EON Resources Inc.(EONR) - 2025 Q1 - Quarterly Report

Production and Revenue - Average daily production for Q1 2025 was 749 BOE per day, down from 848 BOE per day in Q1 2024, representing a 12% decrease [145][157]. - Total revenues for Q1 2025 were $4,564,598, an increase of 39$3,283,099 in Q1 2024 [156]. - Average realized oil price per barrel after reflecting settled derivatives was $65.12 in Q1 2025, compared to$62.53 in Q1 2024, indicating an increase of 8.5% [160]. - The average NYMEX oil price for Q1 2025 was $71.84 per barrel, which is 7$77.56 in Q1 2024 [151][152]. - The average NYMEX natural gas price for Q1 2025 was $4.94 per Mcf, a 95$2.67 per Mcf in Q1 2024 [154]. Expenses and Costs - Lease operating expenses decreased to $1,921,321 in Q1 2025 from$2,299,518 in Q1 2024, a reduction of approximately 16.5% [162]. - Depletion, depreciation, and amortization (DD&A) expenses were $97,075 in Q1 2025, significantly lower than$476,074 in Q1 2024, reflecting a decrease of 79.7% [164]. - Production taxes, transportation, and processing costs were $397,216 in Q1 2025, down from$428,280 in Q1 2024, maintaining a consistent 9% of oil and natural gas sales [163]. - General and administrative expenses decreased to $2,084,545 for the three months ended March 31, 2025, down from$2,309,824 in 2024, primarily due to reduced stock-based compensation [166]. - Interest expense decreased to $1,744,246 for the three months ended March 31, 2025, compared to$1,860,582 in 2024, driven by reductions in Senior Secured term loan and Private Notes Payable [167]. Financial Performance - The company recorded a loss on derivative contracts of $85,071 in Q1 2025, compared to a loss of$1,997,247 in Q1 2024, indicating improved management of price risk [159]. - Other revenue related to water services was $117,532 in Q1 2025, down from$130,588 in Q1 2024, reflecting a decrease of 10% [161]. - Accretion expense increased to $335,771 for the three months ended March 31, 2025, from$33,005 in the same period of 2024, with a per BOE increase from $0.43 to$4.98 [165]. - The company recorded a gain on extinguishment of liabilities of $92,294 during the three months ended March 31, 2025, related to the exchange of certain notes payable and warrant liabilities [172]. Cash Flow and Financing - The company reported negative cash flow from operations of$1,827,355 for the three months ended March 31, 2025, compared to positive cash flow of $3,700,686 for the year ended December 31, 2024 [175]. - Net cash used in investing activities for the three months ended March 31, 2025, was$1,117,540, primarily for development costs, compared to $591,003 in 2024 [178]. - Net cash provided by financing activities was$3,047,431 for the three months ended March 31, 2025, mainly from the sale of common stock under the Common Stock Purchase agreement [179]. - The company has a three-year Common Stock Purchase Agreement with a maximum funding limit of $150,000,000 to support operations and production growth [175]. - The company had no off-balance sheet arrangements as of March 31, 2025 [180]. Debt and Liabilities - As of March 31, 2025, the company had outstanding debt totaling$22,563,093 under the Senior Secured Term Loan, $15,000,000 under the Seller Promissory Note, and$2,900,000 of private notes payable, with a working capital deficit of $27,937,557 [174].