So, here's what happened to EON Resources Inc. (EONR) on Monday: the stock edged lower in the premarket. Why? Because oil stocks in general took a hit after President Donald Trump signaled a pause. In a Truth Social post, he said the U.S. will suspend strikes on Iran's power and energy assets for five days, depending on how ongoing talks go. When the market hears "pause" and "Iranian energy," it often thinks "less immediate risk to oil supply," and down go oil prices. And when oil prices drop, energy stocks like EONR often feel the pressure. It's a classic geopolitical ripple effect.
Drilling Ahead, Regardless
But here's the thing about EON Resources: while traders were reacting to headlines, the company itself was busy sticking to its plan. Last week, it announced its 2026 drilling program is moving ahead. It's starting with what you might call a science experiment: spending $2 million to recomplete five vertical wells in the San Andres formation. They're going to test different completion methods.
This isn't just busywork. The results from these five wells are meant to be a guidebook. "In advance of spending $3.5 million per well… the results from the 5 vertical wells will help guide us," said CEO Dante Caravaggio. The guidebook will be used for the next, much bigger phase: drilling 92 horizontal wells. They expect initial results from the vertical test in the second quarter.
The company isn't going it alone, either. It has secured funding through a farmout agreement with Virtus Energy Partners and has already submitted three permits. Drilling is expected to kick off in Q2 of 2026.
And what's the goal? "Our plan is to drill 10 new horizontal wells in 2026," said VP Jesse Allen. He added that each well could average 400 barrels per day. Do some quick math: at $90 oil, the company estimates that kind of production could add about $1.3 million per month in revenue and potentially double its net revenue. That's the long-term bet the company is making, Trump headlines or not.
What the Charts Say
Stepping back from the wells and the headlines, let's look at the stock's recent journey. Technically, it's been on a run. EON Resources is currently trading 43.8% above its 20-day simple moving average and a whopping 128.3% above its 100-day simple moving average. That indicates some serious bullish momentum, both in the short term and over a longer period. Over the past 12 months, shares are up 76.10%, and they're hanging out closer to their 52-week highs than their lows. The momentum, at least until Monday's dip, has been solidly upward.
