EON Resources (EONR) said Wednesday it fully hedged 75% of its net production through 2027 to capitalize on oil prices exceeding $110 per barrel due to the Iran war.
The hedging strategy is intended to secure favorable bank lending rates for potential capital raises for accelerated workovers, drilling, and acquisitions in 2026, the company said.
EON said it expects to bring 500 net barrels of oil per day on line over the next four months, with an additional 1,000 net barrels per day projected by the end of 2026.
The company said it plans to primarily self-fund the "significant" portion of its $14 million share of Q4 drilling costs, anticipating the unhedged production will generate roughly $3 million in monthly revenue by early 2027.
Operational activities are advancing rapidly with a secured drilling rig, submitted permits, restored waterflood program operating at nearly full capacity following a major pipeline replacement, EON said.
Shares of the company were down more than 7% in Wednesday trading.
Price: 0.81, Change: -0.06, Percent Change: -7.20
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