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EON Resources Inc.(EONR) - 2025 Q1 - Quarterly Results
EONREON Resources Inc.(EONR)2025-05-21 12:30

Production and Reserves - EON Resources has 956 million barrels of Original Oil in Place (OOIP) and expects to triple proven reserves in the next 3-4 years[9]. - Production is projected to increase by 1,000 barrels per day over the next 24 months, with a target of 2.5 times increase in BOEPD by the end of 2028[18]. - EON plans to utilize 550 existing wells in the Grayburg-Jackson oil field to recover proven reserves without new drilling, minimizing upfront capital expenditures[20]. - EON's waterflood development in the Seven Rivers zone has stabilized production at approximately 1,000 BOEPD after initial increases to 1,400 BOEPD[18]. - The company operates 550 producing wells, tapping into 40% of the reserves, with 85% of production being crude oil[50]. - The company holds 13,700 gross acres across 23 leases, with a 100% working interest and an average net revenue interest of 74%[48]. Cost Management - The company aims to reduce workover costs per well to approximately 150,000fromoriginalestimatesof150,000 from original estimates of 250,000 through scientific and analytical approaches[19]. - EON anticipates a reduction in general and administrative costs in 2025 compared to 2024, including a 500,000reductionininsurancecosts[19].−Leaseoperatingexpensesaveraged500,000 reduction in insurance costs[19]. - Lease operating expenses averaged 765,000 per month in Q1 and decreased to 700,000fortherestof2024[52].−Generalandadministrativecostsincluded700,000 for the rest of 2024[52]. - General and administrative costs included 2.8 million in equity-based costs, primarily related to employee equity instruments and acquisition-related fees[57]. Financial Performance - Total revenues for the year amounted to 19,418,919,withcash−basedrevenuesaveragingapproximately19,418,919, with cash-based revenues averaging approximately 5 million per quarter[52][53]. - The average oil price per barrel fluctuated, with Q3 averaging 83.80andQ4droppingto83.80 and Q4 dropping to 67.05, impacting overall revenues[53]. - The company has a Reserve Based Loan (RBL) of 28millionwithacurrentbalanceof28 million with a current balance of 23 million, maturing in three years at a 15% interest rate[61]. - The company has hedged over 70% of its production at 70orhigherfor2025,mitigatingrisksassociatedwithoilpricefluctuations[54].StrategicInitiatives−ThecompanyisimplementingAIautomationtoenhanceoperationalefficienciesandreducecostsasnewwellsarebroughtintoproduction[19].−EONisactivelyexploringacquisitionopportunitiesinthePermianBasin,whichhasseenover70 or higher for 2025, mitigating risks associated with oil price fluctuations[54]. Strategic Initiatives - The company is implementing AI automation to enhance operational efficiencies and reduce costs as new wells are brought into production[19]. - EON is actively exploring acquisition opportunities in the Permian Basin, which has seen over 100 billion in recent M&A activity[14]. - The Northwest Shelf of the Permian Basin is noted for having the largest recoverable reserves among unconventional basins in the U.S.[32]. - The company is planning a horizontal drilling program in the San Andres, expected to commence in Q1 of 2026[18].