MEXCO ENERGY CORP PP&E Disclosure
4. Property Sales
During fiscal 2020, the Company continued its policy of selling non-core assets in order to concentrate on the development of more profitable assets and to pay down debt. The Company received approximately $53,000 in cash from the sale of our remaining operated properties in Ector County, Texas; approximately $17,500 in cash for the sale of an overriding royalty interest in Lea County, New Mexico; approximately $4,300 in cash from the sale of joint venture leasehold acreage in which we retained the deep rights in Lea County, New Mexico; and, approximately $4,600 in cash from sales of joint venture leasehold acreage and marginal producing working interest wells in Howard and Ward Counties, Texas.
The Company also received approximately $18,000 in cash from the sale of its surface rights on acreage in Brazoria County, Texas to a related party. The Company retained its mineral rights in this property.
Other immaterial dispositions and purchase price adjustments during fiscal 2020 amounted to approximately $7,200. During fiscal 2019, the Company sold non-core assets for a total of approximately $162,000.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2020 | Jun 26, 2020 | Showing above |
| 2019 | Jun 24, 2019 | |
| 2018 | Jun 27, 2018 | |
About PP&E Disclosures
The PP&E disclosure details a company's physical asset base — land, buildings, machinery, and equipment — along with the depreciation methods and useful life assumptions that determine how these costs flow through the income statement. Capitalization policy thresholds reveal management's judgment on the boundary between expense and asset, directly affecting both reported earnings and asset values.
Key signals: changes in estimated useful lives or depreciation methods can materially shift reported earnings without any operational change. Compare capital expenditures against depreciation expense — when capex consistently trails depreciation, the asset base may be aging and underinvested. Watch for large asset impairments or write-downs that signal overvalued carrying amounts. Asset retirement obligations reveal future environmental or decommissioning costs that are often underappreciated. Compare PP&E intensity (PP&E-to-revenue) against industry peers to assess capital efficiency and competitive positioning.