Battalion Oil Corporation (NYSE American: BATL, “Battalion” or the
“Company”) today announced financial and operating results for the
first quarter 2022.
Key Highlights
- Meeting or exceeding performance
targets on drilling and completion activities year to date
- Mitigating cost increases and
material shortages through increased operational and capital
efficiencies
- Continued robust commodity pricing
offering opportunity to layer on new hedges at attractive
prices
- Ample liquidity to execute on 2022
capital program
- Recently began flowing back on
first wells of 2022 capital program
Management Comments
Richard Little, the Company’s CEO, commented,
“As we entered 2022, our goal was clear: ramp up activity and drive
significant growth in daily production and cash flow while
remaining committed to capital discipline and operational
efficiency. I am pleased to say we are delivering on all
operational fronts and we are well on our way to achieving our 2022
goals.”
Mr. Little continued, “With the first wells from
our capital program flowing back, we expect to begin driving
significant cash flow growth as we burn off below market hedges and
layer on new ones at attractive prices. As we continue to move
through 2022 and turn additional wells online, we will continue to
prioritize capital discipline and operational efficiency and will
remain diligent in our efforts to mitigate risks caused by
inflationary pressures, supply chain disruption, or shifts in the
geopolitical landscape.”
Results of Operations
Average daily net production and total operating
revenue during the first quarter 2022 were 14,767 barrels of oil
equivalent per day (“Boepd”) (50% oil) and $81.6 million,
respectively, as compared to production and revenue of 14,333 Boepd
(56% oil) and $55.5 million, respectively, during the first quarter
2021. In February 2021, we temporarily shut-in production due to
inclement weather. The estimated decrease in average daily oil and
natural gas production associated with this temporary shut-in was
approximately 1,300 Boe/d in the first three months of 2021. The
increase in revenues in the first quarter of 2022 as compared to
the first quarter 2021 is primarily attributable to an approximate
$18.42 per Boe increase in average realized prices (excluding the
impact of hedges).
Excluding the impact of hedges, Battalion
realized 99% of the average NYMEX oil price during the first
quarter of 2022. Realized hedge losses totaled approximately $32.8
million during the first quarter 2022.
Lease operating and workover expense was $9.32
per Boe in the first quarter of 2022 and $7.77 per Boe in the first
quarter of 2021. Adjusted G&A was $3.30 per Boe in the first
quarter of 2022 compared to $3.24 per Boe in the first quarter of
2021 (see Selected Operating Data table for additional
information).
The Company reported a net loss to common
stockholders for the first quarter of 2022 of $92.7 million and a
net loss per basic and diluted share of $5.69. After adjusting for
selected items, the Company reported a net loss to common
stockholders for the first quarter of 2022 of $3.5 million, or a
$0.22 loss per basic and diluted share (see Selected Item Review
and Reconciliation for additional information). Adjusted EBITDA
during the quarter ended March 31, 2022, was $11.8 million as
compared to $15.3 million during the quarter ended March 31, 2021
(see Adjusted EBITDA Reconciliation table for additional
information).
Liquidity and Balance Sheet
As of March 31, 2022, the Company had $200.0
million of indebtedness outstanding, approximately $1.6 million of
letters of credit outstanding and up to $35.0 million in delayed
draw term loans available to be drawn under our Term Loan
Agreement. Total liquidity on March 31, 2022, inclusive of $43.5
million of cash and cash equivalents, was $78.5 million. On April
29, 2022, the Company borrowed the $20.0 million available under
the first delayed draw of the Term Loan Agreement.
Conference Call Information
Battalion Oil Corporation has scheduled a
conference call for Tuesday, May 10, 2022, at 10:00 a.m.
Central Time. To access the live conference call, local
participants may dial +1 (646) 828-8193. All other participants may
dial (888) 220-8474 for toll free. The confirmation code for the
live conference call is 2126195. The live conference call will also
be available through the Company’s website
at www.battalionoil.com on the Events and Presentations page
under the Investors tab. The replay for the event will be available
on the Company’s website at www.battalionoil.com on the Events
and Presentations page under the Investors tab through June
30, 2022.
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, 2021, 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.
BATTALION OIL
CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited)(In thousands, except per
share amounts)
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
2022 |
|
2021 |
Operating
revenues: |
|
|
|
|
|
|
Oil, natural gas and natural gas liquids sales: |
|
|
|
|
|
|
Oil |
|
$ |
62,524 |
|
|
$ |
41,270 |
|
Natural gas |
|
|
8,881 |
|
|
|
9,087 |
|
Natural gas liquids |
|
|
10,003 |
|
|
|
4,909 |
|
Total oil, natural gas and natural gas liquids sales |
|
|
81,408 |
|
|
|
55,266 |
|
Other |
|
|
194 |
|
|
|
252 |
|
Total operating revenues |
|
|
81,602 |
|
|
|
55,518 |
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
Production: |
|
|
|
|
|
|
Lease operating |
|
|
11,524 |
|
|
|
9,467 |
|
Workover and other |
|
|
865 |
|
|
|
560 |
|
Taxes other than income |
|
|
4,951 |
|
|
|
3,192 |
|
Gathering and other |
|
|
15,255 |
|
|
|
13,171 |
|
General and administrative |
|
|
4,985 |
|
|
|
4,827 |
|
Depletion, depreciation and accretion |
|
|
10,220 |
|
|
|
10,595 |
|
Total operating expenses |
|
|
47,800 |
|
|
|
41,812 |
|
Income (loss) from
operations |
|
|
33,802 |
|
|
|
13,706 |
|
|
|
|
|
|
|
|
Other income
(expenses): |
|
|
|
|
|
|
Net gain (loss) on derivative contracts |
|
|
(123,858 |
) |
|
|
(45,711 |
) |
Interest expense and other |
|
|
(2,688 |
) |
|
|
(1,370 |
) |
Total other income (expenses) |
|
|
(126,546 |
) |
|
|
(47,081 |
) |
Income (loss) before income taxes |
|
|
(92,744 |
) |
|
|
(33,375 |
) |
Income tax benefit (provision) |
|
|
— |
|
|
|
— |
|
Net income
(loss) |
|
$ |
(92,744 |
) |
|
$ |
(33,375 |
) |
|
|
|
|
|
|
|
Net income (loss) per
share of common stock: |
|
|
|
|
|
|
Basic |
|
$ |
(5.69 |
) |
|
$ |
(2.06 |
) |
Diluted |
|
$ |
(5.69 |
) |
|
$ |
(2.06 |
) |
Weighted average
common shares outstanding: |
|
|
|
|
|
|
Basic |
|
|
16,303 |
|
|
|
16,232 |
|
Diluted |
|
|
16,303 |
|
|
|
16,232 |
|
BATTALION OIL
CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)(In thousands, except share and per
share amounts)
|
|
|
|
|
|
|
|
|
March 31, 2022 |
|
December 31, 2021 |
Current
assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
43,487 |
|
|
$ |
46,864 |
|
Accounts receivable, net |
|
|
43,375 |
|
|
|
36,806 |
|
Assets from derivative contracts |
|
|
3,596 |
|
|
|
1,383 |
|
Restricted cash |
|
|
150 |
|
|
|
1,495 |
|
Prepaids and other |
|
|
1,268 |
|
|
|
1,366 |
|
Total current assets |
|
|
91,876 |
|
|
|
87,914 |
|
Oil and natural gas
properties (full cost method): |
|
|
|
|
|
|
Evaluated |
|
|
593,525 |
|
|
|
569,886 |
|
Unevaluated |
|
|
64,885 |
|
|
|
64,305 |
|
Gross oil and natural gas properties |
|
|
658,410 |
|
|
|
634,191 |
|
Less - accumulated depletion |
|
|
(349,843 |
) |
|
|
(339,776 |
) |
Net oil and natural gas properties |
|
|
308,567 |
|
|
|
294,415 |
|
Other operating
property and equipment: |
|
|
|
|
|
|
Other operating property and equipment |
|
|
3,627 |
|
|
|
3,467 |
|
Less - accumulated depreciation |
|
|
(1,079 |
) |
|
|
(1,035 |
) |
Net other operating property and equipment |
|
|
2,548 |
|
|
|
2,432 |
|
Other noncurrent
assets: |
|
|
|
|
|
|
Assets from derivative contracts |
|
|
5,195 |
|
|
|
2,515 |
|
Operating lease right of use assets |
|
|
631 |
|
|
|
721 |
|
Other assets |
|
|
1,973 |
|
|
|
2,270 |
|
Total
assets |
|
$ |
410,790 |
|
|
$ |
390,267 |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
81,370 |
|
|
$ |
62,826 |
|
Liabilities from derivative contracts |
|
|
103,232 |
|
|
|
58,322 |
|
Current portion of long-term debt |
|
|
5,000 |
|
|
|
85 |
|
Operating lease liabilities |
|
|
373 |
|
|
|
369 |
|
Total current liabilities |
|
|
189,975 |
|
|
|
121,602 |
|
Long-term debt,
net |
|
|
177,463 |
|
|
|
181,565 |
|
Other noncurrent
liabilities: |
|
|
|
|
|
|
Liabilities from derivative contracts |
|
|
58,166 |
|
|
|
7,144 |
|
Asset retirement obligations |
|
|
12,005 |
|
|
|
11,896 |
|
Operating lease liabilities |
|
|
258 |
|
|
|
352 |
|
Other |
|
|
1,971 |
|
|
|
4,003 |
|
Commitments and
contingencies |
|
|
|
|
|
|
Stockholders’
equity: |
|
|
|
|
|
|
Common stock: 100,000,000
shares of $0.0001 par value authorized; |
|
|
|
|
|
|
16,337,030 and 16,273,913 shares issued and outstanding as of |
|
|
|
|
|
|
March 31, 2022 and December 31, 2021, respectively |
|
|
2 |
|
|
|
2 |
|
Additional paid-in
capital |
|
|
332,178 |
|
|
|
332,187 |
|
Retained earnings (accumulated
deficit) |
|
|
(361,228 |
) |
|
|
(268,484 |
) |
Total stockholders’ equity |
|
|
(29,048 |
) |
|
|
63,705 |
|
Total liabilities and
stockholders’ equity |
|
$ |
410,790 |
|
|
$ |
390,267 |
|
BATTALION OIL
CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS (Unaudited)(In thousands)
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
2022 |
|
2021 |
Cash flows from
operating activities: |
|
|
|
|
|
|
Net income (loss) |
|
$ |
(92,744 |
) |
|
$ |
(33,375 |
) |
Adjustments to reconcile net
income (loss) to net cash |
|
|
|
|
|
|
provided by (used in)
operating activities: |
|
|
|
|
|
|
Depletion, depreciation and
accretion |
|
|
10,220 |
|
|
|
10,595 |
|
Stock-based compensation,
net |
|
|
384 |
|
|
|
594 |
|
Unrealized loss (gain) on
derivative contracts |
|
|
91,038 |
|
|
|
36,052 |
|
Amortization of deferred loan
costs |
|
|
899 |
|
|
|
— |
|
Reorganization items |
|
|
(744 |
) |
|
|
— |
|
Accrued settlements on
derivative contracts |
|
|
12,809 |
|
|
|
4,568 |
|
Change in fair value of Change
of Control Call Option |
|
|
(2,032 |
) |
|
|
— |
|
Other income (expense) |
|
|
— |
|
|
|
(117 |
) |
Cash flows from operations
before changes in working capital |
|
|
19,830 |
|
|
|
18,317 |
|
Changes in working
capital |
|
|
(7,783 |
) |
|
|
(4,959 |
) |
Net cash provided by (used in)
operating activities |
|
|
12,047 |
|
|
|
13,358 |
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
Oil and natural gas capital
expenditures |
|
|
(15,684 |
) |
|
|
(13,792 |
) |
Proceeds received from sale of
oil and natural gas properties |
|
|
— |
|
|
|
1,076 |
|
Funds held in escrow and
other |
|
|
(160 |
) |
|
|
(3 |
) |
Net cash provided by (used in)
investing activities |
|
|
(15,844 |
) |
|
|
(12,719 |
) |
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
Proceeds from borrowings |
|
|
— |
|
|
|
16,000 |
|
Repayments of borrowings |
|
|
(85 |
) |
|
|
(19,000 |
) |
Debt issuance costs |
|
|
(379 |
) |
|
|
— |
|
Other |
|
|
(461 |
) |
|
|
(263 |
) |
Net cash provided by (used in)
financing activities |
|
|
(925 |
) |
|
|
(3,263 |
) |
|
|
|
|
|
|
|
Net increase
(decrease) in cash, cash equivalents and restricted
cash |
|
|
(4,722 |
) |
|
|
(2,624 |
) |
|
|
|
|
|
|
|
Cash, cash equivalents and
restricted cash at beginning of period |
|
|
48,359 |
|
|
|
4,295 |
|
Cash, cash equivalents and
restricted cash at end of period |
|
$ |
43,637 |
|
|
$ |
1,671 |
|
BATTALION OIL
CORPORATIONSELECTED OPERATING DATA
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
2022 |
|
2021 |
Production volumes: |
|
|
|
|
|
|
Crude oil (MBbls) |
|
|
670 |
|
|
|
719 |
|
Natural gas (MMcf) |
|
|
2,315 |
|
|
|
2,133 |
|
Natural gas liquids (MBbls) |
|
|
273 |
|
|
|
215 |
|
Total (MBoe) |
|
|
1,329 |
|
|
|
1,290 |
|
Average daily production (Boe/d) |
|
|
14,767 |
|
|
|
14,333 |
|
|
|
|
|
|
|
|
Average prices: |
|
|
|
|
|
|
Crude oil (per Bbl) |
|
$ |
93.32 |
|
|
$ |
57.40 |
|
Natural gas (per Mcf) |
|
|
3.84 |
|
|
|
4.26 |
|
Natural gas liquids (per Bbl) |
|
|
36.64 |
|
|
|
22.83 |
|
Total per Boe |
|
|
61.26 |
|
|
|
42.84 |
|
|
|
|
|
|
|
|
Cash effect of derivative contracts: |
|
|
|
|
|
|
Crude oil (per Bbl) |
|
$ |
(46.64 |
) |
|
$ |
(13.17 |
) |
Natural gas (per Mcf) |
|
|
(0.68 |
) |
|
|
(0.09 |
) |
Natural gas liquids (per Bbl) |
|
|
— |
|
|
|
— |
|
Total per Boe |
|
|
(24.70 |
) |
|
|
(7.49 |
) |
|
|
|
|
|
|
|
Average prices computed after cash effect of settlement of
derivative contracts: |
|
|
|
|
|
|
Crude oil (per Bbl) |
|
$ |
46.68 |
|
|
$ |
44.23 |
|
Natural gas (per Mcf) |
|
|
3.16 |
|
|
|
4.17 |
|
Natural gas liquids (per Bbl) |
|
|
36.64 |
|
|
|
22.83 |
|
Total per Boe |
|
|
36.56 |
|
|
|
35.35 |
|
|
|
|
|
|
|
|
Average cost per Boe: |
|
|
|
|
|
|
Production: |
|
|
|
|
|
|
Lease operating |
|
$ |
8.67 |
|
|
$ |
7.34 |
|
Workover and other |
|
|
0.65 |
|
|
|
0.43 |
|
Taxes other than income |
|
|
3.73 |
|
|
|
2.47 |
|
Gathering and other |
|
|
11.48 |
|
|
|
10.21 |
|
General and administrative, as adjusted (1) |
|
|
3.30 |
|
|
|
3.24 |
|
Depletion |
|
|
7.57 |
|
|
|
8.02 |
|
|
|
|
|
|
|
|
(1) Represents
general and administrative costs per Boe, adjusted for items noted
in the reconciliation below: |
|
|
|
|
|
|
|
General and
administrative: |
|
|
|
|
|
|
General and administrative, as reported |
|
$ |
3.75 |
|
|
$ |
3.74 |
|
Stock-based compensation: |
|
|
|
|
|
|
Non-cash |
|
|
(0.29 |
) |
|
|
(0.46 |
) |
Non-recurring charges and other: |
|
|
|
|
|
|
Cash |
|
|
(0.16 |
) |
|
|
(0.04 |
) |
General and administrative, as adjusted(2) |
|
$ |
3.30 |
|
|
$ |
3.24 |
|
|
|
|
|
|
|
|
Total operating costs, as
reported |
|
$ |
28.28 |
|
|
$ |
24.19 |
|
Total adjusting items |
|
|
(0.45 |
) |
|
|
(0.50 |
) |
Total operating costs, as
adjusted(3) |
|
$ |
27.83 |
|
|
$ |
23.69 |
|
(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
CORPORATIONSELECTED ITEM REVIEW AND RECONCILIATION
(Unaudited)(In thousands, except per share
amounts)
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
2022 |
|
2021 |
As
Reported: |
|
|
|
|
|
|
Net income (loss), as reported |
|
$ |
(92,744 |
) |
|
$ |
(33,375 |
) |
|
|
|
|
|
|
|
Impact of Selected
Items: |
|
|
|
|
|
|
Unrealized loss (gain) on
derivatives contracts: |
|
|
|
|
|
|
Crude oil |
|
$ |
82,901 |
|
|
$ |
34,811 |
|
Natural gas |
|
|
8,137 |
|
|
|
1,241 |
|
Total mark-to-market non-cash
charge |
|
|
91,038 |
|
|
|
36,052 |
|
Change in fair value of Change
of Control Call Option |
|
|
(2,032 |
) |
|
|
— |
|
Non-recurring charges and
other |
|
|
217 |
|
|
|
52 |
|
Selected items, before income
taxes |
|
|
89,223 |
|
|
|
36,104 |
|
Income tax effect of selected
items |
|
|
— |
|
|
|
— |
|
Selected items, net of
tax |
|
|
89,223 |
|
|
|
36,104 |
|
|
|
|
|
|
|
|
As
Adjusted: |
|
|
|
|
|
|
Net income (loss), excluding
selected items (1) |
|
$ |
(3,521 |
) |
|
$ |
2,729 |
|
|
|
|
|
|
|
|
Basic net income (loss) per
common share, as reported |
|
$ |
(5.69 |
) |
|
$ |
(2.06 |
) |
Impact of selected items |
|
|
5.47 |
|
|
|
2.23 |
|
Basic net income (loss) per
common share, excluding selected items (1) |
|
$ |
(0.22 |
) |
|
$ |
0.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income (loss) per
common share, as reported |
|
$ |
(5.69 |
) |
|
$ |
(2.06 |
) |
Impact of selected items |
|
|
5.47 |
|
|
|
2.23 |
|
Diluted net income (loss) per
common share, excluding selected items (1)(2) |
|
$ |
(0.22 |
) |
|
$ |
0.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in)
operating activities |
|
$ |
12,047 |
|
|
$ |
13,358 |
|
Changes in working
capital |
|
|
7,783 |
|
|
|
4,959 |
|
Cash flows from operations
before changes in working capital |
|
|
19,830 |
|
|
|
18,317 |
|
Cash components of selected
items |
|
|
(11,848 |
) |
|
|
(4,516 |
) |
Income tax effect of selected
items |
|
|
— |
|
|
|
— |
|
Cash flows from operations
before changes in working capital, adjusted for selected items
(1) |
|
$ |
7,982 |
|
|
$ |
13,801 |
|
(1) Net income (loss) and 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.
(2) The impact of selected items for the three
months ended March 31, 2022 and 2021 were calculated based upon
weighted average diluted shares of 16.3 million and 16.4 million,
respectively, due to the net income (loss) available to common
stockholders, excluding selected items.
BATTALION OIL
CORPORATIONADJUSTED EBITDA RECONCILIATION
(Unaudited)(In thousands)
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
2022 |
|
2021 |
|
|
|
|
|
|
|
Net income (loss), as reported |
|
$ |
(92,744 |
) |
|
$ |
(33,375 |
) |
Impact of adjusting
items: |
|
|
|
|
|
|
Interest expense |
|
|
4,721 |
|
|
|
1,496 |
|
Depletion, depreciation and accretion |
|
|
10,220 |
|
|
|
10,595 |
|
Stock-based compensation |
|
|
384 |
|
|
|
594 |
|
Interest income |
|
|
— |
|
|
|
(125 |
) |
Unrealized loss (gain) on derivatives contracts |
|
|
91,038 |
|
|
|
36,052 |
|
Change in fair value of Change of Control Call Option |
|
|
(2,032 |
) |
|
|
— |
|
Non-recurring charges and other |
|
|
217 |
|
|
|
48 |
|
Adjusted EBITDA(1) |
|
$ |
11,804 |
|
|
$ |
15,285 |
|
(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
CORPORATIONADJUSTED EBITDA RECONCILIATION
(Unaudited)(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Three Months |
|
Three Months |
|
Three Months |
|
|
Ended |
|
Ended |
|
Ended |
|
Ended |
|
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss), as reported |
|
$ |
(92,744 |
) |
|
$ |
25,935 |
|
|
$ |
13,052 |
|
|
$ |
(33,929 |
) |
Impact of adjusting
items: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
4,721 |
|
|
|
3,215 |
|
|
|
1,904 |
|
|
|
1,838 |
|
Depletion, depreciation and accretion |
|
|
10,220 |
|
|
|
12,679 |
|
|
|
10,885 |
|
|
|
11,249 |
|
Stock-based compensation |
|
|
384 |
|
|
|
450 |
|
|
|
481 |
|
|
|
485 |
|
Interest income |
|
|
— |
|
|
|
(1 |
) |
|
|
(3 |
) |
|
|
(84 |
) |
Loss (gain) on extinguishment of debt |
|
|
— |
|
|
|
122 |
|
|
|
(2,068 |
) |
|
|
— |
|
Unrealized loss (gain) on derivatives contracts |
|
|
91,038 |
|
|
|
(21,332 |
) |
|
|
(1,816 |
) |
|
|
34,817 |
|
Change in fair value of Change of Control Call Option |
|
|
(2,032 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Non-recurring charges (credits) and other |
|
|
217 |
|
|
|
(718 |
) |
|
|
559 |
|
|
|
(275 |
) |
Adjusted EBITDA(1) |
|
$ |
11,804 |
|
|
$ |
20,350 |
|
|
$ |
22,994 |
|
|
$ |
14,101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted LTM EBITDA(1) |
|
$ |
69,249 |
|
|
|
|
|
|
|
|
|
|
(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
CORPORATIONADJUSTED EBITDA RECONCILIATION
(Unaudited)(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Three Months |
|
Three Months |
|
Three Months |
|
|
Ended |
|
Ended |
|
Ended |
|
Ended |
|
|
March 31, 2021 |
|
December 31, 2020 |
|
September 30, 2020 |
|
June 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss), as reported |
|
$ |
(33,375 |
) |
|
$ |
(63,757 |
) |
|
$ |
(153,125 |
) |
|
$ |
(127,316 |
) |
Impact of adjusting
items: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
1,496 |
|
|
|
1,853 |
|
|
|
1,964 |
|
|
|
1,842 |
|
Depletion, depreciation and accretion |
|
|
10,595 |
|
|
|
13,886 |
|
|
|
15,755 |
|
|
|
14,382 |
|
Full cost ceiling impairment |
|
|
— |
|
|
|
26,702 |
|
|
|
128,336 |
|
|
|
60,107 |
|
Stock-based compensation |
|
|
594 |
|
|
|
785 |
|
|
|
620 |
|
|
|
786 |
|
Interest income |
|
|
(125 |
) |
|
|
(171 |
) |
|
|
(273 |
) |
|
|
(232 |
) |
Restructuring |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,162 |
|
Unrealized loss (gain) on derivatives contracts |
|
|
36,052 |
|
|
|
30,172 |
|
|
|
21,128 |
|
|
|
67,221 |
|
Rig termination and stacking charges |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,383 |
|
Non-recurring charges (credits) and other |
|
|
48 |
|
|
|
(658 |
) |
|
|
210 |
|
|
|
880 |
|
Adjusted EBITDA(1)(2) |
|
$ |
15,285 |
|
|
$ |
8,812 |
|
|
$ |
14,615 |
|
|
$ |
23,215 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted LTM EBITDA(1)(2) |
|
$ |
61,927 |
|
|
|
|
|
|
|
|
|
|
(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.
(2) Adjusted EBITDA for the three months ended
September 30,2020 and June 30,2020 includes approximately $6.6
million and $16.4 million of net proceeds, respectively, from hedge
monetizations that occurred during the periods.
Contact
Chris Lang
Manager, Finance
(832) 538-0551
Battalion Oil (AMEX:BATL)
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