Mexco Energy Corporation (MXC): Business Model Canvas [Dec-2025 Updated]

You're digging into the engine room of Mexco Energy Corporation (MXC) to see how this E&P (exploration and production) player actually makes money, and honestly, the structure is quite lean. As someone who's spent years mapping out energy plays, what stands out is their dual focus: snapping up low-cost royalty interests while actively drilling in the high-growth Permian Basin. For fiscal year 2025, they posted operating revenues of $7,358,066 and managed to pocket a net income of $1,712,368, all while maintaining a rock-solid balance sheet with zero debt and $2.2 million in cash. This canvas breaks down exactly how they balance stable royalty income-which made up about 31% of their 2025 revenue-with the upside of production sales. Dive in below to see the nine building blocks that drive this capital-efficient model.

Mexco Energy Corporation (MXC) - Canvas Business Model: Key Partnerships

When you look at Mexco Energy Corporation (MXC), you see an asset-light approach heavily reliant on the expertise and capital of others to execute the bulk of the physical work. Their Key Partnerships are where the operational heavy lifting happens, especially since they focus on acquiring interests rather than running massive field operations themselves.

Other oil and gas operators for joint drilling ventures

Mexco Energy Corporation actively partners with other operators to participate in drilling programs, effectively sharing the risk and capital outlay. For the fiscal year ending March 31, 2026, the company expects to participate in the drilling and completion of a total of 47 wells, broken down into 46 horizontal wells and 1 vertical well, with an estimated aggregate cost of approximately $1.0 million to Mexco Energy Corporation. As of November 12, 2025, approximately $300,000 of that planned expenditure had already been expended. This strategy allows Mexco Energy Corporation to maintain an aggressive development pace without tying up all its capital in a single operator's schedule. To be fair, this means you're dependent on the partner's efficiency, but the numbers show they are committed to this model.

Non-operated working interest partners in the Permian Basin

The Permian Basin is the core area for Mexco Energy Corporation's assets, and their partnerships here are crucial. While the search results don't name specific non-operated working interest partners, the scale of their participation speaks volumes. In fiscal 2025, Mexco Energy Corporation participated in drilling 35 horizontal wells, with 29 of those wells located in the Delaware Basin. Furthermore, the company noted that in the first six months of fiscal 2026 (ending September 30, 2025), oil contributed 76% of their operating revenues, underscoring the importance of these Permian-focused joint operations.

Landowners for royalty and mineral interest acquisitions

Acquiring royalty and mineral interests from landowners is a cornerstone of Mexco Energy Corporation's strategy, as these interests often come free of operational costs. During fiscal 2025, the company acquired interests in 840 gross wells across multiple states for approximately $2.0 million. Looking at the first half of fiscal 2026 (through September 30, 2025), Mexco Energy Corporation expended approximately $450,000 to date for royalty and mineral interest acquisitions in 63 producing wells. These recent acquisitions targeted areas including Martin and Pecos Counties, Texas, as well as Eddy County, New Mexico, Caddo Parish, Louisiana, and Weld County, Colorado. This income stream is valuable because approximately 31% of fiscal 2025 operating revenues were produced from these royalties, free of operational costs.

Drilling and completion service providers (e.g., rig companies)

Mexco Energy Corporation does not directly employ the service providers; instead, their commitment to the drilling partners dictates the demand for these services. The partnership structure means that the service providers are contracted by the operator of the well in which Mexco Energy Corporation holds a working interest. You can see the scale of this implied partnership through their planned capital deployment: an estimated aggregate cost of $1.0 million for the 47 wells planned for drilling and completion in fiscal year ending March 31, 2026.

Midstream companies for oil and gas transportation

While the search results don't explicitly name midstream partners, the company's operational challenges highlight the importance of this partnership category. The reports mention that low natural gas prices, which impacted fiscal 2025 results, were due to limited pipeline capacities in the Permian Basin. This suggests that access to midstream infrastructure-pipelines, processing plants, and storage-is a critical, though perhaps sometimes constrained, element of their business model, directly affecting the realized price for their natural gas production.

Here's a quick look at the recent capital deployment related to partnerships:

The reliance on royalty income is a key feature of these partnerships, as 31% of fiscal 2025 operating revenues came from these cost-free interests.

Mexco Energy Corporation (MXC) - Canvas Business Model: Key Activities

The Key Activities for Mexco Energy Corporation (MXC) center on the direct pursuit and management of oil and gas assets, which is the engine of its revenue generation. This involves a disciplined, multi-faceted approach to capital deployment across the lifecycle of a property, from initial acquisition to ongoing development and reserve stewardship. You need to see the numbers to understand the scale of these operations.

A core activity is the Acquisition of royalty and mineral interests. This is about buying into existing production streams to generate immediate, low-cost revenue. For the full fiscal year 2025, Mexco Energy Corporation spent approximately $2.0 million to acquire interests in about 840 gross wells across multiple states. To keep the portfolio fresh, the company continued this bolt-on acquisition strategy into the new fiscal year; year-to-date for the first half of fiscal 2026 (ending September 30, 2025), approximately $450,000 was expended on royalty and mineral interest acquisitions in 63 producing wells.

The next critical activity is the Participation in drilling and completion of new wells, which drives future reserve growth. In fiscal 2025, Mexco Energy Corporation participated in the drilling of 35 horizontal wells at an approximate cost of $1,100,000. Twenty-nine of those wells were specifically located in the Delaware Basin. Looking forward, the company has an aggressive development plan for fiscal 2026, expecting to participate in the drilling and completion of 46 horizontal wells and 1 vertical well for an estimated aggregate cost of approximately $1.0 million, of which about $300,000 had already been expended by the end of the first half of fiscal 2026.

These investment activities feed directly into the Exploration and development of crude oil and natural gas properties. Mexco Energy Corporation conducts all its drilling, exploration, and production activities within the United States, with all assets primarily located in the Permian Basin of West Texas. The company focuses on both natural gas and oil reserves, though oil accounted for approximately 86% of its oil and gas sales in fiscal 2025.

Effective Management of proved oil and gas reserves is essential, as the valuation of these assets directly impacts the balance sheet. As of the end of fiscal 2025 (March 31, 2025), the estimated present value of Mexco Energy Corporation's proved reserves was approximately $23 million, based on a 10% discount rate. However, due to lower commodity prices during that period, the reserve quantities saw a slight contraction:

Finally, the company must execute rigorous Financial management and SEC compliance for NYSE American listing. This activity ensures the company can access public capital markets. For the fiscal year ended March 31, 2025, Mexco Energy Corporation reported a net income of $1,712,368, a 27% increase from the prior year, on operating revenues of $7,358,066. Maintaining this public status is supported by a clean balance sheet; as of March 31, 2025, the company held $2.2 million in cash and reported no outstanding indebtedness on its bank line of credit.

These core functions can be summarized by the deployment of capital and the resulting asset base:

• FY2025 Drilling Participation Cost: Approximately $1,100,000.
• FY2025 Royalty/Mineral Interest Acquisition Spend: Approximately $2.0 million.
• FY2025 Net Income: $1,712,368.
• H1 FY2026 Royalty/Mineral Interest Spend (YTD): Approximately $450,000.
• FY2026 Planned Drilling/Completion Cost: Estimated aggregate of $1.0 million.

Mexco Energy Corporation (MXC) - Canvas Business Model: Key Resources

You're looking at the core assets that power Mexco Energy Corporation's operations right now. Honestly, for an independent E&P (exploration and production) company, these resources are everything; they are the foundation for any future growth or acquisition strategy.

Proved oil and gas reserves, primarily in the Permian Basin

The value of Mexco Energy Corporation's proved reserves, as of the fiscal year end March 31, 2025, was estimated at approximately $23 million, based on future net revenues discounted at 10% per annum. The composition of these reserves shows a heavy weighting toward crude oil.

To give you a sense of current sales focus, oil accounted for 80% of gross oil and natural gas sales in the quarter ending June 30, 2025, and 76% of operating revenues for the six months ending September 30, 2025.

Strong balance sheet with $2.2 million in cash and zero outstanding debt (FY2025)

The financial footing as of March 31, 2025, is a significant resource, especially in this sector. You see the numbers clearly here:

• Cash on hand: approximately $2.2 million.
• Outstanding indebtedness on the bank line of credit: zero.
• Net income for the six months ending September 30, 2025: $565,457.
• Operating revenues for the six months ending September 30, 2025: $3,548,919.

This clean balance sheet definitely helps when you're looking to participate in new deals.

Non-operated working interests and royalty/mineral interests

Mexco Energy Corporation actively builds its asset base through acquisitions of various interests. During the fiscal year ended March 31, 2025, the company spent approximately $2.0 million to acquire interests in 840 gross wells across multiple states, including Texas, New Mexico, and Colorado.

A key feature of these assets is the royalty stream. For the fiscal year 2025, approximately 31% of operating revenues came from royalties, meaning that portion was free of operational costs to Mexco Energy Corporation.

Experienced management team focused on acquisitions and development

The leadership, headed by President and Chief Financial Officer Tammy L. McComic, is clearly focused on deploying capital into development and new opportunities. The team is actively seeking opportunities, supported by that strong cash position.

For the fiscal year ending March 31, 2026, the company planned capital deployment included participation in the drilling and completion of approximately 47 wells at an estimated aggregate cost of about $1.0 million, with $300,000 expended as of late 2025. That's the quick math on their near-term development budget.

Access to capital markets via NYSE American listing

The public listing itself is a resource for visibility and potential future financing. Mexco Energy Corporation trades under the symbol MXC on the NYSE American exchange. As of November 2025, the market capitalization stood at $19.44 million.

Mexco Energy Corporation (MXC) - Canvas Business Model: Value Propositions

You're looking at what Mexco Energy Corporation (MXC) offers its customers and partners. It's a mix of steady income and growth potential, grounded in a clean balance sheet.

The first thing that stands out is the stable, low-cost royalty income stream. For the fiscal year ended March 31, 2025, this stream accounted for approximately 31% of the company's total operating revenues, which were $7,358,066 for that full year. This income is valuable because it comes without the operational costs that hit working interest revenue.

Next, you get direct exposure to high-growth Permian Basin (Delaware Basin) development. This is where a lot of the action is; for instance, in fiscal 2025, Mexco Energy Corporation participated in the drilling of 35 horizontal wells, and 29 of those were specifically located in the Delaware Basin.

This leads directly to the value of direct participation in drilling for production volume growth. The company actively commits capital to new wells. Here's a quick look at the scale of their recent investment activity:

The financial stability is a core offering. As of the fiscal year 2025 report, Mexco Energy Corporation held $2.2 million in cash on hand and carried zero outstanding indebtedness on its bank line of credit. This clean position supports their ability to pursue opportunities.

Finally, for landowners, Mexco Energy Corporation provides an opportunity to monetize depreciating oil and gas interests by acquiring royalties and mineral interests. This is an ongoing focus, as evidenced by recent activity:

• Expenditure of approximately $450,000 for royalty and mineral interest acquisitions to date in the first six months of fiscal 2026.
• These acquisitions covered interests in 63 producing wells.
• Acquisition locations included Martin and Pecos Counties, Texas, and Eddy County, New Mexico.

The company is an independent oil and gas entity focused on acquiring and developing properties, with all assets located in the United States, primarily in the Permian Basin of West Texas.

Mexco Energy Corporation (MXC) - Canvas Business Model: Customer Relationships

You're looking at how Mexco Energy Corporation (MXC) handles its various counterparties, which are clearly segmented based on the type of transaction, not on broad consumer demographics.

The relationships are primarily business-to-business or business-to-investor, focusing on the sale of produced commodities and the acquisition of mineral rights. Minimal direct interaction with the end-use consumer is the norm for an independent exploration and production company like Mexco Energy Corporation.

Transactional Sales with Large Energy Purchasers and Refiners

Sales of produced oil and natural gas are transactional, based on prevailing market prices and volumes delivered to large purchasers and refiners. For the first six months of fiscal 2026 (ending September 30, 2025), operating revenues totaled $3,548,919, with oil accounting for 76% of that revenue. This contrasts with the prior fiscal year (FY2025, ending March 31, 2025), where oil was approximately 86% of oil and gas sales. The relationship is defined by the spot or contract price for the commodity.

Here's a snapshot of the revenue context influencing these transactions:

Direct, Professional Communication with Joint Venture Partners

Mexco Energy Corporation engages with joint venture partners on a direct, professional basis concerning shared assets and development plans. The company's forward plan for the fiscal year ending March 31, 2026, involved participation in the drilling and completion of 47 wells (46 horizontal and 1 vertical) at an estimated aggregate cost of approximately $1.0 million. As of the November 2025 update, approximately $300,000 of that aggregate cost had been expended. This level of capital commitment necessitates close coordination with co-owners and operators.

Simplified, One-Time Cash Payout for Royalty Interest Sellers

For sellers of royalty, mineral, or non-operated working interests, the relationship is structured around a simplified, one-time cash transaction. Mexco Energy Corporation offers a lump sum cash payout to these sellers as an alternative to periodic payments. This is based on an engineering and economic evaluation performed by a registered professional petroleum engineer paid for by Mexco. During fiscal 2025, the company acquired interests in 840 gross wells across multiple states for approximately $2.0 million. Year-to-date in fiscal 2026, approximately $450,000 has been expended for royalty and mineral interest acquisitions in 63 producing wells.

Investor Relations for Public Shareholders (NYSE American: MXC)

Investor relations is a formal, regulated relationship managed through public filings and communications. Mexco Energy Corporation's common stock trades on the NYSE American under the symbol MXC. The company reported a Forward Dividend Rate (FWD) of $0.10. The Market Capitalization was reported near $17.90M or $19.44M in late 2025 reports. The President and Chief Financial Officer, Tammy L. McComic, is a key contact point for these communications.

Key shareholder-facing metrics include:

• Stock Exchange: NYSE American
• Forward Dividend Rate: $0.10
• Market Capitalization: Approximately $19.44M
• Net Income (H1 FY2026): $565,457

Minimal Direct Interaction with End-Use Consumers

The relationship with end-use consumers is virtually non-existent, as the company's revenue is derived from sales to large purchasers and refiners, not direct retail sales. The company's business model focuses on upstream activities. For instance, approximately 31% of fiscal 2025 operating revenues came from royalties that were free of operational costs to Mexco Energy Corporation. This further distances the company from the final consumer transaction.

Mexco Energy Corporation (MXC) - Canvas Business Model: Channels

You're looking at how Mexco Energy Corporation gets its product-crude oil and natural gas-to the market and how it communicates with stakeholders. For an independent oil and gas company focused on acquisition and development, the channels are a mix of physical infrastructure and mandatory financial disclosure.

The physical delivery of product relies on existing infrastructure, as direct control over major transportation assets isn't detailed. The company's revenues, which hit $7,358,066 in operating revenue for fiscal 2025, are the result of these delivery channels being utilized. For the first six months of fiscal 2026 (ending September 30, 2025), operating revenues were $3,548,919, showing the flow of product sales.

Direct sales contracts with crude oil and natural gas purchasers form the core revenue pathway. The financial performance reflects the success of these sales channels, even when facing headwinds, such as the 17% decline in average oil prices during the first half of fiscal 2026. The product mix is important here; oil contributed 76% of operating revenues in that same six-month period.

Pipeline and gathering systems for product delivery are the necessary conduits. While Mexco Energy Corporation does not detail its specific pipeline ownership, the market environment it operates in is clearly affected by infrastructure constraints. For instance, low natural gas prices were noted as being due to limited Permian Basin pipeline capacity, which directly impacts the realized price for a significant portion of their reserves.

Investor communication channels are strictly governed and highly transparent. Mexco Energy Corporation uses these to keep the market informed:

• Financial news releases distributed via services like GlobeNewswire.
• Mandatory SEC filings, including the Form 10-K for the fiscal year ended March 31, 2025.
• The corporate website, www.mexcoenergy.com, is maintained for general information.

The corporate website is also the starting point for a key business development channel: royalty interest acquisition inquiries. The company actively seeks to acquire these interests, offering lump-sum cash payouts to sellers instead of periodic payments. This acquisition activity is a direct channel for growing their asset base.

Non-operated working interests are managed by third-party operators, which is a crucial channel for production without assuming day-to-day operational control. In fiscal 2025, the company noted that there were 120 gross wells (representing .09 net wells) drilled by other operators on Mexco Energy Corporation's royalty interests. Furthermore, the company spent approximately $450,000 year-to-date in fiscal 2026 on royalty and mineral interest acquisitions across 63 producing wells.

Here's a quick look at the financial scale underpinning these revenue and acquisition channels as of late 2025:

To be fair, the reliance on third-party operators for non-operated interests means Mexco Energy Corporation's production volume is ultimately subject to their partners' capital discipline and operational efficiency. Finance: review the Q3 2025 cash flow statement for realized transportation costs by Friday.

Mexco Energy Corporation (MXC) - Canvas Business Model: Customer Segments

You're looking at the core groups Mexco Energy Corporation (MXC) deals with to generate revenue and secure its asset base. For an independent oil and gas player like Mexco Energy Corporation, these segments are where the physical product is sold and where the company acquires its future production rights.

Large, commercial crude oil and natural gas purchasers/refiners

Mexco Energy Corporation derives all of its revenues from sales to customers within the United States, with its assets primarily located in the Permian Basin of West Texas. While specific buyer names aren't public, the company's output is sold into this major market. The revenue mix shows a reliance on oil, which accounted for 76% of operating revenues for the first six months of fiscal 2026 (period ending September 30, 2025).

Institutional and individual public equity investors

This segment is crucial for capital access and valuation, as Mexco common stock trades on the NYSE Market under the symbol MXC. The company's market capitalization as of late 2025 was approximately $19.44 million. Institutional investors held 5.89% of the stock. You can see the key players holding stakes as of September 29, 2025:

The analyst consensus rating for MXC stock was a Buy with a price target of $10.50.

Other independent and major exploration and production (E&P) companies

Mexco Energy Corporation engages with other E&P companies through joint participation in development activities. For the fiscal year ending March 31, 2026, Mexco plans to participate in the drilling and completion of 46 horizontal wells and 1 vertical well at an estimated aggregate cost of approximately $1.0 million. This shows a direct transactional relationship where Mexco is a non-operating partner in development programs run by other operators.

Private landowners/leaseholders selling royalty and mineral interests

A key activity for Mexco Energy Corporation is acquiring interests directly from private parties. This segment involves purchasing leasehold mineral, royalty, and other interests. Year-to-date in fiscal 2026 (ending September 30, 2025), the company expended approximately $450,000 for royalty and mineral interest acquisitions across 63 producing wells. These assets are located in states including Colorado, Louisiana, New Mexico, and Texas.

Midstream companies buying product at the wellhead

Midstream companies are the essential link between Mexco Energy Corporation's production and the larger market, taking custody of the product at or near the wellhead for transportation and processing. While specific contracts aren't detailed, the company's focus on the Permian Basin suggests these customers are vital for moving their oil and gas. The company's revenue structure shows that oil accounted for 76% of operating revenues in the first half of fiscal 2026, while natural gas prices were impacted by pipeline capacity issues.

Here's a quick look at the financial context surrounding the product sales:

• Operating Revenues (H1 FY2026): $3,548,919.
• Net Income (H1 FY2026): $565,457, or $0.27 per diluted share.
• Oil's share of operating revenues (H1 FY2026): 76%.
• Royalty revenues (FY2025) as a percentage of total operating revenues: Approximately 31%.

Finance: draft 13-week cash view by Friday.

Mexco Energy Corporation (MXC) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive Mexco Energy Corporation's operations, focusing on the numbers from the fiscal year ended March 31, 2025 (FY2025), and the most recent activity reported through late 2025.

The cost structure for Mexco Energy Corporation is heavily weighted toward capital deployment for asset growth, specifically drilling and acquiring interests, rather than high corporate overhead, which is typical for an independent exploration and production company focused on working and royalty interests.

Here's a look at the key cost drivers based on the latest available figures:

• Capital expenditures for drilling and completion activities.
• General and administrative (G&A) expenses for corporate overhead.
• Lease operating expenses (LOE) for non-royalty producing wells.
• Costs for acquiring new royalty and mineral interests.
• Depreciation, depletion, and amortization (DD&A) of oil and gas properties.

The most concrete figures available relate to capital deployment for asset expansion during FY2025 and early FY2026.

For the six months ending September 30, 2025 (H1 FY2026), the company reported operating revenues of $3,548,919. The company maintains a strong balance sheet with $2.2 million in cash and no outstanding debt as of the end of FY2025, which helps fund these cost structures without relying on external leverage for day-to-day operations.

Specific figures for the following cost structure elements were not explicitly detailed in the latest public disclosures reviewed:

• General and administrative (G&A) expenses for corporate overhead.
• Lease operating expenses (LOE) for non-royalty producing wells.
• Depreciation, depletion, and amortization (DD&A) of oil and gas properties.

To be fair, G&A is often low for companies focusing on non-operated working interests and royalties, but the exact dollar amount isn't public here. Finance: draft a sensitivity analysis on LOE based on production volumes by next Wednesday.

Mexco Energy Corporation (MXC) - Canvas Business Model: Revenue Streams

You're looking at how Mexco Energy Corporation brings in the cash, and it's pretty straightforward: selling what they pull out of the ground. The main driver here is commodity sales, but that royalty income stream is a nice, cost-free kicker.

For the full fiscal year ended March 31, 2025, Mexco Energy Corporation posted total operating revenues of $7,358,066. That year also saw the company land a net income of $1,712,368. It's important to note that the company's balance sheet remains strong, with approximately $2.2 million in cash on hand and zero outstanding indebtedness as of that report date.

Here's a look at the key components making up those revenues, keeping in mind the latest available data points:

• Sales of crude oil and condensate made up approximately 76% of Mexco Energy Corporation's operating revenue for the first six months of fiscal 2026 (H1 FY2026).
• Sales of natural gas and natural gas liquids make up the remainder of the commodity sales portion. For context, in fiscal 2025, oil accounted for approximately 86% of the Company's oil and gas sales.
• Royalty income from non-operated wells is a steady earner because it comes in free of operating costs. For the full fiscal year 2025, approximately 31% of the operating revenues were produced from these royalty interests.

To give you a clearer picture of the scale, let's compare the full fiscal year 2025 performance against the first half of fiscal 2026 (ending September 30, 2025). This shows you the near-term trend.

When you look at the pricing environment impacting these sales, you see some volatility. For the fiscal year 2025, the average realized price for oil was $73.54 per barrel, while natural gas prices were notably depressed at $1.70 per thousand cubic feet. Anyway, the revenue stream is clearly weighted toward crude.

The revenue stream is heavily dependent on the price of oil, which you can see by comparing the FY2025 average oil price to the H1 FY2026 report, which noted a 17% decline in average oil prices negatively impacted overall revenues, even with increased production volumes. Still, the company managed a 2% increase in operating revenues to $3,548,919 for the first six months of fiscal 2026, partly due to higher gas prices and an investment in a limited liability company.

Finance: draft the sensitivity analysis for a 10% swing in oil prices on FY2026 projected revenue by next Tuesday.