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EON Resources (EONR)
:EONR
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EON Resources (EONR) AI Stock Analysis

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EONR

EON Resources

(NYSE MKT:EONR)

Rating:39Underperform
Price Target:
$0.50
▲(42.86% Upside)
EON Resources faces significant financial difficulties with high leverage and negative profitability, heavily impacting its overall score. Technical indicators suggest bearish momentum, and the company's valuation is unattractive due to a negative P/E ratio. While corporate events and earnings call insights indicate potential future improvements, current financial and technical challenges dominate the overall assessment.

EON Resources (EONR) vs. SPDR S&P 500 ETF (SPY)

EON Resources Business Overview & Revenue Model

Company DescriptionEON Resources (EONR) is a dynamic company operating primarily in the resource sector, focusing on the exploration and development of mineral resources. The company is engaged in identifying and acquiring high-potential mining projects, with a core emphasis on sustainable practices and innovative technologies. EONR aims to deliver value through responsible resource management and strategic partnerships, while contributing to the growing demand for minerals in various industrial applications.
How the Company Makes MoneyEON Resources generates revenue primarily through the extraction and sale of minerals from its mining operations. The company identifies high-value mineral deposits, conducts exploration activities, and develops these resources into commercially viable operations. Key revenue streams include the sale of mined minerals to industrial clients, partnerships with other mining entities, and potential royalties from joint ventures. Additionally, EONR may benefit from strategic alliances that provide access to advanced technologies and markets, enhancing its operational efficiency and profitability.

EON Resources Earnings Call Summary

Earnings Call Date:Aug 19, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 24, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant progress in production increases, cost reductions, and funding efforts, positioning the company well for future growth. However, there were challenges with temporary production dips and lower oil prices. The sentiment is overall positive as future prospects look promising with horizontal drilling plans and substantial funding progress.
Q2-2025 Updates
Positive Updates
Upward Production Trend
The company reported an increase in production from 800 barrels per day to touching the high 900s, with hopes to cross 1,000 steadily. This was achieved by running three rigs at Grayburg-Jackson and one rig at South Justis.
Cost Reductions
G&A costs decreased by $300,000 per quarter compared to the second half of 2024, and LOE costs dropped to $665,000 per month in Q2, down from last year's $718,000 per month average.
Funding Progress
The company is on track with funding efforts, targeting a funding level between $40 million and $50 million. The definitive document stage has been reached, passing due diligence and engineering, which are critical hurdles.
Debt Reduction
Senior debt has been reduced from $28 million to $21 million, and overall liabilities have been reduced by over $4 million, bringing it to about $5.6 million.
Horizontal Drilling Potential
Plans for significant horizontal drilling at Grayburg-Jackson and South Justis fields are underway, with potential production increases to 400-600 barrels per day per well.
Safety Performance
There have been no reportable incidents at the Grayburg-Jackson field since the company took over operations, highlighting strong safety protocols.
Negative Updates
Temporary Production Dip
Production dropped near the 800-barrel per day mark due to ongoing issues with a main trunk line on a water injection facility and downtime from asset stimulations.
Oil Price Drop
The average price of oil dropped from $70 to $61 per barrel, although hedging mitigated this impact on revenues.
South Justis Production Challenges
The South Justis field was producing about 88 barrels per day when acquired, with efforts to increase production to 117 barrels per day.
Company Guidance
During the EON Resources, Inc. Second Quarter 2025 Earnings Call, CEO Dante V. Caravaggio provided guidance highlighting several key metrics and strategies. The company intends to increase production from its Permian Basin properties, with current production at the Grayburg-Jackson field rising from a low of 800 barrels per day to approximately 920 barrels per day. Plans are in place to further increase production to between 1,400 and 1,500 barrels per day by the end of the year, supported by running three rigs at Grayburg-Jackson and one at South Justis. Caravaggio emphasized the strategic horizontal drilling program targeting the San Andres formation, anticipated to commence in late Q1 2026, which could add another 40 million barrels with an IP production rate significantly higher than current levels. Financially, the company is on track with its funding efforts, expecting to secure between $40 million and $50 million, which will be used to retire senior debt and seller obligations, potentially removing $40 million in debt from the balance sheet and $700,000 in monthly payments. The company projects becoming cash flow positive in Q4 2025, with an improved balance sheet following efforts to reduce interest expenses and general and administrative costs.

EON Resources Financial Statement Overview

Summary
EON Resources is experiencing significant financial challenges, with declining revenues, high leverage, and negative profitability. Despite a strong gross profit margin, the company struggles with negative net profit margins and weak cash flow, raising concerns about its financial sustainability.
Income Statement
45
Neutral
EON Resources shows a declining revenue trend with a negative revenue growth rate of -7.39% TTM. The company has a strong gross profit margin of 81.09% TTM, but it is overshadowed by a negative net profit margin of -31.26% TTM, indicating significant losses. EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.
Balance Sheet
30
Negative
The balance sheet reveals high leverage with a debt-to-equity ratio of 3.75 TTM, indicating potential financial risk. The return on equity is negative at -23.74% TTM, suggesting that the company is not generating sufficient returns on shareholders' equity. The equity ratio stands at 16.04% TTM, showing a low proportion of equity financing.
Cash Flow
25
Negative
Cash flow analysis indicates a negative operating cash flow and free cash flow TTM, with a free cash flow to net income ratio of -9.66. This suggests that the company is struggling to generate cash from its operations, which could impact its ability to sustain operations without additional financing.
BreakdownTTMDec 2024Dec 2022Dec 2021
Income Statement
Total Revenue18.19M20.27M40.20M0.00
Gross Profit14.65M16.15M35.10M0.00
EBITDA813.24K-138.76K24.12M-13.78K
Net Income-6.80M-9.08M18.30M-13.78K
Balance Sheet
Total Assets105.96M102.71M64.71M335.98K
Cash, Cash Equivalents and Short-Term Investments3.06M2.97M2.02M38.74K
Total Debt42.63M43.26M26.88M0.00
Total Liabilities67.75M74.99M36.20M224.76K
Stockholders Equity17.00M3.11M28.50M111.22K
Cash Flow
Free Cash Flow-5.35M125.62K1.76M-86.71K
Operating Cash Flow-346.53K3.70M18.65M-86.71K
Investing Cash Flow-5.00M-3.58M-20.70M0.00
Financing Cash Flow5.34M-659.52K3.00M100.45K

EON Resources Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.35
Price Trends
50DMA
0.35
Negative
100DMA
0.39
Negative
200DMA
0.56
Negative
Market Momentum
MACD
<0.01
Negative
RSI
52.93
Neutral
STOCH
57.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EONR, the sentiment is Neutral. The current price of 0.35 is above the 20-day moving average (MA) of 0.32, below the 50-day MA of 0.35, and below the 200-day MA of 0.56, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.93 is Neutral, neither overbought nor oversold. The STOCH value of 57.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EONR.

EON Resources Risk Analysis

EON Resources disclosed 63 risk factors in its most recent earnings report. EON Resources reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

EON Resources Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$17.89B11.9510.28%3.72%9.74%1.61%
62
Neutral
$569.03M28.927.58%-39.95%440.27%
47
Neutral
$5.49M32.18%
44
Neutral
$9.38M4.18199.77%71.05%
39
Underperform
$12.93M-135.30%
38
Underperform
$2.62M-408.12%-42.31%28.22%
22
Underperform
$6.21M-34.45%-106.67%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EONR
EON Resources
0.35
-1.21
-77.56%
AIHS
Senmiao Technology
2.36
-9.24
-79.66%
SUIG
Sui Group Holdings
6.93
4.19
152.92%
BSLK
Bolt Projects Holdings
4.55
-20.85
-82.09%
TRUG
TruGolf Holdings
4.17
-46.33
-91.74%
AIEV
Thunder Power Holdings Inc Class A
0.09
-0.59
-86.76%

EON Resources Corporate Events

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
EON Resources Plans Debt Retirement and Settlement
Positive
Aug 19, 2025

EON Resources Inc. reported its second quarter 2025 financial results, highlighting strategic initiatives to enhance its financial and operational standing. The company plans to retire senior debt and settle with Pogo Royalty, LLC through a funding arrangement with Enstream Capital Management, LLC, expected to close in September 2025. Additionally, EON is advancing a horizontal drilling program to potentially increase reserves by $100 million and has acquired the South Justis Field, which adds significant production capacity. Infrastructure enhancements in the Grayburg-Jackson Field are also underway to boost production. Financially, EON reported $4.6 million in revenue for the quarter, with cost reductions in lease operating expenses and general administrative costs, while maintaining a strong hedging position to mitigate oil price volatility.

Private Placements and FinancingRegulatory Filings and Compliance
EON Resources Enters Note Purchase Agreement with White Lion
Neutral
Jul 17, 2025

On July 11, 2025, EON Resources Inc. entered into a Note Purchase Agreement with White Lion Capital, LLC, to issue and sell convertible promissory notes totaling up to $1,200,000. The initial note of $600,000 was issued in exchange for $564,000 in cash, with a second closing option available until July 11, 2026. The agreement includes filing a registration statement with the SEC and a right of first refusal for White Lion on certain transactions. The notes accrue interest at 5% per annum, with potential adjustments, and can be converted into Class A Common Stock under specified conditions.

M&A TransactionsBusiness Operations and Strategy
EON Resources Acquires South Justis Field in Permian Basin
Positive
Jun 26, 2025

EON Resources Inc. recently acquired the South Justis Field in the Permian Basin, Lea County, New Mexico, on June 20, 2025. This acquisition, paid for with 1.0 million shares of Class A Common Stock, is expected to generate an estimated $1.2 million in net annual cash flow with minimal impact on the company’s general and administrative costs. The field, similar to EON’s LHO operations, spans 5,360 acres with 208 wells, and plans include reactivating 30 additional wells to boost production. This strategic move increases EON’s oil reserves by 20%, acreage by 33%, and production by 10%, highlighting the company’s growth potential and operational expansion in the region.

M&A TransactionsBusiness Operations and Strategy
EON Resources Acquires Major Stake in Permian Basin
Positive
Jun 23, 2025

On June 20, 2025, EON Resources Inc. announced that its subsidiary, EON Energy, LLC, has entered into a Purchase and Sale Agreement to acquire a 94% working interest in the South Justis Field in the Permian Basin, New Mexico. The acquisition, involving the exchange of 1.0 million Class A common shares, is expected to be accretive with an estimated $1.2 million in net annual cash flow. The South Justis Field, with 207 million barrels of original oil in place, currently produces 108 barrels of oil per day from 19 active wells. EON Energy plans to enhance production by returning idle wells to service and employing well stimulation techniques, aiming to double or triple production within a year. The acquisition positions EON Resources to leverage efficiencies of scale with its nearby Grayburg-Jackson Field and develop significant recoverable reserves.

Private Placements and FinancingBusiness Operations and Strategy
EON Resources Amends Agreement to Reduce Obligations
Positive
Jun 17, 2025

On June 17, 2025, EON Resources Inc. announced an amendment to its agreement with Pogo Royalty, LLC, which reduces its cash obligation by $1.5 million and its stock requirement by 1.5 million shares. This amendment, effective June 13, 2025, is expected to improve EON’s balance sheet and create immediate value for shareholders. The closing is anticipated by the end of July 2025, with Enstream Capital Management providing funding. The amendment also includes the retirement of a promissory note and the purchase of a 10% Overriding Royalty Interest in EON’s oil field property. The restructuring aims to address weakened oil prices and reduce obligations with cooperative efforts from the Seller and First International Bank & Trust.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
EON Resources Reports Improved Q1 2025 Financial Results
Positive
May 21, 2025

EON Resources Inc. reported improved financial results for the first quarter of 2025, driven by cost reductions and balance sheet improvements following the acquisition of LH Operating, LLC. The company has entered agreements to restructure debt and enhance operational efficiency, positioning itself for future growth. Key initiatives include a horizontal drilling program in the San Andres formation and infrastructure enhancements to stabilize production. EON’s efforts to reduce operating costs and optimize its debt structure are expected to enhance profitability in 2025 and beyond.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 21, 2025