Battalion Oil Corporation Announces First Quarter 2024 Financial and Operating Results
Battalion Oil announced its first quarter 2024 financial and operating results. Key achievements include the successful completion and commencement of production from two wells at the Glacier pad, surpassing cost and performance expectations. The company also executed two preferred equity raises totaling $40 million to support its drilling program and debt reduction. Despite these successes, the company reported a decline in production and revenue compared to the same period last year, with average daily net production falling to 12,989 Boe/d and total operating revenue decreasing to $49.9 million. Battalion reported a net loss of $36.8 million for Q1 2024. The AGI project resumed operations, treating significant volumes of gas and projecting substantial cost savings. Ongoing strategic initiatives include a merger with Fury Resources.
- Completed two wells at Glacier pad below budget and above type curve expectations.
- Executed preferred equity raises totaling $40 million to support drilling and debt reduction.
- AGI project resumed operations, potentially saving up to $2.0 million monthly in gas treating costs.
- Decreased general and administrative expenses to $3.44 per Boe due to headcount reduction.
- Average daily net production decreased to 12,989 Boe/d from 16,200 Boe/d in Q1 2023.
- Total operating revenue dropped to $49.9 million from $65.1 million in Q1 2023.
- Reported a net loss of $36.8 million and an adjusted diluted net loss of $1.04 per share.
- Realized hedge losses amounted to approximately $4.4 million.
- Lease operating and workover expense increased to $10.55 per Boe, up from $8.94 per Boe.
- Gathering and other expenses rose to $14.62 per Boe from $11.33 per Boe.
Insights
The first quarter 2024 results for Battalion Oil Corporation present a mixed bag for investors. The
Financially, the capital raised through preferred equity raises in March and May 2024, totaling
For investors, the company’s efforts to manage costs and ramp up the acid gas injection project to save approximately
Battalion Oil Corporation’s production efficiency and operational capabilities are the core highlights from their Q1 2024 update. The 32 MMcf/d throughput for their AGI project and the new wells outperforming type curves with initial production rates of 1,950 and 1,750 Boe/d respectively show strong operational execution.
While production has decreased year-over-year, the strategic focus on high-performance wells and the AGI project, which is expected to save
However, the increase in lease operating and workover expenses highlights a challenging aspect of the oil sector, where operational costs can rapidly erode margins. Investors should monitor how the company handles these expenses in the coming quarters, especially with ongoing midstream disruptions.
The mixed financial results presented by Battalion Oil Corporation in Q1 2024 reflect broader market conditions for the energy sector, characterized by fluctuating oil prices and inflationary pressures. The company realized 97.3% of the average NYMEX oil price, which is quite commendable but did sustain
The strategic move to raise
In the short term, the reduction in production and increased operational costs might weigh negatively on investor sentiment. However, long-term investors could view the company’s strategic initiatives, including cost-saving measures and merger activities, as positive steps towards sustainable growth.
HOUSTON, May 15, 2024 (GLOBE NEWSWIRE) -- Battalion Oil Corporation (NYSE American: BATL, “Battalion” or the “Company”) today announced financial and operating results for the first quarter of 2024.
Key Highlights
- Previously announced AGI project online in Q1 2024 and achieved new record of 32 MMcf/d of throughput
- Drilled and completed two wells in Monument Draw in Q1 2024
- Generated first quarter 2024 sales volumes of 12,989 barrels of oil equivalent per day (“Boe/d”)
- Executed a
$20.0 million preferred equity raise in March 2024 and an additional$20.0 million preferred equity raise in May 2024 to support drilling program and debt reduction - Continuing strategic alternatives initiative and are working toward closing our previously announced merger agreement with Fury Resources
Management Comments
During the first quarter 2024, the previously announced two well Glacier pad came online and began producing exceptional quantities of oil and gas. These wells came online below cost budget, above projected type curve, with substantial pressure support and 30-day IP’s over 1,950 Boe/d and 1,750 Boe/d, respectively. Two additional wells (Rio Bravo pad) were drilled to total depth and completed. These wells are now flowing back. The drilling rig has finished drilling an additional two-well pad (Vermejo pad) in Monument Draw. All operations have been favorable to plan from both a capital and timing perspective.
During the first quarter 2024, the acid gas injection (“AGI”) project restarted operations and began taking gas from the Company with approximately 326 MMcf being treated at the AGI facility and approximately 266 MMcf of sweet gas being returned to the Company for sales to its midstream partner. The Company has continued to increase volume sent to the AGI facility. As the AGI facility continues to ramp to full capacity, the Company expects to save up to
Results of Operations
Average daily net production and total operating revenue during the first quarter of 2024 were 12,989 Boe/d (
Lease operating and workover expense was
For the first quarter of 2024, the Company reported a net loss available to common stockholders of
Liquidity and Balance Sheet
On March 27, 2024, 20,000 shares of preferred equity remaining under a support letter obtained in November 2023 were sold for proceeds of
As of March 31, 2024, the Company had
On May 13, 2024, 20,000 shares of preferred equity were sold for proceeds of
For further discussion on our liquidity and balance sheet, as well as recent developments, refer to Management’s Discussion and Analysis and Risk Factors in the Company’s Form 10-K.
Important Information for Investors and Stockholders
This communication is being made in respect of the proposed transaction involving the Company and Fury Resources, Inc., a Delaware corporation. In connection with the proposed transaction, the Company intends to file, or has filed, the relevant materials with the U.S. Securities and Exchange Commission (“SEC”), including a proxy statement on Schedule 14A and a transaction statement on Schedule 13e-3 (the “Schedule 13e-3”). Promptly after filing its definitive proxy statement with the SEC, the Company will mail the definitive proxy statement and a proxy card to each stockholder of the Company entitled to vote at the special meeting relating to the proposed transaction. This communication is not a substitute for the proxy statement, the Schedule 13e-3 or any other document that the Company has or may file with the SEC or send to its stockholders in connection with the proposed transaction. The relevant materials filed by the Company will be made available to the Company’s investors and stockholders at no expense to them and copies may be obtained free of charge on the Company’s website at www.battalionoil.com. In addition, all of those materials will be available at no charge on the SEC’s website at www.sec.gov. Investors and stockholders of the Company are urged to read the proxy statement, the Schedule 13e-3 and the other relevant materials as they become available before making any voting or investment decision with respect to the proposed transaction because they contain important information about the Company and the proposed transaction.
Participants in Solicitation
The Company and its directors, executive officers, other members of its management and employees may be deemed to be participants in the solicitation of proxies of the Company stockholders in connection with the proposed transaction under SEC rules. Investors and stockholders may obtain more detailed information regarding the names, affiliations and interests of the Company’s executive officers and directors in the solicitation by reading the Company’s Annual Report on Form 10-K, for the fiscal year ended December 31, 2023, and the proxy statement, the Schedule 13e-3 and other relevant materials that will be, or have been, filed with the SEC in connection with the proposed transaction as they become available. Information concerning the interests of the Company’s participants in the solicitation, which may, in some cases, be different than those of the Company’s stockholders generally, will be set forth in the proxy statement relating to the proposed transaction and the Schedule 13e-3, as they become available.
Forward Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that are not strictly historical statements constitute forward-looking statements. Forward-looking statements include, among others, statements about anticipated production, liquidity, capital spending, drilling and completion plans, and forward guidance. Forward-looking statements may often, but not always, be identified by the use of such words such as "expects", "believes", "intends", "anticipates", "plans", "estimates", “projects,” "potential", "possible", or "probable" or statements that certain actions, events or results "may", "will", "should", or "could" be taken, occur or be achieved. Forward-looking statements are based on current beliefs and expectations and involve certain assumptions or estimates that involve various risks and uncertainties that could cause actual results to differ materially from those reflected in the statements. These risks include, but are not limited to, those set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and other filings submitted by the Company to the SEC, copies of which may be obtained from the SEC's website at www.sec.gov or through the Company's website at www.battalionoil.com. Readers should not place undue reliance on any such forward-looking statements, which are made only as of the date hereof. The Company has no duty, and assumes no obligation, to update forward-looking statements as a result of new information, future events or changes in the Company's expectations.
About Battalion
Battalion Oil Corporation is an independent energy company engaged in the acquisition, production, exploration and development of onshore oil and natural gas properties in the United States.
Contact
Matthew B. Steele
Chief Executive Officer & Principal Financial Officer
832-538-0300
BATTALION OIL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share amounts)
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2024 | 2023 | |||||||
| Operating revenues: | ||||||||
| Oil, natural gas and natural gas liquids sales: | ||||||||
| Oil | $ | 42,429 | $ | 54,215 | ||||
| Natural gas | 2,047 | 2,900 | ||||||
| Natural gas liquids | 5,056 | 7,158 | ||||||
| Total oil, natural gas and natural gas liquids sales | 49,532 | 64,273 | ||||||
| Other | 338 | 869 | ||||||
| Total operating revenues | 49,870 | 65,142 | ||||||
| Operating expenses: | ||||||||
| Production: | ||||||||
| Lease operating | 11,586 | 11,691 | ||||||
| Workover and other | 888 | 1,335 | ||||||
| Taxes other than income | 2,991 | 3,190 | ||||||
| Gathering and other | 17,286 | 16,517 | ||||||
| General and administrative | 4,071 | 5,137 | ||||||
| Depletion, depreciation and accretion | 13,025 | 16,148 | ||||||
| Total operating expenses | 49,847 | 54,018 | ||||||
| Income from operations | 23 | 11,124 | ||||||
| Other income (expenses): | ||||||||
| Net (loss) gain on derivative contracts | (24,187 | ) | 19,473 | |||||
| Interest expense and other | (7,039 | ) | (7,786 | ) | ||||
| Total other (expenses) income | (31,226 | ) | 11,687 | |||||
| (Loss) income before income taxes | (31,203 | ) | 22,811 | |||||
| Income tax benefit (provision) | — | — | ||||||
| Net (loss) income | $ | (31,203 | ) | $ | 22,811 | |||
| Series A preferred dividends | (5,632 | ) | (1,492 | ) | ||||
| Net (loss) income available to common stockholders | $ | (36,835 | ) | $ | 21,319 | |||
| Net (loss) income per share of common stock available to common stockholders: | ||||||||
| Basic | $ | (2.24 | ) | $ | 1.29 | |||
| Diluted | $ | (2.24 | ) | $ | 1.28 | |||
| Weighted average common shares outstanding: | ||||||||
| Basic | 16,457 | 16,393 | ||||||
| Diluted | 16,457 | 16,535 | ||||||
BATTALION OIL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands, except share and per share amounts)
| March 31, 2024 | December 31, 2023 | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 48,941 | $ | 57,529 | ||||
| Accounts receivable, net | 25,987 | 23,021 | ||||||
| Assets from derivative contracts | 7,633 | 8,992 | ||||||
| Restricted cash | 91 | 90 | ||||||
| Prepaids and other | 919 | 907 | ||||||
| Total current assets | 83,571 | 90,539 | ||||||
| Oil and natural gas properties (full cost method): | ||||||||
| Evaluated | 776,504 | 755,482 | ||||||
| Unevaluated | 58,909 | 58,909 | ||||||
| Gross oil and natural gas properties | 835,413 | 814,391 | ||||||
| Less: accumulated depletion | (458,604 | ) | (445,975 | ) | ||||
| Net oil and natural gas properties | 376,809 | 368,416 | ||||||
| Other operating property and equipment: | ||||||||
| Other operating property and equipment | 4,648 | 4,640 | ||||||
| Less: accumulated depreciation | (1,979 | ) | (1,817 | ) | ||||
| Net other operating property and equipment | 2,669 | 2,823 | ||||||
| Other noncurrent assets: | ||||||||
| Assets from derivative contracts | 3,898 | 4,877 | ||||||
| Operating lease right of use assets | 890 | 1,027 | ||||||
| Other assets | 20,780 | 17,656 | ||||||
| Total assets | $ | 488,617 | $ | 485,338 | ||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 63,117 | $ | 66,525 | ||||
| Liabilities from derivative contracts | 28,764 | 17,191 | ||||||
| Current portion of long-term debt | 55,106 | 50,106 | ||||||
| Operating lease liabilities | 614 | 594 | ||||||
| Total current liabilities | 147,601 | 134,416 | ||||||
| Long-term debt, net | 126,821 | 140,276 | ||||||
| Other noncurrent liabilities: | ||||||||
| Liabilities from derivative contracts | 21,907 | 16,058 | ||||||
| Asset retirement obligations | 17,866 | 17,458 | ||||||
| Operating lease liabilities | 329 | 490 | ||||||
| Other | 11,156 | 2,084 | ||||||
| Commitments and contingencies | ||||||||
| Temporary equity: | ||||||||
| Series A redeemable convertible preferred stock: 118,000 shares and 98,000 shares | 131,624 | 106,535 | ||||||
| of | ||||||||
| Stockholders' equity: | ||||||||
| Common stock: 100,000,000 shares of | ||||||||
| 16,456,563 shares issued and outstanding as of March 31, 2024 and | ||||||||
| and December 31, 2023, respectively | 2 | 2 | ||||||
| Additional paid-in capital | 315,507 | 321,012 | ||||||
| Accumulated deficit | (284,196 | ) | (252,993 | ) | ||||
| Total stockholders' equity | 31,313 | 68,021 | ||||||
| Total liabilities, temporary equity and stockholders' equity | $ | 488,617 | $ | 485,338 | ||||
BATTALION OIL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2024 | 2023 | |||||||
| Cash flows from operating activities: | ||||||||
| Net (loss) income | $ | (31,203 | ) | $ | 22,811 | |||
| Adjustments to reconcile net (loss) income to net cash | ||||||||
| provided by operating activities: | ||||||||
| Depletion, depreciation and accretion | 13,025 | 16,148 | ||||||
| Stock-based compensation, net | 99 | 227 | ||||||
| Unrealized loss (gain) on derivative contracts | 19,761 | (21,004 | ) | |||||
| Amortization/accretion of financing related costs | 1,701 | 1,798 | ||||||
| Accrued settlements on derivative contracts | 1,433 | (555 | ) | |||||
| Change in fair value of embedded derivative liability | (928 | ) | (1,062 | ) | ||||
| Other | 270 | 11 | ||||||
| Cash flows from operations before changes in working capital | 4,158 | 18,374 | ||||||
| Changes in working capital | (242 | ) | (19,063 | ) | ||||
| Net cash provided by (used in) operating activities | 3,916 | (689 | ) | |||||
| Cash flows from investing activities: | ||||||||
| Oil and natural gas capital expenditures | (24,599 | ) | (28,611 | ) | ||||
| Proceeds received from sale of oil and natural gas assets | — | 1,189 | ||||||
| Contract asset | (7,235 | ) | — | |||||
| Other operating property and equipment capital expenditures | (8 | ) | (269 | ) | ||||
| Other | (6 | ) | (5 | ) | ||||
| Net cash used in investing activities | (31,848 | ) | (27,696 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Repayments of borrowings | (10,026 | ) | (5,017 | ) | ||||
| Payment of debt financing costs | (129 | ) | — | |||||
| Proceeds from issuance of preferred stock | 19,500 | 24,375 | ||||||
| Merger deposit | 10,000 | — | ||||||
| Other | — | (454 | ) | |||||
| Net cash provided by financing activities | 19,345 | 18,904 | ||||||
| Net decrease in cash, cash equivalents and restricted cash | (8,587 | ) | (9,481 | ) | ||||
| Cash, cash equivalents and restricted cash at beginning of period | 57,619 | 32,816 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 49,032 | $ | 23,335 | ||||
BATTALION OIL CORPORATION
SELECTED OPERATING DATA (Unaudited)
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2024 | 2023 | |||||||
| Production volumes: | ||||||||
| Crude oil (MBbls) | 566 | 730 | ||||||
| Natural gas (MMcf) | 2,180 | 2,407 | ||||||
| Natural gas liquids (MBbls) | 253 | 327 | ||||||
| Total (MBoe) | 1,182 | 1,458 | ||||||
| Average daily production (Boe/d) | 12,989 | 16,200 | ||||||
| Average prices: | ||||||||
| Crude oil (per Bbl) | $ | 74.96 | $ | 74.27 | ||||
| Natural gas (per Mcf) | 0.94 | 1.20 | ||||||
| Natural gas liquids (per Bbl) | 19.98 | 21.89 | ||||||
| Total per Boe | 41.91 | 44.08 | ||||||
| Cash effect of derivative contracts: | ||||||||
| Crude oil (per Bbl) | $ | (12.36 | ) | $ | (5.01 | ) | ||
| Natural gas (per Mcf) | 1.18 | 0.88 | ||||||
| Natural gas liquids (per Bbl) | — | — | ||||||
| Total per Boe | (3.74 | ) | (1.05 | ) | ||||
| Average prices computed after cash effect of settlement of derivative contracts: | ||||||||
| Crude oil (per Bbl) | $ | 62.60 | $ | 69.26 | ||||
| Natural gas (per Mcf) | 2.12 | 2.08 | ||||||
| Natural gas liquids (per Bbl) | 19.98 | 21.89 | ||||||
| Total per Boe | 38.17 | 43.03 | ||||||
| Average cost per Boe: | ||||||||
| Production: | ||||||||
| Lease operating | $ | 9.80 | $ | 8.02 | ||||
| Workover and other | 0.75 | 0.92 | ||||||
| Taxes other than income | 2.53 | 2.19 | ||||||
| Gathering and other | 14.62 | 11.33 | ||||||
| General and administrative, as adjusted (1) | 2.57 | 3.24 | ||||||
| Depletion | 10.68 | 10.84 | ||||||
| (1) Represents general and administrative costs per Boe, adjusted for items noted in the reconciliation below: | ||||||||
| General and administrative: | ||||||||
| General and administrative, as reported | $ | 3.44 | $ | 3.53 | ||||
| Stock-based compensation: | ||||||||
| Non-cash | (0.08 | ) | (0.16 | ) | ||||
| Non-recurring charges and other: | ||||||||
| Cash | (0.79 | ) | (0.13 | ) | ||||
| General and administrative, as adjusted(2) | $ | 2.57 | $ | 3.24 | ||||
| Total operating costs, as reported | $ | 31.14 | $ | 25.99 | ||||
| Total adjusting items | (0.87 | ) | (0.29 | ) | ||||
| Total operating costs, as adjusted(3) | $ | 30.27 | $ | 25.70 | ||||
| (2) | General and administrative, as adjusted, is a non-GAAP measure that excludes non-cash stock-based compensation charges relating to equity awards under our incentive stock plan, as well as other cash charges associated with non-recurring charges and other. The Company believes that it is useful to understand the effects that these charges have on general and administrative expenses and total operating costs and that exclusion of such charges is useful for comparison to prior periods. | |
| (3) | Represents lease operating expense, workover and other expense, taxes other than income, gathering and other expense and general and administrative costs per Boe, adjusted for items noted in the reconciliation above. | |
BATTALION OIL CORPORATION
RECONCILIATION (Unaudited)
(In thousands, except per share amounts)
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2024 | 2023 | |||||||
| As Reported: | ||||||||
| Net (loss) income available to common stockholders - diluted (1) | $ | (36,835 | ) | $ | 21,200 | |||
| Impact of Selected Items: | ||||||||
| Unrealized loss (gain) on derivatives contracts: | ||||||||
| Crude oil | $ | 21,417 | $ | (19,690 | ) | |||
| Natural gas | (1,656 | ) | (1,314 | ) | ||||
| Total mark-to-market non-cash charge | 19,761 | (21,004 | ) | |||||
| Change in fair value of embedded derivative liability | (928 | ) | (1,062 | ) | ||||
| Non-recurring charges | 937 | 183 | ||||||
| Selected items, before income taxes | 19,770 | (21,883 | ) | |||||
| Income tax effect of selected items | — | — | ||||||
| Selected items, net of tax | 19,770 | (21,883 | ) | |||||
| Net loss available to common stockholders, as adjusted (2) | $ | (17,065 | ) | $ | (683 | ) | ||
| Diluted net (loss) income per common share, as reported | $ | (2.24 | ) | $ | 1.28 | |||
| Impact of selected items | 1.20 | (1.32 | ) | |||||
| Diluted net loss per common share, excluding selected items (2)(3) | $ | (1.04 | ) | $ | (0.04 | ) | ||
| Net cash provided by (used in) operating activities | $ | 3,916 | $ | (689 | ) | |||
| Changes in working capital | 242 | 19,063 | ||||||
| Cash flows from operations before changes in working capital | 4,158 | 18,374 | ||||||
| Cash components of selected items | (496 | ) | 738 | |||||
| Income tax effect of selected items | — | — | ||||||
| Cash flows from operations before changes in working capital, adjusted for selected items (1) | $ | 3,662 | $ | 19,112 | ||||
| (1) | Amount reflects net (loss) income available to common stockholders on a diluted basis for earnings per share purposes as calculated using the two-class method of computing earnings per share which is further described in Note 10, Earnings Per Share in our Form 10-Q for the quarter ended March 31, 2024. | |
| (2) | Net (loss) income per share excluding selected items and cash flows from operations before changes in working capital adjusted for selected items are non-GAAP measures presented based on management's belief that they will enable a user of the financial information to understand the impact of these items on reported results. These financial measures are not measures of financial performance under GAAP and should not be considered as an alternative to net income, earnings per share and cash flows from operations, as defined by GAAP. These financial measures may not be comparable to similarly named non-GAAP financial measures that other companies may use and may not be useful in comparing the performance of those companies to Battalion's performance. | |
| (3) | The impact of selected items for the three months ended March 31, 2024 and 2023 were calculated based upon weighted average diluted shares of 16.5 million and 16.4 million shares, respectively, due to the net (loss) income available to common stockholders, excluding selected items. | |
BATTALION OIL CORPORATION
ADJUSTED EBITDA RECONCILIATION (Unaudited)
(In thousands)
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2024 | 2023 | |||||||
| Net (loss) income, as reported | $ | (31,203 | ) | $ | 22,811 | |||
| Impact of adjusting items: | ||||||||
| Interest expense | 8,391 | 9,009 | ||||||
| Depletion, depreciation and accretion | 13,025 | 16,148 | ||||||
| Stock-based compensation | 99 | 227 | ||||||
| Interest income | (701 | ) | (191 | ) | ||||
| Unrealized loss (gain) on derivatives contracts | 19,761 | (21,004 | ) | |||||
| Change in fair value of embedded derivative liability | (928 | ) | (1,062 | ) | ||||
| Non-recurring charges and other | 937 | 152 | ||||||
| Adjusted EBITDA(1) | $ | 9,381 | $ | 26,090 | ||||
| (1) | Adjusted EBITDA is a non-GAAP measure, which is presented based on management's belief that it will enable a user of the financial information to understand the impact of these items on reported results. This financial measure is not a measure of financial performance under GAAP and should not be considered as an alternative to GAAP measures, including net (loss) income. This financial measure may not be comparable to similarly named non-GAAP financial measures that other companies may use and may not be useful in comparing the performance of those companies to Battalion's performance. | |
BATTALION OIL CORPORATION
ADJUSTED EBITDA RECONCILIATION (Unaudited)
(In thousands)
| Three Months | Three Months | Three Months | Three Months | |||||||||||||
| Ended | Ended | Ended | Ended | |||||||||||||
| March 31, 2024 | December 31,2023 | September 30, 2023 | June 30, 2023 | |||||||||||||
| Net (loss) income, as reported | $ | (31,203 | ) | $ | 32,688 | $ | (53,799 | ) | $ | (4,748 | ) | |||||
| Impact of adjusting items: | ||||||||||||||||
| Interest expense | 8,391 | 8,917 | 9,219 | 9,366 | ||||||||||||
| Depletion, depreciation and accretion | 13,025 | 12,337 | 13,426 | 14,713 | ||||||||||||
| Stock-based compensation | 99 | 161 | (686 | ) | (772 | ) | ||||||||||
| Interest income | (701 | ) | (525 | ) | (293 | ) | (234 | ) | ||||||||
| Unrealized loss (gain) on derivatives contracts | 19,761 | (45,403 | ) | 46,805 | (2,332 | ) | ||||||||||
| Change in fair value of embedded derivative liability | (928 | ) | 529 | (1,878 | ) | 358 | ||||||||||
| Non-recurring charges (credits) and other | 937 | 1,268 | 831 | 477 | ||||||||||||
| Adjusted EBITDA(1) | $ | 9,381 | $ | 9,972 | $ | 13,625 | $ | 16,828 | ||||||||
| Adjusted LTM EBITDA(1) | $ | 49,806 | ||||||||||||||
| (1) | Adjusted EBITDA is a non-GAAP measure, which is presented based on management's belief that it will enable a user of the financial information to understand the impact of these items on reported results. This financial measure is not a measure of financial performance under GAAP and should not be considered as an alternative to GAAP measures, including net (loss) income. This financial measure may not be comparable to similarly named non-GAAP financial measures that other companies may use and may not be useful in comparing the performance of those companies to Battalion's performance. | |
BATTALION OIL CORPORATION
ADJUSTED EBITDA RECONCILIATION (Unaudited)
(In thousands)
| Three Months | Three Months | Three Months | Three Months | |||||||||||||
| Ended | Ended | Ended | Ended | |||||||||||||
| March 31, 2023 | December 31,2022 | September 30, 2022 | June 30, 2022 | |||||||||||||
| Net income (loss), as reported | $ | 22,811 | (7,652 | ) | 105,888 | 13,047 | ||||||||||
| Impact of adjusting items: | ||||||||||||||||
| Interest expense | 9,009 | 9,378 | 6,232 | 5,394 | ||||||||||||
| Depletion, depreciation and accretion | 16,148 | 15,479 | 13,615 | 12,601 | ||||||||||||
| Stock-based compensation | 227 | 670 | 683 | 473 | ||||||||||||
| Interest income | (191 | ) | (227 | ) | (141 | ) | (1 | ) | ||||||||
| Unrealized loss (gain) on derivatives contracts | (21,004 | ) | 3,655 | (102,112 | ) | (12,837 | ) | |||||||||
| Change in fair value of embedded derivative liability | (1,062 | ) | 1,224 | (449 | ) | (562 | ) | |||||||||
| Non-recurring charges (credits) and other | 152 | 194 | 597 | 53 | ||||||||||||
| Adjusted EBITDA(1) | $ | 26,090 | $ | 22,721 | $ | 24,313 | $ | 18,168 | ||||||||
| Adjusted LTM EBITDA(1) | $ | 91,292 | ||||||||||||||
| (1) | Adjusted EBITDA is a non-GAAP measure, which is presented based on management's belief that it will enable a user of the financial information to understand the impact of these items on reported results. This financial measure is not a measure of financial performance under GAAP and should not be considered as an alternative to GAAP measures, including net income (loss). This financial measure may not be comparable to similarly named non-GAAP financial measures that other companies may use and may not be useful in comparing the performance of those companies to Battalion's performance. | |
FAQ
What were Battalion Oil 's Q1 2024 production levels?
How much revenue did Battalion Oil generate in Q1 2024?
What was Battalion Oil 's net loss for Q1 2024?
How did Battalion Oil 's Q1 2024 revenue compare year-over-year?
What is the projected monthly cost savings from the AGI project?
How much did Battalion Oil raise through preferred equity in March and May 2024?
What were the lease operating and workover expenses for Battalion Oil in Q1 2024?
What were the gathering and other expenses for Battalion Oil in Q1 2024?
What is the impact of the ongoing merger with Fury Resources on Battalion Oil ?
How did Battalion Oil 's realized hedge losses impact Q1 2024?
