Independent oil and natural gas producer that sells oil and natural gas and accounts for oil and gas properties using the full-cost method, generating $6,561,324 in revenue and $1,305,722 in net income in 2026.

# Company

This document is an outline for Part I, Item 3 (Business) of a regulatory filing.

Sections listed under Part I, Item Business:
- 1. Item Risk (page 10)
- 1A. Factors Item Unresolved (page 15)
- 1B. Staff Comments Item Cybersecurity (page 15)
- 1C. Item Properties (page 16)
- 2. Item Legal (page 19)
- 3. Proceedings Item Mine (page 19)
- 4. Safety Disclosures

Mexco Energy Corporation is an independent U.S.-based oil and gas exploration, development, and production company focused mainly on horizontal drilling in the Permian Basin, with diversified interests including royalties and non-operated working interests across multiple states.

# Mexco Energy Corporation - Company Summary

## Business Overview
- **Type:** Independent oil and gas exploration, development, and production company.
- **Founded:** Incorporated in April 1972 under the name Miller Oil Company; changed to Mexco Energy Corporation on April 30, 1980.
- **Headquarters:** Midland, Texas (No. 415 W. Wall, Suite 475, Zip Code: 79701).
- **Operations:** Engaged in acquiring, exploring, developing, and producing crude oil, natural gas, condensate, and natural gas liquids (NGLs) within the United States.
- **Geographic Focus:** Primarily in West Texas and Southeastern New Mexico; also owns properties and undeveloped acreage in 14 states across the U.S.

## Reserves & Production
- **Proved Reserves (as of March 31, 2025):** Approximately 1.401 million barrels of oil equivalent (MMBOE). 
  - **Reserves Composition:** 48% oil and 52% natural gas.
  - **Present Value of Reserves (PV-10):** About $23 million based on discounted future revenues.
- **Production (Fiscal Year 2025):** 
  - Oil: 83,564 barrels
  - Natural Gas: 570,012 Mcf
- **Historical Production (last five years):** 
  - 2021: 50,327 barrels oil; 324,205 Mcf gas
  - 2022: 61,689 barrels oil; 393,841 Mcf gas
  - 2023: 73,968 barrels oil; 534,363 Mcf gas
  - 2024: 69,999 barrels oil; 502,879 Mcf gas
  - 2025: 83,564 barrels oil; 570,012 Mcf gas

## Revenue & Income
- **Total Revenue (Fiscal Year 2025):** Approximately **$7.12 million** (up 10% from $6.46 million in FY 2024).
  - **Sources:** 
    - Oil and gas sales
    - Royalties (about 31% of total operating revenues)
- **Net Income (Fiscal Year 2025):** **$1,712,368** (increased 27% from $1,344,952 in FY 2024).
- **Earnings per Share:**
  - Basic: $0.83
  - Diluted: $0.81
- **Number of Shares Outstanding:** 2,046,000 as of June 27, 2025.
- **Stockholders:** 2,239,283 shares issued; 809 shareholders of record.

## Business Strategy & Market Environment
- Focuses on acquiring proved reserves fitting with existing operations or in well-established regions.
- Primary operations include vertical and horizontal well drilling, especially in the Permian Basin (Delaware and Midland areas).
- Active in the acquisition of royalties, non-operated working interests, and undeveloped acreage.
- Faces challenges from volatile commodity prices, geopolitical risks, environmental regulations, and industry competition.
- Major focus areas include high-impact drilling in the Delaware and Midland Basins, targeting zones like Wolfcamp, Bone Spring, Penn Shale, and others.

## Employees & Operations
- **Employees:** 2 full-time employees and 3 part-time employees (as of March 31, 2025).
- **Operations:** All properties are operated by third-party operators; the company owns interests in approximately 7,500 gross wells (26.4 net wells).

## Financial Details
- **Total Assets (as of March 31, 2025):** About $20.34 million.
- **Liabilities:** Total liabilities approximately $1.64 million.
- **Equity:** Total stockholders’ equity around $18.71 million.
- **Revenue from royalties (FY 2025):** About 31% of total revenues.
- **Main Customers:** Only mention of significant customer concentration relates to oil and gas sales, with one purchaser accounting for 58% of revenues in FY 2025.

## Key Initiatives & Activities
- Participated in drilling 35 horizontal wells in fiscal 2025, primarily in the Delaware Basin.
- Acquired royalties and interests in numerous wells and properties across states such as Texas, New Mexico, Colorado, Louisiana, Wyoming, Nebraska, North Dakota, South Dakota, Montana.
- Divested non-core assets including interests in acreage in Texas.
- Engaged in share repurchase programs, with 57,766 shares bought back in FY 2025 at an average price of $12.17 per share.

## Market & Financial Risks
- Highly dependent on commodity prices, which are volatile.
- Significant concentration with one major purchaser.
- Environmental regulations, geopolitical risks, and operational hazards pose ongoing risks to business.

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**Summary:**  
Mexco Energy Corporation is a U.S.-based independent oil and gas producer primarily active in the Permian Basin, with diversified interests including royalties and non-operated working interests. It maintains a moderate asset base with proven reserves valued at about $23 million, and reported $7.12 million in revenue with a net income of approximately $1.7 million in fiscal 2025. The company employs a small team but actively participates in the exploration and development of high-potential horizontal drilling projects. It also repurchases shares and manages a portfolio of interests across multiple U.S. states.

Mexco Energy Corporation is an independent oil and gas company focused on the acquisition, exploration, and production of oil and natural gas within the United States.

# Mexco Energy Corporation

## General Information
- Incorporated in April 1972 in Colorado as Miller Oil Company.
- Independent oil and gas company focused on acquisition, exploration, development, and production of crude oil and natural gas properties in the United States.

## Ownership and Leadership
- Significant shareholder: Nicholas C. Taylor owns approximately 45% of outstanding shares and serves as Chairman and Chief Executive Officer.
- Executive team:
  - Nicholas C. Taylor — CEO & Chairman
  - Tamala L. McComic — President & Chief Financial Officer
  - Donna Gail Yanko — Vice President
  - Stacy D. Hardin — Secretary & Assistant Treasurer

## Operations
- Proved reserves (as of March 31, 2024): approximately 1.547 million barrels of oil equivalent (MMBOE)
  - 51% oil and natural gas liquids
  - 49% natural gas
- Regional focus: West Texas and Southeastern New Mexico; additional properties in 14 states.

## Employees
- Total employees as of March 31, 2024: 6 (3 full-time, 3 part-time).
- Uses independent geological, land, and engineering consultants as needed.

## Financial Performance
- Revenue from oil and gas operations in fiscal 2024: approximately $6.46 million.
- Present value of estimated future net revenues from proved reserves (as of March 31, 2024): approximately $29 million.

## Production Data
- Oil production
  - 2024: 69,999 barrels
  - 2023: 73,968 barrels
- Gas production
  - 2024: 502,879 Mcf
  - 2023: 534,363 Mcf

## Customers
- Major customer: Company A, representing approximately 59% of operating revenues in fiscal 2024.

## Challenges and Focus Areas
- Faces intense competition for oil and gas properties and is exposed to commodity price volatility influenced by geopolitical and economic conditions.
- Strategic priorities include optimizing cash flows, divesting non-core assets, minimizing debt, and maintaining liquidity.

MEXCO ENERGY CORP

10-K / June 29, 2026

10-K / June 27, 2025

10-K / June 27, 2024

10-K / June 29, 2026

Company