EON Resources Inc. Announces Results for the Second Quarter of 2025
Positioned to Retire Senior Debt and Seller Settlement: Favorable funding arrangements expected to close in September creating $40 million in shareholder value.
Advancing Horizontal Drilling Program: EON expects to drill up to 90 wells over a three to four year program potentially increasing reserves by up to $100 million in value.
Acquired South Justis Field in June: Adds over 100 BOPD with potential of an additional 250 BOPD over the next year.
Grayburg-Jackson Field Positioned to Expand Seven Rivers Zone Production: The infrastructure enhancements are nearing completion and three well service rigs are on-site to return idle wells to production and prepare for well recompletions.
Financial highlights for the quarter ended June 30, 2025:
'During the quarter, we continued to execute on our operational strategy in the Permian Basin while navigating commodity price volatility,' said Dante Caravaggio, President and CEO, EON. 'Our focus remains on cost discipline, increasing production levels, and leveraging our hedge positions to manage risk, as well as integrating our acquisition of the South Justis Field.'
'On the Grayburg-Jackson Field, we continued our program in the second quarter to perform larger acid treatment using proprietary chemicals to clean up wellbore damage and increase long-term production' said Jesse Allen, Vice President of Operations, EON. 'The result to date is an overall sustained production increase of 40 BOPD from 13 wells. These early results indicate we are undertaking the proper development to enhance our long-term production growth. The Company also contracted a second oil rig in June to help stabilize and increase production, and we expect to continue this program through August 2025 and complete down-hole failure repairs on 41 additional wells.'
'Regarding the recent acquisition of the South Justis Field, when we purchased the field, the production was approximately 108 barrels of oil per day,' Mr. Allen added. 'Due to safety concerns we reduced production to 88 barrels of oil per day, but this has been remedied and we are now producing 120 barrels of oil. We have a well service rig at the field to re-activate wells, and we expect production at the South Justis Field to continue to increase.'
August 19, 2025 earnings call information
EON will host a conference call on Tuesday, August 19, 2025, at 2:30 p.m. Eastern Time to review its second quarter 2025 financial results. Dante Caravaggio will chair the call; Mitchell B. Trotter Jesse Allen will also speak with shareholders and answer questions.
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About EON Resources Inc.
EON is an independent upstream energy company focused on maximizing total returns to its shareholders through the development of onshore oil and natural gas properties in the United States. EON's long-term goal is to maximize total shareholder value from a diversified portfolio of long-life oil and natural gas properties built through acquisition and through selective development, production enhancement and other exploitation efforts on its oil and natural gas properties.
EON's Class A Common Stock trades on the NYSE American Stock Exchange (NYSE American:EONR) and the Company's public warrants trade on the NYSE American Stock Exchange (NYSE American:EONR WS). For more information on EON, please visit the Company's website: https://eon-r.com/.
About the Grayburg-Jackson Oil Field Property
LH Operating, LLC ('LHO'), a wholly owned subsidiary of EON, operates its holdings in New Mexico of oil and gas waterflood production comprising 13,700 contiguous leasehold acres, 342 producing wells and 207 injection wells situated on 20 federal and 3 state leases in the Grayburg-Jackson Oil Field. The Grayburg-Jackson Oil Field is located on the Northwest Shelf of the prolific Permian Basin in Eddy County, New Mexico.
Leasehold rights of LHO include the Seven Rivers, Queen, Grayburg and San Andres intervals that range from as shallow as 1,500 feet to 4,000 feet in depth. The December 2024 reserve report from our third-party engineer, Haas and Cobb Petroleum Consultants, LLC ('Haas & Cobb' or 'Cobb'), reflects LHO to have proven reserves of approximately 14.0 million barrels of oil and 2.8 billion cubic feet of natural gas. The mapped original-oil-in-place ('OOIP') in the LHO leasehold is approximately 876 million barrels of oil in the Grayburg and San Andres intervals and 80 million barrels in the Seven Rivers interval for a total OOIP of approximately 956 million barrels of oil.
Our primary production is currently from the Seven Rivers zone. In addition to proven reserves, the Company believes it may access an additional 34 million barrels of oil by adding perforations in the Grayburg and San Andres formations, plus another 40 million barrels from the horizontal drilling program in the San Andres. With proven oil reserves of over 15 million barrels, combined with the potential 74 million additional barrels from the Grayburg and San Andres zones, LHO should produce oil and a revenue stream for more than two decades with a low decline rate.
About the South Justis Field Property
The South Justis Field ('SJF') is a carbonate reservoir, similar to the rest of the Permian. The SJF was first developed in the 1960's and had an initial production in the 6,000 BOPD range. The waterflood implemented at a cost of $40 million dollars in the 1990's by a major oil company had mediocre performance due to poor connectivity between wells, which indicates an opportunity for horizontal infill well drilling. The subsequent owners of the SJF had higher priorities, which led to an increase in idle wells with downhole failures, thus allowing the production to drop dramatically. The Seller acquired the field and has reactivated several wells with good results increasing the production of oil. This indicates that there are a significant number of wells that can be reactivated to increase production on existing wells.
The SJF comprises of 5,360 contiguous acres with 208 combined producing and injection wells with well spacing of 50 acres. The field is located in the Central Basin of the prolific Permian Basin in Lea County, New Mexico located approximately 100 miles from EON's Grayburg-Jackson Oil Field property. The producing formations include the Glorietta, Blinebry, Tubb, Drinkard and Fusselman intervals that range from 5,000 feet to 7,000 feet in depth. The original-oil-in-place ('OOIP') is approximately 207 million barrels of oil.
Forward-Looking Statements
This press release includes 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties that could cause actual results to differ materially from what is expected. Words such as 'expects,' 'believes,' 'anticipates,' 'intends,' 'estimates,' 'seeks,' 'may,' 'might,' 'plan,' 'possible,' 'should' and variations and similar words and expressions are intended to identify such forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Such forward-looking statements relate to future events or future results, based on currently available information and reflect the Company's management's current beliefs. A number of factors could cause actual events or results to differ materially from the events and results discussed in the forward-looking statements. Important factors - including the availability of funds, the results of financing efforts and the risks relating to our business - that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time on EDGAR (see www.edgar-online.com) and with the Securities and Exchange Commission (see www.sec.gov). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as expressly required by applicable securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
Investor Relations
Michael J. Porter, President
PORTER, LEVAY & ROSE, INC.
[email protected]
SOURCE: EON Resources Inc.
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