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Mexco Energy Corporation Reports Profitable Earnings

MIDLAND, Texas, Feb. 12 /PRNewswire-FirstCall/ -- Mexco Energy Corporation (Amex: MXC) today reported net income of $167,145, or $0.09 per diluted share, for the quarter ending December 31, 2009, the Company's third quarter of fiscal 2010.  This was a 27% increase from $131,501 for the same quarter of fiscal 2009.  Operating revenues in the third quarter of fiscal 2010 were $865,169, a 7% decrease from $927,644 for the third quarter of fiscal 2009.    

The average sales price for the third quarter of fiscal 2010 was $5.25 per Mcfe, an increase of 1% compared to $5.19 per Mcfe for the third quarter of fiscal 2009.  Oil production increased 8% and gas production decreased 9% during the third quarter of fiscal 2010 as compared to the same period of fiscal 2009 due to a temporary shut-in of a gas property.

For the nine months ended December 31, 2009, the Company reported net income of $257,492, or $0.13 per diluted share, a 78% decrease from $1,181,405 for the same period of fiscal 2009.  Operating revenues were $2,269,640 for the nine month period, a decrease of 46% from $4,208,771 for the same period of fiscal 2009.  The average sales price for the nine months ended December 31, 2009 was $4.48 per Mcfe compared to $8.88 per Mcfe for the same period of fiscal 2009.  Gas production increased 7% and oil production increased 3% during the nine months ended December 31, 2009 as compared to the same period of fiscal 2009.  

Mexco Energy Corporation owns oil and gas properties in ten states, with the majority of its activity centered in West Texas.  The Company continues to focus its efforts on increasing oil and natural gas reserves, through exploration and development as well as acquisition of royalties with significant development potential.

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. These risks include, but are not limited to, production variance from expectations, volatility of oil and gas prices, the need to develop and replace reserves, exploration risks, uncertainties about estimates of reserves, competition, government regulation, and mechanical and other inherit risks associated with oil and gas production.  A discussion of these and other factors, including risks and uncertainties, is set forth in the Company's Form 10-K for the fiscal year ended March 31, 2009.  Mexco Energy Corporation disclaims any intention or obligation to revise any forward-looking statements.

    
    
    
                     Mexco Energy Corporation and Subsidiary
                           CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)
    
                                                 December 31,      March 31,
                                                     2009            2009
                                                  ----------      ----------
    ASSETS
      Current assets
        Cash and cash equivalents                  $167,853        $223,583
        Accounts receivable:
          Oil and gas sales                         463,632         351,040
          Trade                                      66,421         164,834
          Related parties                             4,383           1,687
        Prepaid costs and expenses                   32,414          36,610
                                                     ------          ------
    
            Total current assets                    734,703         777,754
    
      Property and equipment, at cost
        Oil and gas properties, using
        the full cost method                     27,122,035      26,735,778
        Other                                        69,733          61,362
                                                     ------          ------
    
                                                 27,191,768      26,797,140
    
        Less accumulated depreciation,
         depletion and amortization              13,857,489      13,066,014
                                                 ----------      ----------
            Property and equipment, net          13,334,279      13,731,126
                                                 ----------      ----------
                                                $14,068,982     $14,508,880
                                                ===========     ===========
    
    LIABILITIES AND STOCKHOLDERS' EQUITY
    
      Current liabilities
        Accounts payable and accrued expenses      $357,355        $555,765
    
      Long-term debt                                990,000       1,400,000
      Asset retirement obligations                  474,359         440,011
      Deferred income tax liabilities               925,741       1,185,494
    
      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;
          1,975,866 and 1,962,616 shares
          issued; 1,891,866 and 1,878,616
          shares outstanding as of
          December 31, 2009 and March 31,
          2009, respectively                        987,933         981,308
        Additional paid-in capital                5,747,420       5,617,620
        Retained earnings                         5,012,791       4,755,299
        Treasury stock, at cost (84,000
         shares)                                   (426,617)       (426,617)
                                                 ----------      ----------
      Total stockholders' equity                 11,321,527      10,927,610
                                                 ----------      ----------
                                                $14,068,982     $14,508,880
                                                ===========     ===========
    
    
    
    
    
    
                      Mexco Energy Corporation and Subsidiary
                       CONSOLIDATED STATEMENTS OF OPERATIONS
                                    (Unaudited)
    
                                  Three Months Ended      Nine Months Ended
                                       December 31           December 31
                                    2009        2008       2009        2008
                                    ----        ----       ----        ----
    Operating revenue:
      Oil and gas                $857,035    $908,253  $2,248,789  $4,176,050
      Other                         8,134      19,391      20,851      32,721
                                    -----      ------      ------      ------
        Total operating
         revenues                 865,169     927,644   2,269,640   4,208,771
    
    Operating expenses:
      Production                  269,154     237,736     779,379     930,477
      Accretion of
       asset retirement
       obligation                   7,963       7,291      23,570      21,495
      Depreciation,
       depletion, and
       amortization               252,940     271,530     791,474     751,337
      General and
       administrative             198,527     193,102     628,941     674,002
                                  -------     -------     -------     -------
        Total operating
         expenses                 728,584     709,659   2,223,364   2,377,311
                                  -------     -------   ---------   ---------
    
     Operating
      profit                      136,585     217,985      46,276   1,831,460
    
    Other income (expenses):
       Interest income                100         110         328       1,117
       Interest expense            (8,516)    (17,226)    (26,877)    (70,815)
                                   ------     -------     -------     -------
    
        Net other expense          (8,416)    (17,116)    (26,549)    (69,698)
                                   ------     -------     -------     -------
    
     Earnings  before provision
      for income taxes            128,169     200,869      19,727   1,761,762
    
    Income tax expense (benefit):
      Current                      21,988      67,057      21,988     538,187
      Deferred                    (60,964)      2,311    (259,753)     42,170
                                  -------       -----    --------      ------
                                  (38,976)     69,368    (237,765)    580,357
                                  -------      ------    --------     -------
    
    Net income                   $167,145    $131,501    $257,492  $1,181,405
                                 ========    ========    ========  ==========
    
    
    Earnings per common share:
      Basic                         $0.09       $0.07       $0.14       $0.64
      Diluted                       $0.09       $0.07       $0.13       $0.61
    
    Weighted average common 
     shares outstanding:
      Basic                     1,891,866   1,874,866   1,884,598   1,836,999
      Diluted                   1,946,076   1,938,746   1,946,362   1,928,029
    
    
    

SOURCE Mexco Energy Corporation

Copyright 2009 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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