EON Resources Stock In Spotlight After Funding Agreement With Enstream Capital Management: Retail Sentiment Soars

Shares of upstream energy company EON Resources Inc (EONR) were in focus on Monday after the firm announced it signed a non-binding letter of intent with Enstream Capital Management, LLC for $22.5 million of well-completion funding (WCF).

EON focuses on the development of onshore oil and natural gas properties in the United States. Enstream Capital is a Dallas-based energy merchant banking firm that provides asset-level funding to oil and gas operators.

EON expects to use the WCF to develop 45 wells using low-cost workovers on its 13,700 leasehold acres in Eddy County, New Mexico.

Although details of the proposed production-sharing arrangement between the two firms have not been disclosed, EON said its objectives would be to improve production, increase revenues, net cash flow, and recoverable reserves over the next 12 months, with a goal of increasing gross oil production by 1000 barrels of oil per day (BOPD) to 2000 BOPD.

CEO Dante Caravaggio said the company expects to complete the transaction to begin production in the first quarter of 2025 and start having a positive impact on its financial condition in 2025.

Meanwhile, retail sentiment on Stocktwits jumped into the ‘extremely bullish’ territory (87/100) from ‘neutral’ a week ago.

EONR’s Sentiment Meter and Message Volume as of 1:16 p.m. ET on Dec. 2, 2024 | Source: Stocktwits

Stocktwits followers of the ticker expressed optimism about the firm.

The firm recently reported third-quarter earnings that showed revenue rising 40% year-over-year (YoY) to $7.4 million. Net loss for the quarter rose to $3.8 million, including the impact of non-cash charges of approximately $6.0 million, from $651,152 during the same period a year ago.

EONR shares have lost nearly 61% since the beginning of the year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<