EON Resources Inc. Announces $45.5 million of Funding Closed with the Simultaneous Settlement of Seller Obligations and Retirement of Senior Debt - Seite 2

Retired senior debt of approximately $19.3 million. The payoff of the senior debt eliminated a $700,000 per month amortization payment (principal and interest) whereby the Company anticipates a monthly cash flow improvement of $400,000 to $600,000.

Funds raised in excess of the cash payment to the Seller, the retirement of the senior debt and any fees and closing costs will be used to pay other obligations and fund field activities including workovers within the GJF commencing in the fourth quarter of 2025.

"This funding is a total transformation and a major clean-up of our balance sheet by eliminating the senior and Seller debt and putting to rest the complex capital structure from the closing of our original acquisition," said Mitchell B. Trotter, CFO of EON. "The removal of these complexities and reduction of the monthly payments allows us to focus on our original goal, the enhancement and exploitation of our asset base to grow the Company."

"This was a total team effort that almost nobody believed we could do," said Dante Caravaggio, President and CEO of EON. "We put together the pieces of the puzzle by raising the money with the sale of overriding royalty interests and farming out our San Andres rights to a proven operator with extensive horizontal San Andres development experience. We are grateful to our investors, as well as to our industry and financial consultants, Virtus, Enstream Capital, EA Energy, Roth Capital Partners, Jack Holmes and Jarrett Hasson; all of whom had a hand in achieving this immense success for our shareholders. These transactions netted approximately $40 million in shareholder value."

"The unsung heroes are the behind the scene lawyers and accountants," continued Mr. Caravaggio. "The legal teams sorted out hundreds of pages across dozens of documents. The legal team for Virtus and their sponsor as well as for the family office were excellent to work with. I want to give a special thanks to the EON legal team of David, Matt and Alex."

• David M. Smith: David is the General Counsel for EON. He is a licensed attorney in Texas with 40+ years of experience in the legal field of oil and gas exploration and production, manufacturing, purchase and sale agreements, exploration agreements, land and leaseholds, right of ways, pipelines, surface use, joint operating agreements, joint interest agreements, participation agreements and operations as well as transactional and litigation experience in oil and gas, real estate, bankruptcy and commercial industries.