Mexco Energy (MXC) 10-Q 13 Feb 15 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Dec. 31, 2014	Feb. 13, 2015
Document And Entity Information
Entity Registrant Name	MEXCO ENERGY CORPORATION
Entity Central Index Key	66418
Document Type	10-Q
Document Period End Date	31-Dec-14
Amendment Flag	FALSE
Current Fiscal Year End Date	-28
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 Common Stock, Shares Outstanding		2,038,266
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2014

CONSOLIDATED_BALANCE_SHEETS_Un

CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $)	Dec. 31, 2014	Mar. 31, 2014
Current assets
Cash and cash equivalents	$105,133	$156,082
Accounts receivable:
Oil and gas sales	497,898	628,098
Trade	51,190	18,144
Prepaid costs and expenses	76,351	28,804
Derivatives – Short-term	57,849	0
Total current assets	788,421	831,128
Property and equipment, at cost
Oil and gas properties, using the full cost method	40,140,057	35,460,741
Other	99,403	94,356
Accumulated depreciation, depletion and amortization	-19,451,843	-18,475,174
Property and equipment, net	20,787,617	17,079,923
Other noncurrent assets	100,778	7,239
Total Assets	21,676,816	17,918,290
Current liabilities
Accounts payable and accrued expenses	433,719	257,431
Income tax payable	0	6,500
Derivative instruments	0	44,981
Total current liabilities	433,719	308,912
Long-term debt	5,750,000	2,425,000
Asset retirement obligations	1,217,138	926,577
Deferred income tax liabilities	836,690	858,449
Total liabilities	8,237,547	4,518,938
Stockholders' equity
Preferred stock - $1.00 par value; 10,000,000 shares authorized; none outstanding	0	0
Common stock - $0.50 par value; 40,000,000 shares authorized; 2,104,266 shares issued and 2,038,266 shares outstanding as of December 31, 2014 and March 31, 2014	1,052,133	1,052,133
Additional paid-in capital	7,031,573	6,921,645
Retained earnings	5,696,555	5,766,566
Treasury stock, at cost (66,000 shares)	-340,992	-340,992
Total stockholders' equity	13,439,269	13,399,352
Total liabilities and stockholders' equity	$21,676,816	$17,918,290

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Dec. 31, 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 (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Operating revenues:
Oil and gas	$790,335	$948,633	$2,784,932	$3,041,004
Other	9,349	13,393	38,684	38,993
Total operating revenues	799,684	962,026	2,823,616	3,079,997
Operating expenses:
Production	377,438	291,828	1,014,786	913,418
Accretion of asset retirement obligations	8,119	11,074	17,663	33,011
Depreciation, depletion, and amortization	353,158	277,557	976,669	871,079
General and administrative	301,193	275,489	943,525	873,573
Total operating expenses	1,039,908	855,948	2,952,643	2,691,081
Operating (loss) income	-240,224	106,078	-129,027	388,916
Other income (expenses):
Interest income	4	4	9	111
Interest expense	-29,077	-15,353	-60,623	-53,685
Gain (loss) on derivative instruments	80,120	7,404	97,871	-79,284
Net other income (expense)	51,047	-7,945	37,257	-132,858
(Loss) earnings before provision for income taxes	-189,177	98,133	-91,770	256,058
Income tax (benefit) expense:
Current	0	0	0	0
Deferred	-13,856	9,474	-21,759	-42,783
TOTAL	-13,856	9,474	-21,759	-42,783
Net (loss) income	($175,321)	$88,659	($70,011)	$298,841
(Loss) earnings per share:
Basic	($0.09)	$0.04	($0.03)	$0.15
Diluted	($0.09)	$0.04	($0.03)	$0.15
Weighted average common shares outstanding:
Basic	2,038,266	2,036,866	2,038,266	2,036,866
Diluted	2,038,266	2,043,372	2,038,266	2,040,324

CONSOLIDATED_STATEMENT_OF_CHAN

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS EQUITY (Unaudited) (USD $)	Common Stock	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
Net income				86,256	86,256
Stock based compensation			39,877
Ending balance, Amount at Sep. 30, 2014	1,052,133	-340,992	6,985,798	5,871,876	86,256
Ending balance, Shares at Sep. 30, 2014	2,104,266	-66,000			2,038,266
Net income				-175,321	-175,321
Stock based compensation			45,775		45,775
Ending balance, Amount at Dec. 31, 2014	$1,052,133	($340,992)	$7,031,573	$5,696,555	$13,439,269
Ending balance, Shares at Dec. 31, 2014	2,104,266	-66,000			2,038,266

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	9 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net (loss) income	($70,011)	$298,841
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Deferred income tax benefit	-21,759	-42,783
Stock-based compensation	109,928	119,318
Depreciation, depletion and amortization	976,669	871,079
Accretion of asset retirement obligations	17,663	33,011
(Gain) loss on derivative instruments	-97,871	79,284
Changes in assets and liabilities:
Decrease (increase) in accounts receivable	97,154	-211,598
Increase in prepaid expenses	-47,547	-28,541
(Increase) decrease in noncurrent assets	0	46,778
Decrease in income tax payable	-6,500	0
Decrease in accounts payable and accrued expenses	-10,729	-25,577
Settlement of asset retirement obligations	-38,476	-2,655
Net cash provided by operating activities	908,521	1,137,157
Cash flows from investing activities:
Additions to oil and gas properties	-4,289,799	-988,955
Additions to other property and equipment	-5,047	-1,218
Settlement of derivatives	-4,959	-41,261
Proceeds from sale of oil and gas properties and equipment	15,335	963,344
Net cash used in investing activities	-4,284,470	-68,090
Cash flows from financing activities:
Reduction of long-term debt	-150,000	-1,025,000
Proceeds from long-term debt	3,475,000	0
Net cash provided by (used in) financing activities	3,325,000	-1,025,000
Net (decrease) increase in cash and cash equivalents	-50,949	44,067
Cash and cash equivalents at beginning of period	156,082	166,406
Cash and cash equivalents at end of period	105,133	210,473
Supplemental disclosure of cash flow information:
Cash paid for interest	53,144	55,630
Income Taxes Paid	0	0
Non-cash investing and financing activities:
Asset retirement obligations	$270,924	$13,057

1_Nature_of_Operations

1. Nature of Operations	9 Months Ended
	Dec. 31, 2014
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 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.

2_Basis_of_Presentation_and_Si

2. Basis of Presentation and Significant Accounting Policies	9 Months Ended
	Dec. 31, 2014
Accounting Policies [Abstract]
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 December 31, 2014, and the results of its operations and cash flows for the interim periods ended December 31, 2014 and 2013. The financial statements as of December 31, 2014 and for the three and nine month periods ended December 31, 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.
	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.

3_Asset_Retirement_Obligations

3. Asset Retirement Obligations	9 Months Ended
	Dec. 31, 2014
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 2015:
	Carrying amount of asset retirement obligations as of April 1, 2014	$       961,577
	Liabilities incurred	270,924
	Liabilities settled	-23,026
	Accretion expense	17,663
	Carrying amount of asset retirement obligations as of December 31, 2014	1,227,138
	Less: Current portion	10,000
	Non-Current asset retirement obligation	$    1,217,138
	The ARO is included on the consolidated balance sheets with the current portion being included in the accounts payable and other accrued expenses.

4_Stockbased_Compensation

4. Stock-based Compensation	9 Months Ended
	Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based Compensation
	The Company recognized stock-based compensation expense of $45,775 and $37,080 in general and administrative expense in the Consolidated Statements of Operations for the three months ended December 31, 2014 and 2013, respectively. Stock-based compensation expense recognized for the nine months ended December 31, 2014 and 2013 was $109,928 and $119,318, respectively. The total cost related to non-vested awards not yet recognized at December 31, 2014 totals $239,064 which is expected to be recognized over a weighted average of 2.84 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 nine months ended December 31, 2014 and 2013. All such amounts represent the weighted average amounts.
		Nine Months Ended
		31-Dec
		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 nine months ended December 31, 2014:
			Number of Shares	Weighted Average Exercise Price	Weighted Average Remaining Contract Life in Years	Aggregate Intrinsic Value
	Outstanding at March 31, 2014		113,600	$         6.35	7.66	$  154,062
		Granted	40,000	7
		Exercised	-	-
		Forfeited or Expired	-	-
	Outstanding at December 31, 2014		153,600	$         6.52	7.61	$              -
	Vested at December 31, 2014		77,350	$         6.42	6.44	$              -
	Exercisable at December 31, 2014		77,350	$         6.42	6.44	$              -
	During the nine months ended December 31, 2014, stock options covering 40,000 shares were granted. During the nine months ended December 31, 2013, stock options covering 35,000 shares were granted.
	During the nine months ended December 31, 2014 and 2013, no stock options were exercised. Outstanding options at December 31, 2014 expire between August 2020 and August 2024 and have exercise prices ranging from $5.98 to $7.00.

5_Fair_Value_of_Financial_Inst

5. Fair Value of Financial Instruments	9 Months Ended
	Dec. 31, 2014
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.
	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.

6_Credit_Facility

6. Credit Facility	9 Months Ended
	Dec. 31, 2014
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 $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 2.669% on December 31, 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 December 31, 2014 was $500,000. 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 December 31, 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 December 31, 2014, one letter of credit for $50,000, in lieu of a plugging bond with the Texas Railroad Commission (“TRRC”) covering the properties the Company operates is outstanding under the facility. This letter of credit renews annually. 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 nine months ended December 31, 2014:
			Principal
	Balance at March 31, 2014:		$    2,425,000
		Borrowings	3,475,000
		Repayments	-150,000
	Balance at December 31, 2014:		$     5,750,000

7_Income_Taxes

7. Income Taxes	9 Months Ended
	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Income Taxes	The income tax provision consists of the following for the three and nine months ended December 31, 2014 and 2013:
			Three Months Ended		Nine Months Ended
			31-Dec		31-Dec
			2014	2013	2014	2013
		Current income tax	$               -	$               -	$                 -	$               -
		Deferred income tax expense (benefit)	-13,856	9,474	-21,759	-42,783
	Total income tax provision:		$   (13,856)	$       9,474	$   (21,759)	$   (42,783)
	Effective tax rate		-7%	10%	-24%	-17%
	The change in our effective tax rate was primarily the result of a change in statutory depletion carryforward for the nine months ended December 31, 2014.

8_Derivatives

8. Derivatives	9 Months Ended
	Dec. 31, 2014
Derivatives
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., who the Company believes is an acceptable credit risk.
	As of December 31, 2014 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
		January 2015 – March 2015	1,500	$            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,
			2014	2014
		Current assets:  Derivative instruments	$          57,849	$                 -
		Noncurrent assets:  Derivative instruments	-	7,239
	Total assets		$          57,849	$         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 three and nine months ended December 31, 2014 and 2013:
			Three Months Ended		Nine Months Ended
			31-Dec		31-Dec
			2014	2013	2014	2013
	Unrealized gain (loss) on open non-hedge
	derivative instruments		$54,839	$18,594	$102,830	($38,023)
	Gain (loss) on settlement of non-hedge derivative instruments
			25,281	-11,190	-4,959	-41,261
	Total gain (loss) on derivative instruments		$  80,120	$7,404	$97,871	($79,284)

9_Related_Party_Transactions

9. Related Party Transactions	9 Months Ended
	Dec. 31, 2014
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, 2014 and 2013 was $100,510 and $105,288, respectively.

10_Loss_Income_Per_Common_Shar

10. (Loss) Income Per Common Share	9 Months Ended
	Dec. 31, 2014
(Loss) earnings per share:
(Loss) Income Per Common Share	The Company’s basic net (loss) income per share has been computed by dividing net (loss) income by the weighted average number of common shares outstanding during the period. Diluted net (loss) 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 and is computed by dividing net (loss) income by the weighted average number of common share 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 net (loss) income per share and diluted (loss) income per share for the three and nine month periods ended December 31, 2014 and 2013:
			Three Months Ended		Nine Months Ended
			31-Dec		31-Dec
			2014	2013	2014	2013
	Net (loss) income		($175,321)	$88,659	$   (70,011)	$298,841
	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		-	6,506	-	3,458
	Weighted avg. common shares
	outstanding – dilutive		2,038,266	2,043,372	2,038,266	2,040,324
	(Loss) earnings per common share:
		Basic	$       (0.09)	$        0.04	$       (0.03)	$        0.15
		Diluted	$       (0.09)	$        0.04	$       (0.03)	$        0.15
	Due to a net loss for the three and nine months ended December 31, 2014, the weighted average number of common shares outstanding excludes common stock equivalents because their inclusion would be anti-dilutive. 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 had a weighted average exercise price of $6.42 at December 31, 2013.

11_Subsequent_Events

11. Subsequent Events	9 Months Ended
	Dec. 31, 2014
Subsequent Events [Abstract]
Subsequent Events	The Company’s loan agreement with Bank of America, N.A., which provides for a credit facility of $6,300,000 was amended on February 13, 2015 to revise the maturity date to November 30, 2020.

2_Significant_Accounting_Polic

2. Significant Accounting Policies (Policies)	9 Months Ended
	Dec. 31, 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 December 31, 2014, and the results of its operations and cash flows for the interim periods ended December 31, 2014 and 2013. The financial statements as of December 31, 2014 and for the three and nine month periods ended December 31, 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.
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.

3_Asset_Retirement_Obligations1

3. Asset Retirement Obligations (Tables)	9 Months Ended
	Dec. 31, 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	270,924
	Liabilities settled	-23,026
	Accretion expense	17,663
	Carrying amount of asset retirement obligations as of December 31, 2014	1,227,138
	Less: Current portion	10,000
	Non-Current asset retirement obligation	$    1,217,138

4_Stockbased_Compensation_Tabl

4. Stock-based Compensation (Tables)	9 Months Ended
	Dec. 31, 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		Nine Months Ended
		31-Dec
		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 of Shares	Weighted Average Exercise Price	Weighted Average Remaining Contract Life in Years	Aggregate Intrinsic Value
	Outstanding at March 31, 2014		113,600	$         6.35	7.66	$  154,062
		Granted	40,000	7
		Exercised	-	-
		Forfeited or Expired	-	-
	Outstanding at December 31, 2014		153,600	$         6.52	7.61	$              -
	Vested at December 31, 2014		77,350	$         6.42	6.44	$              -
	Exercisable at December 31, 2014		77,350	$         6.42	6.44	$              -

6_Credit_Facility_Tables

6. Credit Facility (Tables)	9 Months Ended
	Dec. 31, 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	3,475,000
		Repayments	-150,000
	Balance at December 31, 2014:		$     5,750,000

7_Income_Taxes_Tables

7. Income Taxes (Tables)	9 Months Ended
	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Reconciliation of the provision for income taxes			Three Months Ended		Nine Months Ended
			31-Dec		31-Dec
			2014	2013	2014	2013
		Current income tax	$               -	$               -	$                 -	$               -
		Deferred income tax expense (benefit)	-13,856	9,474	-21,759	-42,783
	Total income tax provision:		$   (13,856)	$       9,474	$   (21,759)	$   (42,783)
	Effective tax rate		-7%	10%	-24%	-17%

8_Derivatives_Tables

8. Derivatives (Tables)	9 Months Ended
	Dec. 31, 2014
Derivatives Tables
Open crude oil derivative positions with respect to future production based on NYMEX WTI pricing			Volume	Fixed Swap Price
			(bbls)
	Production Period
		January 2015 – March 2015	1,500	$            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,
			2014	2014
		Current assets:  Derivative instruments	$          57,849	$                 -
		Noncurrent assets:  Derivative instruments	-	7,239
	Total assets		$          57,849	$         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		Nine Months Ended
			31-Dec		31-Dec
			2014	2013	2014	2013
	Unrealized gain (loss) on open non-hedge
	derivative instruments		$54,839	$18,594	$102,830	($38,023)
	Gain (loss) on settlement of non-hedge derivative instruments
			25,281	-11,190	-4,959	-41,261
	Total gain (loss) on derivative instruments		$  80,120	$7,404	$97,871	($79,284)

10_Income_Per_Common_Share_Tab

10. Income Per Common Share (Tables)	9 Months Ended
	Dec. 31, 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		Nine Months Ended
			31-Dec		31-Dec
			2014	2013	2014	2013
	Net (loss) income		($175,321)	$88,659	$   (70,011)	$298,841
	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		-	6,506	-	3,458
	Weighted avg. common shares
	outstanding – dilutive		2,038,266	2,043,372	2,038,266	2,040,324
	(Loss) earnings per common share:
		Basic	$       (0.09)	$        0.04	$       (0.03)	$        0.15
		Diluted	$       (0.09)	$        0.04	$       (0.03)	$        0.15

3_Rollforward_of_Asset_Retirem

3. Rollforward of Asset Retirement Obligations (Details) (USD $)	3 Months Ended		9 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Rollforward Of Asset Retirement Obligations Details
Carrying amount of asset retirement obligations as of April 1			$961,577
Liabilities incurred			270,924
Liabilities settled			-23,026
Accretion expense	8,119	11,074	17,663	33,011
Carrying amount of asset retirement obligations as of December 31, 2014	1,227,138		1,227,138
Less: Current portion			10,000
Non-Current asset retirement obligation			$1,217,138

4_Stock_Options_Summary_of_the

4. Stock Options - Summary of the grant-date fair value of stock options granted (Details) (USD $)	9 Months Ended
	Dec. 31, 2014	Dec. 31, 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	0.00%	0.00%
Risk-free interest rate	2.52%	1.74%
Expected term (in years)	10 years	7 years

4_Stockbased_Compensation_Summ

4. Stock-based Compensation - Summary of activity of stock options (Details 1) (USD $)	9 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Notes to Financial Statements
Number of Shares Outstanding, Beginning	11,360
Granted	40,000
Vested	0
Forfeited	0
Number of Shares Oustanding, Ending	153,600
Weighted Aggregate Average Remaining Contract Life in Years	7 years 7 months 10 days
Aggregate Intrinsic Value	$154,062
Weighted Average Exercise Price Per Share, Beginning	$6.35
Granted	$5.59	$4.75
Vested	$0
Forfeited	$0
Weighted Average Exercise Price Per Share, Ending	$6.52
Vested - Shares Outstanding	77,350
Vested- Weighted Average Exercise Price Per Share	$6.42
Vested - Weighted Aggregate Average Remaining Contract Life in Years	6 years 5 months 9 days
Exercisable - Shares Outstanding	77,350
Exercisable - Weighted Average Exercise Price Per Share	$6.42
Exercisable - Weighted Aggregate Average Remaining Contract Life in Years	6 years 5 months 9 days

4_Stockbased_Compensation_Deta

4. Stock-based Compensation (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Compensation expense	$45,775	$37,080	$109,928	$119,318
Total cost related to non-vested awards	$239,064		$239,064
Non-vested awards, weighted average period of recognition			2 years 10 months 3 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

6_Credit_Facility_Summary_of_a

6. Credit Facility - Summary of activity on the Bank of America, N.A. line of credit (Details) (USD $)	9 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
Balance at beginning of period:	$2,425,000
Borrowings	3,475,000
Repayments	-150,000
Balance at end of period:	$5,750,000

6_Credit_Facility_Details_Narr

6. Credit Facility (Details Narrative) (USD $)	9 Months Ended
	Dec. 31, 2014	Mar. 31, 2014
Credit outstanding	$5,750,000	$2,425,000
Bank of America credit agreement
Credit facility maximum capacity	6,300,000
Credit facility current capacity	$6,300,000
Interest Rate as of period end	2.69%
Commitment Fee Percentage	0.50%

7_Income_Taxes_Income_tax_prov

7. Income Taxes - Income tax provision (Details) (USD $)	3 Months Ended		9 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Notes to Financial Statements
Current income tax expense	$0	$0	$0	$0
Deferred income tax expense (benefit)	-13,856	9,474	-21,759	-42,783
Total income tax provision	($13,856)	$9,474	($21,759)	($42,783)
Effective tax rate	-7.00%	10.00%	-24.00%	-17.00%

8_Derivatives_Open_crude_oil_d

8. Derivatives - Open crude oil derivative positions (Details) (USD $)	Dec. 31, 2014
	bbl
Derivatives - Open Crude Oil Derivative Positions Details
Volume	1,500
Fixed Swap Price	$90

8_Derivatives_Net_fair_value_o

8. Derivatives - Net fair value of the Companybs derivative assets and liabilities (Details 1) (USD $)	Dec. 31, 2014	Mar. 31, 2014
Derivatives - Net Fair Value Of Companys Derivative Assets And Liabilities Details
Current assets: Derivative instruments	$57,849	$0
Noncurrent assets: Derivative instruments	0	7,239
Total assets	57,849	7,239
Current liabilities: Derivative instruments	0	44,981
Noncurrent liabilities: Derivative instruments	0	0
Total Liabilities	$0	$44,981

8_Derivatives_Loss_on_derivati

8. Derivatives - Loss on derivative instruments included in the consolidated statements of operations (Details 2) (USD $)	3 Months Ended		9 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Derivatives - Loss On Derivative Instruments Included In Consolidated Statements Of Operations Details
Unrealized gain (loss) on open non-hedge derivative instruments	$54,839	$18,594	$102,830	($38,023)
Loss on settlement of non-hedge derivative instruments	25,281	-11,190	-4,959	-41,261
Total gain (loss) on derivated instruments	$80,120	$7,404	$97,871	($79,284)

9_Related_Party_Transactions_D

9. Related Party Transactions (Details Narrative) (USD $)	9 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Notes to Financial Statements
Totals billed to and reimbursed by the stockholder	$100,510	$105,288

10_Summary_of_Significant_Acco

10. Summary of Significant Accounting Policies - Income per common share (Details) (USD $)	3 Months Ended				9 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Accounting Policies [Abstract]
Net (loss) income	($175,321)	$86,256	$19,054	$88,659	($70,011)	$298,841
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	0			6,506	0	3,458
Weighted average common shares outstanding - dilutive	2,038,266			2,043,372	2,038,266	2,040,324
(Loss) earnings per common share: Basic	($0.09)			$0.04	($0.03)	$0.15
(Loss) earnings per common share: Diluted	($0.09)			$0.04	($0.03)	$0.15

10_Income_Per_Common_Share_Det

10. Income Per Common Share (Details Narrative) (USD $)	3 Months Ended	9 Months Ended
	Dec. 31, 2013	Dec. 31, 2013
Income 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