During the morning session on Tuesday, HNR Acquisition Corp (NYSE: HNRA) experienced a notable surge of 84.97%, reaching a trading value of $3.20. The catalyst for this upward movement can be attributed to a corporate update disseminated by the company, influencing positive market sentiment towards HNR Acquisition stock.
HNR Acquisition (HNRA) presented a comprehensive overview of the performance of its recently acquired equity stakes in Pogo Resources, LLC, and its subsidiary, LH Operating, LLC (referred to collectively as “LHO”). This acquisition was part of a business combination executed on November 15, 2023.
Formerly a privately held entity, LHO took control of the Grayburg-Jackson field in late 2019, commencing operations in early 2020. Initial production levels in 2020 stood at around 500 barrels of oil equivalent (BOE) per day. Notably, LHO’s production has exhibited substantial growth, escalating from the baseline 500 BOE to an average of 1,388 BOE per day for the nine months concluding on September 30, 2023.
The entirety of the company’s field production is subject to long-term contracts, securing sales to diverse customers in the United States. The financial performance of LHO during the nine months concluding on September 30, 2023, showcased commendable figures, including revenues of $20.3 million, positive cash flow, and a net income of $3.9 million.
As of September 30, 2023, LHO boasted total assets amounting to $70.4 million. With the completion of the acquisition, HNR Acquisition is poised to unveil its initial consolidated financial statements for the fiscal year ending on December 31, 2023, with the results of the acquisition integrated for six weeks of the fourth quarter.
Post-acquisition, the skilled field personnel at LHO, instrumental in achieving these impressive results, have seamlessly transitioned to remain within the company’s ranks. The process of consolidating business operations has commenced, marked by the HNRA team’s months-long engagement with prior management to familiarize themselves with field operations.
