EON Resources Reports A 19% Increase in Revenues and Lower Costs for the First Quarter of 2026, Advances San Andres Horizontal Drilling as Early Tests Confirm Commercial Oil Production

ECONOMY 13.10.2026

HOUSTON, TX / ACCESS Newswire / October 13, 2026 / EON Resources Inc. (NYSE American:EONR) ("EON" or the "Company") is an independent upstream energy company with approximately 20,000 leasehold acres in the Permian Basin and approximately 1.2 billion barrels of original oil in place. The Company has filed its 10-Q for the first quarter of 2026.

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San Andres horizontal drilling program commenced

The next phase of growth for EON through the San Andres horizontal drilling program in Eddy County, New Mexico has begun. During Q1, 5 vertical San Andres test wells and the first 3 new horizontal wells were permitted.

The vertical wells test utilized existing vertical wells, where the San Andres interval was perforated and fraced in three separate shelves of the San Andres. Only 3 of the 5 vertical wells were used for the tests. All 3 wells produced oil in commercial quantities. The best well produced over 100 barrels of oil per day ("BOPD"). These tests encountered virgin reservoir pressures, which leads us to believe more drilling locations are possible above and beyond the original 92 planned.

In September 2026, horizontal well drilling commenced with two of the three wells reaching total depth of 4,000 feet and penetrating over 6,000 feet of horizontal San Andres pay in September and October of this year for a total drilling length of 10,000 feet. During the drilling of the third well, a high-pressure shallow water zone was encountered and had to be plugged. Future wells will utilize a longer intermediate casing string to avoid issues with this shallow water zone. We expect both wells to be on production this month using 3,000 barrels of fluid per day capacity electric submersible pumps. Results will be reported in November once well tests become available. EON previously issued an expected average of 400-600 BOPD initial production for horizontal wells.

As oil production from the San Andres horizontal drilling efforts comes on line, management expects the related reserves for the San Andres to increase. As previously reported, the Company's estimated reserve value attributable to the San Andres horizontal well development was $95.8 million PV-10 based on an oil price of $59.25, and were classified as probable. The current estimated SEC oil pricing is in the $77.00 to $78.00 range which is approximately $18.00 per barrel higher than the price used in the prior reserve value estimate. Both oil prices and expected production results are expected to increase our PV-10 value and upgrade the classification as the San Andres interval is developed.

Management also expects the reserve value to increase for the waterflood zones of the Grayburg-Jackson field ("GJF") which had been based on $64.54 per barrel (an approximate increase of $13.00 per barrel). The reserve values for the South Justis Unit ("SJU") had been based on an oil price of $64.25 and are also expected to increase.

All oil produced from the new horizontal and test vertical wells completed in the San Andres interval in the GJF are not hedged. The oil production from the SJU is also not hedged. The Company is, therefore, benefitting greatly from the current elevated oil prices.

Financial results for Q1 2026

The overall financial results for the first quarter of 2026 are very similar to underlying core results compared to past several quarters in 2025 as expected. Main differences in results relate to impacts from the September 9, 2025 recapitalization funding close and derivative impacts from changes in oil prices quarter to quarter.

The Company restated the year ended December 31, 2025 to reflect an improved net income position by $2.6 million. The restatement was filed on October 9, 2026 after determining on the prior day, October 8, that an error in the calculation of depletion expense for Q4-2025 had occurred. Depletion expense was overstated by $3.5 million and the net loss after tax decreased (improved) by $2.6 million.

Income Statement Highlights Table - Quarterly Comparisons

Compare Q4-25	Q1-2026	Q4-2025	Change
Net oil barrels	54,247	60,750	(6,503)
Average oil price	80.82	54.54	26.28
Revenues, net of derivatives	4,223,108	3,536,628	686,480
Non-cash derivatives	(3,254,915)	43,225	(3,298,140)
Revenues, as reported	968,193	3,579,852	(2,611,659)
Lease operating	2,528,313	2,975,756	447,443
Depletion & depreciation	1,790,976	2,087,956	296,980
Other field related costs	445,679	527,348	81,669
General and administrative	2,406,571	5,817,918	3,411,347
Total expenses	7,171,539	11,408,978	4,237,439
Gain on debt forgiveness	-	19,481	(19,481)
Interest expense	(260,381)	(210,549)	(49,832)
Other income (expense)	(851,982)	(446,663)	(405,319)
Total other	(1,112,363)	(637,731)	(474,632)
-
Tax (expense) benefit	1,543,114	2,021,184	(478,070)
Net income (loss)	(5,772,595)	(6,445,673)	673,078

Q1 to Q1 Compare	Q1-2026	Q1-2025	Change
Net oil barrels	54,247	62,702	(8,455)
Average oil price	80.82	70.06	10.76
Revenues, net of derivatives	4,223,108	4,535,734	(312,626)
Non-cash derivatives	(3,254,915)	(30,636)	(3,224,279)
Revenues, as reported	968,193	4,505,097	(3,536,904)
Lease operating	2,528,313	2,190,766	(337,547)
Depletion & depreciation	1,790,976	97,075	(1,693,901)
Other field related costs	445,679	404,208	(41,471)
General and administrative	2,406,571	1,808,890	(597,681)
Total expenses	7,171,539	4,500,938	(2,670,601)
Gain on debt forgiveness	-	(391,819)	391,819
Interest expense	(260,381)	(1,744,246)	1,483,865
Other income (expense)	(851,982)	(629,481)	(222,501)
Total other	(1,112,363)	(2,765,546)	1,653,183
-
Tax (expense) benefit	1,543,114	704,869	838,245
Net income (loss)	(5,772,595)	(2,056,518)	(3,716,077)

Revenues: Revenue for the first quarter of 2026 net of hedging derivatives was $4.2 million compared to $3.5 million for Q4-2025 and $4.5 million for Q1-2025. Net oil production was lower by approximately 6K barrels in Q1-26 due to efforts to bring certain infrastructure and certain wells back online (production returned to Q4-25 level in Q2-2026). Oil revenues were positively impacted as the average oil price for Q1-2026 was $26.28 a barrel higher than in Q4-2025, and the average oil price was $10.76 a barrel higher than Q1-2025.The fluctuations in oil prices and the higher oil price at the end of March 31, 2026 resulted in a negative non-cash derivative impact to revenues of approximately $3.25 million in Q1-2026.

Lease operating expenses ("LOE"): The LOE for the GJF maintains a consistent run rate of approximately $700K per month. The SJU, which was acquired in late June 2025, has a run rate of approximately $130K per month in LOE.
Depletion, depreciation and amortization ("DD&A"): The year-end reserve reports are used to determine an estimated DD&A for the entire year. The quarterly estimated amount is used in the fourth quarter of the year, and for quarters going forward. Any retroactive adjustments to previously reported quarters are not made. In 2025, the extra charge to the fourth quarter was approximately $1.5 million due to lower reserves in the 2025 reserve report compared to the 2024 report. Hence the increase in DD&A in Q1-2026 compared to Q1-2025.
General and administrative costs ("G&A"): The G&A cost structure has two distinct classifications: baseline on-going costs and transaction driven costs.

Baseline or on-going G&A costs: The Company's on-going G&A cost structure has been trending lower over time from 2024, and is currently averaging approximately $600K per month. Management continues to focus on reducing the G&A cost structure, and expects to have further reductions in the areas of insurance premiums, legal fees and accounting costs.
Transaction driven costs in G&A: Under GAAP, many of the transaction driven costs which are logically below the line costs, are required to be classified as G&A. EON, as an emerging growth company, is always looking to improve its capital structure, and thus has transaction costs relating to acquisition, financial instruments, resolving and settling carry-over matters from before the De-SPAC of the Company, and other one-time filings and events. In the fourth quarter of 2025, there were approximately $4 million in transaction driven costs which stemmed from the September 9^th funding close resulting in a reduction of G&A costs from Q4-2025 to Q1-2026.

Other income and expense: Other main income and expense items related to financing costs and derivative valuations at fair market value ("FMV") of various instruments.

Interest expense: The interest expense in Q1-2026 was $1.5 million lower than it was in Q1-2025 due to the retirement of the senior debt on September 9, 2025, and the reduction of private loans and convertible notes across the year.
Derivative liability valuations: Q1-2026 had a net $850K of expense from derivative valuations of warrants and other financial instruments compared to $450K in Q4-2025 and $630K in Q1-2025.

Outlook for the remainder of the year: The Company believes it can continue to deliver stable production from its two core properties. Both production and reserves will begin to grow in the fourth quarter of 2026, as the first horizontal wells in the San Andres interval are drilled and come online.

Balance Sheet Highlights Table

Mar 2026	Dec 2025	Change
Cash and cash equivalents	129,772	375,036	(245,264)
Accounts receivable	2,407,047	1,437,943	969,104
Prepaid and other current	1,201,868	1,262,463	(60,595)
Oil & gas properties	85,113,367	85,511,796	(398,429)
Other non-current assets	1,891,348	1,891,348	-
Total assets	90,743,402	90,478,586	264,816
Accounts payable & accrued	21,771,228	23,309,559	1,538,331
Debt (current & long-term)	7,379,383	3,878,823	(3,500,560)
Derivatives (various)	6,661,369	2,716,366	(3,945,003)
Deferred tax liability	3,287,278	4,830,392	1,543,114
Other liabilities	1,987,821	1,956,147	(31,674)
Total liabilities	41,087,079	36,691,287	(4,395,792)
Equity attributable to EON	49,656,323	53,787,299	4,130,976
Non-controlling interest	-	-
Total equity and liabilities	90,743,402	90,478,586	(264,816)

Accounts receivable: The Q1-2026 accounts receivable balance increase of $970K was primarily due to higher oil prices in March 2026 versus December 2025.
Debt Increase and Corresponding Accrued Liability Reduction: The $3.5 million debt increase and corresponding reduction in accrued liabilities was primarily due related parties converting amounts due for deferred wages and bonuses, and board of director fees to long-term notes payable instruments.
Derivative Liabilities: The derivative liability for non-cash hedging increased due to higher oil prices at the end of March 2026 as an offset to the revenue impact for the quarter.

Required disclosure regarding our annual filings

EON Resources Inc. advises that, consistent with previous years, its financial statements include in its annual report on Form 10-K for the year ended December 31, 2025, contained an audit report from its Independent Registered Public Accounting Firm with an explanatory paragraph emphasizing that the Consolidated Financial Statements were prepared assuming that the Company will continue as a going concern. Release of this information is required by Section 610(b) of the NYSE American Company Guide and does not reflect any change or amendment to any of the Company's filings for the fiscal year ended December 31, 2025.

About EON Resources Inc.

EON is an independent upstream energy company focused on maximizing total returns to shareholders through the development of onshore oil and natural gas properties. EON's Class A Common Stock trades on the NYSE American under "EONR," and its public warrants trade under "EONR WS." For more information on the Company, please visit the EON website.

Two Permian Basin Assets, Multiple Development Horizons

Grayburg-Jackson Field (GJF): 13,700 contiguous leasehold acres in Eddy County, New Mexico, with stacked pay zones and almost 1 billion barrels of estimated original oil in place, of which less than 7% has been produced to date. The San Andres horizontal development program commenced in August 2026.

South Justis Unit (SJU): 5,360 contiguous acres in Lea County, New Mexico, with approximately 207 million barrels of original oil in place. EON's geologic and reservoir work on the Blinebry zone indicates development potential that management believes is similar in character to the opportunity identified in the GJF.

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties that could cause actual results to differ materially from what is expected. Words such as "expects," "believes," "anticipates," "intends," "estimates," "seeks," "may," "might," "plan," "possible," "should" and variations and similar words and expressions are intended to identify such forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Such forward-looking statements relate to future events or future results, based on currently available information and reflect the Company's management's current beliefs. A number of factors could cause actual events or results to differ materially from the events and results discussed in the forward-looking statements. Important factors - including the availability of funds, the results of financing efforts and the risks relating to our business - that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time on EDGAR (see www.edgar-online.com) and with the Securities and Exchange Commission (see www.sec.gov). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as expressly required by applicable securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

Investor Relations
Michael J. Porter, President
PORTER, LEVAY & ROSE, INC.
[email protected]

SOURCE: EON Resources Inc.

View the original press release on ACCESS Newswire

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The Fort Worth Press - EON Resources Reports A 19% Increase in Revenues and Lower Costs for the First Quarter of 2026, Advances San Andres Horizontal Drilling as Early Tests Confirm Commercial Oil Production

EON Resources Reports A 19% Increase in Revenues and Lower Costs for the First Quarter of 2026, Advances San Andres Horizontal Drilling as Early Tests Confirm Commercial Oil Production

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