Mexco Energy (MXC) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 net income rose to $317,198 from $269,433 YoY; first-half net income was $608,237, down from $735,047.

• First-half operating revenue increased 10% YoY to $3,477,062, while diluted EPS was $0.29.

• Strategy focuses on acquiring and developing low-cost, long-lived reserves, particularly royalty and working interests in non-operated properties.

Financial highlights

• Q2 operating revenue was $1,749,227 vs. $1.407M YoY; operating income was $409,196 vs. $318,673, and net income was $317,198 vs. $269,433.

• First-half operating revenue was $3,477,062 vs. $3.155M YoY; operating income was $785,158 vs. $883,174, and net income was $608,237 vs. $735,047.

• First-half oil and gas sales rose 9% to $3.384M; total expenses increased to $2.692M from $2.272M, led by higher DD&A and production costs.

• Cash and equivalents were $1.578M at Sept. 30, 2024, down from $2.473M at Mar. 31; working capital decreased $1.285M to $1.974M.

Outlook and guidance

• FY2025 plans include drilling 30 horizontal wells and completing 19 at an estimated aggregate cost of ~$2.3M; ~$890,000 had been spent by the reporting date.

• Planned wells include 26 in New Mexico’s Delaware Basin and 4 in Reagan County, Texas; additional prospects are under evaluation.

• Project spending is expected to come primarily from cash balances and operating cash flow, with credit-facility borrowings or non-core asset sales as alternatives.

• October drilling, completion and royalty acquisitions, plus a November agreement to acquire Colorado royalty interests for $450,000, expanded activity beyond the reporting period.