EON Resources Reports 40% Year-Over-Year Revenue Growth; Narrows Net Loss by 77% and Advances Permian Basin Development

Non-cash derivative effects contributed $2,158,927 to reported quarterly revenue, while debt and accrued liabilities increased.

Rhea-AI Summary

EON Resources (NYSE American: EONR) reported second-quarter 2026 revenue of $6.49 million, up 40% year over year, alongside a narrower net loss. Revenue excluding non-cash derivative effects rose 7.3% to $4.33 million. The net loss narrowed 77% to $692,584 from $2,955,849. Interest expense fell to $175,618 from $1,649,656.

Cash increased to $691,672 at June 30 from $129,772 at March 31, while debt rose to $9,003,786 from $7,379,383, primarily because of an April convertible note. Two San Andres horizontal wells, in which EON holds a 35% working interest, began initial flowback and recovery of fracturing fluids; permanent production facilities are operational. EON expects stable production from its core properties and further third-quarter growth in revenue excluding non-cash derivative effects and cash. Previously overdue annual and quarterly reports have been filed within the extended exchange deadline.

15 points · 0 major

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It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

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0 major · 10 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointQ2 reported revenue rose 40% year over year to $6.49 million, including non-cash derivative effects.
• Moderate pointRevenue excluding non-cash derivatives rose 7.3% year over year and 2.5% sequentially to $4.33 million.
• Moderate pointQ2 net loss narrowed 77% year over year to $692,584, also improving from $5,772,595 in Q1.
• Moderate pointInterest expense fell to $175,618 from $1,649,656 a year earlier and $260,381 in Q1.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Third-quarter revenue excluding non-cash derivatives is expected by EON to increase, based on current market conditions.
• Moderate pointDerivative liabilities declined to $4,223,137 at June 30 from $6,661,369 at March 31.

9 minor points

• Minor pointCash increased to $691,672 at June 30, 2026, from $129,772 at March 31.
• Minor pointTwo San Andres wells began initial flowback; EON holds a 35% working interest and permanent facilities are operational.
• Minor point. Forward-looking: it has not happened yet and may not happen.Core-property production is expected by EON to remain stable for the remainder of 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.Third-quarter cash is expected by EON to increase further, based on current projections.
• Minor point. Forward-looking: it has not happened yet and may not happen.G&A savings are expected by management in insurance premiums, legal fees and accounting costs.
• Minor pointLease operating expenses declined sequentially to $2,511,297 from $2,528,313, although above $2,359,042 a year earlier.
• Minor pointOther income reached $179,542, versus expenses of $851,982 in Q1 and $608,553 a year earlier.
• Minor pointDeferred tax liability declined to $2,711,415 at June 30 from $3,287,278 at March 31.
• Minor pointOverdue reports were filed within the extended November 23, 2026 exchange cure deadline.

Negative

• Moderate pointDebt rose to $9,003,786 at June 30 from $7,379,383 at March 31, primarily from an April convertible note.
• Moderate pointPayables and accrued liabilities increased to $22,981,671 at June 30 from $21,771,228 at March 31.
• Moderate pointDepletion and depreciation rose to $2,136,209 from $458,191 a year earlier and $1,790,976 in Q1.
• Moderate pointGeneral and administrative expenses rose to $2,375,349 from $1,808,345 a year earlier, despite declining from $2,406,571 sequentially.
• Moderate pointNon-cash derivative effects make reported revenue volatile; Q2 included a $2,158,927 positive effect.

5 minor points

• Minor pointOther field costs increased to $735,639 from $323,854 a year earlier and $445,679 in Q1.
• Minor pointSouth Justis and Grayburg-Jackson horizontal production have no hedging protection.
• Minor pointEquity attributable to EON declined to $49,375,208 at June 30 from $49,656,323 at March 31.
• Minor pointOther liabilities increased to $2,020,686 at June 30 from $1,987,821 at March 31.
• Minor pointLate annual and quarterly filings breached NYSE American continued listing standards before the reports were filed.

News Explained

The release explains that reported revenue includes a non-cash derivative effect tied to oil prices on the quarter’s last day; it models a hypothetical cancellation of all hedges then. The effect moves inversely with oil prices, so it can shift reported revenue independently of the company’s operating performance.

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Market Reaction – EONR

$0.41 – $0.55 Day Range

$23.50M Mkt Cap at Last Price

On Oct 23, the day this news came out, the latest delayed price for EONR is 0.97% above the previous close. The latest delayed price is $0.42.

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Key Figures

Reported revenue: $6.49 million, up 40% from $4.63 million Revenue excluding non-cash derivative effects: $4.33 million, up 7.3% from $4.03 million Net loss: $692K, down 77% from $2.96 million +3 more

Reported revenue

$6.49 million, up 40% from $4.63 million

Q2 2026 year over year; includes non-cash derivative effects

Revenue excluding non-cash derivative effects

$4.33 million, up 7.3% from $4.03 million

Q2 2026 year over year

Net loss

$692K, down 77% from $2.96 million

Q2 2026 year over year

Interest expense

$176K, down from $1.65 million

Q2 2026 year over year

Cash and cash equivalents

$692K, up from $130K

At June 30, 2026, compared with March 31, 2026

NYSE American cure deadline

November 23, 2026

Extended deadline for the continued-listing deficiency

Historical Context

1 past event · Latest: Oct 13

1 event

1. Oct 13

   Q1 earnings report

   24h Move

   +1.9%

   Q1 update reported $4.2 million revenue excluding derivatives, providing a comparable prior-quarter base.

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

Key Terms

gaap, convertible notes, working interest, derivative valuations

4 terms

gaap financial

"Under GAAP, many of the transaction driven costs"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

convertible notes financial

"reduction of private loans and convertible notes across the year"

Convertible notes are a type of short-term loan that a company receives from investors, which can later be turned into company shares instead of being paid back in cash. They matter to investors because they offer a way to support a company early on while giving the potential to own a stake in its success if the company grows and later raises more funding.

working interest technical

"maintains a 35% working interest have commenced initial flowback operations"

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.

derivative valuations financial

"A net $180K of income from derivative valuations of financial instruments"

Valuing financial contracts whose payoff depends on another asset or index by estimating their fair value using mathematical models and market inputs. Common methods include closed-form formulas (for standard options), lattice or Monte Carlo simulations (for complex or path-dependent contracts) and mark-to-market pricing using observable market quotes; inputs that drive the result include the underlying price, time to expiry, expected volatility, interest rates, dividends, and any credit, funding or collateral terms. Because the output depends on model choice and input assumptions, derivative valuations reflect a modeled estimate of fair value rather than a single objectively observable price.

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

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HOUSTON, TX / ACCESS Newswire / October 23, 2026 / EON Resources Inc. (NYSE American:EONR) ("EON" or the "Company") is an independent upstream energy company with approximately 20,000 leasehold acres in the Permian Basin, today announced financial results for the second quarter ended June 30, 2026, as reflected in its 10-Q for Q2 2026 filed yesterday. The Company reported higher year-over-year revenue, a substantially narrower net loss and lower interest expense as it prepares for its next phase of development at the Grayburg-Jackson Field in New Mexico.

Second-Quarter Highlights

• Reported revenue increased 40% year over year to $6.49 million from $4.63 million, including non-cash derivative effects.
• Revenue excluding non-cash derivative effects increased 7.3% year over year to $4.33 million from $4.03 million, and 2.5% from the first quarter of 2026.
• Net loss fell to $692K from $2.96 million a year earlier, a 77% improvement.
• Interest expense declined to $176K from $1.65 million a year earlier, following retirement of senior debt in September 2025 and other debt reductions.
• Cash and cash equivalents increased to approximately $692K at June 30, 2026, from $130K at March 31, 2026.

Financial results for Q2 2026

The overall financial results for the second quarter of 2026 are consistent with the Company's underlying core operational performance over the past several quarters. Revenues have trended up for the last two quarters with the increase in oil prices.

Income Statement Highlights Table - Quarterly Comparisons

Compare Current 2			Q2-2026				Q1-2026			Change
Revenues, net of derivatives			4,326,789				4,223,108				103,681
Non-cash derivatives			2,158,927				(3,254,915	)			5,413,842
Revenues, as reported			6,485,716				968,193				5,517,523
Lease operating			2,511,297				2,528,313				17,016
Depletion & depreciation			2,136,209				1,790,976				(345,233	)
Other field related costs			735,639				445,679				(289,960	)
General and administrative			2,375,349				2,406,571				31,222
Total expenses			7,758,494				7,171,539				(586,955	)
Interest expense			(175,618	)			(260,381	)			84,763
Other income (expense)			179,542				(851,982	)			1,031,524
Total other			3,924				(1,112,363	)			1,116,287
											-
Tax (expense) benefit			576,270				1,543,114				(966,844	)
Net income (loss)			(692,584	)			(5,772,595	)			5,080,011

Compare to Prior Year			Q2-2026				Q2-2025			Change
Revenues, net of derivatives			4,326,789				4,033,496				293,293
Non-cash derivatives			2,158,927				598,554				1,560,373
Revenues, as reported			6,485,716				4,632,050				1,853,666
Lease operating			2,511,297				2,359,042				(152,255	)
Depletion & depreciation			2,136,209				458,191				(1,678,018	)
Other field related costs			735,639				323,854				(411,785	)
General and administrative			2,375,349				1,808,345				(567,004	)
Total expenses			7,758,494				4,949,432				(2,809,062	)
Gain on debt forgiveness			-				(914,518	)			914,518
Interest expense			(175,618	)			(1,649,656	)			1,474,038
Other income (expense)			179,542				(608,553	)			788,095
Total other			3,924				(3,172,727	)			3,176,651
											-
Tax (expense) benefit			576,270				534,259				42,011
Net income (loss)			(692,584	)			(2,955,849	)			2,263,265

• Revenues: The revenues net of hedging derivatives have been trending up for the first two quarters of 2026 with the increase in oil prices, and based on current market conditions, are expected to continue to increase in the third quarter.

Included in the reported revenues is the non-cash derivative impact, which can obscure the underlying operational performance of the Company. The derivative impact is a function of oil prices on the last day of a quarter. It is not representative of operations and activities of the Company. It represents a hypothetical "what-if" scenario that assumes all hedges were canceled at quarter end. The impact has an inverse relationship between oil price and revenues where there is a reduction of revenues if the oil price goes up, and an increase of revenues if the oil price drops. EON has experienced significant swings in the non-cash derivative revenue impact as shown in the trends of the last three quarters due to market conditions.

			Q4-2025				Q1-2026				Q2-2026
Oil price, end of the quarter		$	57.42			$	101.38			$	69.50
Revenues, net of derivatives			3,536,628				4,223,108				4,326,789
Non-cash derivatives			43,225				(3,254,915	)			2,158,927
Revenues - Reported			3,579,853				968,193				6,485,716

• Lease operating expenses ("LOE"): The LOE for the Grayburg-Jackson Field ("GJF") maintains a consistent run rate of approximately $700K per month. The South Justis Unit ("SJU"), which was acquired in late June 2025, has a run rate of approximately $130K per month in LOE.
• Depletion, depreciation and amortization ("DD&A"): The year-end reserve reports are used to determine an estimated DD&A for the entire year. The quarterly estimated amount is used in the fourth quarter of the year, and for quarters going forward. Any retroactive adjustments to previously reported quarters are not made. In 2025, the extra charge to the fourth quarter was approximately $1.5 million due to lower reserves in the 2025 reserve report compared to the 2024 report. The same lower reserve estimates also produced a higher ongoing quarterly DD&A rate, accounting for the increase in DD&A in Q2-2026 compared to Q2-2025.
• General and administrative costs ("G&A"): The G&A cost structure has two distinct classifications: baseline on-going costs and transaction driven costs.

1. Baseline or on-going G&A costs: The Company's on-going G&A cost structure has been trending lower over time since 2024 and is currently averaging approximately $600K per month. Management continues to focus on reducing the G&A cost structure and expects to have further reductions in the areas of insurance premiums, legal fees and accounting costs. The lower costs in Q2-2025 compared to Q2-2026 were primarily due to the management team electing to temporarily defer salaries and other compensation costs.
2. Transaction driven costs in G&A: Under GAAP, many of the transaction driven costs which are logically below the line costs, are required to be classified as G&A. EON, as a growth-stage company, is always looking to improve its capital structure, and thus 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. There was approximately $300K in transactional costs in each of the quarters being compared.

• Other income and expense: Other income and expense items relate to financing costs and derivative valuations at fair market value ("FMV") of various instruments.

1. Interest expense: The interest expense in Q2-2026 was $1.5 million lower year-over-year due to the retirement of the senior debt on September 9, 2025, and the reduction of private loans and convertible notes across the year.
2. Derivative liability valuations: A net $180K of income from derivative valuations of financial instruments in Q2-2026 was recognized compared to net expense of $850K in Q1-2026 and net expense of $610K in Q2-2025.

Outlook for the remainder of the year: The Company believes it can continue to deliver stable production from its two core properties. The first two San Andres horizontal wells in which the Company maintains a 35% working interest have commenced initial flowback operations and frac-load recovery with all permanent production facilities installed and operational. As operations progress and sufficient production data becomes available, meaningful milestones and associated interpretations can be communicated to stakeholders in due course, following appropriate technical evaluation and coordination between the working interest parties. No production from the SJU or from the horizontal development program in the GJF is hedged.

Balance Sheet Highlights Table

		Jun 2026				Mar 2026				Change
Cash and cash equivalents			691,672				129,772				561,900
Accounts receivable			2,373,601				2,407,047				(33,446	)
Prepaid and other current			1,364,636				1,201,868				162,768
Oil & gas properties			83,994,647				85,113,367				(1,118,720	)
Other non-current assets			1,891,348				1,891,348				-
Total assets			90,315,904				90,743,402				(427,498	)
Accounts payable & accrued			22,981,671				21,771,228				(1,210,443	)
Debt (current & long-term)			9,003,786				7,379,383				(1,624,403	)
Derivatives (various)			4,223,137				6,661,369				2,438,232
Deferred tax liability			2,711,415				3,287,278				575,863
Other liabilities			2,020,686				1,987,821				(32,865	)
Total liabilities			40,940,695				41,087,079				146,384
Equity attributable to EON			49,375,208				49,656,323				281,115
Total equity and liabilities			90,315,904				90,743,402				(427,498	)

• Cash: The cash balance increased from $130K in March 2026 to $692K at the end of June. Based on current projections, the Company expects to increase the cash balance further in the third quarter.
• Payables and Accrued Liabilities: The increase in payables and accrued liabilities is due to interest accruals for conversion of deferred compensation to notes, potential bonus accruals, and increase in activities for field development.
• Debt: The increase in debt is primarily due to a convertible note funded in April 2026.
• Derivative Liabilities: The derivative liability for non-cash hedging decreased due to the decline in oil prices at the end of June 2026 compared to March 2026, which served as an offset to the revenue impact for the quarter.

Required disclosure regarding our filings

As required by Sections 402 and 1009(e) of the NYSE American, the Company discloses that the filings for the 2025 10-K and the 10-Q for the first and second quarters were late, and not in compliance with NYSE American continued listing standards. The NYSE extended the cure deadline from October 15, 2026 to November 23, 2026. The Company has met thedeadlines by filing its 2025 10-K and the 10-Qs for both of the first two quarters of 2026.

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." Its Permian Basin portfolio includes GJF and SJU in New Mexico. 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 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 because 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 much did EON Resources revenue and net loss improve in Q2 2026?

Reported revenue rose 40% year over year to $6.49 million, while net loss narrowed 77% to $692,584. Revenue excluding non-cash derivative effects increased 7.3% year over year to $4.33 million. Reported revenue included $2,158,927 of positive non-cash derivative effects.

Why did EON Resources depletion and depreciation increase in Q2 2026?

Lower reserves in the 2025 reserve report produced a higher ongoing quarterly depletion, depreciation and amortization rate. Depletion and depreciation reached $2,136,209 in Q2 2026, compared with $458,191 a year earlier. The lower reserve estimates also resulted in an approximately $1.5 million extra charge in the fourth quarter of 2025.

Why did EON Resources general and administrative expenses rise year over year?

The year-earlier comparison benefited primarily from management temporarily deferring salaries and other compensation costs. General and administrative expenses were $2,375,349 in Q2 2026, versus $1,808,345 in Q2 2025. Ongoing costs currently average approximately $600K per month, with approximately $300K of transactional costs in each quarter compared.

When will EON Resources provide production updates on its first San Andres horizontal wells?

EON plans to communicate milestones as operations progress and sufficient production data becomes available, following technical evaluation and coordination among the working-interest parties. The wells have begun initial flowback and recovery of fracturing fluids; this stage is not presented as an established production result.

Why did EON Resources payables and accrued liabilities increase in Q2 2026?

The increase reflected interest accruals associated with converting deferred compensation to notes, potential bonus accruals and increased field-development activity. Payables and accrued liabilities rose to $22,981,671 at June 30, 2026, from $21,771,228 at March 31, 2026.