EON Resources Inc. Announces Agreement With Seller Will: Restructure Balance Sheet; Eliminate Approximately $40MM in Debt and Obligations; Purchase the 10% Overriding Royalty Interest in the Property
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EON Resources Inc. has announced a significant restructuring agreement with Pogo Royalty, LLC, which will eliminate approximately $40 million in debt and obligations. The deal includes retiring a $15 million promissory note, purchasing a 10% Overriding Royalty Interest, and repurchasing preferred units to prevent conversion into common stock. EON will pay $22 million in cash and issue 3 million shares of Class A common stock to Pogo.
February 11, 2025 | 1:00 pm
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EON Resources Inc. is restructuring its balance sheet by eliminating $40 million in debt and obligations. The agreement with Pogo Royalty involves cash payment and stock issuance, which could improve EON's financial stability and investor confidence.
The restructuring will significantly reduce EON's debt burden, potentially improving its financial health and attractiveness to investors. The elimination of $40 million in debt and obligations, along with the strategic purchase of a 10% ORRI, positions EON for better financial performance. The issuance of 3 million shares may dilute existing shareholders but is offset by the overall positive impact of debt reduction.
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