EON Resources Inc. Increased Its Hedging Position to 60% for the Balance of 2026, and 50% for the First Quarter of 2027 Using Futures Contracts to Manage Risks
Rhea-AI Summary
EON Resources (NYSE American: EONR) increased its oil hedging to 60% of current production for the balance of 2026 and 50% for Q1 2027 using futures-based swaps and collars. Recent swaps lock an average oil price of greater than $60.00 per barrel. The company produces over 1,000 barrels per day from 750 wells across 20,000 leasehold acres in the Permian Basin and plans further hedging as new production comes online.
Positive
- Hedged 60% of 2026 production
- Hedged 50% of Q1 2027 production
- Swaps average price > $60.00 per barrel
- Current production > 1,000 barrels/day
- 20,000 leasehold acres and 750 wells
Negative
- Hedging may cap upside if oil rallies above locked prices
- Market volatility cited for 2026 election year risks
News Market Reaction
On the day this news was published, EONR declined 8.46%, reflecting a notable negative market reaction. Our momentum scanner triggered 6 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $2M from the company's valuation, bringing the market cap to $18M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
EONR gained 4.81% while peers were mixed: BATL up 12.5%, MTR up 1.7%, MXC roughly flat, and BRN and TPET down. This mixed tape points to a stock-specific move rather than a broad sector rotation.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 27 | Board appointment | Positive | +7.0% | Appointment of experienced independent director to support financing and acquisitions. |
| Jan 21 | Shareholder letter | Positive | +0.8% | CEO shareholder letter recapping 2025 and outlining positioning for 2026. |
| Dec 22 | Insider buying | Positive | +7.4% | Management and directors disclosed substantial additional open-market share purchases. |
| Nov 17 | Earnings materials | Positive | +9.7% | Posting of Q3 2025 earnings deck with operating and financial details. |
| Nov 17 | Earnings call notice | Positive | +9.7% | Announcement of Q3 2025 earnings call and review of funding and operations. |
Recent corporate updates and insider-related news have frequently coincided with positive next-day price reactions.
Over the last several months, EONR has seen multiple corporate updates linked with positive price responses. A new independent director announcement on Jan 27, 2026 and a shareholder letter on Jan 21, 2026 both preceded gains. Earlier, substantial insider and director share purchases in late 2025, alongside Q3 2025 earnings materials, also aligned with rises of roughly 7–10%. Against this backdrop, the latest update on expanding the hedging program for 2026–2027 continues a pattern of operational and governance moves supporting constructive sentiment.
Market Pulse Summary
The stock moved -8.5% in the session following this news. A negative reaction despite detailed hedging disclosures would contrast with earlier positive responses to corporate updates that produced gains of roughly 7–10%. The article emphasizes risk management via swaps above $60 per barrel and hedge coverage of 60% of 2026 production and 50% of early 2027. A decline could reflect concerns about capped upside, execution around drilling up to 92 wells, or broader energy-market sentiment rather than the specifics of this program.
Key Terms
hedging financial
futures contracts financial
no-cost swaps financial
no-cost collars financial
AI-generated analysis. Not financial advice.
HOUSTON, TX / ACCESS Newswire / February 12, 2026 / EON Resources Inc. (NYSE American:EONR) ("EON" or the "Company") is an independent upstream energy company with 20,000 leasehold acres in the Permian Basin. The fields have a total of 750 producing and injection wells producing over 1,000 barrels of oil per day. Today, the Company announced it is increasing its hedging position in 2026 and 2027 to leverage future contracts to manage various risks.
Hedging programs are used in the oil industry by utilizing hedging contracts (or positions) to mitigate the risks of unfavorable price movement. Typically, the hedging position level is a balance of the percentage of current production compared to the cash requirements for operating expenses and debt service requirements. There are many types of hedging contracts. EON typically uses no-cost swaps (a set price per barrel), and no-cost collars (provides a range above and below a swap to take advantage of some potential upside at an amount that has a floor for the downside).
EON took advantage of higher oil price spikes in September 2025 and the last couple of weeks to lock in hedging contracts at favorable pricing. These recent contracts were all swaps and provide for an average price for oil of greater than
"There is no better time to buy oil properties and no better time to hedge oil," said Dante Caravaggio, President and CEO of the Company. "While we are long-term bullish, this is an election year, which means the markets may see some volatility. We can afford to build an advantageous hedge position, especially since right now EON is at the lower end of our forecasted oil production rate for the current year."
"EON has successfully used a target hedge price for oil of
"We spent two years stabilizing production and upgrading infrastructure, and we are seeing the positive results of this effort in the last half of 2025," said Jesse Allen, Vice President of Operations for the Company. "We are now expanding production by tapping into non-producing reserves. We are in a great position to strengthen our hedging program as potentially 92 horizontal wells over the next five years may be drilled under EON's farmout."
We encourage EON followers to read our letter to shareholders issued on January 21, 2026 to learn more about 2025 and how EON is positioned for 2026 and beyond. The shareholder letter can be found on the EON website under investor relations.
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 a diversified portfolio of long-life producing oil and natural gas properties and other energy holdings. EON's approach is to build an energy company through acquisition and through selective development of its properties. Class A Common Stock of EON trades on the NYSE American Stock Exchange under the symbol of "EONR" and the Company's public warrants trade under the symbol of "EONRWS". For more information on the Company, please visit the EON website.
About the Grayburg-Jackson Field Property
Our Grayburg-Jackson Field ("GJF") is located on the Northwest Shelf of the Permian Basin in Eddy County, New Mexico. The GJF comprises of 13,700 contiguous leasehold acres where the leasehold rights 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, estimates 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") is approximately 956 million barrels of oil. The Company has two production programs. The first is the existing waterflood recovery primarily in the Seven Rivers formation via the 550 wells already in place. The second is via a Farmout agreement in the San Andres formation where the recovery will primarily be under the horizontal drilling program that the Company expects to drill up to 90 new wells over the next several years. More information on the property can be located on the Grayburg-Jackson Field page of our website.
About the South Justis Field Property
The South Justis Field ("SJF") is a carbonate reservoir similar to the rest of the Permian, and is located in Lea County, New Mexico approximately 100 miles from the GJF. The SJF is comprised of 5,360 contiguous acres containing 208 total producing and injection wells with well spacing of 50 acres. 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. More information on the property can be located on the South Justis Field page of our website.
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.
mike@plrinvest.com
SOURCE: EON Resources Inc.
View the original press release on ACCESS Newswire
FAQ
What hedging levels did EON Resources (EONR) set for 2026 and Q1 2027?
At what price did EON Resources (EONR) lock its recent oil hedges?
How much oil does EON Resources (EONR) currently produce and from where?
What hedging instruments is EON Resources (EONR) using for 2026–2027?
Will EON Resources (EONR) adjust hedges as new wells come online?
How might EON Resources (EONR) hedging affect its growth plans?
