
EON Resources Inc. Announces Results for the First Quarter of 2025
Result in Improved Bottom Line and Income from Operations
HOUSTON, TEXAS / / May 19, 2025 / EON Resources Inc. (NYSE American:EONR) ("EON" or the "Company") is an independent upstream energy company with oil and gas properties in the Permian Basin. Today, the Company reports revenue and earnings for the first quarter of 2025.
The management and field teams have made huge strides to upgrade the operational condition of the field; stabilize production rates which had declined by the time the Company closed on the acquisition of LH Operating, LLC (the "Acquisition"); and resolve Acquisition related issues. The Company believes it is now in a position for growth with a bright future ahead.
Key actions since the Acquisition that position the Company for a profitable future:
The Company entered into an agreement (the "Seller Agreement") with Pogo Royalty, LLC ("Seller") that when closed will result in the (i) restructure of the Company's balance sheet eliminating approximately $40 million in debt and obligations, and (ii) the purchase of a 10% Overriding Royalty Interest in all of the Company's oil and gas properties. The closing with the Seller is expected to occur in June 2025. Consideration to Seller is agreed to be $22 million in cash and the issuance of 3 million shares of the Company's Class A common stock. The summary of the Agreement with Seller can be found in the Seller Agreement Press Release published on the Company's website.
EON signed an expanded non-binding Letter of Intent ("LOI") with Enstream Capital Management, LLC ("Enstream") concerning a volumetric funding arrangement ("VMA") and revenue sharing for $52.8 million. The funds will be used for the consideration to Seller under the Seller Agreement, field development, and retirement of senior debt. A summary of the Enstream LOI Press Release appears on the Company's website. We expect to close on this transaction in June 2025.
As announced in its Horizontal Drilling Program Press Release, the Company conducted a study for horizontal drilling in the lower intervals of the San Andres formation on the Company's oil and gas properties which could potentially yield up to 20 million untapped barrels of oil. The study has identified 50 well locations to be drilled over several years commencing in Q1 of 2026. Each well will cost approximately $3.7 million to drill and is expected to produce 300 to 400 barrels of oil per day ("BOPD"). The Company is actively in discussions with potential drilling partners to share in the working interest ownership, costs and the related revenues.
The focus on the field over the past year has resulted in infrastructure enhancements nearing completion and stabilizing production. The Company's engineers have been using technology and science to analyze well logs and prior results in efforts at increasing production and identification of the best pay in the Seven Rivers formation. The Company's team has also rolled out the use of an AI application for our well pumpers to improve efficiencies and increase production as described in the AI Implementation Press Release located on the Company's website.
The Company continues to make improvements to its balance sheet. In addition to the Seller Agreement, the efforts have included (i) reduction of the senior debt from an original $28 million to approximately $22 million in the principal balance with an escrow reserve of $2.6 million; (ii) termination of a Forward Purchase Agreement ("FPA") in Q4 of 2024 and removal of related obligations from the balance sheet as of the end of 2024; and (iii) conversion of short-term private loans and warrant liabilities to long-term Convertible Notes (into Class A Common Stock of the Company).
Financial highlights for the quarter ended March 31, 2025:
Revenues:
Total revenues for the quarter were $4.6 million. Up $850K from Q4 of 2024 comprised of: $225K due to higher oil prices in Q1; lower negative non-cash hedging impact in Q1 versus Q4 of $575K; and $50K increase in generated gas revenues.
Our current oil production is 70% hedged at a price of $70.00 per barrel or greater through the end of CY 2025.
The gas revenues increase was due to the higher market price for gas in Q1 than Q4.
Field results:
The Company had income from operations of $1.8 million for the first quarter.
The lease operating expenses ("LOE") dropped to $683K per month for the first quarter from the $700K per month runrate for most of 2024.
The capital expenditures for the first quarter were $600K.
General and administrative ("G&A") costs:
Salaries and fees decreased in Q1 by $225K, and should remain lower for 2025.
While lower than Q4 and Q3 of 2024, the Q1 professional fees for legal, audit and consulting services primarily reflect year end reporting and closing efforts, and certain costs stemming from various trailing legal matters.
Insurance costs are down $75K in Q1 due to lower renewal rates for 2025.
Other income and expense:
Interest expense of $1.7 million in Q1 of 2025 is $165K lower than Q4 of 2024 due to note conversions in our efforts to clean-up the balance sheet, and the reduction of the principal balance of the Company's senior reserve-based loan.
The net $500K of non-cash impacts primarily include $300K for the amortization of financing costs, and non-cash impacts on certain liabilities driven by stock prices.
"EON is continuing to take action to reduce costs amid a challenging operating environment. EON's actions to improve its operating costs structure through transformation producing oil plans are expected to aid our reaching profitability in 2025," said Dante Caravaggio, President and CEO. "The team has made tremendous progress in upgrading our infrastructure and modernizing the field that has been restricting production. We continue to see the potential of the Seven Rivers waterflood as the field team has commenced the fracing of several wells with good results, and we have re-started acid treatments with an improved formula, which shows promising results. We see as much, or more, potential from horizontal drilling in the San Andres, which we expect to commence in Q1 of 2026. The permitting of such wells and sourcing of a horizontal drilling partner for the San Andres development is underway now."
"Behind the scenes, we had a team using technology and science to analyze well logs and prior results to assist in increasing production and identifying the best pay in the Seven Rivers. This team also produced a study for a horizontal drilling program in the San Andres interval, which has significant potential for 2026 and beyond," said Jesse Allen, Vice President of Operations. "Our infrastructure improvements to date are resulting in lower LOE costs in the first quarter, and our analytical work is expected to lower the cost of workovers."
"As we announced in our press releases dated February 11, 2025, and March 25, 2025, we are renegotiating our debt structure to reduce interest expense and streamline our corporate cost structure which will have a positive impact on profitability in 2025 and beyond," said Mitchell B. Trotter, CFO. "The management team has made good progress and continues to focus on actions to improve and make the balance sheet stronger."
About the Oil Field Property
In November 2023, the Company acquired LH Operating, LLC ("LHO") including 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, now a wholly owned subsidiary of the Company, 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 2023 reserve report from our third-party engineer, William H. Cobb and Associates, Inc. ("Cobb"), reflects LHO to have proven reserves of approximately 15.4 million barrels of oil and 3.5 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 956,000,000 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. With proven oil reserves of over 15 million barrels, combined with the potential 34 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 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/
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, PresidentPORTER, LEVAY & ROSE, INC.mike@plrinvest.com
SOURCE: EON Resources Inc.
View the original press release on ACCESS Newswire
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
31 minutes ago
- Yahoo
OffSec and Deloitte Collaborate to Strengthen Asia's Cyber Defences Through Workforce Development
NEW YORK, Aug. 21, 2025 /PRNewswire/ -- OffSec Services Ltd ("OffSec"), a leading global provider of cybersecurity training and certifications, is pleased to announce a strategic collaboration with Deloitte. This partnership will deliver advanced, real-world cybersecurity training programs across Asia, directly addressing the rising cyber threats and the ongoing shortage of skilled cybersecurity professionals. The collaboration unites OffSec's reputation for developing cybersecurity professionals with a focus on technical skill and adversary mindset, with Deloitte's enterprise cybersecurity expertise and regional insights. Together, OffSec and Deloitte aim to provide a high-impact training experience that equips security practitioners, enterprise teams, and aspiring professionals with the offensive and defensive capabilities needed to tackle today's most urgent security challenges. "Cybersecurity today demands more than awareness and a modern tech stack — it requires hands-on capability, continuous upskilling, and readiness for real-world, real-time threats. Through this exciting strategic partnership, OffSec brings our industry-leading simulation and skills development, combined with Deloitte's deep client, industry, and regulatory insight. Together, we're enabling more effective large-scale cyber transformations by building resilient, enterprise-grade security teams prepared to meet the evolving threat landscape." said Matt Collins, VP of APAC, OffSec. The training programmes will cover a wide range of advanced topics, including penetration testing, ethical hacking, exploit development, application and infrastructure security, and incident response. Courses will be delivered by certified instructors and conducted through OffSec's proven hands-on lab environments, while also incorporating Deloitte's business-contextualised scenarios and case studies. This ensures that participants not only gain technical proficiency but are also able to apply that knowledge in real-world operational settings. For organisations facing growing regulatory scrutiny and increasingly sophisticated attacks, the collaboration offers a scalable solution to upskilling their cybersecurity teams with globally respected certifications and battle-tested techniques. The initial rollout will begin in Singapore, with future expansion planned across key Asia Pacific markets. "As the threat environment is becoming increasingly complex and the talent gap is growing wider, this collaboration with OffSec addresses both challenges by providing practical, career-relevant training that builds technical depth while helping organisations establish a culture of security that is grounded in operational capability," said Lim Kim Hwee, Executive Director, Deloitte Learning Solutions. OffSec and Deloitte's shared mission through this collaborative effort is to elevate the cybersecurity profession across the region by making expert-level training more accessible, relevant, and aligned with the evolving needs of enterprises and regulators. With this collaboration, the two organisations are setting a new standard for how cybersecurity talent development should be approached: technically rigorous, business-aware, and regionally informed. About OffSec Services LtdOffSec is the leading provider of continuous professional and workforce development, training, and education for cybersecurity practitioners. OffSec's distinct pedagogy and practical, hands-on learning help organizations fill the infosec talent gap by training their teams on today's most critical skills. With the OffSec Learning Library featuring 7,000 hours of content, including over 1,800 videos, and 4,200+ labs. OffSec demonstrates its commitment to empowering individuals and organizations to fight cyber threats with indispensable cybersecurity skills and resources. OffSec also funds and maintains Kali Linux, the leading operating system for penetration testing, ethical hacking, and network security assessments. For more information, visit and follow us on X and LinkedIn. For media inquiries, please contact:Contact Person: Damian GohEmail: | View original content: SOURCE OffSec Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data


Bloomberg
33 minutes ago
- Bloomberg
Fed's Cook Defies Trump Pressure, Possible UK Home Tax, Vape Ban Failings
Your morning briefing, the business news you need in just 15 minutes. On today's podcast: (1) Federal Reserve Governor Lisa Cook signaled her intention to remain at the central bank, defying calls for her resignation by President Donald Trump over allegations of mortgage fraud. (2) Most Federal Reserve officials highlighted inflation risks as outweighing concerns over the labor market at their meeting last month, as tariffs fueled a growing divide within the central bank's rate-setting committee. (3) The NASDAQ declined for the second straight day yesterday, with MAG 7 stocks on their longest losing streak since April. Futures are currently pointing higher for the tech-heavy index, but this week's dip has raised questions if the rally in the sector has gone too far, too fast. (4) UK Chancellor of the Exchequer Rachel Reeves is considering taxing high-value family homes at the point of sale as she looks for ways to plug a multibillion-pound hole in the upcoming budget. (5) European leaders are discussing a security guarantee for Ukraine that would commit Kyiv's allies to decide within 24 hours whether to provide military support to the country if it's again attacked by Russia. (6) A UK ban on disposable vapes is failing to stop users treating refillable devices as if they are still throwaway products, new research shows.
Yahoo
36 minutes ago
- Yahoo
What not to do before closing on a house
Key takeaways Between applying for a mortgage and closing on your house, aim to keep your personal finances and employment status as steady as possible, and avoid making any major purchases. Expect your lender to look at your bank account, credit and debts again shortly before closing to verify that no major changes to your financial picture have occurred. It's important to respond to any requests for additional information quickly to help your lender process your application and meet your closing date. When you're in the process of getting a mortgage and closing on a house, you'll want to avoid making any major changes to your finances. That's because doing so could impact your credit score and your chances of loan approval, potentially derailing your home closing. Here are some tips to help you avoid a closing mishap. 7 common mistakes that prevent closing on a mortgage 1. Making a big purchase, including furniture If you're about to close on a house, you might've heard that you should limit your spending and avoid buying expensive items. But what is considered a big purchase during underwriting? A new car or boat would certainly raise red flags with lenders. Even furniture or appliances — basically anything you might pay for in installments — is best to delay until after you finalize your mortgage. Depending on your credit score and history, these transactions can lower your score, which can impact the interest rate and loan amount you receive. This could result in a higher interest rate for the next 15 or 30 years, or even having to come up with a larger down payment. How soon after closing can I buy furniture? Once you've gone through all the closing day formalities, feel free to pick up that sofa or dining room set you've had your eye on. 2. Opening a new line of credit It's not just big purchases that can alter your credit score. Opening a new credit card or closing an existing one can affect your standing, too. Before your mortgage closing, lenders assess the credit risk they are taking on and evaluate that risk for each loan applicant. It's especially important to protect your credit score if it's low enough that you're on the margins of qualifying for a mortgage. Any changes in that case can work against you and might make it impossible to finalize the loan. 3. Switching or quitting your job Another major mistake to make when you're about to close on a home purchase is changing jobs. This is because mortgage lenders examine your employment history for consistency. Plus, providing extra employment documentation to a lender can delay the closing. Keep in mind, too, that if you're getting a mortgage while on maternity leave, you might need to take a few extra steps to prove your employment to your lender. If you have any control over your job situation, it's best to stay put until after you close. A borrower who quit their current job might have to wait a couple of weeks before they can attempt to close again. 4. Disrupting the timeline Closing on a mortgage is time-sensitive. Even if you've locked in your rate, that only guarantees things for so long. It's important to keep on top of the schedule and make sure to submit all of your paperwork on time. If the lender reaches out and requests additional information or documentation, respond quickly to keep things moving forward. Otherwise, you risk losing the terms you agreed to and could have to restart the process. 5. Taking out a personal loan If you get a personal loan or co-sign a loan for someone else, you could also face hiccups before closing day. In some cases, the lender might turn you down for a loan altogether, even if you were previously preapproved. It all depends on how your credit score and debt-to-income (DTI) ratio is impacted. A good DTI, in particular, is a critical factor in mortgage approvals. Lenders consider two types of DTIs: Front-end DTI: Your monthly mortgage payment, including principal, interest, taxes, insurance and association fees divided by your monthly income Back-end DTI: The sum of all your monthly debt payments divided by your monthly income Depending on the amount of the loan payment, your back-end DTI could increase to a percentage that the lender is unwilling to accept. If your credit score is right above the minimum to qualify for a mortgage, a hard inquiry from applying for a personal loan could drop it enough to make you ineligible. Either way, there's a chance you'll be forced to walk away from the deal. 6. Forgetting to pay bills Buying a home can be stressful and all-consuming, which can lead to slip-ups in other areas of your finances. If you miss a bill payment, it can appear on your credit history and lower your score. Note that a late payment is not the same as a missed payment. A late payment is any payment made after the due date but before the next billing cycle. A missed payment is one that's typically over 30 days late. Many bills come with a grace period where you can make the payment late without any fees or negative credit consequences. However, if you miss the payment and it's reported, it could have a significant negative impact on your credit score. To avoid missing a payment, consider enrolling all of your bills in autopay. If you'd rather not do that, put your bill due dates on your calendar as reminders. By paying all of your bills on time, you can avoid mistakes that could affect whether you get a mortgage or how good of a mortgage offer you get. 7. Making a large deposit More money in your bank account seems like a good thing, right? With a larger balance, you can more easily cover your down payment and closing costs. However, a sizable deposit — anything that isn't part of your regular earnings from your job — can trigger the lender to reevaluate your financial profile. Why? Because if this large deposit is a result of you taking out another loan or earning more income than you initially reported, your DTI ratio will change. If you've received gift funds for the down payment, you'll need to provide the lender with a gift letter explaining the deposit. Aim to make any large deposits at least two months before applying for a mortgage to allow the funds to 'season.' What to expect before closing on your home In the days leading up to the closing, your lender will start preparing the closing disclosure. You'll receive this document at least three business days before you close. It provides a summary of the loan, including: The home's purchase price All origination fees to be paid by the buyer Interest rate on the loan Closing costs The closing disclosure will outline the exact amount of your closing costs. Plan on bringing a cashier's check, which is a check that shows the funds are guaranteed by a bank or a credit union, to cover these costs. Even if you're buying a brand-new house, you should do another walkthrough to ensure it's still in good condition or that any requested changes or repairs were made. The buyer's lender will talk with the real estate agent so they can plan a closing time for all the parties. 'Once you go to the title company to execute all the required documents in the presence of a notary public, and the seller has executed their portion of the documents as well, the escrow officer will forward all the closing documents to the buyer's lender,' says Patricia Martinez-Alvidrez, senior escrow officer at Clear Title in El Paso, Texas. 'Once the buyer's lender verifies everything was executed and initialed correctly, they will authorize the title company to finalize the transaction and disburse funds once they have the wire transfer from the lender. That's when the buyer can obtain his/her keys.' Learn more: What are the steps to close on a house? Closing process FAQ What do mortgage lenders check before closing? Because the home purchase process takes time, mortgage lenders will reassess a few key criteria before officially closing on a loan. Some things a lender checks before closing include your credit score, income and debts. Lenders are primarily looking to ensure nothing has changed since you initially applied for the mortgage. Can I use my credit card before closing on a house? While you're waiting to close on a home, you can still use your credit card, but it's best to only use it for small purchases and pay off the balance in full. Do not make large purchases you cannot afford to pay off that'll leave you carrying a significant balance each month. Amassing debt while you're waiting to close on a home can impact your DTI ratio, which could impact how much you're allowed to borrow. You might even get turned down for the mortgage at the last minute. How can I prepare before getting a mortgage to prevent common mistakes? The best way to avoid typical mistakes involved in getting a mortgage is to get preapproved, which will give you a good idea of what a lender will formally lend you after fully reviewing your finances. After you're preapproved — which will include your down payment amount and how much you can borrow — don't make any major changes to your lifestyle. That means no big purchases or significant shifts such as switching jobs or opening a new credit card. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data