EON Resources Reports 2025 Results, Advances Transformational Permian Growth Plan

Management expects production and reserves to begin growing in the fourth quarter of 2026 as the first horizontal wells come online.

Rhea-AI Summary

EON Resources (EONR) reported a wider 2025 net loss while reducing debt and advancing its San Andres drilling program.

Reported revenue fell to $16.94 million from $19.42 million in 2024, as the average oil price declined to $63.36 per barrel from $76.98. Net oil production was 246,557 barrels versus 250,686. The net loss widened to $10.13 million from $9.83 million. Year-end debt fell to $3.88 million from $48.94 million, while cash fell to $375,036 from $2.97 million.

A $45.5 million funding transaction closed September 9, 2025, alongside a farmout under which EON retains a 35% San Andres working interest. The company expects as many as 92 horizontal wells over several years; horizontal development began in August 2026. The GJF waterflood reserve value fell to $80 million at 2025 year-end from $207 million at 2024 year-end, contributing to an approximately $5 million fourth-quarter depletion and depreciation charge.

Positive

• Year-end debt fell to $3.88M from $48.94M.
• Farmout added 92 San Andres horizontal drilling locations.
• Interest expense fell to $4.9M from $7.6M in 2024.
• Equity attributable to EON rose to $51.2M from $4.6M.
• Acquired a 10% GJF overriding royalty interest for $13.5M.

Negative

• 2025 revenue fell to $16.94M from $19.42M.
• 2025 net loss widened to $10.13M from $9.83M.
• GJF waterflood reserve value fell to $80M from $207M.
• Year-end cash fell to $375,036 from $2.97M.
• Lower reserves contributed to an approximately $5M fourth-quarter depletion and depreciation charge.

News Explained

Under the farmout, the first three horizontal wells are to be drilled at no cost to EON, and the driller provided $2 million for evaluation workovers on selected existing wells.

Market Context

EON's Aug 26 record showed a 9.36% price reaction and noted the first San Andres horizontal well had...

Analysis

EON's Aug 26 record showed a 9.36% price reaction and noted the first San Andres horizontal well had begun drilling; this release revisits that same 92-well program alongside its 2025 results.

Key Figures

Revenue, as reported: $16,936,564 Net loss: ($10,126,617) Year-end debt: $3,878,823 +5 more

Revenue, as reported

$16,936,564

FY2025 vs. $19,418,919 in FY2024

Net loss

($10,126,617)

FY2025 vs. ($9,826,283) in FY2024

Year-end debt

$3,878,823

FY2025 year-end vs. $48,940,508 at FY2024 year-end

Proven reserve value

$80 million

End of 2025 vs. $207 million at end of 2024

Funding closed

$45.5 million

September 9, 2025 transaction

San Andres horizontal wells

Up to 92 wells

Management expected drilling over the next several years

Working interest

35%

EON's retained interest in the San Andres formation

Expected initial production per horizontal well

300–500 gross BOPD; approximately 100–200 net BOPD

Management expectation for each horizontal well

Historical Context

1 past event · Latest: Aug 26

1 event

1. Aug 26

   Drilling program

   24h Move

   +9.4%

   Company said first San Andres horizontal well had begun drilling under the 92-well program.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

farmout agreement, working interest, overriding royalty interest, bopd, +1 more

5 terms

farmout agreement technical

"entered into a Farmout Agreement with an experienced horizontal driller"

A farmout agreement is a contract in which the holder of exploration or production rights lets another party earn a portion of those rights by carrying out specified work, such as drilling a well or paying for exploration costs. For investors, it matters because it shifts who bears the expense and technical risk, can speed up development, and changes how future production and revenues are shared — similar to hiring a contractor to do a job in exchange for a cut of the proceeds.

working interest technical

"EON retains a 35% working interest in the San Andres formation."

The working interest is the percentage ownership one party holds in an oil or gas lease that gives them the right to a share of production and also the obligation to pay a proportional share of exploration, development and operating costs. Think of it like owning a slice of a cake but also agreeing to pay part of the bill to bake it: a larger working interest means bigger potential revenue when wells produce, but also larger exposure to costs and liabilities if things go wrong.

overriding royalty interest financial

"acquisition of a 10% overriding royalty interest in the GJF"

An overriding royalty interest is a contractual right to receive a fixed percentage of production revenue from an oil, gas, or mineral lease without paying operating or development costs. Think of it like owning a slice of a bakery’s daily sales — you get a steady cut of revenue but don’t own the oven or pay the bills. For investors, it means predictable cash flow exposure to commodity prices and production levels with lower operational risk but limited upside from cost reductions.

bopd technical

"initially produce 300-500 gross BOPD"

bopd stands for "barrels of oil per day," a measure of how much crude oil a well, field, or company produces each day. Investors use it like a water-flow meter: higher daily output usually means more potential sales and cash flow, while declines can signal shrinking revenue or operational problems, making it a key metric for valuing oil producers and assessing production trends.

waterflood technical

"the proven GJF waterflood reserves value"

Waterflood is a method oil producers use to get more oil out of an underground reservoir by pumping water into the ground to push remaining oil toward production wells. It matters to investors because it can raise short‑term output, extend the life of a field and change the cost and value of reserves — like squeezing extra syrup from a sponge by flushing it with water, improving how much product a given asset can deliver.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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HOUSTON, TX / ACCESS Newswire / September 28, 2026 / EON Resources Inc. (NYSE American:EONR) is an independent upstream energy company with approximately 20,000 leasehold acres in the Permian Basin and approximately 1.2 billion barrels of original oil in place. The Company has filed its Annual Report on Form 10-K for fiscal year 2025.

2025 was a year of repositioning. EON recapitalized its balance sheet, restored key Grayburg-Jackson Field ("GJF") infrastructure, expanded its development inventory and moved into the next phase of growth through the San Andres horizontal drilling program.

2025 Transformation at a Glance

• Shareholder equity increased by approximately $20 million.
• Notes and similar obligation instruments were reduced by $42 million.
• Preferred shares were retired, eliminating a potential $27 million redemption value.
• Fifty GJF wells idled by infrastructure problems were returned to oil-producing status after repairs and rebuilds.
• EON added 92 San Andres horizontal drilling locations under the Farmout agreement.
• Three San Andres vertical wells were recompleted at no cost to EON; production results were better than expected and strengthened management's confidence in horizontal-well forecasts.

A Capital Structure Built for the Next Phase

On September 9, 2025, EON closed $45.5 million of funding. The transaction satisfied $20 million of senior institutional debt, eliminated approximately $700,000 of monthly principal and interest payments, settled a $20 million promissory note (including principal and accrued interest) for $7 million in cash, retired preferred units with a $27 million redemption value, and funded the acquisition of a 10% overriding royalty interest in the GJF for $13.5 million.

The balance-sheet impact was substantial: year-end debt declined to approximately $3.9 million from $48.9 million, while equity attributable to EON increased to approximately $51.2 million from $4.6 million.

92-Well San Andres Program: The Organic Growth Engine

In conjunction with the September 9 closing, EON entered into a Farmout Agreement with an experienced horizontal driller. EON retains a 35% working interest in the San Andres formation. Management expects as many as 92 horizontal wells to be drilled over the next several years.

• The first three horizontal wells are to be drilled at no cost to EON.
• Each horizontal well is expected by management to initially produce 300-500 gross BOPD which is approximately 100-200 net BOPD to EON.
• The horizontal driller provided $2 million for evaluation workovers on selected existing vertical wells.
• Completed evaluation workovers in the first 3 wells are estimated by management to add approximately 100-300 net BOPD to EON at no cost to the Company.
• Horizontal development commenced in August 2026, with the GJF program anticipated to include 92 wells over approximately four to five years.

2025 Results: Stable Production Despite Lower Oil Prices

Net oil production remained broadly stable year over year, with 246,557 net barrels in 2025 versus 250,686 in 2024. Revenue declined primarily because the average oil price fell to $63.36 per barrel from $76.98.

Financial results for 2025

A major positive in 2025 results was the recapitalization and Farmout on September 9, 2025, along with the related instruments and events that drove the overall financial results. Looking behind the numbers, a promising story is apparent for EON. The core numbers for 2025 and 2024 were very similar as expected based on generally stable production.

The main negative item in 2025 was the proven GJF waterflood reserves value in the year end reserve report for 2025 was dramatically reduced from the 2024 reserve report. The total reserve value dropped from $207 million at the end of 2024 to $80 million at the end of 2025. Key drivers leading to the drop were (i) the SEC oil price for 2024 was $77.10 which dropped by $12.56 per barrel to the 2025 SEC oil price of $64.54, (ii) the needed focus on improving required infrastructure versus allocating resources to increasing oil production, and (iii) the resulting delay in significant progress in the development plan as anticipated in the 2024 reserve report. The main impact to the 2025 results was the $5 million additional charge to depletion and depreciation in the fourth quarter. Management expects a rebound in the GJF waterflood program reserve value once we re-establish the development activities. Management also expects the reduced GJF waterflood reserves and values to return to prior levels during 2026 and 2027 with higher oil prices forecasted combined with increased activity to expand the GJF waterflood patterns. Once the GJF horizontal drilling program has a few months of operations, management expects to add approximately $100 million in reserve value. The potential of the GJF remains promising to increase despite the reserve report valuation for 2025.

Income Statement Highlights Table - Year to Date & Fourth Quarter

Year to Date	YTD-2025	YTD-2024	Change
Net oil barrels	246,557	250,686	(4,130)
Average oil price	63.36	76.98	(13.62)
Revenues, net of derivatives	16,684,816	19,786,277	(3,101,461)
Non-cash derivatives	251,748	(367,358)	619,106
Revenues, as reported	16,936,564	19,418,919	(2,482,355)
Lease operating	10,274,781	8,614,080	(1,660,701)
Depletion & depreciation	6,710,092	2,407,098	(4,302,994)
Other field related costs	1,672,786	1,860,781	187,995
General and administrative	12,080,450	10,381,095	(1,699,355)
Total expenses	30,738,109	23,263,054	(7,475,055)
Gain on sale of assets	13,379,040	-	13,379,040
Gain on debt forgiveness	540,347	1,638,138	(1,097,791)
Interest expense	(4,892,170)	(7,643,199)	2,751,029
Other income (expense)	(3,438,735)	(3,447,495)	8,760
Total other	5,588,482	(9,452,556)	15,041,038
Tax (expense) benefit	(1,913,554)	3,470,407	(5,383,961)
Net income (loss)	(10,126,617)	(9,826,283)	(300,333)

Fourth Quarter	Q4-2025	Q4-2024	Change
Net oil barrels	60,750	62,140	(1,390)
Average oil price	54.54	67.05	(12.51)
Revenues, net of derivatives	3,536,628	4,404,546	(867,918)
Non-cash derivatives	43,225	(693,866)	737,090
Revenues, as reported	3,579,852	3,710,680	(130,828)
Lease operating	2,975,756	2,083,649	(892,107)
Depletion & depreciation	5,627,956	900,856	(4,727,100)
Other field related costs	527,348	450,066	(77,283)
General and administrative	5,817,918	3,512,347	(2,305,571)
Total expenses	14,948,978	6,946,918	(8,002,060)
Gain on sale of assets	-	-	-
Gain on debt forgiveness	19,481	(81,862)	101,343
Interest expense	(210,549)	(1,910,453)	1,699,904
Other income (expense)	(446,663)	(1,284,323)	837,660
Total other	(637,731)	(3,276,637)	2,638,907
Tax (expense) benefit	2,929,184	1,065,428	1,863,756
Net income (loss)	(9,077,673)	(5,447,447)	(3,630,226)

• Revenues: Revenue for 2025 was $17 million compared to $19 million in 2024. The net oil production was approximately 250K barrels of oil for both years. While overall production was similar, the average oil price for 2025 was $13.62 a barrel lower than in 2024, and for the fourth quarter the average oil price was $12.51 a barrel lower.The fluctuations in oil prices across 2025 resulted in non-cash derivative income of $251K for 2025 versus a non-cash derivative expense of ($367K) for 2024. Most of the 2024 impact was in the fourth quarter, which had a ($693K) non-cash derivative expense.
• Lease operating expenses ("LOE"): The LOE for the GJF was reduced from a run rate of $725K per month in 2024 to a stable $675K per month for all of 2025. The SJU was acquired in late June 2025 and added approximately $2.2 million of LOE in 2025, or approximately $370K per month in LOE. Other changes in LOE were from non-recurring adjustments.
• Depletion and depreciation: The year-end reserve reports record all retroactive adjustments in the fourth quarter. In 2025, the extra charge to the fourth quarter was approximately $5 million due to lower reserves in the 2025 reserve report compared to the 2024 report. The 2025 report reflected a $12.56 drop in SEC oil price. The amount of depletion and depreciation was impacted by a multitude of factors including production levels, oil prices and reserve reports. Under GAAP, the amount to record has been consistent.
• General and administrative costs ("G&A"): The G&A cost structure has two distinct classifications: baseline on-going costs and transaction driven costs.a. Baseline or on-going G&A costs: The Company's on-going G&A cost structure was reduced by $1.0 million from 2024 to 2025. Key drivers were reductions of approximately $200K in audit costs, $400K in legal costs and $400K in insurance premium costs. Management continues to focus on reducing the G&A cost structure. Management expects to have further reductions in insurance premiums and accounting areas.b. Transaction driven costs in G&A: Under GAAP, many of the transaction driven costs that are logically below the line costs, are required to be classified as G&A. EON, as an emerging growth company, always looking to improve its capital structure, has transaction costs relating to acquisition, financial instruments, resolving and settling carry-over matters from before the De-SPAC of the Company, and other one-time filings and events. In 2024, there was $3 million in transaction driven costs. In 2025, there was $6 million in transaction driven costs of which $5 million stemmed from the September 9^th funding close.
• Other income and expense: Other main income and expense items related to financing costs, the funding event of September 9, 2025, and valuations at fair market value ("FMV") of various instruments. a. Interest expense: The interest expense for 2025 was $4.9 million down from the expense of $7.6 million in 2024 due to the retirement of the senior debt on September 9, 2025, and the reduction of private loans and convertible notes across the year.b. Amortization of financing fees: The amortization of financing costs from the initial business acquisition in November 2023 was $1.4 million for 2025.c. Gains: As a result of the funding and Farmout on September 9, 2025, there was a gain of $13.9 million on asset sales and forgiveness of debt.d. Derivative liability valuations: There was a net $2.0 million of expense from derivative valuations of warrants and other financial instruments in 2025.

Outlook for the remainder of the year: The Company believes it can continue to deliver stable production from its two core properties. Both production and reserves will begin to grow in the fourth quarter of 2026, as the first horizontal wells in the San Andres interval are drilled and come online.

Balance Sheet Highlights Table

	2025	2024	Change
Cash and cash equivalents	375,036	2,971,558	(2,596,522)
Accounts receivable	1,437,943	1,782,264	(344,321)
Prepaid and other current	1,262,463	405,283	857,180
Oil & gas properties	81,971,796	97,545,912	(15,574,116)
Other non-current assets	1,891,348	-	1,891,348
Total assets	86,938,586	102,705,017	(15,766,431)
Accounts payable & accrued	23,272,559	21,628,020	(1,644,539)
Debt (current & long-term)	3,878,823	48,940,508	45,061,685
Derivatives (various)	2,716,366	2,650,000	(66,366)
Deferred tax liability	3,959,392	2,692,733	(1,266,659)
Other liabilities	1,956,147	1,724,285	(231,862)
Total liabilities	35,783,287	77,635,546	41,852,259
Equity attributable to EON	51,155,299	4,643,287	(46,512,012)
Non-controlling interest	-	20,426,184	20,426,184
Total equity and liabilities	86,938,586	102,705,017	15,766,431

• Cash and other non-current assets: The senior debt holder also provided letters of credit for required bonds for field operations. The Company had a $2.6 million cash reserve account with the senior debt holder that included the backing of the letters of credit. At the September 9^th closing, the senior debt was fully paid off. During 2025, the Company transferred money to a long-term deposit account from the bank reserve account as backing for the required field bonds.
• Oil & Gas Properties: Part of the September 9^th funding was the acquisition of a 10% ORRI in all of the GJF, and the selling of a 15% ORRI in the GJF waterflood and a 5% ORRI in the San Andres interval in the GJF. The accounting for the transaction included the reduction of the recorded book value of the oil and gas properties.
• Debt Reduction: The Sep 9th funding close included the retirement of the $15 million Promissory Note and the $20 million of senior institutional debt. The $45 million reduction of debt also included approximately $8 million reduction in convertible notes.
• Equity & Non-Controlling Interest: Included in the September 9th closing was the retirement of the preferred shares and all other components included in the $20 million of non-controlling interest. The balance was reclassified to equity attributable to EON.

About EON Resources Inc.

EON is an independent upstream energy company focused on maximizing total returns to shareholders through the development of onshore oil and natural gas properties. EON's Class A Common Stock trades on the NYSE American under "EONR," and its public warrants trade under "EONR WS." For more information on the Company, please visit the EON website.

Two Permian Basin Assets, Multiple Development Horizons

Grayburg-Jackson Field (GJF): 13,700 contiguous leasehold acres in Eddy County, New Mexico, with stacked pay zones and almost 1 billion barrels of estimated original oil in place, of which less than 7% has been produced to date. The San Andres horizontal development program commenced in August 2026.

South Justis Unit (SJU): 5,360 contiguous acres in Lea County, New Mexico, with approximately 207 million barrels of original oil in place. EON's geologic and reservoir work on the Blinebry zone indicates development potential that management believes is similar in character to the opportunity identified in the GJF.

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

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How did EON Resources’ 2025 results compare with 2024?

Reported revenue declined to $16.94 million from $19.42 million, and the net loss widened to $10.13 million from $9.83 million. Net oil production was 246,557 barrels versus 250,686, while the average oil price fell to $63.36 per barrel from $76.98.

What are the terms of EON Resources’ San Andres farmout?

EON retains a 35% working interest in the San Andres formation under a farmout that added 92 horizontal drilling locations. The company expects as many as 92 horizontal wells to be drilled over the next several years.

Why did EON Resources’ GJF waterflood reserve value fall in 2025?

The GJF waterflood reserve value fell to $80 million at 2025 year-end from $207 million at 2024 year-end. EON identified a lower SEC oil price, work on required infrastructure instead of increased production, and a resulting delay in its development plan as drivers of the decline.

Who is paying for EON Resources’ initial San Andres wells and evaluation workovers?

The first three horizontal wells are to be drilled at no cost to EON. The horizontal driller also provided $2 million for evaluation workovers on selected existing vertical wells. EON estimates that completed workovers in the first three wells will add approximately 100–300 net barrels of oil per day at no cost to the company.