HNR Acquisition Corp (HNRA) reported its financial performance for the quarter ended June 30, 2024, revealing a decrease in oil and natural gas sales by 26% compared to the same period in 2023. This decline was attributed to a 7% increase in realized prices, excluding the effect of settled commodity derivatives, and a 34% decrease in production volumes, alongside derivative instrument losses of $83,478. The company's lease operating expenses rose to $2,094,181, while production taxes, transportation, and processing costs decreased to $408,985. Depletion, depreciation, and amortization expenses increased to $522,542, and general and administrative expenses saw a significant rise to $2,323,662, primarily due to increased costs associated with being a public company and stock-based compensation. Interest expense for the quarter was $2,030,317, with additional costs from financing. The company also...Show More

HNR Acquisition Corp (HNRA) reported its financial performance for the quarter ended June 30, 2024, revealing a decrease in oil and natural gas sales by 26% compared to the same period in 2023. This decline was attributed to a 7% increase in realized prices, excluding the effect of settled commodity derivatives, and a 34% decrease in production volumes, alongside derivative instrument losses of $83,478. The company's lease operating expenses rose to $2,094,181, while production taxes, transportation, and processing costs decreased to $408,985. Depletion, depreciation, and amortization expenses increased to $522,542, and general and administrative expenses saw a significant rise to $2,323,662, primarily due to increased costs associated with being a public company and stock-based compensation. Interest expense for the quarter was $2,030,317, with additional costs from financing. The company also discussed its liquidity and capital resources, noting a working capital deficit of $32,552,654 and outlining plans to improve profitability and potentially issue additional shares under a Common Stock Purchase Agreement to fund operations and reduce liabilities. HNRA's management acknowledged a material weakness in internal control over financial reporting due to insufficient accounting personnel and lack of proper controls, with plans to hire additional staff and enhance processes.