- EON Resources (EONR, Financial) reported fiscal 2024 revenue of $19.4 million with stable production of 950 barrels of oil per day.
- A $40 million debt reduction agreement with Pogo Royalty positions EON Resources for growth.
- $52.8 million volumetric funding arrangement with Enstream to support future operations and debt retirement.
EON Resources Inc. (EONR) announced its financial results for fiscal year 2024, marking a total revenue of $19.4 million. The company maintained a stable oil production rate of approximately 950 barrels per day. A strategic agreement with Pogo Royalty will allow the company to eliminate $40 million in debt through a $22 million cash payment and the issuance of 3 million shares.
Operational improvements were notable as EON achieved an operating income of $6.5 million, while successfully reducing monthly lease operating expenses from $845,000 in 2023 to $700,000 by the end of 2024. Additionally, the company invested $6.0 million in infrastructure, focusing on water, flowline repairs, and system enhancements.
To support its financial restructuring and future growth, EON Resources secured a non-binding Letter of Intent with Enstream Capital Management for a $52.8 million volumetric funding arrangement. This funding is intended to facilitate the Pogo transaction, aid in field development, and contribute to the retirement of senior debt, with both transactions expected to close by June 2025.
Looking ahead, EON has identified 50 potential well locations for a horizontal drilling program set to commence in Q1 2026. Each well is expected to require an investment of $3.7 million and potentially yield 300-400 barrels of oil per day, targeting an estimated 20 million untapped barrels in the San Andres formation. These initiatives reflect EON's strategic efforts to enhance production capacity and stabilize its financial standing.
In 2025, EON plans to hedge 70% of its oil production at a price of $70.00 per barrel or greater, mitigating potential market risks and securing a stable revenue stream.
