Executive Summary

Q2 FY2026 (quarter ended September 30, 2025; “Q3 2025” calendar) delivered net income of $323,506 and diluted EPS of $0.16, slightly above prior-year quarter ($317,198, $0.15), on operating revenues of $1,734,743 .
First half FY2026 operating revenues were $3,548,919 (+2% YoY) with net income of $565,457 and diluted EPS of $0.27, aided by higher natural gas prices and volumes, and LLC investment income, partially offset by lower average oil prices; oil represented 76% of operating revenues in H1 FY2026 .
Activity plans were expanded: the company expects to participate in drilling and completion of 46 horizontal wells and 1 vertical well in FY2026 at an estimated $1.0M (vs. earlier FY2026 plan of 35 drills/17 completions at ~$1.2M), and has spent ~$450,000 on royalty/mineral acquisitions year-to-date .
No earnings call transcript or Street consensus (S&P Global) was available for this quarter; comparisons vs estimates are N/A (consensus unavailable via S&P Global at time of request).

What Went Well and What Went Wrong

What Went Well

EPS and net income edged up YoY in the quarter: $0.16 EPS and $323,506 net income vs $0.15 and $317,198 in the comparable quarter, despite oil price headwinds .
Mix and price support: higher average natural gas prices and increased oil and gas production volumes supported revenue in H1 FY2026; LLC investment revenues also contributed .
Program acceleration: plan to participate in 46 horizontal wells and 1 vertical in FY2026 at ~$1.0M, plus ~$450,000 spent to acquire royalty/mineral interests across 63 producing wells with additional development potential in CO, LA, NM, and TX .
Quote (Tammy L. McComic, President & CFO): “Although oil production volumes increased during the six-month period, the 17% decline in average oil prices has adversely impacted overall revenues.”

What Went Wrong

Oil price pressure: average oil prices declined 17% in H1 FY2026, adversely impacting overall revenues, even with volume growth .
Q1 FY2026 EPS was down YoY ($0.12 vs $0.14) as lower oil prices offset strong volume growth and higher gas prices; oil accounted for 80% of gross oil and natural gas sales in Q1 .
Limited external datapoints: no earnings call transcript and no available Street consensus for the quarter, constraining market-relative performance context (estimates and call Q&A not available in filings/press releases).

Financial Results

Quarterly Metrics (oldest → newest)

Metric	Q3 FY2025 (quarter ended Dec 31, 2024)	Q1 FY2026 (quarter ended Jun 30, 2025)	Q2 FY2026 (quarter ended Sep 30, 2025)
Operating Revenues ($USD)	$1,891,265	$1,814,176	$1,734,743
Net Income ($USD)	$469,133	$241,951	$323,506
Diluted EPS ($)	$0.22	$0.12	$0.16
Net Income Margin (%)	24.8% (=$469,133 / $1,891,265)	13.3% (=$241,951 / $1,814,176)	18.6% (=$323,506 / $1,734,743)

Current Quarter vs Prior Periods and Estimates

Comparison	Operating Revenues ($USD)	Net Income ($USD)	Diluted EPS ($)
QoQ vs Q1 FY2026	-$79,433 (=$1,734,743 - $1,814,176)	+$81,555 (=$323,506 - $241,951)	+$0.04 (=$0.16 - $0.12)
YoY vs comparable quarter	N/A (not disclosed for quarter)	+$6,308 (=$323,506 - $317,198)	+$0.01 (=$0.16 - $0.15)
Vs S&P Global Consensus	N/A (consensus unavailable)	N/A (consensus unavailable)	N/A (consensus unavailable)

H1 FY2026 Mix and Context

Metric	H1 FY2026 (six months ended Sep 30, 2025)
Operating Revenues ($USD)	$3,548,919
Net Income ($USD)	$565,457
Diluted EPS ($)	$0.27
Oil % of Operating Revenues	76%
Price/Volume Commentary	Higher gas prices and higher oil & gas volumes; lower average oil prices

No segment breakdowns are disclosed in the press releases/8-Ks for these periods .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Drilling/Completion Participation	FY2026	Drill 27 / complete 17 horizontal wells; ~$1.2M aggregate cost (June update)	Drill & complete 46 horizontal and 1 vertical; ~$1.0M aggregate cost; ~$300,000 spent to date	Raised activity; lower expected aggregate cost
Drilling/Completion Participation	FY2026 (earlier Q1 update)	Drill 35 / complete 17 horizontal; ~$1.2M; ~$350,000 spent to date	Drill & complete 46 horizontal and 1 vertical; ~$1.0M; ~$300,000 spent to date	Raised activity; cost guidance reduced
Royalty/Mineral Acquisitions Spend (YTD)	FY2026	Not specified in Q1 PR	~$450,000 for acquisitions in 63 producing wells; locations in CO, LA, NM, TX	New disclosure
Dividend	FY2025	Regular annual cash dividend $0.10 per share (paid Jun 16, 2025)	No new dividend declaration in Q3 2025 period	Maintained (no update disclosed)

Notes: Guidance is operational in nature (activity levels and expected aggregate cost). No revenue, margin, OpEx, OI&E, or tax-rate guidance was disclosed in the referenced materials .

Earnings Call Themes & Trends

No earnings call transcript was found for Q3 2025/Q2 FY2026 [List: 0 transcripts returned]. The following themes are drawn from press releases and 8-K disclosures.

Topic	Previous Mentions (Q-2: Q3 FY2025; Q-1: Q1 FY2026)	Current Period (Q3 2025/Q2 FY2026)	Trend
Commodity Prices	Natural gas prices low due to Permian pipeline capacity constraints (FY2025 context) ; Q3 FY2025 revenue and EPS strong despite lower prices	Average oil prices down 17% in H1 FY2026; gas prices higher	Mixed: oil price headwind; gas price tailwind
Production Volumes	FY2025 production volumes increased YoY	Oil & gas production volumes increased; helped offset oil price decline	Positive volume momentum
Revenue Mix	Oil contributed 86% of operating revenues in FY2025	Oil contributed 76% in H1 FY2026; oil still dominant	Slightly less oil-heavy mix (higher gas contribution)
Capex/Activity	FY2025: drilled 35 horizontal wells; completing 17 in FY2026	FY2026 plan raised to 46 horizontal + 1 vertical; aggregate cost ~$1.0M	Activity increased; capital efficiency indicated
Royalty/Mineral Acquisitions	FY2025 acquisitions ~$2.0M across ~840 gross wells (2.31 net)	FY2026 YTD acquisitions ~$450,000 across 63 producing wells with development potential	Continued bolt-on acquisitions, smaller spend pace

Management Commentary

“Although oil production volumes increased during the six-month period, the 17% decline in average oil prices has adversely impacted overall revenues.” — Tammy L. McComic, President & CFO .
“In the first quarter of fiscal 2026, volumes of the Company’s average production of oil and gas increased 21% over the comparable quarter in fiscal 2025. Prices of oil and gas per BOE decreased 14% for the comparable period. Oil accounts for 80% of our gross oil and natural gas sales.” — Tammy L. McComic .
Activity outlook (FY2026): participate in drilling/completion of 46 horizontal wells and 1 vertical; estimated aggregate cost ~$1.0M; evaluating other prospects .
FY2026 YTD acquisitions: ~$450,000 for royalty and mineral interests in 63 producing wells across CO, LA, NM, and TX .

Q&A Highlights

No earnings call transcript was available for this quarter; no Q&A to summarize [ListDocuments: earnings-call-transcript returned none].

Estimates Context

Wall Street consensus (S&P Global) for MXC’s Q3 2025/Q2 FY2026 EPS and revenue was unavailable at the time of request; comparisons vs estimates are N/A.

Key Takeaways for Investors

Quarter resilience: EPS and net income rose modestly YoY despite a 17% decline in average oil prices, indicating helpful mix, gas price recovery, and volume support .
QoQ dynamics: Revenues dipped sequentially (-$79,433), but net income and EPS improved (+$81,555; +$0.04), implying better margins and/or mix in the period .
Activity acceleration: FY2026 program lifted to 46 horizontal + 1 vertical wells with a lower aggregate cost (~$1.0M), suggesting disciplined capital deployment and potential production support into FY2026 .
Portfolio building: ~$450,000 spent on royalty/mineral acquisitions year-to-date across 63 producing wells with development potential in multiple basins/states .
Mix shift: Oil share of revenues moderated to 76% in H1 FY2026 from 86% in FY2025, potentially reducing sensitivity to oil price volatility amid higher gas pricing .
Data limitations: No earnings call transcript and consensus estimates available; trading setups will focus on operational disclosures (price/volume mix, activity cadence) rather than “beat/miss” framing this quarter.
Watchlist items: Oil price trajectory, Permian infrastructure dynamics (gas takeaway/pricing), execution on raised activity plan, and continued bolt-on royalty/mineral acquisitions .

MEXCO ENERGY CORP (MXC)·Q3 2025 Earnings Summary