HNR Acquisition Corp., now known as EON Resources, Inc., has reported its financial performance for the fiscal year ending December 31, 2024, following its recent acquisition of EON Resources, LLC. The company generated total revenues of $19.4 million, a decrease of approximately 20% compared to $24.2 million in the previous fiscal year. This decline was primarily attributed to a 28% drop in production volumes, which was partially offset by a 6% increase in realized prices for oil and natural gas. The average realized price for crude oil was $75.52 per barrel, while natural gas was $2.27 per Mcf.
The company’s operational metrics indicate a significant reduction in average daily production, which fell to 798 BOE per day in 2024 from 1,022 BOE per day in 2023. This decrease was linked to increased well downtime and field conditions that necessitated enhancements. EON's production is heavily weighted towards oil, with 86% of sales volumes derived from crude oil. The company also reported a loss on derivative contracts amounting to $850,374 for the year, compared to a gain of $392,765 in the previous year.
Strategically, EON completed its initial business combination on November 15, 2023, acquiring 100% of EON Resources, LLC. This acquisition involved a total cash consideration of approximately $31.1 million and the issuance of various equity instruments. Following the acquisition, EON's operational focus is on the Northwest Shelf of the Permian Basin, where it operates 342 producing wells across 13,700 gross acres. The company plans to enhance production through waterflooding recovery methods and aims to develop its proved developed non-producing reserves.
EON's financial health is under scrutiny, as it reported a working capital deficit of $31.2 million and cash reserves of $2.97 million as of December 31, 2024. The company has outlined plans to alleviate concerns regarding its ability to continue as a going concern, including streamlining costs and maintaining active hedge positions for its production. The outlook remains cautious, with management emphasizing the need for improved profitability and potential capital raises to support ongoing operations and development activities.
About EON Resources Inc.
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