UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 2000
Commission file number 0-6994
MEXCO ENERGY CORPORATION
(Exact name of registrant as specified in its charter)
Colorado 84-0627918
(State or other jurisdiction (IRS Employer
of incorporation) Identification Number)
214 West Texas Avenue, Suite 1101, Midland, Texas 79701
(Address of principal executive offices)
(915) 682-1119
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. YES X NO
APPLICABLE ONLY TO CORPORATE ISSUERS:
State the number of shares outstanding of each of the issuer's classes of
common stock as of the latest practicable date.
Common Stock, $0.50 par value:
1,623,293 shares outstanding at December 31, 2000
MEXCO ENERGY CORPORATION
Table of Contents
Page
PART I. FINANCIAL INFORMATION
Consolidated Balance Sheets as of December 31, 2000
(Unaudited) and March 31, 2000 3
Consolidated Statements of Operations (Unaudited) for the
three and nine month periods ended December 31, 2000 and
December 31, 1999 4
Consolidated Statements of Cash Flows (Unaudited) for
the nine month periods ended December 31, 2000 and
December 31, 1999 6
Notes to Unaudited Consolidated Financial Statements 7
Management's Discussion and Analysis of Financial
Condition and Results of Operations 9
Quantitative and Qualitative Disclosures About Market Risk 13
PART II. OTHER INFORMATION 14
SIGNATURES 15
2
MEXCO ENERGY CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
December 31, March 31,
2000 2000
------------ ------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 232,872 $ 97,712
Accounts receivable:
Oil and gas sales 517,950 255,121
Trade 1,679 2,070
Related parties 4,767 18,105
Other -- 5,000
Prepaid expenses 62,740 15,789
------------ ------------
Total current assets 820,008 393,797
Property and equipment, at cost:
Oil and gas properties and equipment,
using full cost method, pledged 11,346,002 10,630,903
Office and computer equipment
and software 22,586 22,586
------------ ------------
11,368,588 10,653,489
Less accumulated depreciation,
depletion and amortization 7,468,331 7,193,967
------------ ------------
Property and equipment, net 3,900,257 3,459,522
------------ ------------
Total assets $ 4,720,265 $ 3,853,319
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 97,101 $ 86,091
Income taxes payable 3,606 --
------------ ------------
Total current liabilities 100,707 86,091
Long-term debt 900,000 1,200,000
Deferred income tax liability 95,794 --
Stockholders' equity:
Preferred stock, par value $1 per share;
10,000,000 shares authorized;
none issued -- --
Common stock, par value $0.50 per share;
40,000,000 shares authorized; 1,623,293
and 1,623,289 shares issued and
outstanding as of December 31, 2000
and March 31, 2000, respectively 811,646 811,644
Additional paid in capital 2,887,680 2,875,399
Retained earnings (deficit) (75,562) (1,119,815)
Total stockholders' equity 3,623,764 2,567,228
------------ ------------
Total liabilities and
stockholders' equity $ 4,720,265 $ 3,853,319
============ ============
The accompanying note is an integral part
of the consolidated financial statements.
3
MEXCO ENERGY CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months ended December 31, 2000 and 1999
(Unaudited)
2000 1999
----------- -----------
Operating revenue:
Oil and gas sales $ 798,110 $ 429,744
Other 1,562 1,723
----------- -----------
Total operating revenue 799,672 431,467
Operating costs and expenses:
Oil and gas production 135,329 115,227
Depreciation, depletion and amortization 58,687 98,650
General and administrative 73,897 45,495
----------- -----------
Total operating costs and expenses 267,913 259,372
----------- -----------
531,759 172,095
Other income and (expenses):
Interest income 356 845
Interest expense (24,199) (26,899)
----------- -----------
Net other income and expenses (23,843) (26,054)
----------- -----------
Income before income taxes 507,916 146,041
Income tax expense:
Current 3,606 --
Deferred 95,794 --
----------- -----------
99,400 --
----------- -----------
Net income $ 408,516 $ 146,041
=========== ===========
Net income per share:
Basic $ 0.25 $ 0.09
Diluted $ 0.25 $ 0.09
Weighted average shares outstanding:
Basic 1,623,293 1,623,289
Diluted 1,634,827 1,623,289
The accompanying note is an integral part
of the consolidated financial statements.
4
MEXCO ENERGY CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Nine Months ended December 31, 2000 and 1999
(Unaudited)
2000 1999
----------- -----------
Operating revenue:
Oil and gas sales $ 2,103,160 $ 1,165,385
Other 6,101 5,539
----------- -----------
Total operating revenue 2,109,261 1,170,924
Operating costs and expenses:
Oil and gas production 376,463 418,678
Depreciation, depletion and amortization 274,364 304,898
General and administrative 237,500 164,991
----------- -----------
Total operating costs and expenses 888,327 888,567
----------- -----------
1,220,934 282,357
Other income and (expenses):
Interest income 2,212 1,524
Interest expense (79,493) (81,244)
----------- -----------
Net other income and expenses (77,281) (79,720)
----------- -----------
Income before income taxes 1,143,653 202,637
Income tax expense:
Current 3,606 --
Deferred 95,794 --
----------- -----------
99,400 --
----------- -----------
Net income $ 1,044,253 $ 202,637
=========== ===========
Net income per share:
Basic $ 0.64 $ 0.12
Diluted $ 0.64 $ 0.12
Weighted average shares outstanding:
Basic 1,623,293 1,623,289
Diluted 1,627,138 1,623,289
The accompanying note is an integral part
of the consolidated financial statements.
5
MEXCO ENERGY CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months ended December 31, 2000 and 1999
(Unaudited)
2000 1999
----------- -----------
Cash flows from operating activities:
Net income $ 1,044,253 $ 202,637
Adjustments to reconcile net income
to net cash provided by operating
activities:
Deferred income taxes 95,794 --
Depreciation, depletion and
amortization 274,364 304,898
Stock-based compensation 12,283 --
Increase in accounts receivable (244,100) (58,844)
Decrease in accounts payable (4,882) (6,552)
Increase in income taxes payable 3,606 --
Increase in prepaid expenses (46,951) (5,502)
----------- -----------
Net cash provided by operating
activities 1,134,367 436,637
Cash flows from investing activities:
Additions to property and equipment (699,207) (467,817)
Sale of property and equipment -- 653,781
----------- -----------
Net cash provided by (used in)
investing activities (699,207) 185,964
Cash flows from financing activities:
Long-term borrowings -- 248,174
Principal payments on long-term debt (300,000) (832,174)
----------- -----------
Net cash used in financing activities (300,000) (584,000)
----------- -----------
Net increase in cash 135,160 38,601
Cash, beginning of the period 97,712 96,198
----------- -----------
Cash, end of period $ 232,872 $ 134,799
=========== ===========
Interest paid $ 80,315 $ 83,202
Income taxes paid $ -- $ --
Non-cash investing and financing activities:
Included in trade accounts payable at December 31, 2000 are capital costs
attributable to oil and gas properties of $40,583.
The accompanying note is an integral part
of the consolidated financial statements.
6
MEXCO ENERGY CORPORATION AND SUBSIDIARY
NOTE TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note A. Organization and Significant Accounting Policies
Organization and Basis of Presentation
Mexco Energy Corporation, a Colorado corporation, was organized in 1972 and
maintains its principal office in Midland, Texas. The Company and its wholly
owned subsidiary, Forman Energy Corporation, (collectively the "Company") are
engaged in the acquisition, exploration, development and production of oil and
gas. While the Company owns producing properties and undeveloped acreage in
eleven states, the majority of its activities are centered in west Texas.
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.
In the opinion of management, the accompanying unaudited consolidated
financial statements contain all adjustments necessary to present fairly the
financial position of the Company and its wholly owned subsidiary as of December
31, 2000, and the results of its operations and cash flows for the interim
periods ended December 31, 2000 and 1999. 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 A of the "Notes to Consolidated Financial Statements" in
the Company's annual report on Form 10-K filed with the Securities and Exchange
Commission. Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted in this Form 10-Q pursuant to the
rules and regulations of the Securities and Exchange Commission. 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.
Principles of Consolidation
The accompanying consolidated balance sheets include the accounts of the
Company and its wholly owned subsidiary. All significant inter-company accounts
and transactions have been eliminated in consolidation.
Stock Options
The Company previously accounted for employee stock option grants in
accordance with Accounting Principles Board ("APB") Opinion No. 25, "Accounting
for Stock Issued to Employees," whereby compensation costs were recognized only
in situations where stock compensatory plans award intrinsic value to recipients
at the date of grant. On March 31, 2000, the Financial Accounting Standards
Board ("FASB") issued FASB Interpretation No. 44, "Accounting for Certain
Transactions involving Stock Compensation" an interpretation of APB Opinion No.
25, which requires the Company to recognize compensation costs related to stock
options granted to independent consultants in accordance with FASB Statement No.
123, "Accounting for Stock-Based Compensation". The provisions of this
7
MEXCO ENERGY CORPORATION AND SUBSIDIARY
NOTE TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Interpretation were effective July 1, 2000 and apply to new awards granted after
December 15, 1998. The effects of applying this Interpretation are recognized
only on a prospective basis for those previous awards to independent
consultants, and accordingly, no adjustments were made to financial statements
upon initial application for periods prior to July 1, 2000. Compensation costs
measured upon application of this Interpretation that are attributable to
periods subsequent to July 1, 2000, are recognized.
Earnings per Share
Basic earnings per share is computed by dividing net income by the weighted
average number of common shares outstanding during the period. Diluted earnings
per share is computed by dividing net income by the weighted average number of
common shares and dilutive potential common shares (stock options) outstanding
during the period. The following is a reconciliation of the number of shares
used in the calculation of basic earnings per share and diluted earnings per
share for the periods ended December 31, 2000.
December 31, 2000
-----------------------------
Three Nine
Months Ended Months Ended
------------ ------------
Weighted average number of
common shares outstanding 1,623,293 1,623,293
Incremental shares from the
assumed exercise of dilutive
stock options 11,534 3,845
------------ ------------
Dilutive potential common shares 1,634,827 1,627,138
============ ============
Options to purchase 90,000 shares outstanding at December 31, 2000 and
December 31, 1999 were not included in the computation of diluted net income per
share because the exercise price of the options was greater than the average
market price of the common shares and, therefore, the effect would be
antidilutive.
Income Taxes
The income tax provision in the statements of operations for the three and
nine month periods ended December 31, 2000 is less than the expected statutory
rate primarily due to a decrease in valuation allowance.
8
MEXCO ENERGY CORPORATION AND SUBSIDIARY
Management's Discussion and Analysis of Financial Condition and
Results of Operations
Forward-Looking Statements
Management's Discussion and Analysis of Financial Condition and Results of
Operations ("MD&A") contains "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended (the "Securities Act"),
and Section 21E of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"). All statements, other than statements of historical fact
included in MD&A, including statements regarding the Company's operating
strategy, plans, objectives and beliefs of management for future operations,
planned capital expenditures and acquisitions are forward-looking statements.
Although the Company believes that the assumptions upon which such
forward-looking statements are based are reasonable, it can give no assurance
that such assumptions will prove to be correct.
Liquidity and Capital Resources
Historically, the Company's sources of funding have been from operating
activities, bank financing and the issuance of common stock.
The Company's focus is on increasing profit margins while concentrating on gas
reserves with low cost operations.
For the first nine months of fiscal 2001, cash flow from operations was
$1,134,000, which included the effects of an increase in accounts receivable and
a decrease in accounts payable. Cash of $699,207 was used for additions to
property and equipment. Cash of $300,000 reduced bank debt. Net cash flow was
$135,160.
In April 1999 and July 1999, the Company acquired interests in non-producing and
producing acreage in Schleicher County, Texas and assumed operations of two
producing gas wells at a cost of approximately $66,000 and $138,000,
respectively. Funds for these acquisitions were provided by the credit facility
discussed below, cash flow from operations and existing cash balances. Operating
cash flow from these two wells was approximately $163,000 for the eighteen
months ended December 31, 2000. In February 2000, the Company, as operator,
completed the re-entry of a gas well on this non-producing acreage at a cost to
the Company of approximately $189,000. Funds were provided from cash flow from
operations and existing cash balances. Operating cash flow from this re-entry
was approximately $53,000 for the eleven months ended December 31, 2000. The
Company owns approximate working interests in these wells ranging from 67% to
97%.
In July 1999, the Company acquired royalty interests of approximately 2.55% in a
producing gas well in Winkler County, Texas at a cost to the Company of
approximately $94,000. Funds for this acquisition were provided by its credit
facility discussed below. Cash flow from this well was approximately $14,000 for
the eighteen months ended December 31, 2000. In October 2000, drilling of a
replacement well commenced, with completion expected in March 2001. The Company
retains its royalty interests in this replacement well at no additional cost to
the Company.
9
The Company has entered into an exploration agreement relating to non-producing
acreage in Pecos County, Texas. Approximately 3,795 gross acres and 432 net
acres have been leased and a 3-D seismic survey covering 23 square miles has
been completed at a cost to the Company of approximately $155,000 as of
September 30, 2000. Two test wells were drilled on this acreage. The first test
well has been temporarily abandoned pending further evaluation. As of December
31, 2000, the cost to the Company for this well totaled approximately $55,000.
The second test well has been drilled, plugged and abandoned at a cost to the
Company of approximately $43,000. Pending further evaluation of the information
gathered from these wells, additional wells may be drilled on these prospects.
The Company owns approximate working interests in these prospects ranging from
10.41% to 15.51% and a third party conducts operations. Funds to date for this
project have been provided by cash flow from operations.
Effective September 1, 2000, the Company acquired three producing properties in
Pecos County, Texas for $198,000 cash, adjusted for revenues and expenses
through September 28, 2000, the date of closing. Funds for this acquisition were
provided by cash flows from operations. The Company owns working interests
ranging from 97% to 99% and, as operator of the six producing wells on these
properties, is evaluating the workover, recompletion and re-entry potential of
these properties. Cash flow from these properties was approximately $15,000 for
the two months ended December 31, 2000. In January 2001, workovers were
performed on two of these producing wells, increasing production at a total cost
to the Company of approximately $30,000.
Effective September 1, 2000, the Company leased 159 gross non-producing acres in
Pecos County, Texas, in which it retained a 98% working interest, at a cost of
approximately $24,600. The Company plans to re-enter an abandoned well on this
acreage in February 2001 at an estimated cost of $55,000. Funds to date have
been provided by cash flow from operations.
On September 5, 2000, the Company acquired a 50% working interest in
approximately 107 gross non-producing acres in Coke County, Texas for
approximately $10,000. The recompletion of the well on this acreage, which began
on January 31, 2001, was unsuccessful and the well has been abandoned, at a cost
to the Company to date of approximately $20,000. Funds have been provided by
cash flow from operations.
On October 31, 2000, the Company acquired a 12.5% working interest in 400 gross
non-producing acres in Nolan County, Texas at a cost of $11,750. Drilling of a
well on this acreage is scheduled to commence in January 2001. Drilling and
completion costs to the Company are estimated at $73,000. Drilling costs of
$43,167 were prepaid in December 2000. An additional well may be drilled on this
acreage pending the results of the first well. Funds to date have been provided
by cash flow from operations.
Effective December 1, 2000, the Company acquired a 1.345% royalty interest in
producing acreage in Limestone County, Texas for cash of $33,000. The drilling
of a second well, at no cost to the Company, is presently underway on this
acreage. Funds were provided by cash flow from operations.
10
The Company is reviewing several other projects in which it may participate. The
cost of such projects would be funded, to the extent possible, with existing
cash balances and cash flow from operations. The remainder may be funded through
borrowings on its bank credit facility discussed below.
At December 31, 2000, the Company had working capital of approximately $719,000
compared to working capital of approximately $308,000 at March 31, 2000, an
increase of $411,000. This is due primarily to higher oil and gas prices.
The Company has a revolving credit agreement with Bank of America, N.A.
("Bank"), which provides for a credit facility of $3,000,000, subject to a
borrowing base determination. Effective September 15, 2000, the borrowing base
was increased to $2,500,000, with scheduled monthly reductions of the available
borrowing base of $32,000 per month beginning October 5, 2000, and the maturity
date was extended to August 15, 2002. As of December 31, 2000, debt outstanding
under this agreement was $900,000 and the borrowing base was $2,404,000. No
required principal payments are anticipated for the next twelve months. A letter
of credit for $50,000, in lieu of a plugging bond with the Texas Railroad
Commission covering the properties the Company operates, is also outstanding
under the facility. The borrowing base is subject to redetermination on or about
August 1, of each year. Amounts borrowed under this agreement are collateralized
by the common stock of Forman and the Company's oil and gas properties. Interest
under this agreement is payable monthly at prime rate (9.5% at December 31,
2000). This agreement generally restricts the Company's ability to transfer
assets or control of the Company, incur debt, extend credit, change the nature
of the Company's business, substantially change management personnel or pay
dividends.
The prices of natural gas and crude oil have fluctuated significantly in recent
years as well as in recent months. Fluctuations in price have a significant
impact on the Company's financial condition and liquidity. However, management
is of the opinion that cash flow from operations and funds available from
financing will be sufficient to provide for its working capital requirements and
capital expenditures for the next twelve months.
Results of Operations - Three Months Ended December 31, 2000 and 1999
- ---------------------------------------------------------------------
Net income increased from $146,041 for the quarter ended December 31, 1999 to
$408,516 for the quarter ended December 31, 2000, an increase of $262,475.
Individual categories of income and expense are discussed below.
Oil and gas sales increased from $429,744 for the third quarter of fiscal 2000
to $798,110 for the same period of fiscal 2001. This increase of $368,366 or 86%
resulted from higher oil and gas prices. Average gas prices increased from $2.48
per mcf for the third quarter of fiscal 2000 to $5.83 per mcf for fiscal 2001,
while average oil prices increased from $23.33 per bbl for fiscal 2000 to $31.45
per bbl for fiscal 2001. Oil and gas production quantities were 4,633 barrels
("bbls") and 129,637 thousand cubic feet ("mcf") for the third quarter of fiscal
2000 and 4,391 bbls and 113,240 mcf for fiscal 2001, a decrease of 242 bbls or
5%, and a decrease of 16,397 mcf or 13%.
11
Production costs increased from $115,227 for the third quarter of fiscal 2000 to
$135,329 for the same period of fiscal 2001, an increase of $20,102 or 17%. This
is due primarily to increased production taxes associated with higher oil and
gas prices and the property acquisitions discussed above.
General and administrative expenses increased from $45,495 for the third quarter
of fiscal 2000 to $73,897 for the same period of fiscal 2001, an increase of
$28,402 or 62%. Increases in salary costs and contract services ($14,900), legal
fee ($2,200), compensation related to stock options granted to consultants
($6,100) and a bad debt ($5,000) account for this.
Depreciation, depletion and amortization, based on production and other methods
of depreciation, decreased from $98,650 for the third quarter of fiscal 2000 to
$58,687 for the same period of fiscal 2001, a decrease of $39,963 or 41% due
primarily to property acquisitions.
Interest expense decreased from $26,899 for the third quarter of fiscal 2000 to
$24,199 for the same period of fiscal 2001, a decrease of $2,700 or 10%, due to
decreasing amounts outstanding under the Company's credit facility.
Results of Operations - Nine Months Ended December 31, 2000 and 1999
- --------------------------------------------------------------------
Net income increased from $202,637 for the nine months ended December 31, 1999
to $1,044,253 for the nine months ended December 31, 2000, an increase of
$841,616. Individual categories of income and expense are discussed below.
Oil and gas sales increased from $1,165,385 for the first nine months of fiscal
2000 to $2,103,160 for the same period of fiscal 2001. This increase of $937,775
or 80% resulted primarily from higher oil and gas prices. Average gas prices
increased from $2.29 per mcf for the first nine months of fiscal 2000 to $4.40
per mcf for fiscal 2001, while average oil prices increased from $19.70 per bbl
for fiscal 2000 to $29.56 per bbl for fiscal 2001. Oil and gas production
quantities were 13,323 bbls and 394,982 mcf for the first nine months of fiscal
2000 and 13,505 bbls and 387,145 mcf for fiscal 2001, an increase of 182 bbls
and a decrease of 7,837 mcf.
Production costs decreased from $418,678 for the first nine months of fiscal
2000 to $376,463 for the same period of fiscal 2001, a decrease of $42,215 or
10%. Nonrecurring remedial repairs and plugging costs in fiscal 2000, offset in
part by increased production taxes associated with higher oil and gas prices in
fiscal 2001 and operating costs associated with newly acquired properties,
account for this decrease.
General and administrative expenses increased from $164,991 for the first nine
months of fiscal 2000 to $237,500 for the same period of fiscal 2001, an
increase of $72,509 or 44%. Increases in salary costs and contract services
($31,200), compensation related to stock options granted to consultants
($12,300), legal fees ($2,900), accounting fees ($2,000), increases and changes
in the timing of engineering and geological costs ($16,600) and a bad debt
($5,000) account for this.
Depreciation, depletion and amortization, based on production and other methods
of depreciation, decreased from $304,898 for the first nine months of fiscal
2000 to $274,364 for the same period of fiscal 2001, a decrease of $30,534 or
10% due primarily to property acquisitions.
12
Interest expense decreased from $81,244 for the first nine months of fiscal 2000
to $79,493 for the same period of fiscal 2001, a decrease of $1,751.
Quantitative and Qualitative Disclosures About Market Risk
All of the Company's financial instruments are for purposes other than trading.
Interest Rate Risk. The following table summarizes fiscal year maturities
for the Company's variable rate bank debt, which is tied to prime rate. If the
interest rate on the Company's bank debt increases or decreases by one
percentage point, the Company's annual pretax income would change by $9,000.
2001 2002 2003
-------- -------- --------
Variable rate bank debt $ -- $ -- $900,000
Credit Risk. Credit risk is the risk of loss as a result of nonperformance
by counterparties of their contractual obligations. The Company's primary credit
risk is related to oil and gas production sold to various purchasers and the
receivables are generally uncollateralized. At December 31, 2000, the Company's
largest credit risk associated with any single purchaser was $56,150. The
Company has not experienced any significant credit losses.
Volatility of Oil and Gas Prices. The Company's revenues, operating results
and future rate of growth are dependent upon the prices received for oil and
gas. Historically, the markets for oil and gas have been volatile and are likely
to continue to be so in the future. Various factors beyond the control of the
Company affect the price of oil and gas, including but not limited to worldwide
and domestic supplies of oil and gas, the ability of the members of the
Organization of Petroleum Exporting Countries to agree to and maintain oil price
and production controls, political instability or armed conflict in
oil-producing regions, the price and level of foreign imports, the level of
consumer demand, the price and availability of alternative fuels, the
availability of pipeline capacity, weather conditions, domestic and foreign
governmental regulation and the overall economic environment. Any significant
decline in prices would adversely affect the Company's revenues and operating
income and may require a reduction in the carrying value of the Company's oil
and gas properties. If the average oil price for the first nine months of fiscal
2001 had increased or decreased by one cent per barrel, the Company's pretax
income would have changed by $135. If the average gas price for the first nine
months of fiscal 2001 had increased or decreased by one cent per mcf, the
Company's pretax income would have changed by $3,871.
13
PART II - OTHER INFORMATION
Item 1. Legal proceedings
None.
Item 2. Changes in securities
None.
Item 3. Defaults upon senior securities
None.
Item 4. Submission of matters to a vote of security holders
None.
Item 5. Other Information
None.
Item 6. Exhibits and Reports on Form 8-K
None.
14
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MEXCO ENERGY CORPORATION
(Registrant)
Dated: February 9, 2001 /s/ Nicholas C. Taylor
------------------------------
Nicholas C. Taylor
President
Dated: February 9, 2001 /s/ Linda J. Crass
------------------------------
Linda J. Crass
Treasurer, Controller, and
Assistant Secretary
15