EON Resources Raises Sequential Revenue 19% as San Andres Tests Advance

EON Resources increased first-quarter revenue net of hedging derivatives by 19.4% sequentially to $4.22 million as it advanced horizontal drilling in New Mexico’s Permian Basin.

Total expenses fell 37% sequentially to $7.17 million. The company posted a net loss of $5.77 million, compared with a $6.45 million loss in the fourth quarter of 2025 and a $2.06 million loss in the first quarter of 2025.

Reported revenue after noncash derivative effects was $968,193, down from $4.51 million a year earlier. Noncash derivative losses totaled $3.25 million in the latest quarter, compared with $30,636 in the year-earlier period.

Net oil production declined to 54,247 barrels from 60,750 barrels in the fourth quarter and 62,702 barrels a year earlier. The average oil price increased to $80.82 per barrel from $54.54 sequentially and $70.06 a year earlier.

EON also restated its 2025 year-end results after identifying a $3.5 million overstatement in fourth-quarter depletion expense. The adjustment reduced the reported net loss by $2.6 million after tax, with the restatement filed Oct. 9, 2026.

The company permitted five vertical San Andres test wells and three horizontal wells during the first quarter. Three vertical wells were tested, and each produced oil in commercial quantities. The strongest well produced more than 100 barrels of oil per day.

Two horizontal wells reached a total depth of 4,000 feet and penetrated more than 6,000 feet of horizontal San Andres pay in September and October 2026. A third well encountered a high-pressure shallow-water zone and was plugged.

The two completed horizontal wells were expected to enter production in October 2026 using electric submersible pumps with capacity of 3,000 barrels of fluid per day. Testing results were expected in November, and commercial production from those wells has not been confirmed.

EON operates in the Grayburg-Jackson Field in Eddy County, New Mexico, as well as the South Justis Field in Lea County. Its San Andres program is designed to add horizontal production to existing waterflood operations. The company expects production and reserves to begin growing in the fourth quarter of 2026 as the first horizontal wells come online.