EON Resources Reports 2025 Results, Advances Transformational Permian Growth Plan

Recapitalized balance sheet • Restored field infrastructure • 92 horizontal locations • Growth program underway

HOUSTON, TX / ACCESS Newswire / September 28, 2026 / EON Resources Inc. (NYSE American:EONR) 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 Annual Report on Form 10-K for fiscal year 2025.

2025 was a year of repositioning. EON recapitalized its balance sheet, restored key Grayburg-Jackson Field ("GJF") infrastructure, expanded its development inventory and moved into the next phase of growth through the San Andres horizontal drilling program.

2025 Transformation at a Glance

• Shareholder equity increased by approximately $20 million.
• Notes and similar obligation instruments were reduced by $42 million.
• Preferred shares were retired, eliminating a potential $27 million redemption value.
• Fifty GJF wells idled by infrastructure problems were returned to oil-producing status after repairs and rebuilds.
• EON added 92 San Andres horizontal drilling locations under the Farmout agreement.
• Three San Andres vertical wells were recompleted at no cost to EON; production results were better than expected and strengthened management's confidence in horizontal-well forecasts.

A Capital Structure Built for the Next Phase

On September 9, 2025, EON closed $45.5 million of funding. The transaction satisfied $20 million of senior institutional debt, eliminated approximately $700,000 of monthly principal and interest payments, settled a $20 million promissory note (including principal and accrued interest) for $7 million in cash, retired preferred units with a $27 million redemption value, and funded the acquisition of a 10% overriding royalty interest in the GJF for $13.5 million.

The balance-sheet impact was substantial: year-end debt declined to approximately $3.9 million from $48.9 million, while equity attributable to EON increased to approximately $51.2 million from $4.6 million.

92-Well San Andres Program: The Organic Growth Engine

In conjunction with the September 9 closing, EON entered into a Farmout Agreement with an experienced horizontal driller. EON retains a 35% working interest in the San Andres formation. Management expects as many as 92 horizontal wells to be drilled over the next several years.

• The first three horizontal wells are to be drilled at no cost to EON.
• Each horizontal well is expected by management to initially produce 300-500 gross BOPD which is approximately 100-200 net BOPD to EON.
• The horizontal driller provided $2 million for evaluation workovers on selected existing vertical wells.
• Completed evaluation workovers in the first 3 wells are estimated by management to add approximately 100-300 net BOPD to EON at no cost to the Company.
• Horizontal development commenced in August 2026, with the GJF program anticipated to include 92 wells over approximately four to five years.

2025 Results: Stable Production Despite Lower Oil Prices

Net oil production remained broadly stable year over year, with 246,557 net barrels in 2025 versus 250,686 in 2024. Revenue declined primarily because the average oil price fell to $63.36 per barrel from $76.98.

Financial results for 2025

A major positive in 2025 results was the recapitalization and Farmout on September 9, 2025, along with the related instruments and events that drove the overall financial results. Looking behind the numbers, a promising story is apparent for EON. The core numbers for 2025 and 2024 were very similar as expected based on generally stable production.

The main negative item in 2025 was the proven GJF waterflood reserves value in the year end reserve report for 2025 was dramatically reduced from the 2024 reserve report. The total reserve value dropped from $207 million at the end of 2024 to $80 million at the end of 2025. Key drivers leading to the drop were (i) the SEC oil price for 2024 was $77.10 which dropped by $12.56 per barrel to the 2025 SEC oil price of $64.54, (ii) the needed focus on improving required infrastructure versus allocating resources to increasing oil production, and (iii) the resulting delay in significant progress in the development plan as anticipated in the 2024 reserve report. The main impact to the 2025 results was the $5 million additional charge to depletion and depreciation in the fourth quarter. Management expects a rebound in the GJF waterflood program reserve value once we re-establish the development activities. Management also expects the reduced GJF waterflood reserves and values to return to prior levels during 2026 and 2027 with higher oil prices forecasted combined with increased activity to expand the GJF waterflood patterns. Once the GJF horizontal drilling program has a few months of operations, management expects to add approximately $100 million in reserve value. The potential of the GJF remains promising to increase despite the reserve report valuation for 2025.

Income Statement Highlights Table - Year to Date & Fourth Quarter

• Revenues: Revenue for 2025 was $17 million compared to $19 million in 2024. The net oil production was approximately 250K barrels of oil for both years. While overall production was similar, the average oil price for 2025 was $13.62 a barrel lower than in 2024, and for the fourth quarter the average oil price was $12.51 a barrel lower.The fluctuations in oil prices across 2025 resulted in non-cash derivative income of $251K for 2025 versus a non-cash derivative expense of ($367K) for 2024. Most of the 2024 impact was in the fourth quarter, which had a ($693K) non-cash derivative expense.
• Lease operating expenses ("LOE"): The LOE for the GJF was reduced from a run rate of $725K per month in 2024 to a stable $675K per month for all of 2025. The SJU was acquired in late June 2025 and added approximately $2.2 million of LOE in 2025, or approximately $370K per month in LOE. Other changes in LOE were from non-recurring adjustments.
• Depletion and depreciation: The year-end reserve reports record all retroactive adjustments in the fourth quarter. In 2025, the extra charge to the fourth quarter was approximately $5 million due to lower reserves in the 2025 reserve report compared to the 2024 report. The 2025 report reflected a $12.56 drop in SEC oil price. The amount of depletion and depreciation was impacted by a multitude of factors including production levels, oil prices and reserve reports. Under GAAP, the amount to record has been consistent.
• General and administrative costs ("G&A"): The G&A cost structure has two distinct classifications: baseline on-going costs and transaction driven costs.a. Baseline or on-going G&A costs: The Company's on-going G&A cost structure was reduced by $1.0 million from 2024 to 2025. Key drivers were reductions of approximately $200K in audit costs, $400K in legal costs and $400K in insurance premium costs. Management continues to focus on reducing the G&A cost structure. Management expects to have further reductions in insurance premiums and accounting areas.b. Transaction driven costs in G&A: Under GAAP, many of the transaction driven costs that are logically below the line costs, are required to be classified as G&A. EON, as an emerging growth company, always looking to improve its capital structure, 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 2024, there was $3 million in transaction driven costs. In 2025, there was $6 million in transaction driven costs of which $5 million stemmed from the September 9^th funding close.
• Other income and expense: Other main income and expense items related to financing costs, the funding event of September 9, 2025, and valuations at fair market value ("FMV") of various instruments. a. Interest expense: The interest expense for 2025 was $4.9 million down from the expense of $7.6 million in 2024 due to the retirement of the senior debt on September 9, 2025, and the reduction of private loans and convertible notes across the year.b. Amortization of financing fees: The amortization of financing costs from the initial business acquisition in November 2023 was $1.4 million for 2025.c. Gains: As a result of the funding and Farmout on September 9, 2025, there was a gain of $13.9 million on asset sales and forgiveness of debt.d. Derivative liability valuations: There was a net $2.0 million of expense from derivative valuations of warrants and other financial instruments in 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

• Cash and other non-current assets: The senior debt holder also provided letters of credit for required bonds for field operations. The Company had a $2.6 million cash reserve account with the senior debt holder that included the backing of the letters of credit. At the September 9^th closing, the senior debt was fully paid off. During 2025, the Company transferred money to a long-term deposit account from the bank reserve account as backing for the required field bonds.
• Oil & Gas Properties: Part of the September 9^th funding was the acquisition of a 10% ORRI in all of the GJF, and the selling of a 15% ORRI in the GJF waterflood and a 5% ORRI in the San Andres interval in the GJF. The accounting for the transaction included the reduction of the recorded book value of the oil and gas properties.
• Debt Reduction: The Sep 9th funding close included the retirement of the $15 million Promissory Note and the $20 million of senior institutional debt. The $45 million reduction of debt also included approximately $8 million reduction in convertible notes.
• Equity & Non-Controlling Interest: Included in the September 9th closing was the retirement of the preferred shares and all other components included in the $20 million of non-controlling interest. The balance was reclassified to equity attributable to EON.

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.