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Mexco Energy Corporation acquires rights to receive oil and gas production revenue and ownership interests in projects where it is not the operator. Its properties are concentrated in West Texas and southeastern New Mexico, with the Permian Basin supplying most revenue. Third-party operators produce and sell the oil, natural gas and natural gas liquids; the operator or purchaser then pays Mexco its contractual share. Oil provides most production sales, while royalty interests supply a substantial part of the company’s income.
Mexco relies on operators to decide when to drill, how to develop properties and how much to produce, with limited control over their decisions. BTA Oil Producers, LLC is a major payer, accounting for a large share of revenue. Earnings depend on the prices received for production and on access to gathering systems, pipelines and processing facilities. Maintaining production also requires developing or acquiring reserves as existing reserves are depleted.
Regulatory restrictions on wastewater-disposal wells in parts of the Permian Basin can constrain operators’ disposal options and raise production costs.
The risk section is the longest, dullest part of the filing. This keeps only what can really hurt you: where it hits, how hard, when it plays out.
Every company claims an edge. Each one is checked against hard numbers like margins and returns: which hold, and which line gives way first.
Mexco’s results hinge on oil prices and third-party Permian operators, making privately held BTA Oil Producers a key company to watch.
Permian Resources produces and sells oil and gas in Mexco’s core Delaware Basin and also remits revenue to Mexco, accounting for 6% of Mexco’s fiscal 2025 operating revenues. Watch its Delaware drilling and production for a read on the activity supporting Mexco’s income from oil and gas interests.
PrimeEnergy develops and produces oil and gas in West Texas, sharing the regional oil-price exposure behind much of Mexco’s revenue. Its West Texas development activity is the part to watch for clues to local drilling economics, rather than its Oklahoma operations.
EON Resources sells oil and gas from wells it operates in Eddy County, New Mexico, sharing Mexco’s exposure to Permian oil prices and production costs. Its oil production using injected water to recover more crude offers a regional comparison, while Mexco relies on other companies to operate its properties.
Occidental’s major Permian oil and gas production business shares the oil-price and field economics that drive most of Mexco’s revenue. Watch its Permian production and field-development costs rather than treating its broader international business as a direct comparison with Mexco.
SM Energy and Mexco both earn most of their oil and gas sales revenue from oil and have substantial Midland Basin exposure, so oil prices matter to both. Watch SM Energy’s Midland production separately: its 2025 revenue growth mainly reflected a full year of production from acquired Uinta assets, not Midland alone.
EOG Resources produces and markets substantial volumes of oil in the Delaware Basin, sharing Mexco’s exposure to Permian commodity prices and development activity.
ExxonMobil is both an oil and gas producer and a significant source of payments to Mexco, accounting for 15% of Mexco’s sales attributable to payors in fiscal 2026. For Mexco holders, the concrete tie is those oil and gas sales payments, rather than ExxonMobil’s much broader petroleum and chemicals business.
PEDEVCO sells crude oil and holds Permian properties in West Texas and eastern New Mexico, sharing Mexco’s oil-price and regional exposure. Watch the crude prices it receives after transport deductions: its sales contracts track published refinery prices and crude indexes, making that revenue line sensitive to oil-market changes.
EIA Crude Oil Stocks Change (Oct/16)
Mexco earns most of its production revenue from oil, so the EIA’s weekly count of crude oil and fuel in storage can signal whether supply is loosening or tightening and affect the prices operators receive for its production.
A stock build points to looser supply and may weigh on oil prices and the proceeds operators remit to Mexco; a draw points to tighter supply and may support both.
ExxonMobil Holdings Corporation earningsXOM
ExxonMobil’s report will show whether its oil and gas business is still supporting payments to Mexco, which accounted for 15% of Mexco’s fiscal 2026 sales.
Read ExxonMobil’s oil and gas activity alongside the payments it makes to Mexco. Steady activity and payments would support this important revenue source; weaker activity or falling payments would highlight Mexco’s reliance on a single payor.
Permian Resources Corporation earningsPR
Permian Resources’ report will show whether drilling and production continue in the Delaware Basin, where activity supports revenue from Mexco’s interests.
Look at Permian Resources’ Delaware drilling and production, alongside its 6% contribution to Mexco’s fiscal 2025 operating revenue. Continued or greater activity would support the production and interest income tied to local development; slowing activity or lower production would point to weaker support from this core area.
PEDEVCO Corp. earningsPED
PEDEVCO’s report will show the crude prices it receives after transport deductions in West Texas and eastern New Mexico, a useful read on oil pricing for Mexco’s oil-heavy revenue.
Read PEDEVCO’s crude price after transport deductions against Mexco’s oil exposure: oil made up about 81% of Mexco’s oil and gas sales in fiscal 2026. A steady price would suggest regional pricing still supports Mexco’s revenue per barrel; a falling price would underline its oil exposure, though the two companies’ realized prices and transport deductions may differ.
