Q3 2025 EON Resources Inc Earnings Call

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It is now my pleasure to turn the floor over to your host David Smith, Sir the floor is yours.

Good afternoon, everyone I have David Smith, I'm General counsel for the company.

Joining you this afternoon.

New.

Dante Caravaggio: Yeah. Well, thank you, David. I'll just start off by saying Happy Thanksgiving and Merry Christmas because this, I believe, is our last shareholder earnings call until next year. I think the main thought we want to leave with everybody is let's get the party started. We really had a mountain to climb. We wanted to fulfill all the promises and commitments that we made to our shareholders. Really, as David said, on 9 September, we really did that. We didn't leave a mess. The balance sheet is clean. The debt story is a good one. We're attractive for investors that will help us raise capital, buy new properties, and kind of off we go. I think the other thought I'll leave you with is inventory.

As we get started and go to review our Safe Harbor statement regarding todays conference call.

Please note that on this call we will be making forward looking statements made under the safe Harbor provisions of the U S. Private Securities Litigation Reform Act.

Of $19 95.

These statements are based on current expectations and assumptions, which are part.

Which are subject to risks and uncertainties. These statements reflect our views only as of today they should not be relied upon as representative of views as of any subsequent date.

We undertake no obligation to revise or publicly release the results of any revision to these forward looking statements in light of new information or future events.

These statements are subject to a variety of risks and uncertainties that could cause actual results to differ material materially from expectations.

Dante Caravaggio: This deal we did with Vertus, we've got in there the potential of drilling 92 horizontal wells. You have to really look hard at a lot of oil companies much larger than us to find 92 drillable wells in inventory. Well, we've got them. These are going to be big wells. The other thing we've got, again, I'll use that word inventory. We've got 350 producers sitting there at Graybird Jackson waiting for us to stimulate them, perforate them, and make them do better than they're doing. We're now in a position where the cash is there. We can invest in these things and get that to go. Our primary focus with regard to that is conversion of another 150 SVR water flood patterns. By way of history, this field at one point was down to 300 barrels a day.

Other information regarding these and other risks and uncertainties are included in the company's annual report.

On Form 10-K for the fiscal year ended December 31 2024.

And then the other documents filed with the U S Securities.

And Exchange Commission.

Today, I would like to introduce our presenters the executive management staff of the company you.

You'll see on the slide if you are participating in the webcast don't take care of Ico is our CEO.

Digital Trotter.

Our Chief Financial Officer.

By itself.

And just the Allen who is our vice president of operations.

Dante Caravaggio: It made it up to over 1,000 barrels a day primarily by converting current wells to SVR injectors and producers. Well, we're going to continue doing that same thing. The other thing we added to, I'll say, inventory of workovers is the purchase of the South Justice field. That field was down to 50 barrels a day. It's got 200 wells on it. We're going to activate those wells. Those wells, on average, make double or triple on a per well basis the oil per day that Graybird Jackson does. If I recap this, yep, we raised $45 million. We cleaned up the balance sheet with that. We sold an interest to Vertus to do some drilling in the San Andreas. Included in that is a $2 million fund to do some experimental workovers to test their theory of completions in the San Andreas.

To get started and to kick this off I'd like to make a few points about the third quarter.

It was a remarkable quarter.

We had record net income of $5 $6 billion, we retired all $41 million of <unk>.

Senior and sell our debt.

We retired all preferred shares that had a redemption value of $27 million.

And we increased shareholder equity by $22 $7 million.

In addition, we acquired a 10% override with the original seller group, we had retained it when we purchase.

<unk> <unk> field and the company that owned it.

Additionally, we were able to farm out.

The San Andres formation for our horizontal well drilling program in which we retained a 35% working interest throughout that program.

Myself and Jesse Allen, who is our vice president of operations?

Dante Caravaggio: That's going to give us a near-term kick in production. The farm out, I think we discussed that. Going forward from that, we've got an awful lot of work just to increase production, I believe, by 500 barrels a day without drilling over the next six to nine months, not counting what Vertus is going to be. That includes completing a water injection line. You're going to hear Jesse talk about that, continuing to bring on wells that are offline by using the four rigs that are running, and then through stimulations. With that, I'm going to turn it over first to Mitch Trotter to talk about the finances.

This is in addition to the retention and continued development of the formations other than the Sen interest which includes R. R.

Uh, to get started and kick this off, I'd like to make a few points about the third quarter. It was a remarkable quarter.

Parent wells and producing program. So those are unaffected by this drilling program that will kick off next year.

We had record income of $5.6 billion. We retired all $41 million of senior and seller debt.

The thing to really note is this was all done and closed on September nine and we took on absolutely no debt to achieve these results.

We retired all preferred shares that had a Redemption value of 27 million.

And we increase shareholder Equity by 22.7 million.

So a remarkable time.

The drilling program that I've described will be over the next five years, we expect to build as many as 92 wells under that program.

In addition, we acquired a 10% override with the original seller group, who had retained it when we purchased the greyber Jackson Field and the company that owned it.

We will continue to remain debt, 35% working interest in that development.

Mitchell Trotter: All righty. Please advance to the financing highlights. Good. Well, thank you, Dante. Hello, I am Mitch Trotter, the CFO, and I thank all of you for attending today. As Dante and David so articulated, the 9 September funding resulted in major improvements to our Q3 financials. This highlight slot, it's the same one that's in the funding call deck. We've been through it before. I have it there mainly for reference so that you have the deck, and it can help you understand as I go through the parts of the financials. The sources of the $40.5 million of volumetric or ORI funding and the $5 million from the farm out agreement, they have many parts with differing GAAP treatment. We'll kind of go through that a little bit.

And there are multiple pay zones.

Throughout our acreage not just the San Andres. So we're going to continue to develop all that we can in that respect.

Additionally we were able to farm out the San Andreas formation for a horizontal. Well drilling program in which we retain a 35% working interest throughout that program.

Our current production is typically out of the <unk> River formation in our waterflood.

this is, in addition to the retention and continued development of the formations other than the send address, which includes our our uh,

We're seeing results already from our balance sheet being cleaned up with those transaction our ability to raise capital.

Current wells and producing programs are unaffected by this building program that will kick off next year.

Really been enhanced its really the look of a new company.

Our phone has been ringing off the hook with opportunities we're looking at acquisitions.

The thing to really note is this was all done and closed on September 9th and we took on absolutely no debt to achieve these results.

Always looking at enhancing reserves.

So a remarkable time.

Of course.

Throughout all of this our main focus is to get the stock price up that's what drives us every day.

Mitchell Trotter: The same thing for the uses where we retired the senior debt, we acquired the seller ORI, and we retired those preferred shares. All those major impacts flowed through the balance sheet, and some to the income statement. Let's move on to the balance sheet slide, and then let me kind of show where some of the big parts are on that. Again, this is a major improvement. I can't say it more times, but the slide you have here is a condensed version of what's actually in the Q, the 10-Q, and it best illustrates the impacts. How do we clean up the balance sheet with respect to debt, which has by far the largest impact? Again, we retired $21 million of senior debt.

The drilling program that I described will be over the next 5 years. We expect the bill is as many as 92 Wells under that program.

Those are the highlights that's what strikes me and my role here as general counsel as to what we're doing are very excited about the future and really pleased to introduce dot take care of Ico now too.

Uh, we will continue to remain that 35% working interest in that development.

And there are multiple pay zones.

You take it up from where I've described that to go here.

Throughout our acreage, not just the San Andreas. So we're going to continue to develop develop all that, we can in that respect.

Yes, well, thank you, David and I'll, just start off by saying happy Thanksgiving and Merry Christmas because this I believe is our last.

Shareholder earnings call until until next year.

And I think the main thought we want to leave with everybody is.

Let's get the party started so we really had.

Our mountain to climb we wanted to fulfill all the promises and commitments that we made to our shareholders and really as David said on September 9th we really get that and we didn't leave a mess. So the balance sheet is clean the.

Mitchell Trotter: We have a $1.5 million reduction in the debt that you will see comes through as a gain on the income statement, and I'll explain that in a little bit. We also retired that senior debt of $15 million with the seller, and it also eliminated a $5 million accrued interest. We did all that for $7 million, thus creating a $13 million gain that you'll also see when we go through the income statement in a minute. Do note that the convertible notes, they're still there, but we reduced them to $5.4 million from the original $9.8 million that was private loans and warrant obligations by the end of the quarter. The end result of all of this cleaning up of debt is we only have $1 million left of current debt, and the other $4.4 million is long-term debt.

Our current production is typically out of the 7 rivers and our water flow. Uh we're seeing results already from our balance sheet, being cleaned up with those transaction. Our ability to raise Capital as as really been enhanced. Uh, it's really the look of a new company. Uh, our phone has been ringing off the hook with opportunities, we're looking at Acquisitions. We're always looking at enhancing reserves. Uh, but of course,

Throughout all of this, our main focus is to get the stock price up. That's that drives us every day.

um,

The debt story is is a good one so were attractive for investors that will help us.

Raise capital by new properties and kind of off we go and I think the other thing I'll leave you with is is inventory.

This deal we did with Virtus.

We've got in there the potential of drilling 92 horizontal wells you have to really look hard at a lot of oil companies much larger than us defined 92 drill wells in inventory, where we've got them and these are going to be big wells. The other thing we've got.

Mitchell Trotter: We have a huge drop in our accrued liability. That was all good. Now, shareholder equity, that's also been transformed as well. The preferred shares, as David stated, had a $27 million redemption value, and it was retired for only 1.5 million common shares that we announced back on 9 September. This eliminated all the minority interest. Our equity is cleaned up with respect to all the miscellaneous things. The end result of our shareholder equity, the end result of the financing, the elimination of the debt instruments, the related gains, and all of that flowing through, our shareholder equity went up by over $22 million from Q2 to Q3. With that, let's go ahead and move on to the income statement slide, please.

Again, I'll use that word inventory we have.

3300, 50 producers sitting there at Graber Jackson waiting for us to stimulate them perforate.

And make them do better than they were doing and where we're now in a position where the cash is there we can invest in these things and get that to go and our primary focus with regard to that is conversion of another 150, SVR waterflood patterns and by way of his.

those are the highlights, that's what strike me. And my role here is general counsel as to what we're doing, I'm very excited about the future and really pleased to introduce Dante kerio now to, uh, to take it up from from where I've described Dante. Go ahead. Yeah, well, thank you David and, uh, I'll just start off by saying, Happy Thanksgiving and Merry Christmas because this I believe is our last uh, shareholder earnings call until until next year. And uh, I think the, the main thought we want to leave with everybody is uh, let's get the party started. So we we really had a, a, a, a mountain to climb. We wanted to fulfill all the promises and commitments that we made to our shareholders. And really, as David said on September 9th, we we really did that. And, and we didn't leave a mess. So, the balance sheet is clean. The

<unk>. This field at one point was down to 300 barrels a day. It made it up to over 1000 barrels a day, primarily by converting current wells to SVR injectors and producers what we're going to continue doing that same thing.

The the debt story is is a good 1. So we're attractive for investors that will help us uh raise Capital, buy new properties and and kind of off we go and I I think the other thought I'll leave you with is is inventory. You know this deal we did with vertus.

The other thing we added to I'll say inventory of Workovers.

Mitchell Trotter: This too is a condensed version, just like the balance sheet, to hopefully let you see things a little bit better. This, again, is a reset of our P&L going forward. The Q3 net income was the highest level to date at $5.6 million for the quarter. While most of that net income came from below the line, those gains were definitely earned by all the hard work we did. David did a really good job of articulating how we got there. What does that mean? There is that $13.4 million of gain. That is a combination of the seller note reduction, how the various ORIs and all the related costs relating to that are recorded for GAAP purposes. Then there is that $1.8 million gain, and that comes from the senior debt retirement plus a gain from settling an old fee.

Purchase of the South Justice field.

So that field was down to 50 barrels a day, it's got 200 wells on it we're going to activate those wells and those wells on average make double or triple on a per well basis. The oil per day that that great Bird Jackson does.

So if I recap this yep, we raised $45 million, we cleaned up the balance sheet with that we sold an interest of virtues to do some drilling in the San Andres included in that is a $2 million fun to do some experimental workovers to test the theory of.

Completions in the San Andreas So that's going to give us a near term kick in production.

We've got in there, the potential of drilling 92 horizontal Wells. You have to really look hard at a lot of oil companies, much larger than us to find 92 drillable wells, in inventory. Well, we've got them and these are going to be big Wells. The other thing we've got, again, I'll use that word inventory. We've got 30 350 producers, sitting there at greyber Jackson, waiting for us to stimulate them, perforate them and and make them do better than they're doing. And we're we're we're now in a position where the cash is there. We can invest in these things and get that to go and our primary focus with regard to. That is conversion of another 150, svr water, flood patterns, and, and by way of History, this field at 1 point was down to 300 barrels a day. It made it up to over a thousand barrels a day.

The the farm out I think we we discuss we discuss that.

And then.

Going forward from that we've got an awful lot of work just to increase production I believe by 500 barrels a day without drilling over the next six to nine months not counting what virtu is going to be and that includes completing a water injection line youre going to hear Jeff's you talk about talk about.

Mitchell Trotter: Now, offsetting these gains, there's $1.1 million of one-time expenses. GAAP has us include up in the G&A versus down below the line. GAAP required this grouping of the $1.1 million one-time charges in G&A, which personally I think is misleading, but that's where it is. The actual recurring G&A expenses continue to decline quarter over quarter, and that's a huge improvement. That's what we've been talking about all year long, and we're pleased to say that. Another cost reduction, as we stated on the funding call, is a decrease of interest expense of up to $500,000 a month. Most of the interest for September was eliminated with the 9 September 2023 funding, and you can see that in the reduction of about $1.7 million down to $1.2 million interest expense for the quarter.

Primarily by converting current Wells to svr injectors and producers well we're going to continue doing that same thing. Uh, the other thing we added to I'll say inventory of work overs is the purchase of the South Justice field. So that field was down to 50 barrels a day. It's got 200 Wells on it. We're going to activate those Wells and those Wells on average, make double or triple on a per well basis.

That.

The oil per day that Greyber Jackson does.

Continuing to bring on wells that are offline by using the four rigs that are running and then through stimulations and so with that thank you.

Going to turn it over first to Mitch Trotter to talk about the finances.

Alrighty.

Please advance to the financing highlights good well, thank you Don and Hello, I am much trying at the CFO and I. Thank all of you for attending today.

So if I recap this: yep, we raised $45 million, and we cleaned up the balance sheet with that. We sold an interest to Vertus to do some drilling in the San Andreas, which includes a $1 million fund to do some experimental workovers to test their theory of completions in the San Andreas. So that's going to give us a near-term kick in production.

um,

And David So articulated the September 9th funding resulted in major improvements to our Q3 financials.

The farm out. I think we discussed that.

This highlight slide it's the same one that's in the funding called back we've been through it before.

Mitchell Trotter: As always, I will tell you, we'll take questions at the end of this presentation and are willing to have individual discussions as well. With that, reach out to Mike Porter, our investment relations guy, and we'll do that. We've done that plenty of times with many of you. With that, I do want to move on to Jesse to review operations. Please advance to Jesse's slide. Thank you.

But they're mainly for reference so that you have the deck.

It can help you understand as I go through the parts of the financials.

Sources of the $45 million of volumetric or refunding in the $5 million.

On the farm out agreement they have many part with different GAAP treatment. So we will kind of go through that a little bit and the same thing for the uses where we retired the senior debt, we acquired the seller or when we retire those preferred shares.

And then um, going forward from that, we've got an awful lot of work, just to increase production, I Believe by 500 barrels a day without drilling over the next 6 to, to 9 months, not counting what virtus is going to be. And that includes completing a water injection line you're going to hear. Jesse talk about, talk about that.

Jesse Allen: Yes, good afternoon. I'm Jesse Allen, VP of Operations. Today I'll talk about some of the third quarter highlights from an operations viewpoint, in other words, our daily operations. I'll make a few comments about the San Andreas farm out to Vertus and some of those details. With that, safety, that's always foremost. One of the most important things that we can do is make sure that all our employees are safe. As a matter of fact, we've had no reportable incidents in this quarter, and we've not had any reportable incidents since we took over operations back in November of 2023. Combined production remains consistent above 1,000 gross barrels of oil per day in the two fields, the Graybird Jackson field and our South Justice field. Currently, we have four well service rigs operating across both fields.

All of those are major impacts flowed through the balance sheet and some of the income statement. So let's move on to the balance sheet Slide and then let me.

Continuing to bring online wells that are offline by using the four that are running and then through stimulation. So with that, I'm going to turn it over first to Mitch Droder to talk about the finances.

Show, where some of the big parts are on that.

You know again this is a major improvement can't say more.

But the slides you have yours condense version of what's actually in the queue.

The 10-Q.

And at best illustrates the impact.

How do we clean up the balance sheet.

With respect to debt, which has by far the largest impact.

We retired $21 million of senior debt.

And with that we have a 1.5 million reduction in the debt that you will see come through as a gain on the income statement and I'll explain that.

A little bit.

Jesse Allen: We have three rigs in the Graybird Jackson field, which is just outside Loco Hills, New Mexico, and one rig in the South Justice field area, which is just outside of Jal, New Mexico. One of the big projects that has been ongoing is the installation of two miles of injection pipeline. We're in the pressure testing mode right now, hooking up the injection wells and each of the injection well headers, and that's ongoing currently. We get to the biggie here, which is the San Andreas farm out to Vertus, which we can't say enough, it was a really good deal for both parties. We signed that on 9 September 2025. A few of the really big highlights are that horizontal drilling is scheduled to begin there in 2026.

So retired that senior debt of $15 million with the seller.

The sources of the 40.5 million of volumetric or refunding in the 5 million uh from the farm out agreement. They have many parts with different gaap treatment so we'll kind of go through that a little bit and the same thing for the uses uh where we retired, the senior debt and we acquired the seller Ori and we retire those preferred shares.

And it also eliminated 5 million accrued interest.

We did all of that for $7 million, thus, creating a $13 million gain that you'll also see when we go through the income statement in a minute.

All those major impacts flowed through the balance sheet and some to the income statement. So let's, uh, move on to the balance sheet slide. And then let me, uh,

Kind of show where some of the big parts are on that.

Do note that the convertible notes, they're still there, but we've reduced them to $5 4 million from the original nine 8 million that was private loans and warrant obligations.

You know, again, this is a major improvement. I can't say it more.

So by the end of the quarter. So the end result of all this cleaning up of debt is we only have 1 million left current debt in the other 4.4 as long term debt and we have a huge drop in our accrued liabilities. So that was oh good.

Times. Uh, but the slide you have here is a condensed version of what's actually in the queue, uh, the 10-Q, and it best illustrates that the impacts.

So how do we clean up the balance sheet? The with respect to debt which has by far, the largest impact

Again, we retired 21 million of senior debt.

No shareholder equity that's also been transformed as well.

<unk> preferred shares as David stated that hit of $27 million redemption value and it was retired for only one point.

Jesse Allen: Depending on the length of time it takes to get the BLM permits, that'd be the federal drilling permits, we think it'll probably be in the second quarter of 2026. Now, I need to let you all know that on our website, which is eon-r.com, you can find our horizontal drilling package or deck that details a little bit of what I'm going to talk about today. On our site, you go, of course, you're on the home page, you click on operations, then click the Graybird Jackson field, and then page down to the horizontal operations and then click on horizontal drilling, and that will get you that presentation. A few of those highlights, as a result of our farm out to Vertus, we got a cash consideration of $5 million. The post-deal working interest will be 65% Vertus and 35% for EON.

And with that, we have a $1.5 million reduction in the debt that you will see come through as a gain on the income statement, and I'll explain that in a little bit.

5 million common shares.

We announced back on September nine and this eliminated all of the minority interest. So our equity is cleaned up with respect to all the miscellaneous things.

The result of our shareholder equity.

We also retired that senior debt of 15 million with the seller and it also eliminated a 5 million accrued interest. And we did all that for 7 million thus creating a 13 million gain that you'll also see when we go through the income statement in a minute.

Result of the.

Financing the elimination of the debt instruments, the related games and all of that flowing through.

Our shareholder equity went up by over $22 million from Q2 to Q3.

Do note that the convertible notes are still there, but we reduced them to $5.4 million from the original $9.8 million. That was for private loans and warrant obligations.

By the end of the quarter.

So with that let's go ahead and move on to the income statement slide please.

So, the end result of all this cleaning up of debt is we only have $1 million left in current debt?

And then this too is a condensed version.

Just like the balance sheet to hopefully lets just see things a little bit better.

And the other $4.4 million is long-term debt, and we have a huge drop in our crude liability. So that was all good.

And this again is a reset of our P&L going forward.

Q3, net income was the highest level to date of $5 6 million for the quarter.

Well most of that net income came from blueline. Those gains were definitely earned by all the hard work, we did and David did a really good job of articulating how it got there so.

Jesse Allen: The plan is to drill 10 to 20 wells per year for the next five years. Initial production from those wells will be in the range of 300 to 500 barrels of oil per day per well. That's what we anticipate. The cost of each of those wells will be in the $3.5 to 4 million range. With that, I'll turn the call back over to Dante Caravaggio, our CEO and president.

So what does that mean, you're below the line, there's a $13 4 million.

Again, that's a combination of the seller note production how the various worries.

All of the related cost relating to that are recorded for GAAP purposes.

And then there's at 1.8 million gain and that comes from the senior debt retirement, plus a gain from the settling and old fee.

Now, shareholder Equity, that's also been transformed as well. The preferred shares as David stated that had a 27 million Redemption value, and it was retired from only 1.5 million common shares, uh, that we announced back on September 9th and this eliminated all the minority interests. So our Equity is cleaned up with respect to all the miscellaneous things. The end result of our shareholder Equity, the end result of the financing, elimination of the debt instruments, the related gains and all of that flowing through our shareholder Equity, went up by over 22 million from Q.

To the Q3.

Dante Caravaggio: Yeah, thanks, Jesse. What's next? Some of you may ask, are we a one-trick pony? Is this third quarter going to repeat? Was that a one-time deal? The answer is no. We have not rested on our laurels since we got the deal done. Maybe sometimes we got to get some stuff out of David, so we would sit on them. I have to work that out there. We're not happy with our costs. We want to cut about $200,000 a month out of our lease operating expense and another $200,000 a month out of the G&As. As Mitch said, we have a lot of one-time charges that hit us in Q3 that caused those costs to kind of go up, and they're gone. You might say, what was it? Well, we had a lot of help.

So, with that, let's go ahead and move on to the income statement slide, please.

Now offsetting these gains there's $1 1 million of one time expenses. The GAAP has this include up in the G&A versus down below the line.

And then, um, this too is a condensed version, just like the balance sheet. Hopefully, it will let you see things a little bit better.

GAAP retire required this grouping of the $1. One one time charges G&A, which personally I think is misleading, but that's where it is the actual recurring G&A expenses continue to decline quarter over quarter.

And this again is a reset of our P&L going forward. The Q3 net income was the highest level to date at $5.6 million for the quarter.

And that's a huge improvement and that's what we've been talking about all year long and we're pleased to say that.

Well, most of that net income came from below the line. Those gains were definitely earned by all the hard work we did. Uh, and David did a really good job of articulating how we got there. So,

Another cost reduction and as we stated on the funding column is a decrease of interest expense of up to 500 K a month.

Most of the interest for September was eliminated.

The September 9th funding and you can see that in the reduction of about a $1 7 million down to a $1.2 million.

Dante Caravaggio: We had a lot of brokers, we had a lot of attorneys, and they did a fabulous job, but now they're gone. They're off the payroll. Back to what's next. It's back to the inventories that I talked about before. We got 92 wells we believe we can drill. Between the two fields we've got, we've got 500 producers that we can do workovers on, and we can't get that all done in a year or even two years. Over three years, we're going to be busy. What that does is increases production. A lot of oil fields are in a decline mode, and people will use the term, you're buying a melting ice cube. It's hot. It's hot here today in Houston, Texas, but we're not that.

So what does that mean? You blow the line; there's that $13.4 million of gain. That's a combination of the seller note reduction, how the various stories, and all the related costs regarding that are recorded for GAAP purposes.

Interest expense for the quarter.

And as always I will tell you we will take questions at the end of this presentation and willing to have individual discussions as well with that reach out to Mike quarter.

And then there's that $1.8 million gain, which comes from the senior debt retirement, plus again from settling an old fee.

Our investment relations.

Now, offsetting these gains, there's 1.1 million of 1-time expenses. The Gap has us include up in the GNA versus down below the line.

Got it and and we will do that and we've done that plenty of times with many of you so with that I do want to move on to Jesse.

To review operations. So please advance to chassis slide thank you.

Yes.

Yes, good afternoon, I'm, Jessie Allen, our VP of operations and today I'll talk about some of the third quarter highlights from our operations viewpoint in other words, our daily operations and then I'll make a few comments about the St Andrews farm out two virtues and some of those details.

Gap retired. Required this grouping of the 1.1 one-time charges in GNA, which I personally think is misleading, but that's where it is. The actual recurring G&A expenses continue to decline quarter over quarter, and that's a huge improvement. That's what we've been talking about all year long, and we're pleased to say that.

Dante Caravaggio: We are a company rich with opportunity, and we are raising money to make sure we get this and get it going. Every quarter, we expect to see increased production in an increasing amount. One of my slides here, my top bullet says, we're going to improve financials with increased production through 2026. Well, we can see all the way to 2030. These numbers are just going to keep going up well beyond 2030. That's the magic, I think, of what we've got. Near-term production increase, we got to get the water line energized. Jesse talked about that. We think that within 90 days, we're going to get a kick in oil production because our waterflood is water starved because this four-inch supply line's not running. It's been that way for a year.

Another cost reduction as we stated on the funding call is a decrease of interest expense of up to 500 k a month.

So with that.

Safety that's always.

Foremost it.

One of the most important things that we can do is make sure that all our employees are safe.

Most of the interest for September was eliminated with the September 9th funding. You can see that in the reduction of about $1.7 million down to $1.2 million in interest expense for the quarter.

And as a matter of fact, we have had no reportable incidents in this quarter and we have not had any reportable incidents since we took over operations back in November of 2023.

Combined production.

<unk> consistent above 1000 gross barrels of oil per day in the two fields, the Gray bird Jackson field and Ourself Justice field.

Discussions as well. Uh, with that, reach out to Mike Porter, our investment relations uh Guy and um and we'll do that. We've done that plenty of times, with many of you.

so, with that, I do want to move on to Jesse

To review operations so please advance to Jesse slide. Thank you.

Currently we have four well service rigs operating across both fields, we have three rigs in the Gray bar Jackson field, which is just outside loco Hill's New Mexico, and then one rig in the South Justice field area, which is just outside of John in New Mexico.

Dante Caravaggio: Frankly, you haven't seen the effect of it because Jesse's been so good with stimulating wells, keeping them all going. You just haven't seen that effect. When we kick that thing in, it's going to be a real boost. I've got here we're going to do a material acquisition the first half of next year. I'm just going to say we see big numbers without taking on debt and without selling any shares, where we can be creative to buy properties. We are looking at these. We cannot tell you about it because it's top, top secret, but I can tell you we're working on it diligently to the point of how are we going to operate, how are we going to raise the funds, how do we do this without diluting shares, how do we do this without taking on debt.

One of the big projects that has been ongoing is the installation of two miles of injection pipeline.

Uh yes, good afternoon. I'm Jesse Allen, VP of Operations. And today I'll talk about some of the, uh, third quarter highlights from, uh, Operations' viewpoint. In other words, our daily operations, and then I'll make a few comments about the St. Andrews farm out to, uh, Vertus and some of those details.

So, with that safety, that's always a...

We're in the pressure testing mode, right, now and and hooking up of.

a foremost.

The injection wells in each of the injection well headers and so that's ongoing currently.

1 of our, the most important things that we can do is uh make sure that all our employees are safe.

And then we get to the big the Biggie here, which is the San Andres farm out two virtues, which.

We can't say enough. It was a really good deal for both parties, we sign that on the 19th of September of 2025.

And as a matter of fact, we've had no reportable incidents uh, in this quarter. And uh We've not had any reportable incidents since. Uh, we took over operations back in November of 2023.

The really big highlights are that horizontal drilling is scheduled to begin there in 2026 and depending on the length of time it takes to get to the.

Uh, combined production, uh, remains uh, consistent above a thousand gross, barrels of oil per day in the 2 Fields, the grey bird Jackson Field, and our South uh, Justice field.

Dante Caravaggio: We've got most of those questions answered. It's really going to be fun when we can talk about it. The horizontal drilling should commence in the second quarter of next year. That's going to be a blast. You're going to get a glimpse of that when Vertus does some workovers. We expect those workovers to happen in the next 60 days, and we'll do our best to report that, although that might be kept secret if it's too good because these guys have got something good, and they're under our hood. It's actually a battle to share much of that with everybody. The downside, oil prices are weak. We'd like them to stay above $60. We're encouraging everybody out there to drive to your destination, fill it up with premium, and stay under the speed limit, and be safe.

BLM permit that'd be the federal drilling permits we think it'll probably be in the second quarter of 2026 now.

Now I need to let you all know that.

Currently, we have 4 well service rigs operating across both fields. We have 3 rigs in the Grey Bird Jackson Field, which is just outside Loco Hills, New Mexico, and then 1 rig in the Justice Field area, which is just outside of Jaw, New Mexico.

On our website, which is a O N.

Dash, our dot com you can find our horizontal drilling.

Packaging or deck that details.

A little bit of what.

I'm going to talk about today and on our sites you go of course, you're on the home page you can click on operations, then click the Grasberg Jackson field, and then paid down to the horizontal.

1 of the big projects that has been ongoing is the installation of 2 miles of injection pipeline. We uh, we're in the pressure testing mode right now and and hooking up a a the injection Wells and each of the injection. Well headers, and so that's ongoing currently.

Operations, and then click on horizontal drilling and that will get you that presentation, but a few of those highlights.

And then we get to the big, the biggie here, which is the San Andreas Farm out to Vertus, which, uh, we can't say enough was a really good deal for both parties. We signed that on the 9th of September 2025.

We are as a result of our farm out two virtues.

Dante Caravaggio: We're mostly debt-free, but that helps us weather the storm. If we've got low oil prices and lower income, we can offset that with savings of close to $400,000 a month that we don't pay in interest. That expense is gone. We also can help that by just increasing production. We're in a good position if the worst happens and oil prices drop. Gas prices are increasing, which is a good thing, but we struggle to sell all our gas. The midstream buyer has struggled keeping their plant running. We're looking at options. We've got some shareholders reaching out to us, which we thank, with regard to using gas-fired turbines to generate power that could save us $70,000 a month. We could also use the same turbines to power up data centers or to power up Bitcoin mining.

We got a cash consideration of $5 million. The post deal working interest will be 65% virtues in 35 per cent for E. On.

A few of the really big highlights are that horizontal drilling is scheduled to begin there in 2026. Depending on the length of time it takes to get to the, uh...

The plan is to drill 10 to 20 wells per year for the next five years.

BLM permits—that'd be the federal drilling permits. We think it'll probably be in the second quarter of 2026.

Initial production from those wells will be in the range of three to 500 barrels of oil per day per well, that's what we anticipate and the cost of each of those wells will be in the three $5 million to $4 million range.

Now, I need to let you all know that, um, on our website, which is EON.

So with that I'll turn the call back over to Don take care of US you are CEO and president.

Yeah, Thanks, Jesse so.

What's next.

Some of you may ask is it are we a one trick pony as this third quarter going to repeat was that a one time deal and the answer is no. We have not rested on our lawyer lore lawyers laurels since we got that deal done.

Dante Caravaggio: All those things are being done by our competitors, and we really don't have the funds to experiment, but we are going to piggyback a proven solution. With that, I'm going to just wrap it up and say we're excited about where we're at. We're no melting ice cube, and we got great inventory to certainly carry us through the rest of this decade. With that, I'll turn it back over to David and Matt.

And maybe sometimes we gotta get some stuff out of David So we would sit on them. So I have to work that out there and we're not happy with our costs, we want to cut about 200000, a month out of our lease operating expense and another $200000 a month out of the G&A and as Mitch said, we have a lot of one time charges that hit.

R.com you can find our horizontal drilling uh, package or deck that details a little bit of what. I'm I'm going to talk about today. And on our site you go of course you're on the home page. You click on operations, then click the uh, Greg Jackson Field, and then page down to the uh horizontal operations, and then click on horizontal drilling. And that will get you that presentation. But a few of those highlights, um, we uh, as a result of our, our farm out to verus, um, we got a cash consideration of dollars. The post deal working interest will be 65% vertus and 35% for eon.

Um, the plan is to drill 10 to 20 wells per year for the next 5 years.

As in Q3 that caused those cost to kind of go up and they're gone and you might say what was it well we had a lot of help we had a lot of brokers, we add a lot of attorneys and and they did a fabulous job, but now they're gone they're off the payroll.

Initial production from those wells will be in the range of 300 to 500 barrels of oil per day per well, that's what we anticipate. The cost of each of those wells will be in the $3.5 to $4 million range.

David Smith: This is David here. Thank you. If you will go forward with the question and answer period that we've arranged.

So with that, I'll turn the call back over to Dante Caravaggio, our CEO and President.

Operator: Certainly. Everyone, at this time, we will be conducting a question and answer session. If you have any questions or comments, please press star one on your phone at this time. We do ask that while posing your question, please pick up your handset if you're listening on speakerphone to provide optimum sound quality. We do ask that participants please ask one question and one follow-up, then re-enter the queue. Once again, if you have any questions or comments, please press star one on your phone. Thank you. Your first question is coming from William Peters. Your line is live.

So back to what's next and it's back to the inventories that I talked about before we got 92 wells. We believe we can drill well between the two fields. We've got we've got 500 producers that we can do workovers on and we can't get that all done in a year or even two years, but over three years, we're gonna be.

Busy and what that does is increases production and a lot of oil fields.

Or are in a decline mode and then people will use the term you're buying a melting ice cube and it's hot it's hot here today in Houston, Texas, but we're not that we are a company rich with opportunity and we are raising money to make sure we get this and get it going.

Dante Caravaggio: Hi. Thank you for taking my call. Great balance sheet cleanup. Your stock seems to be a gentleman in the rough. My question was answered already, but I just wanted to reaffirm supplying energy to data centers, AI, mining, etc. Seems like a great future for the company if they could form some type of affiliation with somebody. I know you said money was tight, but to have that correlation would be great for the future. That's it. Thank you very much. Good holidays. Thank you, William. Yeah, thank you. The only note I'd say there is we just don't know enough yet. We're dabbling in it. We don't have a proposal, but we're asking for proposals for people who know how to take our gas and monetize it. Thank you for bringing that up. Okay. Good luck. Thank you very much. Bye.

And ever.

Every quarter, we expect to see increased production in an increasing them out and so one of my slides here My top bullet says, we're gonna improved financials with increased production through 2020 six well, we can see all the way to 2030 days.

Yeah, thanks Jesse. So, uh, what's next or you know some of you may ask is are we a onetick? Pony is a third quarter going to repeat was that a 1-time deal and the answer is no. We we have not rested on our lawyer lower lawyers Laurels since we got that deal done and maybe sometimes we got to get some stuff out of David so we would sit on them. So I have to work that out there. Uh, and we're not happy with our costs. We want to cut about 200,000 a month out of our lease operating expense, and another $200,000 a month out of the GNA. And as Mitch said, we have a lot of 1-time charges that hit us in Q3 that caused, uh, those costs to kind of go up and they're gone. And, and you, you might say what was it? Well, we had a lot of help. We had a lot of Brokers, we had a lot of attorneys and uh, and they did a fabulous job, but now they're gone. They're off the payroll.

These numbers are just going to keep going up well beyond 2030, yeah. That's the magic I think of what we've got.

Near term production increase we got to get the water line energized, yes. He talked about that we think that within 90 days, we're going to get a kick in oil production because our waterflood is water star because there's four inch supply lines not running it.

Um, back to what's next and it it's it's back to the inventories that I talked about before. We got 92 Wells, we believe we can drill between the 2 Fields. We've got, we've got 500 producers that we can do work overs on and we can't get that all done in a year or even 2 years but over 3 years we're going to be busy. And what that does is increases production and a lot of oil fields

And it's been that way for a year and frankly, you haven't seen the effect of it because just he's been so good with stimulating wells keeping them all going you just haven't seen that effect when we kicked out thing and it's gonna be it's gonna be a real a real boost.

Operator: Thank you. Once again, everyone, if you have any questions or comments, please press star, then one on your phone at this time. Please hold while I poll for questions. Thank you. That concludes our verbal Q&A. For those listening on webcast, you can submit a question at this time by clicking on the ask question button on the left of your screen. Type your question into the box and hit send to submit your question. I will now turn the call over to Mitchell Trotter for remaining questions.

I've got here, we're going to do a material acquisition the first half of next year.

I'm just going to say, we see big big numbers without taking on debt and without selling any shares where we can be creative to buy properties and we are looking at these we cannot tell you about it because it's top top secret, but I can't tell you we're working on it diligently.

Mitchell Trotter: All righty. Thank you, Matthew. The first two questions are very similar, and I think we've answered, but I am going to read through them or paraphrase them so Dante can answer a little bit more if needed. Just to the questions or to you, Dante, when do you expect the first horizontal drilling to start up, and with respect to the future and exploring the reserves that we've identified in the past and opportunities with this driller? With that, Dante.

To the point of how are we going to operate how are we going to raise the funds how do we do this without diluting shares how do we do this without taking on debt and we've got most of those questions answered. So it's really going to be fun. When we can talk about it.

Uh, or, or in a decline mode and and people will use the term. You're buying a melting Ice Cube and it's hot. It's hot here today in in Houston Texas but we're not that we are a company rich with opportunity and we are raising money to make sure we get this and get it going. And uh you know every quarter we expect to see increased production in an increasing amount. And so 1 of my slides here, my top bullet says we're going to improve financials with increased production through 2026. Well, we can see all the way to 2030. The these numbers are just going to keep going up. Well, beyond 2030, you know, that's the magic, I think of what we've got uh near-term production increase. We got to get the water line, energized, Jesse talked about that. We think that within 90 days, we're going to get a kick in oil production because

The horizontal drilling should commence in the second quarter of next year, that's going to be a blast youre going to get a glimpse of that when when virtues does some workovers and we expect those workovers to happen in the next 60 days and we'll do our best to report that although that might be kept secret if it's too good because.

Our water flood is water star because this 4-in supply lines not running, and it's been that way for for a year. And and frankly, you haven't seen the effect of it because Jesse's been so good with stimulating Wells, keeping them all going. You just haven't seen that effect when we kick that thing in, it's going to be a, it's going to be a real, a real boost.

Dante Caravaggio: Yeah. Once a month, Jesse or I are meeting with Lance Taylor and his team, and they've pretty much picked out the locations where they want to go, I'll say the first dozen. The steps they have to go through is go ahead and get those permitted. As a lot of folks know, the BLM was shut down, and the Trump administration is saying he's going to put the pedal to the metal to get drilling permits approved. My best guess, and I base it on the feedback I have from my colleagues at Vertus, is that the permitting should get into the feds this year, and hopefully it gets approved the end of first quarter, and then maybe the end of second quarter next year we're drilling. We should see results, we think, in June or July of 2026.

These guys are you know they've got they've got something good and they're under our hood. So.

It's actually a battle to share much of that with everybody. The downside oil prices are weak, we'd like them to stay above 60, and we're encouraging everybody out there to you know.

Drive to your destination, you know fill it up with premium and stay under the speed limit and be safe.

We're mostly debt free with that helps us weather the storm, if we've got a low oil prices and lower income.

Um, I've got here, we're going to do a material acquisition the first half of next year. I'm just going to say we see big, big numbers without taking on debt and without selling any shares, where we can be creative to buy properties. We are looking at these; we cannot tell you about it because it's top, top secret. But I can't tell you—we're working on it diligently to the point of how are we going to operate? How are we going to raise the funds? How do we do this without diluting shares? How do we do this without taking on debt? We've got most of those questions answered, so it's really going to be fun when we can talk about it.

We can we can offset that with a savings of close to $400000. A month that we don't pay any interest so that that that expense has gone.

We also can help that by just increasing production. So we're in a good position if the worst happens in oil prices drop.

Dante Caravaggio: By the way, the plan is to drill 10 to 20 wells a year, starting out with maybe six wells, start out, something like that. These things are not decided yet, and we do want a healthy oil price. Above $60 a barrel, it's a no-brainer. Below $60, we have to do some hard thinking. That's the best indication I can give you.

Gas prices are increasing so that's a good thing, but we struggled to sell all of our gas midstream buyer has struggled keeping their plant running and we're looking at options and we've got some shareholders, reaching out to us, which we think with regard to using gas fired turbines to generate power.

Uh, the horizontal drilling should commence the second quarter of next year. That's going to be a blast. You're going to get a glimpse of that when when vertus does some work overs and we expect those work overs to happen in the next 60 days. And we'll do our best to report that although that might be kept secret, if it's too good because you know, these guys are, you know, they've got they've got something good in the

Mitchell Trotter: All right. Thank you, Dante. The next question I will say is for me. The question is the EON warrants. They have two different expiration dates at two separate brokerage accounts. Any idea why? Well, there is only one expiration date, and that's five years from when we became the public company in November. We have found that more than two brokers have, whatever, they keyed in the wrong date into people's accounts as to when the expirations of the warrants go. It is November 2028. We can't control the brokers, but that's what they've done. We've reached out to them.

That could save a 70000 a month, we could also use this.

The same turbines to power up our data centers or the power up a bitcoin mining. So all those things are being done by our competitors and we're not we really don't have the funds to experiment, but we are going to piggyback a proven solution. So with that I'd just wrap it up and say were.

You're under our hood. So, um, it's actually a battle to share much of that with everybody. The downside is oil prices are weak; we'd like them to stay above $60, and we're encouraging everybody out there to, you know, drive to your destination, fill it up with premium, and, uh, stay under the speed limit and be safe.

We're we're excited about where we're at where no melting ice cube, and we got great inventory to certainly carry us through the rest of this decade and with that I'll turn it back over to David and Matt.

Uh, we're mostly debt free with that. Helps us weather. The storm if we've got uh, low oil prices and lower income. Uh, we can we can offset that with a savings of close to 400,000 dollars a month that we don't pay an interest so that that that expense is gone. Uh, we also can help that by just increasing production.

So, we're in a good position if the worst happens and oil prices drop.

And this is David here.

So you will go forward with a question and answer period, but we have a range.

Certainly everyone. At this time, we'll be conducting a question and answer session. If you have any questions or comments. Please press star one on your phone at this time.

Dante Caravaggio: Why don't we do this on that one, Mitch? I want to run that question by Matt, our SEC attorney, and just double-check that because—I am just saying this from memory, and I apologize, guys, for thinking on a call like this—some warrants were available by investors before we went public. I do not know if the dates did cascade in there depending on when you bought them before we went public.

We do ask that while posing your question. Please pickup your handset if you're listening on speaker phone to provide optimum sound quality.

We ask that participants. Please ask one question and one follow up then reenter the queue.

Gas prices are increasing. So that's a good thing, but we struggle to sell, all our gas, the Midstream buyer has struggled, keeping their plant running and we're looking at options and we've got some shareholders reaching out to us which we thank with regard to using uh, gas fire turbines to generate power. That could save us 70 a month. We could also use uh, the same turbines to power up uh, data centers or to power up a Bitcoin mining. So all those things are being done by our comp

And once again, if you have any questions or comments. Please press star one on your phone.

Thank you. Your first question is coming from William Peters Your line is live.

Mitchell Trotter: They're all gone. This is the IPO warrants, all from the initial IPO. The brokerage accounts have admitted that they've got it wrong. We will reconfirm the date, and I think that's important.

Alright, Thank you for taking my call great balance sheet cleanup.

Your stock seems to be a shot in the rock.

Competitors, and we're not. We really don't have the funds to experiment, but we are going to piggyback a proven solution. So with that, I'm going to just wrap it up and say we're excited about where we're at. We're no melting ice cube, and we have great inventory to certainly carry us through the rest of this decade. And with that, I'll turn it back over to David and Matt.

My question was answered already but I just wanted to reaffirm supplying energy to data centers.

Dante Caravaggio: Yeah, because I'm confused, and I think it's an excellent question. Let's just put it on the website so everybody knows, including me, because I—yeah, it's not clear in my head, so I apologize, guys.

Mining et cetera.

That's you. If you will go forward with a question-and-answer period that we've arranged.

It seems like a great future for the company if they could form some type of affiliation with somebody I know you said money was tight but to have that correlation would be great.

Mitchell Trotter: Yeah. No, no. That's fair. Just so everyone knows, we have an FAQ under our website on the investor page. I think it's under the governance or the documents. It's up on the right. We'll just add that FAQ to it so that we can then answer it there, so people can go look at it. Okay. Good point. I think, Dante, you've answered this one, but I'll give it to you again. At what barrel price does EON Resources start making money? I'll leave that to you.

Certainly, everyone at this time will be conducting a question and answer session. If you have any questions or comments, please press *1 on your phone at this time.

For the future.

That's it thank you very much.

Good holiday William Yeah, I think the only note I would say there is we just don't know enough yet we're dabbling in it we don't have a proposal, but we're asking for proposals for people, who know how to take our gas and monetize it.

We do ask that while posing your question, please pick up your handset if you're listening on speakerphones to provide optimum sound quality.

We do ask that participants please ask one question and one follow-up, then re-enter the queue.

And once again, if you have any questions or comments, please press *1 on your phone.

So thank you for bringing that up okay. Good luck. Thank you very much bye.

Your first question is coming from William Peters. Your line is live.

Thank you and once again, everyone. If you have any questions or comments. Please press Star then one on your phone at this time, please hopefully pull for questions.

Hi. Thank you for taking my call. Um, great balance sheet, clean up. Um,

Dante Caravaggio: Well, we make money now. I mean, really, if you look at what we're doing, we're in the red about $100,000. Mitch and I look at this. Today, we're in the red about $100,000, and I've asked Mitch, who controls G&As, and Jesse, who controls lease operating expense, to each cut $200,000. They've got a plan. I believe we're profitable right now at today's oil price. Certainly, if we can get oil prices to go up to $65 or $70, we don't have to work so hard. Certainly, if we buy some additional acquisitions, especially ones that don't cause the G&As to go up, which is what we believe is the case and what we're looking at, we really get a shot in the arm.

Thank you that concludes our verbal Q&A for those listening on webcast you can submit a question at this time by clicking on the ask a question button on the left of your screen type your question into the box and hit send to submit your question.

Your stock seems to be a judgment in the rough. My question was answered already, but I just wanted to reaffirm—I am supplying energy to data centers, AI mining, etc.

I'll now turn the call over to Mitch charter for remaining questions.

Alright, Thank you Matthew.

It seems like, uh, a great future for the company if they could form some type of, uh, affiliation with somebody. I know you said money was tight, but to have that correlation would be great, um, for the future. Um, that's it. Thank you very much.

First two questions are very similar and I think we've answered, but I am going to read through them or paraphrase him So don't take and.

Answer a little bit more if needed.

Just to the questions or you don't.

Good holiday. Thank you, William. Yeah, thank you. The only note I'd say there is we just don't know enough yet; we're dabbling in it. You know, we don't have a proposal, but we're asking for proposals from people who know how to take our gas and monetize it.

When do you expect the first horizontal drilling to start up and you.

So, thank you for bringing that up. Okay, good luck. Thank you very much. Bye.

Dante Caravaggio: I'm looking at really high-quality, highly profitable properties that will help us, but we don't really need anything to be profitable today. We just need to be a little better at controlling our costs, and it's well within our range. Remember, we got rid of a $700,000 principal and interest payment, so we've got lots of room to work. We were still paying down debt, but sadly, we leaned too hard on the ELOC, which created more shares in circulation. We are doing our best to not do that at all and make a go of it with just the production coming out of the ground, controlling our costs, and adding one or two acquisitions, hopefully in the next six to nine months, something like that. I hope that answers the question.

You know with respect to the knee.

This is the future and exploring the reserves that we've identified in the past and opportunities with the stroller.

Thank you. And once again, everyone, if you have any questions or comments, please press star, then 1 on your phone at this time. Please hold while I pull for questions.

Yeah.

Yeah. So once a month I'm, Jessie awry or meeting with Lance Taylor and his team and they've they've pretty much picked out the locations where they want to go I'll say the first does it so the steps they have to go through is go ahead and get those permitted and there's a lot of folks know that.

Thank you. That concludes our verbal Q&A for those listening on webcast. You can submit a question at this time by clicking on the 'Ask Question' button on the left of your screen. Type your question into the box and hit send to submit your question. I will now turn the call over to Mitch Trotter for the remaining questions.

M was shut down and and the Trump administration is saying he's going to put the pedal to the metal to get drilling permits approved but my my best guess.

Based on the feedback I have from my colleagues at Virtu is is it the permitting should get.

Into the into the Feds this year and then hopefully it gets approved at the end of first quarter and then maybe the end of second quarter next year. We're drilling we should see results. We think in June or July of 26.

Mitchell Trotter: Thank you. Yeah, thank you. Let me give this one to Jesse. What issues are you facing selling the gas?

Jesse Allen: Well, let's see. We're currently making about 600 to 700 MCF per day, or 700,000 standard cubic feet per day, to a plant. It's an older plant, the Malsumar plant, and they've been doing a lot of maintenance recently on their gas treating trains. They've been putting in some new lines. It's not only us that are being curtailed, it's also all the other operators that produce into that plant. The operator of the Malsumar plant has actually got another plant that they just got online, and they're lining that out now. We anticipate that in the not too distant future, we shouldn't have this issue of getting rid of all our gas.

You know, with respect to the new this, the future, and exploring the reserves that we've identified in the past, we are also looking at opportunities with this Stroller.

And by the way the plan is to drill 10 to 20 wells a year starting out with.

Maybe six wells start out something like that and these things are not decided yet.

We do want a healthy oil price above $60 a barrel. It's a no brainer below 60, we have to do some art thinking so that that's the best indication I can give you.

So, with that, yeah, yeah. So, once a month, Jesse or I are meeting with Lance Taylor and his team, and they've pretty much picked out the locations where they want to go. I'll say the first dozen. So, the steps they have to go through is to go ahead and get those permits, and there's a lot of folks know the BLM was shut down and um,

Alright. Thank you don't take the next question I will say is for me.

And the question is the E on warrants.

Have to different exploration dates at two separate brokerage accounts.

And the Trump Administration is saying he's going to put the pedal to the metal to get drilling permits approved. But my best guess, and I base it on the feedback I have from my colleagues at Vertus, is that the prayer meeting should get.

Any idea why well there is only one exploration date and that's five years from when we became a public company in November.

Jesse Allen: I'm sure that the genesis of that question probably came from, well, once you start drilling the horizontal wells and you're making a lot more gas, what are you going to do with that gas? That gas will go to that same plant. By that time, they should have worked out all the maintenance issues that they're having to perform, and then some of that gas will go to the new plant. We don't anticipate in the future having any gas sales issues and getting rid of our gas. I hope that answers the question right there.

We have found that more than two brokers have.

Into the feds this year, and then hopefully it gets approved by the end of the first quarter, and then maybe by the end of the second quarter next year, we're drilling. We should see results, we think, in June or July of 2026.

Whatever they keyed in the wrong date into People's accounts as to when the exploration of the warrants go so it is a.

And, by the way, the plan is to drill 10 to 20 wells a year, starting out with.

November of 28, so what we can't control the brokers, but but that's what they've.

Maybe six wells. Start out something like that.

They've done we've reached out to them why.

Why don't we do this on that one Mitch just because.

That I want to run that question by Matt R. R.

Mitchell Trotter: Sounds like it does. Okay. This one, Dante, is for you. Congratulations on the great third quarter with regards to the first three wells by Vertus. We'll be drilling by mid-2026. In your agreement with them, are they required to drill at least these first three wells regardless of the oil price at the time?

And, uh, these things are not decided yet, and we do want to help the oil price above $60 a barrel. It's a no-brainer. Below $60, we have to do some hard thinking. So, that’s the best indication I can give you.

Our FCC attorney and just double check that because and I'm just saying this from memory and I apologize guys for thinking on a call like this but the.

So Morris were available by investors before we went public and I don't know if the if the dates did cascade in there.

All of them before their thorough went public.

Dante Caravaggio: It's really their option when to drill. Those first three are solid gold to us because we call it a carry. We don't have to pay a dime. They front all that money. I believe they're going to drill as long as oil prices are—as long as oil prices don't collapse, I believe they're going to drill. I mean, is $55 okay? Is $50 okay? Is $45 okay? I don't know the answer to that, but they have five years to drill 18 wells to hold the rights to our San Andreas formation. We just feel confident. I mean, I'll just have to give my outlook on oil prices. If oil prices decline much below $60, it's not attractive for anybody to drill. What happens is the drillers and the oil producers all shut down. Then what happens? The fields just start declining.

Thank you, Dante the next question I will say is for me and the question is the Aeon warrant? They have 2 different expiration dates at 2 separate brokerage accounts. Uh, any idea. Why? Well, there is only 1 expiration date and that's 5 Years From when we became the public company in November.

They're they're all gone this is the the IPO warrants all from.

Initial IPO the brokerage accounts of admitted that they have got it wrong.

So, but we will or just from the date and I think.

News and it's I think it's an excellent question, let's just put it on the website, so everybody knows including me because I I yeah.

The we have found that more than 2, Brokers have whatever they keep in the wrong date and the people's accounts as to, when the expirations of the warrants go. So it is, uh, November of 28th. So, what we can't control the Brokers, but, but that's, uh, what they've, what they've done. We, we've reached out to them.

It's not clear in my head so I apologize guys. So yeah no no. That's that's fair and just so everyone knows we have an F. Ecu under our website on the Investor page I think it's under the governance or the documents.

Why don't we do this on that $1 Mitchell?

On the right we will.

Well just add that F. A Q2, it and so that we can then answer it there. So people can go look at it.

Okay. Good point.

So okay.

Dante Caravaggio: Oil prices will start going up as oil production drops. Now oil production drops, oil prices go up, drilling starts picking up. It is kind of a self-controlling loop. If oil prices go down, drilling slows down, decreases in production, increases. US slows down producing oil, oil prices go back up. As it goes up, drilling picks back up, production goes back up, oil prices come down. I think the search for equilibrium is what everybody's guessing. The number is probably going to be slightly above where people would drill. People, frankly, are reluctant to drill at $60. Our formation is pretty good, so we feel we have healthy economics at $60. A lot of people cannot drill without $70.

That that I want to run that question by Matt or an SEC attorney and just double check that because, and I'm just saying this from memory and I apologize, guys, for thinking on a call like this. But, you know, some warrants were available to investors before we went public. And I don't know if the dates did cascade in there, depending on where you bought them before they all went public.

Sure.

Thank you.

You've answered this one.

But I'll give it to you again at what price what barrel prices E on resources start making money.

They're they're all gone. This is the the IPO warrants all from uh

The initial IPO, the brokerage accounts have admitted that they've got it wrong.

And.

Well, we we make we make money now I mean really if you look at what we're doing where we're we're in there at about 100 Grant you know Mitch and I look at this.

Today, we are in the Red about 100 Grand and I've asked.

Mitch you controls G&A and gesture controls lease operating expense to each cut 200000, so if we end and they've got a plan.

So I believe where we're profitable right now at today's oil price certainly if we can get oil prices to go up to 65 or 70, then we don't have to work so hard and certainly if we buy some additional acquisitions, especially ones that don't cause the G and H to go up which is what we believe.

So but we will reconstruct the date and I think that's because I'm confused and it I think it's an excellent question. Let's just put it on the website so everybody knows you know including me because I I I yeah I it's not clear in my head so I apologize guys that I don't know. No that's that's fair and just so everyone knows, you know, we have an FAQ under our uh uh website on the investor page. I think it's under the governance or the documents, it's up on the right. We will um we'll just add that FAQ to it and so that we can then uh answer it there. So people can go look at it. Uh,

Okay, good point.

So, okay. Um,

As the case of what were looking at then where we really get a shot in the arm. So I'm looking at really high.

Dante Caravaggio: If you said, where will this sort of level out, and where will it be, and how does all this stuff kind of work? I mean, I feel like oil prices are going to hang in there, $60 to 70 with some excursions below that range and above that range. That's the best I can tell you. I hope that answers your question.

High quality.

I think Dante you've answered this 1 uh but I'll give it to you again. At what price? What Barrel price is aeon resources? Start making money.

Hi, Lee profitable properties that will help us, but we don't really need anything to be profitable today, we just need to be a little better at controlling our costs and it's well within our range remember, we got rid of a $700000 principal and interest payment. So we've got lots of room.

and um,

Mitchell Trotter: Okay. We have time for a few more questions. There's a couple more, but this one's for me. What convertible notes were redeemed and which have not been redeemed, and how did you decide which in the order to redeem? Going back in time, we've talked about converting the private loans and the warrant obligations into convertible notes all the way back into the end of 2024. As we have been stating, really every quarter, our intent is to try to clean up all of this by the end of this year, at least with respect to the non-insiders. That's what we've just about done. All of these private loans came from people that were close to us when we were a SPAC and had no source of income. That's what got us across the line to begin with.

To work in.

And.

We were still paying down debt, but sadly, we leaned too hard on the lock, which created more shares in circulation. So we are doing our best to not do that at all and and make a go of it with just the production coming out of the ground controlling our costs and adding one or two.

<unk> hopefully in the next.

Six two.

Six to nine months something like that.

I hope that answers the question.

Thank you and let me give this one that Jesse.

Go up which is what we believe is the case and what we're looking at, then we we really get a shot in the arm. So I'm looking at really uh, high quality.

What issues are you facing selling the gas.

Well, let's see were currently making about six to 700 Mcf per day or 700000 standard cubic feet per day to <unk>.

Mitchell Trotter: We have redeemed to date now all but 250,000 of non-insider, and the last under 2 million is insiders, and we can't do them right now anyway. That's kind of how we picked them and who's redeemed and who's not redeemed.

<unk>, that's a it's an older plant the miles from our plant and they've been doing a lot of maintenance recently.

On there.

Gas treating trains and then they've been putting in some new lines. So.

It's not only us that are being curtailed. Its also all the other operators that produce into that plant.

Dante Caravaggio: Yeah. I want to add something to that. As a management team, we take great pride that nobody who has invested with us has lost a dime. We view that as a sacred trust with our investors and shareholders. For those that hold the shares, trust me, I'm one of those that paid north of $2 for these shares, and I'm not going to rest until this stock is really—Joe and I talk about it—$100 a share. Now, am I going to get that done this year? Probably not. In fact, I almost bet I won't get that done this year. I think before the end of the decade, that's my goal. I'm just going to say that.

<unk>.

The operator of the miles from our plant they've actually got another plant that they just got online and they're lining that out now.

And so we anticipate that in the not too distant future. We shouldn't have this issue of getting rid of all of our gas and I'm sure that the Genesis of that question probably came from well once you start drilling horizontal wells and you're making a lot more gas what are you going to do with that gas will that gas will go to that same plan, but by then.

Highly profitable properties, that will help us, but we don't really need anything to be profitable today. We just need to be a little better at controlling our costs and it's, well within our range. Remember, we got rid of a 700,000 principal and interest payment. So, we we've got lots of room to work and, uh, you know, we, we, we were still paying down debt but sadly, we lean too hard on the ELO which created more shares in circulation. So we are doing our best to not do that at all and and make a go of it with just the production coming out of the ground controlling our costs and adding 1 or 2 Acquisitions. Hopefully in the next uh 6 to 6 to 9 months something like that.

I hope that answers the question.

Thank you. Let me, uh, give this one to Jesse.

What issues are you facing selling the gas?

That time, they shouldnt have worked out all the maintenance.

Issues that they're having to perform and then some of that gas will go to the new.

The new plant and so we don't anticipate in the future, having any gas sales issues and getting rid of our gas.

Well, let's see. Um, we're currently making about 600 to 700 Mcf per day, or 700,000 standard cubic feet per day, to a plant. That's, uh, it's an older plant, the Mimar plant, and they've been doing a lot of maintenance recently on their equipment.

Mitchell Trotter: Okay. I've got about three more questions that I think we have time for. This next one, actually, next two will be for me, but the first one is very close to that. What is the dilution risk, either from the current notes converting or other things? On the 250,000 of shares, that's, excuse me, convertible notes, that's at $0.50 a day, that's about a half million shares. It is not huge in the grand scheme of things. Though we are trying to, and as Dante had alluded to, we have the ELOC that we've talked about since October of 2022, and we use it very sparingly and small amounts not to drive anything. That is kind of the dilution risk.

Hope that answers the question right there.

It sounds like it does okay. This one is for you.

Congratulations on the great third quarter with regards to the first three wells over to Wil.

Uh, gas treating trains. And then they've been putting in some new lines. So it's not only us that, uh, are being curtailed; it's also all the other operators that produce into that plant. They.

We will be drilling by mid 'twenty six and your agreement with them are they required to drill at least these first three wells regardless of the oil price at the time.

It's it's really at their option when to drill those drill those first three are solid gold to us because.

We call it a carry we don't have to pay a dime.

<unk> front all of that money, but I believe theyre going to drill as long as oil prices are.

Uh, the operator of the miles from our plant, they've actually got another plant that they just got online, and they're lining that out now. And so, we anticipate that in the not too distant future, we shouldn't have this issue of getting rid of all our gas. And, um, I'm sure that the genesis of that question probably came from, well, once you start drilling the horizontal wells and you're making a lot more gas, what are you going to do with that gas? Well, that gas will go to that same plant, but by that time they should have worked out all the maintenance.

Long as oil prices don't collapse, I believe theyre going to drill. So I mean is it is 55, okay. As 50, Okay is 45 okay.

Mitchell Trotter: When we look at these acquisitions, and this is the anything else, we look at acquisitions, we're looking at the proper balance of debt or this biometric funding or equity if it's accretive, if it makes sense. Like the mean five shares that we took out, the preferred shares, that made sense because it took out $27 million of redemption value for really a minor amount of the number of shares that could have been converted. I mean, that's how we address that. The next one is also for me. What is the 2026 crude oil price values that you anticipate to hedge? We have hedged a quarter of our production through the first quarter of 2026 at $62.50. We watch it, and we'll probably get up into the 50%, max 70%. Now, if it goes crazy, we'll get closer to 70% while price goes.

No the answer to that but they have five years to drill 18 wells to hold the rights to our to our <unk>.

Issues that they're having to perform and then some of that gas will go to the uh the new plant. And so we don't anticipate in the future having any gas sales issues uh and getting rid of our gas.

I hope that answers the question right there.

San Andres formation, and we just feel confident you know I mean, I'll just have to get my outlook on oil prices if oil prices declined much below 60, it's not attractive for anybody to drill and so what happens is the drillers and the the oil producers all shut down and then what happens.

Sounds like it does. Okay, this is when Dante is for you.

Congratulations on the great third quarter. With regards to the first 3 wells by Vertice.

We'll be drilling by mid-2026 in your agreement with them. Are they required to drill at least these first three wells, regardless of the oil price at the time?

The fields just start declining.

So oil prices.

We will start going up as oil production drops so now oil production drops oil prices go up drilling starts ticking up so it's it's kind of a.

A shelf controlling a loop if oil prices go down drilling slows down deep.

Decreases in production.

Increases U S slows down producing oil oil prices go back up then as it goes up drilling picks back up you know production goes back up oil prices come down so.

It's it's really a their option. When to drill those drill. Those first 3 are solid gold to us because we, we, we call it a carry. We don't have to pay a dime. They've, they've front all that money, but I believe they're going to drill, you know, as long as oil prices are, you know, as as long as oil prices don't collapse, I believe they're going to drill. So I mean, is it is 550? Okay is 50. Okay, is 45. Okay, I don't know the answer to that, but they have 5 years to drill 18, Wells, to hold the rights to our to our

Mitchell Trotter: We watch it. I check it every day. If the price goes up enough to lock in more over $62.50, I may. I really want it to be much higher than that. We're going to have to watch the market, what's going on at the time, what we've got going on at the time, and make certain that we are properly covered. We don't have any bank covenants or anything like that that requires it. That's where we are with respect to the hedging. This will be a good one for you to finish, Dante. This will be the last question, I believe. It's an acquisition by a big player. Can that be considered? I don't understand the question. An acquisition by a big player? Can we be acquired by a big player?

I think the search for equilibrium.

Everybody's guessing the number is probably going to be slightly above where people would drill and people frankly, they're reluctant to drill at 60 or formation is pretty good. So we feel we have healthy economics at 60, a lot of people can't drill without 70.

So if you said where will this sort of level out and where will it be and how does all this stuff kind of work I mean, I I feel like oil prices are going to hang in there 60 to 70 with some excursions below that range and above that range and that's the best I can tell you I hope that I hope that answers your.

Yeah.

Okay. We have time for a few more questions more but let me this ones for me.

The.

What convertible notes routine and which have not been redeemed and how did you decide which in order to redeem.

San Andreas formation and we we just feel confident, you know? I mean, I mean, I'll just have to give my Outlook on oil prices if oil prices decline, much below, 60, it's not attractive for anybody to drill. And and so what happens is the Drillers, and the the oil producers all shut down. And then what happens? The the the fields just start to declining and so oil prices, uh, will start going up as oil production drops. So now, oil production drops oil prices. Go up, drilling starts picking up, so it's, it's kind of a, you know, a, a, a self-controlling, uh, loop. If oil prices go down drilling slows down, it decreases in production, uh, increases us slows down producing oil oil prices. Go back up. Then as it goes up, drilling picks back up. You know, production goes back up, oil prices come down. So,

Mitchell Trotter: I'm guessing that's what it's saying, but are we willing? I take it both ways. Are we going to be swallowed, or would we swallow somebody else?

Going back in time, we've talked about the.

Converting.

Dante Caravaggio: Yeah. Okay. I'll handle that. I mean, for $1 trillion, we'll sell. For $1 trillion. The issue is the marketplace is very sophisticated. They're not going to give us what we're worth. Almost very few people will pay us what the value is of the oil in the ground. They will pay us for the value of the oil barrels coming out of the ground that have been doing so for the last, say, year or two. With us, where we have a huge inventory of drilling and workovers, nobody's going to pay us what we're worth. I don't think—we're not going to sell unless somebody paid us what we're worth. I think the answer is, for a bargain basement hunter, we're not for sale.

The private loans in the warrant obligations in the convertible notes all the way back into the end of 'twenty four.

And as we have been stating really every quarter, our intent is to try to clean up.

Frankly, they're reluctant to drill at $60. Our formation is pretty good, so we feel we have healthy economics at $60. A lot of people can't drill without $70.

All of this by the end of this year at least with respect to the the non insiders and that's what we've just about done the all of these private loans came from people that were close to us when we were back and had no source of income.

So that's what got us across the line to begin with so we have redeemed to date I'll now Oh, but 250000.

So if if you said where will this sort of level out and where will it be? And and how does all this stuff kind of work? I mean, I, I feel like oil prices are going to hang in there 60 to 70 with, some excursions below, that range, and above that range. And that's the best I can tell you. I hope that hope that answers your question.

Okay. Uh we have time for a few more questions, just a couple more but let me uh this 1's for me.

the uh,

Non ensign or in the last under $2 million as insiders and we can't do them right now anyway. So that's kind of how we picked them.

And he was redeemed and theres not redeem so.

Dante Caravaggio: For somebody that wants 92 wells to drill and wants 500 wells to work over and a management team that knows how to do things without selling much stock and without taking on debt, yeah, for the right price, sure. I think we're way better off serving our shareholders by doing what we've been doing, keeping our promise, buy more quality assets with a lot of inventory baked in, paying them nothing for the inventory, paying them a fair price for their PDP, producing, develop, producing, proven reserves, and getting a crazy good return on our money for our shareholders. We think the future's bright, and we think there's no better place to be. We're all motivated. We've had almost no turnover in our management ranks. We think our employees are happy, and they're working safe.

Yeah, I, you know I want to add something to that as a management team. We take great pride that nobody who has invested with US and has lost a dime.

Which convertible notes were redeemed and which have not been redeemed? How did you decide the order in which to redeem them? Going back in time, we've talked about the converting.

The private loans and the warrant obligations are converted into convertible notes. All the way back to the end of 2024.

And as you know.

And we view that as a sacred trust with our investors and shareholders and for those that hold the shares Trust me I'm. One of those had paid north of two Bucks you know for these shares and I'm not going to rest until the stock is.

Really you know, Joe and I talk about it 100 Bucks a share now am I going to get that done this year, probably not in fact, I'd almost bet I wont get that done this year, but I think before.

And as we have been stating really every quarter. Our intent is to try to clean up, uh, all of this. By the end of this year, at least with respect to the uh the non-endorsement loans came from people that were close to us when we were a SPAC uh and had no source of income. So that's what got

Got us across the line to begin with.

Before the end of the decade, that's my goal I'll, just going to say that.

Okay.

Yeah, I forgot about three more questions I think we have time for this next one actually next tool will be for me, but for one is very close.

So, we have redeemed the day off now, off at $250,000, none Insiders, and the last under $2 million is Insiders, and we can't do them right now. Anyway, so that's kind of how we picked them and who's redeemed and who's not redeemed.

Close to that what is the dilution risk either from the current notes converting or other things and.

Dante Caravaggio: You add all that up, and I think we're a good bet. I'll turn it back over to Matthew to wrap it up, please.

On the 250000 of shares.

Excuse me our convertible notes.

Operator: Thank you. Everyone, this concludes today's event. You may disconnect at this time and have a wonderful day. Thank you for your participation.

Did you sense a day, that's about a half million dollars.

Sure. So it's not huge in the Grand scheme of things.

So we are trying to and as Don alluded to.

Yeah, I, you know, I want to add something to that, you know, as a management team, we take great pride that nobody who has invested with us, has lost a dime and and you know and we view that as a as a sacred trust with our investors and shareholders and for those that hold the shares. Trust me. I'm 1 of those that paid north of 2 bucks. You know, for these shares and I'm not going to rest until this stock is.

We have the Iraq that we've talked about for since.

October 22 and.

And we use it very sparingly.

Small amounts are not to drive anything and so that's kind of the dilution risk and when we look at these acquisitions and this is there anything else.

Really, you know, Joe and I talked about it, a hundred bucks, a share. Now, am I going to get that done? You know, this year, probably not. In fact, I almost bet I won't get that done this year, but I, I think before, um, before the end of the decade, that's my goal. I'm just going to say that.

Okay. The um

We look at acquisitions, we're looking at the proper balance.

No.

Debt or this volumetric funding or equity if it's accretive if it makes sense yeah. So like the main five shares that we took out the preferred shares that made sense.

And I've got about 3, more questions and I'm, I think we have time for this next 1. Actually. Next 2 will be for me, but the first 1 is very late, close to that. What is the dilution risk either from the current notes converting or other things? And

On the 250,000 of.

Because it took out $27 million.

Of redemption value.

Shares, you know, that's, excuse me, uh, convertible notes. You know, that's a...

For really a minor amount of the number of shares that could have been converted.

It's 50% a day; that's about a happening.

So.

It's how we address that the next one is.

It was also for me.

What is the 26 crude oil price it I use that you plan to dissipate to hedge.

We have hedged.

Order of our production through the first quarter of 'twenty six.

$62.50.

And we watch it and you know.

We'll probably get up into the 50, Max 70% now if it goes crazy will get closer to 70% oil price goes, but we watch it I'll check it every day.

Uh, shares, so it's not huge in the grand scheme of things. Um, so we are trying to and as Dante had alluded to, you know, we have the elock that we've talked about for since October of 22. Um, and we use it. Very sparingly, uh, and small amounts, uh, not to drive anything. And and so that's kind of the dilution risk. And when we look at these Acquisitions and this is the anything else. Uh, we look at Acquisitions. We're looking at the proper balance of

If the price goes up enough to lock in more.

Debt, or this volumetric, funding or Equity, if it's creative, if it makes sense. Um,

Over $62.50.

Hum, but I really want it to be much higher than that.

But we're gonna have to watch it the market whats going on at the time, what we've got going on at the time and.

And to make certain that we are properly covered we don't have any bank covenants or anything like that requires it.

You know, so like the mean 5 shares that we took out the preferred shares that made sense, uh, because it took out $27 million of redemption value, uh, for really a minor amount of the number of shares that could have been converted. I mean, so that's, uh, how we address that. The next one is also for me.

So that's where we are with respect.

Two of the hedging.

And I'm sure this will be a good one for you to finish Dante.

What is a $26 crude oil price? If I use that, do you plan to anticipate a hedge?

<unk>. So this will be the last question I believe.

And it's.

An acquisition a big player cannot be considered.

We have hedged a quarter of our production through the first quarter of '26 at, uh, $62.50.

So I don't know.

I understand the question and the acquisition by Big can we be acquired by a big player.

I'm guessing that's what it is saying, but or are we willing.

Take it both ways, we could be swallowed or re swallow or somebody else yeah, Okay, I'll I'll handle that I mean.

4 over $62.50.

For one trillion dollars will sell for one trillion dollars.

The issue is the marketplaces very sophisticated they're they're not going to give us what were worth and almost very few people will pay us what the value is of the oil in the ground they will pay us for the value of the oil barrels.

I met, uh, but I really want it to be much higher than that, uh, but we're going to have to watch the market, what's going on at the time, what we've got going on at the time, and, uh, to make certain that we are properly covered. We don't have any bank covenants or anything like that that requires it, and so that's where we are with respect.

To the hedging.

Coming out of the ground that have been doing so for the last.

A year or two so with us where we have a huge inventory of drilling in workovers nobody's going to pay us what will work. So I don't think you know.

And I'm a little, this will be a good one for you to finish, Dante. So, this will be the last question, I believe, and it's...

An acquisition by a big player, can that be considered?

And we're not going to sell unless somebody paid us what were worse. So I think the answer is.

So, I don't understand the question: an acquisition by a big player. Can we be acquired by a big player?

For bargain basement Hunter were not for sale for somebody that wants 92 wells to drill and watch 500 wells to Workover.

I'm guessing that's what it's saying. But are we willing? I take it both ways. We could be swallowed, or would we swallow somebody else?

And a management team that knows how to do things without selling much stock and without.

<unk> taken on debt yeah for the right price sure, but I think were way better off serving our shareholders by doing what we've been doing keeping our promise by Morris more quality assets with a lot of inventory baked in pay and then nothing for the inventory.

Yeah, okay, I'll I'll handle that. I mean, for for 1 trillion, dollars will sell for 1 trillion dollars. Um, the the the issue is the marketplace is very sophisticated. They're, they're not going to give us what we're worth and almost very few. People will pay us what the value is of the oil in the ground. They will pay us for the value of the oil.

Them, a fair price for their PDP producing developed producing proven reserves.

And.

Getting a crazy good return on our money for our shareholders. So we we think the future's bright and we think there's no better place to be we're all motivated we've had almost no turnover in our management ranks, we think our employees are happy and.

Barrels coming out of the ground that have been doing so for the last, say, year or two. So with us, where we have a huge inventory of drilling and workovers, nobody's going to pay us what we're worth. So I don't think, you know, and we're not going to sell unless somebody pays us what we're worth. So I think the answer is...

um,

And their work in safe. So you add all that up and I think we're good bet. So I'll turn it back over to a mass Matthew to wrap it up please.

For Bargain Basement Hunter, we're not for sale for somebody that wants 92 wells to drill and 500 wells to work over.

Thank you everyone. This concludes today's event you may disconnect at this time and have a wonderful day. Thank you for your participation.

In a management team that knows how to do things without selling much stock and without, uh, taking on debt. Yeah, for the right price. Sure. But I think we're way better off serving our shareholders by doing what we've been doing: keeping our promise, buying more quality assets with a lot of inventory baked in, paying them nothing for the inventory, and paying them a fair price for their PDP (Producing Developed Proven) reserves and, uh, you know, getting a crazy good return on our money for our shareholders. So, we think the future's bright, and, uh, we think there's no better place to be. We're all motivated. We've had almost no turnover in our management ranks. We think our.

Our employees are happy and, uh, and they're working safe. So, you add all that up and I, I, I think we're a good bet. So I'll turn it back over to, uh, math. Matthew to wrap it up, please.

Thank you. And everyone, this concludes today's event. You may disconnect at this time. Have a wonderful day.

Thank you for your participation.