Form 4: Pogo Royalty, LLC Sells 1,071,897 Shares of EON Resources Inc.

Pogo Royalty, LLC, a 10% owner of EON Resources Inc., disposed of 1,071,897 shares of Class A Common Stock at a weighted average price of $1.5876 on January 21, 2025.

Summary

• On January 21, 2025, Pogo Royalty, LLC sold 1,071,897 shares of EON Resources Inc.'s Class A Common Stock.
• The sale price was a weighted average of $1.5876 per share, with individual transactions ranging from $1.50 to $1.80.
• Following the transaction, Pogo Royalty, LLC continues to beneficially own 500,000 shares of Class B Common Stock and an equivalent number of HNRA Upstream, LLC Class B Units, which are exchangeable for 500,000 shares of Class A Common Stock.
• The reporting entities include Pogo Royalty, LLC, CIC Pogo LP, CIC IV GP LLC, CIC Partners Firm LP, and CIC Partners Firm GP LLC, all with the same address.
• Bayard Friedman, as Authorized Person, signed the Form 4 on behalf of all reporting entities on January 23, 2025.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to the sale of a significant number of shares by a major shareholder, which could indicate a lack of confidence or a need for liquidity. However, the continued ownership of a substantial number of shares mitigates the negativity somewhat.

Negatives

• A significant shareholder, Pogo Royalty, LLC, has reduced its holdings in EON Resources Inc. by selling over 1 million shares.

Risks

• Further sales by Pogo Royalty, LLC could put downward pressure on EON Resources Inc.'s stock price.

Industry Context

Sales of shares by significant shareholders are common and can be driven by various factors, including portfolio rebalancing or the need for liquidity. The impact on the stock price depends on the size of the sale relative to the trading volume and the market's perception of the company's prospects.

Comparison to Industry Standards

• It's difficult to assess the impact of this sale without knowing the typical trading volume of EONR and comparing it to similar transactions in the oil and gas industry.
• For example, if a major shareholder in a company like Occidental Petroleum (OXY) or Devon Energy (DVN) sold a similar percentage of their holdings, it would likely have a more significant impact due to the larger market capitalization and trading volume of those companies.

Stakeholder Impact

• Shareholders may be concerned about the potential downward pressure on the stock price due to the sale.
• Employees may be indirectly affected if the stock price decline impacts the company's overall financial health.

Key Dates

Keywords

EON Resources Inc., Pogo Royalty, LLC, Class A Common Stock, Sale of Shares, Form 4, Beneficial Ownership, HNRA Upstream, LLC