EON Resources Inc.(EONR) - 2024 Q3 - Quarterly Report

Production and Sales - Average daily production for the nine months ended September 30, 2024, was 814 BOE per day, down from 1,022 BOE per day for the year ended December 31, 2023[184] - Average daily production for oil decreased from 855 Bbl in September 2023 to 746 Bbl in September 2024, while natural gas production fell from 1,007 Mcf to 647 Mcf[203] - For the three months ended September 30, 2024, oil and natural gas sales decreased by 18% compared to the same period in 2023, driven by a 6% increase in realized prices and a 17% decrease in production volumes[202] Revenue and Pricing - Total revenues for the three months ended September 30, 2024, were $7,364,346, compared to$5,278,459 for the same period in 2023[200] - For the nine months ended September 30, 2024, total revenues were $15,708,240, a decrease of 23$20,322,608 in the same period of 2023[218] - Average realized oil price per barrel for the three months ended September 30, 2024, was $77.13, compared to$74.23 for the same period in 2023[200] - The average realized oil price per barrel for the nine months ended September 30, 2024, was $76.43, slightly down from$76.50 in the same period of 2023[218] - The average sales price for natural gas during the three months ended September 30, 2024, was $1.55 per Mcf, down from$2.83 per Mcf for the same period in 2023[200] - Average NYMEX oil pricing for the nine months ended September 30, 2024, was $78.50 per barrel, which is 7$84.30 for the same period in 2023[195] - The oil price differential to the NYMEX benchmark price during the nine months ended September 30, 2024, was $(2.07) per barrel, compared to$(3.22) per barrel for the same period in 2023[191] - The average NYMEX natural gas pricing for the nine months ended September 30, 2024, was $2.11 per Mcf, which is 14$2.47 per Mcf for the same period in 2023[196] Expenses - Total expenses for the three months ended September 30, 2024, were $5,379,540, compared to$4,660,967 for the same period in 2023[200] - Lease operating expenses decreased to $2,136,732 for the three months ended September 30, 2024, from$2,449,140 in the same period of 2023, while per unit production expenses increased by 4.8%[207] - General and administrative expenses increased significantly to $2,235,263 for the three months ended September 30, 2024, compared to$981,751 for the same period in 2023, primarily due to increased costs associated with being a public company[212] - Lease operating expenses decreased from $7,354,304 in the nine months ended September 30, 2023, to$6,530,431 in the same period of 2024[223] - General and administrative expenses surged to $6,868,749 in the nine months ended September 30, 2024, compared to$3,111,130 in 2023, largely due to increased legal and professional service costs[228] - Production taxes, transportation, and processing costs were $489,524 for the three months ended September 30, 2024, compared to$602,449 for the same period in 2023, maintaining a consistent percentage of 9% of oil and natural gas sales[209] - Production taxes, transportation, and processing costs were $1,326,789 for the nine months ended September 30, 2024, down from$1,774,310 in 2023, maintaining a consistent 9% of oil and natural gas sales[225] Gains and Losses - The company recorded a loss of $816,011 due to the conveyance of a 10$4,209,294 related to the change in fair value of forward purchase agreements for the three months ended September 30, 2024, primarily due to a decline in stock price[213] - A loss of $4,534,766 was recorded for the change in fair value of the forward purchase agreement for the nine months ended September 30, 2024, primarily due to a decline in stock price[229] - The company recorded a gain on derivative contracts of$1,900,662 for the three months ended September 30, 2024, compared to a loss of $1,436,100 for the same period in 2023[204] Cash Flow and Debt - The company reported a net cash provided by operating activities of$3,346,362 for the nine months ended September 30, 2024, down from $8,311,832 in 2023[235] - Net cash used in investing activities was$3,295,667 for the nine months ended September 30, 2024, primarily for development costs, compared to $5,058,869 in 2023[235] - As of September 30, 2024, the company had outstanding debt totaling$24,735,391 under its Senior Secured Term Loan, with a working capital deficit of $38,801,444[233] - The company has a Common Stock Purchase Agreement with a maximum funding limit of$150,000,000, having received $2,464,688 in cash proceeds from the sale of shares under this agreement[234] Derivative Financial Instruments - The company uses derivative financial instruments to mitigate exposure to commodity price risk associated with oil prices[255] - Derivative financial instruments are recorded at fair value on the consolidated balance sheets as either an asset or a liability[255] - The company does not apply hedge accounting for existing derivative financial instruments, recognizing changes in fair value in the consolidated statements of operations[255] - Realized and unrealized gains and losses from derivative financial instruments are reported as a single line item in revenues[255] - Cash flows from derivative contract settlements are reflected in operating activities in the consolidated statements of cash flows[255] - The company is classified as a smaller reporting company and is not required to provide additional market risk disclosures[258]