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 ...