Mexco Energy Corp (MXC)
AMEXEnergyOil & Gas Exploration & ProductionSnapshot 2026-09-04
$11.02+3.77%
Close 2026-09-04 · 1-day change
AMEXEnergyOil & Gas Exploration & ProductionSnapshot 2026-09-04
Broken: Primary pillar broken — Sustain positive operating income and net income: metric not reported.
Mexco Energy is drilling 33 horizontal wells in fiscal 2027 as planned. It maintains a stable $0.10 per share annual dividend. The company controls drilling costs near $1.8 million for 2027. These show management is executing on key priorities despite challenges.
Revenue fell 8% in fiscal 2026 and profitability is declining sharply. Operating income dropped from $763K to $91K recently. Net income fell from $684K to $50K. These trends risk breaking the turnaround story.
The price is about 18% below our fair value near $9.7. Analysts expect nearly 20% revenue decline next year. The market prices in continued weakness, which aligns with our cautious view.
Breaks if: dividend falls below $0.10 per share
Continue paying a regular annual cash dividend of $0.10 per share as declared by the Board of Directors.
Stated as a priority in 2 of last 3 quarters. The Board declared and paid a regular annual cash dividend of $0.10 per share in 2026-Q1 and reaffirmed this dividend in June 2026. Dividend payments are consistent with management's stated capital allocation policy.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a stable company in the energy sector with a focus on drilling and completion of horizontal wells. The current thesis state is intact, supported by strong recent financial results and a commitment to dividends.
The market appears to price MXC as relatively cheap compared to its peers, with an expectations gap indicating that some positive developments may not be fully reflected in the stock. However, the valuation is fragile due to the current sector environment.
Fundamentals are likely to improve, given the robust earnings quality and stable management. Recent financial performance has been strong, with increasing net and operating income, but there are risks related to potential guidance cuts.
The future performance of MXC hinges on inflation trends and the performance of sector bellwethers like COP, EOG, and OXY. A cut in guidance could negatively impact sentiment and estimates.
The most important moves since the prior daily snapshot.
Valuation fell by 16.3 points (from 50.9 to 34.6).
Our read on the company is unchanged since the prior snapshot.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
“Dividend per share was $0.10 in 2026-Q1.”
Breaks if: costs exceed $1.8 million in fiscal 2027
Continue participation in drilling and completing horizontal wells with targeted well counts and associated capital expenditure.
Stated as a priority in 3 of last 3 quarters. The Company participated in 57 horizontal wells in fiscal 2026 at a cost of approximately $1.25 million and currently expects to participate in drilling 53 horizontal wells and completing 20 horizontal wells at an estimated cost of $1.8 million for fiscal 2027. The trajectory shows continued active participation and increased capital deployment consistent with management's stated drilling plans.
“The Company currently expects to participate in the drilling of 53 horizontal wells and the completion of 20 horizontal wells at an estimated aggregate cost of approximately $1.8 million during the f…”
“For the fiscal year ending March 31, 2027, the Company currently expects to participate in the drilling and completion of 33 horizontal wells, as well as the completion of 20 horizontal wells that we…”
“During fiscal 2026, the Company participated in the development of 57 horizontal wells and one vertical well at a cost of approximately $1.25 million.”
Breaks if: participation falls below 33 wells in fiscal 2027
Continue participation in drilling and completing horizontal wells with targeted well counts and associated capital expenditure.
Stated as a priority in 3 of last 3 quarters. The Company participated in 57 horizontal wells in fiscal 2026 at a cost of approximately $1.25 million and currently expects to participate in drilling 53 horizontal wells and completing 20 horizontal wells at an estimated cost of $1.8 million for fiscal 2027. The trajectory shows continued active participation and increased capital deployment consistent with management's stated drilling plans.
“The Company currently expects to participate in the drilling of 53 horizontal wells and the completion of 20 horizontal wells at an estimated aggregate cost of approximately $1.8 million during the f…”
“For the fiscal year ending March 31, 2027, the Company currently expects to participate in the drilling and completion of 33 horizontal wells, as well as the completion of 20 horizontal wells that we…”
“During fiscal 2026, the Company participated in the development of 57 horizontal wells and one vertical well at a cost of approximately $1.25 million.”
Breaks if: operating income or net income falls below recent levels ($90K and $50K respectively)
Focus on improving operating income and net income through operational and market factors.
Stated as a priority in 3 of last 3 quarters. Net income rose from $241,951 in 2026-Q1 to $501,065 in 2026-Q2, and operating income increased from $331,726 to $484,806 over the same period. The trajectory shows improving financial performance consistent with management's focus on income management.
“Net income of $501,065 and operating income of $484,806 for quarter ended June 30, 2026.”
“Net income of $241,951 and operating income of $331,726 for quarter ended June 30, 2025.”
“Net income of $634,998 and operating income of $501,053 for fiscal year ended March 31, 2026.”
Over the next 1 to 3 years, MXC's performance will depend on external economic factors and management execution. Not investment advice.