EON Resources Inc.

Good day, everyone, and welcome to the Eon Resources, Inc. Announces Fiscal Year 2024 Earnings Call on April 23, 2025. At this time, all participants have been placed on a listen-only mode. If you have any questions or comments during the presentation, you may press star 1 on your phone to enter the question queue at any time, and we will open the floor for your questions and comments after the presentation. If you're listening on webcast, you can submit a question by clicking on the Ask Question button on the left of your screen. Type your question into the box and hit the Send button to submit your question. It is now my pleasure to turn the floor over to your host, Michael Porter. Sir, the floor is yours.

Thank you, Matt. Good morning, ladies and gentlemen, and welcome to the Eon Resources conference call. I have to read the forward-looking statements before we start. Then I'll turn the meeting over to management and there will be a Q&A session at the end. This conference call includes forward-looking statements within the meanings of the Private Securities Litigation Reform Act of 1995 that involves risks and uncertainties that could cause actual results to differ materially from what is expected. Words such as expect, believe, anticipate, intend, seek, may, might, plan, and any variations in similar words and expressions are intended to identify such forward-looking statements. Such forward-looking statements relate to future events or future results based on the current available information and reflect the company's management and current beliefs. The company's expectations are disclosed in the company's documents filed from time to time on EDGAR and with the Security Exchange Commission. With further ado, I would like to turn the call over to the president. Dante, the floor is yours.

Thank you, Mike. Welcome, everybody. Thanks for dialing in. Thanks for buying our stock. Thanks for your keen interest. We really do appreciate that. And I'd like to just state that this management team believes in our company. We're all purchasers of the stock. We're all owners of the stock. And we all believe we work for each of our shareholders. So I just want to start with that. Why invest in Eon Resources? You know, especially look at the world market right now. You've got volatility in the oil pricing. You've got tariffs that also impact oil prices. So why look at our little company, especially when we lost money last year and we're priced at half a dollar? So I want to start with the asset itself. We purchased an asset really at originally a price of $120 million, then rejigged it to $90 million, and then made an agreement with the seller to readjust it to $60 million. And it's got a billion barrels in place. So it becomes our number one place to shop. and yesterday we had a meeting internally to look at seven different acquisitions. At the top of the list is the repurchase of a 10% royalty from the seller for approximately $15 million. We have a binding agreement. We have a solid choice to fund this thing. It's going to easily be the most accretive transaction to this company, and it's already been released, so it's in the news. You can see it out there, so 100%. One of the Home runs we're going to hit this year is the purchase of a 10% royalty back from the seller. And we've got the funding in place to make that happen on or before June 10th. The 24 was a story of urban renewal. We had to repair and upgrade most of the field surface facilities. We replaced 14 flow lines that impacted homes. a bunch of wells. We had to replace 50 pumps. We had to improve electrical. We had to buy a hot oiler to cure plugging due to paraffin and upgrade our electrical system. So now, today, we have a very reliable field producing nominally 950 barrels a day with the thought that by the end of the year, we should increase that by 50%. We're working to restack our capital stack And again, the acquisition of the 10% royalty and the elimination of $40 million in shareholder liability, 20 of that is a seller note, 20 of that is preferred shares that just go away. And the acquisition of that royalty costs us about $20 million. So we're going to have to pay that cash on June 10th, and we've got in place – multiple sources of funding to make that happen. Also, we believe that by the end of the next couple of years, we're going to add 150 patterns, water flood patterns in the seven rivers formation. And these patterns are, they look like the top of a Las Vegas dice number five, where in the center you have a producer and on the four corners you have injectors. So we've got 95 of those working today that produce roughly 700 barrels a day, and we've got another 150 of those to go. In the funding with Onstream includes the funding to add another 50 patterns. So we figure of those 150 patterns, we can add 50 a year. On top of that, we've got another 200 workovers available to develop behind pipe potential. It's taken us a while to figure out how to stimulate these wells. We had, frankly, three failed frack jobs using fly ash, and now we're using 2040 sand with low-temperature resin, and we've had a success. And we've got another well that we think is going to be a success. So we've had to walk slowly before we spend the money. And what we're talking about here is taking workovers done by our predecessors that ran close to half a million and do those for $100,000. $100,000 getting essentially the same results. So it's taken us time to really work this out. So now we think we can hit the gas with those workovers. We also published on February 26 a press release regarding our horizontal drilling potential in the San Andreas where we identified 50 wells to develop another 20 million in recoverable reserves. Those wells will do 300, 400, maybe 500 wells barrels of oil per day. So they're humdingers, but we're going to be very cautious. We're looking at our offsets. We're learning from our competitors, and they've been very open about best practices. So we want to say a big thank you to all those that operate near us because they've really opened up their books to say this works, this doesn't work, and we're taking full advantage of that. With a drilling partner, we're hoping to go head-to-head 50-50 on the drilling costs, get them to help us on the first few wells, and then have at it. We've got 12 wells in the hopper right now to permit for drilling to commence in Q1 of 26. And we're planning on drilling, we think, five or six wells a year for the next 10 years. We're not going to just... hit it and go and blow. And that's just so that we can be cautious and cost-effective about what we do. So in summary, we expect a huge 26 and a much more improved 25. Developing the Seven Rivers water flood to get to an eventual 250 patterns at 20 barrels a day per pattern gives us a ton of oil. The San Andreas horizontal wells, 50 wells, at three, four, 500 barrels a day per well. Also gives us a ton of oil. Results from the infrastructure repairs and upgrades, we're seeing it now in the form of reduced decline rate. So if I'm leaving you with a message of why to invest with us, in 24, it was a disappointment that we didn't make more money, but we did fix the field. We did negotiate with the seller, I think a marvelous outcome to restack the capital stack, which saved shareholders $40 million. And we did complete engineering that pointed the way to a profitable future, which includes workovers, water flood expansion, and drilling. In 2025, we're going to make more oil. We're going to cut costs. You're going to hear Jesse talk about cutting costs in our operating to where our lifting costs per barrel is roughly $23, $24 per barrel. We need to do the same kind of cuts to our GNAs, so you're going to hear a little bit about that from Mitch Trotter. And then we're also going to make at least one acquisition this year with, frankly, our own royalty of our own property. But we're looking at more Permian properties. We're looking at gas. And we think there's lots of opportunities out there for us. In 26, it's going to be drilling. It's going to be extension of water flood patterns. And it's going to be workovers. Kind of more of the same, but just more of 25. And with that, I'm going to turn it over to Mitch, please.