EON Resources Reports A 19% Increase in Revenues and Lower Costs for the First Quarter of 2026, Advances San Andres Horizontal Drilling as Early Tests Confirm Commercial Oil Production

Higher oil prices lifted revenue excluding derivatives sequentially, while non-cash derivative losses reduced reported revenue.

Rhea-AI Summary

EON Resources (EONR) reported first-quarter 2026 revenue excluding derivatives of $4.2 million and advanced its San Andres horizontal drilling program. That revenue rose from $3.5 million in Q4 2025 but fell from $4.5 million a year earlier. After a $3.25 million non-cash derivative impact, reported revenue was $968,193. The net loss narrowed sequentially to $5,772,595 but widened year over year. Operating and administrative costs fell sequentially but increased year over year.

Three tested vertical wells produced commercial oil quantities. Two horizontal wells reached total depth; a third encountered a high-pressure shallow water zone that required plugging. EON expects the two wells to begin production in October 2026, with results in November. March cash fell to $129,772 and debt rose to $7,379,383. The 2025 audit included a going-concern explanatory paragraph. A restatement reduced the 2025 net loss after tax by $2.6 million.

15 points · 0 major

NegativeiHow this balance works

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

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.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

1 major · 17 points

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

Positive

• Moderate point. Forward-looking: it has not happened yet and may not happen.Horizontal drilling reached total depth in two wells; EON expects production in October and results in November.
• Moderate pointInterest expense fell to $260,381 from $1,744,246 a year earlier, but rose from $210,549 sequentially.
• Minor pointSan Andres tests yielded commercial oil production from all three tested vertical wells; the best exceeded 100 BOPD.
• Minor point. Forward-looking: it has not happened yet and may not happen.EON previously projected average horizontal-well initial production of 400–600 barrels of oil per day.
• Minor point. Forward-looking: it has not happened yet and may not happen.EON expects production and reserves growth in Q4 2026 as San Andres horizontal wells come online.

10 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.EON expects higher prices and production to increase San Andres reserve value and upgrade its probable classification.
• Minor point. Forward-looking: it has not happened yet and may not happen.EON expects Grayburg-Jackson waterflood and South Justis reserve values to increase with higher oil prices.
• Minor point. Forward-looking: it has not happened yet and may not happen.Reservoir pressures lead EON to believe locations could exceed the original 92 planned.
• Minor pointAverage oil price reached $80.82 per barrel, versus $54.54 in Q4 2025 and $70.06 in Q1 2025.
• Minor pointUnhedged San Andres and South Justis production benefits from current elevated oil prices, EON said.
• Minor pointTax benefit increased to $1,543,114 from $704,869 year over year, but fell from $2,021,184 sequentially.
• Minor point. Forward-looking: it has not happened yet and may not happen.EON expects further reductions in insurance premiums, legal fees and accounting costs.
• Minor pointAccounts payable and accrued liabilities fell to $21,771,228 from $23,309,559 at December 2025.
• Minor pointDeferred tax liability fell to $3,287,278 from $4,830,392 at December 2025.
• Minor pointThe 2025 restatement reduced net loss after tax by $2.6 million, correcting overstated depletion expense.

Negative

• Major pointThe 2025 audit included a going-concern explanatory paragraph.
• Moderate pointNet loss widened to $5,772,595 from $2,056,518 year over year, but narrowed from $6,445,673 sequentially.
• Moderate pointReported revenue fell to $968,193 from $3,579,852 sequentially and $4,505,097 year over year.
• Moderate pointNet oil production fell to 54,247 barrels from 60,750 sequentially and 62,702 year over year.
• Moderate pointGeneral and administrative costs reached $2,406,571, above $1,808,890 year over year but below $5,817,918 sequentially.
• Moderate pointCash fell to $129,772 from $375,036 at December 2025.
• Moderate pointDebt rose to $7,379,383, primarily as deferred compensation and director fees became long-term notes.
• Moderate pointDerivative liabilities rose to $6,661,369 from $2,716,366 at December 2025.

9 minor points

• Minor pointRevenue excluding derivatives was $4,223,108, below $4,535,734 year over year but above $3,536,628 sequentially.
• Minor pointNon-cash derivatives reduced Q1 2026 revenue by $3,254,915.
• Minor pointLease operating costs reached $2,528,313, above $2,190,766 year over year but below $2,975,756 sequentially.
• Minor pointDepletion and depreciation reached $1,790,976, above $97,075 year over year but below $2,087,956 sequentially.
• Minor pointOther field costs reached $445,679, above $404,208 year over year but below $527,348 sequentially.
• Minor pointOther expense increased to $851,982 from $446,663 sequentially and $629,481 year over year.
• Minor pointEquity attributable to EON fell to $49,656,323 from $53,787,299 at December 2025.
• Minor pointOther liabilities rose to $1,987,821 from $1,956,147 at December 2025.
• Minor pointThe third horizontal well encountered a high-pressure shallow water zone that required plugging.

News Explained

As of March 31, 2026, EON Resources reported $129,772 in cash, equal to 38.2 days of its first-quarter operating cash use at that rate, sizing liquidity against the latest reported outflow.

Sources and calculations

• EON Resources first-quarter 2026 results release (2026-10-13)
• EON Resources first-quarter 2026 financial data (2026Q1)

• Available liquidity against the last reported quarterly operating outflow, in days at that rate $129,772 / ($305,976 / 90) = 38.2 days

Key Figures

Revenue, net of derivatives: $4.2 million Net loss: $5.77 million Vertical test wells producing commercially: 3 wells +5 more

Revenue, net of derivatives

$4.2 million

Q1 2026; versus $3.5 million in Q4 2025 and $4.5 million in Q1 2025

Net loss

$5.77 million

Q1 2026

Vertical test wells producing commercially

3 wells

San Andres tests

Best vertical test well production

Over 100 barrels of oil per day

San Andres test

Horizontal drilling progress

2 wells reached 4,000 feet total depth and penetrated over 6,000 feet of horizontal pay

San Andres wells drilled in September and October 2026

Expected initial production

400–600 BOPD

Previously issued expectation for San Andres horizontal wells

San Andres reserve value

$95.8 million PV-10

Prior estimate based on $59.25 oil; classified as probable

Net loss improvement from restatement

$2.6 million

2025 restatement; depletion expense had been overstated by $3.5 million

Historical Context

1 past event · Latest: Aug 26

1 event

1. Aug 26

   San Andres drilling

   24h Move

   +9.4%

   Three vertical recompletions delivered 140 BOPD; the first carried horizontal well began drilling.

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

Key Terms

bopd, pv-10, loe, dd&a, +1 more

5 terms

bopd technical

"over 100 barrels of oil per day ("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.

pv-10 financial

"estimated reserve value attributable to the San Andres horizontal well development was $95.8 million PV-10"

PV-10 is a valuation metric that estimates the present value of future oil and gas production cash flows, discounted at 10% and stated before income taxes. Think of it as the current price tag on a company’s proven reserves, calculated by shrinking future revenue streams to today’s dollars using a 10% rate. Investors use PV-10 to compare the relative worth of reserves and assess how much future production could contribute to a company’s value, much like comparing the upfront price of different rental properties based on expected future rent.

loe financial

"Lease operating expenses ("LOE")"

Loss of exclusivity (LOE) is when a product—most often a prescription drug—loses its legal protections (like a patent or market exclusivity), allowing competitors to offer similar versions. For investors, LOE is important because it usually leads to a sharp drop in sales and profit margins for the original maker, similar to a bakery losing the sole right to sell a popular recipe and facing many cheaper rivals; that change can materially affect a company’s revenue and valuation.

dd&a financial

"Depletion, depreciation and amortization ("DD&A")"

DD&A stands for depreciation, depletion and amortization, a combined non-cash accounting charge that spreads the cost of long-lived assets, mined or pumped natural resources, and intangible items over their useful lives. Investors watch DD&A because it lowers reported profits without affecting cash flow, so comparing it to cash generation and replacement spending helps assess whether a business is reinvesting enough or steadily running down its asset base—like tracking how quickly a car’s value, fuel and warranty are being used up to predict future repair and replacement needs.

going concern financial

"assuming that the Company will continue as a going concern"

Going concern is the accounting assumption that a company will keep operating and meeting its obligations for the foreseeable future. The phrase matters most when a company or its auditors disclose substantial doubt about it, a formal warning that the business may not have enough resources to continue without raising money, restructuring, or selling assets. That language in a filing or press release signals elevated financial risk.

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

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HOUSTON, TX / ACCESS Newswire / October 13, 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 and approximately 1.2 billion barrels of original oil in place. The Company has filed its 10-Q for the first quarter of 2026.

San Andres horizontal drilling program commenced

The next phase of growth for EON through the San Andres horizontal drilling program in Eddy County, New Mexico has begun. During Q1, 5 vertical San Andres test wells and the first 3 new horizontal wells were permitted.

The vertical wells test utilized existing vertical wells, where the San Andres interval was perforated and fraced in three separate shelves of the San Andres. Only 3 of the 5 vertical wells were used for the tests. All 3 wells produced oil in commercial quantities. The best well produced over 100 barrels of oil per day ("BOPD"). These tests encountered virgin reservoir pressures, which leads us to believe more drilling locations are possible above and beyond the original 92 planned.

In September 2026, horizontal well drilling commenced with two of the three wells reaching total depth of 4,000 feet and penetrating over 6,000 feet of horizontal San Andres pay in September and October of this year for a total drilling length of 10,000 feet. During the drilling of the third well, a high-pressure shallow water zone was encountered and had to be plugged. Future wells will utilize a longer intermediate casing string to avoid issues with this shallow water zone. We expect both wells to be on production this month using 3,000 barrels of fluid per day capacity electric submersible pumps. Results will be reported in November once well tests become available. EON previously issued an expected average of 400-600 BOPD initial production for horizontal wells.

As oil production from the San Andres horizontal drilling efforts comes on line, management expects the related reserves for the San Andres to increase. As previously reported, the Company's estimated reserve value attributable to the San Andres horizontal well development was $95.8 million PV-10 based on an oil price of $59.25, and were classified as probable. The current estimated SEC oil pricing is in the $77.00 to $78.00 range which is approximately $18.00 per barrel higher than the price used in the prior reserve value estimate. Both oil prices and expected production results are expected to increase our PV-10 value and upgrade the classification as the San Andres interval is developed.

Management also expects the reserve value to increase for the waterflood zones of the Grayburg-Jackson field ("GJF") which had been based on $64.54 per barrel (an approximate increase of $13.00 per barrel). The reserve values for the South Justis Unit ("SJU") had been based on an oil price of $64.25 and are also expected to increase.

All oil produced from the new horizontal and test vertical wells completed in the San Andres interval in the GJF are not hedged. The oil production from the SJU is also not hedged. The Company is, therefore, benefitting greatly from the current elevated oil prices.

Financial results for Q1 2026

The overall financial results for the first quarter of 2026 are very similar to underlying core results compared to past several quarters in 2025 as expected. Main differences in results relate to impacts from the September 9, 2025 recapitalization funding close and derivative impacts from changes in oil prices quarter to quarter.

The Company restated the year ended December 31, 2025 to reflect an improved net income position by $2.6 million. The restatement was filed on October 9, 2026 after determining on the prior day, October 8, that an error in the calculation of depletion expense for Q4-2025 had occurred. Depletion expense was overstated by $3.5 million and the net loss after tax decreased (improved) by $2.6 million.

Income Statement Highlights Table - Quarterly Comparisons

Compare Q4-25	Q1-2026	Q4-2025	Change
Net oil barrels	54,247	60,750	(6,503)
Average oil price	80.82	54.54	26.28
Revenues, net of derivatives	4,223,108	3,536,628	686,480
Non-cash derivatives	(3,254,915)	43,225	(3,298,140)
Revenues, as reported	968,193	3,579,852	(2,611,659)
Lease operating	2,528,313	2,975,756	447,443
Depletion & depreciation	1,790,976	2,087,956	296,980
Other field related costs	445,679	527,348	81,669
General and administrative	2,406,571	5,817,918	3,411,347
Total expenses	7,171,539	11,408,978	4,237,439
Gain on debt forgiveness	-	19,481	(19,481)
Interest expense	(260,381)	(210,549)	(49,832)
Other income (expense)	(851,982)	(446,663)	(405,319)
Total other	(1,112,363)	(637,731)	(474,632)
			-
Tax (expense) benefit	1,543,114	2,021,184	(478,070)
Net income (loss)	(5,772,595)	(6,445,673)	673,078

Q1 to Q1 Compare	Q1-2026	Q1-2025	Change
Net oil barrels	54,247	62,702	(8,455)
Average oil price	80.82	70.06	10.76
Revenues, net of derivatives	4,223,108	4,535,734	(312,626)
Non-cash derivatives	(3,254,915)	(30,636)	(3,224,279)
Revenues, as reported	968,193	4,505,097	(3,536,904)
Lease operating	2,528,313	2,190,766	(337,547)
Depletion & depreciation	1,790,976	97,075	(1,693,901)
Other field related costs	445,679	404,208	(41,471)
General and administrative	2,406,571	1,808,890	(597,681)
Total expenses	7,171,539	4,500,938	(2,670,601)
Gain on debt forgiveness	-	(391,819)	391,819
Interest expense	(260,381)	(1,744,246)	1,483,865
Other income (expense)	(851,982)	(629,481)	(222,501)
Total other	(1,112,363)	(2,765,546)	1,653,183
			-
Tax (expense) benefit	1,543,114	704,869	838,245
Net income (loss)	(5,772,595)	(2,056,518)	(3,716,077)

• Revenues: Revenue for the first quarter of 2026 net of hedging derivatives was $4.2 million compared to $3.5 million for Q4-2025 and $4.5 million for Q1-2025. Net oil production was lower by approximately 6K barrels in Q1-26 due to efforts to bring certain infrastructure and certain wells back online (production returned to Q4-25 level in Q2-2026). Oil revenues were positively impacted as the average oil price for Q1-2026 was $26.28 a barrel higher than in Q4-2025, and the average oil price was $10.76 a barrel higher than Q1-2025.The fluctuations in oil prices and the higher oil price at the end of March 31, 2026 resulted in a negative non-cash derivative impact to revenues of approximately $3.25 million in Q1-2026.

• Lease operating expenses ("LOE"): The LOE for the GJF maintains a consistent run rate of approximately $700K per month. The 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. Hence the increase in DD&A in Q1-2026 compared to Q1-2025.
• 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 from 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.
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 an emerging growth 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. In the fourth quarter of 2025, there were approximately $4 million in transaction driven costs which stemmed from the September 9^th funding close resulting in a reduction of G&A costs from Q4-2025 to Q1-2026.

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

1. Interest expense: The interest expense in Q1-2026 was $1.5 million lower than it was in Q1-2025 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: Q1-2026 had a net $850K of expense from derivative valuations of warrants and other financial instruments compared to $450K in Q4-2025 and $630K in Q1-2025.

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

	Mar 2026	Dec 2025	Change
Cash and cash equivalents	129,772	375,036	(245,264)
Accounts receivable	2,407,047	1,437,943	969,104
Prepaid and other current	1,201,868	1,262,463	(60,595)
Oil & gas properties	85,113,367	85,511,796	(398,429)
Other non-current assets	1,891,348	1,891,348	-
Total assets	90,743,402	90,478,586	264,816
Accounts payable & accrued	21,771,228	23,309,559	1,538,331
Debt (current & long-term)	7,379,383	3,878,823	(3,500,560)
Derivatives (various)	6,661,369	2,716,366	(3,945,003)
Deferred tax liability	3,287,278	4,830,392	1,543,114
Other liabilities	1,987,821	1,956,147	(31,674)
Total liabilities	41,087,079	36,691,287	(4,395,792)
Equity attributable to EON	49,656,323	53,787,299	4,130,976
Non-controlling interest		-	-
Total equity and liabilities	90,743,402	90,478,586	(264,816)

• Accounts receivable: The Q1-2026 accounts receivable balance increase of $970K was primarily due to higher oil prices in March 2026 versus December 2025.
• Debt Increase and Corresponding Accrued Liability Reduction: The $3.5 million debt increase and corresponding reduction in accrued liabilities was primarily due related parties converting amounts due for deferred wages and bonuses, and board of director fees to long-term notes payable instruments.
• Derivative Liabilities: The derivative liability for non-cash hedging increased due to higher oil prices at the end of March 2026 as an offset to the revenue impact for the quarter.

Required disclosure regarding our annual filings

EON Resources Inc. advises that, consistent with previous years, its financial statements include in its annual report on Form 10-K for the year ended December 31, 2025, contained an audit report from its Independent Registered Public Accounting Firm with an explanatory paragraph emphasizing that the Consolidated Financial Statements were prepared assuming that the Company will continue as a going concern. Release of this information is required by Section 610(b) of the NYSE American Company Guide and does not reflect any change or amendment to any of the Company's filings for the fiscal year ended December 31, 2025.

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.

What were EON Resources' Q1 2026 revenue and net loss?

EON reported $968,193 in revenue and a $5,772,595 net loss for Q1 2026. Revenue excluding derivatives was $4,223,108. Non-cash derivatives reduced revenue by $3,254,915.

When does EON Resources expect its first San Andres horizontal wells to produce oil?

EON expects two horizontal wells to begin production in October 2026, with well-test results reported in November. The company previously projected average initial production of 400–600 barrels of oil per day for horizontal wells; that is an expectation, not a reported horizontal-well result.

How will EON Resources address the water zone encountered during San Andres drilling?

Future wells will use a longer intermediate casing string to avoid issues with the shallow water zone. A high-pressure shallow water zone encountered while drilling the third horizontal well had to be plugged.

What reserve valuation supports EON Resources' San Andres development plans?

The previously estimated San Andres development reserve value was $95.8 million PV-10, a discounted reserve-value measure, based on oil at $59.25 per barrel and classified as probable. EON expects higher oil prices and production results to increase that value and upgrade the classification as development proceeds.

Why did EON Resources' oil production decline in Q1 2026?

The production decline reflected efforts to bring certain infrastructure and wells back online. Net production was 54,247 barrels in Q1 2026, compared with 60,750 in Q4 2025. Production returned to the Q4 2025 level in Q2 2026.