EON Resources, Inc. (formerly HNR Acquisition Corp.) reported significant financial changes in its 10-Q filing for the period ending September 30, 2024. The company experienced a decline in total revenues, reporting $7.4 million for the three months ended September 30, 2024, compared to $5.3 million for the same period in 2023. For the nine months ended September 30, 2024, total revenues were $15.7 million, down from $20.3 million in the prior year. This decrease is attributed to a 24% drop in oil and natural gas sales, primarily due to a 25% reduction in production volumes, despite a slight increase in realized prices.

Total expenses for the three months ended September 30, 2024, rose to $5.4 million from $4.7 million in the same quarter of 2023. The increase in expenses was driven by higher general and administrative costs, which surged to $2.2 million from $1.0 million, largely due to increased legal, professional, and accounting services, as well as stock-based compensation. The company reported an operating income of $2.0 million for the third quarter of 2024, contrasting with an operating income of $617,492 in the same quarter of 2023. However, the net loss for the third quarter of 2024 was $(3.8 million), compared to a net loss of $(651,152) in the prior year.

EON Resources' total assets increased to $103.2 million as of September 30, 2024, up from $100.7 million at the end of 2023. However, total current liabilities surged to $44.8 million from $20.1 million, contributing to a working capital deficit of $38.8 million, raising concerns about the company's ability to continue as a going concern. The accumulated deficit also widened to $(28.3 million) from $(19.1 million) at the end of 2023.

Strategically, the company completed a business combination with Pogo Resources, LLC, on November 15, 2023, which has impacted comparability in financial results. The company has also entered into a Common Stock Purchase Agreement with a maximum funding limit of $150 million, generating $1.2 million in cash proceeds from the sale of 1 million shares through September 30, 2024.

EON Resources reported a positive cash flow from operations of $3.3 million for the nine months ended September 30, 2024, although this was a decrease from $8.3 million for the same period in 2023. The company’s cash and cash equivalents stood at $2.7 million as of September 30, 2024, down from $3.5 million at the end of 2023. The company continues to focus on cost management and operational efficiency to improve profitability amid challenging market conditions.