Document_and_Entity_Informatio
Document and Entity Information (USD $) | 6 Months Ended | ||
Sep. 30, 2013 | Nov. 12, 2013 | Sep. 30, 2012 | |
Document And Entity Information | ' | ' | ' |
Entity Registrant Name | 'MEXCO ENERGY CORP | ' | ' |
Entity Central Index Key | '0000066418 | ' | ' |
Document Type | '10-Q | ' | ' |
Document Period End Date | 30-Jun-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--03-31 | ' | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' | ' |
Is Entity a Voluntary Filer? | 'No | ' | ' |
Is Entity's Reporting Status Current? | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $6,062,046 |
Entity Common Stock, Shares Outstanding | ' | 2,036,866 | ' |
Document Fiscal Period Focus | 'Q2 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
CONSOLIDATED_BALANCE_SHEETS_Un
CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
ASSETS | ' | ' |
Cash and cash equivalents | $222,630 | $166,406 |
Accounts receivable: | ' | ' |
Oil and gas sales | 703,103 | 538,971 |
Trade | 16,240 | 16,370 |
Prepaid costs and expenses | 73,009 | 19,281 |
Total current assets | 1,014,982 | 741,028 |
Property and equipment, at cost | ' | ' |
Oil and gas properties, using the full cost method | 34,189,576 | 34,309,328 |
Other | 93,257 | 92,326 |
Accumulated depreciation, depletion and amortization | -17,917,213 | -17,323,692 |
Property and equipment, net | 16,365,620 | 17,077,962 |
Other noncurrent assets | 53,437 | 116,454 |
Total Assets | 17,434,039 | 17,935,444 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Accounts payable and accrued expenses | 326,873 | 431,848 |
Derivative instruments | 50,300 | ' |
Total current liabilities | 377,173 | 431,848 |
Long-term debt | 2,225,000 | 2,950,000 |
Asset retirement obligations | 795,203 | 763,412 |
Derivative instruments - long term | 6,316 | ' |
Deferred income tax liabilities | 800,942 | 853,199 |
Total liabilities | 4,204,634 | 4,998,459 |
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; 2,102,866 shares issued and 2,036,866 shares outstanding as of September 30, 2013 and March 31, 2013 | 1,051,433 | 1,051,433 |
Additional paid-in capital | 6,843,329 | 6,761,091 |
Retained earnings | 5,675,635 | 5,465,453 |
Treasury stock, at cost (66,000 shares) | -340,992 | -340,992 |
Total stockholders' equity | 13,229,405 | 12,936,985 |
Total liabilities and stockholders' equity | $17,434,039 | $17,935,444 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
Stockholders' equity | ' | ' |
Preferred stock par value | $1 | $1 |
Preferred stock shares authorized | 10,000,000 | 10,000,000 |
Preferred stock shares issued | 0 | 0 |
Preferred stock shares outstanding | 0 | 0 |
Common stock par value | $0.50 | $0.50 |
Common stock shares authorized | 40,000,000 | 40,000,000 |
Common stock shares issued | 2,102,866 | 2,099,116 |
Common stock shares outstanding | 2,036,866 | 2,035,949 |
Treasury stock, shares | 66,000 | 63,167 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Operating revenues: | ' | ' | ' | ' |
Oil and gas | $1,108,102 | $734,313 | $2,092,371 | $1,358,183 |
Other | 13,344 | 9,288 | 25,600 | 12,539 |
Total operating revenues | 1,121,446 | 743,601 | 2,117,971 | 1,370,722 |
Operating expenses: | ' | ' | ' | ' |
Production | 312,954 | 254,513 | 621,590 | 470,363 |
Accretion of asset retirement obligations | 11,020 | 9,604 | 21,937 | 19,142 |
Depreciation, depletion, and amortization | 298,489 | 259,780 | 593,522 | 491,316 |
General and administrative | 286,615 | 236,708 | 598,085 | 528,977 |
Total operating expenses | 909,078 | 760,605 | 1,835,134 | 1,509,798 |
Operating profit (loss) | 212,368 | -17,004 | 282,837 | -139,076 |
Other income (expense): | ' | ' | ' | ' |
Interest income | 105 | ' | 107 | 130 |
Interest expense | -18,202 | -10,767 | -38,332 | -21,626 |
Loss on derivative instruments | -59,295 | ' | -86,687 | ' |
Net other expense | -77,392 | -10,767 | -124,912 | -21,496 |
Earnings (loss) before provision for income taxes | 134,976 | -27,771 | 157,925 | -160,572 |
Income tax expense (benefit): | ' | ' | ' | ' |
Current | ' | ' | ' | ' |
Deferred | -59,075 | -28,534 | -52,257 | -98,118 |
TOTAL | -59,075 | -28,534 | -52,257 | -98,118 |
Net income (loss) | $194,051 | $763 | $210,182 | ($62,454) |
Earnings (loss) per common share: | ' | ' | ' | ' |
Basic | $0.10 | $0 | $0.10 | ($0.03) |
Diluted | $0.10 | $0 | $0.10 | ($0.03) |
Weighted average common shares outstanding: | ' | ' | ' | ' |
Basic | 2,036,866 | 2,035,949 | 2,036,866 | 2,035,949 |
Diluted | 2,039,108 | 2,038,240 | 2,038,800 | 2,035,949 |
CONSOLIDATED_STATEMENT_OF_CHAN
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) (USD $) | Common Stock Par Value | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Total |
Beginning balance, Amount at Mar. 31, 2013 | $1,051,433 | ($340,992) | $6,761,091 | $5,465,453 | $12,936,985 |
Beginning balance, Shares at Mar. 31, 2013 | 2,102,866 | -66,000 | ' | ' | ' |
Net income | ' | ' | ' | 16,131 | 16,131 |
Stock based compensation | ' | ' | 39,372 | ' | 39,372 |
Ending balance, Amount at Jun. 30, 2013 | 1,051,433 | -340,992 | 6,800,463 | 5,481,584 | 12,992,488 |
Ending balance, Shares at Jun. 30, 2013 | 2,102,866 | -66,000 | ' | ' | ' |
Net income | ' | ' | ' | 194,051 | 194,051 |
Stock based compensation | ' | ' | 42,866 | ' | 42,866 |
Ending balance, Amount at Sep. 30, 2013 | $1,051,433 | ($340,992) | $6,843,329 | $5,675,635 | $13,229,405 |
Ending balance, Shares at Sep. 30, 2013 | 2,102,866 | -66,000 | ' | ' | 2,036,866 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 6 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash flows from operating activities: | ' | ' |
Net income (loss) | $210,182 | ($62,454) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' |
Deferred income tax benefit | -52,257 | -98,118 |
Stock-based compensation | 82,238 | 84,808 |
Depreciation, depletion and amortization | 593,522 | 491,316 |
Accretion of asset retirement obligations | 21,937 | 19,142 |
Change in fair value of derivative instruments | 86,687 | ' |
Other | -2,071 | ' |
Changes in assets and liabilities: | ' | ' |
Increase in accounts receivable | -164,002 | -15,040 |
Increase in prepaid expenses | -53,728 | -49,039 |
Decrease in non-current assets | 63,017 | ' |
Increase in accounts payable and accrued expenses | 69,511 | 17,675 |
Net cash provided by operating activities | 855,036 | 388,290 |
Cash flows from investing activities: | ' | ' |
Additions to oil and gas properties | -786,097 | -852,390 |
Additions to other property and equipment | -931 | -13,806 |
Settlement of derivatives | -30,071 | ' |
Proceeds from sale of oil and gas properties and equipment | 743,287 | ' |
Net cash used in investing activities | -73,812 | -866,196 |
Cash flows from financing activities: | ' | ' |
Reduction of long-term debt | -725,000 | -225,000 |
Proceeds from long-term debt | ' | 300,000 |
Net cash provided by (used in) financing activities | -725,000 | 75,000 |
Net decrease in cash and cash equivalents | 56,224 | -402,906 |
Cash and cash equivalents at beginning of period | 166,406 | 498,681 |
Cash and cash equivalents at end of period | 222,630 | 95,775 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for interest | 39,424 | 19,839 |
Income taxes paid | ' | ' |
Non-cash investing and financing activities: | ' | ' |
Asset retirement obligations | $10,672 | $18,437 |
Nature_of_Operations
Nature of Operations | 6 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Nature of Operations | ' |
1. Nature of Operations | |
Mexco Energy Corporation (a Colorado corporation) and its wholly owned subsidiaries, Forman Energy Corporation (a New York corporation), Southwest Texas Disposal Corporation (a Texas corporation) and TBO Oil & Gas, LLC (a Texas limited liability company) (collectively, the “Company”) are engaged in the exploration, development and production of natural gas, crude oil, condensate and natural gas liquids (“NGLs”). Most of the Company’s oil and gas interests are centered in West Texas; however, the Company owns producing properties and undeveloped acreage in twelve states. Although most of the Company’s oil and gas interests are operated by others, the Company operates several properties in which it owns an interest. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
2. Basis of Presentation and Significant Accounting Policies | |
Principles of Consolidation. The consolidated financial statements include the accounts of Mexco Energy Corporation and its wholly owned subsidiaries. All significant intercompany balances and transactions associated with the consolidated operations have been eliminated. | |
Estimates and Assumptions. In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make informed judgments, estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and affect the reported amounts of revenues and expenses during the reporting period. In addition, significant estimates are used in determining year end proved oil and gas reserves. Although management believes its estimates and assumptions are reasonable, actual results may differ materially from those estimates. The estimate of the Company’s oil and natural gas reserves, which is used to compute depreciation, depletion, amortization and impairment of oil and gas properties, is the most significant of the estimates and assumptions that affect these reported results. | |
Interim Financial Statements. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting only of normal recurring accruals) necessary to present fairly the financial position of the Company as of September 30, 2013, and the results of its operations and cash flows for the interim periods ended September 30, 2013 and 2012. The financial statements as of September 30, 2013 and for the three and six month periods ended September 30, 2013 and 2012 are unaudited. The consolidated balance sheet as of March 31, 2013 was derived from the audited balance sheet filed in the Company’s 2013 annual report on Form 10-K filed with the Securities and Exchange Commission (“SEC”). The results of operations for the periods presented are not necessarily indicative of the results to be expected for a full year. The accounting policies followed by the Company are set forth in more detail in Note 2 of the “Notes to Consolidated Financial Statements” in the Form 10-K. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted in this Form 10-Q pursuant to the rules and regulations of the SEC. However, the disclosures herein are adequate to make the information presented not misleading. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in the Form 10-K. | |
Derivatives. The Company is required to recognize its derivative instruments on the consolidated balance sheets as assets or liabilities at fair value with such amounts classified as current or long-term based on their anticipated settlement dates. The accounting for the changes in fair value of a derivative depends on the intended use of the derivative and resulting designation. The Company has not designated its derivative instruments as hedges for accounting purposes and, as a result, marks its derivative instruments to fair value and recognizes the realized and unrealized change in fair value on derivative instruments in the consolidated statements of operations. | |
Fair Value of Financial Instruments. The Company’s financial instruments consist of cash and cash equivalents, receivables, payables, derivatives and long term debt. The carrying amount of cash and cash equivalents, receivables and payables approximates fair value because of the short-term nature of the instruments. The fair value of the revolving credit facility approximates its carrying value based on the borrowing rates currently available to the Company for bank loans with similar terms and maturities. Derivatives are recorded at fair value (see the Company’s Note 5 on Fair Value Measurements). | |
Gas Balancing. Gas imbalances are accounted for under the sales method whereby revenues are recognized based on production sold. A liability is recorded when the Company’s excess takes of natural gas volumes exceeds the Company’s estimated remaining recoverable reserves (over produced). No receivables are recorded for those wells where the Company has taken less than its ownership share of gas production (under produced). The Company does not have any significant gas imbalances as of September 30, 2013 and March 31, 2013. |
Asset_Retirement_Obligations
Asset Retirement Obligations | 6 Months Ended | ||||
Sep. 30, 2013 | |||||
Asset Retirement Obligation Disclosure [Abstract] | ' | ||||
Asset Retirement Obligations | ' | ||||
3. Asset Retirement Obligations | |||||
The Company’s asset retirement obligations (“ARO”) relate to the plugging of wells, the removal of facilities and equipment, and site restoration on oil and gas properties. The fair value of a liability for an ARO is recorded in the period in which it is incurred, discounted to its present value using the credit adjusted risk-free interest rate, and a corresponding amount capitalized by increasing the carrying amount of the related long-lived asset. The liability is accreted each period, and the capitalized cost is depreciated over the useful life of the related asset. | |||||
The following table provides a rollforward of the AROs for the first six months of fiscal 2014: | |||||
Carrying amount of asset retirement obligations as of April 1, 2013 | $ | 813,412 | |||
Liabilities incurred | 10,672 | ||||
Liabilities settled | (818 | ) | |||
Accretion expense | 21,937 | ||||
Carrying amount of asset retirement obligations as of September 30, 2013 | 845,203 | ||||
Less: Current portion | 50,000 | ||||
Non-Current asset retirement obligation | $ | 795,203 | |||
The ARO is included in the Consolidated Balance Sheets with the current portion being included in the accounts payable and other accrued expenses. |
Stockbased_Compensation
Stock-based Compensation | 6 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Share-based Compensation [Abstract] | ' | ||||||||||||||||||
Stock-based Compensation | ' | ||||||||||||||||||
4. Stock-based Compensation | |||||||||||||||||||
The Company recognized compensation expense of $42,866 and $41,029 in general and administrative expense in the Consolidated Statements of Operations for the three months ended September 30, 2013 and 2012, respectively. Compensation expense recognized for the six months ended September 30, 2013 and 2012 was $82,238 and $84,808, respectively. The total cost related to non-vested awards not yet recognized at September 30, 2013 totals approximately $195,653 which is expected to be recognized over a weighted average of 2.64 years. | |||||||||||||||||||
The fair value of each stock option is estimated on the date of grant using the Binomial valuation model. Expected volatilities are based on historical volatility of the Company’s stock over the expected term of 84 months for employees and 96 months for directors and other factors. We use historical data to estimate option exercise and employee termination within the valuation model. The expected term of options granted is derived from the output of the option valuation model and represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. As the Company has never declared dividends, no dividend yield is used in the calculation. Actual value realized, if any, is dependent on the future performance of the Company’s common stock and overall stock market conditions. There is no assurance the value realized by an optionee will be at or near the value estimated by the Binomial model. | |||||||||||||||||||
Included in the following table is a summary of the grant-date fair value of stock options granted and the related assumptions used in the Binomial models for stock options granted during the six months ended September 30, 2013 and 2012. All such amounts represent the weighted average amounts. | |||||||||||||||||||
Six Months Ended | |||||||||||||||||||
30-Sep | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
Grant-date fair value | $ | 4.75 | - | ||||||||||||||||
Volatility factor | 77.01 | % | - | ||||||||||||||||
Dividend yield | - | - | |||||||||||||||||
Risk-free interest rate | 1.74 | % | - | ||||||||||||||||
Expected term (in years) | 7 | - | |||||||||||||||||
The following table is a summary of activity of stock options for the six months ended September 30, 2013: | |||||||||||||||||||
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contract Life in Years | Aggregate Intrinsic Value | ||||||||||||||||
Outstanding at March 31, 2013 | 80,000 | $ | 6.52 | 8.03 | $ | - | |||||||||||||
Granted | 35,000 | 5.98 | |||||||||||||||||
Exercised | - | - | |||||||||||||||||
Forfeited or Expired | - | - | |||||||||||||||||
Outstanding at September 30, 2013 | 115,000 | $ | 6.35 | 8.15 | $ | 23,800 | |||||||||||||
Vested at September 30, 2013 | 40,000 | $ | 6.37 | 7.21 | $ | 7,425 | |||||||||||||
Exercisable at September 30, 2013 | 40,000 | $ | 6.37 | 7.21 | $ | 7,425 | |||||||||||||
During the six months ended September 30, 2013, stock options covering 35,000 shares were granted. There were no stock options granted during the six months ended September 30, 2012. | |||||||||||||||||||
During the six months ended September 30, 2013 and 2012, no stock options were exercised. | |||||||||||||||||||
The following table summarizes information about options outstanding at September 30, 2013: | |||||||||||||||||||
Range of Exercise Prices | Number of Options | Weighted Average Exercise Price | Weighted Average Remaining Contract Life in Years | Aggregate Intrinsic Value | |||||||||||||||
$ | 5.98 – 6.25 | 45,000 | $ | 6 | |||||||||||||||
6.26 – 6.50 | 30,000 | 6.29 | |||||||||||||||||
6.51 – 6.80 | 40,000 | 6.8 | |||||||||||||||||
$ | 5.98 – 6.80 | 115,000 | $ | 6.35 | 8.15 | $ | 23,800 | ||||||||||||
Outstanding options at September 30, 2013 expire between August 2020 and April 2023 and have exercise prices ranging from $5.98 to $6.80. | |||||||||||||||||||
No forfeiture rate is assumed for stock options granted to directors or employees due to the forfeiture rate history for these types of awards. There were no stock options forfeited or expired during the six months ended September 30, 2013 or 2012. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 6 Months Ended |
Sep. 30, 2013 | |
Fair Value Disclosures [Abstract] | ' |
Fair Value of Financial Instruments | ' |
5. Fair Value of Financial Instruments | |
Fair value as defined by authoritative literature is the price that would be received to sell an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants at the measurement date. Fair value measurements are classified and disclosed in one of the following categories: | |
Level 1 – Quoted prices in active markets for identical assets and liabilities. | |
Level 2 – Quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations whose inputs are observable or whose significant value drivers are observable. | |
Level 3 – Significant inputs to the valuation model are unobservable. | |
Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. In accordance with the reporting requirements of FASB ASC Topic 825, Financial Instruments, the Company calculates the fair value of its assets and liabilities which qualify as financial instruments. | |
The fair value of the Company’s crude oil swaps are measured internally using established commodity futures price strips for the underlying commodity provided by a reputable third party, the contracted notional volumes, and time to maturity. The valuation of the Company’s derivative instrument is deemed to use Level 2 inputs. See the Company’s Note 8 on Derivatives for further discussion. The unrealized loss on derivatives for the six months ended September 30, 2013 was approximately $57,000. | |
The initial measurement of asset retirement obligations’ fair value is calculated using discounted cash flow techniques and is based on internal estimates of future retirement costs associated with oil and gas properties. Given the unobservable nature of the inputs, including plugging costs and reserve lives, the initial measurement of the ARO liability is deemed to use Level 3 inputs. See the Company’s note on AROs for further discussion. AROs incurred during the six months ended September 30, 2013 were approximately $11,000. |
Credit_Facility
Credit Facility | 6 Months Ended | ||||
Sep. 30, 2013 | |||||
Debt Disclosure [Abstract] | ' | ||||
Credit Facility | ' | ||||
6. Credit Facility | |||||
The Company has a revolving credit agreement with Bank of America, N.A. (the “Agreement”), which provides for a credit facility of $4,900,000 with no monthly commitment reductions and a borrowing base evaluated annually, currently set at $4,900,000. Amounts borrowed under the Agreement are collateralized by the common stock of the Company’s wholly owned subsidiaries and substantially all of the Company’s oil and gas properties. Availability of this line of credit at September 30, 2013 was $2,675,000. No principal payments are anticipated to be required through November 30, 2015. | |||||
The Agreement was renewed seven times with the seventh amendment on October 25, 2013, which revised the maturity date to November 30, 2015. Under the original and renewed agreements, interest on the facility accrues at an annual rate equal to the British Bankers Association London Interbank Offered Rate ("BBA LIBOR") daily floating rate, plus 2.50 percentage points, which was 2.68% on September 30, 2013. Interest on the outstanding amount under the credit agreement is payable monthly. In addition, the Company will pay an unused commitment fee in an amount equal to ½ of 1 percent (.5%) times the daily average of the unadvanced amount of the commitment. The unused commitment fee is payable quarterly in arrears on the last day of each calendar quarter. | |||||
The Agreement contains customary covenants for credit facilities of this type including limitations on disposition of assets, mergers and reorganizations. The Company is also obligated to meet certain financial covenants under the Agreement. The Company is in compliance with all covenants as of September 30, 2013. In addition, this Agreement prohibits the Company from paying cash dividends on our common stock. The Agreement does grant the Company permission to enter into hedge agreements; however, the Company is under no obligation to do so. | |||||
The amended Agreement allows for up to $500,000 of the facility to be used for outstanding letters of credits. As of September 30, 2013, a letter of credit for $50,000, in lieu of a plugging bond with the Texas Railroad Commission (“TRRC”) covering the properties the Company operates is outstanding under the facility. This letter of credit renews annually. As of October 31, 2013, a second letter of credit for $105,667 in favor of the TRRC, was issued and will also renew annually. The Company will pay a fee in an amount equal to 1 percent (1.0%) per annum of the outstanding undrawn amount of each standby letter of credit, payable monthly in arrears, on the basis of the face amount outstanding on the day the fee is calculated. | |||||
The balance outstanding on the line of credit as of September 30, 2013 was $2,225,000 and $1,975,000 as of October 31, 2013. | |||||
The following table is a summary of activity on the Bank of America, N.A. line of credit for the six months ended September 30, 2013: | |||||
Principal | |||||
Balance at March 31, 2013: | $ | 2,950,000 | |||
Borrowings | - | ||||
Repayments | (725,000 | ) | |||
Balance at September 30, 2013: | $ | 2,225,000 |
Income_Taxes
Income Taxes | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Income Taxes | ' | ||||||||||||||||
7. Income Taxes | |||||||||||||||||
The Company recognizes deferred tax assets and liabilities for future tax consequences of temporary differences between the carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates applicable to the years in which those differences are expected to be settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in net income in the period that includes the enactment date. Any interest and penalties related to uncertain tax positions are recorded as interest expense and general and administrative expense, respectively. | |||||||||||||||||
The income tax provision consists of the following for the three and six months ended September 30, 2013 and 2012: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
30-Sep | 30-Sep | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Current income tax expense | $ | - | $ | - | $ | - | $ | - | |||||||||
Deferred income tax benefit | (59,075 | ) | (28,534 | ) | (52,257 | ) | (98,118 | ) | |||||||||
Total income tax provision: | $ | (59,075 | ) | $ | (28,534 | ) | $ | (52,257 | ) | $ | (98,118 | ) | |||||
Effective tax rate | (44 | %) | (103 | %) | (33 | %) | (61 | %) | |||||||||
As of September 30, 2013, the Company has a statutory depletion carryforward of approximately $4,700,000, which does not expire. At September 30, 2013, there was a net operating loss carryforward for regular income tax reporting purposes of approximately $3,200,000, which will begin expiring in 2021. The Company’s ability to use the net operating loss carryforward and certain other tax attributes to reduce current and future U.S. federal taxable income is subject to limitations under the Internal Revenue Code. This change in our effective tax rate was primarily due to the completion of our 2012 tax return which included a change in the statutory depletion carryforward resulting in a tax effect of approximately $75,000. | |||||||||||||||||
As of September 30, 2013, the Company had unrecognized tax benefits of approximately $677,000. While it is expected the amount of unrecognized tax benefits will change in the next 12 months, we do not expect any change to have a significant impact on our results operations. The recognition of the total amount of these unrecognized tax benefits would have an impact on the effective tax rate and if they are disallowed, we will be required to pay additional taxes. |
Derivatives
Derivatives | 6 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||
Derivatives | ' | ||||||||
8. Derivatives | |||||||||
All derivative financial instruments are recorded at fair value. The Company has not designated its derivative instruments as hedges for accounting purposes and, as a result, marks its derivative instruments to fair value and recognizes the realized and unrealized changes in fair value in the consolidated statements of operations under the caption “Loss on derivative instruments.” | |||||||||
The Company uses price swap contracts to reduce price volatility associated with certain of its oil sales. With respect to the Company’s fixed price swap contracts, the counterparty is required to make a payment to the Company if the settlement price for any settlement period is less than the swap price, and the Company is required to make a payment to the counterparty if the settlement price for any settlement period is greater than the swap price. The Company’s derivative contracts are based upon reported settlement prices on commodity exchanges, with crude oil derivative settlements based on New York Mercantile Exchange West Texas Intermediate (“NYMEX WTI”) pricing. The counterparty to the Company’s derivative contract is Merrill Lynch Commodities, Inc., who the Company believes is an acceptable credit risk. | |||||||||
As of September 30, 2013 the Company had the following open crude oil derivative positions with respect to future production based on NYMEX WTI pricing: | |||||||||
Volume | Fixed Swap Price | ||||||||
(bbls) | |||||||||
Production Period | |||||||||
September 2013 – March 2015 | 9,500 | $ | 90 | ||||||
The fair value of swaps is generally determined using established index prices and other sources which are based upon, among other things, futures prices and time to maturity. | |||||||||
The net fair value of the Company’s derivative assets and liabilities and their locations on the consolidated balance sheet are as follows: | |||||||||
As of | As of | ||||||||
September 30, | March 31, | ||||||||
2013 | 2013 | ||||||||
Current assets: Derivative instruments | $ | - | $ | - | |||||
Noncurrent assets: Derivative instruments | - | $ | - | ||||||
Total assets | $ | - | $ | - | |||||
Current liabilities: Derivative instruments | $ | 50,300 | $ | - | |||||
Noncurrent liabilities: Derivative instruments | 6,316 | $ | - | ||||||
Total liabilities | $ | 56,616 | $ | - | |||||
None of the Company’s derivatives have been designated as hedges. As such, all changes in fair value are immediately recognized in earnings. The following summarizes the loss on derivative instruments included in the consolidated statements of operations for the six months ended September 30, 2013 and 2012: | |||||||||
2013 | 2012 | ||||||||
Unrealized loss on open non-hedge derivative instruments | $ | (56,616 | ) | $ | - | ||||
Loss on settlement of non-hedge derivative instruments | (30,071 | ) | $ | - | |||||
Total loss on derivative instruments | $ | (86,687 | ) | $ | - |
Related_Party_Transactions
Related Party Transactions | 6 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
9. Related Party Transactions | |
Related party transactions for the Company relate to shared office expenditures in addition to administrative and operating expenses paid on behalf of the majority stockholder. The total billed to and reimbursed by the stockholder for the six months ended September 30, 2013 and 2012 was $62,175 and $70,599, respectively. |
Income_Loss_Per_Common_Share
Income (Loss) Per Common Share | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings (loss) per common share: | ' | ||||||||||||||||
Income (Loss) Per Common Share | ' | ||||||||||||||||
10. Income (Loss) Per Common Share | |||||||||||||||||
Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share assumes the exercise of all stock options having exercise prices less than the average market price of the common stock during the period using the treasury stock method and is computed by dividing net income (loss) by the weighted average number of common shares and dilutive potential common shares (stock options) outstanding during the period. In periods where losses are reported, the weighted-average number of common shares outstanding excludes potential common shares, because their inclusion would be anti-dilutive. | |||||||||||||||||
The following is a reconciliation of the number of shares used in the calculation of basic income (loss) per share and diluted income (loss) per share for the three and six month periods ended September 30, 2013 and 2012. | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
30-Sep | 30-Sep | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net income (loss) | $ | 194,051 | $ | 763 | $ | 210,182 | $ | (62,454 | ) | ||||||||
Shares outstanding: | |||||||||||||||||
Weighted avg. common shares outstanding – basic | 2,036,866 | 2,035,949 | 2,036,866 | 2,035,949 | |||||||||||||
Effect of the assumed exercise of dilutive stock options | 2,242 | 2,291 | 1,934 | - | |||||||||||||
Weighted avg. common shares outstanding – dilutive | 2,039,108 | 2,038,240 | 2,038,800 | 2,035,949 | |||||||||||||
Earnings (loss) per common share: | |||||||||||||||||
Basic | $ | 0.1 | $ | 0 | $ | 0.1 | $ | (0.03 | ) | ||||||||
Diluted | $ | 0.1 | $ | 0 | $ | 0.1 | $ | (0.03 | ) | ||||||||
For the three and six month periods ending September 30, 2013, 105,000 potential common shares relating to stock options were excluded in the computation of diluted net income because the options are anti-dilutive. Anti-dilutive stock options have a weighted average exercise price of $6.38 at September 30, 2013. For the three months ended September 30, 2012, 70,000 potential common shares relating to stock options were excluded in the computation of diluted net income per share. Anti-dilutive stock options have a weighted average exercise price of $6.55 at September 30, 2012. Due to a net loss for the six months ended September 30, 2012, the weighted average number of common shares outstanding excludes common stock equivalents because their inclusion would be anti-dilutive. |
Subsequent_Events
Subsequent Events | 6 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
11. Subsequent Events | |
On October 25, 2013, the Company renewed its revolving credit agreement with Bank of America, N.A. For a description of this amended credit agreement , see Note 6 – Credit Facility. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Principles of Consolidation | ' |
Principles of Consolidation. The consolidated financial statements include the accounts of Mexco Energy Corporation and its wholly owned subsidiaries. All significant intercompany balances and transactions associated with the consolidated operations have been eliminated. | |
Estimates and Assumptions | ' |
Estimates and Assumptions. In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make informed judgments, estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and affect the reported amounts of revenues and expenses during the reporting period. In addition, significant estimates are used in determining year end proved oil and gas reserves. Although management believes its estimates and assumptions are reasonable, actual results may differ materially from those estimates. The estimate of the Company’s oil and natural gas reserves, which is used to compute depreciation, depletion, amortization and impairment of oil and gas properties, is the most significant of the estimates and assumptions that affect these reported results. | |
Interim Financial Statements | ' |
Interim Financial Statements. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting only of normal recurring accruals) necessary to present fairly the financial position of the Company as of September 30, 2013, and the results of its operations and cash flows for the interim periods ended September 30, 2013 and 2012. The financial statements as of September 30, 2013 and for the three and six month periods ended September 30, 2013 and 2012 are unaudited. The consolidated balance sheet as of March 31, 2013 was derived from the audited balance sheet filed in the Company’s 2013 annual report on Form 10-K filed with the Securities and Exchange Commission (“SEC”). The results of operations for the periods presented are not necessarily indicative of the results to be expected for a full year. The accounting policies followed by the Company are set forth in more detail in Note 2 of the “Notes to Consolidated Financial Statements” in the Form 10-K. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted in this Form 10-Q pursuant to the rules and regulations of the SEC. However, the disclosures herein are adequate to make the information presented not misleading. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in the Form 10-K. | |
Derivatives | ' |
Derivatives. The Company is required to recognize its derivative instruments on the consolidated balance sheets as assets or liabilities at fair value with such amounts classified as current or long-term based on their anticipated settlement dates. The accounting for the changes in fair value of a derivative depends on the intended use of the derivative and resulting designation. The Company has not designated its derivative instruments as hedges for accounting purposes and, as a result, marks its derivative instruments to fair value and recognizes the realized and unrealized change in fair value on derivative instruments in the consolidated statements of operations. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments. The Company’s financial instruments consist of cash and cash equivalents, receivables, payables, derivatives and long term debt. The carrying amount of cash and cash equivalents, receivables and payables approximates fair value because of the short-term nature of the instruments. The fair value of the revolving credit facility approximates its carrying value based on the borrowing rates currently available to the Company for bank loans with similar terms and maturities. Derivatives are recorded at fair value (see the Company’s Note 5 on Fair Value Measurements). | |
Gas Balancing | ' |
Gas Balancing. Gas imbalances are accounted for under the sales method whereby revenues are recognized based on production sold. A liability is recorded when the Company’s excess takes of natural gas volumes exceeds the Company’s estimated remaining recoverable reserves (over produced). No receivables are recorded for those wells where the Company has taken less than its ownership share of gas production (under produced). The Company does not have any significant gas imbalances as of September 30, 2013 and March 31, 2013. |
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 6 Months Ended | ||||
Sep. 30, 2013 | |||||
Asset Retirement Obligation Disclosure [Abstract] | ' | ||||
Rollforward of the asset retirement obligations | ' | ||||
Carrying amount of asset retirement obligations as of April 1, 2013 | $ | 813,412 | |||
Liabilities incurred | 10,672 | ||||
Liabilities settled | (818 | ) | |||
Accretion expense | 21,937 | ||||
Carrying amount of asset retirement obligations as of September 30, 2013 | 845,203 | ||||
Less: Current portion | 50,000 | ||||
Non-Current asset retirement obligation | $ | 795,203 |
Stockbased_Compensation_Tables
Stock-based Compensation (Tables) | 6 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||
Summary of the grant-date fair value of stock options granted and the related assumptions used in the Binomial models for stock options granted | ' | ||||||||||||||||||
Six Months Ended | |||||||||||||||||||
30-Sep | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
Grant-date fair value | $ | 4.75 | - | ||||||||||||||||
Volatility factor | 77.01 | % | - | ||||||||||||||||
Dividend yield | - | - | |||||||||||||||||
Risk-free interest rate | 1.74 | % | - | ||||||||||||||||
Expected term (in years) | 7 | - | |||||||||||||||||
Summary of activity of stock options | ' | ||||||||||||||||||
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contract Life in Years | Aggregate Intrinsic Value | ||||||||||||||||
Outstanding at March 31, 2013 | 80,000 | $ | 6.52 | 8.03 | $ | - | |||||||||||||
Granted | 35,000 | 5.98 | |||||||||||||||||
Exercised | - | - | |||||||||||||||||
Forfeited or Expired | - | - | |||||||||||||||||
Outstanding at September 30, 2013 | 115,000 | $ | 6.35 | 8.15 | $ | 23,800 | |||||||||||||
Vested at September 30, 2013 | 40,000 | $ | 6.37 | 7.21 | $ | 7,425 | |||||||||||||
Exercisable at September 30, 2013 | 40,000 | $ | 6.37 | 7.21 | $ | 7,425 | |||||||||||||
Summary information about options outstanding at June 30, 2013 | ' | ||||||||||||||||||
Range of Exercise Prices | Number of Options | Weighted Average Exercise Price | Weighted Average Remaining Contract Life in Years | Aggregate Intrinsic Value | |||||||||||||||
$ | 5.98 – 6.25 | 45,000 | $ | 6 | |||||||||||||||
6.26 – 6.50 | 30,000 | 6.29 | |||||||||||||||||
6.51 – 6.80 | 40,000 | 6.8 | |||||||||||||||||
$ | 5.98 – 6.80 | 115,000 | $ | 6.35 | 8.15 | $ | 23,800 |
Credit_Facility_Tables
Credit Facility (Tables) | 6 Months Ended | ||||
Sep. 30, 2013 | |||||
Debt Disclosure [Abstract] | ' | ||||
Summary of activity on the Bank of America, N.A. line of credit | ' | ||||
Principal | |||||
Balance at March 31, 2013: | $ | 2,950,000 | |||
Borrowings | - | ||||
Repayments | (725,000 | ) | |||
Balance at September 30, 2013: | $ | 2,225,000 |
Income_Taxes_Tables
Income Taxes (Tables) | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Reconciliation of the provision for income taxes | ' | ||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
30-Sep | 30-Sep | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Current income tax expense | $ | - | $ | - | $ | - | $ | - | |||||||||
Deferred income tax benefit | (59,075 | ) | (28,534 | ) | (52,257 | ) | (98,118 | ) | |||||||||
Total income tax provision: | $ | (59,075 | ) | $ | (28,534 | ) | $ | (52,257 | ) | $ | (98,118 | ) | |||||
Effective tax rate | (44 | %) | (103 | %) | (33 | %) | (61 | %) |
Derivatives_Tables
Derivatives (Tables) | 6 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Derivatives Tables | ' | ||||||||
Schedule of open crude oil derivative positions with respect to future production | ' | ||||||||
Volume | Fixed Swap Price | ||||||||
(bbls) | |||||||||
Production Period | |||||||||
September 2013 – March 2015 | 9,500 | $ | 90 | ||||||
Net fair value of the Companybs derivative assets and liabilities and their locations on the consolidated balance sheet | ' | ||||||||
As of | As of | ||||||||
September 30, | March 31, | ||||||||
2013 | 2013 | ||||||||
Current assets: Derivative instruments | $ | - | $ | - | |||||
Noncurrent assets: Derivative instruments | - | $ | - | ||||||
Total assets | $ | - | $ | - | |||||
Current liabilities: Derivative instruments | $ | 50,300 | $ | - | |||||
Noncurrent liabilities: Derivative instruments | 6,316 | $ | - | ||||||
Total liabilities | $ | 56,616 | $ | - | |||||
Loss on derivative instruments included in the consolidated statements of operations | ' | ||||||||
2013 | 2012 | ||||||||
Unrealized loss on open non-hedge derivative instruments | $ | (56,616 | ) | $ | - | ||||
Loss on settlement of non-hedge derivative instruments | (30,071 | ) | $ | - | |||||
Total loss on derivative instruments | $ | (86,687 | ) | $ | - |
Income_Loss_Per_Common_Share_T
Income (Loss) Per Common Share (Tables) | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Income Loss Per Common Share Tables | ' | ||||||||||||||||
Number of shares used in the calculation of basic income (loss) per share and diluted income (loss) per share | ' | ||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
30-Sep | 30-Sep | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net income (loss) | $ | 211,602 | $ | 763 | $ | 227,733 | $ | (62,454 | ) | ||||||||
Shares outstanding: | |||||||||||||||||
Weighted avg. common shares outstanding – basic | 2,036,866 | 2,035,949 | 2,036,866 | 2,035,949 | |||||||||||||
Effect of the assumed exercise of dilutive stock options | 2,242 | 2,291 | 1,934 | - | |||||||||||||
Weighted avg. common shares outstanding – dilutive | 2,039,108 | 2,038,240 | 2,038,800 | 2,035,949 | |||||||||||||
Earnings (loss) per common share: | |||||||||||||||||
Basic | $ | 0.1 | $ | 0 | $ | 0.11 | $ | (0.03 | ) | ||||||||
Diluted | $ | 0.1 | $ | 0 | $ | 0.11 | $ | (0.03 | ) |
Stockbased_Compensation_Detail
Stock-based Compensation (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' |
Compensation expense | $42,866 | $41,029 | $82,238 | $84,808 |
Total cost related to non-vested awards | $195,653 | ' | $195,653 | ' |
Non-vested awards, weighted average period of recognition | ' | ' | '2 years 234 days | ' |
Exercised options | ' | ' | 0 | 0 |
Stock options granted | ' | ' | 35,000 | 0 |
Options outstanding, exercise price, high | ' | ' | $6.80 | ' |
Options outstanding, exercise price, low | ' | ' | $5.98 | ' |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Details Narrative) (USD $) | 6 Months Ended |
Sep. 30, 2013 | |
Fair Value Disclosures [Abstract] | ' |
Asset Retirement Obligations | $11,000 |
Unrealized loss on derivatives | $57,000 |
Credit_Facility_Details_Narrat
Credit Facility (Details Narrative) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Oct. 31, 2013 | Sep. 30, 2013 | Oct. 31, 2013 |
Bank of America credit agreement | Bank of America credit agreement | Texas Railroad Commission letter of credit | Texas Railroad Commission second letter of credit | |||
Credit facility maximum capacity | ' | ' | $4,900,000 | ' | ' | ' |
Credit facility current capacity | ' | ' | 4,900,000 | ' | ' | ' |
Credit facility remaining capacity | ' | ' | 2,675,000 | ' | ' | ' |
Interest Rate as of period end | ' | ' | 2.68% | ' | ' | ' |
Commitment Fee Percentage | ' | ' | 0.50% | ' | ' | ' |
Credit outstanding | $2,225,000 | $2,950,000 | $2,225,000 | $1,975,000 | $50,000 | $105,667 |
Income_Taxes_Details_Narrative
Income Taxes (Details Narrative) (USD $) | 6 Months Ended |
Sep. 30, 2013 | |
Notes to Financial Statements | ' |
Statutory depletion carryforward | $4,700,000 |
Operating loss carryforwards | 3,200,000 |
Operating loss carryforward expires beginning | '2021 |
Unrecognized tax benefits | 677,000 |
Statutory Depletion Carryforward, tax effect | $75,000 |
Related_Party_Transactions_Det
Related Party Transactions (Details Narrative) (USD $) | 6 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Notes to Financial Statements | ' | ' |
Totals billed to and reimbursed by the stockholder | $62,175 | $70,599 |
Income_Loss_Per_Common_Share_D
Income (Loss) Per Common Share (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | |
Income Loss Per Common Share Details Narrative | ' | ' | ' |
Shares relating to stock options excluded in the computation of diluted net income per share | 105,000 | 70,000 | 105,000 |
Anti-dilutive stock options, weighted average exercise price | ' | $6.55 | $6.38 |
Asset_Retirement_Obligations_R
Asset Retirement Obligations - Rollforward of the asset retirement obligations (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | |
Notes to Financial Statements | ' | ' | ' | ' | ' |
Carrying amount of asset retirement obligations as of April 1, 2013 | ' | ' | $813,412 | ' | ' |
Liabilities incurred | ' | ' | 10,672 | ' | ' |
Liabilities settled | ' | ' | -818 | ' | ' |
Accretion expense | 11,020 | 9,604 | 21,937 | 19,142 | ' |
Carrying amount of asset retirement obligations as of September 30, 2013 | 845,203 | ' | 845,203 | ' | ' |
Less: Current portion | 50,000 | ' | 50,000 | ' | ' |
Non-Current asset retirement obligation | $795,203 | ' | $795,203 | ' | $763,412 |
Stockbased_Compensation_Summar
Stock-based Compensation - Summary of the grant-date fair value (Details) (USD $) | 6 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Notes to Financial Statements | ' | ' |
Grant-date fair value | $4.75 | ' |
Volatility factor | 77.01% | ' |
Dividend yield | ' | ' |
Risk-free interest rate | 1.74% | ' |
Expected term (in years) | '7 years 0 days | ' |
Stockbased_Compensation_Summar1
Stock-based Compensation - Summary of activity of stock options (Details) (USD $) | 3 Months Ended | 6 Months Ended |
Mar. 31, 2013 | Sep. 30, 2013 | |
Notes to Financial Statements | ' | ' |
Number of Shares Outstanding | 80,000 | 115,000 |
Weighted Average Exercise Price Per Share | $6.52 | $6.35 |
Weighted Aggregate Average Remaining Contract Life in Years | '8 years 11 days | '8 years 55 days |
Intrinsic Value | ' | $23,800 |
Shares granted in period | ' | 35,000 |
Shares granted - weighted average exercise price | ' | $5.98 |
Vested - Shares Outstanding | ' | 40,000 |
Vested - Weighted Average Exercise Price Per Share | ' | $6.37 |
Vested - Weighted Aggregate Average Remaining Contract Life in Years | ' | '7 years 77 days |
Vested - Intrinsic Value | ' | 7,425 |
Exercisable - Shares Outstanding | ' | 40,000 |
Exercisable - Weighted Average Exercise Price Per Share | ' | $6.37 |
Exercisable - Weighted Aggregate Average Remaining Contract Life in Years | ' | '7 years 77 days |
Exercisable - Intrinsic Value | ' | $7,425 |
Stockbased_Compensation_Option
Stock-based Compensation - Options outstanding (Details) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
Aggregate Intrinsic Value | $23,800 | ' |
Options Outstanding, $5.98 - 6.25 | ' | ' |
Range of Exercise Prices, low | $5.98 | ' |
Range of Exercise Prices, high | $6.25 | ' |
Number of Options | 45,000 | ' |
Weighted Average Exercise Price Per Share | $6 | ' |
Options Outstanding, $6.26 - 6.50 | ' | ' |
Range of Exercise Prices, low | $6.26 | ' |
Range of Exercise Prices, high | $6.50 | ' |
Number of Options | 30,000 | ' |
Weighted Average Exercise Price Per Share | $6.29 | ' |
Options Outstanding, $6.51 - 6.80 | ' | ' |
Range of Exercise Prices, low | $6.51 | ' |
Range of Exercise Prices, high | $6.80 | ' |
Number of Options | 40,000 | ' |
Weighted Average Exercise Price Per Share | $6.80 | ' |
Options Outstanding, $5.98 - 6.80 | ' | ' |
Range of Exercise Prices, low | $5.98 | ' |
Range of Exercise Prices, high | $6.80 | ' |
Number of Options | 115,000 | ' |
Weighted Average Exercise Price Per Share | $6.35 | ' |
Weighted Average Remaining Contract Life in Years | '8 years 55 days | ' |
Aggregate Intrinsic Value | $23,800 | ' |
Credit_Facility_Summary_of_act
Credit Facility - Summary of activity on the Bank of America, N.A. line of credit (Details) (USD $) | 6 Months Ended |
Sep. 30, 2013 | |
Notes to Financial Statements | ' |
Balance at March 31, 2013: | $2,950,000 |
Borrowings | ' |
Repayments | -725,000 |
Balance at June 30, 2013: | $2,225,000 |
Income_Taxes_Income_tax_provis
Income Taxes - Income tax provision (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Notes to Financial Statements | ' | ' | ' | ' |
Current income tax (benefit) expense | ' | ' | ' | ' |
Deferred income tax (benefit) expense | -59,075 | -28,534 | -52,257 | -98,118 |
Total income tax provision | ($59,075) | ($28,534) | ($52,257) | ($98,118) |
Effective tax rate | -44.00% | -103.00% | -33.00% | -61.00% |
Derivatives_Open_crude_oil_der
Derivatives - Open crude oil derivative positions (Details) (June 2013 - March 2015, crude oil derivative positions, USD $) | Sep. 30, 2013 |
bbl | |
June 2013 - March 2015, crude oil derivative positions | ' |
Volume | 9,500 |
Fixed Swap Price | $90 |
Derivatives_Net_fair_value_of_
Derivatives - Net fair value of the Companybs derivative assets and liabilities (Details) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
Derivatives - Net Fair Value Of Companys Derivative Assets And Liabilities Details | ' | ' |
Current assets: Derivative instruments | ' | ' |
Noncurrent assets: Derivative instruments | ' | ' |
Total assets | ' | ' |
Current liabilities: Derivative instruments | 50,300 | ' |
Noncurrent liabilities: Derivative instruments | 6,316 | ' |
Total Liabilities | $56,616 | ' |
Derivatives_Loss_on_derivative
Derivatives - Loss on derivative instruments included in the consolidated statements of operations (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Derivatives - Loss On Derivative Instruments Included In Consolidated Statements Of Operations Details | ' | ' | ' | ' |
Unrealized loss on open non-hedge derivative instruments | ' | ' | ($56,616) | ' |
Loss on settlement of non-hedge derivative instruments | ' | ' | -30,071 | ' |
Loss on derivative instruments | ($59,295) | ' | ($86,687) | ' |
Income_Loss_Per_Common_Share_R
Income (Loss) Per Common Share - Reconciliation of the number of shares used in the calculation of basic income (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Notes to Financial Statements | ' | ' | ' | ' | ' |
Net income (loss) | $194,051 | $16,131 | $763 | $210,182 | ($62,454) |
Weighted average common shares outstanding b basic | 2,036,866 | ' | 2,035,949 | 2,036,866 | 2,035,949 |
Effect of the assumed exercise of dilutive stock options | 2,242 | ' | 2,291 | 1,934 | ' |
Weighted average common shares outstanding b dilutive | 2,039,108 | ' | 2,038,240 | 2,038,800 | 2,035,949 |
Earnings (loss) per common share: Basic | $0.10 | ' | $0 | $0.10 | ($0.03) |
Earnings (loss) per common share: Diluted | $0.10 | ' | $0 | $0.10 | ($0.03) |