Production and Revenue - For the year ended December 31, 2024, the average daily production was 798 BOE per day, a decrease of 22% from 1,022 BOE per day in 2023[333]. - Oil production for the year ended December 31, 2024, was 256 MBbl, down 27% from 349 MBbl in 2023, while natural gas production decreased from 355 MMcf in 2023 to 213 MMcf in 2024[347]. - Total revenues for the year ended December 31, 2024, were 24,238,482 in 2023, primarily due to a 28% decrease in production volumes[346]. Pricing and Costs - The average realized oil price per barrel after reflecting settled derivatives was 69.06 for 2023, reflecting a 6% increase[340]. - The company's oil price differential to the NYMEX benchmark was (4.95) per barrel in 2023[335]. - Lease operating expenses for the year ended December 31, 2024, were 29.59 due to higher maintenance and labor costs[351]. - Production taxes, transportation, and processing costs were 850,374 for the year ended December 31, 2024, compared to a gain of 392,765 in 2023[349]. - Depletion, depreciation and amortization (DD&A) increased to 2,407,098 for the year ended December 31, 2024, from 1,849,876 in 2023, with a DD&A rate of 8.27 per BOE, up 48% from 144,988 in 2024 from 0.50 compared to 10,381,095 in 2024 from 2,778,991[355]. - Interest expense increased significantly to 1,043,312 in the Successor period of 2023, primarily due to the Senior Secured Term Loan[357]. - The company reported a positive cash flow from operations of 484,474 in the Successor period of 2023[368]. Debt and Liabilities - As of December 31, 2024, the company had outstanding debt of 31,213,674[365]. - The company recognized a gain on extinguishment of liabilities of 1,720,000 related to the settlement of royalties payable[360][361]. - The change in fair value of warrant liabilities resulted in a loss of 187,704 in the Successor period of 2023[362]. Investments and Equity - Net cash used in investing activities for 2024 was primarily due to the development of crude oil and gas properties, with significant cash outflows in the previous year for compliance upgrades[370]. - The company has a three-year equity line with a maximum funding limit of 6,992,906 in cash proceeds from the sale of 7,000,000 shares under this agreement[367]. Risk Management - The Company uses derivative financial instruments to mitigate commodity price risk, with fair value changes recognized in consolidated statements of operations[386]. - Realized and unrealized gains and losses from derivative financial instruments are reported as a component of revenues in the consolidated statements of operations[386]. - Cash flows from derivative contract settlements are reflected in operating activities in the consolidated statements of cash flows[386]. - The Company records liabilities for ongoing litigation and environmental remediation, with actual costs potentially varying from estimates due to legal interpretations and regulatory changes[384]. - The fair value of the Forward Purchase Agreement liability was estimated using a Monte-Carlo Simulation, considering future stock price simulations and contractual terms[385]. - The Company is classified as a smaller reporting company and is not required to provide additional market risk disclosures[388].
EON Resources Inc.(EONR) - 2024 Q4 - Annual Report