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 29, 2018

(Date of earliest event reported)

 

Mexco Energy Corporation

(Exact name of registrant as specified in its charter)

 

CO   0-6694  

84-0627918

(State or other jurisdiction of   (Commission   (IRS Employer
incorporation)   File Number)   Identification Number)

 

415 W. Wall

Suite 475

Midland, TX

 

79701

(Address of principal executive offices)   (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 29, 2018, Mexco Energy Corporation issued a news release to announce its financial results for the year ended March 31, 2018 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 29, 2018.

 

 

 
 

 

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 29, 2018 By: /s/ Tammy McComic
    Tammy McComic
    President and Chief Financial Officer

 

 
 

 

EXHIBIT 99.1

 

June 29, 2018

 

FOR IMMEDIATE RELEASE

 

MEXCO ENERGY CORPORATION REPORTS FINANCIAL RESULTS FOR FISCAL 2018 AND ANNOUNCES FURTHER DEVELOPMENT OF PROPERTIES

 

MIDLAND, TX – 06/29/2018 – Mexco Energy Corporation (NYSE American: 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, 2018.

 

The Company reported a net loss of $321,489 or ($0.16) per diluted share, for fiscal year 2018, a decrease from a net loss of $694,553, or ($0.34) per diluted share, for fiscal 2017.

 

Operating revenues in fiscal 2018 were $2,705,235, an increase of 7% when compared to fiscal 2017 operating revenues of $2,525,363. This is the result of a 18% increase in oil prices and a 17% increase in gas prices partially offset by an 11% decrease in gas production.

 

The Company reported a profit of $264,461 for the quarter ending March 31, 2018, the Company’s fourth quarter of fiscal 2018, compared to a loss of $3,454 from the comparable quarter of fiscal 2017. Operating revenues in the fourth quarter were $763,532 compared to $684,204 for the same quarter in fiscal 2017, an increase of 12%. This is primarily the result of increased oil and natural gas prices and a decrease in depreciation, depletion and amortization.

 

The Company’s estimated present value of proved reserves at March 31, 2018 was approximately $22 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, a decrease of 13% as compared to the same at March 31, 2017. The Company’s estimated proved oil reserves at March 31, 2018 decreased 44% to 1.197 million barrels of oil and natural gas liquids, and natural gas reserves decreased 18% to 5.487 billion cubic feet over the prior fiscal year. This reduction in reserves was due to sales of non-core properties and the restructuring of our plans for development of a non-producing leasehold interest in Martin County, Texas. For fiscal 2018, oil constituted approximately 57% of the Company’s total proved reserves and approximately 67% of the Company’s revenues.

 

After fiscal 2018, Mexco reduced its bank indebtedness to $500,000 as of June 30, 2018, resulting in a debt to equity ratio of 6%.

 

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 50 horizontal wells, at an estimated aggregate cost of approximately $1,300,000 for the fiscal year ended March 31, 2019, of which approximately $141,000 has been expended to date. The operators of these wells include Concho Resources, Inc., Marathon Oil Company, 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, 2018. 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, 2018     March 31, 2017  
ASSETS                
Current assets                
Cash and cash equivalents   $ 492,610     $ 73,451  
Accounts receivable:                
Oil and gas sales     395,991       381,414  
Trade     436,249       13,744  
Prepaid costs and expenses     47,583       36,325  
Total current assets     1,372,433       504,934  
                 
Property and equipment, at cost                
Oil and gas properties, using the full cost method     35,224,784       37,640,096  
Other     107,484       107,484  
Accumulated depreciation, depletion and amortization     (26,453,025 )     (25,572,606 )
Property and equipment, net     8,879,243       12,174,974  
                 
Other noncurrent assets     149,278       28,157  
Total assets   $ 10,400,954     $ 12,708,065  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY                
Current liabilities                
Accounts payable and accrued expenses   $ 446,815     $ 137,259  
Total current liabilities     446,815       137,259  
                 
Long-term debt     700,000       2,900,000  
Asset retirement obligations     852,553       968,484  
Total liabilities     1,999,368       4,005,743  
                 
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, 2018 and 2017, respectively     1,052,133       1,052,133  
Additional paid-in capital     7,265,601       7,244,848  
Retained earnings     429,853       751,342  
Treasury stock, at cost (67,000 shares)     (346,001 )     (346,001 )
Total stockholders’ equity     8,401,586       8,702,322  
Total liabilities and stockholders’ equity   $ 10,400,954     $ 12,708,065  

 

 

 

 

Mexco Energy Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS

Years ended March 31,

 

    2018     2017  
Operating revenues:                
Oil and gas   $ 2,650,232     $ 2,337,222  
Other     55,003       188,141  
Total operating revenues     2,705,235       2,525,363  
                 
Operating expenses:                
Production     1,070,447       878,458  
Accretion of asset retirement obligation     31,460       35,743  
Depreciation, depletion and amortization     880,419       1,177,422  
General and administrative     955,147       976,392  
Total operating expenses     2,937,473       3,068,015  
                 
Operating loss     (232,238 )     (542,652 )
                 
Other income (expenses):                
Interest income     286       225  
Interest expense     (89,537 )     (152,126 )
Net other (expense) income     (89,251 )     (151,901 )
                 
Loss before provision for income taxes     (321,489 )     (694,553 )
                 
Income tax     -       -  
                 
Net loss   $ (321,489 )   $ (694,553 )
                 
Loss per common share:                
Basic:   $ (0.16 )   $ (0.34 )
Diluted:   $ (0.16 )   $ (0.34 )
                 
Weighted average common shares outstanding:                
Basic:     2,037,266       2,037,266  
Diluted:     2,037,266       2,037,266