Battalion Oil Corporation Announces Second Quarter 2023 Financial and Operating Results
- Acid gas injection project expected online before year end
- Company obtained commitment letter for $38 million preferred equity securities
- Decrease in revenues due to lower average realized prices
HOUSTON, Aug. 21, 2023 (GLOBE NEWSWIRE) -- Battalion Oil Corporation (NYSE American: BATL, “Battalion” or the “Company”) today announced financial and operating results for the second quarter of 2023.
Key Highlights
- Generated second quarter 2023 sales volumes of 14,253 barrels of oil equivalent per day (“Boe/d”)
- Continued robust production results from our most recent wells
- Generated net loss of
$4.7 million and Adjusted EBITDA of$16.8 million in the second quarter of 2023
Management Comments
The Company has continued to work with its partner on the previously announced acid gas injection (“AGI”) project and now expects to have the facility online before year end. Additional compression and well work are underway to maximize the expense savings potential of the project once it is fully online. The latest Monument Draw well continues to outperform offset wells and has produced over 217,000 Boe in its first six months on production while flowing naturally without artificial lift.
Matt Steele, Chief Executive Officer, commented, “In the second quarter, we prepared to recommence drilling activity in Monument Draw. We also worked diligently with our midstream partner to progress the AGI commissioning. We look forward to our drilling program and increasing EBITDA in the back half of the year.”
Results of Operations
Average daily net production and total operating revenue during the second quarter of 2023 were 14,253 Boe/d (
Lease operating and workover expense was
The Company reported net loss for the second quarter of 2023 of
Liquidity and Balance Sheet
As of June 30, 2023, the Company had
In August 2023, the Company obtained a commitment letter from its existing equity shareholders to purchase additional preferred equity securities in an amount up to
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, 2022, and other filings submitted by the Company to the U.S. Securities and Exchange Commission (“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
832-541-8334
BATTALION OIL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share amounts)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Operating revenues: | ||||||||||||||||
| Oil, natural gas and natural gas liquids sales: | ||||||||||||||||
| Oil | $ | 46,168 | $ | 73,944 | $ | 100,383 | $ | 136,468 | ||||||||
| Natural gas | 2,060 | 14,759 | 4,960 | 23,640 | ||||||||||||
| Natural gas liquids | 5,657 | 12,587 | 12,815 | 22,590 | ||||||||||||
| Total oil, natural gas and natural gas liquids sales | 53,885 | 101,290 | 118,158 | 182,698 | ||||||||||||
| Other | 387 | 221 | 1,256 | 415 | ||||||||||||
| Total operating revenues | 54,272 | 101,511 | 119,414 | 183,113 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Production: | ||||||||||||||||
| Lease operating | 11,365 | 11,909 | 23,056 | 23,433 | ||||||||||||
| Workover and other | 2,634 | 1,383 | 3,969 | 2,248 | ||||||||||||
| Taxes other than income | 3,180 | 5,372 | 6,370 | 10,323 | ||||||||||||
| Gathering and other | 16,828 | 15,869 | 33,345 | 31,124 | ||||||||||||
| General and administrative | 5,243 | 4,588 | 10,380 | 9,573 | ||||||||||||
| Depletion, depreciation and accretion | 14,713 | 12,601 | 30,861 | 22,821 | ||||||||||||
| Total operating expenses | 53,963 | 51,722 | 107,981 | 99,522 | ||||||||||||
| Income (loss) from operations | 309 | 49,789 | 11,433 | 83,591 | ||||||||||||
| Other income (expenses): | ||||||||||||||||
| Net gain (loss) on derivative contracts | 4,473 | (31,910 | ) | 23,946 | (155,768 | ) | ||||||||||
| Interest expense and other | (9,530 | ) | (4,832 | ) | (17,316 | ) | (7,520 | ) | ||||||||
| Total other income (expenses) | (5,057 | ) | (36,742 | ) | 6,630 | (163,288 | ) | |||||||||
| Income (loss) before income taxes | (4,748 | ) | 13,047 | 18,063 | (79,697 | ) | ||||||||||
| Income tax benefit (provision) | — | — | — | — | ||||||||||||
| Net income (loss) | $ | (4,748 | ) | $ | 13,047 | $ | 18,063 | $ | (79,697 | ) | ||||||
| Net income (loss) per share of common stock: | ||||||||||||||||
| Basic | $ | (0.35 | ) | $ | 0.80 | $ | 0.87 | $ | (4.88 | ) | ||||||
| Diluted | $ | (0.35 | ) | $ | 0.79 | $ | 0.86 | $ | (4.88 | ) | ||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 16,457 | 16,338 | 16,425 | 16,320 | ||||||||||||
| Diluted | 16,457 | 16,510 | 16,520 | 16,320 | ||||||||||||
BATTALION OIL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands, except share and per share amounts)
| June 30, 2023 | December 31, 2022 | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 18,514 | $ | 32,726 | ||||
| Accounts receivable, net | 23,518 | 37,974 | ||||||
| Assets from derivative contracts | 9,611 | 16,244 | ||||||
| Restricted cash | 90 | 90 | ||||||
| Prepaids and other | 1,049 | 1,131 | ||||||
| Total current assets | 52,782 | 88,165 | ||||||
| Oil and natural gas properties (full cost method): | ||||||||
| Evaluated | 727,347 | 713,585 | ||||||
| Unevaluated | 62,649 | 62,621 | ||||||
| Gross oil and natural gas properties | 789,996 | 776,206 | ||||||
| Less - accumulated depletion | (420,964 | ) | (390,796 | ) | ||||
| Net oil and natural gas properties | 369,032 | 385,410 | ||||||
| Other operating property and equipment: | ||||||||
| Other operating property and equipment | 4,674 | 4,434 | ||||||
| Less - accumulated depreciation | (1,486 | ) | (1,209 | ) | ||||
| Net other operating property and equipment | 3,188 | 3,225 | ||||||
| Other noncurrent assets: | ||||||||
| Assets from derivative contracts | 5,299 | 5,379 | ||||||
| Operating lease right of use assets | 162 | 352 | ||||||
| Other assets | 2,778 | 2,827 | ||||||
| Total assets | $ | 433,241 | $ | 485,358 | ||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 48,897 | $ | 100,095 | ||||
| Liabilities from derivative contracts | 15,480 | 29,286 | ||||||
| Current portion of long-term debt | 42,606 | 35,067 | ||||||
| Operating lease liabilities | 162 | 352 | ||||||
| Asset retirement obligations | 111 | 225 | ||||||
| Total current liabilities | 107,256 | 165,025 | ||||||
| Long-term debt, net | 164,055 | 182,676 | ||||||
| Other noncurrent liabilities: | ||||||||
| Liabilities from derivative contracts | 17,406 | 33,649 | ||||||
| Asset retirement obligations | 15,741 | 15,244 | ||||||
| Operating lease liabilities | — | — | ||||||
| Deferred income taxes | — | — | ||||||
| Other | 3,432 | 4,136 | ||||||
| Commitments and contingencies | ||||||||
| Temporary equity: | ||||||||
| Series A redeemable convertible preferred stock: 25,000 shares of $.0001 | 26,030 | — | ||||||
| par value authorized, issued and outstanding as of June 30, 2023 | ||||||||
| Stockholders' equity: | ||||||||
| Common stock: 100,000,000 shares of | ||||||||
| 16,456,563 and 16,344,815 shares issued and outstanding as of | ||||||||
| June 30, 2023 and December 31, 2022, respectively | 2 | 2 | ||||||
| Additional paid-in capital | 331,201 | 334,571 | ||||||
| Retained earnings (accumulated deficit) | (231,882 | ) | (249,945 | ) | ||||
| Total stockholders' equity | 99,321 | 84,628 | ||||||
| Total liabilities, temporary equity and stockholders' equity | $ | 433,241 | $ | 485,358 | ||||
BATTALION OIL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Cash flows from operating activities: | ||||||||||||||||
| Net income (loss) | $ | (4,748 | ) | $ | 13,047 | $ | 18,063 | $ | (79,697 | ) | ||||||
| Adjustments to reconcile net income (loss) to net cash | ||||||||||||||||
| provided by (used in) operating activities: | ||||||||||||||||
| Depletion, depreciation and accretion | 14,713 | 12,601 | 30,861 | 22,821 | ||||||||||||
| Stock-based compensation, net | (772 | ) | 473 | (545 | ) | 857 | ||||||||||
| Unrealized loss (gain) on derivative contracts | (2,332 | ) | (12,837 | ) | (23,336 | ) | 78,201 | |||||||||
| Amortization/accretion of financing related costs | 2,045 | 908 | 3,843 | 1,807 | ||||||||||||
| Reorganization items | — | — | — | (744 | ) | |||||||||||
| Accrued settlements on derivative contracts | (374 | ) | 1,843 | (929 | ) | 14,652 | ||||||||||
| Change in fair value of embedded derivative liability | 358 | (563 | ) | (704 | ) | (2,595 | ) | |||||||||
| Other income (expense) | 42 | (96 | ) | 53 | (96 | ) | ||||||||||
| Cash flows from operations before changes in working capital | 8,932 | 15,376 | 27,306 | 35,206 | ||||||||||||
| Changes in working capital | 406 | 910 | (18,657 | ) | (6,873 | ) | ||||||||||
| Net cash provided by (used in) operating activities | 9,338 | 16,286 | 8,649 | 28,333 | ||||||||||||
| Cash flows from investing activities: | ||||||||||||||||
| Oil and natural gas capital expenditures | (4,022 | ) | (35,693 | ) | (32,633 | ) | (51,377 | ) | ||||||||
| Proceeds received from sale of oil and natural gas assets | — | — | 1,189 | — | ||||||||||||
| Other operating property and equipment capital expenditures | (15 | ) | (545 | ) | (284 | ) | (705 | ) | ||||||||
| Proceeds received from sale of other operating property and equipment | — | 96 | — | 96 | ||||||||||||
| Other | (6 | ) | — | (11 | ) | — | ||||||||||
| Net cash provided by (used in) investing activities | (4,043 | ) | (36,142 | ) | (31,739 | ) | (51,986 | ) | ||||||||
| Cash flows from financing activities: | ||||||||||||||||
| Proceeds from borrowings | — | 20,000 | — | 20,000 | ||||||||||||
| Repayments of borrowings | (10,026 | ) | — | (15,043 | ) | (85 | ) | |||||||||
| Payment of deferred debt financing costs | — | — | — | (379 | ) | |||||||||||
| Proceeds from issuance of preferred stock | — | — | 24,375 | — | ||||||||||||
| Other | — | (6 | ) | (454 | ) | (467 | ) | |||||||||
| Net cash provided by (used in) financing activities | (10,026 | ) | 19,994 | 8,878 | 19,069 | |||||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | (4,731 | ) | 138 | (14,212 | ) | (4,584 | ) | |||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 23,335 | 43,637 | 32,816 | 48,359 | ||||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 18,604 | $ | 43,775 | $ | 18,604 | $ | 43,775 | ||||||||
BATTALION OIL CORPORATION
SELECTED OPERATING DATA (Unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Production volumes: | ||||||||||||||||
| Crude oil (MBbls) | 636 | 674 | 1,366 | 1,344 | ||||||||||||
| Natural gas (MMcf) | 2,155 | 2,355 | 4,562 | 4,670 | ||||||||||||
| Natural gas liquids (MBbls) | 302 | 303 | 629 | 576 | ||||||||||||
| Total (MBoe) | 1,297 | 1,369 | 2,755 | 2,698 | ||||||||||||
| Average daily production (Boe/d) | 14,253 | 15,044 | 15,221 | 14,906 | ||||||||||||
| Average prices: | ||||||||||||||||
| Crude oil (per Bbl) | $ | 72.59 | $ | 109.71 | $ | 73.49 | $ | 101.54 | ||||||||
| Natural gas (per Mcf) | 0.96 | 6.27 | 1.09 | 5.06 | ||||||||||||
| Natural gas liquids (per Bbl) | 18.73 | 41.54 | 20.37 | 39.22 | ||||||||||||
| Total per Boe | 41.55 | 73.99 | 42.89 | 67.72 | ||||||||||||
| Cash effect of derivative contracts: | ||||||||||||||||
| Crude oil (per Bbl) | $ | (2.68 | ) | $ | (58.03 | ) | $ | (3.92 | ) | $ | (52.35 | ) | ||||
| Natural gas (per Mcf) | 1.78 | (2.39 | ) | 1.31 | (1.54 | ) | ||||||||||
| Natural gas liquids (per Bbl) | — | — | — | — | ||||||||||||
| Total per Boe | 1.65 | (32.69 | ) | 0.22 | (28.75 | ) | ||||||||||
| Average prices computed after cash effect of settlement of derivative contracts: | ||||||||||||||||
| Crude oil (per Bbl) | $ | 69.91 | $ | 51.68 | $ | 69.57 | $ | 49.19 | ||||||||
| Natural gas (per Mcf) | 2.74 | 3.88 | 2.40 | 3.52 | ||||||||||||
| Natural gas liquids (per Bbl) | 18.73 | 41.54 | 20.37 | 39.22 | ||||||||||||
| Total per Boe | 43.20 | 41.30 | 43.11 | 38.97 | ||||||||||||
| Average cost per Boe: | ||||||||||||||||
| Production: | ||||||||||||||||
| Lease operating | $ | 8.76 | $ | 8.70 | $ | 8.37 | $ | 8.69 | ||||||||
| Workover and other | 2.03 | 1.01 | 1.44 | 0.83 | ||||||||||||
| Taxes other than income | 2.45 | 3.92 | 2.31 | 3.83 | ||||||||||||
| Gathering and other | 12.97 | 11.59 | 12.10 | 11.54 | ||||||||||||
| General and administrative, as adjusted (1) | 4.01 | 2.90 | 3.61 | 3.09 | ||||||||||||
| Depletion | 11.07 | 9.07 | 10.95 | 8.33 | ||||||||||||
| (1) Represents general and administrative costs per Boe, adjusted for items noted in the reconciliation below: | ||||||||||||||||
| General and administrative: | ||||||||||||||||
| General and administrative, as reported | $ | 4.04 | $ | 3.36 | $ | 3.77 | $ | 3.55 | ||||||||
| Stock-based compensation: | ||||||||||||||||
| Non-cash | 0.60 | (0.35 | ) | 0.20 | (0.32 | ) | ||||||||||
| Non-recurring charges and other: | ||||||||||||||||
| Cash | (0.63 | ) | (0.11 | ) | (0.36 | ) | (0.14 | ) | ||||||||
| General and administrative, as adjusted(2) | $ | 4.01 | $ | 2.90 | $ | 3.61 | $ | 3.09 | ||||||||
| Gathering and other, as reported | $ | 12.97 | $ | 11.59 | $ | 12.10 | $ | 11.54 | ||||||||
| Rig termination and stacking charges and other | 0.26 | 0.07 | 0.12 | 0.04 | ||||||||||||
| Gathering and other, as adjusted(3) | $ | 13.23 | $ | 11.66 | $ | 12.22 | $ | 11.58 | ||||||||
| Total operating costs, as reported | $ | 30.25 | $ | 28.58 | $ | 27.99 | $ | 28.44 | ||||||||
| Total adjusting items | 0.23 | (0.39 | ) | (0.04 | ) | (0.42 | ) | |||||||||
| Total operating costs, as adjusted(3) | $ | 30.48 | $ | 28.19 | $ | 27.95 | $ | 28.02 | ||||||||
________________________
(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 | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| As Reported: | ||||||||||||||||
| Net income (loss) available to common stockholders - diluted (1) | $ | (5,745 | ) | $ | 13,047 | $ | 14,280 | $ | (79,697 | ) | ||||||
| Impact of Selected Items: | ||||||||||||||||
| Unrealized loss (gain) on derivatives contracts: | ||||||||||||||||
| Crude oil | $ | (10,440 | ) | $ | (11,939 | ) | $ | (30,130 | ) | $ | 70,962 | |||||
| Natural gas | 8,108 | (898 | ) | 6,794 | 7,239 | |||||||||||
| Total mark-to-market non-cash charge | (2,332 | ) | (12,837 | ) | (23,336 | ) | 78,201 | |||||||||
| Change in fair value of embedded derivative liability | 358 | (562 | ) | (704 | ) | (2,594 | ) | |||||||||
| Non-recurring charges | 811 | 149 | 994 | 366 | ||||||||||||
| Selected items, before income taxes | (1,163 | ) | (13,250 | ) | (23,046 | ) | 75,973 | |||||||||
| Income tax effect of selected items | — | — | — | — | ||||||||||||
| Selected items, net of tax | (1,163 | ) | (13,250 | ) | (23,046 | ) | 75,973 | |||||||||
| Net income (loss) available to common stockholders, as adjusted (2) | $ | (6,908 | ) | $ | (203 | ) | $ | (8,766 | ) | $ | (3,724 | ) | ||||
| Diluted net income (loss) per common share, as reported | $ | (0.35 | ) | $ | 0.79 | $ | 0.86 | $ | (4.88 | ) | ||||||
| Impact of selected items | (0.07 | ) | (0.80 | ) | (1.39 | ) | 4.65 | |||||||||
| Diluted net income (loss) per common share, excluding selected items (2)(3) | $ | (0.42 | ) | $ | (0.01 | ) | $ | (0.53 | ) | $ | (0.23 | ) | ||||
| Net cash provided by (used in) operating activities | $ | 9,338 | $ | 16,286 | $ | 8,649 | $ | 28,333 | ||||||||
| Changes in working capital | (406 | ) | (910 | ) | 18,657 | 6,873 | ||||||||||
| Cash flows from operations before changes in working capital | 8,932 | 15,376 | 27,306 | 35,206 | ||||||||||||
| Cash components of selected items | 851 | (1,694 | ) | 1,589 | (13,542 | ) | ||||||||||
| Income tax effect of selected items | — | — | — | — | ||||||||||||
| Cash flows from operations before changes in working capital, adjusted for selected items (1) | $ | 9,783 | $ | 13,682 | $ | 28,895 | $ | 21,664 | ||||||||
________________________
(1) Amount reflects net income (loss) 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 12, Earnings Per Share in our Form 10-Q for the quarter ended June 30, 2023.
(2) Net income (loss) earnings 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 six months ended June 30, 2023 were calculated based upon weighted average diluted shares of 16.5 million and 16.4 million shares, respectively, due to the net income (loss) available to common stockholders, excluding selected items. The impact of selected items for the three and six months ended June 30, 2022 were calculated based upon weighted average diluted shares of 16.3 million shares, respectively, due to the net income (loss) available to common stockholders, excluding selected items.
BATTALION OIL CORPORATION
ADJUSTED EBITDA RECONCILIATION (Unaudited)
(In thousands)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Net income (loss), as reported | $ | (4,748 | ) | $ | 13,047 | $ | 18,063 | $ | (79,697 | ) | ||||||
| Impact of adjusting items: | ||||||||||||||||
| Interest expense | 9,366 | 5,394 | 18,375 | 10,115 | ||||||||||||
| Depletion, depreciation and accretion | 14,713 | 12,601 | 30,861 | 22,821 | ||||||||||||
| Stock-based compensation | (772 | ) | 473 | (545 | ) | 857 | ||||||||||
| Interest income | (234 | ) | (1 | ) | (425 | ) | (1 | ) | ||||||||
| Unrealized loss (gain) on derivatives contracts | (2,332 | ) | (12,837 | ) | (23,336 | ) | 78,201 | |||||||||
| Deferred financing costs expensed | — | - | - | - | ||||||||||||
| Change in fair value of embedded derivative liability | 358 | (562 | ) | (704 | ) | (2,594 | ) | |||||||||
| Rig termination and stacking charges | — | — | — | — | ||||||||||||
| Non-recurring charges and other | 477 | 53 | 629 | 270 | ||||||||||||
| Adjusted EBITDA(1) | $ | 16,828 | $ | 18,168 | $ | 42,918 | $ | 29,972 | ||||||||
________________________
(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.
BATTALION OIL CORPORATION
ADJUSTED EBITDA RECONCILIATION (Unaudited)
(In thousands)
| Three Months | Three Months | Three Months | Three Months | ||||||||||||||
| Ended | Ended | Ended | Ended | ||||||||||||||
| June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | ||||||||||||||
| Net income (loss), as reported | $ | (4,748 | ) | $ | 22,811 | (7,652 | ) | 105,888 | |||||||||
| Impact of adjusting items: | |||||||||||||||||
| Interest expense | 9,366 | 9,009 | 9,378 | 6,232 | |||||||||||||
| Depletion, depreciation and accretion | 14,713 | 16,148 | 15,479 | 13,615 | |||||||||||||
| Stock-based compensation | (772 | ) | 227 | 670 | 683 | ||||||||||||
| Interest income | (234 | ) | (191 | ) | (227 | ) | (141 | ) | |||||||||
| Unrealized loss (gain) on derivatives contracts | (2,332 | ) | (21,004 | ) | 3,655 | (102,112 | ) | ||||||||||
| Change in fair value of embedded derivative liability | 358 | (1,062 | ) | 1,224 | (449 | ) | |||||||||||
| Non-recurring charges (credits) and other | 477 | 152 | 194 | 597 | |||||||||||||
| Adjusted EBITDA(1) | $ | 16,828 | $ | 26,090 | $ | 22,721 | $ | 24,313 | |||||||||
| Adjusted LTM EBITDA(1) | $ | 89,952 | |||||||||||||||
________________________
(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.
BATTALION OIL CORPORATION
ADJUSTED EBITDA RECONCILIATION (Unaudited)
(In thousands)
| Three Months | Three Months | Three Months | Three Months | ||||||||||||||
| Ended | Ended | Ended | Ended | ||||||||||||||
| June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | ||||||||||||||
| Net income (loss), as reported | $ | 13,047 | (92,744 | ) | 25,935 | 13,052 | |||||||||||
| Impact of adjusting items: | |||||||||||||||||
| Interest expense | 5,394 | 4,721 | 3,215 | 1,904 | |||||||||||||
| Depletion, depreciation and accretion | 12,601 | 10,220 | 12,679 | 10,885 | |||||||||||||
| Stock-based compensation | 473 | 384 | 450 | 481 | |||||||||||||
| Interest income | (1 | ) | — | (1 | ) | (3 | ) | ||||||||||
| Loss (gain) on extinguishment of debt | — | — | 122 | (2,068 | ) | ||||||||||||
| Unrealized loss (gain) on derivatives contracts | (12,837 | ) | 91,038 | (21,332 | ) | (1,816 | ) | ||||||||||
| Change in fair value of embedded derivative liability | (562 | ) | (2,032 | ) | — | — | |||||||||||
| Non-recurring charges (credits) and other | 53 | 217 | (718 | ) | 559 | ||||||||||||
| Adjusted EBITDA(1) | $ | 18,168 | $ | 11,804 | $ | 20,350 | $ | 22,994 | |||||||||
| Adjusted LTM EBITDA(1) | $ | 73,316 | |||||||||||||||
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(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.
