Mexco Energy Net Income Falls 24% in Fiscal 2026

Mexco Energy (MXC) posted a 24% drop in fiscal 2026 net income, earning $1.3 million, or $0.64 a diluted share. Operating revenue fell 8% to $6.56 million for the year ended March 31, the company said in its 10-K filing.

The decline came from lower oil prices and less oil production. The average oil price the company realized was $64.25 a barrel, down from the prior year. Natural gas prices averaged $1.86 per thousand cubic feet, a gain that helped offset part of the oil-side shortfall. Gas production rose; oil volumes fell. Revenue from a limited liability company investment also provided a lift.

Mexco spent about $1.25 million on drilling during the year, participating in 57 horizontal wells and one vertical well. Fifty-one of those horizontal wells sit in the Delaware Basin, the western arm of the Permian that runs through Eddy and Lea counties in New Mexico. Twenty of the wells are expected to be completed during the current fiscal year. The company also spent roughly $150,000 to finish 17 horizontal wells drilled in fiscal 2025.

Royalty interests contributed 49% of operating revenue, meaning nearly half the top line came with zero operating costs attached. On those royalty acres, other operators drilled 177 gross wells, though Mexco's net working interest was just 0.07 wells.