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- **$40-50M Funding Close Imminent**: Debt reduction will cut monthly payments by $700K, targeting Q4 cash flow positivity.
- **Production Surge to 1,500 bpd**: Q2 up 15% to 920 bpd, with 3 rigs driving Grayburg-Jackson expansion.
- **Horizontal Drilling Potential**: 400-600 bpd per well in San Andres, set to begin late Q1 2026.
- **Cost Efficiency**: G&A down 33%, LOE reduced to $665K/month, and senior debt cut by 25%.
- **Strategic Partnerships**: Proven driller and funder secured, with Chevron committed to buying increased production.

**【CEO Summary Section】**
- EON Resources is nearing a $40-50 million funding close to retire $40 million in debt, reducing monthly payments by $700,000. Management expects to be cash flow positive by Q4 2025 and breakeven by year-end.
- Production increased from 800 to 920 barrels per day (bpd) in Q2, targeting 1,400-1,500 bpd by year-end through 3 rigs in Grayburg-Jackson and 1 rig in South Justis.
- Insiders own 3 million shares and plan to buy more, signaling confidence in the stock.
- The San Andres horizontal drilling program, targeting 400-600 bpd per well, is set to begin late Q1 2026 with a proven driller and funder.

**【CFO Financial Commentary】**
- Q2 revenue remained stable at $4.2 million (GAAP) due to $290,000 in hedging gains, despite a 13% oil price drop to $61/bbl.
- G&A costs decreased 33% YoY to $1.2 million, driven by lower professional fees and staff reductions.
- Senior debt reduced from $28 million to $21 million, with convertible notes down 42% to $5.6 million.
- S-1 shelf registration allows for up to 10 million shares at market price, with minimal dilution risk.

**【Operations Summary】**
- Grayburg-Jackson: 27 inactive wells reactivated, adding 60 bpd. Water injection repairs and acid stimulations boosted production by 52 bpd.
- South Justis: 6 inactive wells reactivated, increasing production from 88 to 117 bpd. Horizontal drilling potential identified with 50-acre spacing.
- Horizontal drilling program will use 4 rigs in Q3, targeting 400-600 bpd per well.

**【Q&A Highlights】**
- Oil prices expected to stabilize near $60/bbl, with Saudis unlikely to allow sustained sub-$60 prices.
- ORRI deals provide non-dilutive financing at 2-5x revenue, avoiding bank covenants.
- Management has decades of horizontal drilling experience (e.g., Jesse Allen at Chesapeake).
- 2026 hedging program underway, focusing on Grayburg-Jackson and South Justis.
- Legal and G&A costs being renegotiated, with insurance and accounting expenses under review.

EON Resources Inc. (EONR) Q2 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

EONR

EONR fundamentals

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