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EON Resources Inc.(EONR) - 2024 Q3 - Quarterly Results
EONREON Resources Inc.(EONR)2024-11-18 21:15

Production and Reserves - EON Resources Inc. has 956 million barrels of Original Oil in Place (OOIP) and expects to triple proven reserves in the next 3-4 years[5] - Production is projected to increase by 1,000 barrels per day (bbl/day) over the next 24 months[5] - EON has identified an additional 34 million barrels of oil in unperforated legacy zones, with plans for infield drilling to optimize recovery[15] - The Grayburg-Jackson oil field has 550 existing wells that can be utilized to recover proven reserves without new drilling, minimizing upfront capital expenditures[17] - The company expects full waterflood development to raise gross plateau oil rates to approximately 3,700 BOPD for PDP + PDNP + PUD[43] - The company operates 550 producing wells and has 95 active patterns, tapping into 40% of the reserves[40] - The total Original Oil in Place (OOIP) for the 158 patterns is estimated at 50 million barrels of oil (MMBO)[29] Financial Performance - The company reported revenues of 15,708,239year−to−date,withQ3revenuesreaching15,708,239 year-to-date, with Q3 revenues reaching 7,364,346, marking a significant increase from previous quarters[47] - The financial results were impacted by non-cash expenses, with net income for Q3 reported at (3,841,171)[47]−Netlossfortheyear−to−date(YTD)was(3,841,171)[47] - Net loss for the year-to-date (YTD) was 9,172,468, with Q3 net loss at 3,841,171[56]−Totalexpensesfortheyear−to−date(YTD)were3,841,171[56] - Total expenses for the year-to-date (YTD) were 16,316,136, with Q3 expenses at 5,379,540[56]−Thecompanyreportedaone−timegainof5,379,540[56] - The company reported a one-time gain of 1.7 million from the extinguishment of liabilities in Q2[56] Operational Efficiency - The company aims to reduce workover costs per well from 250,000toapproximately250,000 to approximately 150,000[16] - The company is implementing an AI application for operators to improve efficiencies and increase production[15] - The company is recycling water from its field and an offset producer to minimize operational costs and avoid using fresh water sources[17] - The company aims to reduce lifting costs as part of its operational excellence strategy[61] - General and administrative costs decreased by 30,000permonthinQ3[47]StrategicInitiatives−EON′sacquisitionstrategyfocusesonbuildingadiversifiedportfoliooflong−lifeoilandnaturalgaspropertiesinNorthAmerica[18]−ThecompanyhasaReserveBasedLoan(RBL)balanceof30,000 per month in Q3[47] Strategic Initiatives - EON's acquisition strategy focuses on building a diversified portfolio of long-life oil and natural gas properties in North America[18] - The company has a Reserve Based Loan (RBL) balance of 25.1 million with a 15% interest rate and a five-year amortization schedule[59] - There are 14.9 million warrants outstanding convertible to 11.2 million Class A shares at an exercise price of 11.50[58]−Thecompanyhas11.50[58] - The company has 15 million of preferred units at a subsidiary level, which will convert to common stock after two years[58] Market Context - The Permian Basin contributes 62% of the total oil output in the U.S. and is expected to remain resource-rich until approximately 2040[22]