EON Resources 2024 presentation slides: Net loss of $9.1M as company positions for growth

Introduction & Market Context

EON Resources Inc. (NYSE American:EONR) held its conference call on April 23, 2025, presenting its financial results and operational updates for 2024. The oil and gas company, currently trading at $0.48 per share in after-hours trading (up 3.23% from its regular session close), focused on its development plans for Permian Basin assets while addressing its financial performance.

The presentation highlighted the company’s efforts to position itself for future growth despite posting a net loss for the year. EON’s stock has experienced significant volatility over the past year, trading between $0.35 and $3.00, reflecting both the challenges and potential opportunities presented in the company’s development strategy.

Financial Performance Highlights

EON Resources reported total revenue of $19.4 million for 2024, with a net loss of $9.1 million. The company’s quarterly performance varied significantly throughout the year, with only Q3 showing profitability (net income of $1.16 million). Cash revenues averaged approximately $5 million per quarter, with oil production remaining relatively stable at around 62,000 barrels per quarter.

As shown in the following income statement summary, the company’s financial results were impacted by various operational and non-cash expenses:

The company’s oil revenues were primarily affected by fluctuating oil prices rather than production volumes, with average prices ranging from $67.05 to $83.80 per barrel throughout the year. EON maintained a responsible hedging strategy with approximately 70% of production hedged at $70 or higher for both 2024 and 2025.

The detailed revenue breakdown reveals the impact of both cash and non-cash components on the company’s top line:

General and administrative expenses totaled $10.4 million for the year, with significant portions attributed to equity-based costs ($2.8 million) and professional fees related to the company’s acquisition ($1.4 million). Management indicated these elevated costs were partially related to one-time expenses that should normalize in future periods.

Operational Updates and Development Plans

EON Resources emphasized its "world class Permian asset" with "1 billion original barrels in place" as the foundation for future growth. The company highlighted several key operational achievements in 2024, including stabilizing production, completing water and flowline repairs and upgrades, electrical system improvements, and reducing lease operating expenses from Q1 levels.

The presentation outlined two primary development strategies expected to drive production growth:

1. Seven Rivers formation development with fracturing operations expected to yield approximately 20 BOPD per well

2. San Andres horizontal drilling program with anticipated production of 300-400 BOPD per well

The following slide illustrates the potential financial impact of these development programs under various pricing scenarios:

The company has identified 50 potential horizontal well locations in the San Andres formation, which could significantly boost production if successfully developed. Management indicated the horizontal drilling program is expected to commence in 2026, with several potential drilling partners showing interest.

Balance Sheet and Funding Strategy

As of December 31, 2024, EON Resources reported total assets of $102.7 million, primarily consisting of property, plant, and equipment valued at $97.5 million. Total (EPA:TTEF) liabilities stood at $75.0 million, with equity of $27.7 million.

The company’s debt structure included a $23 million Reserve Based Loan (RBL) with First International Bank & Trust, a $15 million seller note, and $4.4 million in private loans and notes. Management highlighted several improvements to the balance sheet during 2024, including resolving an FPA contract and liability in Q4, clearing select payables through equity issuance, and beginning the conversion of private loans to long-term convertible notes.

EON’s equity structure consisted of 10 million Class A common shares and 500,000 Class B common shares, with 16.2 million warrants outstanding convertible to 12.5 million Class A shares at an exercise price of $11.50.

Forward-Looking Statements

Looking ahead, EON Resources outlined its funding strategy for future development, emphasizing a preference for balanced approaches over excessive equity issuance. The company highlighted volumetric funding (production/revenue sharing) as a preferred method that would avoid dilution while mitigating risk by tying payments to production and oil prices.

The investment thesis presented by EON Resources focuses on several key opportunities:

Management expressed optimism about the company’s future prospects, particularly regarding the horizontal drilling program in the San Andres formation and continued development of the Seven Rivers waterflood. However, investors should note that these forward-looking projections involve significant execution risk and depend on successful implementation of the company’s development plans.

While EON Resources presents a compelling growth narrative based on its Permian Basin assets, the company’s current financial performance reflects the challenges of early-stage development. Investors will need to weigh the potential upside against the execution risks and financial constraints as the company works to transform its asset base into sustainable profitability.

Full presentation:

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