Battalion Oil Corporation Announces Third Quarter 2020 Results
Battalion Oil Corporation (NYSEA: BATL) reported its third quarter 2020 results, with average daily net production at 17,076 Boe per day, 56% from oil. Total revenue reached $39.8 million, predominantly from crude oil. Despite a reported net loss of $153.1 million, the Company adjusted G&A costs significantly to $2.09 per Boe, down from $4.92 in Q3 2019. Battalion has oil hedged for 2021 at an average price of $45.51 per barrel, improving price stability. The conference call is scheduled for November 10, 2020, to discuss these results further.
- Average daily net production of 17,076 Boe per day, 56% from oil.
- Total revenue of $39.8 million for Q3 2020, with 84% from crude oil.
- Realized gains on derivative settlements were $5.3 million.
- Adjusted G&A costs decreased to $2.09 per Boe from $4.92 in Q3 2019.
- Lease operating expenses reduced to $7.00 per Boe from $8.91 in Q3 2019.
- Adjusted LTM EBITDA improved to $93.9 million from $61.6 million in Q3 2019.
- Net loss of $153.1 million, including a $128.3 million impairment.
- Net loss per share of $9.45.
- Significant decline in SEC trailing twelve month price deck affecting reserve calculations.
HOUSTON, Nov. 09, 2020 (GLOBE NEWSWIRE) -- Battalion Oil Corporation (NYSEA: BATL, “Battalion” or the “Company”) today announced its third quarter 2020 results.
Third Quarter Results
Average daily net production for the quarter ended September 30, 2020 was 17,076 Boe per day, of which oil represented
Richard Little, the Company’s CEO, commented, “It’s hard to imagine that Q3 is a reflection of a return to ‘normal,’ however as prices recovered from lows in April, I’m pleased Battalion has had a chance to get back to optimizing production of hydrocarbons. With production back online, I’m proud of our team for demonstrating that we can continue to lower costs in this environment and prepare for whatever comes next. We’ve also used this opportunity to take proactive measures to improve our product pricing, which we are now benefiting from.”
Adjusted G&A was
The Company reported a net loss to common stockholders for the third quarter of 2020 of
As of November 6, 2020, Battalion had 8,500 Bopd of oil hedged for the remainder of 2020 at an average price of
Conference Call Information
Battalion Oil Corporation has scheduled a conference call for Tuesday, November 10, 2020, at 11:00 a.m. EDT (10:00 a.m. CDT). To participate in the conference call, dial 720-452-9102 or 866-248-8441 (toll free) a few minutes before the call begins and reference Battalion Oil Corporation confirmation code 3866208. The conference call recording will also be posted to Battalion’s website: www.battalionoil.com.
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, 2019 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
John-Davis Rutkauskas
Director, Corporate Finance & IR
(832) 538-0551
BATTALION OIL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share amounts)
| Successor | Predecessor | Successor | Predecessor | |||||||||||||||
| Three Months | Three Months | Nine Months | Nine Months | |||||||||||||||
| Ended | Ended | Ended | Ended | |||||||||||||||
| September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | |||||||||||||||
| Operating revenues: | ||||||||||||||||||
| Oil, natural gas and natural gas liquids sales: | ||||||||||||||||||
| Oil | $ | 33,638 | $ | 46,275 | $ | 91,313 | $ | 145,024 | ||||||||||
| Natural gas | 1,912 | 301 | 3,102 | 107 | ||||||||||||||
| Natural gas liquids | 3,896 | 3,987 | 10,086 | 13,229 | ||||||||||||||
| Total oil, natural gas and natural gas liquids sales | 39,446 | 50,563 | 104,501 | 158,360 | ||||||||||||||
| Other | 384 | 246 | 1,222 | 743 | ||||||||||||||
| Total operating revenues | 39,830 | 50,809 | 105,723 | 159,103 | ||||||||||||||
| Operating expenses: | ||||||||||||||||||
| Production: | ||||||||||||||||||
| Lease operating | 10,091 | 11,958 | 32,880 | 39,617 | ||||||||||||||
| Workover and other | 905 | 1,566 | 2,767 | 5,580 | ||||||||||||||
| Taxes other than income | 2,722 | 3,012 | 7,130 | 9,213 | ||||||||||||||
| Gathering and other | 13,500 | 10,147 | 39,275 | 36,057 | ||||||||||||||
| Restructuring | — | 3,223 | 2,580 | 15,148 | ||||||||||||||
| General and administrative | 4,111 | 19,423 | 13,237 | 36,550 | ||||||||||||||
| Depletion, depreciation and accretion | 15,755 | 20,512 | 48,167 | 90,912 | ||||||||||||||
| Full cost ceiling impairment | 128,336 | 45,568 | 188,443 | 985,190 | ||||||||||||||
| (Gain) loss on sale of Water Assets | — | (164 | ) | — | 3,618 | |||||||||||||
| Total operating expenses | 175,420 | 115,245 | 334,479 | 1,221,885 | ||||||||||||||
| Income (loss) from operations | (135,590 | ) | (64,436 | ) | (228,756 | ) | (1,062,782 | ) | ||||||||||
| Other income (expenses): | ||||||||||||||||||
| Net gain (loss) on derivative contracts | (15,843 | ) | 13,457 | 67,695 | (34,332 | ) | ||||||||||||
| Interest expense and other | ` | (1,692 | ) | (10,547 | ) | (4,889 | ) | (37,606 | ) | |||||||||
| Reorganization items, net | — | (1,758 | ) | — | (1,758 | ) | ||||||||||||
| Total other income (expenses) | (17,535 | ) | 1,152 | 62,806 | (73,696 | ) | ||||||||||||
| Income (loss) before income taxes | (153,125 | ) | (63,284 | ) | (165,950 | ) | (1,136,478 | ) | ||||||||||
| Income tax benefit (provision) | — | — | — | 95,791 | ||||||||||||||
| Net income (loss) | $ | (153,125 | ) | $ | (63,284 | ) | $ | (165,950 | ) | $ | (1,040,687 | ) | ||||||
| Net income (loss) per share of common stock: | ||||||||||||||||||
| Basic | $ | (9.45 | ) | $ | (0.40 | ) | $ | (10.24 | ) | $ | (6.55 | ) | ||||||
| Diluted | $ | (9.45 | ) | $ | (0.40 | ) | $ | (10.24 | ) | $ | (6.55 | ) | ||||||
| Weighted average common shares outstanding: | ||||||||||||||||||
| Basic | 16,204 | 159,143 | 16,204 | 158,916 | ||||||||||||||
| Diluted | 16,204 | 159,143 | 16,204 | 158,916 | ||||||||||||||
BATTALION OIL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands, except share and per share amounts)
| Successor | ||||||||
| September 30, 2020 | December 31, 2019 | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,827 | $ | 5,701 | ||||
| Accounts receivable, net | 26,053 | 48,504 | ||||||
| Assets from derivative contracts | 18,996 | 4,995 | ||||||
| Restricted cash | — | 4,574 | ||||||
| Prepaids and other | 2,326 | 7,379 | ||||||
| Total current assets | 49,202 | 71,153 | ||||||
| Oil and natural gas properties (full cost method): | ||||||||
| Evaluated | 520,453 | 420,609 | ||||||
| Unevaluated | 80,540 | 105,009 | ||||||
| Gross oil and natural gas properties | 600,993 | 525,618 | ||||||
| Less - accumulated depletion | (254,849 | ) | (19,474 | ) | ||||
| Net oil and natural gas properties | 346,144 | 506,144 | ||||||
| Other operating property and equipment: | ||||||||
| Other operating property and equipment | 3,490 | 3,655 | ||||||
| Less - accumulated depreciation | (1,020 | ) | (378 | ) | ||||
| Net other operating property and equipment | 2,470 | 3,277 | ||||||
| Other noncurrent assets: | ||||||||
| Assets from derivative contracts | 9,675 | 224 | ||||||
| Operating lease right of use assets | 424 | 3,165 | ||||||
| Other assets | 5,178 | 703 | ||||||
| Total assets | $ | 413,093 | $ | 584,666 | ||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 56,130 | $ | 97,333 | ||||
| Liabilities from derivative contracts | 9,055 | 8,069 | ||||||
| Current portion of long-term debt | 1,401 | — | ||||||
| Operating lease liabilities | 657 | 923 | ||||||
| Asset retirement obligations | — | 109 | ||||||
| Total current liabilities | 67,243 | 106,434 | ||||||
| Long-term debt, net | 178,808 | 144,000 | ||||||
| Other noncurrent liabilities: | ||||||||
| Liabilities from derivative contracts | 3,292 | 4,854 | ||||||
| Asset retirement obligations | 10,960 | 10,481 | ||||||
| Operating lease liabilities | — | 2,247 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity: | ||||||||
| Common stock: 100,000,000 shares of | 2 | 2 | ||||||
| Additional paid-in capital | 329,198 | 327,108 | ||||||
| Retained earnings (accumulated deficit) | (176,410 | ) | (10,460 | ) | ||||
| Total stockholders' equity | 152,790 | 316,650 | ||||||
| Total liabilities and stockholders' equity | $ | 413,093 | $ | 584,666 | ||||
BATTALION OIL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
| Successor | Predecessor | Successor | Predecessor | |||||||||||||||
| Three Months | Three Months | Nine Months | Nine Months | |||||||||||||||
| Ended | Ended | Ended | Ended | |||||||||||||||
| September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | |||||||||||||||
| Cash flows from operating activities: | ||||||||||||||||||
| Net income (loss) | $ | (153,125 | ) | $ | (63,284 | ) | $ | (165,950 | ) | $ | (1,040,687 | ) | ||||||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||||||||||
| Depletion, depreciation and accretion | 15,755 | 20,512 | 48,167 | 90,912 | ||||||||||||||
| Full cost ceiling impairment | 128,336 | 45,568 | 188,443 | 985,190 | ||||||||||||||
| (Gain) loss on sale of Water Assets | — | (164 | ) | — | 3,618 | |||||||||||||
| Deferred income tax provision (benefit) | — | — | — | (95,791 | ) | |||||||||||||
| Stock-based compensation, net | 620 | (2,278 | ) | 1,793 | (8,035 | ) | ||||||||||||
| Unrealized loss (gain) on derivative contracts | 21,128 | (11,571 | ) | (24,029 | ) | 45,834 | ||||||||||||
| Amortization and write-off of deferred loan costs | — | 882 | — | 1,859 | ||||||||||||||
| Amortization of discount and premium | — | 23 | — | 134 | ||||||||||||||
| Reorganization items, net | (717 | ) | (283 | ) | (6,440 | ) | (283 | ) | ||||||||||
| Accrued settlements on derivative contracts | 125 | 574 | 474 | 168 | ||||||||||||||
| Other income (expense) | (184 | ) | (4 | ) | 280 | 367 | ||||||||||||
| Cash flows from operations before changes in working capital | 11,938 | (10,025 | ) | 42,738 | (16,714 | ) | ||||||||||||
| Changes in working capital | (7,164 | ) | 3,690 | 5,140 | (16,519 | ) | ||||||||||||
| Net cash provided by (used in) operating activities | 4,774 | (6,335 | ) | 47,878 | (33,233 | ) | ||||||||||||
| Cash flows from investing activities: | ||||||||||||||||||
| Oil and natural gas capital expenditures | (5,319 | ) | (28,075 | ) | (96,483 | ) | (167,235 | ) | ||||||||||
| Proceeds received from sale of oil and natural gas properties | 3,000 | — | 3,500 | 1,247 | ||||||||||||||
| Acquisition of oil and natural gas properties | — | — | — | (2,809 | ) | |||||||||||||
| Other operating property and equipment capital expenditures | (28 | ) | (21,037 | ) | (28 | ) | (85,613 | ) | ||||||||||
| Funds held in escrow and other | (1 | ) | (2 | ) | 508 | (7 | ) | |||||||||||
| Net cash provided by (used in) investing activities | (2,348 | ) | (49,114 | ) | (92,503 | ) | (254,417 | ) | ||||||||||
| Cash flows from financing activities: | ||||||||||||||||||
| Proceeds from borrowings | 38,000 | 71,234 | 119,209 | 315,234 | ||||||||||||||
| Repayments of borrowings | (39,000 | ) | (1,000 | ) | (83,000 | ) | (57,000 | ) | ||||||||||
| Equity issuance costs and other | — | (14 | ) | (32 | ) | (441 | ) | |||||||||||
| Net cash provided by (used in) financing activities | (1,000 | ) | 70,220 | 36,177 | 257,793 | |||||||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | 1,426 | 14,771 | (8,448 | ) | (29,857 | ) | ||||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 401 | 2,238 | 10,275 | 46,866 | ||||||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 1,827 | $ | 17,009 | $ | 1,827 | $ | 17,009 | ||||||||||
BATTALION OIL CORPORATION
SELECTED OPERATING DATA
(Unaudited)
| Successor | Predecessor | Successor | Predecessor | |||||||||||||||
| Three Months | Three Months | Nine Months | Nine Months | |||||||||||||||
| Ended | Ended | Ended | Ended | |||||||||||||||
| September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | |||||||||||||||
| Production volumes: | ||||||||||||||||||
| Crude oil (MBbls) | 877 | 863 | 2,589 | 2,723 | ||||||||||||||
| Natural gas (MMcf) | 2,266 | 1,924 | 6,437 | 6,381 | ||||||||||||||
| Natural gas liquids (MBbls) | 316 | 333 | 917 | 911 | ||||||||||||||
| Total (MBoe) | 1,571 | 1,517 | 4,579 | 4,698 | ||||||||||||||
| Average daily production (Boe/d) | 17,076 | 16,489 | 16,712 | 17,209 | ||||||||||||||
| Average prices: | ||||||||||||||||||
| Crude oil (per Bbl) | $ | 38.36 | $ | 53.62 | $ | 35.27 | $ | 53.26 | ||||||||||
| Natural gas (per Mcf) | 0.84 | 0.16 | 0.48 | 0.02 | ||||||||||||||
| Natural gas liquids (per Bbl) | 12.33 | 11.97 | 11.00 | 14.52 | ||||||||||||||
| Total per Boe | 25.11 | 33.33 | 22.82 | 33.71 | ||||||||||||||
| Cash effect of derivative contracts: |
{
"@context": "https://schema.org",
"@type": "FAQPage",
"name": "Battalion Oil Corporation Announces Third Quarter 2020 Results FAQs",
"mainEntity": [
{
"@type": "Question",
"name": "What were Battalion Oil Corporation's Q3 2020 production numbers?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Battalion Oil's average daily net production for Q3 2020 was 17,076 Boe per day, with oil representing 56%."
}
},
{
"@type": "Question",
"name": "What was the total revenue for Battalion Oil in Q3 2020?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Total revenue for Battalion Oil in Q3 2020 reached $39.8 million, with 84% derived from crude oil."
}
},
{
"@type": "Question",
"name": "What was the net loss reported by Battalion Oil Corporation for Q3 2020?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Battalion Oil reported a net loss of $153.1 million for Q3 2020."
}
},
{
"@type": "Question",
"name": "How did Battalion Oil Corporation perform in terms of adjusted EBITDA in Q3 2020?",
"acceptedAnswer": {
"@type": "Answer",
"text": "The adjusted LTM EBITDA for Battalion Oil in Q3 2020 was $93.9 million."
}
},
{
"@type": "Question",
"name": "What oil hedging positions does Battalion Oil have for 2021?",
"acceptedAnswer": {
"@type": "Answer",
"text": "For 2021, Battalion Oil has 7,000 Bopd of oil hedged at an average price of $45.51 per barrel."
}
}
]
}
FAQ
What were Battalion Oil Corporation's Q3 2020 production numbers?
Battalion Oil's average daily net production for Q3 2020 was 17,076 Boe per day, with oil representing 56%.
What was the total revenue for Battalion Oil in Q3 2020?
Total revenue for Battalion Oil in Q3 2020 reached $39.8 million, with 84% derived from crude oil.
What was the net loss reported by Battalion Oil Corporation for Q3 2020?
Battalion Oil reported a net loss of $153.1 million for Q3 2020.
How did Battalion Oil Corporation perform in terms of adjusted EBITDA in Q3 2020?
The adjusted LTM EBITDA for Battalion Oil in Q3 2020 was $93.9 million.
What oil hedging positions does Battalion Oil have for 2021?
For 2021, Battalion Oil has 7,000 Bopd of oil hedged at an average price of $45.51 per barrel.
Battalion Oil Corporation
NYSE:BATLBATL RankingsBATL Latest NewsBATL Stock Data
55.75M
16.34M
0.73%
81.86%
1.56%
Oil & Gas E&P
Crude Petroleum & Natural Gas
United States of America
HOUSTON
| |||||||||||||||||