Slide 1: EON Resources Inc. Corporate Slide Presentation September 2024
EON Resources Inc. NYSE American: EONR Corporate Slide Presentation September 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 when the production was 400 BOEPD (barrels of oil per day) • Using a pilot test process, they increased to 1,200 BOEPD over an 18 months period • Due to lack of cap - ex and at
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: 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
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 GJ EON
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 – Q1 and Q2 Results
Financials – Q1 and Q2 Results 25 Six months June 2024 Q2 2024 Q1 2024 (Dollars in millions) 8.3 5.1 3.2 Revenues 6.3 3.1 3.2 Operations expenses 4.6 2.3 2.3 General and administrative (2.6) (0.3) (2.3) Operating income (4.3) (0.7) (3.6) Other income (expense) (6.9) (1.0) (5.9) Net income before tax
Slide 26: Revenues – $5 MM per Quarter of Cash Generated
Revenues – $5 MM per Quarter of Cash Generated 26 Q1 - 24 Q2 - 24 Revenues 4,971,150 4,885,959 Oil 178,608 128,084 Gas 130,588 130,230 Other 5,280,347 5,144,273 Without derivatives (1,997,248) (83,478) Derivatives 3,283,099 5,060,795 Total • Oil and gas sales and prices were similar • Derivatives im
Slide 27: Non-Cash Expenses
Non - Cash Expenses 1. Hedging derivatives : $2.0 MM impact in Q1 2. G&A : includes $574K in Q1 and $360K in Q2 for fees paid in stock 3. Warrant liability : change in the fair value resulted in a $277K pick - up in Q2 4. FPA liability : change in the fair value resulted in a $24K pick - up in Q2 5.
Slide 28: Equity Structure as of June 30, 2024
Equity Structure as of June 30, 2024 • Common stock : There were 5.4 million shares of Class A common stock and 1.8 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 • Preferr
Slide 29: Debt Structure as of June 30, 2024
Debt Structure as of June 30, 2024 • Reserve Based Loan (RBL”) : First International Bank and Trust (“FIBT”) provided at $28 million Reserve Based Loan (“RBL”) at acquisition closing. • The debt has a five - year amortization schedule with maturity in three years, and an interest rate of 15 percent.
Slide 30: Final Words
Final Words GJEON
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