Mexco Energy Net Income Falls 24% to $1.31M as Revenues Drop 8%
MXC•Mexco Energy reported FY2026 net income of $1.31M (or $0.64 per share), down 24%, on operating revenues of $6.56M, an 8% decrease driven by lower oil prices ($64.25/bbl) and volumes. The company spent $1.25M developing 58 wells, has proved reserves valued at $21M PV10 and $1.4M cash with no debt.
1. Fiscal 2026 Results
Net income was $1.31M ($0.64 per share), down 24%, on operating revenues of $6.56M, an 8% decline driven by lower average realized oil price ($64.25/bbl) and reduced oil production, partly offset by higher natural gas prices ($1.86/mcf) and volumes.
2. Well Development and Investments
The company invested $1.25M in developing 57 horizontal and one vertical well, with 20 completions expected in the current year, and spent $150,000 to finish 17 wells drilled previously, while other operators drilled 177 gross wells on Mexco’s royalty interests, generating 49% of operating revenues free of operating costs.
3. Reserves and Financial Position
Proved reserves had an estimated PV10 of $21M, with oil reserves at 659 thousand barrels (down 2%) and natural gas at 4.67 billion cubic feet (up 7%), and the company holds $1.4M cash on hand with no outstanding debt under its bank credit line.
4. Fiscal 2027 Outlook
For the year ending March 31, 2027, Mexco plans to participate in drilling and completing 33 horizontal wells and completing 20 additional wells at an estimated cost of $1.8M, of which $500,000 has already been invested, while evaluating further prospects for participation.
