Mexco Energy reports lower fiscal 2026 revenue and profit as weaker oil prices and production pressure results.
Stock Earnings Results
June 29, 2026
Table of Contents
June 29, 2026
Mexco Energy Corporation (NYSE: MXC) reported fiscal 2026 results with lower revenue and profit, as weaker realized oil prices and reduced oil production weighed on results despite higher natural gas prices and increased natural gas production.
Mexco Energy is an independent oil and gas company based in Midland, Texas, focused on acquiring, exploring, and developing oil and gas properties, primarily in the Permian Basin.
The company reported net income of $1.3 million, or $0.64 per diluted share, down 24% from fiscal 2025. Operating revenue came in at $6.6 million, down 8% from the prior year.
No analyst estimate data was provided in the supplied release.
Operating revenue decreased to $6.6 million, mainly due to lower average realized oil prices and reduced oil production volumes.
The decline was partly offset by higher average realized natural gas prices, increased natural gas production volumes, and higher income from one of the company’s limited liability company investments.
For fiscal 2026, Mexco realized an average oil price of $64.25 per barrel and an average natural gas price of $1.86 per thousand cubic feet.
Approximately 49% of fiscal 2026 operating revenue came from royalties, which are free of operating costs to Mexco.
During fiscal 2026, Mexco participated in the development of 57 horizontal wells and one vertical well at a cost of about $1.25 million.
The company expects 20 of those wells to be completed during the current fiscal year. Fifty-one of the wells are located in the Delaware Basin, part of the western Permian Basin, in Eddy and Lea Counties, New Mexico.
Other operators also drilled 177 gross wells, or 0.07 net wells, on Mexco’s royalty interests.
For fiscal 2027, Mexco expects to participate in the drilling and completion of 33 horizontal wells, along with completion of 20 horizontal wells drilled during fiscal 2026. The estimated aggregate cost is about $1.8 million, with roughly $500,000 already spent.
At March 31, 2026, the estimated present value of Mexco’s proved reserves was approximately $21 million, using future net revenues discounted at 10%.
Estimated proved oil reserves decreased 2% to 659,000 barrels, while natural gas reserves increased 7% to 4.67 billion cubic feet.
Mexco ended the year with about $1.4 million in cash and no outstanding debt under its bank line of credit.
During the year, the company acquired various royalty and mineral interests in 262 gross wells, or 0.12 net wells, across Colorado, New Mexico, Louisiana, and Texas.
The aggregate purchase price was about $800,000 and was funded from cash on hand.
Mexco’s fiscal 2026 results reflected the pressure of lower oil prices and production volumes.
Revenue and earnings declined, but the company remained profitable, kept debt off its bank line, added royalty and mineral interests, and continued participating in drilling activity across core oil and gas basins.
The key question is whether fiscal 2027 development activity, including the expected completion of previously drilled wells, can offset commodity price pressure and help stabilize future revenue.
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