Eon Resources Inc. · AMEX:EONR
Eon Resources — Investor Presentation (November 2024)
32 slides from Eon Resources's investor presentation, Nov 18, 2024
Slide 1: EON Resources Inc. Corporate Slide Presentation November 2024
EON Resources Inc. NYSE American: EONR Corporate Slide Presentation November 2024
Slide 2: Disclaimer
Disclaimer • This presentation of EON Resources Inc . (“EON” or the “Company”) shall not constitute a “solicitation” as defined in Rule 14 a - 1 of the Securities Exchange Act of 1934 , as amended . • This presentation is not an offer, or a solicitation of an offer, to buy or sell any investment or
Slide 3: Disclaimer - Forward-Looking Statements
Disclaimer • Forward - Looking Statements • Statements in this presentation which are not statements of historical fact are “forward - looking statements” . Our forward - looking statements include, but are not limited to, statements regarding our or our management team’s expectations, hopes, belief
Slide 4: Investment Highlights
Investment Highlights 4 Plentiful Asset: 956 million barrels of OOIP – expect to triple proven reserves in next 3 - 4 years Increasing Production: Production expected to increase by 1,000 bbl/day in next 24 months Operation Excellence: Strategy to reduce lifting costs Capital Efficient: Oil Rich + W
Slide 5: EON Oil Potential is Huge
EON Oil Potential is Huge 5 The oil and gas quantities of the original - oil - in - place (“OOIP”), reserves and potential recovery are all based on reports and letters from our third - party engineering firm William M. Cobb & Associates, Inc. Specifically, the reserve report as of December 31, 2023
Slide 6: Growth Strategy
Growth Strategy
Slide 7: Five Strategic Priorities
Five Strategic Priorities 7 Build Team and Public Company Optimize Production Reduce Operating Cost Enhance Capital Efficiencies Build a Portfolio of Energy Assets Experienced Oil & Gas industry professionals with a strong network Potential untapped reserves in our 956 million of OOIP Opportunity to
Slide 8: The Team
The Team 8 Dante Caravaggio CEO & Director Mitchell B. Trotter CFO & Director David M. Smith, Esq. VP, General Counsel Jesse J. Allen VP of Operations • 40+ years of experience in the oil and gas industry. • Executive and program management positions with Kellogg Brown and Root, Parsons Corp, Jacobs
Slide 9: Optimizing Production
Optimizing Production • What was done? • Predecessor transitioned to a waterflood approach in the Seven Rivers zone in 2020 and increased production to 1,400 BOEPD over a two year period • Due to lack of cap - ex and attention, the production stabilized and then dropped to 900 BOEPD over last 1 ½ ye
Slide 10: Reducing Costs
Reducing Costs • The management team and the field leadership team are, on an on - going basis, reviewing areas to identify where we can: enhance maintaining the field; reduce lift and cap - ex expenditures; and increase production • Using a scientific and analytical approach is expected to reduce w
Slide 11: Responsible use of Capital Spend
Responsible use of Capital Spend • The Grayburg - Jackson oil field has 550 existing wells that can be utilized to recover proven reserves without new drilling, and hence significant upfront capital spend can be avoided • The team of petroleum engineers and geologists are studying well responses to
Slide 12: Industry and Acquisition Strategy Overview
Industry and Acquisition Strategy Overview • EON is an independent energy company with an acquisition and value creation strategy focused on building a company in the energy industry in North America that complements the experience of our management team and can benefit from our operational expertis
Slide 13: The Property
The Property
Slide 14: Grayburg-Jackson Oil Field Overview
• The first acquisition was the Grayburg - Jackson oil field which is a waterflood property operated by the EON subsidiary LH Operating, LLC (“LHO”) • The property is located on the Northwest Shelf of the Permian Basin which according to the U.S. Geological Survey contains the largest recoverable re
Slide 15: Permian Basin – Most Promising Oil Reserves in the U.S.
Anadarko , 6,587 , 7% Appalachia , 35,953 , 36% Bakken , 3,392 , 3% Eagle Ford , 7,508 , 7% Haynesville , 16,559 , 17% Niobrara , 5,193 , 5% Permian , 24,745 , 25% Permian Basin – Most Promising Oil Reserves in the U.S. • Contributes 62% of the total oil output of the U.S. • C ontribute 25% to the o
Slide 16: Seven Rivers (7R) – Development History
10 100 1,000 10,000 10 100 1,000 10,000 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 Seven Rivers (7R) – Development History LH Operating Gross Historical Production (All Horizons) Depositional Setting LH Operating Regional Setting GYBG - JACKSON 120 MMBO Cum MALJA
Slide 17: Seven Rivers (7R) Waterflood Development
Seven Rivers (7R) Waterflood Development 7R PDP Response (95 Patterns) – Gross Oil (BOPD) 7R Waterflood Development Pilot Response Starts Early 2020 Current 7R Waterflood Response • LH Operating’s 7R WF work began late 2019 in the H E West B 4 - pattern pilot with initial production response in Febr
Slide 18: Regulatory Production Pool: 7R-Q-GB-SA
Regulatory Production Pool: 7R - Q - GB - SA Period Epoch Approx. Regional Thickness (ft) 200-400 100 1,000 200 200 500 200-500 300 1,500 100 Paddock Blinebry Tubb Drinkard 1,000 Wolfcampian 0-1,500 Guadalupian Leonardian 1,500 Formation Grayburg San Andres Glorieta Yeso Abo Wolfcamp Permian Ochoan
Slide 19: Waterflood Operations – Creating a Steady Revenue Stream
Waterflood Operations – Creating a Steady Revenue Stream • The waterflood process uses the injection of water into an oil - bearing reservoir for pressure maintenance to stimulate oil flow through the rock to the producing well for oil and gas recovery • A waterflood property has long - lasting, low
Slide 20: LH Operating Leases Land and Ownership Overview
• ~13,700 gross acres • 23 Leases (20 BLM and 3 State leases) • 100% WI with 74% average NRI • 100% Operated and 100% HBP • Original Oil in Place is 876,159,746 barrels of oil • Title opinion coverage on 97% of PDP PV10 value BLM Leases NM State Leases LH Leases with Title Opinion LH Leasehold <75%
Slide 21: The Oil Field
The Oil Field • The oil field has several large reservoir structures. The EON intervals range from as shallow as 1,500 feet deep to 4,000 feet deep • The EON field has attainable proven reserves of approximately 20 million barrels of crude oil and 5 billion cubic feet of natural gas • Original Oil i
Slide 22: Seven Rivers Full Waterflood Development (Gross BOPD)
Seven Rivers Full Waterflood Development (Gross BOPD) Cobb Report Projections Seven Rivers Future Development • The projections are based on the Cobb report • 253 pattern total development x 95 PDP patterns x Plus 115 PDNP and 43 PUD patterns x Patterns are a combination of producing wells and water
Slide 23: Financials
Financials
Slide 24: Accomplishments & Upcoming Targets
Accomplishments & Upcoming Targets 24 Incorporated in Delaware on December 9, 2020 SPAC IPO was effective on February 10, 2022 Became public company with first acquisition on November 15, 2023 1Q - Q2 - 24 Evaluate the producing wells to increase production Name change to EON Resources Inc. on Septe
Slide 25: Financials – Income Statement Summary
Financials – Income Statement Summary 25 • Revenues generated from cash was $5.0 million plus per quarter. Derivatives had a non - cash expense impact on revenues as described on another slide • G&A costs per month dropped $30K per month in Q3 • Lease operating expenses averaged $765K in Q1 and aver
Slide 26: Revenues – $5 MM+ per Quarter of Cash Generated
Revenues – $5 MM+ per Quarter of Cash Generated 26 • Oil and gas production were similar with prices increasing $4 range in Q3 • Derivatives impact is a non - cash expense • Hedging is at a responsible level with all hedges $70.00 or higher Q1 Q2 Q3 YTD Oil 4,971,150 4,885,959 5,275,254 15,132,363 G
Slide 27: Non-Cash Expenses
Non - Cash Expenses 1. Hedging derivatives : Driven by oil prices at end of each quarter 2. G&A : includes fees paid in stock of $574K in Q1, $360K in Q2 and $260K in Q3 3. Warrant liability : changes based on stock price at end of quarter 4. FPA liability : changes based on stock price at end of qu
Slide 28: Equity Structure as of September 30, 2024
Equity Structure as of September 30, 2024 • Common stock : There were 7.0 million shares of Class A common stock and 1.4 million shares of Class B common stock outstanding. • The Class B common stock has voting rights only and can be converted on a one - for - one basis for Class A common stock • Pr
Slide 29: Debt Structure as of September 30, 2024
Debt Structure as of September 30, 2024 • Reserve Based Loan (“RBL”) : First International Bank & Trust (“FIBT”) provided at $28 million RBL at acquisition closing. • The debt has a five - year amortization schedule with maturity in three years, and an interest rate of 15 percent. • The balance was
Slide 30: Final Words
Final Words
Slide 31: Investment Highlights
Investment Highlights 31 Plentiful Asset: 956 million barrels of OOIP – expect to triple proven reserves in next 3 - 4 years Increasing Production: Production expected to increase by 1,000 bbl/day in next 24 months Operation Excellence: Strategy to reduce lifting costs Capital Efficient: Oil Rich +
Slide 32: Thank you for your interest in EON
Thank you for your interest in EON
EON Resources — Investor Presentation (November 2024) on 6ix