MIDLAND, TX, June 29, 2026 (GLOBE NEWSWIRE) -- Mexco Energy Corporation (NYSE American: MXC) reported results in its Annual Report on Form 10-K filed with the Securities and Exchange Commission for the fiscal year ended March 31, 2026. The Company reported net income of $1,305,722, or $0.64 per diluted share, a 24% decrease compared to fiscal 2025.
Operating revenues for fiscal 2026 were $6,561,324, an 8% decrease compared to fiscal 2025. This decrease was primarily attributable to lower average realized oil prices and reduced oil production volumes, partially offset by higher average realized natural gas prices, increased natural gas production volumes, and increased income from one of the Company's limited liability company investments. For the year ended March 31, 2026, the average realized price for oil was $64.25 per barrel, and the average realized price for natural gas was $1.86 per thousand cubic feet.
During fiscal 2026, the Company participated in the development of 57 horizontal wells and one vertical well at a cost of approximately $1.25 million, of which 20 wells are expected to be completed during the current fiscal year. Fifty-one of these wells are located in the Delaware Basin, in the western portion of the Permian Basin, in Eddy and Lea Counties, New Mexico. The Company also expended approximately $150,000, representing the remaining amount required to complete 17 horizontal wells that were drilled during fiscal 2025.
In addition to the working interest activity described above, other operators drilled 177 gross wells (.07 net wells) on the Company's royalty interests. Approximately 49% of the fiscal 2026 operating revenues were derived from royalties and were therefore free of operating costs to Mexco.
For the fiscal year ending March 31, 2027, the Company currently expects to participate in the drilling and completion of 33 horizontal wells, as well as the completion of 20 horizontal wells that were drilled during fiscal 2026. The estimated aggregate cost of these activities is approximately $1.8 million, of which approximately $500,000 has been expended to date. The Company continues to evaluate other prospects for participation during the current fiscal year.
The estimated present value of the Company's proved reserves at March 31, 2026, was approximately $21 million, based on estimated future net revenues discounted at 10% per annum, pricing and other assumptions set forth in "Item 2 – Properties" of Form 10-K. Estimated proved oil reserves at March 31, 2026, decreased 2% to 659 thousand barrels, while natural gas reserves increased 7% to 4.67 billion cubic feet compared to the prior fiscal year. For fiscal 2026, oil represented approximately 46% of the Company's total proved reserves and approximately 81% of its oil and gas sales.