UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934.

 

Date of Report: June 28, 2017
(Date of earliest event reported)

 

Mexco Energy Corporation

(Exact name of registrant as specified in its charter)

 

CO

(State or other jurisdiction

of incorporation)

 

0-6694

(Commission

File Number)

 

84-0627918

(IRS Employer

Identification Number)

 

 

214 W. Texas Avenue,

Suite 1101

Midland, TX

(Address of principal executive offices)

79701

(Zip Code)

 

Registrant’s telephone number, including area code: 432-682-1119

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

[  ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
[  ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
[  ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.13e-4(c))
   
[  ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

     
 

 

Item 8.01   Other Events

 

On June 28, 2017, Mexco Energy Corporation issued a news release to announce its financiaresults for the year ended March 31, 2017 and further development of properties.

 

Copy of the news release is filed as Exhibit 99.1.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits

 

  Exhibit Number   Document
       
  99.1   News release dated June 28, 2017.

 

     
 

 

SIGNATURES

 

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  MEXCO ENERGY CORPORATION
   
Dated: June 28, 2017 By: /s/ Tammy McComic
  Tammy McComic
  President and Chief Financial Officer

 

     
 

 

EXHIBIT 99.1

 

June 28, 2017

 

FOR IMMEDIATE RELEASE

 

MEXCO ENERGY CORPORATION REPORTS FINANCIAL RESULTS FOR FISCAL 2017 AND ANNOUNCES FURTHER DEVELOPMENT OF PROPERTIES

 

MIDLAND, TX – 06/28/2017 – 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, 2017.

 

The Company reported a net loss of $694,553 or ($.34) per diluted share, for fiscal year 2017, a decrease from a net loss of $3,979,685, or ($1.95) per diluted share, for fiscal 2016.

 

Operating revenues in fiscal 2017 were $2,525,363, an increase of 4% when compared to fiscal 2016 operating revenues of $2,421,792. This is the result of a 6.5% increase in oil prices and a 20% increase in gas prices offset by an 11% decrease in oil production and a 13% decrease in natural gas production.

 

The Company reported an operating loss of $3,454 for the quarter ending March 31, 2017, the Company’s fourth quarter of fiscal 2017, a decrease in loss from the comparable quarter of fiscal 2016. Operating revenues in the fourth quarter were $684,204 compared to $445,484 for the same quarter in fiscal 2016, an increase of 54%. This is primarily the result of increased oil and natural gas prices.

 

The Company’s estimated present value of proved reserves at March 31, 2017 was approximately $25 million based on estimated future net revenues discounted at 10% per annum, pricing and other assumptions set forth in “Item2 – Properties” of the Company’s Form 10-K, an increase of 57% as compared to the same at March 31, 2016. The Company’s estimated proved oil reserves at March 31, 2017 increased 96% to 2.124 million barrels of oil and natural gas liquids, and natural gas reserves increased 15% to 6.681 billion cubic feet over the prior fiscal year. For fiscal 2017, oil constituted approximately 66% of the Company’s total proved reserves and approximately 65% of the Company’s revenues.

 

After fiscal 2017, Mexco sold certain non-core properties resulting in a reduction in bank indebtedness to $2,475,500 as of June 27, 2017.

 

In addition to an indeterminate number of wells to be drilled by other operators on Mexco’s royalty interests, the Company currently expects to participate in the drilling and completion of approximately 27 horizontal wells, at an estimated aggregate cost of approximately $1,100,000 for the fiscal year ended March 31, 2018, of which approximately $200,000 has been expended to date. The operators of these wells include Apache Corporation, Bold Energy III, LLC, Concho Resources, Inc., Mewbourne Oil Company, XTO Energy, Inc. and others.

 

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 primarily in the Permian Basin. 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, 2017. 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, 2017     March 31, 2016  
ASSETS                
Current assets                
Cash and cash equivalents   $ 73,451     $ 34,013  
Accounts receivable:                
Oil and gas sales     381,414       248,145  
Trade     13,744       29,880  
Prepaid costs and expenses     36,325       43,284  
Total current assets     504,934       355,322  
                 
Property and equipment, at cost                
Oil and gas properties, using the full cost method     37,640,096       40,365,197  
Other     107,484       107,484  
Accumulated depreciation, depletion and amortization     (25,572,606 )     (24,395,184 )
Property and equipment, net     12,174,974       16,077,497  
                 
Other noncurrent assets     28,157       34,441  
Total assets   $ 12,708,065     $ 16,467,260  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY                
Current liabilities                
Accounts payable and accrued expenses   $ 137,259     $ 332,172  
                 
Long-term debt     2,900,000       5,580,000  
Asset retirement obligations     968,484       1,211,077  
Total liabilities     4,005,743       7,123,249  
                 
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 shares issued and 2,037,266 shares outstanding as of March 31, 2017 and 2016, respectively     1,052,133       1,052,133  
Additional paid-in capital     7,244,848       7,191,984  
Retained earnings     751,342       1,445,895  
Treasury stock, at cost (67,000 shares)     (346,001 )     (346,001 )
Total stockholders’ equity     8,702,322       9,344,011  
    $ 12,708,065     $ 16,467,260  

 

     
 

 

Mexco Energy Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
Year ended March 31,

 

    2017     2016     2015  
Operating revenues:                        
Oil and gas   $ 2,337,222     $ 2,383,950     $ 3,336,826  
Other     188,141       37,842       53,179  
Total operating revenues     2,525,363       2,421,792       3,390,005  
                         
Operating expenses:                        
Production     878,458       1,144,061       1,300,820  
Accretion of asset retirement obligation     35,743       35,155       27,932  
Impairment of long-lived assets     -       2,984,410       -  
Depreciation, depletion and amortization     1,177,422       1,572,738       1,362,862  
General and administrative     976,392       1,155,183       1,239,750  
Total operating expenses     3,068,015       6,891,547       3,931,364  
                         
Operating loss     (542,652 )     (4,469,755 )     (541,359 )
                         
Other income (expenses):                        
Interest income     225       575       45  
Interest expense     (152,126 )     (171,375 )     (99,240 )
Gain on derivative instruments     -       -       102,069  
Net other (expense) income     (151,901 )     (170,800 )     2,874  
                         
Loss before provision for income taxes     (694,553 )     (4,640,555 )     (538,485 )
                         
Income tax benefit:                        
Deferred     -       (660,870 )     (197,499 )
                         
Net loss   $ (694,553 )   $ (3,979,685 )   $ (340,986 )
                         
Loss per common share:                        
Basic:   $ (0.34 )   $ (1.95 )   $ (0.17 )
Diluted:   $ (0.34 )   $ (1.95 )   $ (0.17 )
                         
Weighted average common shares outstanding:                        
Basic:     2,037,266       2,037,266       2,038,250  
Diluted:     2,037,266       2,037,266       2,038,250