Mexco Energy (MXC) - 2023 Q3 - Quarterly Report

Financial Performance - For the quarter ended December 31, 2022, net income was $1,244,785, a 65% increase from $753,302 for the same quarter in 2021[83]. - Net income for the nine months ended December 31, 2022, was $3,755,173, a 102% increase from $1,857,136 for the same period in 2021[89]. - Revenue from oil and gas sales for the nine months ended December 31, 2022, was $7,184,025, a 64% increase from $4,370,720 for the same period in 2021[90]. Revenue Breakdown - Revenue from oil and gas sales was $2,486,017 for Q3 fiscal 2023, a 58% increase from $1,573,984 in Q3 fiscal 2022[84]. - Oil revenue increased by 63.1% to $1,750,539 with production volume rising by 50.7% to 21,308 barrels[85]. - Natural gas revenue increased by 46.8% to $735,478, with production volume up 59.5% to 145,980 mcf[85]. - Oil revenue was $4,707,735 for the nine months ended December 31, 2022, a 47.4% increase from $3,193,315 in 2021, with production volume increasing by 9.1%[91]. - Gas revenue was $2,476,290 for the nine months ended December 31, 2022, a 110.3% increase from $1,177,405 in 2021, with production volume increasing by 43.8%[91]. Expenses - General and administrative expenses increased by 20% to $288,536 for Q3 fiscal 2023 compared to $239,767 in Q3 fiscal 2022[87]. - Production costs for the nine months ended December 31, 2022, were $1,308,143, a 45% increase from $903,643 in 2021[91]. - Depreciation, depletion, and amortization expense was $1,268,016 for the nine months ended December 31, 2022, a 56% increase from $812,398 in 2021[92]. - General and administrative expenses were $876,735 for the nine months ended December 31, 2022, a 19% increase from $739,469 in 2021[93]. - Income tax expense for the nine months ended December 31, 2022, was $115,236, a 108% increase from $55,492 in 2021[95]. Cash Flow and Financial Position - Cash flow from operating activities for the nine months ended December 31, 2022, was $4,350,920, an increase of $1,622,334 from $2,728,586 in the same period of 2021[61]. - As of December 31, 2022, cash and cash equivalents were $631,036, following a net cash decrease of $739,730[65]. Investments and Operations - The company plans to participate in the drilling of 50 horizontal wells at an estimated cost of $4,000,000 for fiscal year 2023[66]. - Mexco's working interest in completed wells in the Midland Basin achieved initial production rates of 560 barrels of oil equivalent per day[68]. - The company acquired royalty interests in 22 wells for $939,000 effective April 1, 2022[77]. Risk Factors - The largest credit risk associated with any single purchaser was $1,255,427, representing 61% of total oil and gas receivables as of December 31, 2022[97].