The Albany Gazette - EON Resources Inc. Increased Its Hedging Position to 60% for the Balance of 2026, and 50% for the First Quarter of 2027 Using Futures Contracts to Manage Risks

Hedging programs are used in the oil industry by utilizing hedging contracts (or positions) to mitigate the risks of unfavorable price movement. Typically, the hedging position level is a balance of the percentage of current production compared to the cash requirements for operating expenses and debt service requirements. There are many types of hedging contracts. EON typically uses no-cost swaps (a set price per barrel), and no-cost collars (provides a range above and below a swap to take advantage of some potential upside at an amount that has a floor for the downside).

EON took advantage of higher oil price spikes in September 2025 and the last couple of weeks to lock in hedging contracts at favorable pricing. These recent contracts were all swaps and provide for an average price for oil of greater than $60.00 per barrel. EON has now established its hedging position at 60% of current oil production for the balance of 2026, and 50% for the first quarter of 2027. EON will continue to monitor oil prices to further enhance our hedging position as new production comes on line, and into the later quarters of 2027.

"There is no better time to buy oil properties and no better time to hedge oil," said Dante Caravaggio, President and CEO of the Company. "While we are long-term bullish, this is an election year, which means the markets may see some volatility. We can afford to build an advantageous hedge position, especially since right now EON is at the lower end of our forecasted oil production rate for the current year."

"EON has successfully used a target hedge price for oil of $60.00 per barrel or greater for the current 2026 and 2027 hedge contracts," said Mitchell B. Trotter, CFO of the Company. "Our current hedging level positions EON well for potential banking needs, acquisitions, and other growth opportunities."

"We spent two years stabilizing production and upgrading infrastructure, and we are seeing the positive results of this effort in the last half of 2025," said Jesse Allen, Vice President of Operations for the Company. "We are now expanding production by tapping into non-producing reserves. We are in a great position to strengthen our hedging program as potentially 92 horizontal wells over the next five years may be drilled under EON's farmout."

We encourage EON followers to read our letter to shareholders issued on January 21, 2026 to learn more about 2025 and how EON is positioned for 2026 and beyond. The shareholder letter can be found on the EON website under investor relations.

About EON Resources Inc.

EON is an independent upstream energy company focused on maximizing total returns to its shareholders through the development of onshore oil and natural gas properties in a diversified portfolio of long-life producing oil and natural gas properties and other energy holdings. EON's approach is to build an energy company through acquisition and through selective development of its properties. Class A Common Stock of EON trades on the NYSE American Stock Exchange under the symbol of "EONR" and the Company's public warrants trade under the symbol of "EONRWS". For more information on the Company, please visit the EON website.

About the Grayburg-Jackson Field Property

Our Grayburg-Jackson Field ("GJF") is located on the Northwest Shelf of the Permian Basin in Eddy County, New Mexico. The GJF comprises of 13,700 contiguous leasehold acres where the leasehold rights include the Seven Rivers, Queen, Grayburg and San Andres intervals that range from as shallow as 1,500 feet to 4,000 feet in depth. The December 2024 reserve report from our third-party engineer, Haas and Cobb Petroleum Consultants, LLC, estimates proven reserves of approximately 14.0 million barrels of oil and 2.8 billion cubic feet of natural gas. The mapped original-oil-in-place ("OOIP") is approximately 956 million barrels of oil. The Company has two production programs. The first is the existing waterflood recovery primarily in the Seven Rivers formation via the 550 wells already in place. The second is via a Farmout agreement in the San Andres formation where the recovery will primarily be under the horizontal drilling program that the Company expects to drill up to 90 new wells over the next several years. More information on the property can be located on the Grayburg-Jackson Field page of our website.

About the South Justis Field Property

The South Justis Field ("SJF") is a carbonate reservoir similar to the rest of the Permian, and is located in Lea County, New Mexico approximately 100 miles from the GJF. The SJF is comprised of 5,360 contiguous acres containing 208 total producing and injection wells with well spacing of 50 acres. The producing formations include the Glorietta, Blinebry, Tubb, Drinkard and Fusselman intervals that range from 5,000 feet to 7,000 feet in depth. The original-oil-in-place ("OOIP") is approximately 207 million barrels of oil. More information on the property can be located on the South Justis Field page of our website.

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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