MXC — what changed in the latest 10-K

Text added vs the prior filing · source: 10-K · 2026-06-29

• 2007-2008Non-operated working interests, purchase price of $425,000, covering 2 properties in Lea County, New Mexico.

• Royalty (mineral) acreage, purchase price of $2,279,000, consisting of 122 mineral acres in the Newark East Field (Barnett Shale) of Tarrant County, Texas representing an approximate 21.45% royalty interest, and 522 additional mineral acres in the same field containing 6 producing natural gas wells …

• 2010-2012Southwest Texas Disposal Corporation, purchase price of $478,000, consisting of royalty interests in over 300 wells located in 60 counties and parishes of 6 states.

• Overriding royalty interests, purchase price of $1,650,000, covering 5,120 gross acres over 8 sections in the Haynesville trend area of DeSoto Parish, Louisiana, containing 6 horizontal producing wells and additional potential undeveloped drill sites. The Company paid $1.46 million in cash and the r…

• Non-operating working interests, purchase price of $670,000, covering 160 gross acres in the Fuhrman-Mascho Field of Andrews County, Texas containing 5 producing wells in the Grayburg and San Andres formations and additional potential drill sites. Purchased additional working interests in March 2012…

Text removed vs the prior filing · source: 10-K · 2025-06-27

• Royalty interests, purchase price $500,000 covering 4 producing gas units in Freestone County, Texas containing 33 producing wells and additional potential undeveloped locations in the Cotton Valley formation.

• 2005 Royalty interests, purchase price $550,000 covering 75 producing wells and additional potential undeveloped locations in the Cotton Valley formation of Freestone and Limestone Counties, Texas.

• 2007 Non-operated working interests, purchase price $425,000 covering 2 properties in Lea County, New Mexico.

• Royalty (mineral) acreage, purchase price $1,850,000 covering 122 mineral acres in the Newark East (Barnett Shale) Field of Tarrant County, Texas amounting to approximately 21.45% royalty interest.

• 2008 Royalty (mineral) acreage, purchase price $429,000 covering 522 mineral acres in the Newark East (Barnett Shale) Field of Tarrant County, Texas containing 6 producing natural gas wells and additional potential undeveloped well locations. In March 2009, purchased additional interests, $49,000.

Text added vs the prior filing · source: 10-K · 2026-06-29

• Prices for oil and natural gas fluctuate widely and are influenced by numerous factors beyond our control, including global supply and demand, actions of OPEC and other producing nations, government regulation and taxation (including environmental regulation), levels of exploration and production ac…

• These price fluctuations impact our cash flows, capital expenditure flexibility, and access to capital. Reductions in prices may decrease the borrowing base under our credit facility, trigger ceiling test write-downs, and reduce the amount of oil and natural gas that can be produced economically. As…

• Changes in commodity prices also affect estimated future net revenues and proved reserve quantities, which in turn can reduce our borrowing capacity and limit access to additional capital for exploration and development activities.

• Oil and natural gas prices do not necessarily move in tandem, and periods of low prices or limited storage or transportation capacity may adversely affect our financial condition by reducing revenues, operating income, and cash flows, causing production curtailments or shut-ins, rendering certain pr…

• Our results of operations may be negatively impacted by current global political and economic events, including evolving trade policies, tariffs, and broader geopolitical instability.

Text removed vs the prior filing · source: 10-K · 2025-06-27

• Prices for oil and natural gas fluctuate widely. We cannot predict future oil and natural gas prices with any certainty. Historically, the markets for oil and gas have been volatile, and they are likely to continue to be volatile. Factors that can cause price fluctuations include the level of global…

• Increases 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 tes…

• Changes in oil and gas prices impact both estimated future net revenue and the estimated quantity of proved reserves. Any reduction in reserves, including reductions due to price fluctuations, can reduce the borrowing base under our credit facility and adversely affect the amount of cash flow availa…

• Oil and natural gas prices do not necessarily fluctuate in direct relationship to each other. 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 …

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

Text added vs the prior filing · source: 10-K · 2026-06-29

• Cash Flow Used in Financing Activities. Cash flow from financing activities is derived from changes in long-term debt and in equity account balances. Net cash flow used in our financing activities was $216,970 for the year ended March 31, 2026, compared to $834,575 for the year ended March 31, 2025.…

• Mexco expended approximately $230,000 to participate in the drilling and completion of five horizontal wells in the Bone Spring formation of the Delaware Basin in Eddy County, New Mexico. In November 2025, two of these wells were completed with initial average production rates of 1,194 barrels of oi…

• Mexco expended approximately $65,000 to participate in an exploratory vertical well in the Ellenburger formation of Ward County, Texas. In November 2025, this well was determined to be noncommercial.

• In March 2026, Mexco expended approximately $200,000 to participate in the drilling and completion of five horizontal wells in the Wolfcamp B formation in the Spraberry trend area of the Midland Basin in Midland and Glasscock Counties, Texas. Mexco’s working interest in these wells is 1.9%. Subseque…

• Subsequently, in May 2026, Mexco expended approximately $460,000 to participate in the drilling and completion of six horizontal wells in the Wolfcamp A formation of the Delaware Basin in Reeves County, Texas. Mexco’s working interest in these wells is .8%.

Text removed vs the prior filing · source: 10-K · 2025-06-27

• 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 acti…

• 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. In November 2024, these wells were completed with initial average production rates of 1,106 barrels of oil, 2,583 barrels of wat…

• 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%. Subsequently, in June 2025, one of these wells were completed with initia…

• 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. This well was determined to be noncommercial and was plugged and abandoned.