EX-99.1 2 fp0010828_ex991.htm
 
EXHIBIT 99.1

June 25, 2014

FOR IMMEDIATE RELEASE

MEXCO ENERGY CORPORATION REPORTS FINANCIAL RESULTS FOR FISCAL 2014 AND ANNOUNCES APPOINTMENT OF NEW DIRECTOR

MIDLAND, TX – 06/25/14 – Mexco Energy Corporation (NYSE Market: MXC) reported results on its Annual Report on Form 10-K to the Securities and Exchange Commission (“SEC”) for the fiscal year ended March 31, 2014.

The Company reported net income of $301,113, or $.15 per diluted share, for fiscal year 2014, an increase from a net loss of $176,374, or ($0.09) per diluted share, for fiscal 2013.

Operating revenues in fiscal 2014 were $4,041,941, an increase of 31% when compared to fiscal 2013 operating revenues of $3,096,415. This is the result of a 17% increase in oil production, a 13% increase in oil prices and a 41% increase in natural gas prices partially offset by a 10% decrease in natural gas production. The average sales price received was $7.61 per Mcfe compared to $5.67 per Mcfe received in fiscal 2013, a 34% increase.

The Company reported operating profit of $88,425 for the quarter ending March 31, 2014, the Company’s fourth quarter of fiscal 2014, a 40% increase from the comparable quarter of fiscal 2013. Oil and gas revenues in the fourth quarter were $953,291 compared to $924,098 for the same quarter in fiscal 2013, an increase of 3%. This is primarily the result of increased oil and natural gas prices and revenue generated from the multiple acquisitions effective March 1, 2014.

The Company’s estimated present value of proved reserves at March 31, 2014 was approximately $25 million based on estimated future net revenues discounted at 10% per annum, pricing and other assumptions set forth in “Item 2 – Properties” of the Company’s Form 10-K, an increase of 39% as compared to the same at March 31, 2013. The Company’s total estimated proved reserves at March 31, 2014 were 502,000 barrels of oil and natural gas liquids, an increase of 37% over the prior fiscal year, and 6.259 billion cubic feet of natural gas, a decrease of 20% over the prior fiscal year. For fiscal 2014, natural gas constituted approximately 68% of the Company’s total proved reserves and approximately 35% of the Company’s revenues.

Tammy McComic, President of the Company, stated, “The Company’s prospects for current and future development of its properties in the Permian Basin of West Texas and New Mexico by horizontal drilling and multi-stage fracturing are extensive.”

Also, the Company today reported the Board of Directors (the “Board”) appointed Michael J. Banschbach to the Company’s Board of Directors effective July 1, 2014. Mr. Banschbach is expected to stand for election at the 2014 Annual Meeting of Shareholders on September 9, 2014 for a term of one year.

Mr. Banschbach graduated from the Colorado School of Mines in 1980 with a BS degree in Chemical Engineering. Thereafter, Mr. Banschbach served with Atlantic Richfield (ARCO) for twenty years, primarily in the gas processing midstream sector, as both a petroleum engineer and as a commercial representative. From 2001 until the present time, he has represented numerous independent oil and gas producing companies in negotiations with midstream companies for the connection of production, transmission and sales for oil and gas wells.

Mexco Energy Corporation, a Colorado corporation, is an independent oil and gas company located in Midland, Texas engaged in the acquisition, exploration and development of oil and gas properties. For more information on Mexco Energy Corporation, go to www.mexcoenergy.com.

In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, Mexco Energy Corporation cautions that statements in this press release which are forward-looking and which provide other than historical information involve risks and uncertainties that may impact the Company's actual results of operations. These risks include, but are not limited to, production variance from expectations, volatility of oil and gas prices, the need to develop and replace reserves, exploration risks, uncertainties about estimates of reserves, competition, government regulation, and mechanical and other inherit risks associated with oil and gas production. A discussion of these and other factors, including risks and uncertainties, is set forth in the Company's Form 10-K for the fiscal year ended March 31, 2014. Mexco Energy Corporation disclaims any intention or obligation to revise any forward-looking statements.

For additional information, please contact: Nicholas C. Taylor, Chairman and Chief Executive Officer or Tammy L. McComic, President and Chief Financial Officer, both of Mexco Energy Corporation, (432) 682-1119.
Mexco Energy Corporation and Subsidiaries
  
CONSOLIDATED BALANCE SHEETS
  
 
  
   
 
 
  
March 31,
    
March 31,
  
 
  
2014
    
2013
  
ASSETS
  
   
 
Current assets
  
   
 
Cash and cash equivalents
  
$
156,082
    
$
166,406
  
Accounts receivable:
                
Oil and gas sales
    
628,098
      
538,971
  
Trade
    
18,144
      
16,370
  
Prepaid costs and expenses
    
28,804
      
19,281
  
Total current assets
    
831,128
      
741,028
  
 
                
Property and equipment, at cost
                
Oil and gas properties, using the full cost method
    
35,460,741
      
34,309,328
  
 Other
    
94,356
      
92,326
  
Accumulated depreciation, depletion and amortization
    
(18,475,174
)
    
(17,323,692
)
Property and equipment, net
    
17,079,923
      
17,077,962
  
 
                
Other noncurrent assets
    
7,239
      
116,454
  
Total assets
  
$
17,918,290
    
$
17,935,444
  
 
                
LIABILITIES AND STOCKHOLDERS' EQUITY
                
Current liabilities
                
Accounts payable and accrued expenses
  
$
257,431
    
$
431,848
  
Income tax payable
    
6,500
      
-
  
Derivative instruments
    
44,981
      
-
  
Total current liabilities
    
308,912
      
431,848
  
 
                
Long-term debt
    
2,425,000
      
2,950,000
  
Asset retirement obligations
    
926,577
      
763,412
  
Deferred income tax liabilities
    
858,449
      
853,199
  
Total liabilities
    
4,518,938
      
4,998,459
  
 
                
Commitments and contingencies
                
 
                
Stockholders' equity
                
Preferred stock - $1.00 par value;
                
10,000,000 shares authorized; none outstanding
    
-
      
-
  
Common stock - $0.50 par value; 40,000,000 shares authorized;
                
2,104,266 and 2,102,866 shares issued;
2,038,266 and 2,036,866 shares outstanding as of
                
 March 31, 2014 and 2013, respectively
    
1,052,133
      
1,051,433
  
Additional paid-in capital
    
6,921,645
      
6,761,091
  
Retained earnings
    
5,766,566
      
5,465,453
  
Treasury stock, at cost (66,000 shares)
    
(340,992
)
    
(340,992
)
Total stockholders' equity
    
13,399,352
      
12,936,985
  
 
  
$
17,918,290
    
$
17,935,444
  

Mexco Energy Corporation and Subsidiaries
  
CONSOLIDATED STATEMENTS OF OPERATIONS
  
Year ended March 31,
  
 
  
   
   
 
 
  
2014
    
2013
    
2012
  
Operating revenues:
  
   
   
 
Oil and gas
  
$
3,994,295
    
$
3,063,707
    
$
3,223,659
  
Other
    
47,646
      
32,708
      
16,380
  
Total operating revenues
    
4,041,941
      
3,096,415
      
3,240,039
  
 
                        
Operating expenses:
                        
Production
    
1,231,814
      
1,082,043
      
926,215
  
Accretion of asset retirement obligation
    
44,366
      
39,376
      
36,251
  
Depreciation, depletion and amortization
    
1,151,482
      
1,100,425
      
996,205
  
General and administrative
    
1,136,939
      
1,028,846
      
950,690
  
Total operating expenses
    
3,564,601
      
3,250,690
      
2,909,361
  
 
                        
Operating income (loss)
    
477,340
      
(154,275
)
    
330,678
  
 
                        
Other income (expenses):
                        
Interest income
    
172
      
229
      
195
  
Interest expense
    
(65,387
)
    
(53,832
)
    
(28,840
)
Loss on derivative instruments
    
(99,262
)
    
-
      
-
  
Net other expense
    
(164,477
)
    
(53,603
)
    
(28,645
)
 
                        
Earnings (loss) before provision for income taxes
    
312,863
      
(207,878
)
    
302,033
  
 
                        
Income tax expense (benefit):
                        
Current
    
6,500
      
-
      
-
  
Deferred
    
5,250
      
(31,504
)
    
(27,960
)
 
    
11,750
      
(31,504
)
    
(27,960
)
 
                        
Net income (loss)
  
$
301,113
    
$
(176,374
)
  
$
329,993
  
 
                        
 
                        
Income (loss) per common share:
                        
Basic:
  
$
0.15
    
$
(0.09
)
  
$
0.16
  
Diluted:
  
$
0.15
    
$
(0.09
)
  
$
0.16
  
 
                        
Weighted average common shares outstanding:
                        
Basic:
    
2,036,950
      
2,036,959
      
2,028,014
  
Diluted:
    
2,042,184
      
2,036,959
      
2,036,241