Oil and Gas Royalties
Mexco Energy Corporation has been engaged in the purchase and development of oil and gas properties for over 38 years. Mexco's common stock is listed and trades on the American Stock Exchange under the symbol MXC. Financial and other information regarding MXC can be found here and at www.sec.gov.
Mexco seeks to acquire proved oil and gas properties through the purchase of royalty, mineral and non-operated working interests. We focus primarily on acquiring natural gas reserves. We offer value to owners interested in selling their oil and gas interests based on independent engineering estimates.
Why would I sell my royalty, mineral or working interests?
- Convert ordinary income of up to 40% in 2011 into lower federal capital gains rate taxes of 15% by selling before year end 2010 when capital gains taxes are scheduled to increase to 20% maximum under existing tax law. (Please consult your tax specialist.)
- Provide a lump sum cash payout for an immediate need or other cash investment opportunity instead of periodic payments.
- Eliminate the extensive financial record keeping associated with owning oil and gas properties.
- Create opportunity to invest in assets that appreciate instead of depreciate in value and with more stability. Since oil and gas production depletes the natural resource, the reserves are constantly depreciating. Market prices of oil and gas fluctuate resulting in fluctuating revenue checks.
- Eliminate excessive property tax burdens that come with the appraised value of oil and gas properties.
- Simplify estate and/or trust management by eliminating financial record keeping as stated above. Oil and gas interests divided among heirs of an estate in several ways may eventually become so trivial that maintaining the interests doesn't justify the work involved.
- If you own a working interest, eliminate sometimes costly monthly operating expenses and the financial burden to eventually plug the well.
How do I receive an offer for my royalty, mineral or working interests?
In order to make you an offer, we must first determine the current value of your interests. If you would like to request an offer, please fill out the form linked below and Tammy McComic, our President and Chief Financial Officer will make contact with you. You may also contact Ms. McComic directly at (432)682-1119.
How is the value of my royalty, mineral or working interests determined?
A registered professional petroleum engineer paid for by Mexco performs an engineering and economic evaluation on your interests to determine a fair sales price. This includes analyzing historical production data and calculating production decline rates. This information is used to forecast future well performance, calculate remaining oil and gas reserves, and predict future revenues and any asset retirement obligations. The NYMEX futures pricing also is used to help determine the current value of those reserves.
Requesting an offer or receiving an offer does not in any way obligate you to sell your interests.
If you do decide to sell your royalty, mineral or working interests after receiving our offer, we will finish our due diligence and prepare the mineral deeds. We will assume all the costs associated with completing the sale including filing fees.