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• Crude Oil and Natural Gas Exploration: Identifying and evaluating potential underground reservoirs of crude oil and natural gas.
• Crude Oil and Natural Gas Development: Drilling and completing wells, and constructing infrastructure to extract discovered crude oil and natural gas reserves.
• Crude Oil and Natural Gas Production: Operating wells and related facilities to extract and sell crude oil and natural gas.
• Acquisition of Oil and Gas Properties: Purchasing existing crude oil and natural gas reserves or leases from other entities.

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Mexco Energy (symbol: MXC) primarily sells its crude oil and natural gas production to other companies, operating on a Business-to-Business (B2B) model.

Based on the company's public filings, such as its latest Form 10-K for the fiscal year ended June 30, 2023, Mexco Energy experiences significant revenue concentration with a few major purchasers. For instance, for the fiscal year ended June 30, 2023, two purchasers accounted for approximately 86% of the company's total revenues. However, the specific names of these customer companies are not disclosed in their public reports.

Therefore, while Mexco Energy sells primarily to other companies, the identities of its major customer companies are not publicly identifiable through their SEC filings.

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Nicholas C. Taylor - Chairman of the Board & Chief Executive Officer

Nicholas C. Taylor was elected Chairman of the Board and Chief Executive Officer of Mexco Energy Corporation in September 2011. He previously served as Chief Executive Officer, President, Treasurer, and Director of the company starting in April 1983. Since July 1993, Mr. Taylor has been involved in the independent practice of law and other business activities, including independent oil and gas exploration and production. He was a director and shareholder of the law firm Stubbeman, McRae, Sealy, Laughlin & Browder, Inc. Mr. Taylor also held public service roles, having been appointed to the Texas State Securities Board from 1995 to 2004 and the Texas Ethics Commission from 2005 to 2010. He directly owns 46.14% of Mexco Energy's shares.

Tamala L. McComic - President & Chief Financial Officer

Tamala L. McComic became President and Chief Financial Officer of Mexco Energy Corporation in September 2011. She is a Certified Public Accountant and Chartered Global Management Accountant. Ms. McComic joined Mexco Energy in July 2001 as Controller. Her prior roles within the company include Executive Vice President and Chief Financial Officer from 2009 to 2011, Vice President and Chief Financial Officer from 2003 to 2009, and Treasurer and Assistant Secretary. Before joining Mexco Energy, from 1994 to 2001, Ms. McComic served as Regional Controller and Credit Manager for Transit Mix Concrete & Materials Company, a subsidiary of Trinity Industries, Inc.

Donna Gail Yanko - Vice President

Donna Gail Yanko was appointed Vice President of Mexco Energy Corporation in 1990. She served as Corporate Secretary from 1992 to 2021 and as Assistant Secretary from 1986 to 1992. Ms. Yanko also assisted the Chairman of the Board in his personal business activities on a part-time basis from 1986 to 2015 and served as a director of the Company from 1990 to 2008.

Stacy D. Hardin - Secretary, Assistant Treasurer

Stacy D. Hardin serves as the Secretary and Assistant Treasurer of Mexco Energy Corporation.

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The key risks to Mexco Energy's (MXC) business are primarily associated with the inherent nature of the oil and gas industry, particularly:

1. Volatility of Oil and Gas Prices: Mexco Energy's financial performance is highly susceptible to fluctuations in commodity prices. Oil, for instance, contributed 76% of the company's operating revenues for the first six months of fiscal 2026, and a 17% decline in average oil prices significantly impacted overall revenues. Similarly, a 21% decrease in average oil prices in the first quarter of fiscal 2026 led to an earnings decline despite increased production volumes, as oil accounts for a substantial portion of Mexco's gross sales. Natural gas prices have also experienced depression, partly due to pipeline capacity limitations in the Permian Basin.
2. Need to Develop and Replace Reserves and Exploration Risks: As an independent oil and gas company involved in the acquisition, exploration, and development of properties, Mexco Energy faces ongoing challenges in developing and replacing its reserves. The inherent uncertainties and risks associated with exploration activities are a continuous factor. The company reported a 15% decrease in oil reserves and a 4% decrease in natural gas reserves for fiscal 2025, primarily due to lower commodity prices impacting the economic viability of reserves.
3. Government Regulation: The oil and gas industry is subject to extensive governmental regulations. These regulations, which can change frequently, pose a continuous risk to Mexco Energy's operations, potentially impacting production, environmental compliance, and overall business costs.

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The accelerating global energy transition toward decarbonization and renewable energy sources, coupled with increasing investor pressure for ESG (Environmental, Social, and Governance) compliance and stricter financial institution lending policies for fossil fuel projects, represents a clear emerging threat. This trend directly impacts Mexco Energy's access to capital for exploration and development, potentially depresses the long-term demand for its products, and could lead to reduced valuations for its oil and natural gas assets, analogous to how new technologies disrupted established industries in the past.

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Mexco Energy Corporation (MXC) operates primarily in the exploration, development, and production of crude oil, natural gas, condensate, and natural gas liquids. The company also acquires interests in producing oil and gas properties, including non-operated working and royalty interests. Mexco Energy's operations are concentrated within the United States, particularly in the Permian Basin of West Texas, and extends to other states such as New Mexico, Oklahoma, and Louisiana.

The addressable market for Mexco Energy's main products and services can be approximated by the size of the Oil Drilling & Gas Extraction industry in the United States.

The Oil Drilling & Gas Extraction industry in the United States is projected to reach a revenue of approximately $484.6 billion in 2025.

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Mexco Energy (MXC) anticipates several key drivers for its revenue growth over the next two to three years:

1. Increased Oil and Natural Gas Production Volumes: The company consistently plans and executes drilling programs to boost its production. For fiscal year 2025, Mexco Energy expected to participate in drilling 28 wells and completing 19 horizontal wells. Looking ahead to fiscal year 2026, plans include participation in 35 new horizontal wells. This focus on increasing production volumes has already shown results, with oil production rising 16% and natural gas production increasing 25% in the first quarter of fiscal 2026.
2. Acquisition of Royalty and Mineral Interests: Mexco Energy actively seeks to acquire additional royalty and mineral interests. This strategy contributes to revenue streams that are free of operational costs. Approximately 31% of the operating revenues for fiscal year 2025 were generated from royalties. In fiscal year 2024, the company acquired royalty and mineral interests in 348 gross wells, demonstrating an ongoing commitment to this revenue diversification.
3. Favorable Commodity Prices for Oil and Natural Gas: Fluctuations in the realized prices of oil and natural gas significantly impact Mexco Energy's revenue. While natural gas prices have shown volatility, a surge of 62% in natural gas prices in the first quarter of fiscal 2026 positively impacted revenues, even as oil prices saw a decline. Historically, increases in the average sales price of oil have partially offset decreases in natural gas prices, and sustained or improved commodity prices remain a crucial revenue driver.
4. Strategic Development in High-Yield Basins: Mexco Energy focuses its exploration and development activities primarily in prolific regions such as the Permian Basin, including the Delaware Basin. The Delaware Basin is particularly noted for its high yield and substantial reserves, making continued horizontal drilling in this area a strategic move to tap into significant oil and gas resources and drive future revenue growth. In fiscal year 2025, 29 of the 35 horizontal wells drilled were located in the Delaware Basin.

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Share Repurchases

• During the fiscal year ending March 31, 2024, Mexco Energy repurchased 50,101 shares at an average price of $11.68 per share.
• A new stock repurchase program of up to $1 million was authorized on April 30, 2024, replacing a previous plan with a remaining balance of $414,964.
• As of June 30, 2025, the company had repurchased 57,766 shares for $0.7 million under the buyback program announced on April 30, 2024.

Share Issuance

• Mexco Energy's shares outstanding have remained consistently around 2 million from 2020 to June 2025, indicating no significant share issuances during this period.

Capital Expenditures

• Mexco Energy reported quarterly capital expenditures of $372,300 for June 2025.
• The primary focus of capital expenditures is on the acquisition, exploration, and development of properties.
• The company's operations are concentrated in the Permian Basin, specifically the Delaware Basin and the Midland Basin.