Mexco Energy net income jumps 107% on higher oil prices

The Midland, Texas-based company is an independent oil and gas producer focused on the Permian Basin. It holds non-operated royalty interests, meaning it does not bear the full cost of drilling but shares in production revenue.

Mexco's results reflect the tailwind higher crude prices have provided to Permian-focused producers, even those with declining output. The company's oil production fell 15% year over year, yet the 52% price increase more than made up for the volume loss. Natural gas, which makes up a smaller portion of Mexco's revenue, saw both price and volume declines.

For the broader sector, the quarter underscores how much small-cap operators rely on oil-price momentum. With West Texas Intermediate crude averaging above $80 a barrel during the period, many Permian producers have reported stronger margins despite rising costs. Mexco's royalty model limits its exposure to cost inflation but also ties results directly to commodity prices and operator drilling decisions.

McComic said the company will keep looking for additional royalty interests in the Permian. The $2.1 million spent on acquisitions in the quarter exceeded the $1.8 million budgeted for all drilling participation this year, signaling a preference for buying existing production over funding new wells.

Mexco's shares trade on the NYSE American under the ticker MXC. The company has not provided guidance for the full fiscal year.