $55.47 in 2019, while the average price per MMBtu of natural gas decreased by 28.5% to $1.03 from $1.44 [87]. - As of June 30, 2020, the WTI posted price for crude oil was $35.25 per bbl, with average prices of $14.68, $24.67, and $34.35 per bbl for April, May, and June 2020 respectively [99]. - The Henry Hub posted price for natural gas on June 30, 2020 was $1.67 per MMBtu, with average prices of $1.74, $1.75, and $1.63 per MMBtu for April, May, and June 2020 respectively [99]. - A $10 increase or decrease in average oil price per barrel for the quarter ended June 30, 2020 would result in a pretax income change of $115,340 [101]. - A $1 increase or decrease in average gas price per mcf for the quarter ended June 30, 2020 would result in a pretax income change of $79,516 [101]. Operational Plans and Constraints - The company plans to participate in the drilling and completion of approximately 20 horizontal wells at an estimated aggregate cost of $950,000 for the fiscal year ending March 31, 2021 [75]. - The company is unable to predict the duration of temporary pipeline capacity constraints in the Permian Basin affecting natural gas prices [98]. Impact of Price Changes - Declines in oil and natural gas prices can materially adversely affect the company's financial condition, liquidity, and operating results [100]. - Improvements in oil and gas prices can have a favorable impact on the company's financial condition and capital resources [101]. - Changes in oil and gas prices impact estimated future net revenue and the estimated quantity of proved reserves [100]. - A noncash write-down of oil and gas properties may be required under full cost accounting rules if prices decline significantly [100]. - Lower prices may reduce the amount of crude oil and natural gas that can be produced economically, affecting reserve quantities [100]. Production and Financial Support - The company received approximately $68,574 from the Paycheck Protection Program to maintain payroll and cover overhead costs [82]. - The company has an outstanding loan balance of $930,000 under its credit agreement, which bears interest at a floating rate [93]. - The company’s working interest in completed wells currently producing is 0.48% for 4 wells and 0.006% for 3 wells, with production rates of 4,324 and 2,905 barrels of oil equivalent per day respectively [76].

Oil and Gas Production - As of March 31, 2020, oil constituted approximately 55% of the company's total proved reserves and approximately 84% of its revenues for fiscal 2020[22]. - The company's oil production for fiscal 2020 was 44,301 barrels, an increase from 35,359 barrels in 2019, representing a growth of approximately 25.5%[31]. - Approximately 27% of the company's revenues for fiscal 2020 came from oil and gas royalty interests[22]. Basin Contributions - The Delaware Basin properties accounted for approximately 40% of the company's discounted future net cash flows from proved reserves and 54% of its gross revenues for fiscal 2020[24]. - The Midland Basin properties accounted for approximately 41% of the company's discounted future net cash flows from proved reserves and 22% of its gross revenues for fiscal 2020[26]. - The Permian Basin accounts for 92% of the company's discounted future net cash flows from proved reserves and 78% of its gross revenues[23]. Financial Performance and Risks - Major customers accounted for 52% of revenues in fiscal 2020, up from 42% in 2019, indicating a significant reliance on key customers[36]. - The company had an outstanding loan balance of $795,000 under its credit agreement as of March 31, 2020, with interest rates tied to the prime rate[191]. - As of March 31, 2019, the largest credit risk associated with a single purchaser was $170,418, representing 63% of total oil and gas receivables[192]. - The company has not experienced any significant credit losses related to its receivables[192]. Price Volatility - The NYMEX West Texas Intermediate (WTI) crude oil price on March 31, 2020, was $16.75 per barrel, with averages of $14.68 and $24.67 per barrel for April and May 2020, respectively[197]. - The Henry Hub Spot Market Price for natural gas on March 31, 2020, was $1.71 per MMBtu, averaging $1.74 and $1.75 per MMBtu for April and May 2020, respectively[197]. - A $5 increase or decrease in average oil price for fiscal 2020 would have changed oil revenue by $221,505[199]. - A $1 increase or decrease in average gas price for fiscal 2020 would have changed natural gas revenue by $294,007[199]. - Oil and natural gas prices are expected to remain volatile due to various factors affecting supply and demand[195]. - Temporary pipeline capacity constraints in the Permian Basin have adversely affected natural gas prices[196]. - Declines in oil and natural gas prices can materially adversely affect the company's financial condition and liquidity[198]. - Improvements in oil and gas prices can have a favorable impact on the company's financial condition and results of operations[199]. Capital Expenditures - The company did not incur any material capital expenditures for remediation or pollution control activities for the year ended March 31, 2020[40]. Drilling Activities - The company has 13 drilled but uncompleted wells in the Delaware Basin with an aggregate drilling cost of approximately $200,000 and anticipated completion costs of approximately $300,000[25].

Financial Performance - For the first nine months of fiscal 2020, cash flow from operations was $543,584, a 34% decrease compared to the same period in fiscal 2019, primarily due to a 43% decrease in natural gas prices [58]. - Revenue from oil and gas sales for the third quarter of fiscal 2020 was $766,223, a 20% increase from $640,143 for the same period in fiscal 2019, driven by increased production volumes and oil prices [71]. - For the nine months ended December 31, 2019, revenue from oil and gas sales was $2,083,667, a 0.3% increase from $2,076,742 for the same period in fiscal 2019 [78]. - Production costs for the third quarter of fiscal 2020 were $249,921, an 18% increase from $211,788 for the same period in fiscal 2019 [72]. - General and administrative expenses for the nine months ended December 31, 2019, were $805,701, a 13% increase from $710,194 for the same period in fiscal 2018 [81]. - Interest expense for the nine months ended December 31, 2019, was $25,054, a 37% increase from $18,318 for the same period in fiscal 2018 [82]. - The average price per barrel of oil for the nine months ended December 31, 2019, was $54.73, a 2.3% decrease from $56.04 for the same period in fiscal 2018 [79]. - As of December 31, 2019, the company had working capital of $324,391, a decrease of $71,504 compared to $395,895 at March 31, 2019 [59]. Operational Plans - The company plans to participate in the drilling and completion of approximately 50 horizontal wells at an estimated aggregate cost of $1,500,000 for the fiscal year ending March 31, 2020 [60]. Market Risks - Oil and natural gas prices are highly volatile, significantly impacting the company's financial condition and operations [86]. - Price fluctuations are influenced by global demand, supply levels, production quotas, weather conditions, and political and economic factors in oil-producing countries [88]. - Declines in oil and natural gas prices can adversely affect financial condition, liquidity, and cash flow available for capital expenditures [89]. - A noncash write-down of oil and gas properties may be required under full cost accounting rules if prices decline significantly [89]. - An increase or decrease of $10 per barrel in average oil price could change pretax income or loss by $322,060 for the first nine months of fiscal 2020 [90]. - An increase or decrease of $1 per mcf in average gas price could change pretax income or loss by $221,116 for the first nine months of fiscal 2020 [90]. Credit and Debt - The largest credit risk associated with any single purchaser was $220,707, representing 56% of total oil and gas receivables as of December 31, 2019 [85]. - The company has no off-balance sheet debt or unrecorded obligations as of December 31, 2019 [68]. Infrastructure Developments - A new 42-inch natural gas pipeline began operations in September 2019, capable of transporting 2 Bcf per day to the Gulf Coast, alleviating previous capacity constraints [87].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 OR [ ] 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 ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited consolidated financial statements for the three months ended June 30, 2019, detail the company's financial position, operational results, equity changes, and cash flows [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to $9.71 million while total liabilities rose to $1.33 million, driven by new long-term debt and operating lease liabilities Consolidated Balance Sheet Highlights (in USD) | Account | June 30, 2019 (Unaudited) | March 31, 2019 | | :--- | :--- | :--- | | **Total Current Assets** | $560,245 | $562,008 | | **Property and Equipment, net** | $8,896,936 | $8,765,269 | | **Total Assets** | **$9,713,029** | **$9,449,684** | | **Total Current Liabilities** | $217,897 | $166,113 | | **Total Long-term Liabilities** | $1,111,656 | $854,034 | | **Total Liabilities** | **$1,329,553** | **$1,020,147** | | **Total Stockholders' Equity** | $8,383,476 | $8,429,537 | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) The company reported a net loss of $54,186 for the quarter, a significant downturn from a net income of $14,420 in the prior-year period due to lower revenues and higher expenses Quarterly Statement of Operations (in USD) | Metric | Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | | :--- | :--- | :--- | | **Total Operating Revenues** | $699,591 | $749,011 | | Oil Sales | $588,436 | $570,063 | | Natural Gas Sales | $103,258 | $165,290 | | **Total Operating Expenses** | $747,441 | $727,683 | | **Operating (Loss) Income** | ($47,850) | $21,328 | | **Net (Loss) Income** | **($54,186)** | **$14,420** | | **Basic (Loss) Income per Share** | **($0.03)** | **$0.01** | [Consolidated Statement of Changes in Stockholders' Equity](index=5&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Stockholders%27%20Equity) Total stockholders' equity decreased to $8.38 million from $8.43 million, primarily due to the quarterly net loss Changes in Stockholders' Equity (Q1 FY2020) | Description | Amount (in USD) | | :--- | :--- | | Balance at April 1, 2019 | $8,429,537 | | Net loss | ($54,186) | | Stock based compensation | $8,125 | | **Balance at June 30, 2019** | **$8,383,476** | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The company generated $185,956 in operating cash flow, which was offset by investing activities, resulting in a net cash increase of $22,109 Quarterly Cash Flow Summary (in USD) | Cash Flow Activity | Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $185,956 | $154,501 | | Net Cash used in Investing Activities | ($388,847) | ($12,019) | | Net Cash from (used in) Financing Activities | $225,000 | ($200,000) | | **Net Increase (Decrease) in Cash** | **$22,109** | **($57,518)** | | **Cash at End of Period** | **$150,361** | **$435,092** | [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Key disclosures include the adoption of a new lease accounting standard, details of a $1 million credit facility, and the company's focus on oil and gas production in West Texas - The company is engaged in the exploration, development, and production of **natural gas and crude oil**, with interests centered in West Texas and Southeastern New Mexico[19](index=19&type=chunk) - On April 1, 2019, the company adopted the new lease accounting standard, Topic 842, resulting in the recognition of a **right-of-use asset and lease liability of $141,385** on the balance sheet[24](index=24&type=chunk) - The company has a **$1,000,000 credit facility** with West Texas National Bank, with **$225,000 outstanding** as of June 30, 2019, maturing on December 28, 2021[27](index=27&type=chunk)[33](index=33&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=11&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the quarterly net loss to lower gas prices and higher expenses, while outlining plans to drill 50 horizontal wells for approximately $1.4 million - The company plans to participate in the drilling and completion of approximately **50 horizontal wells** at an estimated aggregate cost of approximately **$1,400,000** for the fiscal year ending March 31, 2020[58](index=58&type=chunk) - In April 2019, the company committed to a **$250,000 investment** in a limited liability company purchasing mineral interests in the Utica and Marcellus areas of Ohio, with **$75,000 funded** as of June 30, 2019[61](index=61&type=chunk) Q1 FY2020 vs Q1 FY2019 Performance | Metric | Q1 FY2020 | Q1 FY2019 | % Change | | :--- | :--- | :--- | :--- | | **Oil & Gas Sales** | $691,694 | $735,353 | -6% | | Average Oil Price (per bbl) | $55.47 | $60.73 | -8.7% | | Average Gas Price (per mcf) | $1.44 | $2.25 | -36.0% | | **Production Costs** | $219,395 | $258,935 | -15% | | **G&A Expenses** | $311,061 | $249,038 | +25% | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=13&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks include commodity price volatility, interest rate fluctuations, and significant credit concentration with a single purchaser - The most significant market risk is **energy price volatility**, where a **$10/bbl change in oil price** would impact quarterly pretax income by **$106,090**, and a **$1/mcf change in gas price** would impact it by **$71,847**[78](index=78&type=chunk) - As of June 30, 2019, the company's largest credit risk was with a single purchaser representing **$159,321, or 43% of total oil and gas receivables**[74](index=74&type=chunk) - The company has interest rate risk on its **$225,000 outstanding loan balance**, where a **one percentage point change** in the interest rate would alter annual pretax income by **$2,250**[72](index=72&type=chunk) [Item 4. Controls and Procedures](index=14&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2019, with no material changes to internal controls during the quarter - The principal executive officer and principal financial officer concluded that as of June 30, 2019, the company's **disclosure controls and procedures were effective**[79](index=79&type=chunk) - **No material changes** to internal control over financial reporting occurred during the quarter ended June 30, 2019[80](index=80&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=15&type=section&id=Item%201.%20Legal%20Proceedings) The company is not aware of any material legal or governmental proceedings - The company is not aware of any **significant legal proceedings** arising out of its operations[81](index=81&type=chunk) [Item 1A. Risk Factors](index=15&type=section&id=Item%201A.%20Risk%20Factors) No material changes were reported to the risk factors disclosed in the 2019 Annual Report on Form 10-K - **No material changes** have occurred to the risk factors disclosed in the 2019 Annual Report on Form 10-K[82](index=82&type=chunk) [Other Items (Items 2, 3, 4, 5, 6)](index=15&type=section&id=Other%20Items) The company reports no unregistered equity sales, senior security defaults, or mine safety issues, and lists required CEO and CFO certifications as exhibits - The company reported **no unregistered sales of equity securities, defaults upon senior securities, mine safety disclosures, or other information** during the quarter[83](index=83&type=chunk)[84](index=84&type=chunk) - The report includes **CEO and CFO certifications** as exhibits (31.1, 31.2, 32.1)[84](index=84&type=chunk)

Oil Reserves and Production - As of March 31, 2019, oil constituted approximately 54% of total proved reserves and approximately 72% of revenues for fiscal 2019[21] - The Permian Basin accounts for 70% of discounted future net cash flows from proved reserves and 78% of net revenues[22] - Delaware Basin properties accounted for 45% of gross revenues and 56% of net revenues for fiscal 2019[23] - Midland Basin properties accounted for 20% of gross revenues and 25% of net revenues for fiscal 2019[24] - Oil production for fiscal 2019 was 35,359 barrels, an increase from 34,743 barrels in 2018[28] - Approximately 10% of discounted future net cash flows from Delaware Basin properties are attributable to proven undeveloped reserves[23] Customer and Revenue Concentration - Major customer Company A accounted for 42% of revenues in fiscal 2019[33] - The largest credit risk associated with any single purchaser was $138,508, representing 40% of total oil and gas receivables as of March 31, 2019[183] Financial Condition and Market Risks - The company's financial condition and results are highly dependent on the prevailing market prices of oil and natural gas, which are historically volatile[184] - The primary market risk for the company includes fluctuations in commodity prices and interest rates[181] - Declines in oil and natural gas prices can materially adversely affect the company's financial condition, liquidity, and ability to obtain financing[187] - An increase or decrease of $5 per barrel in average oil price for fiscal 2019 would have changed oil and gas revenue by $176,785[188] - A $1 per mcf change in average gas price for fiscal 2019 would have resulted in a revenue change of $295,133[188] Operational Aspects - The company owns partial interests in approximately 6,100 producing wells across multiple states[27] - The company did not incur any material capital expenditures for remediation or pollution control activities for the year ended March 31, 2019[38] - As of March 31, 2019, the company had two full-time and three part-time employees[50] Pipeline and Pricing Influences - Temporary pipeline capacity constraints in the Permian Basin have adversely affected prices for crude oil and natural gas[185] - Price fluctuations are influenced by global demand, supply levels, production quotas, weather conditions, and political and economic conditions in oil-producing countries[186] Debt and Credit Status - As of March 31, 2019, the company had no outstanding loan balance on its credit agreement[182]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2018 OR [ ] 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 o ...