Mexco Energy (MXC) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 net income fell to $291,039 from $465,614 YoY, with diluted EPS of $0.14; lower gas revenue and higher operating expenses drove the decline.

• Operating revenue was $1,727,835, down 1% YoY; higher oil prices partly offset lower natural gas prices and production.

Financial highlights

• Oil and gas sales were $1.688M, down 2% from $1.715M; oil contributed 87% of operating revenue.

• Operating income was $375,962 vs. $564,501 YoY; basic and diluted EPS were $0.14 vs. $0.22 and $0.21, respectively.

• Production expense rose 25% to $437,420; DD&A increased 11% to $539,697 and G&A rose 8% to $367,045.

• Realized oil price rose 9.1% to $79.87/bbl, while realized gas price fell 35.6% to $1.30/Mcf; oil and gas volumes declined 3.2% and 3.7%.

Outlook and guidance

• FY2025 plans include drilling 30 horizontal wells—26 in New Mexico’s Delaware Basin and four in Reagan County, Texas—and completing 19 wells, at an estimated aggregate cost of ~$2.2M.

• ~$320,000 of the estimated FY2025 drilling and completion program had been expended by August 8, 2024; other prospects for participation were under evaluation.

• Funding may come from cash and operating cash flow, with credit-facility borrowings or non-core property sales as potential sources for the remainder.