HNR Acquisition Corp (HNRA) has successfully completed the acquisition of Pogo Resources, LLC, an oil and gas company with operations in the Permian Basin, on November 15, 2023. The deal, valued at $82.8 million, was financed through a mix of cash from an IPO, a senior secured term loan, and other financing agreements. In the transaction, HNRA issued 2 million shares of Class B Common Stock and 1.5 million preferred units of OpCo, with an additional 500,000 shares of Class B Common Stock held in escrow. Post-acquisition, HNRA has entered into several agreements including a registration rights agreement, an option agreement, a backstop agreement, and a founder pledge agreement, as well as a forward purchase agreement with Meteora Capital Partners, LP. Despite the expansion, HNRA...Show More

HNR Acquisition Corp (HNRA) has successfully completed the acquisition of Pogo Resources, LLC, an oil and gas company with operations in the Permian Basin, on November 15, 2023. The deal, valued at $82.8 million, was financed through a mix of cash from an IPO, a senior secured term loan, and other financing agreements. In the transaction, HNRA issued 2 million shares of Class B Common Stock and 1.5 million preferred units of OpCo, with an additional 500,000 shares of Class B Common Stock held in escrow. Post-acquisition, HNRA has entered into several agreements including a registration rights agreement, an option agreement, a backstop agreement, and a founder pledge agreement, as well as a forward purchase agreement with Meteora Capital Partners, LP. Despite the expansion, HNRA reported a working capital deficit of $24.3 million and cash reserves of $3.4 million as of March 31, 2024, which has raised concerns about its ability to continue operations. The financial statements for the year ended December 31, 2023, included a going concern note. Management is focusing on strategies to improve profitability and maintain active hedge positions, and is considering the issuance of additional Class A common stock to address the financial concerns.