NEW YORK - Mexco Energy Corporation (NYSE American: MXC), an independent oil and gas company, declared on Tuesday a regular annual cash dividend of $0.10 per share, payable on June 4, 2024, to shareholders on record as of May 21, 2024.
Alongside the dividend, the company's Board of Directors has authorized a stock repurchase program of up to $1 million to acquire shares for its treasury account, replacing the prior buyback plan with a remaining balance of $414,964.
Over the past fiscal year, which ended on March 31, 2024, Mexco repurchased 50,101 shares at an average price of $11.68 per share. The company, based in Midland, Texas, focuses primarily on the acquisition, exploration, and development of properties in the Permian Basin.
The dividend and repurchase authorization reflect the Board of Directors' discretion and consider various factors, including the company's liquidity, capital resources, operational results, and anticipated future performance. Mexco Energy has stated that future dividends and the exact amount are not guaranteed and will depend on the company's financial standing and capital needs at the time of evaluation.
The repurchase program, which is subject to securities laws, does not have a set expiration date and may be adjusted, paused, or discontinued at any time as decided by the Board of Directors.
This financial strategy comes as part of Mexco Energy's ongoing efforts to manage its capital and provide value to its shareholders. The information is based on a press release statement from Mexco Energy Corporation.
InvestingPro Insights
Mexco Energy Corporation (MXC) recently announced a regular annual cash dividend and a new stock repurchase program, showcasing the company's commitment to returning value to shareholders. To further understand Mexco's financial health and potential for investor value, here are some insights from InvestingPro.
One of the standout InvestingPro Tips for MXC is its ability to hold more cash than debt on its balance sheet. This indicates a strong liquidity position, which is essential for covering short-term obligations and potentially funding dividend payments and share buybacks. Moreover, MXC's liquid assets exceed its short-term obligations, providing further evidence of a solid financial foundation.
When it comes to performance, MXC has shown a strong return over the last month with a 24.39% increase, and over the last three months with a 25.3% increase, as per the InvestingPro Data.
While the company's revenue has seen a decline of 26.42% in the last twelve months as of Q3 2024, the gross profit margin remains high at 77.83%, indicating that the company is still able to maintain profitability despite revenue fluctuations. Moreover, the company's operating income margin stands at a healthy 33.48%.
For those investors looking for more comprehensive analysis and additional InvestingPro Tips, there are seven more tips available for MXC at InvestingPro. These tips could provide deeper insights into the company's long-term performance, cash flow sustainability, and profitability over the last twelve months. To access these tips and more, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
Investors should also note that MXC does not pay a dividend to shareholders, which aligns with the recent announcement of a stock repurchase program instead of a dividend increase. This could be a strategic move to enhance shareholder value by potentially increasing earnings per share and the stock price.
Finally, the InvestingPro Fair Value for MXC is currently at 13.59 USD, which could be a useful benchmark for investors considering the company's stock in light of its recent financial strategies.
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