EON Resources reported a $10.1 million net loss for 2025 even as the company slashed its year-end debt from $48.9 million down to just $3.9 million, setting up what it calls a transformational shift for its Permian Basin operations in Eddy County, New Mexico. The company also began drilling new horizontal wells in the region in August 2026, the first phase of a program that could eventually total 92 wells.
The numbers tell a mixed story. Revenue fell to $16.9 million from $19.4 million in 2024, according to stocktitan.net, while a separate account from valuethemarkets.com put 2025 revenue at approximately $17 million compared with $19 million the prior year. Net oil production also slipped, declining to 246,557 barrels in 2025 from 250,686 barrels in 2024, the same reports show, as the average price EON received per barrel fell to $63.36 from $76.98.
Despite the softer top line, the balance sheet moved in the other direction. Interest expense dropped to $4.9 million in 2025 from $7.6 million in 2024, the report notes, while year-end debt shrank from $48.9 million to $3.9 million. Much of that turnaround traces to a $45.5 million funding transaction that closed in September 2025, which included the settlement of a $20 million promissory note for $7 million in cash.
How the September Deal Reshaped EON's Finances
The September transaction did more than retire debt. It also eliminated a preferred equity obligation, with EON retiring preferred units carrying a $27 million redemption value, per the same stocktitan.net account. As part of the arrangement, the company acquired a 10 percent overriding royalty interest in the Grayburg-Jackson Field.
Those moves came alongside a broader restructuring of EON's operations at Grayburg-Jackson, where the company returned 50 wells idled by infrastructure problems back to oil-producing status after repairs and rebuilds, the report states. The results release puts EON's Permian holdings at roughly 20,000 leasehold acres and estimates 1.2 billion barrels of original oil in place; its Grayburg-Jackson holdings comprise 13,700 contiguous leasehold acres in Eddy County, according to EON's own project page.
A 92-Well Bet on Horizontal Drilling
The centerpiece of EON's growth plan is a farmout agreement covering the San Andres formation, under which Virtus Energy Partners operates the horizontal development with a 65 percent working interest while EON retains 35 percent, per EON's project page. Three San Andres vertical wells were already recompleted at no cost to EON under the arrangement, and the first three horizontal wells are to be drilled at no cost to the company, the stocktitan.net account notes.
Horizontal development commenced in August 2026, with the Grayburg-Jackson program anticipated to include 92 wells over roughly four to five years, according to the valuethemarkets.com report. EON expects production and reserves to begin growing in the fourth quarter of 2026 as those initial horizontal wells come online. Separately, drillingcontractor.org reports EON expects to drill 10 horizontal San Andres wells by the end of 2026, with results to be released in the first quarter of 2027.
The driller also provided $2 million for evaluation workovers on selected existing wells, and management estimates those completed workovers in the first three wells will add roughly 100 to 300 net barrels of oil per day to EON at no additional cost, the valuethemarkets.com account states. Drillingcontractor.org additionally notes that EON currently produces approximately 950 barrels of oil equivalent per day from the Seven Rivers formation at Grayburg-Jackson, along with about 100 barrels of oil equivalent per day from South Justis waterflood operations.
Regional Backdrop for the Permian Push
EON's expansion plans arrive as the broader Permian Basin is forecast to average 6.8 million barrels of oil per day in 2026, roughly 3 percent above 2025 output, according to the U.S. Energy Information Administration. That regional growth trajectory frames the stakes for EON's own bet on horizontal drilling in Eddy County, where the company is aiming to reverse a year of declining production and revenue with a multi-year well program.
Whether all 92 planned wells are ultimately drilled and placed into production remains to be seen, as multiple accounts describe the program as planned or anticipated rather than finalized. For now, EON's leadership is framing the September debt reduction and the start of horizontal drilling as the foundation for a turnaround that the company itself expects to become visible in production and reserve figures later this year.
