EON Resources Inc.

EON Resources, Inc.

Company profile

• Formerly HNR Acquisition Corp.; name changed to EON Resources, Inc. effective September 17, 2024.
• Structure: SPAC converted to an operating oil and gas company focused on acquiring, developing, exploring, producing and divesting oil and natural gas properties.
• Primary geographic focus: Permian Basin, with core assets on the Northwest Shelf in New Mexico (Grayburg-Jackson Field and South Justis Field).

Business model and operations

• Operates 100% of net acreage on its primary leaseholds through subsidiary LH Operating, LLC, and is the operator of record on those leases.
• Core activities:
  • Acquisition and development of oil and gas properties.
  • Production from owned working interests.
  • Waterflood and enhanced oil recovery techniques to maintain reservoir pressure (e.g., Seven Rivers waterflood pilot and related perforation workovers).
  • Strategic divestitures, asset acquisitions and farmouts to grow reserves and production.
• Workforce: 20 full-time employees as of December 31, 2025 (14 field staff, 6 corporate staff). Contractors engaged on an as-needed basis.

Key properties

Grayburg-Jackson Field (GJF) — Eddy County, NM

• Leasehold: ~13,700 gross acres.
• Working interest: 100% of working interest; weighted average net revenue interest ~69%; gross royalty 30%.
• Operator: LH Operating, LLC.
• Well and facility status: 342 net productive wells (out of 361 gross), 472 producing wells total, 207 water injectors, 1 water source well.
• Production: average daily production ~734 BOE/d in 2025; ~798 BOE/d in 2024.
• Reserves (as of 12/31/2025):
  • Proved reserves total: 2,780 MBOE (2,685 MBbl crude oil; 569 MMcf natural gas; 0 NGLs).
  • Proved Developed Producing (PDP): 2,129 MBOE.
  • Proved Developed Non-Producing (PDNP): 651 MBOE.
  • Proved Undeveloped (PUD): 0 MBOE.
  • Proved reserves breakdown: ~75% PDP, 25% PDNP.
  • Probable reserves: 9,211 MBOE (8,986 MBbl oil; 1,347 MMcf gas).

South Justis Field (SJF) — Lea County, NM

• Leasehold: ~5,360 gross acres (developed).
• Working interest: ~94% working interest; weighted average net royalty interest ~18%.
• Well status: 208 wells total (producing and water injection); 19 active oil-producing wells.

Recent major transactions

• MIPA closing (November 15, 2023): SPAC contributed assets to OpCo; SPAC subsidiary contributed cash; target interests (including Pogo Resources, LLC) were transferred for cash and OpCo units. Public SPAC shareholders redeemed ~3,323,707 shares for approximately $49.36 million; trust balance after redemptions was approximately $12.98 million.
• PSTE agreement and closing (September 9, 2025): acquired a 10% overriding royalty interest in existing GJF leases (Pogo ORRI) for $13.675 million in cash. Pogo Royalty waived outstanding interest and settled the Seller Note; 1,500,000 OpCo Preferred Units were conveyed to the Company in exchange for 1,500,000 Class A common shares.
• Virtus Farmout Program (September 9, 2025): Virtus paid $5.0 million to farm out San Andres formation rights. Virtus will own a 65% operated working interest; EON’s subsidiary retains 35%. Virtus will drill up to 3 initial horizontal wells and may drill up to 12 additional horizontals through 2030. Both parties have mutual 5-year rights of first offer on related interests.
• SJF acquisition (June 20, 2025): EON Energy, LLC acquired SJF assets; Company issued 1,000,000 Class A shares as consideration.

Financing and capital structure

• ELOC Purchase Agreement with White Lion Capital, LLC (entered October 17, 2022) permits issuance of up to $150 million of Class A common stock to White Lion over time at a discount to VWAP.
• White Lion amendment (March 7, 2024) fixed commitment shares at 440,000 shares issued as part of the arrangement.
• To date, 17,000,000 Class A shares have been issued under the ELOC Agreement.
• The arrangement includes registration rights and market-based pricing; future sales by White Lion may dilute existing holders.

Liquidity and cash flow (as of December 31, 2025)

• Cash and cash equivalents: $375,036.
• Working capital deficit: $21,814,454.
• Net cash flow from operating activities: negative $7,645,418 for the year ended December 31, 2025.
• Debt and liquidity management are influenced by proved reserves, price decks, lender underwriting standards, and access to capital markets or a revolving credit facility.

Production economics and reserves highlights

• 2025 production: 268 MBOE (244 MBbl crude oil; 142 MMcf natural gas; 0 MBbl NGLs). Realized prices: crude oil $63.93/bbl; natural gas $1.89/Mcf; combined average $59.29/BOE.
• 2024 production: 291 MBOE (256 MBbl crude oil; 213 MMcf natural gas; 0 MBbl NGLs). Realized prices: crude oil $75.52/bbl; natural gas $2.27/Mcf; combined average $67.96/BOE.
• Valuation metrics (as of 12/31/2025):
  • PV-10 (proved reserves, 10% discount): $37.545 million.
  • PV-10 after ARO: $(0.105) million.
  • Present value of income taxes (10% discount): $(6.256) million.
  • Standardized measure of discounted future net cash flows: $31.184 million.
  • For comparison, as of 12/31/2024 PV-10 was $207.666 million and the standardized measure was $173.113 million.
• Reserves snapshot (12/31/2025):
  • Proved reserves: 2,780 MBOE (2,685 MBbl oil; 569 MMcf gas; 0 NGLs).
  • PDP: 2,129 MBOE; PDNP: 651 MBOE; PUD: 0 MBOE.
  • Proved reserves are oil-weighted (approximately 96% oil).
  • Probable reserves: 9,211 MBOE (8,986 MBbl oil; 1,347 MMcf gas).

Drilling and development status

• As of 12/31/2025: 472 gross producing wells (342 net), 207 water injectors, 1 water source well.
• 115 PDNP patterns identified for potential development between 2026 and 2030 to increase production through waterflood and related methods.
• Density: 25.7 wells per square mile on the leasehold.

Regulatory and risk context

• Operations are subject to environmental, water use, and energy regulations. Potential regulatory changes—such as rules on hydraulic fracturing, methane controls, GHG reporting, and water disposal—could increase costs, affect development timelines, or influence liquidity.
• Company risk exposures include title defects, capital availability, commodity price volatility, hedging effectiveness, impairment risk, and climate-related policy shifts.

Headquarters and facilities

• Corporate offices: 3730 Kirby Drive, Suite 1200, Houston, Texas 77098.
• Engineering/geological center: 10810 Old Katy Rd, Katy, TX 77494.
• Combined office space monthly cost: approximately $3,000.

Overview

EON Resources, Inc. is a Texas-based oil and natural gas company focused on the Permian Basin. The company operates its primary assets, applies waterflood and EOR techniques, pursues acquisitions and farmouts to grow reserves and production, and uses equity and other capital transactions to fund operations and development. As of the end of 2025, EON reported annual production in the 268–291 MBOE range, material proved and probable reserves, a negative working capital position, limited cash on hand, and negative operating cash flow for the year.