On November 8, 2023, Mexco Energy Corp (MXC, Financial) released its financial results for the first half of fiscal 2024, revealing a significant decrease in net income and operating revenues. The company reported a net income of $735,047, or $0.34 per diluted share, marking a 71% decline compared to the same period in the previous fiscal year. Operating revenues also saw a downturn, with a 34% decrease to $3,155,029.
Income Statement Highlights
The decrease in operating revenues was attributed to a 26% drop in the average sales price of oil and a 68% decrease in the average sales price of natural gas. However, this was partially offset by a 7% increase in barrels of oil equivalent (BOE) production volumes. For the second quarter of fiscal 2024, Mexco Energy Corp (MXC, Financial) reported a net income of $269,433, or $0.12 per diluted share, compared to $1,211,716, or $0.55 per diluted share for the same quarter in the previous year.
Operational Developments
Mexco Energy Corp (MXC, Financial) is actively participating in the drilling and completion of approximately 40 horizontal wells with an estimated aggregate cost of $1,700,000 for the fiscal year ending March 31, 2024. To date, the company has drilled 26 of these wells in the Delaware Basin, located in Lea County, New Mexico, with costs amounting to approximately $1,350,000. Additionally, the company has spent around $450,000 on the completion of 21 drilled but uncompleted horizontal wells from fiscal 2023. Fourteen of these wells began producing in October 2023, with promising initial production rates.
Financial Position and Outlook
The President and Chief Financial Officer of Mexco Energy Corp (MXC, Financial) expressed optimism about the company's financial health, stating,
We currently have $2.5 million cash on hand, no bank debt and are finding attractive opportunities."This strong cash position and lack of debt provide the company with a solid foundation to pursue further growth and development opportunities.
Mexco Energy Corp (MXC, Financial), headquartered in Midland, Texas, continues to focus on the acquisition, exploration, and development of oil and gas properties, primarily in the Permian Basin. For more information on the company's activities and financial performance, investors and interested parties are encouraged to visit www.mexcoenergy.com.
While the company has faced challenges with fluctuating oil and gas prices and the need to develop and replace reserves, it remains committed to navigating these industry risks and uncertainties as outlined in its Form 10-K for the fiscal year ended March 31, 2023. Mexco Energy Corp (MXC, Financial) continues to focus on operational efficiency and strategic growth as it moves forward in the dynamic energy sector.
Explore the complete 8-K earnings release (here) from Mexco Energy Corp for further details.
