EON Resources Inc (OTC: EONR) is an upstream oil and natural gas company that holds working interests in producing wells in the Northwest Shelf of the Permian Basin. Revenue comes from the sale of crude oil and natural gas production, with oil representing 86% and natural gas 14% of sales volumes for the year ended December 31, 2024. As of December 31, 2024, the company, through its subsidiary Pogo, held working interests across 13,700 gross acres and operated 342 shallow vertical producing wells, all above 4,000 feet depth. Royalty owners retain a weighted average 26% royalty on production. The company transitioned from a predecessor structure to its current form on November 15, 2023, following a business combination with HNR Acquisition Corp. Operations are concentrated entirely in one basin, with oil price realizations tied to NYMEX benchmark pricing, subject to differentials of $(1.03) per barrel in the year ended December 31, 2024. A senior secured term loan with First International Bank and Trust was in place as of the filing date.

Revenue model

Transactional revenue from the sale of crude oil (86% of sales volumes) and natural gas (14% of sales volumes) produced from working interests in the Permian Basin Northwest Shelf, for the year ended December 31, 2024. Pricing is referenced to NYMEX benchmarks with realized differentials.

Products and services

Crude oil and natural gas production from 342 shallow vertical wells as of December 31, 2024. Active development of the Seven Rivers waterflood interval. A 10% overriding royalty interest was transferred to related party Pogo Royalty effective July 1, 2023.

Customers and end markets

Oil and natural gas commodity markets. End market demand driven by energy prices. No specific customer concentration disclosed in the excerpts.

Value-chain role

Upstream oil and natural gas working interest owner and operator. Holds working interests in leasehold acreage and producing wells. Subject to royalty obligations to landowners and an overriding royalty interest held by related party Pogo Royalty.

Geographic exposure

Operations concentrated entirely in the Northwest Shelf of the Permian Basin as of December 31, 2024. Subject to New Mexico state regulation, including a 3.75% severance tax and combined production taxes of approximately 8-9% of market value.

Source: SEC 10-K, filed 2025-04-16

Industry: Crude Petroleum & Natural Gas