<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20539
FORM 10-Q/A
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For quarterly period ended June 30, 1997
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OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ______________ to _______________
Commission File No. 0-6994
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MEXCO ENERGY CORPORATION
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(Exact name of registrant as specified in its charter)
Colorado 84-0627918
- ------------------------------- -------------------------------
(State or other jurisdiction of IRS Employer Identification No.
incorporation or organization)
214 W. Texas, Suite 1101, Midland, TX 79701
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(Address of principal executive offices) (Zip Code)
(915) 682-1119
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Registrant's telephone number, including area code
NONE
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(Former Name, Former Address & Former Fiscal Year if changed since
last report)
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
----- -----
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding at June 30, 1997
- ---------------------------- -------------------------------
Common stock, $.50 per value 1,623,229
1
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MEXCO ENERGY CORPORATION
Index
Page
Part I. Financial information:
Consolidated balance sheets as of
June 30, 1997 and March 31, 1997 3
Consolidated statements of operations
for the three months ended
June 30, 1997 and 1996 4
Consolidated statements of cash flows
for the three months ended June 30,
1997 and 1996 5
Notes to consolidated financial statements 6
Management's discussion and analysis of
financial condition and results of
operations 7
Part II. Other information: Not Applicable
2
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MEXCO ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS
June 30, 1997 and March 31, 1997
ASSETS
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<TABLE>
<CAPTION>
June 30, March 31,
1997 1997
------------ ------------
(Unaudited)
<S> <C> <C>
CURRENT ASSETS
Cash and cash equivalents $ 165,115 $ 40,813
Accounts receivable 216,311 291,254
Prepaid assets 3,735 -
----------- -----------
Total current assets 385,161 332,067
PROPERTY AND EQUIPMENT
Oil and gas properties-accounted for
under the full cost method 8,651,769 7,819,986
Office furniture and fixtures 6,724 6,293
----------- -----------
8,658,493 7,826,279
Less accumulated depreciation,
depletion and amortization (3,240,519) (3,049,147)
----------- -----------
Net property and equipment 5,417,974 4,777,132
----------- -----------
TOTAL ASSETS $ 5,803,135 $ 5,109,199
=========== ===========
</TABLE>
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
<TABLE>
<CAPTION>
CURRENT LIABILITIES
<S> <C> <C>
Accounts payable-trade $ 346,993 $ 167,913
Income taxes payable 9,717 40,093
----------- -----------
Total current liabilities 356,710 208,006
BANK LINE OF CREDIT 1,137,000 1,637,000
DEFERRED INCOME TAXES 361,780 341,181
----------- -----------
Total liabilities 1,855,490 2,186,187
STOCKHOLDERS' EQUITY
Common Stock-$.50 par value, authorized
5,000,000, issued and outstanding-
1,623,229 at June 30 and
1,423,229 at March 31 811,614 711,614
Paid in capital 2,875,429 1,975,429
Retained earnings 260,602 235,969
----------- -----------
Total stockholders' equity 3,947,645 2,923,012
----------- -----------
TOTAL LIABILITIES & EQUITY $ 5,803,135 $ 5,109,199
=========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
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MEXCO ENERGY CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended June 30
(Unaudited)
<TABLE>
<CAPTION>
1997 1996
---------- ----------
<S> <C> <C>
Revenues
Oil and gas $ 454,703 $ 267,014
Administrative service charges and
reimbursements 1,278 1,252
Interest income 271 2,171
Other income 563 -
---------- ----------
Total revenues 456,815 270,437
Costs and expenses
Production costs 127,901 70,856
Depreciation, depletion and amortization 191,372 70,245
General and administrative 72,372 35,160
Interest 31,565 -
---------- ----------
Total costs and expenses 423,210 176,261
Income before income tax expense 33,605 94,176
Income tax expense 8,972 24,376
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NET INCOME $ 24,633 $ 69,800
========== ==========
Net income per share $ .02 $ .05
========== ==========
Weighted average common shares
outstanding 1,508,943 1,423,229
========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
MEXCO ENERGY CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months ended June 30
(Unaudited)
<TABLE>
<CAPTION>
1997 1996
----------- ----------
<S> <C> <C>
Cash flows from operating activities
- ------------------------------------
Cash received from oil and gas operations $ 530,165 $281,883
Cash paid for oil and gas operating expenses (178,028) (85,442)
General and administrative expenses (83,585) (20,780)
Interest paid (33,027) -
Interest received 271 2,171
Income taxes paid (18,749) (4,361)
Other receipts 563 -
---------- --------
Net cash provided by operations 217,610 173,471
Cash flows from investing activities
- ------------------------------------
Capital expenditures (593,308) (95,125)
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Net cash used in investing activities (593,308) (95,125)
Cash flows from financing activities
- ------------------------------------
Principal payments on debt (500,000) -
Proceeds from issuance of common stock 1,000,000 -
---------- --------
Net cash provided by financing activities 500,000 -
Net increase (decrease) in cash and cash
equivalents 124,302 78,346
Cash and cash equivalents at the beginning
of the period 40,813 172,112
---------- --------
Cash and cash equivalents at the end
of the period $ 165,115 $250,458
========== ========
Reconciliation of net income to net
- -----------------------------------
cash provided by operating activities
-------------------------------------
Net income $ 24,633 $ 69,800
---------- --------
Adjustments to reconcile net income to
net cash provided by operating activities
Depreciation, depletion and amortization 191,372 70,245
Deferred income taxes 20,599 -
(Increase) Decrease in accounts receivable 74,943 (20,562)
Increase (Decrease) in accounts payable (59,826) 30,962
Increase in prepaid expenses (3,735) (1,350)
Increase (Decrease) in income taxes
payable (30,376) 24,376
---------- --------
Total adjustments 192,977 103,671
---------- --------
Net cash provided by operating activities $ 217,610 $173,471
========== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
MEXCO ENERGY CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 1997 and 1996
NOTE A - BASIS OF PRESENTATION
In the opinion of the Company, the accompanying unaudited financial statements
contain all adjustments necessary to present fairly the financial position of
the Company as of June 30, 1997 and March 31, 1997, the results of its
operations for the three months ended June 30, 1997 and 1996, and the cash flows
for the three months ended June 30, 1997 and 1996. All adjustments are of a
normal and recurring nature.
The results of operations for the three months ended June 30, 1997 are not
necessarily indicative of the results to be expected for the full year.
The consolidated balance sheet as of March 31, 1997 has been prepared based upon
the Company's audited balance sheet as of that date.
NOTE B - ACQUISITION OF OIL AND GAS PROPERTIES
During the quarter, the Company purchased approximately 1.5% in additional
mineral and royalty interests in a producing gas well located in the Gomez
Field, Pecos County, Texas. This well is currently producing at the rate of
approximately six million cubic feet of gas per day.
6
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MANAGEMENT'S DISCUSSION AND ANALYSIS
OF THE CONSOLIDATED STATEMENTS OF OPERATIONS
Results of Operations - 3 Months Ended June 30, 1997
- ----------------------------------------------------
Operating revenues increased $187,689 (70%) from the first quarter of fiscal
1996 due to increased oil and gas production from acquisitions and development
of oil and gas properties. Gas revenues increased $86,519 (88%) and oil
revenues increased $101,170 (60%). Oil and gas prices were lower for the quarter
ending June 30, 1997 as compared to the quarter ending June 30, 1996 with
average oil prices of $18.15 per barrel and $20.77 per barrel and average gas
prices of $1.92 per MCF and $2.12 per MCF respectively.
Production costs increased $57,045 (81%) due to increased production taxes of
$12,412 (82%) and increased lease operating expenses of $44,633 (80%) primarily
as a result of increased production from the addition of oil and gas properties.
Depreciation, depletion and amortization increased $136,988 (195%) as compared
to the same quarter during the prior year due to the addition of oil and gas
properties.
General and administrative costs increased $37,212 (106%) due primarily to
increased accounting, engineering and legal costs associated with property
acquisitions.
Interest income decreased $1,900 (88%) due to decreased funds invested in money
market accounts.
During the quarter, the Company participated in the successful drilling and
completion of three (3) wells (42.60% working interest and 31.95% net revenue
interest) in the Lazy JL (Lower Spraberry) Field of Garza County, Texas.
Liquidity and Capital Resources and Commitments
- -----------------------------------------------
Although revenues increased substantially during the current quarter, working
capital decreased by $107,237 (86%) as compared to March 31, 1997, due to cash
expenditures for property acquisitions and drilling costs. In May, the Company
increased capital by $1,000,000 from the issuance of 200,000 shares of common
stock at $5.00 per share through a private placement. $500,000 of these proceeds
were used to reduce the principal borrowings under the line of credit with the
remaining proceeds being used for property acquisitions and drilling activity.
The Company has a $1,750,000 revolving line of credit with a maturity date of
July 15, 1998. The borrowing base of the line is reduced by $36,500 each month
throughout the term of the loan. At the current level of borrowings, no
principal payments will be due during the current fiscal year.
The Company believes that it will have sufficient capital available from
borrowings combined with cash flows from operations to fund future capital
expenditures and to meet its financial obligations.
Management cannot specifically identify the effects of inflation and other price
changes on operations.
7
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Signatures
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Pursuant to the requirements of the Securities 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
(A Colorado Corporation)
/s/ Nicholas C. Taylor
---------------------------
Nicholas C. Taylor,
President and Treasurer
Date: September 16, 1997
8
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 12-MOS
<FISCAL-YEAR-END> MAR-31-1998 MAR-31-1997
<PERIOD-START> APR-01-1997 APR-01-1996
<PERIOD-END> JUN-30-1997 MAR-31-1997
<CASH> 165,115 40,813
<SECURITIES> 0 0
<RECEIVABLES> 216,311 291,254
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 385,161 332,067
<PP&E> 8,658,493 7,826,279
<DEPRECIATION> 3,240,519 3,049,147
<TOTAL-ASSETS> 5,803,135 5,109,199
<CURRENT-LIABILITIES> 356,710 208,006
<BONDS> 0 0
0 0
0 0
<COMMON> 811,614 711,614
<OTHER-SE> 3,136,031 2,211,398
<TOTAL-LIABILITY-AND-EQUITY> 5,803,135 5,179,199
<SALES> 454,703 1,453,124
<TOTAL-REVENUES> 456,815 1,465,907
<CGS> 127,901 316,765
<TOTAL-COSTS> 127,901 346,765
<OTHER-EXPENSES> 295,309 590,853
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 31,565 12,787
<INCOME-PRETAX> 33,605 515,502
<INCOME-TAX> 8,972 137,635
<INCOME-CONTINUING> 24,633 377,867
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 24,633 377,867
<EPS-PRIMARY> .016 .265
<EPS-DILUTED> 0 0
</TABLE>
