Mexco Energy (MXC) risk factors, FY2026 10-K

Mexco Energy's FY2026 10-K, filed Jun 29, 2026, lists 22 risk factors in 2 groups. Against the prior year's 22: 2 new, 2 dropped, 17 substantially reworded.

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Risk factors listed
222 groups
New this year
2vs 22 last year
Dropped
2since the prior 10-K
Substantially reworded
17of those kept
Section length
3k wordsItem 1A

What the changes say

  • Commodity-price risks now more clearly link reserves and differentials to borrowing capacity, liquidity, and capital access.
  • Geopolitical risk expands to tariffs, sanctions, export controls, conflicts, and supply-chain costs affecting operators’ drilling.
  • Environmental risk emphasizes emissions compliance, produced-water injection restrictions, and permitting in parts of the Permian Basin.
  • Fiscal 2026 average differentials were $2.97 per Bbl for oil and ($1.48) per Mcf for gas.

What changed since the prior 10-K

New

  • NewRISKS RELATED TO OUR BUSINESS AND INDUSTRY

    Changes in commodity prices also affect estimated future net revenues and proved reserve quantities, which in turn can reduce our borrowing capacity and limit access to additional capital for exploration and development activities

    Lower commodity prices, storage or transportation constraints can cut revenues, reserves, borrowing capacity, liquidity, and exploration funding.

  • NewRISKS RELATED TO OUR BUSINESS AND INDUSTRY

    Our results of operations may be negatively impacted by current global political and economic events, including evolving trade policies, tariffs, and broader geopolitical instability

    Conflicts, tariffs, sanctions, export controls, and fragmented trade may disrupt supplies and raise equipment, material, and drilling-service costs.

Dropped

  • DroppedRISKS RELATED TO OUR BUSINESS AND INDUSTRY

    Our results of operations may be negatively impacted by current global events, including the imposition of tariffs

  • DroppedRISKS RELATED TO OUR BUSINESS AND INDUSTRY

    Our identified drilling locations are scheduled out over several years, making them susceptible to uncertainties that could materially alter the occurrence or timing of their drilling

    Broad political, economic, tariff, civil-unrest, and armed-conflict risks affecting operations and results.

Reworded

  • 99% rewrittenRISKS RELATED TO OUR BUSINESS AND INDUSTRY

    Changes in environmental laws, could increase our operators’ costs and adversely impact our business, financial condition, and cash flows

    Adds emissions reporting and performance standards, broader compliance burdens, and additional permitting restrictions for saltwater disposal wells.

  • 97% rewrittenRISKS RELATED TO OUR BUSINESS AND INDUSTRY

    A negative differential between NYMEX and the reference or regional index price used to price our oil and gas would reduce our cash flow from operations

    Adds fiscal 2026 average differentials of $2.97 per Bbl for oil and ($1.48) per Mcf for gas.

    Was: An increase in the differential between NYMEX and the reference or regional index price used to price our oil and gas would reduce our cash flow from operations

  • 97% rewrittenRISKS RELATED TO OUR BUSINESS AND INDUSTRY

    Volatility of oil and gas prices significantly affects our results and profitability

    Adds transportation and storage constraints, alternative fuels, technology, weather, pandemics, and geopolitics, plus borrowing-base reductions and ceiling-test write-downs.

  • 95% rewrittenRISKS RELATED TO OUR BUSINESS AND INDUSTRY

    Information concerning our reserves and future net revenue estimates is inherently uncertain

    Recasts reserve uncertainty around geological interpretation, development timing, expenditures, and assumptions that may differ materially from results.

    Was: Information concerning our reserves and future net revenues estimates is inherently uncertain

  • 94% rewrittenRISKS RELATED TO OUR BUSINESS AND INDUSTRY

    We may not be able to fund the capital expenditures that will be required for us to increase reserves and production

    Adds production levels and reserve estimates as factors limiting funding, while retaining commodity prices, drilling timing, and results.

  • 93% rewrittenRISKS RELATED TO OUR BUSINESS AND INDUSTRY

    Approximately 19% and 28% of our total estimated net proved reserves at March 31, 2026 and 2025, respectively, were undeveloped, and those reserves may not ultimately be developed

    Adds capital constraints and unsuccessful drilling as threats to undeveloped reserves and explicitly links write-offs to borrowing capacity.

    Was: Approximately 28% and 33% of our total estimated net proved reserves at March 31, 2025 and 2024, respectively, were undeveloped, and those reserves may not ultimately be developed

  • 92% rewrittenRISKS RELATED TO OUR BUSINESS AND INDUSTRY

    Our future effective tax rates could be subject to volatility or adversely affected by a number of factors, including changes in the valuation of our deferred tax assets and liabilities, the tax effects of stock-based compensation, or changes in tax laws, regulations, or interpretations thereof

    Adds the One Big Beautiful Bill and broader tax proposals that could change corporate rates, deductions, and energy-company taxation.

    Was: Our future effective tax rates could be subject to volatility or adversely affected by a number of factors, including: changes in the valuation of our deferred tax assets and liabilities; tax effects of stock-based compensation; or changes in tax laws, regulations or interpretations thereof

  • 90% rewrittenRISKS RELATED TO OUR BUSINESS AND INDUSTRY

    We own non-operating interests in properties developed and operated by third parties and, as a result, we are unable to control the operation and profitability of such properties

    Specifies that operators control drilling timing, capital spending, technology, approvals, and outcomes through their expertise and resources.

  • 89% rewrittenRISKS RELATED TO OUR BUSINESS AND INDUSTRY

    Our reliance on information technology, including information technologies hosted by third parties, exposes us to cybersecurity risks that could affect our business, financial condition, or reputation

    Was: Our reliance on information technology, including those hosted by third parties, exposes us to cyber security risks that could affect our business, financial condition or reputation

  • 88% rewrittenRISKS RELATED TO OUR BUSINESS AND INDUSTRY

    Lower oil and gas prices and other factors may cause us to record ceiling test write-downs

    Was: Lower oil and gas prices and other factors may cause us to record ceiling test writedowns

  • 87% rewrittenRISKS RELATED TO OUR BUSINESS AND INDUSTRY

    We must replace reserves we produce

  • 77% rewrittenRISKS RELATED TO OUR BUSINESS AND INDUSTRY

    We may not be insured against all of the operating hazards to which our business is exposed

  • 70% rewrittenRISKS RELATED TO OUR BUSINESS AND INDUSTRY

    Acquiring reserves in the oil and gas industry is highly competitive

  • 46% rewrittenRISKS RELATED TO OUR BUSINESS AND INDUSTRY

    We may be affected by one substantial shareholder

  • 36% rewrittenRISKS RELATED TO OUR COMMON STOCK

    Control by our executive officers and directors may limit your ability to influence the outcome of matters requiring stockholder approval and could discourage our potential acquisition by third parties

  • 25% rewrittenRISKS RELATED TO OUR BUSINESS AND INDUSTRY

    The loss of our Chief Executive Officer or President could adversely impact our ability to execute our business strategy

  • 21% rewrittenRISKS RELATED TO OUR COMMON STOCK

    The price of our common stock has been volatile and could continue to fluctuate substantially

All 22 risk factors

Headings as the filing states them, in filing order.

RISKS RELATED TO OUR BUSINESS AND INDUSTRY

  1. 01Volatility of oil and gas prices significantly affects our results and profitability97% rewritten
  2. 02Changes in commodity prices also affect estimated future net revenues and proved reserve quantities, which in turn can reduce our borrowing capacity and limit access to additional capital for exploration and development activitiesNew
  3. 03Our results of operations may be negatively impacted by current global political and economic events, including evolving trade policies, tariffs, and broader geopolitical instabilityNew
  4. 04Changes in environmental laws, could increase our operators’ costs and adversely impact our business, financial condition, and cash flows99% rewritten
  5. 05Lower oil and gas prices and other factors may cause us to record ceiling test write-downs88% rewritten
  6. 06We must replace reserves we produce87% rewritten
  7. 07Approximately 19% and 28% of our total estimated net proved reserves at March 31, 2026 and 2025, respectively, were undeveloped, and those reserves may not ultimately be developed93% rewritten
  8. 08Information concerning our reserves and future net revenue estimates is inherently uncertain95% rewritten
  9. 09A negative differential between NYMEX and the reference or regional index price used to price our oil and gas would reduce our cash flow from operations97% rewritten
  10. 10Drilling and operating activities are high-risk activities that subject us to a variety of factors that we cannot control
  11. 11We may not be able to fund the capital expenditures that will be required for us to increase reserves and production94% rewritten
  12. 12Our business depends on oil and natural gas transportation facilities that are owned by others
  13. 13We own non-operating interests in properties developed and operated by third parties and, as a result, we are unable to control the operation and profitability of such properties90% rewritten
  14. 14Acquiring reserves in the oil and gas industry is highly competitive70% rewritten
  15. 15We may not be insured against all of the operating hazards to which our business is exposed77% rewritten
  16. 16Our future effective tax rates could be subject to volatility or adversely affected by a number of factors, including changes in the valuation of our deferred tax assets and liabilities, the tax effects of stock-based compensation, or changes in tax laws, regulations, or interpretations thereof92% rewritten
  17. 17Our reliance on information technology, including information technologies hosted by third parties, exposes us to cybersecurity risks that could affect our business, financial condition, or reputation89% rewritten
  18. 18The loss of our Chief Executive Officer or President could adversely impact our ability to execute our business strategy25% rewritten
  19. 19We may be affected by one substantial shareholder46% rewritten

RISKS RELATED TO OUR COMMON STOCK

  1. 20We may issue additional shares of common stock in the future, which could cause dilution to all shareholders
  2. 21Control by our executive officers and directors may limit your ability to influence the outcome of matters requiring stockholder approval and could discourage our potential acquisition by third parties36% rewritten
  3. 22The price of our common stock has been volatile and could continue to fluctuate substantially21% rewritten

Other Mexco Energy 10-Ks

  • FY2025 10-K risk factors
    22 risks

    Mexco Energy's risks are dominated by commodity price volatility, reliance on third-party operators, and heavy insider ownership.

    Filed Jun 27, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.