MIDLAND, Texas, Aug. 12 /PRNewswire-FirstCall/ -- Mexco Energy Corporation (AMEX:MXC) announced net income of $160,918, or $0.09 per diluted share, for the first quarter of fiscal 2006, up 57% from net income of $102,702, or $0.06 per diluted share in the first quarter of fiscal 2005. Operating revenues rose to $803,092 in the quarter, up 19% from $677,003 in the first quarter of fiscal 2005. The average sales price received of $6.62 Mcfe was up 26% from the $5.25 per Mcfe received in the first quarter of fiscal 2005.
Total operating expenses were $516,312 for the first quarter of fiscal 2006, compared to $515,749 for the first quarter of fiscal 2005. Included in operating expenses was a 19% increase in general and administrative expense. The increase in general and administrative expense was primarily attributable to consulting costs directly associated with the Company's Russian Venture.
The Company continues to focus its efforts on the acquisition of royalties in areas with significant development potential. For the three months ending June 30, 2005 revenues from oil and gas royalty interests accounted for approximately 26% of the Company's revenues, compared to approximately 23% for the first quarter of fiscal 2005.
The Company owns oil and gas properties in ten states, with the majority of its activity centered in West Texas. The Company plans to continue to focus its efforts to increase natural gas reserves, not only through the acquisition of royalties, but through exploration and development as well.
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. Please see the Company's Form 10-K for the fiscal year ended March 31, 2005 for a more complete discussion of such risk factors.
Mexco Energy Corporation and Subsidiaries
CONSOLIDATED BALANCE SHEETS June 30, March 31,
2005 2005
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 89,024 $ 85,209
Accounts receivable:
Oil and gas sales 419,410 418,348
Trade 7,286 23,258
Related parties 1,275 2,103
Prepaid costs and expenses 35,215 7,362
Total current assets 552,210 536,280 Investment in GazTex, LLC 282,126 282,126 Property and equipment, at cost
Oil and gas properties, using the
full cost method ($965,018 and
$983,680 excluded from amortization
as of June 30, 2005 and 2004,
respectively) 18,547,694 18,376,974
Other 36,855 36,855
18,584,549 18,413,829
Less accumulated depreciation,
depletion, and amortization 10,067,765 9,929,086
Property and equipment, net 8,516,784 8,484,743
$ 9,351,120 $ 9,303,149 LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable - trade $ 121,535 $ 111,675
Income tax payable 74,278 48,127
Current portion of long-term debt 1,815,000 ---
Total current liabilities 2,010,813 159,802 Long-term debt --- 1,990,000
Asset retirement obligation 364,884 374,506
Deferred income tax liability 740,713 715,284
Minority interest 25,362 25,362
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;
1,766,566 shares issued 883,283 883,283
Additional paid-in capital 3,836,827 3,826,592
Retained earnings 1,634,813 1,473,895
Treasury stock, at cost (33,525 shares) (145,575) (145,575)
Total stockholders' equity 6,209,348 6,038,195
$ 9,351,120 $ 9,303,149 Mexco Energy Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended June 30,
(Unaudited) 2005 2004
Operating revenues:
Oil and gas $ 802,720 $ 674,995
Other 372 2,008
Total operating revenues 803,092 677,003 Operating expenses:
Production 176,445 191,738
Accretion of asset retirement obligation 5,785 6,820
Depreciation, depletion, and amortization 138,679 152,772
General and administrative 195,403 164,419
Total operating expenses 516,312 515,749 Operating profit 286,780 161,254 Other income (expense):
Interest income 167 53
Interest expense (29,982) (16,843) Net other expense (29,815) (16,790) Minority interest in loss of subsidiary 3,824 --- Earnings before income taxes 260,789 144,464 Income tax expense:
Current 74,442 43,425
Deferred 25,429 (1,663)
99,871 41,762 Net income $ 160,918 $ 102,702 Net income per common share: Basic: $ 0.09 $ 0.06
Diluted: $ 0.09 $ 0.06
DATASOURCE: Mexco Energy Corporation CONTACT: Nicholas C. Taylor, CEO, or Tammy L. McComic, CFO, both of Mexco Energy Corporation, +1-432-682-1119
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