Battalion Oil Corporation Announces Fourth Quarter 2024 Financial and Operating Results

Rhea-AI Summary

Battalion Oil (NYSE: BATL) has released its Q4 2024 financial results, reporting average daily production of 12,750 Boe/d (55% oil) and operating revenue of $49.7 million. The company posted a net loss of $30.9 million ($1.88 per share) for Q4 2024.

Key operational highlights include completion of term loan refinancing, full-year production of 12,667 Boe/d (51% oil), and year-end reserves of 64.9 MMBoe with standardized measure of $447.7 million. The AGI facility processed 20 MMcf/d average during Q4, treating 1.8 Bcf total.

The company's 2024 six-well campaign was completed under budget at less than $950 per lateral foot, with impressive production rates: newest pad averaging 811 Boe/d (120 days), second pad exceeding 747 Boe/d (275 days), and first pad surpassing 1,085 Boe/d (404 days). Battalion has already drilled four wells of its 2025 six-well plan.

Positive

• Production increased by 728 Boe/d year-over-year in Q4 2024
• Revenue grew to $49.7 million in Q4 2024 from $47.2 million in Q4 2023
• Well costs reduced to under $950 per lateral foot
• New wells performing above type curve expectations
• Adjusted EBITDA improved to $18.0 million from $10.0 million year-over-year
• Operating expenses decreased from $11.87 to $11.26 per Boe year-over-year

Negative

• Net loss of $30.9 million ($1.88 per share) in Q4 2024
• Increased G&A expenses to $6.04 per Boe from $4.93 per Boe year-over-year
• Terminated merger agreement with Fury Resources
• Substantial debt obligations with $225 million in term loans

Insights

Financial Analyst

Battalion Oil's Q4 2024 results present a mixed financial picture with some important improvements alongside persistent challenges. The company reported $49.7 million in revenue, a modest increase from $47.2 million in Q4 2023, driven primarily by higher production volumes that offset slightly lower realized prices.

The company's adjusted EBITDA showed substantial improvement at $18.0 million, up 80% from $10.0 million in the year-ago quarter. However, Battalion still reported a significant net loss of $30.9 million ($1.88 per share). After adjusting for selected items, the adjusted net loss was much smaller at $0.7 million ($0.04 per share), suggesting substantial non-recurring or non-cash charges.

The most significant financial development is the refinancing of Battalion's term loan, which improves near-term liquidity but increases long-term obligations. The new $225 million term loan (after the January 2025 incremental borrowing) extends maturity to December 2028 but introduces quarterly amortization payments beginning Q2 2025. The company faces required principal payments of $16.9 million in 2025 and $22.5 million in 2026, representing significant cash flow commitments.

Cost efficiency metrics show improvement, with lease operating expenses decreasing to $11.26 per Boe from $11.87 year-over-year, and gathering expenses dropping to $10.45 per Boe from $13.31. The AGI facility is contributing to these cost reductions by eliminating more expensive treating alternatives.

The termination of the previously announced merger with Fury Resources introduces strategic uncertainty, with the company noting Fury failed to meet funding and closing requirements. While avoiding a potentially problematic merger may be positive long-term, it raises questions about Battalion's strategic direction.

Energy Sector Analyst

Battalion's operational metrics show encouraging progress across their Delaware Basin assets. Production volumes increased to 12,750 Boe/d in Q4 2024, up 6% from Q4 2023, with a more favorable oil-weighted production mix (55% oil vs 46% previously). This shift toward higher-value oil production enhances revenue potential.

The company's drilling efficiency continues to improve, with well costs remaining under $950 per lateral foot, beating their authorization for expenditure (AFE) estimates. This capital discipline is crucial for generating acceptable returns in moderate commodity price environments.

Initial production rates from Battalion's 2024 drilling program are outperforming type curves across all three pads:

• The first pad exceeding 1,085 Boe/d across 404 days
• The second pad producing over 747 Boe/d for 275 days
• The newest pad averaging 811 Boe/d through 120 days

These results suggest better-than-expected reservoir quality and completion effectiveness, potentially improving ultimate recovery estimates.

The acid gas injection facility represents a significant operational achievement, processing approximately 20 MMcf/d of sour gas during Q4. The facility has already treated 6.9 Bcf of sour gas since activation, returning approximately 16 MMcf/d of sweet gas for sales. This infrastructure addresses a critical production constraint while reducing operating costs compared to previous treating methods.

Battalion's year-end 2024 proved reserves stand at approximately 64.9 MMBoe with a standardized measure of $447.7 million, providing a solid foundation for future development. The company's 2025 drilling program is already underway with four wells drilled in Monument Draw and completion operations beginning on the first two wells, with all projects reported ahead of plan and under budget.

HOUSTON, March 31, 2025 (GLOBE NEWSWIRE) -- Battalion Oil Corporation (NYSE American: BATL, “Battalion” or the “Company”) today announced financial and operating results for the fourth quarter of 2024.

Key Highlights

• Completed the refinancing of our term loan on favorable terms resulting in an increase in liquidity
• Generated full-year sales volumes of 12,667 barrels of oil equivalent per day (“Boe/d”) (51% oil)
• Continued to lower capex per well, outperforming AFE estimates
• AGI facility online and treated 1.8 Bcf for the fourth quarter of 2024
• Spud two additional wells in Monument Draw in December to commence 2025 six-well activity plan
• Year-end 2024 reserves of approximately 64.9 million barrels of oil equivalent (“MMBoe”) with a standardized measure of discounted future net cash flows of approximately $447.7 million
• Terminated the previously announced Merger Agreement with Fury
  

Management Comments
The Company concluded its 2024 six-well campaign ahead of planned timing and under budget on each pad. Final well capital remains under $950 per lateral foot. The completed pad wells are producing ahead of type curve with the newest pad averaging over 811 Boe/d across the initial 120 days online, the second pad exceeding 747 Boe/d across the initial 275 days online and the first pad exceeding 1,085 Boe/d across 404 days on production. In December 2024, the Company also commenced drilling operations in Monument Draw as part of its 2025 six-well activity plan. As of the date of this release, the Company has drilled four of these wells in Monument Draw and has commenced completion operations on the first two wells. All wells are ahead of plan and under budget. The final two wells are permitted in the Company’s West Quito asset area with additional permits and drilling pads being built in Hackberry Draw.

During the fourth quarter 2024, the acid gas injection (“AGI”) facility treated approximately 20 MMcf/d average and returned approximately 16 MMcf/d of sweet gas to the Company for sales to its midstream partner. To date, the AGI facility has processed more than 6.9 Bcf of sour gas and allowed the Company to realize substantial savings compared to treating alternatives.

Results of Operations
Average daily net production and total operating revenue during the fourth quarter of 2024 were 12,750 Boe/d (55% oil) and $49.7 million, respectively, as compared to production and revenue of 12,022 Boe/d (46% oil) and $47.2 million, respectively, during the fourth quarter of 2023. The increase in revenues in the fourth quarter of 2024 as compared to the fourth quarter of 2023 is primarily attributable to an approximate 728 Boe/d increase in average daily production partially offset by a $0.22 decrease in average realized prices (excluding the impact of hedges). Excluding the impact of hedges, Battalion realized 96.9% of the average NYMEX oil price during the fourth quarter of 2024. Realized hedge gains totaled approximately less than $0.1 million during the fourth quarter of 2024.

Lease operating and workover expense was $11.26 per Boe in the fourth quarter of 2024 versus $11.87 per Boe in the fourth quarter of 2023. The decrease in lease operating and workover expense per Boe year-over-year is primarily a result of the increase in average daily production. Gathering and other expenses were $10.45 per Boe in the fourth quarter of 2024 versus $13.31 per Boe in the fourth quarter of 2023. The decrease in gathering and other expenses per Boe is primarily related to the start-up of the AGI facility and lower treating fees associated compared to the Valkyrie (liquid redox) plant. General and administrative expenses were $6.04 per Boe in the fourth quarter of 2024 compared to $4.93 per Boe in the fourth quarter of 2023. The increase in general and administrative expense is primarily attributable to an increase in audit, legal and transaction costs associated with the terminated merger with Fury Resources. Excluding non-recurring charges, general and administrative expenses would have been $3.22 per Boe in the fourth quarter of 2024 compared to $3.78 per Boe in the fourth quarter of 2023.

For the fourth quarter of 2024, the Company reported a net loss available to common stockholders of $30.9 million and a net loss of $1.88 per share available to common stockholders. After adjusting for selected items, the Company reported an adjusted diluted net loss available to common stockholders for the fourth quarter of 2024 of $0.7 million or an adjusted diluted net loss of $0.04 per common share (see Reconciliation for additional information). Adjusted EBITDA during the quarter ended December 31, 2024 was $18.0 million as compared to $10.0 million during the quarter ended December 31, 2023 (see Adjusted EBITDA Reconciliation table for additional information).

Liquidity and Balance Sheet
As of December 31, 2024, the Company had $162.1 million of indebtedness outstanding. Total liquidity on December 31, 2024, made up of cash and cash equivalents, was $19.7 million.

On January 9, 2025, the Company incurred incremental term loans in the aggregate principal amount of $63.0 million, resulting in a net increase in liquidity of $61.3 million.

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.

Merger Agreement with Fury Resources
Subsequent to several amendments to the previously disclosed Agreement and Plan of Merger, dated December 14, 2023 (as amended, the “Merger Agreement”) and upon the failure of Fury Resources, Inc. to meet the funding and closing requirements of the Merger Agreement, the Company terminated the Merger.

Refinanced Term Loan Agreement
On December 26, 2024, the Company entered into the Second Amended and Restated Senior Secured Credit Agreement with Fortress Credit Corp., as administrative agent, and certain other financial institutions, as lenders (the “2024 Term Loan Agreement”). Pursuant to the 2024 Term Loan Agreement, the Company entered into an initial term loan facility in the aggregate principal amount of $162.0 million, funded on December 26, 2024 and an incremental term loan facility in the aggregate principal amount of up to $63.0 million. On January 9, 2025, the Company entered into the First Amendment to the 2024 Term Loan Agreement and incurred $63.0 million of Incremental Term Loans (the “2024 Amended Term Loan Agreement”), resulting in total outstanding borrowings of $225.0 million.

The maturity date of the 2024 Amended Term Loan Agreement is December 26, 2028.

All obligations under the Company’s existing term loan agreement were refunded, refinanced and repaid in full by the loans under the 2024 Term Loan Agreement as the net proceeds of the 2024 Term Loan Agreement were used to repay all outstanding indebtedness under the existing term loan agreement in an aggregate amount of approximately $152.1 million, including accrued and unpaid interest, and to pay related fees and expenses related to the new credit agreement.

The Company is required to make scheduled quarterly amortization payments in an aggregate principal amount equal to 2.50% of the aggregate principal amount of the loans outstanding commencing with the fiscal quarter ending June 30, 2025. Under the 2024 Amended Term Loan Agreement, the Company must make scheduled amortization payments in the aggregate amount of $16.9 million in 2025 and $22.5 million in 2026.

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								Years Ended
		December 31,								December 31,
		2024				2023				2024				2023
Operating revenues:
Oil, natural gas and natural gas liquids sales:
Oil		$	43,934			$	39,562			$	174,607			$	183,634
Natural gas			447				2,429				(2,213	)			11,057
Natural gas liquids			5,118				4,921				20,822				23,814
Total oil, natural gas and natural gas liquids sales			49,499				46,912				193,216				218,505
Other			154				330				677				2,257
Total operating revenues			49,653				47,242				193,893				220,762
Operating expenses:
Production:
Lease operating			11,082				10,656				45,275				44,864
Workover and other			2,127				2,480				5,215				7,149
Taxes other than income			2,366				2,266				11,238				11,943
Gathering and other			12,263				14,718				54,117				63,575
General and administrative			7,091				5,453				18,356				19,025
Depletion, depreciation and accretion			14,155				12,337				52,926				56,624
Impairment of contract asset			18,511				—				18,511				—
Total operating expenses			67,595				47,910				205,638				203,180
(Loss) income from operations			(17,942	)			(668	)			(11,745	)			17,582
Other income (expenses):
Net (loss) gain on derivative contracts			(1,624	)			42,430				2,308				12,689
Interest expense and other			4,853				(9,074	)			(14,956	)			(33,319	)
Loss on extinguishment of debt			(7,489	)			—				(7,489	)			—
Total other income expenses			(4,260	)			33,356				(20,137	)			(20,630	)
(Loss) income before income taxes			(22,202	)			32,688				(31,882	)			(3,048	)
Income tax benefit (provision)			—				—				—				—
Net (loss) income		$	(22,202	)		$	32,688			$	(31,882	)		$	(3,048	)
Preferred dividends			(8,679	)			(5,695	)			(32,219	)			(12,047	)
Net (loss) income available to common stockholders		$	(30,881	)		$	26,993			$	(64,101	)		$	(15,095	)
Net (loss) income per share of common stock:
Basic		$	(1.88	)		$	1.64			$	(3.90	)		$	(0.92	)
Diluted		$	(1.88	)		$	1.63			$	(3.90	)		$	(0.92	)
Weighted average common shares outstanding:
Basic			16,457				16,457				16,457				16,441
Diluted			16,457				16,517				16,457				16,441

BATTALION OIL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share and per share amounts)
		December 31, 2024				December 31, 2023
Current assets:
Cash and cash equivalents		$	19,712			$	57,529
Accounts receivable, net			26,298				23,021
Assets from derivative contracts			6,969				8,992
Restricted cash			91				90
Prepaids and other			982				907
Total current assets			54,052				90,539
Oil and natural gas properties (full cost method):
Evaluated			816,186				755,482
Unevaluated			49,091				58,909
Gross oil and natural gas properties			865,277				814,391
Less - accumulated depletion			(497,272	)			(445,975	)
Net oil and natural gas properties			368,005				368,416
Other operating property and equipment:
Other operating property and equipment			4,663				4,640
Less - accumulated depreciation			(2,455	)			(1,817	)
Net other operating property and equipment			2,208				2,823
Other noncurrent assets:
Assets from derivative contracts			4,052				4,877
Operating lease right of use assets			453				1,027
Other assets			2,278				17,656
Total assets		$	431,048			$	485,338
Current liabilities:
Accounts payable and accrued liabilities		$	52,682			$	66,525
Liabilities from derivative contracts			12,330				17,191
Current portion of long-term debt			12,246				50,106
Operating lease liabilities			406				594
Total current liabilities			77,664				134,416
Long-term debt, net			145,535				140,276
Other noncurrent liabilities:
Liabilities from derivative contracts			6,954				16,058
Asset retirement obligations			19,156				17,458
Operating lease liabilities			84				490
Other			—				2,084
Commitments and contingencies
Temporary equity:
Redeemable convertible preferred stock: 138,000 shares and 98,000 shares			177,535				106,535
of $0.0001 par value authorized, issued and outstanding as of
December 31, 2024 and 2023, respectively
Stockholders' equity:
Common stock: 100,000,000 shares of $0.0001 par value authorized;
16,456,563 shares issued and outstanding as of December 31, 2024
and 2023			2				2
Additional paid-in capital			288,993				321,012
Accumulated deficit			(284,875	)			(252,993	)
Total stockholders' equity			4,120				68,021
Total liabilities and stockholders' equity		$	431,048			$	485,338

BATTALION OIL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands)
		Three Months Ended								Years Ended
		December 31,								December 31,
		2024				2023				2024				2023
Cash flows from operating activities:
Net income (loss)		$	(22,202	)		$	32,688			$	(31,882	)		$	(3,048	)
Adjustments to reconcile net (loss) income to net cash provided by
operating activities:
Depletion, depreciation and accretion			14,155				12,337				52,926				56,624
Impairment of contract asset			18,511				—				18,511				—
Stock-based compensation, net			12				161				152				(1,070	)
Unrealized gain on derivative contracts			1,648				(45,403	)			(11,116	)			(21,934	)
Amortization/accretion of financing related costs			1,469				1,826				6,418				7,615
Loss (gain) on extinguishment of debt			7,489				—				7,489				—
Accrued settlements on derivative contracts			1,505				(2,587	)			403				259
Change in fair value of embedded derivative liability			(761	)			530				(2,084	)			(2,052	)
Other expense (income)			46				214				324				358
Cash flow from operations before changes in working capital			21,872				(234	)			41,141				36,752
Changes in working capital			(15,186	)			6,758				(5,786	)			(19,163	)
Net cash provided by operating activities			6,686				6,524				35,355				17,589
Cash flows from investing activities:
Oil and natural gas capital expenditures			(12,847	)			(16,196	)			(64,625	)			(46,288	)
Proceeds received from sales of oil and natural gas assets			—				3,740				7,015				4,929
Acquisition of oil and natural gas properties			—				—				(47	)			—
Other operating property and equipment capital expenditures			(4	)			(17	)			(23	)			(153	)
Contract asset			—				(3,705	)			(7,737	)			(10,308	)
Other			(6	)			1,439				(26	)			(25	)
Net cash used in investing activities			(12,857	)			(14,739	)			(65,443	)			(51,845	)
Cash flows from financing activities:
Proceeds from borrowings			162,000				—				162,000				-
Repayments of borrowings			(147,726	)			(10,027	)			(200,109	)			(35,093	)
Payment of deferred financing costs			(8,225	)			—				(8,400	)			—
Proceeds from issuance of preferred stock			—				33,182				38,781				94,607
Merger deposit			(10,000	)			—				—				—
Other			—				(1	)			—				(455	)
Net cash (used in) provided by financing activities			(3,951	)			23,154				(7,728	)			59,059
Net (decrease) increase in cash, cash equivalents and restricted cash			(10,122	)			14,939				(37,816	)			24,803
Cash, cash equivalents and restricted cash at beginning of period			29,925				42,680				57,619				32,816
Cash, cash equivalents and restricted cash at end of period		$	19,803			$	57,619			$	19,803			$	57,619

BATTALION OIL CORPORATION SELECTED OPERATING DATA (Unaudited)
		Three Months Ended December 31,								Years Ended December 31,
		2024				2023				2024				2023
Production volumes:
Crude oil (MBbls)			643				510				2,363				2,415
Natural gas (MMcf)			1,861				2,102				7,814				8,718
Natural gas liquids (MBbls)			220				246				971				1,163
Total (MBoe)			1,173				1,106				4,636				5,031
Average daily production (Boe/d)			12,750				12,022				12,667				13,784
Average prices:
Crude oil (per Bbl)		$	68.33			$	77.57			$	73.89			$	76.04
Natural gas (per Mcf)			0.24				1.16				(0.28	)			1.27
Natural gas liquids (per Bbl)			23.26				20.00				21.44				20.48
Total per Boe			42.20				42.42				41.68				43.43
Cash effect of derivative contracts:
Crude oil (per Bbl)		$	(8.99	)		$	(10.43	)		$	(11.32	)		$	(7.76	)
Natural gas (per Mcf)			3.12				1.12				2.30				1.09
Natural gas liquids (per Bbl)			—				—				—				—
Total per Boe			0.02				(2.69	)			(1.90	)			(1.84	)
Average prices computed after cash effect of settlement of derivative contracts:
Crude oil (per Bbl)		$	59.34			$	67.14			$	62.57			$	68.28
Natural gas (per Mcf)			3.36				2.28				2.02				2.36
Natural gas liquids (per Bbl)			23.26				20.00				21.44				20.48
Total per Boe			42.22				39.73				39.78				41.59
Average cost per Boe:
Production:
Lease operating		$	9.45			$	9.63			$	9.77			$	8.92
Workover and other			1.81				2.24				1.12				1.42
Taxes other than income			2.02				2.05				2.42				2.37
Gathering and other			10.45				13.31				11.67				12.64
General and administrative, as adjusted (1)			3.21				3.63				2.72				3.39
Depletion			11.71				10.80				11.06				10.97
(1) Represents general and administrative costs per Boe, adjusted for items noted in the reconciliation below:
General and administrative:
General and administrative, as reported		$	6.04			$	4.93			$	3.96			$	3.78
Stock-based compensation:
Non-cash			(0.01	)			(0.15	)			(0.03	)			0.21
Non-recurring (charges) credits and other:
Cash			(2.82	)			(1.15	)			(1.21	)			(0.60	)
General and administrative, as adjusted(2)		$	3.21			$	3.63			$	2.72			$	3.39
Total operating costs, as reported		$	29.77			$	32.16			$	28.94			$	29.13
Total adjusting items			(2.83	)			(1.30	)			(1.24	)			(0.39	)
Total operating costs, as adjusted(3)		$	26.94			$	30.86			$	27.70			$	28.74

________________________
(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								Years Ended
		December 31,								December 31,
		2024				2023				2024				2023
As Reported:
Net (loss) income available to common stockholders - diluted (1)		$	(30,881	)		$	26,993			$	(64,101	)		$	(15,095	)
Impact of Selected Items:
Unrealized loss (gain) on derivatives contracts:
Crude oil		$	96			$	(38,604	)		$	(10,371	)		$	(22,601	)
Natural gas			1,552				(6,799	)			(745	)			667
Total mark-to-market non-cash charge			1,648				(45,403	)			(11,116	)			(21,934	)
Impairment of contract asset			18,511				—				18,511				—
Loss (gain) on extinguishment of debt			7,489				—				7,489				—
Change in fair value of embedded derivative liability			(761	)			529				(2,084	)			(2,053	)
Non-recurring charges (credits)			3,310				1,268				5,609				3,042
Selected items, before income taxes			30,197				(43,606	)			18,409				(20,945	)
Income tax effect of selected items			—				—				—				—
Selected items, net of tax		$	30,197			$	(43,606	)		$	18,409			$	(20,945	)
Net (loss) available to common stockholders, as adjusted (2)		$	(684	)		$	(16,613	)		$	(45,692	)		$	(36,040	)
Diluted net (loss) income per common share, as reported		$	(1.88	)		$	1.63			$	(3.90	)		$	(0.92	)
Impact of selected items			1.84				(2.65	)			1.12				(1.29	)
Diluted net (loss) per common share, excluding selected items (2)(3)		$	(0.04	)		$	(1.02	)		$	(2.78	)		$	(2.21	)
Net cash provided by operating activities		$	6,686			$	6,524			$	35,355			$	17,589
Changes in working capital			15,186				(6,758	)			5,786				19,163
Cash flow from operations before changes in working capital			21,872				(234	)			41,141				36,752
Cash components of selected items			2,611				4,707				6,012				3,301
Income tax effect of selected items			—				—				—				—
Cash flows from operations before changes in working capital, adjusted for selected items (1)		$	24,483			$	4,473			$	47,153			$	40,053

________________________
(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 15, Earnings Per Share in our Form 10-K for the year ended December 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 and twelve months ended December 31, 2024 were calculated based upon weighted average diluted shares of 16.5 million, due to the net (loss) available to common stockholders, excluding selected items. The impact of selected items for the three and twelve months ended December 31, 2023 were calculated based upon weighted average diluted shares of 16.5 million and 16.4 million shares, respectively, due to the net (loss) available to common stockholders, excluding selected items.

BATTALION OIL CORPORATION ADJUSTED EBITDA RECONCILIATION (Unaudited) (In thousands)
		Three Months Ended December 31,								Years Ended December 31,
		2024				2023				2024				2023
Net income (loss), as reported		$	(22,202	)		$	32,688			$	(31,882	)		$	(3,048	)
Impact of adjusting items:
Interest expense			6,135				8,917				29,009				36,511
Depletion, depreciation and accretion			14,155				12,337				52,926				56,624
Impairment of contract asset			18,511				—				18,511				—
Stock-based compensation			12				161				152				(1,070	)
Interest income			(278	)			(525	)			(2,122	)			(1,243	)
Loss (gain) on extinguishment of debt			7,489				—				7,489				—
Unrealized loss (gain) on derivatives contracts			1,648				(45,403	)			(11,116	)			(21,934	)
Change in fair value of embedded derivative liability			(761	)			529				(2,084	)			(2,053	)
Merger Termination Payment			(10,000	)			—				(10,000	)			—
Non-recurring charges (credits) and other			3,310				1,268				5,609				2,728
Adjusted EBITDA(1)		$	18,019			$	9,972			$	56,492			$	66,515

________________________
(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
		December 31, 2024				September 30, 2024				June 30, 2024				March 31, 2024
Net income (loss), as reported		$	(22,202	)		$	21,628			$	(105	)		$	(31,203	)
Impact of adjusting items:
Interest expense			6,135				6,873				7,610				8,391
Depletion, depreciation and accretion			14,155				12,533				13,213				13,025
Impairment of contract asset			18,511				—				—				—
Stock-based compensation			12				5				36				99
Interest income			(278	)			(509	)			(634	)			(701	)
Loss (gain) on extinguishment of debt			7,489				—				—				—
Unrealized loss (gain) on derivatives contracts			1,648				(28,091	)			(4,434	)			19,761
Change in fair value of embedded derivative liability			(761	)			41				(436	)			(928	)
Merger Termination Payment			(10,000	)			—				—				—
Non-recurring charges (credits) and other			3,310				978				384				937
Adjusted EBITDA(1)		$	18,019			$	13,458			$	15,634			$	9,381
Adjusted LTM EBITDA(1)		$	56,492

________________________
(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
		December 31, 2023				September 30, 2023				June 30, 2023				March 31, 2023
Net income (loss), as reported		$	32,688			$	(53,799	)		$	(4,748	)		$	22,811
Impact of adjusting items:
Interest expense			8,917				9,219				9,366				9,009
Depletion, depreciation and accretion			12,337				13,426				14,713				16,148
Stock-based compensation			161				(686	)			(772	)			227
Interest income			(525	)			(293	)			(234	)			(191	)
Unrealized loss (gain) on derivatives contracts			(45,403	)			46,805				(2,332	)			(21,004	)
Change in fair value of embedded derivative liability			529				(1,878	)			358				(1,062	)
Non-recurring charges (credits) and other			1,268				831				477				152
Adjusted EBITDA(1)		$	9,972			$	13,625			$	16,828			$	26,090
Adjusted LTM EBITDA(1)		$	66,515

________________________
(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 (BATL) Q4 2024 production and revenue figures?

Battalion achieved production of 12,750 Boe/d (55% oil) and revenue of $49.7 million in Q4 2024, up from 12,022 Boe/d and $47.2 million in Q4 2023.

How much did Battalion Oil (BATL) save on well costs in 2024?

Battalion completed its wells under budget at less than $950 per lateral foot, outperforming AFE estimates.

What is Battalion Oil's (BATL) debt position as of December 2024?

Battalion had $162.1 million in outstanding indebtedness as of December 31, 2024, with total liquidity of $19.7 million.

How did Battalion Oil's (BATL) new wells perform in terms of production?

The newest pad averaged 811 Boe/d over 120 days, second pad exceeded 747 Boe/d over 275 days, and first pad surpassed 1,085 Boe/d over 404 days.

What are the terms of Battalion Oil's (BATL) new term loan agreement?

The 2024 Amended Term Loan Agreement totals $225 million, matures December 26, 2028, with quarterly payments of 2.50% starting June 2025.