Mexco Energy (MXC) Q1 2027 earnings summary

Executive summary

• Q1 FY2027 net income rose 107% to $501,065 from $241,951, as operating income increased to $567,300 from $274,490.

• Operating revenue rose 13% to $1,983,169; stronger oil pricing more than offset lower oil and gas production and weaker gas prices.

• Operating cash flow was $1,451,247; investing outflows of $2,729,750 for property additions and acquisitions reduced quarter-end cash to $1,292,873.

Financial highlights

• Oil sales increased to $1,811,183 from $1,395,937, while natural gas sales declined to $166,975 from $358,797.

• Operating expenses fell to $1,415,869 from $1,482,450; DD&A declined 10% to $606,521, production expense rose 1.5% to $411,006, and G&A fell 1% to $389,829.

• Basic and diluted EPS were $0.24, versus $0.12; diluted weighted-average shares were 2,079,484 versus 2,073,309.

• Income tax expense was $195,310 versus $103,231; the effective tax rate was 28% versus 30%.

Outlook and guidance

• FY2027 plans include participating in drilling 53 horizontal wells and completing 20 wells drilled in FY2026, for estimated total costs of $1.8 million; $620,000 had been spent to date.

• Of the 53 planned wells, 48 are in New Mexico’s Delaware Basin and the remainder in Reeves County, Texas; additional prospects were under evaluation.

• July drilling and completion of three wells cost ~$70,000; a separate $1 million commitment was made to an LLC acquiring Ohio Utica Shale mineral and royalty interests.