Mexco Energy (US:MXC)2026-02-10 21:49Financial Performance - For the nine months ended December 31, 2025, net cash provided by operating activities was $2,930,832, a decrease of $10,283 compared to $2,941,115 for the same period in 2024[62]. - Revenue from oil and gas sales for the third quarter of fiscal 2026 was $1,301,794, a 29% decrease from $1,828,404 for the same period of fiscal 2025[86]. - Oil revenue decreased to $1,098,779 in 2025 from $1,563,663 in 2024, a decline of 29.7%[87]. - Gas revenue decreased to $203,015 in 2025 from $264,741 in 2024, a decline of 23.3%[87]. - Net income for the nine months ended December 31, 2025, was $615,702, down from $1,077,370 in 2024[93]. - Other revenues increased by 61% to $251,712 for the nine months ended December 31, 2025, from $156,014 in 2024[94]. - Interest income on corporate funds increased to $58,610 for the nine months ended December 31, 2025, from $50,891 in 2024[95]. - The effective tax rate for the nine months ended December 31, 2025, was 27%, compared to 16% in 2024[99]. Cash Flow Activities - Cash used in investing activities was $2,212,547 for the nine months ended December 31, 2025, down from $3,670,019 in the same period of 2024, reflecting a decrease of $1,457,472[64]. - Cash used in financing activities was $204,600 for the nine months ended December 31, 2025, compared to $834,575 for the same period in 2024, a decrease of $629,975[65]. Production and Costs - Initial average production rates for two completed wells in the Bone Spring formation were 1,194 barrels of oil, 2,924 barrels of water, and 1,819,000 cubic feet of gas per day, or 1,497 BOE per day[68]. - Production costs for the nine months ended December 31, 2025, were $1,076,435, an 18% decrease from $1,311,066 in 2024[96]. - Depreciation, depletion, and amortization expense increased to $2,002,182 for the nine months ended December 31, 2025, a 14% increase from $1,760,409 in 2024[97]. Investment and Assets - The company plans to participate in the drilling and completion of fifty horizontal wells and one vertical well at an estimated cost of approximately $1,700,000 for the fiscal year ending March 31, 2026[67]. - The company acquired royalty interests in 14 producing wells operated by Anadarko Petroleum Corporation for a purchase price of $35,300, effective December 1, 2025[78]. - As of December 31, 2025, the company had working capital of $3,186,231, an increase of $716,567 from $2,469,664 at March 31, 2025[66]. - The company made a 2% equity investment commitment of $2,000,000 in a limited liability company, which has returned $476,635 or 21% of the total investment as of December 31, 2025[74]. Pricing Information - The WTI posted price for crude oil on December 31, 2025, was $53.40, while the Henry Hub spot price for natural gas was $4.00 per MMBtu[82]. - Average oil price per barrel decreased to $62.37 in 2025 from $74.50 in 2024, a decline of 16.3%[94]. - Average gas price per mcf increased to $1.76 in 2025 from $1.47 in 2024, an increase of 19.9%[94].