Mexco Energy (US:MXC)2025-11-12 21:44Financial 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].