Production and Sales - Average daily production for the year ended December 31, 2023, was 1,022 BOE per day, a decrease of 21% from 1,296 BOE per day in 2022[397] - Oil production decreased from 397 MBbl in 2022 to 349 MBbl in 2023, while natural gas production fell from 457 MMcf to 355 MMcf[416] - Oil and natural gas sales decreased by 34% for the year ended December 31, 2023, driven by a 24% decrease in realized prices and a 21% decrease in production volumes[415] Revenue and Pricing - Total revenues for the year ended December 31, 2023, were $2,975,661, a decrease of 88% compared to $24,238,482 for the Predecessor period in 2023[414] - The average NYMEX oil price for the year ended December 31, 2023, was $77.64 per barrel, which is 18% lower than the average price of $94.79 per barrel in 2022[408] - Realized oil price per barrel after reflecting settled derivatives was $69.06 for the year ended December 31, 2023, compared to $78.09 for the year ended December 31, 2022[408] - Average sales price for crude oil was $65.11 per barrel for the Successor period, down from $73.58 per barrel for the Predecessor period[414] - The average realized oil price per barrel decreased from $78.09 in 2022 to $73.82 in 2023, with realized losses on commodity derivatives amounting to $1,266,277 in 2023 compared to $6,978,790 in 2022[418] - Other revenue increased to $571,189 in 2023 from $255,952 in 2022, attributed to a new water services contract[420] Expenses - Lease operating expenses rose by 20.5% from $8,418,739 in 2022 to $10,146,119 in 2023, with per BOE costs increasing 53% from $17.79 to $27.20[421] - General and administrative expenses surged to $7,253,384 in 2023 from $2,953,202 in 2022, primarily due to increased legal and professional service costs[426] - Production taxes, transportation, and processing expenses for the Successor period were $226,062, compared to $2,117,800 for the Predecessor period[414] Financial Position - As of December 31, 2023, the company had outstanding debt totaling $46,150,203, with a working capital deficit of $13,300,601[436] - The company reported a net cash flow from operations of $8,675,037 for the year ended December 31, 2023, on a pro forma basis[437] Asset Management - The conveyance of a 10% overriding royalty interest to Pogo Royalty resulted in a loss of $816,011 and decreased the reserve balance and current net production volumes[411] - The loss on asset sales was $816,011 in 2023, attributed to the conveyance of a 10% overriding royalty interest[433] - The company recorded a gain of $3,268,581 related to the change in fair value of the forward purchase agreement for the Successor period[431] - Acquisition costs during the Successor period amounted to $9,999,860, including $7,854,660 related to the Forward Purchase Agreement[427] Reserves and Impairment - Proved reserve estimates as of December 31, 2023, are subject to significant assumptions and may differ from actual future results[447] - The standardized measure of proved reserves is based on a twelve-month average of commodity prices, which may not reflect current market value[449] - A decline in proved reserves could increase depletion expense, negatively impacting future net income[450] - Management assesses impairment of proved properties based on estimated future recoverable proved reserves and commodity price outlooks[451] Future Obligations and Risk Management - The company has significant obligations for asset retirement, primarily related to plugging and abandoning wells, with future costs being difficult to estimate[452] - The fair value of the Forward Purchase Agreement liability was estimated using a Monte-Carlo Simulation[456] - The company uses derivative financial instruments to mitigate commodity price risk, with changes in fair value recognized in consolidated statements of operations[457]
EON Resources Inc.(EONR) - 2023 Q4 - Annual Report