Battalion Oil Corporation Announces Third Quarter 2026 Financial and Operating Results

Rhea-AI Summary

Battalion Oil (BATL) reported a third-quarter 2026 loss available to common stockholders of $41.1 million as production declined year over year. Revenue rose to $45.6 million from $43.5 million, while daily production fell to 11,359 barrels of oil equivalent from 12,293. The loss included $38.4 million of unrealized derivative losses. Adjusted EBITDA, a non-GAAP earnings measure, fell to $10.1 million from $18.9 million.

Quarter-end cash was $92.1 million, and net debt fell to $70.4 million from $74.2 million at June 30. Battalion issued 17.1 million shares through its market-sale program during the quarter. After quarter-end, its first four joint-development wells reached total depth over 25 days ahead of plan and more than $1.5 million below gross budget. A November 11 pipeline transportation transaction will lower gathering costs, the company expects; well completions are planned for late 2026 or early 2027.

16 points · 3 major

MixediHow this balance works

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

4 major · 14 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointQ3 common-stock issuance proceeds provided $28.294 million in cash. 66% of market cap
• Major pointNine-month debt repayments totaled $45.635 million, versus $11.329 million a year earlier. 1.1× market cap
• Major pointNine-month asset-sale proceeds provided $58.810 million. 1.4× market cap
• Moderate pointQ3 operating revenue rose to $45.644 million from $43.482 million a year earlier.
• Moderate pointQ3 operating income increased to $4.968 million from $0.826 million a year earlier.
• Moderate pointQ3 realized prices before hedges rose to $43.49 per barrel of oil equivalent from $38.36.
• Moderate pointQ3 lease operating and workover costs fell to $10.40 per equivalent barrel from $11.69 a year earlier.
• Moderate pointQ3 interest expense and other fell to $3.637 million from $6.741 million a year earlier.
• Moderate pointQ3 adjusted diluted loss narrowed to $2.4 million, or $0.04 per share, from $15.7 million, or $0.96.
• Moderate pointNet debt of $70.4 million declined from $74.2 million at June 30 and $163.3 million a year earlier.
• Moderate pointCash of $92.091 million at September 30 increased from $27.965 million at December 31, 2025.
• Moderate point. Forward-looking: it has not happened yet and may not happen.November 11 pipeline transaction replaces crude trucking; Battalion expects lower gathering costs and reduced environmental, health and safety risks.

4 minor points

• Minor pointFirst four joint-development wells reached total depth over 25 days ahead of plan, over $1.5 million below gross budget.
• Minor point. Forward-looking: it has not happened yet and may not happen.Four additional wells have a contracted rig mobilizing; the development partner indicated a desire to participate.
• Minor point. Forward-looking: it has not happened yet and may not happen.Well completions are planned for late fourth-quarter 2026 or early first-quarter 2027.
• Minor pointQ3 oil production of 4,915 net barrels daily exceeded the internal target of 4,835.

Negative

• Major pointQ3 common-stockholder loss widened to $41.108 million from $15.014 million; loss per share narrowed to $0.75 from $0.91.
• Major pointQ3 operating cash flow fell to $1.641 million from $27.973 million a year earlier.
• Major point17.1 million common shares issued during Q3 diluted holders; another 25,000 shares were placed after quarter-end.
• Major pointPreferred-stock repurchase used $19.050 million of cash during Q3. 44% of market cap
• Moderate pointQ3 production fell to 11,359 equivalent barrels daily from 12,293, primarily reflecting the West Quito sale.
• Moderate pointQ3 prices after hedge settlements fell to $37.31 per equivalent barrel from $42.02 a year earlier.
• Moderate pointQ3 adjusted EBITDA declined to $10.1 million from $18.9 million a year earlier.
• Moderate pointQ3 gathering costs rose to $12.57 per equivalent barrel from $9.02 a year earlier.
• Moderate pointQ3 general and administrative costs rose to $3.71 per equivalent barrel from $2.73 a year earlier.
• Moderate pointTerm loan indebtedness remained $162.5 million at September 30, 2026.

4 minor points

• Minor pointQ3 derivative loss of $44.831 million included $38.378 million of noncash unrealized losses.
• Minor pointNine-month operating revenue declined to $132.947 million from $133.769 million a year earlier.
• Minor pointNine-month net loss was $84.469 million, versus net income of $10.084 million a year earlier.
• Minor pointNine-month operating cash flow fell to $12.524 million from $50.909 million a year earlier.

News Explained

At September 30, 2026, common shares outstanding were 59,481,510, versus 16,456,563 at December 31, 2025; issuing additional shares reduces existing holders’ percentage ownership absent offsetting changes. After quarter-end, Battalion says it ceased nearly all ATM trading, but placed another 25,000 shares.

Key Figures

Average daily net production: 11,359 Boe/d Operating revenue: $45.6 million Net loss available to common stockholders: $41.1 million +5 more

Average daily net production

11,359 Boe/d

Q3 2026; 12,293 Boe/d in Q3 2025

Operating revenue

$45.6 million

Q3 2026; $43.5 million in Q3 2025

Net loss available to common stockholders

$41.1 million

Q3 2026

Adjusted diluted net loss

$2.4 million

Q3 2026; $15.7 million in Q3 2025

Adjusted EBITDA

$10.1 million

Q3 2026; $18.9 million in Q3 2025

Net cash from operating activities

$1.6 million

Q3 2026; $28.0 million in Q3 2025

Net debt

$70.4 million

At quarter-end; down from $74.2 million at June 30, 2026 and $163.3 million at September 30, 2025

ATM program shares and net proceeds

17.1 million shares; $28.4 million

Placed during Q3 2026

Previous Earnings Reports

2 past events · Latest: Aug 12

Same Type 2 events

1. Aug 12

   Q2 earnings results

   24h Move

   -0.7%

   Revenue and net income improved year over year, while adjusted loss and EBITDA remained weaker.

2. Nov 13

   Q3 earnings results

   24h Move

   -0.9%

   The quarter reported a net loss, lower production, and an acid gas injection facility outage.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

at-the-market, mark-to-market

2 terms

at-the-market financial

"Placed 17.1 million shares of common stock under its at-the-market (“ATM”) program"

"At-the-market" is a method for companies to sell new shares of stock directly into the open market over time, rather than all at once. It allows companies to raise money gradually, similar to selling slices of a pie instead of the entire pie at once, which can help manage the sale's impact on the stock price. This approach gives investors a steady supply of shares while providing companies with flexible funding options.

mark-to-market financial

"$38.4 million was a non-cash unrealized mark-to-market loss"

"Mark-to-market" is a method of valuing assets or investments based on their current market price, rather than their original cost or value. It helps investors see the most up-to-date worth of their holdings, much like checking the latest price of a stock before deciding to buy or sell. This approach ensures that financial statements reflect real-time value, providing a clearer picture of overall financial health.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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HOUSTON, Nov. 12, 2026 (GLOBE NEWSWIRE) -- Battalion Oil Corporation (NYSE American: BATL, “Battalion” or the “Company”) today announced financial and operating results for the third quarter of 2026.

Key Q3 2026 Highlights

• Generated third quarter 2026 sales volumes of 11,359 barrels of oil equivalent per day (“Boe/d”) (~43% oil, 69% liquids)
• Ended the quarter with $92.1 million of cash and cash equivalents and net debt (term loan indebtedness less cash and cash equivalents) of $70.4 million, down from $74.2 million at June 30, 2026 and $163.3 million at September 30, 2025.
• Placed 17.1 million shares of common stock under its at-the-market (“ATM”) program for net proceeds of $28.4 million. Subsequent to September 30, 2026, the Company placed 25,000 additional shares.
• Commenced drilling operations under the previously announced joint exploration and development agreement (“JEDA”). Subsequent to quarter end, have reached total depth on the four-well pad ahead of plan by over 25 days and under budget by more than $1.5 million gross cost. Completions will commence in late fourth quarter 2026 or early first quarter 2027.
• Appointed John “Brad” Juneau to the board of directors effective September 30, 2026.
• Executed a transformative midstream transaction on November 11, 2026 to transport the Company’s crude via pipeline rather than trucking. This transaction will significantly lower gathering costs as well as mitigate environment, health and safety risks.

Management Comments

During the third quarter of 2026, the Company returned to active drilling operations. The drilling performance on the first four wells of the JEDA has exceeded expectations by significant margins. The Company has contracted the rig for an additional four wells, and the rig is currently mobilizing to the next drilling location. Our partner in the JEDA has indicated their desire to participate in the next 4 wells. The Company also exceeded internal oil production targets for the third quarter of 2026, producing an average 4,915 net barrels oil per day versus a target of 4,835 net barrels oil per day.

Financing activities under the ATM program during the third quarter of 2026 have completed the transformation of our balance sheet. Following the close of the third quarter, the Company ceased nearly all trading under the ATM and maintains its commitment of judicious use of the facility going forward. Transition from trucking to transportation of oil via pipeline is a gamechanger for the Company and represents the culmination of years of multi-party negotiations.

“Our commitment to operational excellence has shown in our third quarter results. I’m proud of the team and look forward to continued execution,” said Daniel Rohling, COO of Battalion.

Results of Operations

Average daily net production and total operating revenue during the third quarter of 2026 were 11,359 Boe/d (43% oil) and $45.6 million, respectively, as compared to production and revenue of 12,293 Boe/d (53% oil) and $43.5 million, respectively, during the third quarter of 2025. The increase in revenues in the third quarter of 2026 as compared to the third quarter of 2025 is primarily attributable to a $5.13 increase per Boe in average realized prices (excluding the impact of hedges) partially offset by lower production primarily resulting from the disposition of volumes associated with the West Quito sale. Excluding the impact of hedges, Battalion realized approximately 98% of the average NYMEX oil price during the third quarter of 2026. Realized hedge losses totaled approximately $6.5 million during the third quarter of 2026.

Lease operating and workover expense was $10.40 per Boe in the third quarter of 2026 versus $11.69 per Boe in the third quarter of 2025. The decrease in lease operating and workover expense per Boe year-over-year is primarily the result of lower maintenance, power, and chemical costs. Gathering and other expenses were $12.57 per Boe in the third quarter of 2026 versus $9.02 per Boe in the third quarter of 2025. The increase in gathering and other expenses per Boe is primarily related to greater throughput volumes resulting from entry into a long-term processing agreement with a publicly traded large-cap midstream provider in January 2026. General and administrative expenses were $3.71 per Boe in the third quarter of 2026 compared to $2.73 per Boe in the third quarter of 2025. The increase in general and administrative expenses for the third quarter of 2026 is primarily due to higher professional fees including legal costs. Excluding non-recurring charges, general and administrative expenses would have been $3.29 per Boe in the third quarter of 2026.

For the third quarter of 2026, the Company reported a net loss available to common stockholders of $41.1 million and a net loss of $0.75 per share available to common stockholders, primarily reflecting a $44.8 million net loss on derivative contracts, of which $38.4 million was a non-cash unrealized mark-to-market loss. After adjusting for selected items, the Company reported an adjusted diluted net loss available to common stockholders for the third quarter of 2026 of $2.4 million or an adjusted diluted net loss of $0.04 per common share compared to an adjusted diluted net loss available to common stockholders for the third quarter of 2025 of $15.7 million or an adjusted diluted net loss of $0.96 per common share (see Reconciliation for additional information). Adjusted EBITDA during the quarter ended September 30, 2026 was $10.1 million as compared to $18.9 million during the quarter ended September 30, 2025 (see Adjusted EBITDA Reconciliation table for additional information). The Company generated net cash flows from operating activities of $1.6 million for the quarter ended September 30, 2026 compared to $28.0 million for the quarter ended September 30, 2025.

Liquidity and Balance Sheet

As of September 30, 2026, the Company had $162.5 million of term loan indebtedness outstanding and total liquidity made up of cash and cash equivalents of $92.1 million.

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								Nine Months Ended
		September 30,								September 30,
		2026				2025				2026				2025
Operating revenues:
Oil, natural gas and natural gas liquids sales:
Oil		$	37,987			$	38,325			$	123,421			$	114,316
Natural gas			2,380				853				(6,017	)			4,611
Natural gas liquids			5,080				4,208				15,083				14,420
Total oil, natural gas and natural gas liquids sales			45,447				43,386				132,487				133,347
Other			197				96				460				422
Total operating revenues			45,644				43,482				132,947				133,769
Operating expenses:
Production:
Lease operating			10,026				12,389				29,309				33,417
Workover and other			849				839				2,489				4,581
Taxes other than income			1,723				2,622				7,028				7,944
Gathering and other			13,139				10,199				36,657				33,157
General and administrative			3,879				3,085				12,205				10,065
Depletion, depreciation and accretion			11,060				13,522				35,644				40,541
Total operating expenses			40,676				42,656				123,332				129,705
Income from operations			4,968				826				9,615				4,064
Other income (expenses):
Net (loss) gain on derivative contracts			(44,831	)			5,180				(79,744	)			26,030
Interest expense and other			(3,637	)			(6,741	)			(13,478	)			(20,010	)
Loss on extinguishment of debt			—				—				(862	)			—
Total other (expenses) income			(48,468	)			(1,561	)			(94,084	)			6,020
(Loss) income before income taxes			(43,500	)			(735	)			(84,469	)			10,084
Income tax benefit (provision)			—				—				—				—
Net (loss) income		$	(43,500	)		$	(735	)		$	(84,469	)		$	10,084
Preferred dividends			(201	)			(14,279	)			(8,532	)			(34,369	)
Deemed contribution - preferred stock repurchase			2,593				—				2,593				—
Net loss available to common stockholders		$	(41,108	)		$	(15,014	)		$	(90,408	)		$	(24,285	)
Net loss per share of common stock available to common stockholders:
Basic		$	(0.75	)		$	(0.91	)		$	(2.74	)		$	(1.48	)
Diluted		$	(0.75	)		$	(0.91	)		$	(2.74	)		$	(1.48	)
Weighted average common shares outstanding:
Basic			54,686				16,457				32,980				16,457
Diluted			54,686				16,457				32,980				16,457

BATTALION OIL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share and per share amounts)
		September 30, 2026				December 31, 2025
Current assets:
Cash and cash equivalents		$	92,091			$	27,965
Accounts receivable, net			25,644				12,071
Assets from derivative contracts			2,672				16,145
Restricted cash			91				91
Prepaids and other			589				892
Total current assets			121,087				57,164
Oil and natural gas properties (full cost method):
Evaluated			840,724				890,050
Unevaluated			54,334				48,025
Gross oil and natural gas properties			895,058				938,075
Less: accumulated depletion			(582,880	)			(547,982	)
Net oil and natural gas properties			312,178				390,093
Other operating property and equipment:
Other operating property and equipment			4,692				4,678
Less: accumulated depreciation			(2,856	)			(2,807	)
Net other operating property and equipment			1,836				1,871
Other noncurrent assets:
Assets from derivative contracts			3,822				7,350
Operating lease right of use assets			7,152				840
Other assets			3,867				3,360
Total assets		$	449,942			$	460,678
Current liabilities:
Accounts payable and accrued liabilities		$	46,664			$	39,734
Liabilities from derivative contracts			31,447				633
Current portion of long-term debt			4,063				22,510
Operating lease liabilities			1,398				764
Total current liabilities			83,572				63,641
Long-term debt, net			154,239				180,955
Other noncurrent liabilities:
Liabilities from derivative contracts			18,328				1,692
Asset retirement obligations			18,832				20,837
Operating lease liabilities			5,913				104
Commitments and contingencies
Temporary equity:
Redeemable convertible preferred stock: 138,000 shares
of $0.0001 par value authorized, issued and outstanding,
$193,757 aggregate liquidation preference at December 31, 2025			—				226,241
Stockholders' equity (deficit):
Redeemable convertible preferred stock: 103,041 shares
of $0.0001 par value authorized, issued and outstanding,
$162,821 aggregate liquidation preference at September 30, 2026			175,083				—
Common stock: 100,000,000 shares of $0.0001 par value authorized;
59,481,510 and 16,456,563 shares issued and outstanding at
September 30, 2026 and December 31, 2025, respectively			6				2
Additional paid-in capital			351,434				240,202
Accumulated deficit			(357,465	)			(272,996	)
Total stockholders' equity (deficit)			169,058				(32,792	)
Total liabilities, temporary equity and stockholders' equity		$	449,942			$	460,678

BATTALION OIL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands)
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2026				2025				2026				2025
Cash flows from operating activities:
Net (loss) income		$	(43,500	)		$	(735	)		$	(84,469	)		$	10,084
Adjustments to reconcile net (loss) income to net cash
provided by operating activities:
Depletion, depreciation and accretion			11,060				13,522				35,644				40,541
Stock-based compensation, net			115				—				536				(109	)
Unrealized loss (gain) on derivative contracts			38,378				(1,044	)			64,450				(20,120	)
Amortization of deferred financing costs			320				388				932				1,180
Loss on extinguishment of debt			—				—				862				—
Accrued settlements on derivative contracts			2,906				613				5,301				76
Other			126				84				133				193
Cash flows from operations before changes in working capital			9,405				12,828				23,389				31,845
Changes in working capital			(7,764	)			15,145				(10,865	)			19,064
Net cash provided by operating activities			1,641				27,973				12,524				50,909
Cash flows from investing activities:
Oil and natural gas capital expenditures			(5,276	)			(16,483	)			(13,094	)			(69,573	)
Proceeds received from sale of oil and natural gas assets			(1,245	)			—				58,810				—
Other operating property and equipment capital expenditures			—				—				—				(14	)
Other			(315	)			(5	)			(329	)			(375	)
Net cash (used in) provided by investing activities			(6,836	)			(16,488	)			45,387				(69,962	)
Cash flows from financing activities:
Proceeds from borrowings			—				—				—				63,000
Repayments of borrowings			—				(5,651	)			(45,635	)			(11,329	)
Debt issuance costs			(258	)			—				(1,322	)			(1,875	)
Proceeds from issuance of common stock			28,294				—				72,222				—
Preferred stock repurchase			(19,050	)			—				(19,050	)			—
Net cash provided by (used in) financing activities			8,986				(5,651	)			6,215				49,796
Net increase in cash, cash equivalents and restricted cash			3,791				5,834				64,126				30,743
Cash, cash equivalents and restricted cash at beginning of period			88,391				44,712				28,056				19,803
Cash, cash equivalents and restricted cash at end of period		$	92,182			$	50,546			$	92,182			$	50,546

BATTALION OIL CORPORATION SELECTED OPERATING DATA (Unaudited)
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2026				2025				2026				2025
Production volumes:
Crude oil (MBbls)			452				599				1,490				1,752
Natural gas (MMcf)			1,969				1,778				6,035				5,713
Natural gas liquids (MBbls)			265				236				811				680
Total (MBoe)			1,045				1,131				3,307				3,384
Average daily production (Boe/d)			11,359				12,293				12,114				12,396
Average prices:
Crude oil (per Bbl)		$	84.04			$	63.98			$	82.83			$	65.25
Natural gas (per Mcf)			1.21				0.48				(1.00	)			0.81
Natural gas liquids (per Bbl)			19.17				17.83				18.60				21.21
Total per Boe			43.49				38.36				40.06				39.41
Cash effect of derivative contracts:
Crude oil (per Bbl)		$	(17.29	)		$	1.48			$	(16.19	)		$	(1.42	)
Natural gas (per Mcf)			0.73				1.83				1.48				1.47
Natural gas liquids (per Bbl)			(0.31	)			—				(0.10	)			—
Total per Boe			(6.18	)			3.66				(4.62	)			1.75
Average prices computed after cash effect of settlement of derivative contracts:
Crude oil (per Bbl)		$	66.75			$	65.46			$	66.64			$	63.83
Natural gas (per Mcf)			1.94				2.31				0.48				2.28
Natural gas liquids (per Bbl)			18.86				17.83				18.50				21.21
Total per Boe			37.31				42.02				35.44				41.16
Average cost per Boe:
Production:
Lease operating		$	9.59			$	10.95			$	8.86			$	9.88
Workover and other			0.81				0.74				0.75				1.35
Taxes other than income			1.65				2.32				2.13				2.35
Gathering and other			12.57				9.02				11.08				9.80
General and administrative, as adjusted (1)			3.29				2.44				3.05				2.50
Depletion			10.36				11.64				10.55				11.64
(1) Represents general and administrative costs per Boe, adjusted for items noted in the reconciliation below:
General and administrative:
General and administrative, as reported		$	3.71			$	2.73			$	3.70			$	2.97
Stock-based compensation:
Non-cash			(0.12	)			-				(0.17	)			(0.01	)
Non-recurring charges and other:
Cash			(0.30	)			(0.29	)			(0.48	)			(0.46	)
General and administrative, as adjusted(2)		$	3.29			$	2.44			$	3.05			$	2.50
Total operating costs, as reported		$	28.33			$	25.76			$	26.52			$	26.35
Total adjusting items			(0.42	)			(0.29	)			(0.65	)			(0.47	)
Total operating costs, as adjusted(3)		$	27.91			$	25.47			$	25.87			$	25.88

---

(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								Nine Months Ended
		September 30,								September 30,
		2026				2025				2026				2025
As Reported:
Net loss available to common stockholders - diluted (1)		$	(41,108	)		$	(15,014	)		$	(90,408	)		$	(24,285	)
Impact of Selected Items:
Unrealized loss (gain) on derivatives contracts:
Crude oil		$	34,794			$	841			$	61,789			$	(21,485	)
Natural gas			2,167				(1,885	)			1,244				1,365
Natural gas liquids			1,417				—				1,417				—
Total mark-to-market non-cash charge			38,378				(1,044	)			64,450				(20,120	)
Loss on extinguishment of debt			—				—				862				—
Non-recurring charges			312				324				1,601				1,546
Selected items, before income taxes			38,690				(720	)			66,913				(18,574	)
Income tax effect of selected items			—				—				—				—
Selected items, net of tax			38,690				(720	)			66,913				(18,574	)
Net loss available to common stockholders, as adjusted		$	(2,418	)		$	(15,734	)		$	(23,495	)		$	(42,859	)
Diluted net loss per common share, as reported		$	(0.75	)		$	(0.91	)		$	(2.74	)		$	(1.48	)
Impact of selected items (3)			0.71				(0.05	)			2.03				(1.12	)
Diluted net loss per common share, excluding selected items (2)		$	(0.04	)		$	(0.96	)		$	(0.71	)		$	(2.60	)
Net cash provided by (used in) operating activities		$	1,641			$	27,973			$	12,524			$	50,909
Changes in working capital			7,764				(15,145	)			10,865				(19,064	)
Cash flows from operations before changes in working capital			9,405				12,828				23,389				31,845
Cash components of selected items			(2,594	)			(289	)			(3,700	)			1,470
Income tax effect of selected items			—				—				—				—
Cash flows from operations before changes in working capital, adjusted for selected items (2)		$	6,811			$	12,539			$	19,689			$	33,315

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(1) Amount reflects net 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 14, Earnings Per Share in our Form 10-K for the year ended December 31, 2025.
(2) Diluted net loss per common 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 nine months ended September 30, 2026 were calculated based upon weighted average diluted shares of 54.7 and 33.0 million, respectively, due to the net loss available to common stockholders, excluding selected items. The impact of selected items for the three and nine months ended September 30, 2025 were calculated based upon weighted average diluted shares of 16.5 million due to the net loss available to common stockholders, excluding selected items

BATTALION OIL CORPORATION ADJUSTED EBITDA RECONCILIATION (Unaudited) (In thousands)
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2026				2025				2026				2025
Net (loss) income, as reported		$	(43,500	)		$	(735	)		$	(84,469	)		$	10,084
Impact of adjusting items:
Interest expense			4,632				7,318				15,597				21,848
Depletion, depreciation and accretion			11,060				13,522				35,644				40,541
Stock-based compensation			126				—				547				48
Interest income			(903	)			(503	)			(1,839	)			(1,846	)
Loss on extinguishment of debt			—				—				862				—
Unrealized loss (gain) on derivatives contracts			38,378				(1,044	)			64,450				(20,120	)
Non-recurring charges and other			312				324				1,601				1,546
Adjusted EBITDA(1)		$	10,105			$	18,882			$	32,393			$	52,101

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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 (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
		September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025
Net (loss) income, as reported		$	(43,500	)		$	15,508			$	(56,477	)		$	1,795
Impact of adjusting items:
Interest expense			4,632				5,124				5,841				6,987
Depletion, depreciation and accretion			11,060				12,222				12,362				11,603
Asset impairment			—				—				—				1,072
Stock-based compensation			126				421				—				—
Interest income			(903	)			(612	)			(324	)			(414	)
Loss on extinguishment of debt			—				—				862				—
Unrealized loss (gain) on derivatives contracts			38,378				(20,865	)			46,937				(9,313	)
Non-recurring charges and other			312				454				835				1,631
Adjusted EBITDA(1)		$	10,105			$	12,252			$	10,036			$	13,361
Adjusted LTM EBITDA(1)		$	45,754

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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 (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
		September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
Net (loss) income, as reported		$	(735	)		$	4,796			$	6,023			$	(22,202	)
Impact of adjusting items:
Interest expense			7,318				7,341				7,189				6,135
Depletion, depreciation and accretion			13,522				13,939				13,080				14,155
Asset impairment			—				—				—				18,511
Stock-based compensation			—				—				48				12
Interest income			(503	)			(764	)			(579	)			(278	)
Loss on extinguishment of debt			—				—				—				7,489
Unrealized (gain) loss on derivatives contracts			(1,044	)			(7,248	)			(11,828	)			1,648
Change in fair value of embedded derivative liability			—				—				—				(761	)
Merger Termination Payment			—				—				—				(10,000	)
Non-recurring charges and other			324				73				1,149				3,310
Adjusted EBITDA(1)		$	18,882			$	18,137			$	15,082			$	18,019
Adjusted LTM EBITDA(1)		$	70,120

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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.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Battalion Oil's Q3 2026 earnings results?

Battalion reported a $41.1 million loss available to common stockholders, or $0.75 per share, for Q3 2026. Adjusted diluted loss was $2.4 million, or $0.04 per common share, compared with $15.7 million, or $0.96 per common share, a year earlier.

When will Battalion Oil complete its first four joint-development wells?

Completions are planned to begin in late fourth-quarter 2026 or early first-quarter 2027. After quarter-end, the four-well pad reached total depth over 25 days ahead of plan and more than $1.5 million below gross budget.