EON Resources Inc

Management did not disclose full reported revenue or EPS figures on the call, but said overall production was stable at about 250,000 barrels per year for the last two years. Dante Caravaggio said 2025 saw a $45 million raise, $68 million of debt and obligations paid off, and a $14 million gain. Mitch Trotter said lease operating expense fell by $0.5 million year over year, G&A was reduced by a net $1 million, and interest expense dropped $2.7 million year over year. Trotter also said the company had $13.5 million of gains related to the September 9 funding. Forward-looking comments included expected first horizontal well spuds in early to mid-June, about 10 additional horizontal wells by the end of 2026, and potential 2026 EBITDA of $4 million to $5 million, which Dante later suggested could be closer to $6 million with higher oil prices. Management said 75% of output is hedged through December 2027 and that hedging covers lease operating expenses through 2027.

Dante Caravaggio framed 2025 as a year that cleaned up the balance sheet and unlocked a longer growth runway. He emphasized that the Virtus farmout and the South Justis opportunity could drive a multi-year drilling program, and he repeatedly said the company is trying to minimize share dilution by using debt, overrides, or farmouts instead of stock. His tone was highly optimistic and promotional, but he did acknowledge execution risk, saying the company is waiting on well results and that Mother Nature and completion outcomes still matter.

Mitchell Trotter focused on the accounting complexity from the Grayburg-Jackson acquisition and the September 9 recapitalization/farmout, saying the 2024 10-K has been refiled and the 2025 10-K is nearly ready. On the numbers, he said production was stable, revenue was lower mainly because oil prices were down $13 year over year, LOE fell by $0.5 million, recurring G&A fell by $1 million, and interest expense dropped $2.7 million after debt retirement. He also said the company is maintaining about $500,000 of cash and that hedging was designed to protect lease operating costs through 2027, while leaving new production unhedged to benefit from higher prices.

Analysts asked about the structure of South Justis funding, G&A run-rate, expected EBITDA, well performance, NYSE compliance, dilution risk, and hedging. Management said South Justis funding is being sought in $2.5 million tranches with a temporary override structure, G&A is about $500,000 to $600,000 per month, and current-year EBITDA could be $4 million to $5 million, with Dante suggesting about $6 million after recent oil price increases. On the well program, management said the 5 vertical recompletions are prefunded, the 3 horizontal wells are also prefunded, success would be wells above 50 barrels per day for workovers and north of 400 to 500 barrels per day for horizontals, and results should be visible in June to July. On compliance and dilution, management said the 2024 and 2025 10-Ks should allow NYSE clearance, and that share issuance would only be used if needed for an acquisition or if debt/farmout funding falls short.