Battalion Oil Corporation

Battalion Oil Corporation (BATL) reported total operating revenues of $166.0 million for FY 2025, driven by $165.0 million in oil, natural gas, and natural gas liquids sales plus $1.1 million in other revenue. Operating expenses totaled $172.7 million, including $52.1 million in depletion, depreciation, and accretion, $44.8 million in lease operating costs, and $43.7 million in gathering and other expenses, resulting in a $6.6 million loss from operations. A $45.3 million net gain on derivative contracts offset interest expense and other costs, yielding $11.9 million income before taxes and net income of $11.9 million. Preferred dividends of $48.7 million led to a $36.8 million net loss available to common stockholders, or $2 per basic and diluted share on 16.5 million shares. Proved reserves declined to 59,702 Mboe from 64,947 Mboe in 2024 due to 4,415 Mboe production and negative revisions, partially offset by extensions. Operating cash flow was $39.1 million, with $75.0 million used in investing (primarily $74.6 million oil/gas capex) and $44.1 million from financing. Total assets stood at $460.7 million, cash at $28.0 million, long-term debt at $181.0 million (total debt $208.1 million), and stockholders' deficit at $32.8 million. Investors should note liquidity risks, debt covenants, and Delaware Basin focus amid volatile prices ($66.01/bbl oil, $3.39/MMBtu gas).

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