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 within the next 24 months, with a target of 2.5 times increase in BOEPD by the end of 2028[18]. - The company has stabilized production at 900 BOEPD after acquisition and is now seeing an upward trend in production levels[18]. - The company operates 550 producing wells, tapping 40% of the reserves, with 85% of production being crude oil[50]. Cost Management - The company aims to reduce workover costs per well to approximately $150,000 from initial estimates of $250,000 through scientific and analytical approaches[19]. - The management team is focused on reducing general and administrative costs in 2025, with expected reductions in insurance costs by $500,000 and professional fees to a lower annualized run rate of $2 million[19]. - Lease operating expenses averaged $765,000 per month in Q1 and decreased to $700,000 for the remainder 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]. Strategic Initiatives - 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]. - The company is actively exploring acquisition opportunities in the Permian Basin, which has seen over $100 billion in recent M&A activity[14]. - EON's operational strategy includes a horizontal drilling program in the San Andres expected to commence in Q1 of 2026[18]. - EON is implementing AI automation to enhance operational efficiencies and reduce costs as new wells are brought into production[19]. Financial Performance - The average oil price per barrel fluctuated, with Q3 reaching $83.80 and Q4 dropping to $67.05, resulting in total revenues of $19,418,919 for the year[52][53]. - Cash-based revenues averaged approximately $5 million per quarter, with total cash revenues of $19,863,367 for the year[53]. - The company has a Reserve Based Loan (RBL) of $28 million with a balance of $23 million, maturing in three years at an interest rate of 15%[61]. - The company has a hedging position of over 70% at $70 for 2024, which is considered responsible[54]. Share Structure - The company has 10 million shares of Class A common stock and 500,000 shares of Class B common stock outstanding, with 16.2 million warrants convertible to 12.5 million Class A shares at an exercise price of $11.50[63]. Market Insights - The Northwest Shelf of the Permian Basin is noted for having the largest recoverable reserves among all unconventional basins in the U.S.[32].
HNR Acquisition p(HNRA) - 2025 Q1 - Quarterly Results