Mexco Energy (MXC) 10-Q 14 Feb 14 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	9 Months Ended
	Dec. 31, 2013	Feb. 13, 2014	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	31-Dec-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	'Q3	'	'
Document Fiscal Year Focus	'2013	'	'

CONSOLIDATED_BALANCE_SHEETS_Un

CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $)	Dec. 31, 2013	Mar. 31, 2013
ASSETS	'	'
Cash and cash equivalents	$210,473	$166,406
Accounts receivable:	'	'
Oil and gas sales	752,778	538,971
Trade	14,161	16,370
Prepaid costs and expenses	47,822	19,281
Total current assets	1,025,234	741,028
Property and equipment, at cost	'	'
Oil and gas properties, using the full cost method	34,153,463	34,309,328
Other	93,544	92,326
Accumulated depreciation, depletion and amortization	-18,194,770	-17,323,692
Property and equipment, net	16,052,237	17,077,962
Other noncurrent assets	69,676	116,454
Total Assets	17,147,147	17,935,444
LIABILITIES AND STOCKHOLDERS' EQUITY	'	'
Accounts payable and accrued expenses	212,319	431,848
Derivative instruments	36,186	'
Total current liabilities	248,505	431,848
Long-term debt	1,925,000	2,950,000
Asset retirement obligations	806,245	763,412
Derivative instruments - long term	1,837	'
Deferred income tax liabilities	810,416	853,199
Total liabilities	3,792,003	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 of December 31, 2013 and March 31, 2013, respectively	1,051,433	1,051,433
Additional paid-in capital	6,880,409	6,761,091
Retained earnings	5,764,294	5,465,453
Treasury stock, at cost (66,000 shares)	-340,992	-340,992
Total stockholders' equity	13,355,144	12,936,985
Total liabilities and stockholders' equity	$17,147,147	$17,935,444

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Dec. 31, 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	2,102,866
Common stock shares outstanding	2,036,866	2,036,866
Treasury stock, shares	66,000	66,000

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Operating revenues:	'	'	'	'
Oil and gas	$948,633	$781,426	$3,041,004	$2,139,609
Other	13,393	9,178	38,993	21,717
Total operating revenues	962,026	790,604	3,079,997	2,161,326
Operating expenses:	'	'	'	'
Production	291,828	325,712	913,418	796,074
Accretion of asset retirement obligations	11,074	9,680	33,011	28,822
Depreciation, depletion, and amortization	277,557	283,498	871,079	774,814
General and administrative	275,489	250,183	873,573	779,161
Total operating expenses	855,948	869,073	2,691,081	2,378,871
Operating income (loss)	106,078	-78,469	388,916	-217,545
Other income (expenses):	'	'	'	'
Interest income	4	2	111	132
Interest expense	-15,353	-13,078	-53,685	-34,704
Gain (loss) on derivative instruments	7,404	'	-79,284	'
Net other expense	-7,945	-13,076	-132,858	-34,572
Earnings (loss) before provision for income taxes	98,133	-91,545	256,058	-252,117
Income tax expense (benefit):	'	'	'	'
Current	'	'	'	'
Deferred	9,474	-51,965	-42,783	-150,083
TOTAL	9,474	-51,965	-42,783	-150,083
Net income (loss)	$88,659	($39,580)	$298,841	($102,034)
Earnings (loss) per common share:	'	'	'	'
Basic	$0.04	($0.02)	$0.15	($0.05)
Diluted	$0.04	($0.02)	$0.15	($0.05)
Weighted average common shares outstanding:	'	'	'	'
Basic	2,036,866	2,036,938	2,036,866	2,036,277
Diluted	2,043,372	2,036,938	2,040,324	2,036,277

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
Beginning balance, Shares at Sep. 30, 2013	2,102,866	-66,000	'	'	'
Net income	'	'	'	88,659	88,659
Stock based compensation	'	'	37,080	'	42,866
Ending balance, Amount at Dec. 31, 2013	$1,051,433	($340,992)	$6,880,409	$5,764,294	$13,355,144
Ending balance, Shares at Dec. 31, 2013	2,102,866	-66,000	'	'	2,036,866

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	9 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Cash flows from operating activities:	'	'
Net income (loss)	$298,841	($102,034)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:	'	'
Deferred income tax benefit	-42,783	-150,083
Stock-based compensation	119,318	115,502
Depreciation, depletion and amortization	871,079	774,814
Accretion of asset retirement obligations	33,011	28,822
Change in fair value of derivative instruments	79,284	'
Other	-2,655	-1,466
Changes in assets and liabilities:	'	'
Increase in accounts receivable	-211,598	-95,338
Increase in prepaid expenses	-28,541	-72,185
Decrease in non-current assets	46,778	'
(Decrease) increase in accounts payable and accrued expenses	-25,577	5,327
Net cash provided by operating activities	1,137,157	503,359
Cash flows from investing activities:	'	'
Additions to oil and gas properties	-988,955	-1,018,346
Acquisition of business	'	-1,150,000
Additions to other property and equipment	-1,218	-13,806
Settlement of derivatives	-41,261	'
Proceeds from sale of oil and gas properties and equipment	963,344	68,974
Net cash used in investing activities	-68,090	-2,113,178
Cash flows from financing activities:	'	'
Proceeds from exercise of stock options	'	16,313
Reduction of long-term debt	-1,025,000	-250,000
Proceeds from long-term debt	'	1,450,000
Net cash (used in) provided by financing activities	-1,025,000	1,216,313
Net increase (decrease) in cash and cash equivalents	44,067	-393,506
Cash and cash equivalents at beginning of period	166,406	498,681
Cash and cash equivalents at end of period	210,473	105,175
Supplemental disclosure of cash flow information:	'	'
Cash paid for interest	55,630	31,752
Income taxes paid	'	'
Non-cash investing and financing activities:	'	'
Asset retirement obligations	13,057	23,130
Fair value of assets	'	1,277,106
Cash paid	'	1,150,000
Liabilities assumed	'	$127,106

Nature_of_Operations

Nature of Operations	9 Months Ended
	Dec. 31, 2013
Accounting Policies [Abstract]	'
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	9 Months Ended
	Dec. 31, 2013
Accounting Policies [Abstract]	'
Summary of 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 December 31, 2013, and the results of its operations and cash flows for the interim periods ended December 31, 2013 and 2012. The financial statements as of December 31, 2013 and for the three and nine month periods ended December 31, 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 our excess takes of natural gas volumes exceeds our 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 December 31, 2013 and March 31, 2013.
	Recent Accounting Pronouncements. In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-11, Topic 740: Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU No. 2013-11 clarifies the presentation of unrecognized tax benefits and is effective for interim periods beginning after December 15, 2013. The Company does not anticipate the guidance to have a significant impact on its financial position or results of operations.
	There were no other accounting standards and interpretations issued during the reporting period which were applicable to the Company.

Asset_Retirement_Obligations

Asset Retirement Obligations	9 Months Ended
	Dec. 31, 2013
Asset Retirement Obligation Disclosure [Abstract]	'
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 nine months of fiscal 2014:
	Carrying amount of asset retirement obligations as of April 1, 2013	$       813,412
	Liabilities incurred	13,057
	Liabilities settled	-3,235
	Accretion expense	33,011
	Carrying amount of asset retirement obligations as of December 31, 2013	856,245
	Less: Current portion	50,000
	Non-Current asset retirement obligation	$       806,245
	The ARO is included on the consolidated balance sheets with the current portion being included in the accounts payable and other accrued expenses.

Stockbased_Compensation

Stock-based Compensation	9 Months Ended
	Dec. 31, 2013
Share-based Compensation [Abstract]	'
Stock-based Compensation	'
	The Company recognized compensation expense of $37,080 and $30,694 in general and administrative expense in the Consolidated Statements of Operations for the three months ended December 31, 2013 and 2012, respectively. Compensation expense recognized for the nine months ended December 31, 2013 and 2012 was $119,318 and $115,502, respectively. The total cost related to non-vested awards not yet recognized at December 31, 2013 totals $158,574 which is expected to be recognized over a weighted average of 2.46 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 nine months ended December 31, 2013 and 2012. All such amounts represent the weighted average amounts.
		Nine Months Ended
		31-Dec
		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 nine months ended December 31, 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 December 31, 2013		115,000	$         6.35	7.89	$    62,900
	Vested at December 31, 2013		50,000	$         6.46	7.15	$    22,025
	Exercisable at December 31, 2013		50,000	$         6.46	7.15	$    22,025
	During the nine months ended December 31, 2013, stock options covering 35,000 shares were granted. During the nine months ended December 31, 2012, no stock options were granted.
	During the nine months ended December 31, 2013, no stock options were exercised. During the nine months ended December 31, 2012, stock options covering 3,750 shares were exercised with a total intrinsic value of $3,138. The Company received proceeds of $16,313 from these exercises.
	The following table summarizes information about options outstanding at December 31, 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	$               6.00
	6.26 – 6.50		30,000	6.29
	6.51 – 6.80		40,000	6.8
	$  5.98 – 6.80		115,000	$               6.35	7.89	$     62,900
	Outstanding options at December 31, 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 nine months ended December 31, 2013 or 2012.

Fair_Value_of_Financial_Instru

Fair Value of Financial Instruments	9 Months Ended
	Dec. 31, 2013
Fair Value Disclosures [Abstract]	'
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 nine months ended December 31, 2013 was approximately $38,000.
	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 nine months ended December 31, 2013 were approximately $13,000.

Credit_Facility

Credit Facility	9 Months Ended
	Dec. 31, 2013
Debt Disclosure [Abstract]	'
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 December 31, 2013 was $2,819,333. 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 2.669% on December 31, 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 December 31, 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 December 31, 2013, two letters of credit for $50,000 and $105,667, in lieu of plugging bonds with the Texas Railroad Commission (“TRRC”) covering the properties the Company operates are outstanding under the facility. These letters of credit 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 December 31, 2013 was $1,925,000 and as of February 13, 2014 was $1,575,000.
	The following table is a summary of activity on the Bank of America, N.A. line of credit for the nine months ended December 31, 2013:
			Principal
	Balance at March 31, 2013:		$    2,950,000
		Borrowings	-
		Repayments	-1,025,000
	Balance at December 31, 2013:		$     1,925,000

Income_Taxes

Income Taxes	9 Months Ended
	Dec. 31, 2013
Income Tax Disclosure [Abstract]	'
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 nine months ended December 31, 2013 and 2012:
			Three Months Ended		Nine Months Ended
			31-Dec		31-Dec
			2013	2012	2013	2012
		Current income tax	$               -	$               -	$                 -	$               -
		Deferred income tax expense (benefit)	9,474	-51,965	-42,783	-150,083
	Total income tax provision:		$       9,474	$   (51,965)	$   (42,783)	($150,083)
	Effective tax rate		10%	-57%	-17%	-60%
	As of December 31, 2013, the Company has a statutory depletion carryforward of approximately $4,800,000, which does not expire. At December 31, 2013, there was a net operating loss carryforward for regular income tax reporting purposes of approximately $2,900,000, 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. As of December 31, 2013, the Company had unrecognized tax benefits of approximately $677,000.

Derivatives

Derivatives	9 Months Ended
	Dec. 31, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]	'
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 “Gain/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 December 31, 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
		December 2013 – March 2015	8,000	$            90.00
	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
			December 31,	March 31,
			2013	2013
		Current assets:  Derivative instruments	$                    -	$                 -
		Noncurrent assets:  Derivative instruments	-	$                 -
	Total assets		$                    -	$                 -
		Current liabilities:  Derivative instruments	$           36,186	$                 -
		Noncurrent liabilities: Derivative instruments	1,837	$                 -
	Total liabilities		$           38,023	$                 -
	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 nine months ended December 31, 2013 and 2012:
			2013	2012
		Unrealized loss on open non-hedge derivative instruments	$       (38,023)	$                   -
		Loss on settlement of non-hedge derivative instruments	-41,261	$                   -
		Total loss on derivative instruments	$       (79,284)	$                   -

Related_Party_Transactions

Related Party Transactions	9 Months Ended
	Dec. 31, 2013
Related Party Transactions [Abstract]	'
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 nine months ended December 31, 2013 and 2012 was $105,288 and $112,359, respectively.

Income_Loss_Per_Common_Share

Income (Loss) Per Common Share	9 Months Ended
	Dec. 31, 2013
Earnings (loss) per common share:	'
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 nine month periods ended December 31, 2013 and 2012:
			Three Months Ended		Nine Months Ended
			31-Dec		31-Dec
			2013	2012	2013	2012
	Net income (loss)		$     88,659	($39,580)	$   298,841	($102,034)
	Shares outstanding:
	Weighted avg. common shares
	outstanding – basic		2,036,866	2,036,938	2,036,866	2,036,277
	Effect of the assumed exercise of dilutive
	stock options		6,506	-	3,458	-
	Weighted avg. common shares
	outstanding – dilutive		2,043,372	2,036,938	2,040,324	2,036,277
	Earnings (loss) per common share:
		Basic	$        0.04	$     (0.02)	$         0.15	$     (0.05)
		Diluted	$        0.04	$     (0.02)	$         0.15	$     (0.05)
	For the three and nine months ended December 31, 2013, 75,000 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 $6.42 at December 31, 2013. Due to a net loss for the three and nine months ended December 31, 2012, the weighted average number of common shares outstanding excludes common stock equivalents because their inclusion would be anti-dilutive.

Subsequent_Events

Subsequent Events	9 Months Ended
	Dec. 31, 2013
Subsequent Events [Abstract]	'
Subsequent Events	'
	The Company completed a review and analysis of all events that occurred after the balance sheet date to determine if any such events must be reported and has determined that there are no subsequent events to be disclosed.

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Dec. 31, 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 December 31, 2013, and the results of its operations and cash flows for the interim periods ended December 31, 2013 and 2012. The financial statements as of December 31, 2013 and for the three and nine month periods ended December 31, 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 our excess takes of natural gas volumes exceeds our 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 December 31, 2013 and March 31, 2013.
New Accounting Pronouncements	'
	Recent Accounting Pronouncements. In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-11, Topic 740: Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU No. 2013-11 clarifies the presentation of unrecognized tax benefits and is effective for interim periods beginning after December 15, 2013. The Company does not anticipate the guidance to have a significant impact on its financial position or results of operations.
	There were no other accounting standards and interpretations issued during the reporting period which were applicable to the Company.

Asset_Retirement_Obligations_T

Asset Retirement Obligations (Tables)	9 Months Ended
	Dec. 31, 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	13,057
	Liabilities settled	-3,235
	Accretion expense	33,011
	Carrying amount of asset retirement obligations as of December 31, 2013	856,245
	Less: Current portion	50,000
	Non-Current asset retirement obligation	$       806,245

Stockbased_Compensation_Tables

Stock-based Compensation (Tables)	9 Months Ended
	Dec. 31, 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	'
		Nine Months Ended
		31-Dec
		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 December 31, 2013		115,000	$         6.35	7.89	$    62,900
	Vested at December 31, 2013		50,000	$         6.46	7.15	$    22,025
	Exercisable at December 31, 2013		50,000	$         6.46	7.15	$    22,025
Summary information about options outstanding at December 31, 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	$               6.00
	6.26 – 6.50		30,000	6.29
	6.51 – 6.80		40,000	6.8
	$  5.98 – 6.80		115,000	$               6.35	7.89	$     62,900

Credit_Facility_Tables

Credit Facility (Tables)	9 Months Ended
	Dec. 31, 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	-1,025,000
	Balance at December 31, 2013:		$     1,925,000

Income_Taxes_Tables

Income Taxes (Tables)	9 Months Ended
	Dec. 31, 2013
Income Tax Disclosure [Abstract]	'
Reconciliation of the provision for income taxes	'
			Three Months Ended		Nine Months Ended
			31-Dec		31-Dec
			2013	2012	2013	2012
		Current income tax	$               -	$               -	$                 -	$               -
		Deferred income tax expense (benefit)	9,474	-51,965	-42,783	-150,083
	Total income tax provision:		$       9,474	$   (51,965)	$   (42,783)	($150,083)
	Effective tax rate		10%	-57%	-17%	-60%

Derivatives_Tables

Derivatives (Tables)	9 Months Ended
	Dec. 31, 2013
Derivatives Tables	'
Schedule of open crude oil derivative positions with respect to future production	'
			Volume	Fixed Swap Price
			(bbls)
	Production Period
		December 2013 – March 2015	8,000	$            90.00
Net fair value of the Companybs derivative assets and liabilities and their locations on the consolidated balance sheet	'
			As of	As of
			December 31,	March 31,
			2013	2013
		Current assets:  Derivative instruments	$                    -	$                 -
		Noncurrent assets:  Derivative instruments	-	$                 -
	Total assets		$                    -	$                 -
		Current liabilities:  Derivative instruments	$           36,186	$                 -
		Noncurrent liabilities: Derivative instruments	1,837	$                 -
	Total liabilities		$           38,023	$                 -
Loss on derivative instruments included in the consolidated statements of operations	'
			2013	2012
		Unrealized loss on open non-hedge derivative instruments	$       (38,023)	$                   -
		Loss on settlement of non-hedge derivative instruments	-41,261	$                   -
		Total loss on derivative instruments	$       (79,284)	$                   -

Income_Loss_Per_Common_Share_T

Income (Loss) Per Common Share (Tables)	9 Months Ended
	Dec. 31, 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		Nine Months Ended
			31-Dec		31-Dec
			2013	2012	2013	2012
	Net income (loss)		$     88,659	($39,580)	$   298,841	($102,034)
	Shares outstanding:
	Weighted avg. common shares
	outstanding – basic		2,036,866	2,036,938	2,036,866	2,036,277
	Effect of the assumed exercise of dilutive
	stock options		6,506	-	3,458	-
	Weighted avg. common shares
	outstanding – dilutive		2,043,372	2,036,938	2,040,324	2,036,277
	Earnings (loss) per common share:
		Basic	$        0.04	$     (0.02)	$         0.15	$     (0.05)
		Diluted	$        0.04	$     (0.02)	$         0.15	$     (0.05)

Stockbased_Compensation_Detail

Stock-based Compensation (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'	'	'	'
Compensation expense	$37,080	$30,694	$119,318	$115,502
Total cost related to non-vested awards	158,574	'	158,574	'
Non-vested awards, weighted average period of recognition	'	'	'2 years 186 days	'
Exercised options	'	'	0	3,750
Exercised options, intrinsic value	'	'	'	3,138
Exercised options, proceeds received	'	'	'	$16,313
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 $)	9 Months Ended
	Dec. 31, 2013
Fair Value Disclosures [Abstract]	'
Asset Retirement Obligations	$13,000
Unrealized loss on derivatives	$38,000

Credit_Facility_Details_Narrat

Credit Facility (Details Narrative) (USD $)	Dec. 31, 2013	Mar. 31, 2013	Dec. 31, 2013	Feb. 13, 2014	Dec. 31, 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	'	'	2,819,333	'	'	'
Interest Rate as of period end	'	'	2.67%	'	'	'
Commitment Fee Percentage	'	'	0.50%	'	'	'
Credit outstanding	$1,925,000	$2,950,000	$1,925,000	$1,575,000	$50,000	$105,667

Income_Taxes_Details_Narrative

Income Taxes (Details Narrative) (USD $)	9 Months Ended
	Dec. 31, 2013
Notes to Financial Statements	'
Statutory depletion carryforward	$4,800,000
Operating loss carryforwards	2,900,000
Operating loss carryforward expires beginning	'2021
Unrecognized tax benefits	$677,000

Related_Party_Transactions_Det

Related Party Transactions (Details Narrative) (USD $)	9 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Notes to Financial Statements	'	'
Totals billed to and reimbursed by the stockholder	$105,288	$112,359

Income_Loss_Per_Common_Share_D

Income (Loss) Per Common Share (Details Narrative) (USD $)	3 Months Ended	9 Months Ended
	Dec. 31, 2013	Dec. 31, 2013
Income Loss Per Common Share Details Narrative	'	'
Shares relating to stock options excluded in the computation of diluted net income per share	75,000	75,000
Anti-dilutive stock options, weighted average exercise price	'	$6.42

Asset_Retirement_Obligations_R

Asset Retirement Obligations - Rollforward of the asset retirement obligations (Details) (USD $)	3 Months Ended		9 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Mar. 31, 2013
Notes to Financial Statements	'	'	'	'	'
Carrying amount of asset retirement obligations as of April 1, 2013	'	'	$813,412	'	'
Liabilities incurred	'	'	13,057	'	'
Liabilities settled	'	'	-3,235	'	'
Accretion expense	11,074	9,680	33,011	28,822	'
Carrying amount of asset retirement obligations as of December 31, 2013	856,245	'	856,245	'	'
Less: Current portion	50,000	'	50,000	'	'
Non-Current asset retirement obligation	$806,245	'	$806,245	'	$763,412

Stockbased_Compensation_Summar

Stock-based Compensation - Summary of the grant-date fair value (Details) (USD $)	9 Months Ended
	Dec. 31, 2013	Dec. 31, 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	9 Months Ended
	Mar. 31, 2013	Dec. 31, 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	'7 years 325 days
Intrinsic Value	'	$62,900
Shares granted in period	'	35,000
Shares granted - weighted average exercise price	'	$5.98
Vested - Shares Outstanding	'	50,000
Vested - Weighted Average Exercise Price Per Share	'	$6.46
Vested - Weighted Aggregate Average Remaining Contract Life in Years	'	'7 years 55 days
Vested - Intrinsic Value	'	22,025
Exercisable - Shares Outstanding	'	50,000
Exercisable - Weighted Average Exercise Price Per Share	'	$6.46
Exercisable - Weighted Aggregate Average Remaining Contract Life in Years	'	'7 years 55 days
Exercisable - Intrinsic Value	'	$22,025

Stockbased_Compensation_Option

Stock-based Compensation - Options outstanding (Details) (USD $)	Dec. 31, 2013	Mar. 31, 2013
Aggregate Intrinsic Value	$62,900	'
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	'7 years 325 days	'
Aggregate Intrinsic Value	$62,900	'

Credit_Facility_Summary_of_act

Credit Facility - Summary of activity on the Bank of America, N.A. line of credit (Details) (USD $)	9 Months Ended
	Dec. 31, 2013
Notes to Financial Statements	'
Balance at March 31, 2013:	$2,950,000
Borrowings	'
Repayments	-1,025,000
Balance at December 31, 2013:	$1,925,000

Income_Taxes_Income_tax_provis

Income Taxes - Income tax provision (Details) (USD $)	3 Months Ended		9 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Notes to Financial Statements	'	'	'	'
Current income tax (benefit) expense	'	'	'	'
Deferred income tax (benefit) expense	9,474	-51,965	-42,783	-150,083
Total income tax provision	$9,474	($51,965)	($42,783)	($150,083)
Effective tax rate	10.00%	-57.00%	-17.00%	-60.00%

Derivatives_Open_crude_oil_der

Derivatives - Open crude oil derivative positions (Details) (June 2013 - March 2015, crude oil derivative positions, USD $)	Dec. 31, 2013
	bbl
June 2013 - March 2015, crude oil derivative positions	'
Volume	8,000
Fixed Swap Price	$90

Derivatives_Net_fair_value_of_

Derivatives - Net fair value of the Companybs derivative assets and liabilities (Details) (USD $)	Dec. 31, 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	36,186	'
Noncurrent liabilities: Derivative instruments	1,837	'
Total Liabilities	$38,023	'

Derivatives_Loss_on_derivative

Derivatives - Loss on derivative instruments included in the consolidated statements of operations (Details) (USD $)	3 Months Ended		9 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Derivatives - Loss On Derivative Instruments Included In Consolidated Statements Of Operations Details	'	'	'	'
Unrealized loss on open non-hedge derivative instruments	'	'	($38,023)	'
Loss on settlement of non-hedge derivative instruments	'	'	-41,261	'
Loss on derivative instruments	$7,404	'	($79,284)	'

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				9 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Notes to Financial Statements	'	'	'	'	'	'
Net income (loss)	$88,659	$194,051	$16,131	($39,580)	$298,841	($102,034)
Weighted average common shares outstanding b basic	2,036,866	'	'	2,036,938	2,036,866	2,036,277
Effect of the assumed exercise of dilutive stock options	6,506	'	'	'	3,458	'
Weighted average common shares outstanding b dilutive	2,043,372	'	'	2,036,938	2,040,324	2,036,277
Earnings (loss) per common share: Basic	$0.04	'	'	($0.02)	$0.15	($0.05)
Earnings (loss) per common share: Diluted	$0.04	'	'	($0.02)	$0.15	($0.05)