Mexco Energy Corp (NYSE: MXC)

Mexco Energy Corporation is an independent oil and gas company engaged in the acquisition, exploration, development and production of crude oil and natural gas properties located in the United States. The firm focuses on acquiring proved reserves that complement existing operations or are situated in areas where it has established production, with a preference for assets that contain producing wells, behind pipe reserves and high quality proved undeveloped locations. Its activities are concentrated primarily in West Texas and Southeastern New Mexico, although it holds interests in producing and non producing leases across fourteen states.

Revenue is generated from the sale of oil, natural gas and natural gas liquids derived from its working and royalty interests, as well as from overriding royalty interests in producing wells. The company reports that oil accounted for approximately 84% of its oil and natural gas sales in fiscal 2025, while royalty interests contributed about 31% of total operating revenues. As of March 31, 2025 its proved reserves totaled 1,401,000 barrels of oil equivalent with a present value of $23,000,000. Production for the year ended March 31, 2025 amounted to 83,564 barrels of oil and 570,012 thousand cubic feet of gas, which together drive the majority of its income.

Mexco Energy Corporation operates in a highly competitive industry where it faces competition from major integrated oil companies, other independent producers and individual operators that often possess greater financial and personnel resources. Despite this, the company maintains a competitive edge through its disciplined acquisition strategy, its focus on high quality proved reserves in the Permian Basin and its ability to generate cash flow from a diversified portfolio of royalty and working interests. The Permian Basin alone accounts for roughly 80% of its discounted future net cash flows from proved reserves and a similar share of gross revenues, underscoring the strategic importance of this region to its overall position.

The company’s customer base consists primarily of purchasers of crude oil and natural gas, including major marketers and refiners that buy its production under short term contracts. A significant portion of revenues is derived from a single major customer, referred to as Company A, which represented approximately 58% of operating revenues in fiscal 2025 and 59% in fiscal 2024. In addition to this key account, Mexco sells its output to a variety of other energy traders and utilities across the regions where its wells are located.