Mexco Energy reports 27% increase in annual profit

Mexco Energy Corporation reports an annual net profit of $1.71mn, up 27%, driven by increased hydrocarbon production despite persistently weak natural gas prices in the Permian Basin.

Partagez:

Mexco Energy Corporation, an independent oil company based in Midland, Texas, reported an annual net profit of $1.71mn for its fiscal year ended March 2025, up 27% year-over-year. This increase mainly stems from higher production volumes of oil and natural gas, partly offsetting lower average hydrocarbon selling prices in the Permian Basin, a key operating region for the company.

Revenue growth despite weak prices

Annual revenues totalled $7.36mn, an 11% increase from the previous year. This improvement results mainly from increased oil and gas production volumes. The average price of oil reached $73.54 per barrel, while natural gas was sold at an average of only $1.70 per thousand cubic feet, negatively impacted by persistent pipeline capacity constraints in the Permian Basin region.

During the fiscal year ended in March, Mexco Energy participated in drilling 35 horizontal wells for an investment of approximately $1.1mn, with 17 wells scheduled for completion in the next fiscal year. Of these wells, 29 are located in the Delaware Basin, a strategically important western area of the Permian Basin located in Lea and Eddy counties, New Mexico.

Profitability boosted by royalty revenues

Additionally, Mexco allocated around $300,000 for completing 19 wells drilled the previous year. Furthermore, other operators drilled 120 gross wells (0.09 net) on which Mexco Energy holds royalties. These interests represent 31% of annual operating revenues, generating income without associated operating costs for the company.

For the current fiscal year ending March 2026, Mexco Energy plans to participate in drilling 27 new horizontal wells and completing 17 additional wells, representing an estimated total cost of approximately $1.2mn. Around $300,000 of this amount has already been invested to date, while the company continues to evaluate further investment opportunities.

Proven reserves decline, growth prospects ahead

The estimated net present value of Mexco Energy’s proven reserves amounts to approximately $23mn, based on future net revenues discounted at a rate of 10% per annum. However, the company reported a 15% reduction in proven oil reserves to 675,000 barrels and a 4% drop in natural gas reserves to 4.36bn cubic feet compared to the previous fiscal year, mainly due to declining hydrocarbon prices.

Mexco Energy states that oil currently accounts for 51% of its total proven reserves and generates approximately 86% of the company’s sales revenue. Over the past year, Mexco Energy also invested nearly $2mn in acquiring mineral interests and royalties covering 840 gross wells (2.31 net), distributed across various US states.

The President and Chief Financial Officer of the company stated: “We currently have around $2.2mn in cash, no debt outstanding on our bank line of credit, and are actively seeking opportunities.”

Faced with recurrent shortages, Zambia is reorganising its fuel supply chain, notably issuing licences for operating new tanker trucks and service stations to enhance national energy security and reduce external dependence.
The closure of the Grangemouth refinery has triggered a record increase in UK oil inventories, highlighting growing dependence on imports and an expanding deficit in domestic refining capacity.
S&P Global Ratings lowers Ecopetrol's global rating to BB following Colombia's sovereign downgrade, while Moody’s Investors Service confirms the group's Ba1 rating with a stable outlook.
The anticipated increase in the tax deduction rate may encourage independent refineries in Shandong to restart fuel oil imports, compensating for limited crude oil import quotas.
Petro-Victory Energy Corp. starts drilling of the AND-5 well in the Potiguar Basin, Brazil, as the first phase of an operation financed through its strategic partnership with Azevedo & Travassos Energia.
The Texan Port of Corpus Christi has completed major widening and deepening work designed to accommodate more supertankers, thus strengthening its strategic position in the US market for crude oil and liquefied natural gas exports.
BP Prudhoe Bay Royalty Trust is offering its interest in Prudhoe Bay, North America’s largest oil field, as part of its planned dissolution, assisted by RedOaks Energy Advisors for this strategic asset transaction.
CNOOC Limited’s Hong Kong subsidiary and KazMunayGas have concluded a nine-year exploration and production contract covering nine hundred and fifty-eight square kilometres in Kazakhstan, sharing investment and operations equally.
Donald Trump announced that the United States will no longer oppose Chinese purchases of Iranian oil, immediately triggering a drop in global crude oil prices and profoundly reshaping international energy trade partnerships.
Research firm S&P Global Commodity Insights lifts its outlook for the fourth straight year, betting on three point five mn barrels per day from 2025 despite lower prices.
Enbridge plans to expand its infrastructure to increase oil transportation from the American Midwest to the Gulf Coast, anticipating rising exports and addressing current market logistical constraints.
US commercial crude inventories significantly decline by 3.1 million barrels, widely surpassing initial forecasts and immediately pushing international oil prices higher.
The UK could have hydrocarbon reserves twice as large as current official estimates, according to Offshore Energies UK, highlighting the impact of fiscal policies on forecasts and the economic future of the North Sea.
Following US strikes in Iran, international energy companies partially evacuate their teams from Iraq as a precaution, while Lukoil maintains its entire personnel on southern oilfields.
Chinese independent refineries remain cautious amid rising Iranian crude prices driven by escalating Iran-Israel tensions, potentially threatening access to the strategic Strait of Hormuz.
Gazprom, affected by a historic $6.9bn loss in 2023, is offering Pakistani state-owned firm OGDCL its petroleum assets in Nigeria to strengthen its presence in Asia’s energy market, according to Pakistani sources.
Donald Trump urges control of oil prices following U.S. military action against Iranian nuclear facilities, amid escalating tensions around the strategic Strait of Hormuz, threatening to significantly impact global markets.
PermRock Royalty Trust announces a monthly distribution of $539,693 to unit holders, impacted by reduced oil volumes and prices in April, partly offset by increased natural gas sales.
Permian Basin Royalty Trust announces a reduced distribution for June due to ongoing excess costs at Waddell Ranch properties and lower volumes from Texas Royalty Properties.
Three months after starting production, Norway’s Johan Castberg oil field, located in the Barents Sea, reaches its full capacity of 220,000 barrels per day, significantly increasing energy supplies to Europe.