Mexco Energy (MXC) 8-K Mexco Energy Corporation Reports Profitable Earnings

EXHIBIT 99.1

February 11, 2010

FOR IMMEDIATE RELEASE

Mexco Energy Corporation Reports Profitable Earnings

MIDLAND, TX – 02/11/10 -- Mexco Energy Corporation (AMEX: MXC) today reported net income of $167,145, or $0.09 per diluted share, for the quarter ending December 31, 2009, the Company’s third quarter of fiscal 2010.  This was a 27% increase from $131,501 for the same quarter of fiscal 2009.  Operating revenues in the third quarter of fiscal 2010 were $865,169, a 7% decrease from $927,644 for the third quarter of fiscal 2009.

The average sales price for the third quarter of fiscal 2010 was $5.25 per Mcfe, an increase of 1% compared to $5.19 per Mcfe for the third quarter of fiscal 2009.  Oil production increased 8% and gas production decreased 9% during the third quarter of fiscal 2010 as compared to the same period of fiscal 2009 due to a temporary shut-in of a gas property.

For the nine months ended December 31, 2009, the Company reported net income of $257,492, or $0.13 per diluted share, a 78% decrease from $1,181,405 for the same period of fiscal 2009.  Operating revenues were $2,269,640 for the nine month period, a decrease of 46% from $4,208,771 for the same period of fiscal 2009.  The average sales price for the nine months ended December 31, 2009 was $4.48 per Mcfe compared to $8.88 per Mcfe for the same period of fiscal 2009.  Gas production increased 7% and oil production increased 3% during the nine months ended December 31, 2009 as compared to the same period of fiscal 2009.

Mexco Energy Corporation owns oil and gas properties in ten states, with the majority of its activity centered in West Texas.  The Company continues to focus its efforts on increasing oil and natural gas reserves, through exploration and development as well as acquisition of royalties with significant development potential.

In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, Mexco Energy Corporation cautions that statements in this press release which are forward-looking and which provide other than historical information involve risks and uncertainties that may impact the Company's actual results of operations. These risks include, but are not limited to, production variance from expectations, volatility of oil and gas prices, the need to develop and replace reserves, exploration risks, uncertainties about estimates of reserves, competition, government regulation, and mechanical and other inherit risks associated with oil and gas production.  A discussion of these and other factors, including risks and uncertainties, is set forth in the Company's Form 10-K for the fiscal year ended March 31, 2009.  Mexco Energy Corporation disclaims any intention or obligation to revise any forward-looking statements.

For additional information, please contact:  Nicholas C. Taylor, President and Chief Executive Officer or Tammy L. McComic, Executive Vice-President and Chief Financial Officer, both of Mexco Energy Corporation, (432) 682-1119.

Mexco Energy Corporation and Subsidiary
CONSOLIDATED BALANCE SHEETS
(Unaudited)
	December 31,			March 31,
	2009			2009
ASSETS
Current assets
Cash and cash equivalents	$	167,853		$	223,583
Accounts receivable:
Oil and gas sales		463,632			351,040
Trade		66,421			164,834
Related parties		4,383			1,687
Prepaid costs and expenses		32,414			36,610
Total current assets		734,703			777,754
Property and equipment, at cost
Oil and gas properties, using the full cost method		27,122,035			26,735,778
Other		69,733			61,362
		27,191,768			26,797,140
Less accumulated depreciation, depletion and amortization		13,857,489			13,066,014
Property and equipment, net		13,334,279			13,731,126
	$	14,068,982		$	14,508,880
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses	$	357,355		$	555,765
Long-term debt		990,000			1,400,000
Asset retirement obligations		474,359			440,011
Deferred income tax liabilities		925,741			1,185,494
Stockholders' equity
Preferred stock - $1.00 par value;
10,000,000 shares authorized; none outstanding		-			-
Common stock - $0.50 par value; 40,000,000 shares authorized;
1,975,866 and 1,962,616 shares issued; 1,891,866 and 1,878,616 shares outstanding as of
December 31, 2009 and March 31, 2009, respectively		987,933			981,308
Additional paid-in capital		5,747,420			5,617,620
Retained earnings		5,012,791			4,755,299
Treasury stock, at cost (84,000 shares)		(426,617	)		(426,617	)
Total stockholders' equity		11,321,527			10,927,610
	$	14,068,982		$	14,508,880

Mexco Energy Corporation and Subsidiary
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
	Three Months Ended						Nine Months Ended
	December 31						December 31
	2009			2008			2009			2008
Operating revenue:
Oil and gas	$	857,035		$	908,253		$	2,248,789		$	4,176,050
Other		8,134			19,391			20,851			32,721
Total operating revenues		865,169			927,644			2,269,640			4,208,771
Operating expenses:
Production		269,154			237,736			779,379			930,477
Accretion of asset retirement obligation		7,963			7,291			23,570			21,495
Depreciation, depletion, and amortization		252,940			271,530			791,474			751,337
General and administrative		198,527			193,102			628,941			674,002
Total operating expenses		728,584			709,659			2,223,364			2,377,311
Operating profit		136,585			217,985			46,276			1,831,460
Other income (expenses):
Interest income		100			110			328			1,117
Interest expense		(8,516	)		(17,226	)		(26,877	)		(70,815	)
Net other expense		(8,416	)		(17,116	)		(26,549	)		(69,698	)
Earnings before provision for income taxes		128,169			200,869			19,727			1,761,762
Income tax expense (benefit):
Current		21,988			67,057			21,988			538,187
Deferred		(60,964	)		2,311			(259,753	)		42,170
		(38,976	)		69,368			(237,765	)		580,357
Net income	$	167,145		$	131,501		$	257,492		$	1,181,405
Earnings per common share:
Basic	$	0.09		$	0.07		$	0.14		$	0.64
Diluted	$	0.09		$	0.07		$	0.13		$	0.61
Weighted average common shares outstanding:
Basic		1,891,866			1,874,866			1,884,598			1,836,999
Diluted		1,946,076			1,938,746			1,946,362			1,928,029