Mexco Energy (MXC) 10-Q 13 Nov 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	6 Months Ended
	Sep. 30, 2014	Aug. 06, 2014	Sep. 30, 2013
Document And Entity Information	'	'	'
Entity Registrant Name	'MEXCO ENERGY CORPORATION	'	'
Entity Central Index Key	'0000066418	'	'
Document Type	'10-Q	'	'
Document Period End Date	30-Sep-14	'	'
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	'	'	$5,966,732
Entity Common Stock, Shares Outstanding	'	2,038,266	'
Document Fiscal Period Focus	'Q2	'	'
Document Fiscal Year Focus	'2014	'	'

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2014	Mar. 31, 2014
ASSETS	'	'
Cash and cash equivalents	$154,986	$156,082
Accounts receivable:	'	'
Oil and gas sales	601,195	628,098
Trade	9,672	18,144
Prepaid costs and expenses	104,860	28,804
Derivatives – Short-term	3,010	'
Total current assets	873,723	831,128
Property and equipment, at cost	'	'
Oil and gas properties, using the full cost method	36,415,229	35,460,741
Other	98,401	94,356
Accumulated depreciation, depletion and amortization	-19,098,685	-18,475,174
Property and equipment, net	17,414,945	17,079,923
Other noncurrent assets	19,692	7,239
Total Assets	18,308,360	17,918,290
LIABILITIES AND STOCKHOLDERS' EQUITY	'	'
Accounts payable and accrued expenses	343,266	257,431
Income tax payable	'	6,500
Derivative instruments	'	44,981
Total current liabilities	343,266	308,912
Long-term debt	2,600,000	2,425,000
Asset retirement obligations	945,733	926,577
Deferred income tax liabilities	850,546	858,449
Total liabilities	4,739,545	4,518,938
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; 2,104,266 shares issued and 2,038,266 shares outstanding as of September 30, 2014 and March 31, 2014, respectively	1,052,133	1,052,133
Additional paid-in capital	6,985,798	6,921,645
Retained earnings	5,871,876	5,766,566
Treasury stock, at cost (66,000 shares)	-340,992	-340,992
Total stockholders' equity	13,568,815	13,399,352
TOTAL	$18,308,360	$17,918,290

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2014	Mar. 31, 2014
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	2,104,266	2,104,266
Common stock shares outstanding	2,038,266	2,038,266
Treasury stock, shares	66,000	66,000

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		6 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Operating revenues:	'	'	'	'
Oil and gas	$987,942	$1,108,102	$1,994,597	$2,092,371
Other	18,157	13,344	29,335	25,600
Total operating revenues	1,006,099	1,121,446	2,023,932	2,117,971
Operating expenses:	'	'	'	'
Production	326,571	312,954	637,349	621,590
Accretion of asset retirement obligations	4,710	11,020	9,544	21,937
Depreciation, depletion, and amortization	322,696	298,489	623,511	593,522
General and administrative	291,994	286,615	642,330	598,085
Total operating expenses	945,971	909,078	1,912,734	1,835,134
Operating profit	60,128	212,368	111,198	282,837
Other income (expenses):	'	'	'	'
Interest income	2	105	4	107
Interest expense	-15,776	-18,202	-31,546	-38,332
Gain (loss) on derivative instruments	51,380	-59,295	17,751	-86,687
Net other income (expense)	35,606	-77,392	-13,791	-124,912
Earnings before provision for income taxes	95,734	134,976	97,407	157,925
Current	'	'	'	'
Deferred	9,478	-59,075	-7,903	-52,257
TOTAL	9,478	-59,075	-7,903	-52,257
Net income	$86,256	$194,051	$105,310	$210,182
Income per common share:	'	'	'	'
Basic	$0.04	$0.10	$0.05	$0.10
Diluted	$0.04	$0.10	$0.05	$0.10
Weighted average common shares outstanding:	'	'	'	'
Basic	2,038,266	2,036,866	2,038,266	2,036,866
Diluted	2,053,158	2,039,108	2,054,003	2,038,800

CONSOLIDATED_STATEMENTS_OF_CHA

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $)	Common Stock Par Value	Treasury Stock	Additional Paid-In Capital	Retained Earnings	Total
Beginning balance, Amount at Mar. 31, 2014	$1,052,133	($340,992)	$6,921,645	$5,766,566	$13,399,352
Beginning balance, Shares at Mar. 31, 2014	2,104,266	-66,000	'	'	2,038,266
Net income	'	'	'	19,054	19,054
Stock based compensation	'	'	24,276	'	24,276
Ending balance, Amount at Jun. 30, 2014	1,052,133	-340,992	6,945,921	5,785,620	13,442,682
Ending balance, Shares at Jun. 30, 2014	2,104,266	-66,000	'	'	2,038,266
Net income	'	'	'	86,256	86,256
Stock based compensation	'	'	39,877	'	39,877
Ending balance, Amount at Sep. 30, 2014	$1,052,133	($340,992)	$6,985,798	$5,871,876	$13,568,815
Ending balance, Shares at Sep. 30, 2014	2,104,266	-66,000	'	'	2,038,266

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Cash flows from operating activities:	'	'
Net income	$105,310	$210,182
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Deferred income tax benefit	-7,903	-52,257
Stock-based compensation	64,153	82,238
Depreciation, depletion and amortization	623,511	593,522
Accretion of asset retirement obligations	9,544	21,937
(Gain) loss on derivative instruments	-17,751	86,687
Changes in assets and liabilities:	'	'
Decrease (increase) in accounts receivable	35,375	-164,002
Increase in prepaid expenses	-76,056	-53,728
(Increase) decrease in noncurrent assets	-12,453	63,017
Decrease in income tax payable	-6,500	'
(Decrease) increase in accounts payable and accrued expenses	-8,889	69,511
Net cash provided by operating activities	708,341	857,107
Cash flows from investing activities:	'	'
Additions to oil and gas properties	-826,473	-786,097
Additions to other property and equipment	-4,046	-931
Settlement of asset retirement obligations	-35,897	-2,071
Settlement of derivatives	-30,240	-30,071
Proceeds from sale of oil and gas properties and equipment	12,219	743,287
Net cash used in investing activities	-884,437	-75,883
Cash flows from financing activities:	'	'
Reduction of long-term debt	-150,000	-725,000
Proceeds from long-term debt	325,000	'
Net cash provided by (used in) financing activities	175,000	-725,000
Net (decrease) increase in cash and cash equivalents	-1,096	56,224
Cash and cash equivalents at beginning of period	156,082	166,406
Cash and cash equivalents at end of period	154,986	222,630
Supplemental disclosure of cash flow information:	'	'
Cash paid for interest	30,989	39,424
Income Taxes Paid	'	'
Non-cash investing and financing activities:	'	'
Asset retirement obligations	$7,255	$10,672

Nature_of_Operations

Nature of Operations	6 Months Ended
	Sep. 30, 2014
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 thirteen 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.

Basis_of_Presentation_and_Sign

Basis of Presentation and Significant Accounting Policies	6 Months Ended
	Sep. 30, 2014
Accounting Policies [Abstract]	'
Basis of Presentation and 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 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, 2014, and the results of its operations and cash flows for the interim periods ended September 30, 2014 and 2013. The financial statements as of September 30, 2014 and for the three and six month periods ended September 30, 2014 and 2013 are unaudited. The consolidated balance sheet as of March 31, 2014 was derived from the audited balance sheet filed in the Company’s 2014 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.
	Reclassifications. Certain amounts in prior years’ financial statements have been reclassified to conform with the current year’s presentation. These reclassifications had no effect on previously reported results of operations, retained earnings or net cash flows.
	Recent Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Topic 606: Revenue from Contracts with Customers. ASU No. 2014-09 is effective for Mexco as of April 1, 2017. Management is evaluating the effect, if any this pronouncement will have on our consolidated financial statements.
	In August 2014, the FABS issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 will explicitly require management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosure in certain circumstances. The new standard will be effective for all entities in the first annual period ending after December 15, 2016. Earlier adoption is permitted. We are currently evaluating the impact of the adoption of ASU 2014-15.

Asset_Retirement_Obligations

Asset Retirement Obligations	6 Months Ended
	Sep. 30, 2014
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 2015:
	Carrying amount of asset retirement obligations as of April 1, 2014	$	961,577
	Liabilities incurred		7,255
	Liabilities settled		(22,643	)
	Accretion expense		9,544
	Carrying amount of asset retirement obligations as of September 30, 2014		955,733
	Less: Current portion		10,000
	Non-Current asset retirement obligation	$	945,733
	The ARO is included in the Consolidated Balance Sheets with the current portion being included in the accounts payable and other accrued expenses.

Stock_Options

Stock Options	6 Months Ended
	Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Stock-based Compensation	'
	4. Stock-based Compensation
	The Company recognized compensation expense of $39,877 and $42,866 in general and administrative expense in the Consolidated Statements of Operations for the three months ended September 30, 2014 and 2013, respectively. Compensation expense recognized for the six months ended September 30, 2014 and 2013 was $64,153 and $82,238, respectively. The total cost related to non-vested awards not yet recognized at September 30, 2014 totals approximately $284,839 which is expected to be recognized over a weighted average of 2.86 years.
	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, 2014 and 2013. All such amounts represent the weighted average amounts.
		Six Months Ended
		30-Sep
		2014	2013
	Grant-date fair value	$5.59	$4.75
	Volatility factor	76.23%	77.01%
	Dividend yield	-	-
	Risk-free interest rate	2.52%	1.74%
	Expected term (in years)	10	7
	The following table is a summary of activity of stock options for the six months ended September 30, 2014:
			Number		Weighted		Weighted Average Remaining Contract Life in Years		Aggregate
			of		Average				Intrinsic
			Shares		Exercise Price				Value
	Outstanding at March 31, 2014			113,600	$	6.35		7.66	$	154,062
	Granted			40,000		7
	Exercised			-		-
	Forfeited or Expired			-		-
	Outstanding at September 30, 2014			153,600	$	6.52		7.86	$	61,118
	Vested at September 30, 2014			67,350	$	6.37		6.62	$	37,243
	Exercisable at September 30, 2014			67,350	$	6.37		6.62	$	37,243
	During the six months ended September 30, 2014, stock options covering 40,000 shares were granted. During the six months ended September 30, 2013, stock options covering 35,000 shares were granted.
	Outstanding options at September 30, 2014 expire between August 2020 and August 2024 and have exercise prices ranging from $5.98 to $7.00.

Fair_Value_of_Financial_Instru

Fair Value of Financial Instruments	6 Months Ended
	Sep. 30, 2014
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.
	The carrying amount reported in the accompanying consolidated balance sheets for cash and cash equivalents, accounts receivable and accounts payable approximates fair value because of the immediate or short-term maturity of these financial instruments.
	The fair value amount reported in the accompanying consolidated balance sheets for long term debt approximates fair value because the actual interest rates do not significantly differ from current rates offered for instruments with similar characteristics and is deemed to use Level 2 inputs. See the Company’s Note 6 on Credit Facility for further discussion.
	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.

Credit_Facility

Credit Facility	6 Months Ended
	Sep. 30, 2014
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 $6,300,000 with no monthly commitment reductions and a borrowing base evaluated annually, currently set at $6,300,000. 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.
	The Agreement was renewed eight times with the eighth amendment on September 10, 2014, which revised the maturity date to November 30, 2016. 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 2.65% on September 30, 2014. 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 and is included in the consolidated statements of operations under the caption “General and administrative” expenses. Availability of this line of credit at September 30, 2014 was $3,544,333. No principal payments are anticipated to be required through November 30, 2016.
	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, 2014. 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, 2014, two letters of credit for $50,000 and $105,667, in lieu of a plugging bond with the Texas Railroad Commission (“TRRC”) covering the properties the Company operates is 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 following table is a summary of activity on the Bank of America, N.A. line of credit for the six months ended September 30, 2014:
		Principal
	Balance at March 31, 2014:	$	2,425,000
	Borrowings		325,000
	Repayments		(150,000	)
	Balance at September 30, 2014:	$	2,600,000
	The balance outstanding on the line of credit as of October 31, 2014 was $4,175,000.

Income_Taxes

Income Taxes	6 Months Ended
	Sep. 30, 2014
Income Tax Disclosure [Abstract]	'
Income Taxes	'
	7. Income Taxes
	The income tax provision consists of the following for the three and six months ended September 30, 2014 and 2013:
			Three Months Ended						Six Months Ended
			30-Sep						30-Sep
			2014			2013			2014			2013
		Current income tax expense	$	-		$	-		$	-		$	-
		Deferred income tax expense (benefit)		9,478			(59,075	)		(7,903	)		(52,257	)
	Total income tax provision:		$	9,478		$	(59,075	)	$	(7,903	)	$	(52,257	)
	Effective tax rate			10	%		(44	%)		(8	%)		(33	%)
	The change in our effective tax rate was primarily the result of a change in statutory depletion carryforward for the six months ended September 30, 2014.

Derivatives

Derivatives	6 Months Ended
	Sep. 30, 2014
Derivatives	'
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 “Gain (loss) on derivative instruments.”
	The Company has used 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., which the Company believes is an acceptable credit risk.
	As of September 30, 2014 the Company had the following open crude oil derivative positions with respect to future production based on NYMEX WTI pricing:
				Volume			Fixed Swap
				(bbls)			Price
	Production Period
		October 2014 – March 2015			3,000		$	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,
				2014			2014
		Current assets: Derivative instruments		$	3,010		$	-
		Noncurrent assets: Derivative instruments			-		$	7,239
	Total assets			$	3,010		$	7,239
		Current liabilities: Derivative instruments		$	-		$	44,981
		Noncurrent liabilities: Derivative instruments			-		$	-
	Total liabilities			$	-		$	44,981
	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, 2014 and 2013:
			Three Months Ended						Six Months Ended
			30-Sep						30-Sep
			2014			2013			2014			2013
	Unrealized gain (loss) on open non-hedge		$	62,131		$	(35,559	)	$	47,991		$	(56,616	)
	derivative instruments
	Loss on settlement of non-hedge derivative instruments			(10,751	)		(23,736	)		(30,240	)		(30,071	)
	Total gain (loss) on derivative instruments		$	51,380		$	(59,295	)	$	17,751		$	(86,687	)

Related_Party_Transactions

Related Party Transactions	6 Months Ended
	Sep. 30, 2014
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, 2014 and 2013 was $55,641 and $62,175, respectively.

Income_Per_Common_Share

Income Per Common Share	6 Months Ended
	Sep. 30, 2014
Income per common share:	'
Income Per Common Share	'
	10. Income Per Common Share
	The Company’s basic net income per share has been computed based on the weighted average number of common shares outstanding during the period. Diluted net income 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. 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 per share and diluted income per share for the three and six month periods ended September 30, 2014 and 2013.
			Three Months Ended				Six Months Ended
			30-Sep				30-Sep
			2014		2013		2014		2013
	Net income		$	86,256	$	194,051	$	105,310	$	210,182
	Shares outstanding:
	Weighted avg. common shares outstanding – basic			2,038,266		2,036,866		2,038,266		2,036,866
	Effect of the assumed exercise of dilutive stock options			14,892		2,242		15,737		1,934
	Weighted avg. common shares outstanding – dilutive			2,053,158		2,039,108		2,054,003		2,038,800
	Earnings per common share:
		Basic	$	0.04	$	0.1	$	0.05	$	0.1
		Diluted	$	0.04	$	0.1	$	0.05	$	0.1
	For the three months ended September 30, 2014, 105,000 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 $6.60 at September 30, 2014. 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.

Subsequent_Events

Subsequent Events	6 Months Ended
	Sep. 30, 2014
Subsequent Events [Abstract]	'
Subsequent Events	'
	11. Subsequent Events
	In October 2014, Mexco purchased various royalty interests at a price of $1,000,000 covering approximately 1,800 wells in 27 counties of Texas. Of these oil and gas reserves, approximately 77% is natural gas and 23% oil. Mexco believes that there is potential for further development of a number of these royalties especially through horizontal and vertical drilling and fracturing. These royalty interests are free of expenses to Mexco for drilling and operations. Approximately 15% of the net revenue from these royalties comes from 237 wells located in Reagan County, Texas. Also included are interests in 21 wells in Glasscock County, Texas. Both of these counties are in the horizontal Spraberry Wolfcamp trend. The second largest source of net income is in Webb County, Texas from 202 wells producing 13.5 % of net income. Royalties in Karnes County, Texas produce approximately 5% of net revenue from 30 wells. Both of these counties are in the Eagle Ford trend.
	Also in October 2014, Mexco purchased for $525,000 long lived non-operated working interests of 12.5% (approximately 10% net revenue interest). Six wells are producing oil from the Lower Tubb formation in Pecos County, Texas. These wells are on 20-acre spacing with four additional proven undeveloped locations at approximately 3,600 foot depth on the 190 acres. The operator has agreed to pay for the drilling and completion costs of one additional well and fracture treatment of one of the existing wells, as well as pay all operating expenses of all wells on these leases. In addition, Mexco will receive 100% of the gross disposal fees from one disposal well located on these properties paid by an adjacent operator. Mexco would be responsible for payment of the cost of drilling and completion on the balance of any development wells.
	Both of these acquisitions were funded through bank borrowings on Mexco’s line of credit.

Significant_Accounting_Policie

Significant Accounting Policies (Policies)	6 Months Ended
	Sep. 30, 2014
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 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, 2014, and the results of its operations and cash flows for the interim periods ended September 30, 2014 and 2013. The financial statements as of September 30, 2014 and for the three and six month periods ended September 30, 2014 and 2013 are unaudited. The consolidated balance sheet as of March 31, 2014 was derived from the audited balance sheet filed in the Company’s 2014 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.
Reclassifications	'
	Reclassifications. Certain amounts in prior years’ financial statements have been reclassified to conform with the current year’s presentation. These reclassifications had no effect on previously reported results of operations, retained earnings or net cash flows.
Recent Accounting Pronouncements	'
	Recent Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Topic 606: Revenue from Contracts with Customers. ASU No. 2014-09 is effective for Mexco as of April 1, 2017. Management is evaluating the effect, if any this pronouncement will have on our consolidated financial statements.
	In August 2014, the FABS issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 will explicitly require management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosure in certain circumstances. The new standard will be effective for all entities in the first annual period ending after December 15, 2016. Earlier adoption is permitted. We are currently evaluating the impact of the adoption of ASU 2014-15.

Asset_Retirement_Obligations_T

Asset Retirement Obligations (Tables)	6 Months Ended
	Sep. 30, 2014
Asset Retirement Obligation Disclosure [Abstract]	'
Rollforward of the asset retirement obligations	'
	Carrying amount of asset retirement obligations as of April 1, 2014	$	961,577
	Liabilities incurred		7,255
	Liabilities settled		(22,643	)
	Accretion expense		9,544
	Carrying amount of asset retirement obligations as of September 30, 2014		955,733
	Less: Current portion		10,000
	Non-Current asset retirement obligation	$	945,733

Stockbased_Compensation_Tables

Stock-based Compensation (Tables)	6 Months Ended
	Sep. 30, 2014
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
		2014	2013
	Grant-date fair value	$5.59	$4.75
	Volatility factor	76.23%	77.01%
	Dividend yield	-	-
	Risk-free interest rate	2.52%	1.74%
	Expected term (in years)	10	7
Summary of activity of stock options	'
			Number		Weighted		Weighted Average Remaining Contract Life in Years		Aggregate
			of		Average				Intrinsic
			Shares		Exercise Price				Value
	Outstanding at March 31, 2014			113,600	$	6.35		7.66	$	154,062
	Granted			40,000		7
	Exercised			-		-
	Forfeited or Expired			-		-
	Outstanding at September 30, 2014			153,600	$	6.52		7.86	$	61,118
	Vested at September 30, 2014			67,350	$	6.37		6.62	$	37,243
	Exercisable at September 30, 2014			67,350	$	6.37		6.62	$	37,243

Credit_Facility_Tables

Credit Facility (Tables)	6 Months Ended
	Sep. 30, 2014
Debt Disclosure [Abstract]	'
Summary of activity on the Bank of America, N.A. line of credit	'
		Principal
	Balance at March 31, 2014:	$	2,425,000
	Borrowings		325,000
	Repayments		(150,000	)
	Balance at September 30, 2014:	$	2,600,000

Income_Taxes_Tables

Income Taxes (Tables)	6 Months Ended
	Sep. 30, 2014
Income Tax Disclosure [Abstract]	'
Reconciliation of the provision for income taxes	'
			Three Months Ended						Six Months Ended
			30-Sep						30-Sep
			2014			2013			2014			2013
		Current income tax expense	$	-		$	-		$	-		$	-
		Deferred income tax expense (benefit)		9,478			(59,075	)		(7,903	)		(52,257	)
	Total income tax provision:		$	9,478		$	(59,075	)	$	(7,903	)	$	(52,257	)
	Effective tax rate			10	%		(44	%)		(8	%)		(33	%)

Derivatives_Tables

Derivatives (Tables)	6 Months Ended
	Sep. 30, 2014
Derivatives Tables	'
Open crude oil derivative positions with respect to future production based on NYMEX WTI pricing	'
				Volume			Fixed Swap
				(bbls)			Price
	Production Period
		October 2014 – March 2015			3,000		$	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,
				2014			2014
		Current assets: Derivative instruments		$	3,010		$	-
		Noncurrent assets: Derivative instruments			-		$	7,239
	Total assets			$	3,010		$	7,239
		Current liabilities: Derivative instruments		$	-		$	44,981
		Noncurrent liabilities: Derivative instruments			-		$	-
	Total liabilities			$	-		$	44,981
Loss on derivative instruments included in the consolidated statements of operations	'
			Three Months Ended						Six Months Ended
			30-Sep						30-Sep
			2014			2013			2014			2013
	Unrealized gain (loss) on open non-hedge		$	62,131		$	(35,559	)	$	47,991		$	(56,616	)
	derivative instruments
	Loss on settlement of non-hedge derivative instruments			(10,751	)		(23,736	)		(30,240	)		(30,071	)
	Total gain (loss) on derivative instruments		$	51,380		$	(59,295	)	$	17,751		$	(86,687	)

Income_Per_Common_Share_Tables

Income Per Common Share (Tables)	6 Months Ended
	Sep. 30, 2014
Income 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
			2014		2013		2014		2013
	Net income		$	86,256	$	194,051	$	105,310	$	210,182
	Shares outstanding:
	Weighted avg. common shares outstanding – basic			2,038,266		2,036,866		2,038,266		2,036,866
	Effect of the assumed exercise of dilutive stock options			14,892		2,242		15,737		1,934
	Weighted avg. common shares outstanding – dilutive			2,053,158		2,039,108		2,054,003		2,038,800
	Earnings per common share:
		Basic	$	0.04	$	0.1	$	0.05	$	0.1
		Diluted	$	0.04	$	0.1	$	0.05	$	0.1

Stockbased_Compensation_Detail

Stock-based Compensation (Details Narrative) (USD $)	3 Months Ended		6 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'	'	'	'
Compensation expense	$39,877	$42,866	$64,153	$82,238
Total cost related to non-vested awards	$284,839	'	$284,839	'
Non-vested awards, weighted average period of recognition	'	'	'2 years 314 days	'
Options outstanding, exercise price, high	'	'	$7	'
Options outstanding, exercise price, low	'	'	$5.98	'
Options outstanding, expiration date, start	'	'	1-Aug-20	'
Options outstanding, expiration date, end	'	'	1-Aug-24	'

Credit_Facility_Details_Narrat

Credit Facility (Details Narrative) (USD $)	Sep. 30, 2014	Mar. 31, 2014	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2014
			Bank of America credit agreement	Texas Railroad Commission letter of credit	Texas Railroad Commission second letter of credit
Credit facility maximum capacity	'	'	$6,300,000	'	'
Credit facility current capacity	'	'	4,175,000	'	'
Credit facility remaining capacity	'	'	3,544,333	'	'
Interest Rate as of period end	'	'	2.65%	'	'
Commitment Fee Percentage	'	'	0.50%	'	'
Credit outstanding	$2,600,000	$2,425,000	'	$50,000	$105,667

Related_Party_Transactions_Det

Related Party Transactions (Details Narrative) (USD $)	6 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Notes to Financial Statements	'	'
Totals billed to and reimbursed by the stockholder	$55,641	$62,175

Income_Per_Common_Share_Detail

Income Per Common Share (Details Narrative) (USD $)	3 Months Ended	6 Months Ended
	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2013
Income Per Common Share Details Narrative	'	'	'
Shares relating to stock options excluded in the computation of diluted net income per share	105,000	'	105,000
Anti-dilutive stock options, weighted average exercise price	'	$6.60	$6.38

Rollforward_of_Asset_Retiremen

Rollforward of Asset Retirement Obligations (Details) (USD $)	3 Months Ended		6 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Rollforward Of Asset Retirement Obligations Details	'	'	'	'
Carrying amount of asset retirement obligations as of April 1	'	'	$961,577	'
Liabilities incurred	'	'	7,255	'
Liabilities settled	'	'	-22,643	'
Accretion expense	4,710	11,020	9,544	21,937
Carrying amount of asset retirement obligations as of June 30	955,733	'	955,733	'
Less: Current portion	'	'	10,000	'
Non-Current asset retirement obligation	'	'	$945,733	'

Stock_Options_Summary_of_the_g

Stock Options - Summary of the grant-date fair value of stock options granted (Details) (USD $)	6 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'	'
Grant-date fair value	$5.59	$4.75
Volatility factor	76.23%	77.01%
Dividend yield	'	'
Risk-free interest rate	2.52%	1.74%
Expected term (in years)	'10 years	'7 years

Stockbased_Compensation_Summar

Stock-based Compensation - Summary of activity of stock options (Details) (USD $)	3 Months Ended	6 Months Ended
	Mar. 31, 2014	Sep. 30, 2014
Notes to Financial Statements	'	'
Number of Shares Outstanding	113,600	153,600
Weighted Average Exercise Price Per Share	$6.35	$6.52
Weighted Aggregate Average Remaining Contract Life in Years	'7 years 241 days	'7 years 314 days
Intrinsic Value	$154,062	$61,118
Shares granted in period	'	40,000
Shares granted - weighted average exercise price	'	$7
Vested - Shares Outstanding	'	67,350
Vested - Weighted Average Exercise Price Per Share	'	$6.37
Vested - Weighted Aggregate Average Remaining Contract Life in Years	'	'6 years 226 days
Vested - Intrinsic Value	'	37,243
Exercisable - Shares Outstanding	'	67,350
Exercisable - Weighted Average Exercise Price Per Share	'	$6.37
Exercisable - Weighted Aggregate Average Remaining Contract Life in Years	'	'6 years 226 days
Exercisable - Intrinsic Value	'	$37,243

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, 2014
Notes to Financial Statements	'
Balance at beginning of period:	$2,425,000
Borrowings	325,000
Repayments	-150,000
Balance at end of period:	$2,600,000

Income_Taxes_Income_tax_provis

Income Taxes - Income tax provision (Details) (USD $)	3 Months Ended		6 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Notes to Financial Statements	'	'	'	'
Current income tax expense	'	'	'	'
Deferred income tax expense (benefit)	9,478	-59,075	-7,903	-52,257
Total income tax provision	$9,478	($59,075)	($7,903)	($52,257)
Effective tax rate	10.00%	-44.00%	-8.00%	-33.00%

Derivatives_Open_crude_oil_der

Derivatives - Open crude oil derivative positions (Details) (USD $)	Sep. 30, 2014
	bbl
Volume	3,000
Fixed Swap Price	$90

Derivatives_Net_fair_value_of_

Derivatives - Net fair value of the Companybs derivative assets and liabilities (Details) (USD $)	Sep. 30, 2014	Mar. 31, 2014
Derivatives - Net Fair Value Of Companys Derivative Assets And Liabilities Details	'	'
Current assets: Derivative instruments	$3,010	'
Noncurrent assets: Derivative instruments	'	7,239
Total assets	3,010	7,239
Current liabilities: Derivative instruments	'	44,981
Noncurrent liabilities: Derivative instruments	'	'
Total Liabilities	'	$44,981

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, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Derivatives - Loss On Derivative Instruments Included In Consolidated Statements Of Operations Details	'	'	'	'
Unrealized loss on open non-hedge derivative instruments	$62,131	($35,559)	$47,991	($56,616)
Loss on settlement of non-hedge derivative instruments	-10,751	-23,736	-30,240	-30,071
Loss on derivative instruments	$51,380	($59,295)	$17,751	($86,687)

Summary_of_Significant_Account

Summary of Significant Accounting Policies - Income per common share (Details) (USD $)	3 Months Ended			6 Months Ended
	Sep. 30, 2014	Jun. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Accounting Policies [Abstract]	'	'	'	'	'
Net (loss) income	$86,256	$19,054	$194,051	$105,310	$210,182
Weighted average common shares outstanding - basic	2,038,266	'	2,036,866	2,038,266	2,036,866
Effect of the assumed exercise of dilutive stock options	14,892	'	2,242	15,737	1,934
Weighted average common shares outstanding - dilutive	2,053,158	'	2,039,108	2,054,003	2,038,800
(Loss) income per common share: Basic	$0.04	'	$0.10	$0.05	$0.10
(Loss) income per common share: Diluted	$0.04	'	$0.10	$0.05	$0.10