Battalion Oil Corporation Announces First Quarter 2026 Financial and Operating Results
Rhea-AI Summary
Battalion Oil (NYSE American: BATL) reported Q1 2026 results, highlighting stronger balance sheet metrics and lower unit costs alongside a net loss.
Positive equity reached $157.1 million, net debt fell to $108.3 million, production increased to 12,578 Boe/d, while revenue declined to $39.2 million and net loss was $64.8 million.
Positive
- Positive equity of $157.1 million, supporting NYSE listing compliance efforts
- Net debt reduced to $108.3 million from $180.2 million in Q4 2025
- West Quito asset sale generated $60.1 million proceeds; $45.6 million used to repay term loan
- Private placement raised $15.0 million at $5.50 per common share
- Q1 2026 production increased to 12,578 Boe/d vs 11,900 Boe/d in Q1 2025
- Lease operating and workover expense lowered to $9.82/Boe from $11.01/Boe year over year
- Adjusted G&A excluding non-recurring items at $3.02/Boe, similar to $3.01/Boe in Q1 2025
Negative
- Total operating revenue decreased to $39.2 million from $47.5 million in Q1 2025
- Reported net loss to common stockholders of $64.8 million or $3.72 per share in Q1 2026
- Adjusted diluted net loss of $16.2 million or $0.93 per share
- Adjusted EBITDA declined to $10.0 million from $15.1 million in Q1 2025
- Average realized price per Boe (ex-hedges) decreased by $9.73 year over year
- Realized hedge losses of approximately $1.0 million in Q1 2026
- Equity issuances and preferred conversion added new common shares outstanding
News Market Reaction – BATL
In the May 14 session, BATL declined 16.67%, reflecting a significant negative market reaction. Argus tracked a trough of -23.1% from its starting point during tracking. Our momentum scanner triggered 40 alerts that day, indicating elevated trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 23 | Q4 2025 earnings | Negative | -17.5% | Reported Q4 loss, West Quito sale, debt paydown and private placement. |
| Nov 13 | Q3 2025 earnings | Negative | -0.9% | Q3 loss, AGI outage shutting in production, covenant relief obtained. |
| Aug 14 | Q2 2025 earnings | Negative | -3.5% | Lower revenue year over year and net loss with AGI facility issues. |
| May 14 | Q1 2025 earnings | Negative | -3.0% | Sales volumes and revenue down versus prior year with net loss reported. |
| Mar 31 | Q4 2024 earnings | Neutral | +3.1% | Q4 loss but strong production, reserves, and under‑budget drilling results. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases have typically featured net losses and have often been followed by negative single‑day moves.
Over the past five earnings cycles, Battalion has consistently reported net losses alongside solid production levels. Prior quarters such as Q1 2025 and Q3 2025 showed revenues in the low‑ to mid‑$40 million range and adjusted EBITDA between about $15–19 million, but shares often traded down afterward. The latest Q4 2025 earnings on Mar 23, 2026 combined operational milestones, asset sales, and debt reduction with a $12.5 million net loss and saw a -17.51% reaction. Today’s Q1 2026 update continues this pattern of operational progress alongside sizable accounting losses.
Key Terms
net debt financial
private placement financial
preferred stock financial
Boe/d technical
lease operating financial
derivative financial
adjusted EBITDA financial
forward-looking statements regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
HOUSTON, May 13, 2026 (GLOBE NEWSWIRE) -- Battalion Oil Corporation (NYSE American: BATL, “Battalion” or the “Company”) today announced financial and operating results for the first quarter of 2026.
Key Highlights
- The Company ended the quarter with positive equity of
$157.1 million . This provides further basis for the Company to attain compliance with NYSE listing requirements - Reduced net debt (gross debt less cash and reinvestment proceeds) to
$108.3 million vs$180.2 million in Q4 2025 - Divested West Quito Assets for net proceeds of
$60.1 million , utilizing$45.6 million to repay amounts outstanding under our Term Loan - Executed a private placement to an institutional investor for purchase of common stock at
$5.50 per share for total gross proceeds of$15.0 million - Converted 7,803 shares of preferred stock to 1.8 million common shares at a conversion price of
$6.21 per share - Acquired 7,090 net acres and production directly adjacent to our Monument Draw asset for 485,000 shares of common stock
- Generated first quarter 2026 sales volumes of 12,578 barrels of oil equivalent per day (“Boe/d”) (
47% oil), an increase from 11,207 Boe/d in Q4 2025 - Lease operating and workover expense per BOE reduced by ~
24% vs Q4 2025 - Continued strategic negotiations related to refinancing, a carried drilling venture, and infrastructure to place Monument Draw oil production on a pipeline rather than trucking to sales
- “Cube” style development planned in additional proven benches to greatly expand inventory
Management Comments
The Company continues to make significant progress both operationally and strategically. Production volumes continue to benefit from the termination of the gas treating agreement and subsequent entry into a long-term treating agreement with a proven midstream partner. The sale of our West Quito Assets resulted in a substantial reduction of debt. The production impact of selling the assets was more than offset by increased flow in Monument Draw. Ongoing strategic negotiations should further improve the balance sheet, reduce operating costs and create outsized returns for our 2026 development plans.
“We continue to focus on improving our balance sheet and maximizing returns from our holdings in Monument Draw. Q1 2026 was an inflection point for the Company. The sale of our West Quito Assets transformed our leverage profile. Changing our gas midstream partner has been a gamechanger for the operational reliability of the Company. The team continued to improve field operations, lowering unit costs in all categories. Moving forward we are working to execute definitive documents for a refinancing, a carried drilling venture, and oil on pipe infrastructure. A refinancing will lower our cost to service debt as well as give additional flexibility for development of the asset base. The carried drilling deal will move the Company toward multiple bench “cube” style development that has been very successfully employed by offset operators. We expect to execute definitive documents and commence drilling in late Q2 2026. Transporting our crude to sales point via pipeline rather than trucking will both save money and reduce environmental exposure. This project is expected to come online in early Q3 2026 and save the Company up to
Results of Operations
Average daily net production and total operating revenue during the first quarter of 2026 were 12,578 Boe/d (
Lease operating and workover expense was
For the first quarter of 2026, the Company reported a net loss available to common stockholders of
Liquidity and Balance Sheet
As of March 31, 2026, the Company had
For additional details on liquidity, financial position, and recent developments, please refer to Management’s Discussion and Analysis included in Battalion’s Quarterly Report on Form 10-Q for the quarter ended March 31, 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, 2025, 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, | |||||||
| 2026 | 2025 | ||||||
| Operating revenues: | |||||||
| Oil, natural gas and natural gas liquids sales: | |||||||
| Oil | $ | 36,282 | $ | 39,700 | |||
| Natural gas | (1,493 | ) | 2,823 | ||||
| Natural gas liquids | 4,273 | 4,862 | |||||
| Total oil, natural gas and natural gas liquids sales | 39,062 | 47,385 | |||||
| Other | 112 | 90 | |||||
| Total operating revenues | 39,174 | 47,475 | |||||
| Operating expenses: | |||||||
| Production: | |||||||
| Lease operating | 10,094 | 10,358 | |||||
| Workover and other | 1,018 | 1,433 | |||||
| Taxes other than income | 2,324 | 2,800 | |||||
| Gathering and other | 11,250 | 12,000 | |||||
| General and administrative | 4,260 | 4,413 | |||||
| Depletion, depreciation and accretion | 12,362 | 13,080 | |||||
| Total operating expenses | 41,308 | 44,084 | |||||
| (Loss) income from operations | (2,134 | ) | 3,391 | ||||
| Other (expenses) income: | |||||||
| Net (loss) gain on derivative contracts | (47,964 | ) | 9,302 | ||||
| Interest expense and other | (5,517 | ) | (6,670 | ) | |||
| Loss on extinguishment of debt | (862 | ) | — | ||||
| Total other (expenses) income | (54,343 | ) | 2,632 | ||||
| (Loss) income before income taxes | (56,477 | ) | 6,023 | ||||
| Income tax benefit (provision) | — | — | |||||
| Net (loss) income | $ | (56,477 | ) | $ | 6,023 | ||
| Preferred dividends | (8,331 | ) | (11,820 | ) | |||
| Net (loss) income available to common stockholders | $ | (64,808 | ) | $ | (5,797 | ) | |
| Net (loss) income per share of common stock available to common stockholders: | |||||||
| Basic | $ | (3.72 | ) | $ | (0.35 | ) | |
| Diluted | $ | (3.72 | ) | $ | (0.35 | ) | |
| Weighted average common shares outstanding: | |||||||
| Basic | 17,415 | 16,457 | |||||
| Diluted | 17,415 | 16,457 | |||||
| BATTALION OIL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share and per share amounts) | |||||||
| March 31, 2026 | December 31, 2025 | ||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 46,373 | $ | 27,965 | |||
| Accounts receivable, net | 19,597 | 12,071 | |||||
| Assets from derivative contracts | 7,434 | 16,145 | |||||
| Restricted cash | 7,958 | 91 | |||||
| Prepaids and other | 742 | 892 | |||||
| Total current assets | 82,104 | 57,164 | |||||
| Oil and natural gas properties (full cost method): | |||||||
| Evaluated | 827,996 | 890,050 | |||||
| Unevaluated | 54,334 | 48,025 | |||||
| Gross oil and natural gas properties | 882,330 | 938,075 | |||||
| Less: accumulated depletion | (560,069 | ) | (547,982 | ) | |||
| Net oil and natural gas properties | 322,261 | 390,093 | |||||
| Other operating property and equipment: | |||||||
| Other operating property and equipment | 4,678 | 4,678 | |||||
| Less: accumulated depreciation | (2,831 | ) | (2,807 | ) | |||
| Net other operating property and equipment | 1,847 | 1,871 | |||||
| Other noncurrent assets: | |||||||
| Assets from derivative contracts | 2,008 | 7,350 | |||||
| Operating lease right of use assets | 660 | 840 | |||||
| Other assets | 3,488 | 3,360 | |||||
| Total assets | $ | 412,368 | $ | 460,678 | |||
| Current liabilities: | |||||||
| Accounts payable and accrued liabilities | $ | 43,453 | $ | 39,734 | |||
| Liabilities from derivative contracts | 24,612 | 633 | |||||
| Current portion of long-term debt | 22,500 | 22,510 | |||||
| Operating lease liabilities | 638 | 764 | |||||
| Total current liabilities | 91,203 | 63,641 | |||||
| Long-term debt, net | 135,882 | 180,955 | |||||
| Other noncurrent liabilities: | |||||||
| Liabilities from derivative contracts | 10,597 | 1,692 | |||||
| Asset retirement obligations | 17,514 | 20,837 | |||||
| Operating lease liabilities | 53 | 104 | |||||
| Commitments and contingencies | |||||||
| Temporary equity: | |||||||
| Redeemable convertible preferred stock: 138,000 shares of | — | 226,241 | |||||
| Stockholders' equity (deficit): | |||||||
| Redeemable convertible preferred stock: 130,197 shares of | 221,185 | — | |||||
| Common stock: 100,000,000 shares of | 2 | 2 | |||||
| Additional paid-in capital | 265,405 | 240,202 | |||||
| Accumulated deficit | (329,473 | ) | (272,996 | ) | |||
| Total stockholders' equity (deficit) | 157,119 | (32,792 | ) | ||||
| Total liabilities, temporary equity and stockholders' equity | $ | 412,368 | $ | 460,678 | |||
| BATTALION OIL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) | |||||||
| Three Months Ended | |||||||
| March 31, | |||||||
| 2026 | 2025 | ||||||
| Cash flows from operating activities: | |||||||
| Net (loss) income | $ | (56,477 | ) | $ | 6,023 | ||
| Adjustments to reconcile net (loss) income to net cash | |||||||
| provided by operating activities: | |||||||
| Depletion, depreciation and accretion | 12,362 | 13,080 | |||||
| Stock-based compensation, net | — | (109 | ) | ||||
| Unrealized gain on derivative contracts | 46,937 | (11,828 | ) | ||||
| Amortization/accretion of financing related costs | 348 | 395 | |||||
| Loss on extinguishment of debt | 862 | — | |||||
| Accrued settlements on derivative contracts | 2,425 | (560 | ) | ||||
| Other | 2 | 53 | |||||
| Cash flows from operations before changes in working capital | 6,459 | 7,054 | |||||
| Changes in working capital | (4,354 | ) | 5,677 | ||||
| Net cash provided by operating activities | 2,105 | 12,731 | |||||
| Cash flows from investing activities: | |||||||
| Oil and natural gas capital expenditures | (3,613 | ) | (19,800 | ) | |||
| Proceeds received from sale of oil and natural gas assets | 60,055 | — | |||||
| Other operating property and equipment capital expenditures | — | (6 | ) | ||||
| Other | (5 | ) | (306 | ) | |||
| Net cash provided by (used in) investing activities | 56,437 | (20,112 | ) | ||||
| Cash flows from financing activities: | |||||||
| Proceeds from borrowings | — | 63,000 | |||||
| Repayments of borrowings | (45,635 | ) | (26 | ) | |||
| Debt issuance costs | (657 | ) | (1,737 | ) | |||
| Proceeds from issuance of common stock | 14,025 | — | |||||
| Net cash (used in) provided by financing activities | (32,267 | ) | 61,237 | ||||
| Net increase in cash, cash equivalents and restricted cash | 26,275 | 53,856 | |||||
| Cash, cash equivalents and restricted cash at beginning of period | 28,056 | 19,803 | |||||
| Cash, cash equivalents and restricted cash at end of period | $ | 54,331 | $ | 73,659 | |||
| BATTALION OIL CORPORATION SELECTED OPERATING DATA (Unaudited) | |||||||
| Three Months Ended | |||||||
| March 31, | |||||||
| 2026 | 2025 | ||||||
| Production volumes: | |||||||
| Crude oil (MBbls) | 527 | 569 | |||||
| Natural gas (MMcf) | 2,054 | 1,799 | |||||
| Natural gas liquids (MBbls) | 263 | 202 | |||||
| Total (MBoe) | 1,132 | 1,071 | |||||
| Average daily production (Boe/d) | 12,578 | 11,900 | |||||
| Average prices: | |||||||
| Crude oil (per Bbl) | $ | 68.85 | $ | 69.77 | |||
| Natural gas (per Mcf) | (0.73 | ) | 1.57 | ||||
| Natural gas liquids (per Bbl) | 16.25 | 24.07 | |||||
| Total per Boe | 34.51 | 44.24 | |||||
| Cash effect of derivative contracts: | |||||||
| Crude oil (per Bbl) | $ | (7.10 | ) | $ | (7.00 | ) | |
| Natural gas (per Mcf) | 1.32 | 0.81 | |||||
| Natural gas liquids (per Bbl) | — | — | |||||
| Total per Boe | (0.91 | ) | (2.36 | ) | |||
| Average prices computed after cash effect of settlement of derivative contracts: | |||||||
| Crude oil (per Bbl) | $ | 61.75 | $ | 62.77 | |||
| Natural gas (per Mcf) | 0.59 | 2.38 | |||||
| Natural gas liquids (per Bbl) | 16.25 | 24.07 | |||||
| Total per Boe | 33.60 | 41.88 | |||||
| Average cost per Boe: | |||||||
| Production: | |||||||
| Lease operating | $ | 8.92 | $ | 9.67 | |||
| Workover and other | 0.90 | 1.34 | |||||
| Taxes other than income | 2.05 | 2.61 | |||||
| Gathering and other | 9.94 | 11.20 | |||||
| General and administrative, as adjusted (1) | 3.02 | 3.01 | |||||
| Depletion | 10.68 | 11.83 | |||||
| (1) Represents general and administrative costs per Boe, adjusted for items noted in the reconciliation below: | |||||||
| General and administrative: | |||||||
| General and administrative, as reported | $ | 3.76 | $ | 4.12 | |||
| Stock-based compensation: | |||||||
| Non-cash | - | (0.04 | ) | ||||
| Non-recurring charges and other: | |||||||
| Cash | (0.74 | ) | (1.07 | ) | |||
| General and administrative, as adjusted(2) | $ | 3.02 | $ | 3.01 | |||
| Total operating costs, as reported | $ | 25.57 | $ | 28.94 | |||
| Total adjusting items | (0.74 | ) | (1.11 | ) | |||
| Total operating costs, as adjusted(3) | $ | 24.83 | $ | 27.83 | |||
| _________________________________ | |
| (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, | |||||||
| 2026 | 2025 | ||||||
| As Reported: | |||||||
| Net (loss) income available to common stockholders - diluted (1) | $ | (64,808 | ) | $ | (5,797 | ) | |
| Impact of Selected Items: | |||||||
| Unrealized loss (gain) on derivatives contracts: | |||||||
| Crude oil | $ | 49,808 | $ | (5,544 | ) | ||
| Natural gas | (2,871 | ) | (6,284 | ) | |||
| Total mark-to-market non-cash charge | 46,937 | (11,828 | ) | ||||
| Change in fair value of embedded derivative liability | — | — | |||||
| Non-recurring charges | 835 | 1,149 | |||||
| Selected items, before income taxes | 48,634 | (10,679 | ) | ||||
| Income tax effect of selected items | — | — | |||||
| Selected items, net of tax | 48,634 | (10,679 | ) | ||||
| Net loss available to common stockholders, as adjusted (2) | $ | (16,174 | ) | $ | (16,476 | ) | |
| Diluted net (loss) income per common share, as reported | $ | (3.72 | ) | $ | (0.35 | ) | |
| Impact of selected items | 2.79 | (0.65 | ) | ||||
| Diluted net loss per common share, excluding selected items (2)(3) | $ | (0.93 | ) | $ | (1.00 | ) | |
| Net cash provided by (used in) operating activities | $ | 2,105 | $ | 12,731 | |||
| Changes in working capital | 4,354 | (5,677 | ) | ||||
| Cash flows from operations before changes in working capital | 6,459 | 7,054 | |||||
| Cash components of selected items | (1,590 | ) | 1,709 | ||||
| Income tax effect of selected items | — | — | |||||
| Cash flows from operations before changes in working capital, adjusted for selected items (1) | $ | 4,869 | $ | 8,763 | |||
| _________________________________ | |
| (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 14, Earnings Per Share in our Form 10-K for the year ended December 31, 2025. |
| (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, 2026 and 2025 were calculated based upon weighted average diluted shares of 17.4 and 16.5 million, 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, | |||||||
| 2026 | 2025 | ||||||
| Net (loss) income, as reported | $ | (56,477 | ) | $ | 6,023 | ||
| Impact of adjusting items: | |||||||
| Interest expense | 5,841 | 7,189 | |||||
| Depletion, depreciation and accretion | 12,362 | 13,080 | |||||
| Stock-based compensation | — | 48 | |||||
| Interest income | (324 | ) | (579 | ) | |||
| Loss (gain) on extinguishment of debt | 862 | — | |||||
| Unrealized gain on derivatives contracts | 46,937 | (11,828 | ) | ||||
| Non-recurring charges and other | 835 | 1,149 | |||||
| Adjusted EBITDA(1) | $ | 10,036 | $ | 15,082 | |||
| _________________________________ | |
| (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, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | ||||||||||||
| Net (loss) income, as reported | $ | (56,477 | ) | $ | 1,795 | $ | (735 | ) | $ | 4,796 | |||||
| Impact of adjusting items: | |||||||||||||||
| Interest expense | 5,841 | 6,987 | 7,318 | 7,341 | |||||||||||
| Depletion, depreciation and accretion | 12,362 | 11,603 | 13,522 | 13,939 | |||||||||||
| Asset impairment | — | 1,072 | — | — | |||||||||||
| Stock-based compensation | — | — | — | — | |||||||||||
| Interest income | (324 | ) | (414 | ) | (503 | ) | (764 | ) | |||||||
| Loss on extinguishment of debt | 862 | — | — | — | |||||||||||
| Unrealized (gain) loss on derivatives contracts | 46,937 | (9,313 | ) | (1,044 | ) | (7,248 | ) | ||||||||
| Non-recurring charges and other | 835 | 1,631 | 324 | 73 | |||||||||||
| Adjusted EBITDA(1) | $ | 10,036 | $ | 13,361 | $ | 18,882 | $ | 18,137 | |||||||
| Adjusted LTM EBITDA(1) | $ | 60,416 | |||||||||||||
| _________________________________ | |
| (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, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | ||||||||||||
| Net income (loss), as reported | $ | 6,023 | $ | (22,202 | ) | $ | 21,628 | $ | (105 | ) | |||||
| Impact of adjusting items: | |||||||||||||||
| Interest expense | 7,189 | 6,135 | 6,873 | 7,610 | |||||||||||
| Depletion, depreciation and accretion | 13,080 | 14,155 | 12,533 | 13,213 | |||||||||||
| Asset impairment | — | 18,511 | — | — | |||||||||||
| Stock-based compensation | 48 | 12 | 5 | 36 | |||||||||||
| Interest income | (579 | ) | (278 | ) | (509 | ) | (634 | ) | |||||||
| Loss (gain) on extinguishment of debt | — | 7,489 | — | — | |||||||||||
| Unrealized (gain) loss on derivatives contracts | (11,828 | ) | 1,648 | (28,091 | ) | (4,434 | ) | ||||||||
| Change in fair value of embedded derivative liability | — | (761 | ) | 41 | (436 | ) | |||||||||
| Merger Termination Payment | — | (10,000 | ) | — | — | ||||||||||
| Non-recurring charges and other | 1,149 | 3,310 | 978 | 384 | |||||||||||
| Adjusted EBITDA(1) | $ | 15,082 | $ | 18,019 | $ | 13,458 | $ | 15,634 | |||||||
| Adjusted LTM EBITDA(1) | $ | 62,193 | |||||||||||||
| _________________________________ | |
| (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. |
