What changed in MEXCO ENERGY CORP's 2025 10-K compared to 2024?

Across the narrative sections we track, MEXCO ENERGY CORP (MXC) added 201 paragraphs, removed 186, and edited 141 between the 2024 and 2025 10-K filings. The biggest movers are Item 7. Management's Discussion & Analysis (+79/−79), Item 1A. Risk Factors (+34/−40), Item 1. Business (+37/−34).

Did MEXCO ENERGY CORP add new Risk Factors in the 2025 10-K?

Yes — Item 1A Risk Factors shows 34 new/edited paragraphs and 40 removed paragraphs versus the 2024 10-K.

What changed in MEXCO ENERGY CORP's MD&A (Item 7) in 2025?

Item 7 Management's Discussion & Analysis shows 79 new/edited paragraphs and 79 removed paragraphs year-over-year. Read the side-by-side diff to see exactly which revenue, margin, and outlook commentary was rewritten.

Did MEXCO ENERGY CORP update its Cybersecurity disclosure (Item 1C) in 2025?

Item 1C Cybersecurity has 2 paragraph-level changes between the 2024 and 2025 filings.

Where does this MXC 10-K diff come from?

The source filings are MEXCO ENERGY CORP's official 2024 and 2025 Form 10-K annual reports from SEC EDGAR. 10q10k.net parses each filing, aligns paragraphs by section (Item 1, 1A, 1C, 2, 3, 7, 7A), and highlights every added, removed and edited sentence side-by-side.

What changed in MEXCO ENERGY CORP's 10-K — 2024 vs 2025

Paragraph-level year-over-year comparison of MEXCO ENERGY CORP's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+201 added−186 removedSource: 10-K (2025-06-27) vs 10-K (2024-06-27)

Top changes in MEXCO ENERGY CORP's 2025 10-K

201 paragraphs added · 186 removed · 141 edited across 7 sections

Item 7. Management's Discussion & Analysis+79 / −79 · 59 edited
Item 1A. Risk Factors+34 / −40 · 22 edited
Item 1. Business+37 / −34 · 32 edited
Item 2. Properties+24 / −22 · 21 edited
Item 5. Market for Registrant's Common Equity+18 / −2

Item 1. Business

Business — how the company describes what it does

32 edited+5 added−2 removed48 unchanged

2024 filing

2025 filing

Biggest changeMajor Customers We made sales that amounted to 10% or more of operating revenues as follows for the years ended March 31: 2024 2023 Company A 59 % 53 % Historically, the Company has not experienced significant credit losses on our oil and gas accounts and management is of the opinion that significant credit risk does not exist.

Biggest changeThe market for our oil, gas and natural gas liquids production depends on factors beyond our control including: domestic and foreign political conditions; the overall level of supply of and demand for oil, gas and natural gas liquids; the price of imports of oil and gas; weather conditions; the price and availability of alternative fuels; the proximity and capacity of gas pipelines and other transportation facilities; and overall economic conditions. 7 Major Customers We made sales that amounted to 10% or more of operating revenues as follows for the years ended March 31: 2025 2024 Company A 58 % 59 % Historically, the Company has not experienced significant credit losses on our oil and gas accounts and management is of the opinion that significant credit risk does not exist.

From time to time, we utilize the services of independent geological, land and engineering consultants on a limited basis and expect to continue to do so in the future. 9 Office Facilities Our principal offices are located at 415 W. Wall, Suite 475, Midland, Texas 79701 and our telephone number is (432) 682-1119.

From time to time, we utilize the services of independent geological, land and engineering consultants on a limited basis and expect to continue to do so in the future. Office Facilities Our principal offices are located at 415 W. Wall, Suite 475, Midland, Texas 79701 and our telephone number is (432) 682-1119.

Because a ready market exists for oil and gas production, we do not believe the loss of any individual purchaser would have a material adverse effect on our financial position or results of operations. 7 Environmental Regulation The oil and gas industry is extensively regulated at the federal, state, and local levels.

Because a ready market exists for oil and gas production, we do not believe the loss of any individual purchaser would have a material adverse effect on our financial position or results of operations. Environmental Regulation The oil and gas industry is extensively regulated at the federal, state, and local levels.

From 1983 to 2024, Mexco Energy Corporation made numerous acquisitions of royalties, overriding royalties, minerals and working interests in producing oil and gas properties including the following most significant acquisitions: 1990-1994 Royalty interests, aggregate purchase price of approximately $501,000 covering multiple wells in the Gomez (Ellenberger) Field of Pecos County, Texas. 1993-2014 Tabbs Bay Oil Company and Thompson Brothers Lumber Company, respectively dissolved in 1957 and 1947.

From 1983 to 2025, Mexco Energy Corporation made numerous acquisitions of royalties, overriding royalties, minerals and working interests in producing oil and gas properties including the following most significant acquisitions: 1990-1994 Royalty interests, aggregate purchase price of approximately $501,000 covering multiple wells in the Gomez (Ellenberger) Field of Pecos County, Texas. 1993-2014 Tabbs Bay Oil Company and Thompson Brothers Lumber Company, respectively dissolved in 1957 and 1947.

McComic served as Treasurer and Assistant Secretary of the Company. Donna Gail Yanko was appointed to the position of Vice President of the Company in 1990. She also served as Corporate Secretary from 1992 to 2021 and from 1986 to 1992 was Assistant Secretary.

McComic served as Treasurer and Assistant Secretary of the Company. 9 Donna Gail Yanko was appointed to the position of Vice President of the Company in 1990. She also served as Corporate Secretary from 1992 to 2021 and from 1986 to 1992 was Assistant Secretary.

In light of these challenges facing our industry and in response to the continued challenging environment, our primary business strategies for fiscal 2025 will continue to include: (1) optimizing cash flows through operating efficiencies and cost reductions, (2) divesting of non-core assets, and (3) working to balance capital spending with cash flows to minimize borrowings and maintain ample liquidity.

In light of these challenges facing our industry and in response to the continued challenging environment, our primary business strategies for fiscal 2026 will continue to include: (1) optimizing cash flows through operating efficiencies and cost reductions, (2) divesting of non-core assets, and (3) working to balance capital spending with cash flows to minimize borrowings and maintain ample liquidity.

This process usually intensifies the competition and makes it extremely difficult to acquire reserves without assuming significant price and production risks. We actively search for opportunities to acquire proved oil and gas properties. However, because the competition is intense, we cannot give any assurance that we will be successful in our efforts during fiscal 2025.

We maintain insurance coverage customary for operations of a similar nature, but losses could arise from uninsured risks or in amounts in excess of existing insurance coverage. Executive Officers The following table sets forth certain information concerning the executive officers of the Company as of March 31, 2024. Name Age Position Nicholas C.

The war in Ukraine and the Israel-Hamas war, rising interest rates, global supply chain disruptions, concerns about a potential economic downturn or recession and measures to combat persistent inflation and instability in the financial sector have contributed to recent economic and pricing volatility and may continue to impact pricing throughout fiscal 2025.

Nicholas C. Taylor beneficially owns approximately 45% of the outstanding shares of our common stock. Mr. Taylor is also our Chairman of the Board and Chief Executive Officer. As a result, Mr. Taylor has significant influence in matters voted on by our shareholders, including the election of our Board members. Mr.

Nicholas C. Taylor beneficially owns approximately 46% of the outstanding shares of our common stock. Mr. Taylor is also our Chairman of the Board and Chief Executive Officer. As a result, Mr. Taylor has significant influence in matters voted on by our shareholders, including the election of our Board members. Mr.

She has also served the Company as Assistant Treasurer of the Company since 2010 and from 2006 to 2021 was Assistant Secretary. Prior thereto, Ms. Hardin served as Assistant Controller. Employees As of March 31, 2024, we had three full-time and three part-time employees. We believe that relations with these employees are generally satisfactory.

She has also served the Company as Assistant Treasurer of the Company since 2010 and from 2006 to 2021 was Assistant Secretary. Prior thereto, Ms. Hardin served as Assistant Controller. Employees As of March 31, 2025, we had two full-time and three part-time employees. We believe that relations with these employees are generally satisfactory.

See Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations for discussion of our fiscal 2024 operating results and potential impact on fiscal 2025 operating results due to commodity price changes.

See Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations for discussion of our fiscal 2025 operating results and potential impact on fiscal 2026 operating results due to commodity price changes.

Royalty interest investment, $2,000,000 for an approximate 2% investment commitment in a limited liability company, capitalized at approximately $100 million to purchase royalty interests consisting of minerals located in the Marcellus and Utica areas of Ohio. As of the date of this report, $1,000,000 of the commitment has been expended.

The Permian Basin in total accounts for 85% of our discounted future net cash flows from proved reserves and 87% of our gross revenues. The Permian Basin is one of the oldest and most prolific producing basins in North America which has been a significant source of oil production since the 1920s.

The Permian Basin in total accounts for 80% of our discounted future net cash flows from proved reserves and 80% of our gross revenues. The Permian Basin is one of the oldest and most prolific producing basins in North America which has been a significant source of oil production since the 1920s.

Royalty interests, purchase price of $117,200 covering 28 producing wells in 6 counties in the Haynesville trend area of Louisiana and 5 counties in Texas. 2023-2024 Royalty interests, purchase price of $455,000 covering 8 producing wells and additional potential locations for development in Reeves County, Texas. 5 Royalty interests, purchase price of $367,500 covering 84 producing wells and additional potential locations for development in 6 counties in Texas.

Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources Commitments”. We own partial interests in approximately 6,800 producing wells all of which are located within the United States in the states of Texas, New Mexico, Oklahoma, Louisiana, Alabama, Mississippi, Arkansas, Wyoming, Kansas, Colorado, Montana, Virginia, North Dakota, and Ohio.

Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources Commitments”. We own partial interests in approximately 7,500 producing wells all of which are located within the United States in the states of Texas, New Mexico, Oklahoma, Louisiana, Alabama, Arkansas, Wyoming, Kansas, Colorado, Montana, Virginia, North Dakota, South Dakota and Ohio.

This LLC has returned $276,098 and 92% of the total investment since inception in fiscal 2020. 2022-2023 Overriding royalty interests, purchase price of $567,000 covering 53 producing wells and several additional potential locations for development in Atascosa and Karnes Counties, Texas.

This LLC has returned $321,112 (107%) of the total investment since inception in fiscal 2020. 2022-2023 Overriding royalty interests, purchase price of $567,000 covering 53 producing wells and several additional potential locations for development in Atascosa and Karnes Counties, Texas.

Competition for oil and gas reserve acquisitions is significant. We may compete with major oil and gas companies, other independent oil and gas companies and individual producers and operators, some of which have financial and personnel resources substantially in excess of those available to us. As a result, we may be placed at a competitive disadvantage.

We may compete with major oil and gas companies, other independent oil and gas companies and individual producers and operators, some of which have financial and personnel resources substantially in excess of those available to us. As a result, we may be placed at a competitive disadvantage.

Taylor 86 Chairman and Chief Executive Officer Tamala L. McComic 55 President, Chief Financial Officer, Treasurer, and Assistant Secretary Donna Gail Yanko 79 Vice President Stacy D. Hardin 59 Secretary and Assistant Treasurer Set forth below is a description of the principal occupations during at least the past five years of each executive officer of the Company. Nicholas C.

Taylor 87 Chairman and Chief Executive Officer Tamala L. McComic 56 President, Chief Financial Officer, Treasurer, and Assistant Secretary Donna Gail Yanko 80 Vice President Stacy D. Hardin 60 Secretary and Assistant Treasurer Set forth below is a description of the principal occupations during at least the past five years of each executive officer of the Company. Nicholas C.

For fiscal 2024, these properties accounted for 62% of our gross revenues. Of these discounted future net cash flows from proved reserves, approximately 29% are attributable to proven undeveloped reserves which would be developed through new drilling.

For fiscal 2025, these properties accounted for 14% of our gross revenues. Of these discounted future net cash flows from proved reserves, approximately 3% are attributable to proven undeveloped reserves which would be developed through new drilling.

The Permian Basin is known to have a number of zones of oil and natural gas bearing rock throughout. The Delaware Basin properties, encompassing 39,112 gross acres, 213 net acres, 742 gross producing wells or 4 net wells account for approximately 70% of our discounted future net cash flows from proved reserves as of March 31, 2024.

The Permian Basin is known to have a number of zones of oil and natural gas bearing rock throughout. The Delaware Basin properties, encompassing 39,850 gross acres, 211 net acres, 751 gross producing wells or 4 net wells account for approximately 67% of our discounted future net cash flows from proved reserves as of March 31, 2025.

Our total estimated proved reserves at March 31, 2024 were approximately 1.547 million barrels of oil equivalent (“MMBOE”) of which 51% was oil and natural gas liquids and 49% was natural gas, and our estimated present value of proved reserves was approximately $29 million based on estimated future net revenues excluding taxes discounted at 10% per annum, pricing and other assumptions set forth in “Item 2 – Properties” below.

Our total estimated proved reserves at March 31, 2025 were approximately 1.401 million barrels of oil equivalent (“MMBOE”) of which 48% was oil and 52% was natural gas, and our estimated present value of proved reserves was approximately $23 million based on estimated future net revenues excluding taxes discounted at 10% per annum, pricing and other assumptions set forth in “Item 2 – Properties” below.

Royalty interests, purchase price of $367,500 covering 84 producing wells and additional potential locations for development in 6 counties in Texas. Royalty interest, purchase price of $575,600 covering 9 producing wells with additional potential locations for development and 4 producing wellbores in Weld County, Colorado.

Royalty interest, purchase price of $575,600 covering 9 producing wells with additional potential locations for development and 4 producing wellbores in Weld County, Colorado.

Oil and Gas Operations As of March 31, 2024, oil constituted approximately 83% of our oil and natural gas sales and approximately 51% of our total proved reserves volumes for fiscal 2024. Revenues from oil and gas royalty interests accounted for approximately 28% of our total operating revenues for fiscal 2024.

Oil and Gas Operations As of March 31, 2025, oil contributed approximately 84% of our oil and natural gas sales and approximately 48% of our total proved reserves volumes for fiscal 2025. Revenues from oil and gas royalty interests accounted for approximately 31% of our total operating revenues for fiscal 2025.

We do not believe any of these burdens will materially interfere with the use of these properties. 8 Prior to drilling of an oil and natural gas well, it is normal practice in our industry for the person or company acting as the operator of the well to obtain a preliminary title review to ensure there are no obvious defects in title to the well.

Prior to drilling of an oil and natural gas well, it is normal practice in our industry for the person or company acting as the operator of the well to obtain a preliminary title review to ensure there are no obvious defects in title to the well.

Additional information concerning these properties and our oil and gas reserves is provided below. 6 The following table indicates our oil and gas production in each of the last five years: Year Oil(Bbls) Gas (Mcf) 2024 69,999 502,879 2023 73,968 534,363 2022 61,689 393,841 2021 50,327 324,205 2020 44,301 294,007 Competition and Markets The oil and gas industry is a highly competitive business.

The following table indicates our oil and gas production in each of the last five years: Year Oil(Bbls) Gas (Mcf) 2025 83,564 570,012 2024 69,999 502,879 2023 73,968 534,363 2022 61,689 393,841 2021 50,327 324,205 Competition and Markets The oil and gas industry is a highly competitive business. Competition for oil and gas reserve acquisitions is significant.

Title to Properties The leasehold properties we own are subject to royalty, overriding royalty and other outstanding interests customary in the industry. The properties may be subject to burdens such as liens incident to operating agreements and current taxes, development obligations under oil and gas leases and other encumbrances, easements and restrictions.

The properties may be subject to burdens such as liens incident to operating agreements and current taxes, development obligations under oil and gas leases and other encumbrances, easements and restrictions. We do not believe any of these burdens will materially interfere with the use of these properties.

We did not incur any material capital expenditures for remediation or pollution control activities for the year ended March 31, 2024. Additionally, as of the date of this report, we are not aware of any environmental issues or claims that will require material capital expenditures during fiscal 2025.

We did not incur any material capital expenditures for remediation or pollution control activities for the year ended March 31, 2025.

Because public policy changes are commonplace, and existing laws and regulations are frequently amended, the Company is unable to predict the future cost or impact of compliance. However, the Company does not expect that any of these laws and regulations will affect its operations materially differently than they would affect other companies with similar operations, size and financial strength.

However, the Company does not expect that any of these laws and regulations will affect its operations materially differently than they would affect other companies with similar operations, size and financial strength. Title to Properties The leasehold properties we own are subject to royalty, overriding royalty and other outstanding interests customary in the industry.

Royalty interests, purchase price of $390,300 covering 255 producing wells in the Haynesville trend area of Caddo Parish, Louisiana. 5 Industry Environment and Outlook The commodity price environment was challenging in fiscal 2024.

Royalty interests, purchase price of $390,300 covering 255 producing wells in the Haynesville trend area of Caddo Parish, Louisiana. 2024-2025 Royalty interests, purchase price of $568,000 covering 30 producing wells and additional potential locations for development in Adams, Broomfield and Weld Counties, Colorado.

The Midland Basin properties, encompassing 115,030 gross acres, 249 net acres, 1,731 gross producing wells or 5 net wells account for approximately 13% of our discounted future net cash flows from proved reserves as of March 31, 2024. For fiscal 2024, these properties accounted for 23% of our gross revenues.

Of these discounted future net cash flows from proved reserves, approximately 27% are attributable to proven undeveloped reserves which would be developed through new drilling. 6 The Midland Basin properties, encompassing 114,077 gross acres, 232 net acres, 1,652 gross producing wells or 4 net wells account for approximately 12% of our discounted future net cash flows from proved reserves as of March 31, 2025.

Other Regulation Other agencies with certain authority over the Company’s business include the Internal Revenue Service (the “IRS”), the SEC and NYSE. Ensuring compliance with the rules, regulations and orders promulgated by such entities requires extensive effort and incremental costs to comply, which affects the Company’s profitability.

Ensuring compliance with the rules, regulations and orders promulgated by such entities requires extensive effort and incremental costs to comply, which affects the Company’s profitability. Because public policy changes are commonplace, and existing laws and regulations are frequently amended, the Company is unable to predict the future cost or impact of compliance.

Removed

Of these discounted future net cash flows from proved reserves, approximately 5% are attributable to proven undeveloped reserves which would be developed through new drilling.

Added

Royalty interests, purchase price of $483,000 covering 240 producing wells in Laramie County, Wyoming and Adams and Weld Counties, Colorado. Royalty interest, purchase price of $473,000 covering 84 producing wells in DeSoto Parish, Louisiana and Karnes, Live Oak, Reagan, Reeves and Upton Counties, Texas.

Removed

The market for our oil, gas and natural gas liquids production depends on factors beyond our control including: domestic and foreign political conditions; the overall level of supply of and demand for oil, gas and natural gas liquids; the price of imports of oil and gas; weather conditions; the price and availability of alternative fuels; the proximity and capacity of gas pipelines and other transportation facilities; and overall economic conditions.

Added

Royalty interests, purchase price of $260,000 covering 3 producing wells with additional potential locations for development in Eddy County, New Mexico. Royalty interests, purchase price of $188,000 covering over 400 producing wells in multiple counties throughout the states of Nebraska, North Dakota, South Dakota and Montana. Industry Environment and Outlook The commodity price environment was challenging in fiscal 2025.

Added

For fiscal 2025, these properties accounted for 65% of our gross revenues.

Added

Additional information concerning these properties and our oil and gas reserves is provided below.

Added

Additionally, as of the date of this report, we are not aware of any environmental issues or claims that will require material capital expenditures during fiscal 2026. 8 Other Regulation Other agencies with certain authority over the Company’s business include the Internal Revenue Service (the “IRS”), the SEC and NYSE.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

22 edited+12 added−18 removed43 unchanged

2024 filing

2025 filing

Biggest changeIncreases and decreases in prices also affect the amount of cash flow available for capital expenditures and our ability to borrow money or raise additional capital. The amount we can borrow from banks may be subject to redetermination based on changes in prices. In addition, we may have ceiling test writedowns when prices decline.

Biggest changeThe amount we can borrow from banks may be subject to redetermination based on changes in prices. In addition, we may have ceiling test writedowns when prices decline. Lower prices may also reduce the amount of crude oil and natural gas that can be produced economically.

In addition, we incur the risk that no commercially productive reservoirs will be encountered, and there is no assurance that we will recover all or any portion of our investment in wells drilled or re-entered. 12 We may not be able to fund the capital expenditures that will be required for us to increase reserves and production.

In addition, we incur the risk that no commercially productive reservoirs will be encountered, and there is no assurance that we will recover all or any portion of our investment in wells drilled or re-entered. We may not be able to fund the capital expenditures that will be required for us to increase reserves and production.

Taylor, or any change in the power to vote shares beneficially owned by Mr. Taylor, could result in negative market or industry perception and could have an adverse effect on our business. 14 RISKS RELATED TO OUR COMMON STOCK We may issue additional shares of common stock in the future, which could cause dilution to all shareholders.

Taylor, or any change in the power to vote shares beneficially owned by Mr. Taylor, could result in negative market or industry perception and could have an adverse effect on our business. RISKS RELATED TO OUR COMMON STOCK We may issue additional shares of common stock in the future, which could cause dilution to all shareholders.

The unexpected loss of the services of one or more of these individuals could, therefore, significantly and adversely affect our operations. We may be affected by one substantial shareholder. Nicholas C. Taylor beneficially owns approximately 45% of the outstanding shares of our common stock. Mr. Taylor is also our Chairman of the Board and Chief Executive Officer.

The unexpected loss of the services of one or more of these individuals could, therefore, significantly and adversely affect our operations. We may be affected by one substantial shareholder. Nicholas C. Taylor beneficially owns approximately 46% of the outstanding shares of our common stock. Mr. Taylor is also our Chairman of the Board and Chief Executive Officer.

McComic, who have extensive experience and expertise in evaluating and analyzing producing oil and gas properties and drilling prospects, maximizing production from oil and gas properties and developing and executing acquisitions and financing. As of March 31, 2024, we do not have key-man insurance on the lives of Mr. Taylor and Ms. McComic.

McComic, who have extensive experience and expertise in evaluating and analyzing producing oil and gas properties and drilling prospects, maximizing production from oil and gas properties and developing and executing acquisitions and financing. As of March 31, 2025, we do not have key-man insurance on the lives of Mr. Taylor and Ms. McComic.

There were no ceiling test impairments on our oil and gas properties during fiscal 2024 and 2023. 11 We must replace reserves we produce. Our future success depends upon our ability to find, develop or acquire additional, economically recoverable oil and gas reserves.

There were no ceiling test impairments on our oil and gas properties during fiscal 2025 and 2024. 11 We must replace reserves we produce. Our future success depends upon our ability to find, develop or acquire additional, economically recoverable oil and gas reserves.

In addition, the third-party operator’s operational expertise and financial resources and its ability to gain the approval of other participants in drilling wells will impact the timing and potential success of drilling and development activites in a manner that we are unable to control.

Approximately 33% and 26% of our total estimated net proved reserves at March 31, 2024 and 2023, respectively, were undeveloped, and those reserves may not ultimately be developed. Recovery of undeveloped reserves requires significant capital expenditures and successful drilling. Our reserve data assumes that we can and will make these expenditures and conduct these operations successfully.

Approximately 28% and 33% of our total estimated net proved reserves at March 31, 2025 and 2024, respectively, were undeveloped, and those reserves may not ultimately be developed. Recovery of undeveloped reserves requires significant capital expenditures and successful drilling. Our reserve data assumes that we can and will make these expenditures and conduct these operations successfully.

Control by our executive officers and directors may limit your ability to influence the outcome of matters requiring stockholder approval and could discourage our potential acquisition by third parties. As of March 31, 2024, our executive officers and directors beneficially owned approximately 48% of our common stock.

Control by our executive officers and directors may limit your ability to influence the outcome of matters requiring stockholder approval and could discourage our potential acquisition by third parties. As of March 31, 2025, our executive officers and directors beneficially owned approximately 49% of our common stock.

Lower prices or lack of storage may have an adverse affect on our financial condition due to reduction of our revenues, operating income and cash flows; curtailment or shut-in of our production due to lack of transportation or storage capacity; cause certain properties in our portfolio to become economically unviable; and, limit our financial condition, liquidity, and/or ability to finance planned capital expenditures and operations. 10 Our results of operations may be negatively impacted by current global events.

A third-party operator’s failure to adequately perform operations, breach of the applicable agreements or failure to act in ways that are favorable to us could reduce our production and revenues, negatively impact our liquidity and cause us to spend capital in excess of our current plans, and have a material adverse effect on our financial condition and results of operations.

As a result, we may be placed at a competitive disadvantage. Our ability to acquire and develop additional properties in the future will depend upon our ability to select and acquire suitable producing properties and prospects for future development activities. 13 We may not be insured against all of the operating hazards to which our business is exposed.

Our ability to acquire and develop additional properties in the future will depend upon our ability to select and acquire suitable producing properties and prospects for future development activities. We may not be insured against all of the operating hazards to which our business is exposed.

Factors that can cause price fluctuations include the level of global demand for petroleum products; foreign supply and pricing of oil and gas; the actions of OPEC, its members and other state-controlled oil companies relating to oil price and production controls; nature and extent of governmental regulation and taxation, including environmental regulations; level of domestic and international exploration, drilling and production activity; the cost of exploring for, producing and delivering oil and gas; speculative trading in crude oil and natural gas derivative contracts; availability, proximity and capacity of oil and gas pipelines and other transportation facilities; weather conditions; the price and availability of alternative fuels; technological advances affecting energy consumption; national and international pandemics; and, overall political and economic conditions in oil producing countries.

We use the full cost method to account for oil and gas operations. Accordingly, we capitalize the cost to acquire, explore for and develop crude oil and natural gas properties including the cost of abandoned properties, dry holes, geophysical costs and annual lease rentals.

Lower oil and gas prices increase the risk of ceiling limitation write-downs. We use the full cost method to account for oil and gas operations. Accordingly, we capitalize the cost to acquire, explore for and develop crude oil and natural gas properties including the cost of abandoned properties, dry holes, geophysical costs and annual lease rentals.

Acquiring reserves in the oil and gas industry is highly competitive. Competition for oil and gas reserve acquisitions is significant. We may compete with major oil and gas companies, other independent oil and gas companies and individual producers and operators, some of which have financial and personnel resources substantially in excess of those available to us.

The loss of our chief executive officer or president could adversely impact our ability to execute our business strategy. We depend, and will continue to depend in the foreseeable future, upon the continued services of our Chief Executive Officer, Nicholas C. Taylor and our President and Chief Financial Officer, Tamala L.

We depend, and will continue to depend in the foreseeable future, upon the continued services of our Chief Executive Officer, Nicholas C. Taylor and our President and Chief Financial Officer, Tamala L.

Congress has considered legislation to reduce emissions of GHGs, including methane, a primary component of natural gas, and carbon dioxide, a byproduct of the burning of natural gas.

Congress has considered legislation to reduce emissions of GHGs, including methane, a primary component of natural gas, and carbon dioxide, a byproduct of the burning of natural gas. Addressing GHG emissions with legislation on emissions fees could increase operating costs within the oil and gas industry.

Drilling and operating activities are high risk activities that subject us to a variety of factors that we cannot control. These factors include availability of workover and drilling rigs, well blowouts, cratering, explosions, fires, formations with abnormal pressures, pollution, releases of toxic gases and other environmental hazards and risks.

These factors include availability of workover and drilling rigs, well blowouts, cratering, explosions, fires, formations with abnormal pressures, pollution, releases of toxic gases and other environmental hazards and risks. Any of these operating hazards could result in substantial losses to us.

Lower prices may also reduce the amount of crude oil and natural gas that can be produced economically. Thus, we may experience material increases or decreases in reserve quantities solely as a result of price changes and not as a result of drilling or well performance.

Thus, we may experience material increases or decreases in reserve quantities solely as a result of price changes and not as a result of drilling or well performance. Changes in oil and gas prices impact both estimated future net revenue and the estimated quantity of proved reserves.

In addition, certain cyber incidents, such as surveillance, may remain undetected for an extended period. Our systems for protecting against cyber security risks may not be sufficient. As cyber incidents continue to evolve, we may be required to expend additional resources to continue to modify or enhance our protective measures or to investigate and remediate any vulnerability to cyber incidents.

In addition, certain cyber incidents, such as surveillance, may remain undetected for an extended period. Our systems for protecting against cyber security risks may not be sufficient.

Numerous factors may influence local pricing, such as refinery capacity, pipeline capacity and specifications, upsets in the midstream or downstream sectors of the industry, trade restrictions and governmental regulations. Additionally, insufficient pipeline capacity, lack of demand in any given operating area or other factors may cause the differential to increase in a particular area compared with other producing areas.

During fiscal 2024, differentials averaged $2.68 per Bbl of oil and ($0.15) per Mcf of gas. Increases in the differential between the benchmark prices for oil and gas and the wellhead price we receive could significantly reduce our revenues and our cash flow from operations.

Increases in the differential between the benchmark prices for oil and gas and the wellhead price we receive could significantly reduce our revenues and our cash flow from operations. 12 Drilling and operating activities are high risk activities that subject us to a variety of factors that we cannot control.

Removed

Changes in oil and gas prices impact both estimated future net revenue and the estimated quantity of proved reserves.

Added

Our results of operations may be negatively impacted by current global events, including the imposition of tariffs.

Removed

The United States and certain countries in Europe and Asia are facing economic struggles or slowing economic growth. If these conditions worsen, combined with a decline in economic growth in other parts of the world, there could be a significant adverse effect on global financial markets and commodity prices.

Added

Our business, financial condition and future results are subject to political and economic risks and uncertainties, including volatility in the political, legal and regulatory environments as a result of the change in U.S. presidential administration and instability resulting from civil unrest, political demonstrations, mass strikes or armed conflict or other crises in crude oil or natural gas producing areas such as the ongoing war between Russia and Ukraine and the Israel-Iran conflict.

Removed

In addition, continued hostilities in the Middle East and the occurrence or threat of terrorist attacks in the United States or other countries could adversely affect the global economy.

Added

Escalating trade tensions, particularly between the U.S. and Canada, Mexico, China and other countries, may lead to the imposition of tariffs and trade restrictions. Our operators could face unanticipated costs and competition for materials and components to continue their current drilling plans.

Removed

Global or national health concerns may adversely affect the Company by (i) reducing demand for its oil, NGLs and gas because of reduced global or national economic activity, (ii) impairing its supply chain (for example, by limiting manufacturing of materials used in operations) and (iii) affecting the health of its workforce, rendering employees unable to work or travel.

Added

In addition, the current U.S. presidential administration has signaled it will encourage increased domestic production of crude oil, which could lead to falling crude oil and natural gas prices. Changes in environmental laws could increase our operators’ costs and adversely impact our business, financial condition and cash flows. In recent years the U.S.

Removed

Deteriorating economic climate in the United States or abroad due to inflation, rising interest rates or otherwise, demand for petroleum products could diminish or stagnate, which could depress the prices at which the Company could sell its oil, NGLs and gas, affect the ability of the Company’s vendors, suppliers and customers to continue operations and ultimately decrease the Company’s cash flows and profitability.

Added

Fluids resulting from crude oil and natural gas production, consisting primarily of salt-water, are disposed by injection in belowground disposal wells. In recent years, state and federal regulatory agencies have focused on a possible connection between fluid injection and increased seismic activity.

Removed

In addition, reduced worldwide demand for debt and equity securities issued by oil and gas companies may make it more difficult for the Company to raise capital to fund its operations or refinance its debt obligations. Changes in environmental laws could increase our operators’ costs and adversely impact our business, financial condition and cash flows.

Added

The Texas Railroad Commission has suspended or limited new well permits for salt water disposal wells, particularly in the Permian Basin. Increased regulation on the treatment and disposal of fluids could increase operating costs and curtail economical drilling. Lower oil and gas prices and other factors may cause us to record ceiling test writedowns.

Removed

President Biden has indicated that he is supportive of, and has issued executive orders promoting various programs and initiatives designed to, among other things, curtail climate change, control the release of methane from new and existing oil and natural gas operations, and decarbonize electric generation and the transportation sector. In recent years the U.S.

Added

Additionally, insufficient pipeline capacity, lack of demand in any given operating area or other factors may cause the differential to increase in a particular area compared with other producing areas. During fiscal 2025, differentials averaged $2.79 per Bbl of oil and ($0.30) per Mcf of gas.

Removed

For example, the Inflation Reduction Act of 2022 (the “IRA”), which appropriates significant federal funding for renewable energy initiatives and, for the first time ever, imposes a fee on GHG emissions from certain facilities, was signed into law in August 2022.

Added

Changes in effective tax rates or laws could adversely impact our results of operations. Our future effective tax rates could be subject to volatility or adversely affected by a number of factors, including: changes in the valuation of our deferred tax assets and liabilities; tax effects of stock-based compensation; or changes in tax laws, regulations or interpretations thereof.

Removed

The emissions fee and funding provisions of the law could increase operating costs within the oil and gas industry and accelerate the transition away from fossil fuels, which could in turn adversely affect our business and results of operations.

Added

For example, in previous years, legislation has been proposed to eliminate or defer certain key U.S. federal income tax deductions historically available to crude oil and natural gas exploration and production companies.

Removed

Governmental, scientific and public concern over the threat of climate change arising from GHG emissions has resulted in increasing political risks in the United States, including climate change related pledges made by certain candidates elected to public office.

Added

Such proposed changes have included: a repeal of the percentage depletion allowance for crude oil and natural gas properties; the elimination of deductions for intangible drilling and exploration and development costs; the elimination of the deduction for certain production activities; and an extension of the amortization period for certain geological and geophysical expenditures.

Removed

President Biden has issued several executive orders focused on addressing climate change, including items that may impact costs to produce, or demand for, oil and gas. Lower oil and gas prices and other factors may cause us to record ceiling test writedowns. Lower oil and gas prices increase the risk of ceiling limitation write-downs.

Added

The passage of any legislation as a result of these proposals or other similar changes in U.S. federal income tax laws that alter, eliminate or defer these or other tax deductions utilized within the industry could adversely affect our business, financial condition, results of operations and cash flows.

Removed

Any of these operating hazards could result in substantial losses to us.

Added

As cyber incidents continue to evolve, we may be required to expend additional resources to continue to modify or enhance our protective measures or to investigate and remediate any vulnerability to cyber incidents. 14 The loss of our chief executive officer or president could adversely impact our ability to execute our business strategy.

Removed

Our effective tax rate may change in the future, which could adversely impact us.

Removed

The Tax Cuts and Jobs Act of 2017 (“TCJA”) significantly changed the U.S. federal income taxation of U.S. corporations, including by reducing the U.S. corporate tax rate, limiting interest deductions and certain deductions for executive compensation, permitting immediate expensing of certain capital expenditures, and revising the rules governing net operating losses.

Removed

The TCJA remains unclear in some respects and continues to be subject to potential amendments and technical corrections. The U.S. Treasury Department and the IRS have issued significant guidance since the TCJA was enacted, interpreting the TCJA and clarifying some the uncertainties, and are continuing to issue new guidance.

Removed

There are still significant aspects of the TCJA for which further guidance is expected, and both the timing and contents of any such future guidance are uncertain. Further, changes to the U.S. federal income tax laws are proposed regularly and there can be no assurance that, if enacted, any such changes would not have an adverse impact on us.

Removed

For example, President Biden has suggested the reversal or modification of some portions of the TCJA and certain of these proposals, if enacted, could increase our effective tax rate. There can be no assurance that any such proposed changes will be introduced as legislation or, if introduced, later enacted and, if enacted, what form such enacted legislation would take.

Removed

Such changes could potentially have retroactive effect. In light of these factors, there can be no assurance that our effective tax rate will not change in future periods. If the effective tax rates were to increase as a result of the future legislation, our business could be adversely affected.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

1 edited+1 added−0 removed11 unchanged

2024 filing

2025 filing

Biggest changeWe have programs in place to monitor our retained data with the goal of identifying personal identifiable information and taking appropriate actions to secure the data. 15 We have an IRP that delineates the procedures to be followed for handling a variety of cybersecurity incidents; categorizes potential cybersecurity incidents and the required timeframe for reporting each; establishes cybersecurity incident response levels; provides for investigations designed to help us to meet applicable legal obligations, including possible notification requirements; and outlines the roles and responsibilities for various personnel in the event of a cybersecurity incident.

Biggest changeWe have an IRP that delineates the procedures to be followed for handling a variety of cybersecurity incidents; categorizes potential cybersecurity incidents and the required timeframe for reporting each; establishes cybersecurity incident response levels; provides for investigations designed to help us to meet applicable legal obligations, including possible notification requirements; and outlines the roles and responsibilities for various personnel in the event of a cybersecurity incident.

Added

We have programs in place to monitor our retained data with the goal of identifying personal identifiable information and taking appropriate actions to secure the data.

Item 2. Properties

Properties — owned and leased real estate

21 edited+3 added−1 removed19 unchanged

2024 filing

2025 filing

Biggest changeWe have not filed any other oil or gas reserve estimates or included any such estimates in reports to other federal or foreign governmental authority or agency during the year ended March 31, 2024, and no major discovery is believed to have caused a significant change in our estimates of proved reserves since that date. 18 Drilling Activities The following table sets forth our drilling activity in wells in which we own a working interest for the years ended March 31: Year Ended March 31, 2024 2023 Gross Net Gross Net Exploratory Wells Beginning wells in progress - - - - Wells spud - - - - Successful wells - - - - Ending wells in progress - - - - Development Wells Beginning wells in progress 21 .05 11 .04 Wells spud 48 .22 54 .36 Successful wells (53 ) (.09 ) (44 ) (.35 ) Ending wells in progress 16 .17 21 .05 The information contained in the foregoing table should not be considered indicative of future drilling performance, nor should it be assumed that there is any necessary correlation between the number of productive wells drilled and the amount of oil and gas that may ultimately be recovered by us.

Biggest changeDrilling Activities The following table sets forth our drilling activity in wells in which we own a working interest for the years ended March 31: Year Ended March 31, 2025 2024 Gross Net Gross Net Exploratory Wells Beginning wells in progress - - - - Wells spud 1 .10 - - Successful wells 0 - - - Ending wells in progress - - - - Development Wells Beginning wells in progress 16 .17 21 .05 Wells spud 38 .09 48 .22 Successful wells (37 ) (.23 ) (53 ) (.09 ) Ending wells in progress 17 .03 16 .17 The information contained in the foregoing table should not be considered indicative of future drilling performance, nor should it be assumed that there is any necessary correlation between the number of productive wells drilled and the amount of oil and gas that may ultimately be recovered by us.

Our Chief Financial Officer who has over 26 years experience in the oil and gas industry reviews the final reserves estimate and consults with a degreed geological consultant with extensive geological experience and if necessary, discusses the process used and findings with Alan Neal, the technical person at Hall and Associates responsible for evaluating the proved reserves covered by this report.

Our Chief Financial Officer who has over 30 years experience in the oil and gas industry reviews the final reserves estimate and consults with a degreed geological consultant with extensive geological experience and if necessary, discusses the process used and findings with Alan Neal, the technical person at Hall and Associates responsible for evaluating the proved reserves covered by this report.

The engineering report with respect to Mexco’s estimates of proved oil and gas reserves as of March 31, 2024 and 2023 is based on evaluations prepared by Russell K. Hall and Associates, Inc. Environmental Engineering Consultants, based in Midland, Texas (“Hall and Associates”), a summary of which is filed as Exhibit 99.1 to this annual report.

The engineering report with respect to Mexco’s estimates of proved oil and gas reserves as of March 31, 2025 and 2024 is based on evaluations prepared by Russell K. Hall and Associates, Inc. Environmental Engineering Consultants, based in Midland, Texas (“Hall and Associates”), a summary of which is filed as Exhibit 99.1 to this annual report.

In addition to the working interests mentioned above, other operators drilled 101 gross wells (.02 net wells) on company-owned minerals and royalties at no expense to the Company. We expect the production of our mineral interests will increase as operators continue to drill, complete and develop our acreage.

In addition to the working interests mentioned above, other operators drilled 120 gross wells (.09 net wells) on company-owned minerals and royalties at no expense to the Company. We expect the production of our mineral interests will increase as operators continue to drill, complete, and develop our acreage.

Mr. Neal is a member of the Society of Petroleum Engineers and has over 36 years of experience in the oil and gas industry. Our Chairman and Chief Executive Officer who has over 46 years of experience in the oil and gas industry also reviews the final reserves estimate. Numerous uncertainties exist in estimating quantities of proved reserves.

Mr. Neal is a member of the Society of Petroleum Engineers and has over 40 years of experience in the oil and gas industry. Our Chairman and Chief Executive Officer who has over 50 years of experience in the oil and gas industry also reviews the final reserves estimate. Numerous uncertainties exist in estimating quantities of proved reserves.

The benchmark price of $2.45 per mcf of natural gas at March 31, 2024 versus $5.96 at March 31, 2023, was adjusted by lease for BTU content, transportation fees and market differentials.

The benchmark price of $2.44 per mcf of natural gas at March 31, 2025 versus $2.45 at March 31, 2024, was adjusted by lease for BTU content, transportation fees and market differentials.

The benchmark price of $73.96 per bbl of oil at March 31, 2024 versus $87.45 at March 31, 2023, was adjusted by lease for gravity, transportation fees and market differentials and did not give effect to derivative transactions.

The benchmark price of $71.00 per bbl of oil at March 31, 2025 versus $73.96 at March 31, 2024, was adjusted by lease for gravity, transportation fees and market differentials and did not give effect to derivative transactions.

(2) The PV-10 Value represents the discounted future net cash flows attributable to our proved oil and gas reserves before income tax, discounted at 10% per annum, which is the most directly comparable GAAP financial measure.

Business – Company Profile on page 3 hereto. (2) The PV-10 Value represents the discounted future net cash flows attributable to our proved oil and gas reserves before income tax, discounted at 10% per annum, which is the most directly comparable GAAP financial measure.

(4) These prices reflect adjustment by lease for quality, transportation fees and market differentials. During fiscal 2024, we added proved reserves of 272 thousand BOE (“MBOE”) through extensions and discoveries, added 44 MBOE through acquisitions, subtracted 163 MBOE for downward revisions of previous estimates.

(4) These prices reflect adjustment by lease for quality, transportation fees and market differentials. During fiscal 2025, we added proved reserves of 101 thousand BOE (“MBOE”) through extensions and discoveries, added 77 MBOE through acquisitions, subtracted 145 MBOE for downward revisions of previous estimates.

As of March 31, 2024, we held an interest in approximately 6,800 gross (25.7 net) productive wells, including approximately 5,700 wells in which we held an overriding or royalty interest and 1,100 wells in which we held a working interest. A gross acre is an acre in which an interest is owned.

As of March 31, 2025, we held an interest in approximately 7,500 gross (26.4 net) productive wells, including approximately 6,400 wells in which we held an overriding or royalty interest and 1,100 wells in which we held a working interest. 19 A gross acre is an acre in which an interest is owned.

Oil and gas prices significantly impact the calculation of the PV-10 and the standardized measure of discounted future net cash flows. The present value of future net cash flows does not purport to be an estimate of the fair market value of the Company’s proved reserves.

The present value of future net cash flows does not purport to be an estimate of the fair market value of the Company’s proved reserves.

PROVED RESERVES March 31, 2024 2023 Oil (Bbls): Proved developed – Producing 394,000 451,000 Proved developed – Non-producing 50,620 35,770 Proved undeveloped 346,330 240,060 Total 790,950 726,830 Natural gas (Mcf): Proved developed – Producing 3,346,460 3,826,370 Proved developed – Non-producing 219,780 145,000 Proved undeveloped 970,880 978,010 Total 4,537,120 4,949,380 Total net proved reserves (BOE) (1) 1,547,127 1,551,725 PV-10 Value (2) $ 29,078,000 $ 39,473,000 Present value of future income tax discounted at 10% (4,450,000 ) (6,658,000 ) Standardized measure of discounted future net cash flows (3) $ 24,628,000 $ 32,815,000 Prices used in Calculating Reserves: (4) Natural gas (per Mcf) $ 2.75 $ 5.68 Oil (per Bbl) $ 76.88 $ 92.02 (1) These reserve estimates do not include the Company’s interest in two LLCs referred to in Item 1.

PROVED RESERVES March 31, 2025 2024 Oil (Bbls): Proved developed – Producing 390,940 394,000 Proved developed – Non-producing 14,900 50,620 Proved undeveloped 269,000 346,330 Total 674,840 790,950 Natural gas (Mcf): Proved developed – Producing 3,554,920 3,346,460 Proved developed – Non-producing 99,970 219,780 Proved undeveloped 704,810 970,880 Total 4,359,700 4,537,120 Total net proved reserves (BOE) (1) 1,401,460 1,547,127 PV-10 Value (2) $ 23,216,000 $ 29,078,000 Present value of future income tax discounted at 10% (3,141,000 ) (4,450,000 ) Standardized measure of discounted future net cash flows (3) $ 20,075,000 $ 24,628,000 Prices used in Calculating Reserves: (4) Natural gas (per Mcf) $ 2.14 $ 2.75 Oil (per Bbl) $ 73.79 $ 76.88 (1) These reserve estimates do not include the Company’s interest in two LLCs referred to in Item 1.

The following table sets forth the approximate developed acreage in which we held a leasehold mineral or other interest as of March 31, 2024: Acreage Gross Net Texas 373,500 1,531 Oklahoma 69,300 815 Louisiana 38,900 87 New Mexico 31,000 184 North Dakota 22,400 23 Ohio 20,300 1 Kansas 8,500 41 Montana 5,000 1 Wyoming 3,800 5 Colorado 3,000 11 Arkansas 1,600 5 Alabama 1,000 2 Mississippi 600 2 Virginia 100 1 Total 579,000 2,709 19 Net Production, Unit Prices and Costs The following table summarizes our net oil and natural gas production, the average sales price per barrel (“bbl”) of oil and per thousand cubic feet (“mcf”) of natural gas produced and the average production (lifting) cost per unit of production for the years ended March 31: Years Ended March 31, 2024 2023 Oil (a): Production (Bbls) 69,999 73,968 Revenue $ 5,348,257 $ 6,522,163 Average Bbls per day (d) 192 203 Average sales price per Bbl $ 76.40 $ 88.18 Gas (b): Production (Mcf) 502,879 534,363 Revenue $ 1,114,390 $ 2,858,460 Average Mcf per day (d) 1,378 1,464 Average sales price per Mcf $ 2.22 $ 5.35 Total BOE (c) 153,812 163,029 Production costs: Production expenses: $ 1,029,279 $ 1,039,893 Production expenses per BOE $ 6.69 $ 6.38 Production expenses per sales dollar $ 0.16 $ 0.11 Production and ad valorem taxes: $ 497,193 $ 679,826 Production and ad valorem taxes per BOE $ 3.23 $ 4.17 Production and ad valorem taxes per sales dollar $ 0.08 $ 0.07 Total oil and gas revenue $ 6,462,647 $ 9,380,623 (a) Includes condensate.

The following table sets forth the approximate developed acreage in which we held a leasehold mineral or other interest as of March 31, 2025: Acreage Gross Net Texas 373,100 1,514 Oklahoma 67,100 814 North Dakota 65,000 27 Louisiana 39,500 87 Wyoming 30,700 15 New Mexico 30,300 182 Ohio 26,900 2 Colorado 10,700 21 Kansas 8,500 41 Montana 7,200 1 Arkansas 1,600 5 Alabama 1,000 2 South Dakota 600 - Virginia 100 1 Total 662,300 2,712 Net Production, Unit Prices and Costs The following table summarizes our net oil and natural gas production, the average sales price per barrel (“bbl”) of oil and per thousand cubic feet (“mcf”) of natural gas produced and the average production (lifting) cost per unit of production for the years ended March 31: Years Ended March 31, 2025 2024 Oil (a): Production (Bbls) 83,564 69,999 Revenue $ 6,145,674 $ 5,348,257 Average Bbls per day (d) 229 192 Average sales price per Bbl $ 73.54 $ 76.40 Gas (b): Production (Mcf) 570,012 502,879 Revenue $ 970,811 $ 1,114,390 Average Mcf per day (d) 1,562 1,378 Average sales price per Mcf $ 1.70 $ 2.22 Total BOE (c) 178,566 153,812 Production costs: Production expenses: $ 1,043,202 $ 1,029,279 Production expenses per BOE $ 5.84 $ 6.69 Production expenses per sales dollar $ 0.15 $ 0.16 Production and ad valorem taxes: $ 561,894 $ 479,193 Production and ad valorem taxes per BOE $ 3.15 $ 3.23 Production and ad valorem taxes per sales dollar $ 0.08 $ 0.08 Total oil and gas revenue $ 7,116,485 $ 6,462,647 (a) Includes condensate.

(b) Includes natural gas products. (c) Natural gas production is converted to oil production using a ratio of six Mcf to one Bbl of oil. (d) Calculated on a 365 day year.

(b) Includes natural gas products. (c) Natural gas production is converted to oil production using a ratio of six Mcf to one Bbl of oil. (d) Calculated on a 365-day year. ITEM 3. LEGAL PROCEEDINGS We may, from time to time, be a party to various proceedings and claims incidental to our business.

Oil and Natural Gas Reserves In accordance with current SEC rules, the average prices used in computing reserves at March 31, 2024 were $76.88 per bbl of oil compared to $92.02 in 2023, a decrease of 16%, and $2.75 per mcf of natural gas compared to $5.68 in 2023, a decrease of 52%, such prices are based on the 12-month unweighted arithmetic average market prices for sales of oil and natural gas on the first calendar day of each month during fiscal 2024.

As of March 31, 2025, we had interests in approximately 7,500 gross (26.4 net) producing oil and gas wells and owned leasehold mineral, royalty and other interests in approximately 662,000 gross (2,712 net) acres. 16 Oil and Natural Gas Reserves In accordance with current SEC rules, the average prices used in computing reserves at March 31, 2025 were $73.79 per bbl of oil compared to $76.88 in 2024, a decrease of 4%, and $2.14 per mcf of natural gas compared to $2.75 in 2024, a decrease of 22%, such prices are based on the 12-month unweighted arithmetic average market prices for sales of oil and natural gas on the first calendar day of each month during fiscal 2025.

During the fiscal year ending March 31, 2024, we had a working or royalty interest in the development of 43 wells converting reserves of approximately 62,000 BOE from proved undeveloped to proved developed – producing with capital cost of approximately $940,000.

During the fiscal year ending March 31, 2025, we had a working or royalty interest in the development of 27 wells, converting reserves of approximately 84,000 BOE from proved undeveloped to proved developed – producing with a capital cost of approximately $645,000. 18 Oil and gas prices significantly impact the calculation of the PV-10 and the standardized measure of discounted future net cash flows.

Such downward revisions are primarily attributable to a decrease in crude oil and natural gas prices and partially the result of reserves written off due to the five-year limitation and the change in the timing of new development.

Such downward revisions are primarily attributable to reserves written off due to the five-year limitation and the change in the timing of new development. The reserves written off were primarily in Lea County, New Mexico due to a change in the timing of development in wells in which we own a working interest.

For information concerning our costs incurred for oil and gas operations, net revenues from oil and gas production, estimated future net revenues attributable to our oil and gas reserves, present value of future net revenues discounted at 10% and changes therein, see Notes to the Company’s consolidated financial statements. 16 Proved reserves are estimated reserves of crude oil (including condensate and natural gas liquids) and natural gas that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions.

The reserves written off were primarily royalty interests on leases in DeSoto Parish, Louisiana and Karnes County, Texas which are held by production and still in place to be developed in the future.

These interests are held by production and still in place to be developed in the future.

ITEM 2. PROPERTIES Our properties consist primarily of oil and gas wells and our ownership in leasehold acreage, both developed and undeveloped. As of March 31, 2024, we had interests in approximately 6,800 gross (25.7 net) producing oil and gas wells and owned leasehold mineral, royalty and other interests in approximately 579,000 gross (2,709 net) acres.

ITEM 2. PROPERTIES Our properties consist primarily of oil and gas wells and our ownership in leasehold acreage, both developed and undeveloped.

Proved developed reserves are those expected to be recovered through existing wells, equipment and operating methods.

Proved reserves are estimated reserves of crude oil (including condensate) and natural gas that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. Proved developed reserves are those expected to be recovered through existing wells, equipment and operating methods.

Removed

Business – Company Profile on page 4 hereto. The first LLC has returned $276,098 and 92% of the total investment since inception in fiscal 2020.

Added

We have not filed any other oil or gas reserve estimates or included any such estimates in reports to other federal or foreign governmental authorities or agencies during the year ended March 31, 2025, and no major discovery is believed to have caused a significant change in our estimates of proved reserves since that date.

Added

While many of these matters involve inherent uncertainty, we believe that the amount of the liability, if any, ultimately incurred with respect to these proceedings and claims will not have a material adverse effect on our consolidated financial position as a whole or on our liquidity, capital resources or future results of operations. ITEM 4.

Added

MINE SAFETY DISCLOSURES Not applicable. 20 PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

0 edited+18 added−2 removed0 unchanged

2024 filing

2025 filing

Removed

Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 21 Item 6. Reserved 22 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 23 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 30 Item 8. Financial Statements and Supplementary Data 31 Item 9.

Added

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information In September 2003, our common stock began trading on the NYSE American, formerly the American Stock Exchange and more recently the NYSE MKT, under the symbol “MXC”.

Removed

Changes in and Disagreements with Accountants on Accounting and Financial Disclosures 31 Item 9A. Controls and Procedures 31 Item 9B. Other Information 32

Added

Prior to September 2003, the Company’s common stock was traded on the over-the-counter bulletin board market under the symbol “MEXC”. The registrar and transfer agent is Issuer Direct Corporation, 500 Perimeter Park Drive, Suite D, Morrisville, North Carolina, 27560 (Tel: 877-481-4014).

Added

The following table sets forth certain information as to the high and low sales price quoted for Mexco’s common stock on the NYSE American.

Added

High Low 2025: April - June 2024 $ 16.52 $ 9.84 July - September 2024 14.10 10.11 October - December 2024 13.78 10.55 January - March 2025 14.11 7.55 2024: April - June 2023 $ 13.84 $ 10.30 July - September 2023 13.63 11.36 October - December 2023 13.50 9.05 January - March 2024 10.49 9.02 On March 31, 2025, the closing sales price of our common stock on the NYSE American was $8.17 per share.

Added

Stockholders As of March 31, 2025, we had 2,239,283 shares issued and 809 shareholders of record, which does not include shareholders for whom shares are held in a “nominee” or “street” name. Of these issued shares, 193,283 are held in the treasury. As of March 31, 2025, there were 2,046,000 shares outstanding.

Added

Dividends Prior to March 31, 2023, the Company had never paid a cash dividend to the Company’s shareholders. Payment of dividends is at the discretion of our Board of Directors (the “Board”) after considering many factors, including our financial condition, operating results, current and anticipated cash needs, and plans for expansion.

Added

In addition, our current bank loan prohibits us from paying cash dividends on our common stock without written permission. On April 30, 2024, the Company announced that its Board declared a regular annual dividend of $0.10 per common share to its shareholders of record at the close of business on May 21, 2024.

Added

The dividend was paid on June 4, 2024. The Company obtained written permission from West Texas National Bank (“WTNB”) prior to declaring the regular annual dividend. On April 10, 2023, the Company announced that its Board declared a special dividend of $0.10 per common share to its shareholders of record at the close of business on May 1, 2023.

Added

The special dividend was paid on May 15, 2023. The Company obtained written permission from WTNB prior to declaring the special dividend. Subsequently, on May 13, 2025, the Company announced that its Board declared a regular annual dividend of $0.10 per common share to its shareholders of record at the close of business on June 2, 2025.

Added

The dividend was paid on June 16, 2025. The Company obtained written permission from WTNB prior to declaring the regular annual dividend. The Company can provide no assurance that dividends will be authorized or declared in the future or as to the amount or type of any future dividends.

Added

Our Board determination with respect to any such dividends, including the record date, the payment date and the actual amount of the dividend, will depend upon our profitability and financial condition, contractual restrictions, restrictions imposed by applicable law and other factors that the board deems relevant at the time of such determination. 21 Securities Authorized for Issuance Under Compensation Plans The following table includes certain information about our Employee Incentive Stock Plan as of March 31, 2025, which has been approved by our stockholders.

Added

Number of Shares Authorized for Issuance under Plan Number of Shares to be Issued upon Exercise of Outstanding Options Weighted Average Exercise Price of Outstanding Options Number of Shares Remaining Available for Future Issuance under Plan 2009 Plan 200,000 35,000 $ 4.84 - 2019 Plan 200,000 115,883 10.93 66,000 Total 400,000 150,883 $ 9.52 66,000 Issuer Repurchases In April 2024, the Board authorized the use of up to $1,000,000 to repurchase shares of the Company’s common stock for the treasury account.

Added

This program does not have an expiration date and may be modified, suspended or terminated at any time by the Board. Under the repurchase program, share of common stock may be purchased from time to time through open market purchases or other transactions.

Added

The amount and timing of repurchases will be subject to the availability of stock, prevailing market conditions, the trading price of stock, our financial performance and other conditions. Repurchases may also be made from time-to-time in connection with the settlement of our share-based compensation awards. Repurchases will be funded from cash flow.

Added

The following table provides information related to repurchases of our common stock for the treasury account during the year ended March 31, 2025: Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Program Approximate Dollar Value of Shares that May Yet be Purchased Under the Program April 1-30, 2024 13,766 $ 13.70 13,766 $ 811,363 May 1-31, 2024 - - - $ 811,363 June 1-30, 2024 - - - $ 811,363 July 1-30, 2024 4,557 $ 11.78 4,557 $ 757,679 August 1-31, 2024 17,743 $ 11.95 17,743 $ 545,734 September 1-30, 2024 21,700 $ 11.47 21,700 $ 296,784 October 1-31, 2024 - - - $ 296,784 November 1-30, 2024 - - - $ 296,784 December 1-31, 2024 - - - $ 296,784 January 1-31, 2025 - - - $ 296,784 February 1-28, 2025 - - - $ 296,784 March 1-31, 2025 - - - $ 296,784 Total 57,766 $ 12.17 57,766 During the year ended March 31, 2025, the Company repurchased 57,766 shares for the treasury account at an aggregate cost of $703,216, an average price of $12.17 per share.

Added

During the year ended March 31, 2024, the Company repurchased 50,101 shares for the treasury account at an aggregate cost of $585,035, an average price of $11.68 per share. On August 16, 2022, President Biden signed into law the Inflation Reduction Act of 2022 (“IRA 2022”).

Added

The IRA 2022, among other tax provisions, establishes a 1% excise tax on stock repurchases made by publicly traded U.S. corporations, effective for stock repurchases after December 31, 2022.

Added

The IRA 2022 does provide for certain exceptions for repurchases of stock including an exception as long as the aggregate value of the repurchases for the tax year does not exceed $1,000,000. 22 ITEM 6. RESERVED

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

59 edited+20 added−20 removed34 unchanged

2024 filing

2025 filing

Biggest changeThree horizontal wells in the Bone Spring formation of the Delaware Basin in Eddy County, New Mexico in which the Company participated during fiscal 2023 were completed in May 2023 with initial average production rates of 437 barrels of oil, 983 barrels of water and 603,000 cubic feet of gas per day, or, 538 barrels of oil equivalent per day.

Biggest changeSubsequently, in June 2025, one of these wells were completed with initial average production rates of 676 barrels of oil, 1,899 barrels of water and 729,000 cubic feet of gas per day, or 798 BOE per day Mexco expended approximately $46,000 for the drilling of two horizontal wells in the Bone Spring Sand formation of the Delaware Basin in Lea County, New Mexico.

Depreciation, depletion, amortization and impairment of crude oil and natural gas properties are generally calculated on a well by well or lease or field basis versus the “full cost” pool basis. Additionally, gain or loss is generally recognized on all sales of crude oil and natural gas properties under the successful efforts method.

Depreciation, depletion, amortization and impairment of crude oil and natural gas properties are generally calculated on a well by well, lease, or field basis versus the “full cost” pool basis. Additionally, gain or loss is generally recognized on all sales of crude oil and natural gas properties under the successful efforts method.

The allowance for credit losses is determined based on a number of factors, including the length of time accounts receivable are past due, the Company’s previous loss history, the debtor’s current ability to pay its obligation to the Company, the condition of the general economy and the industry as a whole. Income Taxes .

The effect on deferred tax assets and liabilities of a change in tax rates is recognized in net income in the period that includes the enactment date. Any interest and penalties are recorded as interest expense and general and administrative expense, respectively. 29 Other Property and Equipment .

Variations in cash flow from operating activities may impact our level of exploration and development expenditures. Our expenditures in operating activities consist primarily of production expenses and engineering services.

We are participating in other projects and are reviewing projects in which we may participate. The cost of such projects would be funded, to the extent possible, from existing cash balances and cash flow from operations. The remainder may be funded through borrowings on the credit facility and, if appropriate, sales of non-core properties. Markets.

Estimates of our proved reserves are based on the quantities of oil and gas that engineering and geological analysis demonstrates, with reasonable certainty, to be recoverable from established reservoirs in the future under current operating and economic parameters.

Estimates of our proved reserves are based on the quantities of oil and gas that engineering and geological analysis demonstrate, with reasonable certainty, to be recoverable from established reservoirs in the future under current operating and economic parameters.

The estimates of proved reserves materially impact DD&A expense. If the estimates of proved reserves decline, the rate at which we record DD&A expense will increase, reducing future net income. Such a decline may result from lower market prices, which may make it uneconomic to drill for and produce higher cost projects. 28 Use of Estimates .

If the estimates of proved reserves decline, the rate at which we record DD&A expense will increase, reducing future net income. Such a decline may result from lower market prices, which may make it uneconomic to drill for and produce higher cost projects. Use of Estimates .

As the Company’s lease does not provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate used at adoption was 3.75%. Significant judgement is required when determining the incremental borrowing rate.

As the Company’s lease does not provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate used at adoption was 9%. Significant judgement is required when determining the incremental borrowing rate.

Cash Flow Used in Financing Activities. Cash flow from financing activities is derived from our changes in long-term debt and in equity account balances. Net cash flow used in our financing activities was $779,723 for the year ended March 31, 2024 compared to net cash flow used in our financing activities of $209,815 for the year ended March 31, 2023.

Cash Flow Used in Financing Activities. Cash flow from financing activities is derived from our changes in long-term debt and in equity account balances. Net cash flow used in our financing activities was $834,575 for the year ended March 31, 2025 compared to net cash flow used in our financing activities of $779,723 for the year ended March 31, 2024.

Cash flow from investing activities is derived from changes in oil and gas property balances. For the year ended March 31, 2024, we had net cash of $3,016,499 used for additions to oil and gas properties and a $400,000 investment in two limited liability companies compared to $5,014,357 and $425,000, respectively, for the year ended March 31, 2023.

Cash flow from investing activities is derived from changes in oil and gas property balances. For the year ended March 31, 2025, we had net cash of $3,154,575 used for additions to oil and gas properties and a $1,000,000 investment in two limited liability companies compared to $3,016,499 and $400,000, respectively, for the year ended March 31, 2024.

Mexco expended approximately $105,000 to participate in the drilling and completion of two horizontal wells in the Penn Shale formation of the Delaware Basin in Lea County, New Mexico. Mexco’s working interest in these wells is approximately .285%.

Mexco expended approximately $176,000 for the drilling and completion of two horizontal wells in the Penn Shale formation of the Delaware Basin in Lea County, New Mexico. Mexco’s average working interest in these wells is .5%.

Under the successful efforts method, geological and geophysical costs and costs of carrying and retaining undeveloped properties are charged to expense as incurred. Costs of drilling exploratory wells that do not result in proved reserves are charged to expense.

This includes any sales of properties such as Term assignments and Assignments, Bill of Sales and Conveyances. Under the successful efforts method, geological and geophysical costs and costs of carrying and retaining undeveloped properties are charged to expense as incurred. Costs of drilling exploratory wells that do not result in proved reserves are charged to expense.

In July 2023, Mexco expended approximately $36,000 to participate in the drilling and completion of two horizontal wells in the Bone Spring Sand formation of the Delaware Basin in Lea County, New Mexico. Mexco’s working interest in these wells is approximately .1%.

Mexco expended approximately $117,000 for the drilling and completion of two horizontal wells in the Bone Spring Sand formation of the Delaware Basin in Lea County, New Mexico. Mexco’s working interest in these wells is .5%.

Cash flow provided by our operating activities for the year ended March 31, 2024 was $4,433,935 in comparison to $6,515,895 for the year ended March 31, 2023.

Cash flow provided by our operating activities for the year ended March 31, 2025 was $4,269,621 in comparison to $4,433,935 for the year ended March 31, 2024.

Seven horizontal wells in the Bone Spring Sand formation of the Delaware Basin in Lea County, New Mexico in which the Company participated during fiscal 2023 were completed with initial average production rates of 1,827 barrels of oil, 1,945 barrels of water and 2,264,000 cubic feet of gas per day, or, 2,204 barrels of oil equivalent per day.

Five horizontal wells in the Bone Spring Sand formation of the Delaware Basin in Lea County, New Mexico in which the Company participated during fiscal 2024 were completed in April 2024 with initial average production rates of 732 barrels of oil, 1,481 barrels of water and 657,000 cubic feet of gas per day, or 842 of oil equivalent per day.

For example, in the last twelve months, the NYMEX West Texas Intermediate (“WTI”) posted price for crude oil has ranged from a low of $63.10 per bbl in June 2023 to a high of $89.66 per bbl in September 2023.

For example, in the last twelve months, the NYMEX West Texas Intermediate (“WTI”) posted price for crude oil has ranged from a low of $61.73 per bbl in September 2024 to a high of $82.89 per bbl in April 2024.

On March 31, 2024 the WTI posted price for crude oil was $79.15 per bbl and the Henry Hub spot price for natural gas was $1.54 per MMBtu. See Results of Operations below for realized prices.

On March 31, 2025 the WTI posted price for crude oil was $67.46 per bbl and the Henry Hub spot price for natural gas was $4.11 per MMBtu. See Results of Operations below for realized prices.

Subsequently, in April 2024, the Company acquired small royalty (mineral) interests in 21 wells operated by Anadarko Petroleum Corporation and Cimarex Energy Company and located in Reeves County, Texas for a purchase price of $158,000 which is effective April 1, 2024. 25 Sales of Properties.

In April 2024, the Company acquired royalty interests in 21 producing wells operated by Anadarko Petroleum Corporation and Cimarex Energy Company and located in Reeves County, Texas, for a purchase price of $158,000.

Mexco expended approximately $870,000 to participate in the drilling of five horizontal wells in the Bone Spring Sand formation of the Delaware Basin in Lea County, New Mexico. Mexco’s working interest in these wells is approximately 1.16%.

Mexco’s working interest in these wells is .28%. Mexco expended approximately $70,000 to participate in the drilling of six horizontal wells in the Bone Spring Sand formation of the Delaware Basin in Lea County, New Mexico. Mexco’s working interest in these wells is .16%. Subsequently, in May 2025, Mexco expended approximately $85,000 to complete these wells.

Of this total obligation for the remainder of the lease, our majority shareholder will pay $5,191 less than 1 year for his portion of the shared office space.

Of this total obligation for the remainder of the lease, our majority shareholder will pay $10,175 less than 1 year and $13,567 1-3 years for his portion of the shared office space.

The following table summarizes future payments we are obligated to make based on agreements in place as of March 31, 2024: Payments due in: Total less than 1 year 1 - 3 years over 3 years Contractual obligations: Leases (1) $ 19,413 $ 19,413 - $ - (1) The lease amount represents the monthly rent amount for our principal office space in Midland, Texas under a 38-month lease agreement effective May 15, 2018 and extended another 36 months to July 31, 2024.

The following table summarizes future payments we are obligated to make based on agreements in place as of March 31, 2025: Payments due in: Total less than 1 year 1 - 3 years over 3 years Contractual obligations: Leases (1) $ 140,747 $ 60,320 80,427 $ - (1) The lease amount represents the monthly rent amount for our principal office space in Midland, Texas under a 36-month lease agreement expiring July 31, 2027.

Because these estimates depend on many assumptions, all of which may substantially differ from future actual results, reserve estimates will be different from the quantities of oil and gas that are ultimately recovered. In addition, results of drilling, testing and production after the date of an estimate may justify material revisions to the estimate.

During the year ended March 31, 2024, we expended $213,600 to pay the annual dividend, expended $585,035 to purchase 50,101 shares of our stock for the treasury account, and received proceeds of $19,662 for the exercise of employee and director stock options. 23 Accordingly, net cash decreased $719,529, leaving cash and cash equivalents on hand of $1,753,955 as of March 31, 2025.

In addition to the above working interests, there were 101 gross wells (.025 net wells) drilled by other operators on Mexco’s royalty interests and 348 gross wells (7.65 net wells) obtained through acquisitions. Mexco expended approximately $264,000 to participate in the drilling of four horizontal wells in the Wolfcamp Sand formation of the Delaware Basin in Lea County, New Mexico.

In addition to the above working interests, there were 120 gross wells (.09 net wells) drilled by other operators on Mexco’s royalty interests and 840 gross wells (2.31 net wells) obtained through acquisitions. Mexco expended approximately $207,000 to participate in the drilling of five horizontal wells in the Bone Spring formation of the Delaware Basin in Lea County, New Mexico.

The Henry Hub Spot Market Price (“Henry Hub”) for natural gas has ranged from a low of $1.25 per MMBtu in March 2024 to a high of $3.34 per MMBtu in October 2023.

The Henry Hub Spot Market Price (“Henry Hub”) for natural gas has ranged from a low of $1.21 per MMBtu in November 2024 to a high of $9.86 per MMBtu in January 2025.

Gain or loss on the sale or other disposition of oil and gas properties is not recognized, unless the sale would significantly alter the relationship between capitalized costs and proved reserves of oil and natural gas attributable to a country.

Sales of oil and natural gas properties, whether or not being amortized currently, are accounted for as adjustments of capitalized costs. Gain or loss on the sale or other disposition of oil and gas properties is not recognized, unless the sale would significantly alter the relationship between capitalized costs and proved reserves of oil and natural gas.

It should not be assumed that the present value of future net cash flows is the current market value of our estimated proved reserves. In accordance with SEC requirements, the cost ceiling represents the present value (discounted at 10%) of net cash flows from sales of future production using the average price over the prior 12-month period.

In accordance with SEC requirements, the cost ceiling represents the present value (discounted at 10%) of net cash flows from sales of future production using the average price over the prior 12-month period. The estimates of proved reserves materially impact DD&A expense.

Oil and natural gas sales. Revenue from oil and natural gas sales was $6,462,647 for the year ended March 31, 2024, a 31% decrease from $9,380,623 for the year ended March 31, 2023. This resulted from a decrease in oil and natural gas prices and production volumes.

Oil and natural gas sales. Revenue from oil and natural gas sales was $7,116,485 for the year ended March 31, 2025, a 10% increase from $6,462,647 for the year ended March 31, 2024. This resulted from an increase in oil and natural gas production volumes partially offset by a decrease in oil and natural gas prices.

The Company expended approximately $427,000 for the completion costs of eight horizontal wells in the Wolfcamp Sand formation of the Delaware Basin in Lea County, New Mexico that the Company participated in drilling during fiscal 2023. Mexco’s working interest in these wells is .52%.

Mexco’s working interest in this well is .165%. The Company expended approximately $207,000 for the completion costs of four horizontial wells in the Bone Spring Sand formation of the Delaware Basin in Lea County, New Mexico that the Company participated in drilling during fiscal 2024. Mexco’s working interest in these wells is .45%.

Subsequently, in April 2024, two of these wells were completed with initial average production rates of 1,065 barrels of oil, 2,107 barrels of water and 706,500 cubic feet of gas per day, or 1,183 BOE per day.

In October 2024, these wells were completed with initial average production rates of 893 barrels of oil, 2,990 barrels of water and 1,161,000 cubic feet of gas per day, or 1,087 BOE per day. Acquisitions.

These wells began producing in October 2023 with initial average production rates of 825 barrels of oil, 3,540 barrels of water and 2,150,000 cubic feet of gas per day, or, 1,183 BOE per day.

In March 2025, these wells were completed with initial average production rates of 1,734 barrels of oil, 3,171 barrels of water and 3,229,000 cubic feet of gas per day, or 2,272 BOE per day.

These wells began producing in November 2023 with initial average production rates of 837 barrels of oil, 1,794 barrels of water and 659,000 cubic feet of gas per day, or 947 BOE per day.

In November 2024, these wells were completed with initial average production rates of 1,089 barrels of oil, 4,716 barrels of water and 3,601,000 cubic feet of gas per day, or 1,689 BOE per day.

Cash Flows Changes in the net funds provided by or (used in) each of our operating, investing and financing activities are set forth in the table below: For the Years Ended March 31, 2024 2023 Change Net cash provided by operating activities $ 4,433,935 $ 6,515,895 $ (2,081,960 ) Net cash used in investing activities $ (3,416,499 ) $ (5,441,075 ) $ (2,024,576 ) Net cash used in financing activities $ (779,723 ) $ (209,815 ) $ 569,908 Cash Flow Provided by Operating Activities.

Cash Flows Changes in the net funds provided by or (used in) each of our operating, investing and financing activities are set forth in the table below: For the Years Ended March 31, 2025 2024 Change Net cash provided by operating activities $ 4,269,621 $ 4,433,935 $ (164,314 ) Net cash used in investing activities $ (4,154,575 ) $ (3,416,499 ) $ 738,076 Net cash used in financing activities $ (834,575 ) $ (779,723 ) $ 54,852 Cash Flow Provided by Operating Activities.

The following table sets forth our oil and natural gas revenues, production quantities and average prices received during the fiscal years ended March 31: 2024 2023 % Difference Oil: Revenue $ 5,348,257 $ 6,522,163 (18.0 )% Volume (bbls) 69,999 73,968 (5.4 )% Average Price (per bbl) $ 76.40 $ 88.18 (13.4 )% Gas: Revenue $ 1,114,390 $ 2,858,460 (61.0 )% Volume (mcf) 502,879 534,363 (5.9 )% Average Price (per mcf) $ 2.22 $ 5.35 (58.5 )% 26 Production and exploration.

The following table sets forth our oil and natural gas revenues, production quantities and average prices received during the fiscal years ended March 31: 2025 2024 % Difference Oil: Revenue $ 6,145,674 $ 5,348,257 14.9 % Volume (bbls) 83,564 69,999 19.4 % Average Price (per bbl) $ 73.54 $ 76.40 (3.7 )% Gas: Revenue $ 970,811 $ 1,114,390 (12.9 )% Volume (mcf) 570,012 502,879 13.3 % Average Price (per mcf) $ 1.70 $ 2.22 (23.3 )% Other operating revenues.

The collectibility of receivables is assessed and an allowance is made for any credit losses.

Credit is extended based on an evaluation of a customer’s financial condition and, generally, is uncollateralized. The collectibility of receivables is assessed and an allowance is made for any credit losses.

Rent expense for lease payments is recognized on a straight-line basis over the lease term. Recent Accounting Pronouncements. In December 2023, the FASB issued Accounting Standards Update (“ASU”) No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which requires disaggregated information about the Company’s effective tax rate reconciliation and income taxes paid.

Rent expense for lease payments is recognized on a straight-line basis over the lease term. Recently Adopted Accounting Pronouncements. In December 2023, the FASB issued ASU 2023-09, Topic 740 Income Taxes: Improvements to Income Tax Disclosures, which is intended to enhance the transparency and decision usefulness of income tax disclosures.

The increase in the effective federal tax rate is the result of the Company now being in a net deferred tax liability position and the reconciliation to the federal tax return. Contractual Obligations We have no off-balance sheet debt or unrecorded obligations and have not guaranteed the debt of any other party.

The decrease in the effective tax rate is primarily the result of state income taxes, primarily in New Mexico, the impact of permanent differences between book and taxable income, and the reconciliation to the federal tax return. Contractual Obligations We have no off-balance sheet debt or unrecorded obligations and have not guaranteed the debt of any other party.

Results of Operations Fiscal 2024 Compared to Fiscal 2023 We had net income of $1,344,952 for the year ended March 31, 2024 compared to $4,662,702 for the year ended March 31, 2023, a 71% decrease as a result of a decrease in operating revenues due to a decrease in oil and natural gas prices and production that is further explained below.

Results of Operations Fiscal 2025 Compared to Fiscal 2024 We had net income of $1,712,368 for the year ended March 31, 2025 compared to $1,344,952 for the year ended March 31, 2024, a 27% increase primarily as a result of an increase in operating revenues partially offset by an increase in operating expenses that is further explained below.

Forty-eight of these horizontal wells are in the Delaware Basin located in the western portion of the Permian Basin in Lea and Eddy Counties, New Mexico. The remaining three horizontal wells are in the Bakken formation in McKenzie County, North Dakota and the vertical well is in Irion County, Texas.

Twenty-nine of these wells are in the Delaware Basin located in the western portion of the Permian Basin in Lea and Eddy Counties, New Mexico; three wells are in the Midland Basin located in the eastern portion of the Permian Basin in Reagan County, Texas; and, the remaining three horizontal wells are in Grady County, Oklahoma.

We use the Binomial option pricing model to estimate the fair value of stock-based compensation expenses at grant date. This expense is recognized as compensation expense in our financial statements over the vesting period. We recognize the fair value of stock-based compensation awards as wages in the Consolidated Statements of Operations based on a graded-vesting schedule over the vesting period.

This expense is recognized as compensation expense in our financial statements over the vesting period. We recognize the fair value of stock-based compensation awards as wages in the Consolidated Statements of Operations based on a graded-vesting schedule over the vesting period. Accounts Receivable. Our accounts receivable includes trade receivables from joint interest owners and oil and gas purchasers.

In October 2022, the Company made an approximately 2% equity investment commitment in a limited liability company amounting to $2,000,000 of which $800,000 has been funded as of March 31, 2024. The limited liability company is capitalized at approximately $100 million to purchase mineral interests in the Utica and Marcellus areas in the state of Ohio.

This well was determined to be noncommercial and was plugged and abandoned. In October 2022, the Company made an approximately 2% equity investment commitment in a limited liability company amounting to $2,000,000 of which $1,800,000 has been funded as of March 31, 2025.

This decrease of $2,081,960 in our cash flow operating activities consisted of increase in our non-cash expenses of $505,448; a decrease in our accounts receivable of $426,598; an increase of $49,673 of our accounts payable and accrued expenses; and, a decrease in our net income for the current year of $3,317,518.

This decrease of $164,314 in our cash flow operating activities consisted of increase in our non-cash expenses of $156,176; an increase in our accounts receivable of $533,564; an increase of $52,861 of our accounts payable and accrued expenses; and, an increase in our net income for the current year of $367,416.

Mexco’s working interest in these wells is .52%. Two of these wells began producing in November 2023 and the other two in March 2024 with initial average production rates of 822 barrels of oil, 4,159 barrels of water and 2,574,000 cubic feet of gas per day, or 1,251 barrels of oil equivalent (“BOE”) per day.

Mexco’s working interest in these wells is .53%. In July 2024, these wells were completed with initial average production rates of 1,402 barrels of oil, 2,009 barrels of water and 2,168,000 cubic feet of gas per day, or 1,763 BOE per day.

Accordingly, net cash increased $237,713, leaving cash and cash equivalents on hand of $2,473,484 as of March 31, 2024. 23 We had working capital of $3,259,200 as of March 31, 2024 compared to working capital of $3,475,776 as of March 31, 2023, a decrease of $216,576 for the reasons set forth below. Oil and Natural Gas Property Development.

We had working capital of $2,469,664 as of March 31, 2025 compared to working capital of $3,259,200 as of March 31, 2024, a decrease of $789,536 for the reasons set forth below. Oil and Natural Gas Property Development. New Participations in Fiscal 2025.

In February 2024, Mexco expended approximately $170,000 to participate in the drilling of four horizontal wells in the Bone Spring Sand formation of the Delaware Basin in Lea County, New Mexico.

The Company expended approximately $300,000 for the completion of 19 horizontal wells in which the Company participated during fiscal 2024. The Company expended approximately $107,000 for the completion costs of two horizontal wells in the Bone Spring Sand formation of the Delaware Basin in Lea County, New Mexico that the Company participated in drilling during fiscal 2024.

State income tax was $119,629 in fiscal 2024, a 27% decrease from $164,510 for fiscal 2023 due to the decrease in oil and natural gas sales in the State of New Mexico. The effective tax rate for state and federal taxes combined for fiscal 2024 and fiscal 2023 was 32% and 3%, respectively.

This was primarily due to a decrease in state income taxes and the reconciliation to the federal tax return. The effective tax rate for state and federal taxes combined for fiscal 2025 and fiscal 2024 was 15% and 32%, respectively.

For all periods presented, we have included estimated future costs of abandonment and dismantlement in the full cost amortization base and amortize these costs as a component of our depletion expense. Gas Balancing . Gas imbalances are accounted for under the sales method whereby revenues are recognized based on production sold.

For all periods presented, we have included estimated future costs of abandonment and dismantlement in the full cost amortization base and amortize these costs as a component of our depletion expense. Stock-based Compensation . We use the Binomial option pricing model to estimate the fair value of stock-based compensation expenses at grant date.

New Participations in Fiscal 2024. The Company participated in the drilling and completion of 51 horizontal wells and 1 vertical well at a cost of approximately $2,300,000, of which $2,000,000 was expended during the fiscal year ending March 31, 2024. Nineteen of these wells have not been completed.

The Company participated in the development of 35 horizontal wells at a cost of approximately $1,100,000 for the year ending March 31, 2025. Seventeen of these wells have not been completed.

General and administrative expenses were $1,243,548 for the year ended March 31, 2024, an 11% increase from $1,120,691 for the year ended March 31, 2023. This was primarily due to an increase in employee stock option compensation, salaries and contract services, and accounting fees. Interest expense.

This was primarily due to an increase in oil and natural gas production and a decrease in oil and natural gas reserves. General and administrative expenses. General and administrative expenses were $1,320,074 for the year ended March 31, 2025, a 6% increase from $1,243,548 for the year ended March 31, 2024.

Production costs were $1,526,472 in fiscal 2024, an 11% decrease from $1,719,719 in fiscal 2023. This was primarily the result of a decrease in production taxes as a result of the decrease in oil and gas revenues. Depreciation, depletion and amortization. Depreciation, depletion and amortization (“DD&A”) expense was $1,969,742 in fiscal 2024, a 6% increase from $1,854,047 in fiscal 2023.

This is the result of an increase in production taxes due to an increase in oil and gas revenues and an increase in lease operating expenses on new wells in which we own an interest. Depreciation, depletion and amortization. Depreciation, depletion and amortization (“DD&A”) expense was $2,452,694 in fiscal 2025, a 25% increase from $1,969,742 in fiscal 2024.

Impairments transferred to the DD&A pool increase the DD&A rate. Revenue Recognition - Revenue from Contracts with Customers. Revenues from our royalty and non-operated working interest properties are recorded under the cash receipts approach as directly received from the remitters’ statement accompanying the revenue check.

Impairments transferred to the DD&A pool increase the DD&A rate. Revenue Recognition. Revenues from our royalty and non-operated working interest properties are recorded in accordance with ASC 606, Revenue from Contracts with Customers. Revenue is reported net of post-production costs when such costs are contractually deducted by the operator prior to distribution.

These reclassifications had no effect on previously reported results of operations, retained earnings or net cash flows. Leases. The Company determines an arrangement is a lease at inception. Operating leases are recorded in operating lease right-of-use asset, operating lease liability, current, and operating lease liability, long-term on the consolidated balance sheets.

In addition, the Company has a single, company-wide management team that allocates capital resources to maximize profitability and measures financial performance as a single enterprise. Leases. The Company determines an arrangement is a lease at inception. Operating leases are recorded in operating lease right-of-use asset, operating lease liability, current, and operating lease liability, long-term on the consolidated balance sheets.

The Company retained an overriding royalty interest equal to the positive difference between 25% and any existing burdens of record as of the effective date. Subsequent Participations.

Sale of Properties. In November 2024, the Company conveyed its working and royalty interests in 13.5 net acres in Ward County, Texas. The Company received $15,000 per acre in the total amount of $202,500. The Company retained an overriding royalty interest equal to the positive difference between 25% and any existing burdens of record as of the effective date.

Mexco expended approximately $152,000 to participate in the drilling of two horizontal wells in the Penn Shale formation of the Delaware Basin in Lea County, New Mexico. Mexco’s working interest in these wells is .4%.

Mexco expended approximately $70,000 to participate in the development of three horizontal wells in the Spraberry trend of the Midland Basin in Reagan County, Texas. Mexco’s working interest in these wells is approximately .26%. Mexco expended approximately $32,000 to participate in an exploratory well in the Fusselman Formation of Irion County, Texas.

In December 2023, the Company acquired royalty (mineral) interests in 7 wells operated by Occidental Petroleum Corporation and located in Reeves County, Texas for a purchase price of $364,000 which is effective November 1, 2023. In January 2024, the Company acquired an additional interest in these same wells for a purchase price of $91,000, effective December 1, 2023.

In August 2024, the Company acquired royalty interests in 6 producing wells operated by Marathon Oil and located in Karnes County, Texas, for a purchase price of $50,000. This acquisition was effective August 1, 2024.

The cost of the investment is recorded as an asset on the consolidated balance sheets and when income from the investment is received, it is immediately recognized on the consolidated statements of operations. Reclassifications. Certain amounts in prior periods’ consolidated financial statements have been reclassified to conform with the current period’s presentation.

The cost of the investment is recorded as an asset on the consolidated balance sheets and when income from the investment is received, it is immediately recognized on the consolidated statements of operations. The Company evaluates investments for an impairment whenever events or changes in circumstances indicate that the carrying amount of an investment may not be recoverable.

In April 2024, Mexco expended approximately $80,000 to participate in the drilling of five horizontal wells in the Bone Spring formation of the Delaware Basin in Lea County, New Mexico and $127,800 to drill four horizontal wells in the Wolfcamp Sand formation of the Delaware Basin in Lea County, New Mexico.

In November 2024, these wells were completed with initial average production rates of 1,106 barrels of oil, 2,583 barrels of water and 1,165,000 cubic feet of gas per day, or 1,300 BOE per day. Mexco expended approximately $293,000 to drill and complete four horizontal wells in the Wolfcamp Sand formation of the Delaware Basin in Lea County, New Mexico.

In February 2024, the Company acquired royalty interests in 8 producing wells with additional potential locations for development operated by PDC Energy, Inc. and 4 producing wellbores operated by Chevron Corporation for an aggregate purchase price of $575,600. These wells are located in Weld County, Colorado.

In August 2024, the Company acquired royalty interests in 10 producing wells operated by Anadarko Petroleum Corporation and located in Weld County, Colorado, for a purchase price of $118,000 and royalty interests in approximately 250 producing wells operated by Samson Exploration, EOG Resources, and others in Laramie County, Wyoming and Adams and Weld Counties, Colorado, for a purchase price of $483,000.

Removed

During the year ended March 31, 2023, we received proceeds of $16,700 from the exercise of director stock options, received payment of $30,179 from a director for profits on purchase of stock within the six-month window of a previous stock sale, expended $244,494 for the purchase of 18,416 shares of our stock for the treasury and, expended $12,200 for the renewal of our credit facility.

Added

During the year ended March 31, 2025, we expended $209,000 to pay the annual dividend, expended $703,216 to purchase 57,766 shares of our stock for the treasury account, and received proceeds of $77,641 for the exercise of employee stock options.

Removed

These wells began producing in September 2023 with initial average production rates of 582 barrels of oil, 1,488 barrels of water and 791,000 cubic feet of gas per day, or 714 BOE per day.

Added

The limited liability company is capitalized at approximately $100 million to purchase mineral interests in the Utica and Marcellus areas in the state of Ohio. This LLC has returned $252,394 or 14% of the total investment. 24 Completion of Wells Drilled in Fiscal 2024.

Removed

These wells began producing in September 2023 with initial average production rates of 898 barrels of oil, 1,969 barrels of water and 503,000 cubic feet of gas per day, or 982 BOE per day.

Added

Mexco’s working interest in these wells is approximately 1.16%. A horizontal well in the Penn Shale formation of the Delaware Basin in Lea County, New Mexico was completed in May 2024 with the initial production rate of 964 barrels of oil, 2,441 barrels of water and 626,000 cubic feet of gas per day, or 1,068 of oil equivalent per day.

Removed

In November 2023, Mexco expended approximately $32,000 to participate in the drilling and completion of one horizontal well in the Penn Shale formation of the Delaware Basin in Lea County, New Mexico. Mexco’s working interest in this well is .165%.

Added

All of these acquisitions were effective September 1, 2024. In September 2024, the Company acquired royalty interests in 21 producing wells operated by Marathon Oil and Murphy Exploration and located in Karnes County, Texas, for a purchase price of $90,000, effective August 1, 2024.

Removed

In February 2024, Mexco expended approximately $74,000 to participate in the drilling of two horizontal wells in the Bone Spring Sand formation of the Delaware Basin in Lea County, New Mexico. Mexco’s working interest in these wells is .53%. Subsequently, in May 2024, Mexco expended approximately $90,000 to complete these wells.

Added

In October 2024, the Company acquired a .3% royalty interest in 15 producing wells operated by Civitas Resources, Inc. and located in Broomfield and Adams Counties, Colorado, for a purchase price of $450,000. This acquisition was effective November 1, 2024.

Removed

Mexco’s working interest in these wells is .45%. 24 In February 2024, Mexco expended approximately $153,000 to participate in an exploratory well in the Fusselman Formation of Irion County, Texas. Subsequently, in May 2024, the Company expended $27,000 for additional drilling costs. This well was later determined to be noncommercial and will be plugged and abandoned in fiscal 2025.

Added

In October 2024, the Company acquired a .5% royalty interest in 3 producing wells operated by Mewbourne Oil Company and located in Eddy County, New Mexico, for a purchase price of $260,000. This acquisition was effective November 1, 2024 and includes acreage for further development.

Removed

Subsequently, in May 2024, the Company funded another $200,000 toward this investment. This LLC has returned $81,231 or 8% of the total investment. Completion of Wells Drilled in Fiscal 2023. The Company expended approximately $450,000 in the completion of 21 horizontal wells in which the Company participated in fiscal 2023.

Added

In October 2024, the Company acquired royalty interests in 8 producing wells operated by Marathon Oil and located in Live Oak County, Texas, for a purchase price of $20,000; royalty interests in 6 producing wells operated by SWN Production Company, LLC and located in DeSoto Parish, Louisiana, for a purchase price of $25,000; royalty interests in 10 producing wells operated by Ovintiv, Inc. and located in Upton County, Texas, for a purchase price of $65,000; and, royalty interests in 12 producing wells operated by Pioneer Natural Resources and located in Reagan and Upton Counties, Texas, for a purchase price of $65,000.

Removed

Mexco’s working interest in these wells is .05%.

Added

All of these acquisitions were effective November 1, 2024. 25 Also, in October 2024 and effective November 1, 2024, the Company acquired various small royalty interests in over 400 producing wells operated by Petro-Hunt Corporation, Hess Bakken Investments II, LLC, Marathon Oil, WPX Energy, and others in multiple counties throughout the states of Nebraska, North Dakota, South Dakota, and Montana for a purchase price of $188,000.

Removed

Mexco’s working interest in these wells is .033%. Acquisitions. During the year, the Company acquired royalty interests in 39 producing wells with additional potential locations for development in Howard and Lee Counties, Texas for an aggregate purchase price of $261,700.

Added

The divestiture of this non-core oil and gas asset did not result in a significant alteration of the relationship between the Company’s capitalized costs and proved reserves and, accordingly, the Company recorded the proceeds as sales proceeds, a reduction of its full cost pool, with no gain or loss recognized on the sale. Other Projects.

Removed

In February 2024, the Company acquired royalty interests in 255 producing wells in the Haynesville trend area of Caddo Parish, Louisiana for a purchase price of $390,300.

Added

Pipeline capacity constraints and maintenance in the Permian Basin area has contributed to a wider difference between the WaHa Hub and the Henry Hub and at times realized prices were negative.

Removed

In November 2023, the Company acquired small royalty interests in 27 producing wells as well as non-producing mineral interests in 1,280 gross acres located in Crane, Ector, Midland and Upton Counties, Texas for an aggregate purchase price of $105,800.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

6 edited+1 added−2 removed7 unchanged

2024 filing

2025 filing

Biggest changeFactors that can cause price fluctuations include the level of global demand for petroleum products, foreign and domestic supply of oil and gas, the establishment of and compliance with production quotas by oil-exporting countries, weather conditions, the price and availability of alternative fuels and overall political and economic conditions in oil producing and consuming countries. 30 For example, in the last twelve months, the NYMEX West Texas Intermediate (“WTI”) posted price for crude oil has ranged from a low of $61.73 per bbl in September 2024 to a high of $82.89 per bbl in April 2024.

Our primary credit risk is related to oil and gas production sold to various purchasers and the receivables are generally not collateralized. At March 31, 2024, our largest credit risk associated with any single purchaser was $480,836 or 48% of our total oil and gas receivables. We have not experienced any significant credit losses. Energy Price Risk .

Our primary credit risk is related to oil and gas production sold to various purchasers and the receivables are generally not collateralized. At March 31, 2025, our largest credit risk associated with any single purchaser was $478,863 or 43% of our total oil and gas receivables. We have not experienced any significant credit losses. Energy Price Risk .

If the average oil price had increased or decreased by ten dollars per barrel for fiscal 2024, our pretax income would have changed by $699,990. If the average gas price had increased or decreased by one dollar per mcf for fiscal 2024, pretax income would have changed by $502,879.

If the average oil price had increased or decreased by ten dollars per barrel for fiscal 2025, our pretax income would have changed by $835,640. If the average gas price had increased or decreased by one dollar per mcf for fiscal 2025, pretax income would have changed by $570,012.

The Henry Hub Spot Market Price (“Henry Hub”) for natural gas has ranged from a low of $1.25 per MMBtu in March 2024 to a high of $3.34 per MMBtu in October 2023.

The Henry Hub Spot Market Price (“Henry Hub”) for natural gas has ranged from a low of $1.21 per MMBtu in November 2024 to a high of $9.86 per MMBtu in January 2025.

On March 31, 2024 the WTI posted price for crude oil was $79.15 per bbl and the Henry Hub spot price for natural gas was $1.54 per MMBtu. See Results of Operations above for the Company’s realized prices during the fiscal year.

On March 31, 2025 the WTI posted price for crude oil was $67.46 per bbl and the Henry Hub spot price for natural gas was $4.11 per MMBtu. See Results of Operations above for realized prices.

Changes in oil and gas prices impact both estimated future net revenue and the estimated quantity of proved reserves.

Declines in oil and natural gas prices will materially adversely affect our financial condition, liquidity, ability to obtain financing and operating results. Changes in oil and gas prices impact both estimated future net revenue and the estimated quantity of proved reserves.

Removed

Added

Pipeline capacity constraints and maintenance in the Permian Basin area has contributed to a wider difference between the WaHa Hub and the Henry Hub and at times realized prices were negative. Subsequently, on June 16, 2025, the WTI posted price for crude oil was $67.75 and the Henry Hub posted price for natural gas was $2.90.

Removed

Subsequently, on June 18, 2024, the WTI posted price for crude oil was $77.55 and the Henry Hub posted price for natural gas was $2.43. 30 Declines in oil and natural gas prices will materially adversely affect our financial condition, liquidity, ability to obtain financing and operating results.

Top changes in MEXCO ENERGY CORP's 2025 10-K

Item 1. Business

Item 1A. Risk Factors

Item 1C. Cybersecurity

Item 2. Properties

Item 5. Market for Registrant's Common Equity

Item 7. Management's Discussion & Analysis

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Other MXC 10-K year-over-year comparisons