Battalion Oil Corporation (NYSE American: BATL, “Battalion” or the
“Company”) today announced financial and operating results for the
second quarter 2022.
Key Highlights
- First five wells of 2022 capital
program put online during quarter and continued one-rig program
with spudding of next three well pad
- Disciplined capital program
mitigating inflation and supply chain disruption
- Outstanding performance in drilling
and completion operations – fewer drilling days and higher pump
efficiency than plan
- Construction underway on recently
announced strategic acid gas treating facility
- Anticipate meaningful production
and EBITDA growth in second half of 2022
Management Comments
Richard Little, the Company’s CEO, commented,
“The second quarter was all about building momentum as we pivoted
towards production and cash flow growth. The first five wells of
our 2022 capital program were brought online this quarter and with
that comes increased exposure to a strong commodity price
environment. While we are yet to see a full quarter of production
from these wells, we are encouraged by the early results and the
potential they bring from a cash flow perspective.”
“We are also excited to have recently announced
a landmark joint venture to develop a strategic acid gas treatment
facility in Winkler County. This agreement is a critical piece of
our story and is central to our strategy. Not only does it provide
a comprehensive solution for our current and future gas processing
needs, but it does so while significantly reducing our operating
expenses, minimizing our capital exposure, and meaningfully
reducing our environmental impact.”
Mr. Little continued, “With our development
program still clipping along with record efficiency and our hedge
book continuously improving as we aim to lock in returns, we expect
to generate substantial EBITDA growth in the second half of the
year as we exit 2022 having delivered meaningful growth in daily
production.”
Results of Operations
Average daily net production and total operating
revenue during the second quarter 2022 were 15,044 barrels of oil
equivalent per day (“Boepd”) (49% oil) and $101.5 million,
respectively, as compared to production and revenue of 15,571 Boepd
(57% oil) and $64.4 million, respectively, during the second
quarter 2021. The increase in revenues year-over-year is primarily
attributable to an approximate $28.75 per Boe increase in average
realized prices (excluding the impact of hedges).
Excluding the impact of hedges, Battalion
realized 101% of the average NYMEX oil price during the second
quarter of 2022. Realized hedge losses totaled approximately $44.7
million during the second quarter 2022.
Lease operating and workover expense was $9.71
per Boe in the second quarter of 2022 and $7.72 per Boe in the
second quarter of 2021. Adjusted G&A was $2.90 per Boe in the
second quarter of 2022 compared to $2.69 per Boe in the second
quarter of 2021 (see Selected Operating Data table for additional
information).
The Company reported net income to common
stockholders for the second quarter of 2022 of $13.0 million and
net income per diluted share of $0.79. After adjusting for selected
items, the Company reported an adjusted net loss to common
stockholders for the second quarter of 2022 of $0.2 million, or an
adjusted net loss of $0.01 per diluted share (see Selected Item
Review and Reconciliation for additional information). Adjusted
EBITDA during the quarter ended June 30, 2022, was $18.2 million as
compared to $14.1 million during the quarter ended June 30, 2021
(see Adjusted EBITDA Reconciliation table for additional
information).
Liquidity and Balance Sheet
As of June 30, 2022, the Company had $220.0
million of indebtedness outstanding, approximately $1.3 million of
letters of credit outstanding and up to $15.0 million in delayed
draw term loans available to be drawn under our Term Loan
Agreement. Total liquidity on June 30, 2022, inclusive of $43.6
million of cash and cash equivalents, was $58.6 million.
Conference Call Information
Battalion Oil Corporation has scheduled a
conference call for Tuesday, August 9, 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 1239325. 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.
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.
Contact
Chris LangDirector, Finance & Investor Relations(832)
538-0551
BATTALION OIL
CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited)(In thousands, except per
share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Operating
revenues: |
|
|
|
|
|
|
|
|
|
|
|
Oil, natural gas and natural gas liquids sales: |
|
|
|
|
|
|
|
|
|
|
|
Oil |
$ |
73,944 |
|
|
$ |
51,935 |
|
|
$ |
136,468 |
|
|
$ |
93,205 |
|
Natural gas |
|
14,759 |
|
|
|
5,317 |
|
|
|
23,640 |
|
|
|
14,404 |
|
Natural gas liquids |
|
12,587 |
|
|
|
6,851 |
|
|
|
22,590 |
|
|
|
11,760 |
|
Total oil, natural gas and natural gas liquids sales |
|
101,290 |
|
|
|
64,103 |
|
|
|
182,698 |
|
|
|
119,369 |
|
Other |
|
221 |
|
|
|
263 |
|
|
|
415 |
|
|
|
515 |
|
Total operating revenues |
|
101,511 |
|
|
|
64,366 |
|
|
|
183,113 |
|
|
|
119,884 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
Production: |
|
|
|
|
|
|
|
|
|
|
|
Lease operating |
|
11,909 |
|
|
|
10,169 |
|
|
|
23,433 |
|
|
|
19,636 |
|
Workover and other |
|
1,383 |
|
|
|
767 |
|
|
|
2,248 |
|
|
|
1,327 |
|
Taxes other than income |
|
5,372 |
|
|
|
2,912 |
|
|
|
10,323 |
|
|
|
6,104 |
|
Gathering and other |
|
15,869 |
|
|
|
14,331 |
|
|
|
31,124 |
|
|
|
27,502 |
|
General and administrative |
|
4,588 |
|
|
|
4,031 |
|
|
|
9,573 |
|
|
|
8,858 |
|
Depletion, depreciation and accretion |
|
12,601 |
|
|
|
11,249 |
|
|
|
22,821 |
|
|
|
21,844 |
|
Total operating expenses |
|
51,722 |
|
|
|
43,459 |
|
|
|
99,522 |
|
|
|
85,271 |
|
Income (loss) from
operations |
|
49,789 |
|
|
|
20,907 |
|
|
|
83,591 |
|
|
|
34,613 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses): |
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on derivative contracts |
|
(31,910 |
) |
|
|
(53,089 |
) |
|
|
(155,768 |
) |
|
|
(98,800 |
) |
Interest expense and other |
|
(4,832 |
) |
|
|
(1,747 |
) |
|
|
(7,520 |
) |
|
|
(3,117 |
) |
Total other income (expenses) |
|
(36,742 |
) |
|
|
(54,836 |
) |
|
|
(163,288 |
) |
|
|
(101,917 |
) |
Income (loss) before income taxes |
|
13,047 |
|
|
|
(33,929 |
) |
|
|
(79,697 |
) |
|
|
(67,304 |
) |
Income tax benefit (provision) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net income
(loss) |
$ |
13,047 |
|
|
$ |
(33,929 |
) |
|
$ |
(79,697 |
) |
|
$ |
(67,304 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share of common stock: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.80 |
|
|
$ |
(2.09 |
) |
|
$ |
(4.88 |
) |
|
$ |
(4.14 |
) |
Diluted |
$ |
0.79 |
|
|
$ |
(2.09 |
) |
|
$ |
(4.88 |
) |
|
$ |
(4.14 |
) |
Weighted average
common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
16,338 |
|
|
|
16,268 |
|
|
|
16,320 |
|
|
|
16,250 |
|
Diluted |
|
16,510 |
|
|
|
16,268 |
|
|
|
16,320 |
|
|
|
16,250 |
|
BATTALION OIL
CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)(In thousands, except share and per
share amounts)
|
|
|
|
|
|
|
June 30, 2022 |
|
December 31, 2021 |
Current
assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
43,640 |
|
|
$ |
46,864 |
|
Accounts receivable, net |
|
53,002 |
|
|
|
36,806 |
|
Assets from derivative contracts |
|
6,146 |
|
|
|
1,383 |
|
Restricted cash |
|
135 |
|
|
|
1,495 |
|
Prepaids and other |
|
927 |
|
|
|
1,366 |
|
Total current assets |
|
103,850 |
|
|
|
87,914 |
|
Oil and natural gas
properties (full cost method): |
|
|
|
|
|
Evaluated |
|
632,004 |
|
|
|
569,886 |
|
Unevaluated |
|
64,760 |
|
|
|
64,305 |
|
Gross oil and natural gas properties |
|
696,764 |
|
|
|
634,191 |
|
Less - accumulated depletion |
|
(362,257 |
) |
|
|
(339,776 |
) |
Net oil and natural gas properties |
|
334,507 |
|
|
|
294,415 |
|
Other operating
property and equipment: |
|
|
|
|
|
Other operating property and equipment |
|
4,045 |
|
|
|
3,467 |
|
Less - accumulated depreciation |
|
(1,027 |
) |
|
|
(1,035 |
) |
Net other operating property and equipment |
|
3,018 |
|
|
|
2,432 |
|
Other noncurrent
assets: |
|
|
|
|
|
Assets from derivative contracts |
|
3,972 |
|
|
|
2,515 |
|
Operating lease right of use assets |
|
539 |
|
|
|
721 |
|
Other assets |
|
3,329 |
|
|
|
2,270 |
|
Total
assets |
$ |
449,215 |
|
|
$ |
390,267 |
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Accounts payable and accrued liabilities |
$ |
97,334 |
|
|
$ |
62,826 |
|
Liabilities from derivative contracts |
|
91,750 |
|
|
|
58,322 |
|
Current portion of long-term debt |
|
15,000 |
|
|
|
85 |
|
Operating lease liabilities |
|
377 |
|
|
|
369 |
|
Asset retirement obligations |
|
401 |
|
|
|
— |
|
Total current liabilities |
|
204,862 |
|
|
|
121,602 |
|
Long-term debt,
net |
|
188,372 |
|
|
|
181,565 |
|
Other noncurrent
liabilities: |
|
|
|
|
|
Liabilities from derivative contracts |
|
58,138 |
|
|
|
7,144 |
|
Asset retirement obligations |
|
11,686 |
|
|
|
11,896 |
|
Operating lease liabilities |
|
162 |
|
|
|
352 |
|
Other |
|
1,408 |
|
|
|
4,003 |
|
Commitments and
contingencies |
|
|
|
|
|
Stockholders'
equity: |
|
|
|
|
|
Common stock: 100,000,000
shares of $0.0001 par value authorized; |
|
|
|
|
|
16,337,910 and 16,273,913 shares issued and outstanding as of |
|
|
|
|
|
June 30, 2022 and December 31, 2021, respectively |
|
2 |
|
|
|
2 |
|
Additional paid-in
capital |
|
332,766 |
|
|
|
332,187 |
|
Retained earnings (accumulated
deficit) |
|
(348,181 |
) |
|
|
(268,484 |
) |
Total stockholders' equity |
|
(15,413 |
) |
|
|
63,705 |
|
Total liabilities and
stockholders' equity |
$ |
449,215 |
|
|
$ |
390,267 |
|
BATTALION OIL
CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS (Unaudited)(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
13,047 |
|
|
$ |
(33,929 |
) |
|
$ |
(79,697 |
) |
|
$ |
(67,304 |
) |
Depletion, depreciation and
accretion |
|
12,601 |
|
|
|
11,249 |
|
|
|
22,821 |
|
|
|
21,844 |
|
Stock-based compensation,
net |
|
473 |
|
|
|
485 |
|
|
|
857 |
|
|
|
1,079 |
|
Unrealized loss (gain) on
derivative contracts |
|
(12,837 |
) |
|
|
34,817 |
|
|
|
78,201 |
|
|
|
70,869 |
|
Amortization of deferred loan
costs |
|
908 |
|
|
|
— |
|
|
|
1,807 |
|
|
|
— |
|
(Gain) loss on sale of other
assets |
|
(96 |
) |
|
|
— |
|
|
|
(96 |
) |
|
|
— |
|
Reorganization items |
|
— |
|
|
|
— |
|
|
|
(744 |
) |
|
|
— |
|
Accrued settlements on
derivative contracts |
|
1,843 |
|
|
|
2,404 |
|
|
|
14,652 |
|
|
|
6,972 |
|
Change in fair value of Change
of Control Call Option |
|
(563 |
) |
|
|
— |
|
|
|
(2,595 |
) |
|
|
— |
|
Other income (expense) |
|
— |
|
|
|
(170 |
) |
|
|
— |
|
|
|
(287 |
) |
Cash flows from operations
before changes in working capital |
|
15,376 |
|
|
|
14,856 |
|
|
|
35,206 |
|
|
|
33,173 |
|
Changes in working
capital |
|
910 |
|
|
|
886 |
|
|
|
(6,873 |
) |
|
|
(4,073 |
) |
Net cash provided by (used in)
operating activities |
|
16,286 |
|
|
|
15,742 |
|
|
|
28,333 |
|
|
|
29,100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
|
|
Oil and natural gas capital
expenditures |
|
(35,693 |
) |
|
|
(23,801 |
) |
|
|
(51,377 |
) |
|
|
(37,593 |
) |
Proceeds received from sale of
oil and natural gas properties |
|
— |
|
|
|
(150 |
) |
|
|
— |
|
|
|
926 |
|
Other operating property and
equipment capital expenditures |
|
(545 |
) |
|
|
— |
|
|
|
(705 |
) |
|
|
— |
|
Proceeds received from sale of
other operating property and equipment |
|
96 |
|
|
|
— |
|
|
|
96 |
|
|
|
— |
|
Funds held in escrow and
other |
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
(2 |
) |
Net cash provided by (used in)
investing activities |
|
(36,142 |
) |
|
|
(23,950 |
) |
|
|
(51,986 |
) |
|
|
(36,669 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
Proceeds from borrowings |
|
20,000 |
|
|
|
66,000 |
|
|
|
20,000 |
|
|
|
82,000 |
|
Repayments of borrowings |
|
— |
|
|
|
(58,000 |
) |
|
|
(85 |
) |
|
|
(77,000 |
) |
Debt issuance costs |
|
— |
|
|
|
— |
|
|
|
(379 |
) |
|
|
— |
|
Other |
|
(6 |
) |
|
|
(5 |
) |
|
|
(467 |
) |
|
|
(268 |
) |
Net cash provided by (used in)
financing activities |
|
19,994 |
|
|
|
7,995 |
|
|
|
19,069 |
|
|
|
4,732 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash, cash equivalents and restricted
cash |
|
138 |
|
|
|
(213 |
) |
|
|
(4,584 |
) |
|
|
(2,837 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and
restricted cash at beginning of period |
|
43,637 |
|
|
|
1,671 |
|
|
|
48,359 |
|
|
|
4,295 |
|
Cash, cash equivalents and
restricted cash at end of period |
$ |
43,775 |
|
|
$ |
1,458 |
|
|
$ |
43,775 |
|
|
$ |
1,458 |
|
BATTALION OIL
CORPORATION SELECTED OPERATING DATA
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Production volumes: |
|
|
|
|
|
|
|
|
|
|
|
Crude oil (MBbls) |
|
674 |
|
|
|
805 |
|
|
|
1,344 |
|
|
|
1,524 |
|
Natural gas (MMcf) |
|
2,355 |
|
|
|
2,055 |
|
|
|
4,670 |
|
|
|
4,188 |
|
Natural gas liquids (MBbls) |
|
303 |
|
|
|
270 |
|
|
|
576 |
|
|
|
485 |
|
Total (MBoe) |
|
1,369 |
|
|
|
1,417 |
|
|
|
2,698 |
|
|
|
2,707 |
|
Average daily production (Boe/d) |
|
15,044 |
|
|
|
15,571 |
|
|
|
14,906 |
|
|
|
14,956 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average prices: |
|
|
|
|
|
|
|
|
|
|
|
Crude oil (per Bbl) |
$ |
109.71 |
|
|
$ |
64.52 |
|
|
$ |
101.54 |
|
|
$ |
61.16 |
|
Natural gas (per Mcf) |
|
6.27 |
|
|
|
2.59 |
|
|
|
5.06 |
|
|
|
3.44 |
|
Natural gas liquids (per Bbl) |
|
41.54 |
|
|
|
25.37 |
|
|
|
39.22 |
|
|
|
24.25 |
|
Total per Boe |
|
73.99 |
|
|
|
45.24 |
|
|
|
67.72 |
|
|
|
44.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash effect of derivative contracts: |
|
|
|
|
|
|
|
|
|
|
|
Crude oil (per Bbl) |
$ |
(58.03 |
) |
|
$ |
(22.55 |
) |
|
$ |
(52.35 |
) |
|
$ |
(18.13 |
) |
Natural gas (per Mcf) |
|
(2.39 |
) |
|
|
(0.06 |
) |
|
|
(1.54 |
) |
|
|
(0.07 |
) |
Natural gas liquids (per Bbl) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total per Boe |
|
(32.69 |
) |
|
|
(12.89 |
) |
|
|
(28.75 |
) |
|
|
(10.32 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Average prices computed after cash effect of settlement of
derivative contracts: |
|
|
|
|
|
|
|
|
|
|
|
Crude oil (per Bbl) |
$ |
51.68 |
|
|
$ |
41.97 |
|
|
$ |
49.19 |
|
|
$ |
43.03 |
|
Natural gas (per Mcf) |
|
3.88 |
|
|
|
2.53 |
|
|
|
3.52 |
|
|
|
3.37 |
|
Natural gas liquids (per Bbl) |
|
41.54 |
|
|
|
25.37 |
|
|
|
39.22 |
|
|
|
24.25 |
|
Total per Boe |
|
41.30 |
|
|
|
32.35 |
|
|
|
38.97 |
|
|
|
33.78 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average cost per Boe: |
|
|
|
|
|
|
|
|
|
|
|
Production: |
|
|
|
|
|
|
|
|
|
|
|
Lease operating |
$ |
8.70 |
|
|
$ |
7.18 |
|
|
$ |
8.69 |
|
|
$ |
7.25 |
|
Workover and other |
|
1.01 |
|
|
|
0.54 |
|
|
|
0.83 |
|
|
|
0.49 |
|
Taxes other than income |
|
3.92 |
|
|
|
2.06 |
|
|
|
3.83 |
|
|
|
2.25 |
|
Gathering and other |
|
11.59 |
|
|
|
10.11 |
|
|
|
11.54 |
|
|
|
10.16 |
|
General and administrative, as adjusted(1) |
|
2.90 |
|
|
|
2.69 |
|
|
|
3.09 |
|
|
|
2.95 |
|
Depletion |
|
9.07 |
|
|
|
7.77 |
|
|
|
8.33 |
|
|
|
7.89 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Represents general and administrative costs per Boe, adjusted
for items noted in the reconciliation below: |
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative: |
|
|
|
|
|
|
|
|
|
|
|
General and administrative, as reported |
$ |
3.36 |
|
|
$ |
2.84 |
|
|
$ |
3.55 |
|
|
$ |
3.27 |
|
Stock-based compensation: |
|
|
|
|
|
|
|
|
|
|
|
Non-cash |
|
(0.35 |
) |
|
|
(0.34 |
) |
|
|
(0.32 |
) |
|
|
(0.40 |
) |
Non-recurring charges and other: |
|
|
|
|
|
|
|
|
|
|
|
Cash |
|
(0.11 |
) |
|
|
0.19 |
|
|
|
(0.14 |
) |
|
|
0.08 |
|
General and administrative, as adjusted(2) |
$ |
2.90 |
|
|
$ |
2.69 |
|
|
$ |
3.09 |
|
|
$ |
2.95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating costs, as
reported |
$ |
28.58 |
|
|
$ |
22.73 |
|
|
$ |
28.44 |
|
|
$ |
23.42 |
|
Total adjusting items |
|
(0.46 |
) |
|
|
(0.15 |
) |
|
|
(0.46 |
) |
|
|
(0.32 |
) |
Total operating costs, as
adjusted(3) |
$ |
28.12 |
|
|
$ |
22.58 |
|
|
$ |
27.98 |
|
|
$ |
23.10 |
|
____________________________
(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 |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
As
Reported: |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss), as reported |
$ |
13,047 |
|
|
$ |
(33,929 |
) |
|
$ |
(79,697 |
) |
|
$ |
(67,304 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Impact of Selected
Items: |
|
|
|
|
|
|
|
|
|
|
|
Unrealized loss (gain) on
derivatives contracts: |
|
|
|
|
|
|
|
|
|
|
|
Crude oil |
$ |
(11,939 |
) |
|
$ |
31,591 |
|
|
$ |
70,962 |
|
|
$ |
66,402 |
|
Natural gas |
|
(898 |
) |
|
|
3,226 |
|
|
|
7,239 |
|
|
|
4,467 |
|
Total mark-to-market non-cash
charge |
|
(12,837 |
) |
|
|
34,817 |
|
|
|
78,201 |
|
|
|
70,869 |
|
Change in fair value of Change
of Control Call Option |
|
(562 |
) |
|
|
— |
|
|
|
(2,594 |
) |
|
|
— |
|
Rig termination and stacking
charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Non-recurring charges and
other |
|
149 |
|
|
|
(273 |
) |
|
|
366 |
|
|
|
(221 |
) |
Selected items, before income
taxes |
|
(13,250 |
) |
|
|
34,544 |
|
|
|
75,973 |
|
|
|
70,648 |
|
Income tax effect of selected
items |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Selected items, net of
tax |
|
(13,250 |
) |
|
|
34,544 |
|
|
|
75,973 |
|
|
|
70,648 |
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Adjusted: |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss), excluding
selected items(1) |
$ |
(203 |
) |
|
$ |
615 |
|
|
$ |
(3,724 |
) |
|
$ |
3,344 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) per
common share, as reported |
$ |
0.80 |
|
|
$ |
(2.09 |
) |
|
$ |
(4.88 |
) |
|
$ |
(4.14 |
) |
Impact of selected items |
|
(0.81 |
) |
|
|
2.13 |
|
|
|
4.65 |
|
|
|
4.35 |
|
Basic net income (loss) per
common share, excluding selected items(1) |
$ |
(0.01 |
) |
|
$ |
0.04 |
|
|
$ |
(0.23 |
) |
|
$ |
0.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income (loss) per
common share, as reported |
$ |
0.79 |
|
|
$ |
(2.09 |
) |
|
$ |
(4.88 |
) |
|
$ |
(4.14 |
) |
Impact of selected items |
|
(0.80 |
) |
|
|
2.13 |
|
|
|
4.65 |
|
|
|
4.35 |
|
Diluted net income (loss) per
common share, excluding selected items(1)(2) |
$ |
(0.01 |
) |
|
$ |
0.04 |
|
|
$ |
(0.23 |
) |
|
$ |
0.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in)
operating activities |
$ |
16,286 |
|
|
$ |
15,742 |
|
|
$ |
28,333 |
|
|
$ |
29,100 |
|
Changes in working
capital |
|
(910 |
) |
|
|
(886 |
) |
|
|
6,873 |
|
|
|
4,073 |
|
Cash flows from operations
before changes in working capital |
|
15,376 |
|
|
|
14,856 |
|
|
|
35,206 |
|
|
|
33,173 |
|
Cash components of selected
items |
|
(1,694 |
) |
|
|
(2,677 |
) |
|
|
(13,542 |
) |
|
|
(7,193 |
) |
Income tax effect of selected
items |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Cash flows from operations
before changes in working capital, adjusted for selected
items(1) |
$ |
13,682 |
|
|
$ |
12,179 |
|
|
$ |
21,664 |
|
|
$ |
25,980 |
|
____________________________
(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 and six
months ended June 30, 2022 were calculated based upon weighted
average diluted shares of 16.3 million shares, respectively, due to
the net income (loss) available to common stockholders, excluding
selected items. The impact of selected items for the three and six
months ended June 30, 2021 were calculated based upon weighted
average diluted shares of 16.4 million shares, 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 |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss), as reported |
$ |
13,047 |
|
|
$ |
(33,929 |
) |
|
$ |
(79,697 |
) |
|
$ |
(67,304 |
) |
Impact of adjusting
items: |
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
5,394 |
|
|
|
1,838 |
|
|
|
10,115 |
|
|
|
3,334 |
|
Depletion, depreciation and accretion |
|
12,601 |
|
|
|
11,249 |
|
|
|
22,821 |
|
|
|
21,844 |
|
Stock-based compensation |
|
473 |
|
|
|
485 |
|
|
|
857 |
|
|
|
1,079 |
|
Interest income |
|
(1 |
) |
|
|
(84 |
) |
|
|
(1 |
) |
|
|
(209 |
) |
Unrealized loss (gain) on derivatives contracts |
|
(12,837 |
) |
|
|
34,817 |
|
|
|
78,201 |
|
|
|
70,869 |
|
Change in fair value of Change of Control Call Option |
|
(562 |
) |
|
|
— |
|
|
|
(2,594 |
) |
|
|
— |
|
Non-recurring charges and other |
|
53 |
|
|
|
(275 |
) |
|
|
270 |
|
|
|
(277 |
) |
Adjusted EBITDA(1) |
$ |
18,168 |
|
|
$ |
14,101 |
|
|
$ |
29,972 |
|
|
$ |
29,386 |
|
____________________________
(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 |
|
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss), as reported |
$ |
13,047 |
|
|
$ |
(92,744 |
) |
|
$ |
25,935 |
|
|
$ |
13,052 |
|
Impact of adjusting
items: |
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
5,394 |
|
|
|
4,721 |
|
|
|
3,215 |
|
|
|
1,904 |
|
Depletion, depreciation and accretion |
|
12,601 |
|
|
|
10,220 |
|
|
|
12,679 |
|
|
|
10,885 |
|
Stock-based compensation |
|
473 |
|
|
|
384 |
|
|
|
450 |
|
|
|
481 |
|
Interest income |
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
|
|
(3 |
) |
Loss (gain) on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
122 |
|
|
|
(2,068 |
) |
Unrealized loss (gain) on derivatives contracts |
|
(12,837 |
) |
|
|
91,038 |
|
|
|
(21,332 |
) |
|
|
(1,816 |
) |
Change in fair value of Change of Control Call Option |
|
(562 |
) |
|
|
(2,032 |
) |
|
|
— |
|
|
|
— |
|
Non-recurring charges (credits) and other |
|
53 |
|
|
|
217 |
|
|
|
(718 |
) |
|
|
559 |
|
Adjusted EBITDA(1) |
$ |
18,168 |
|
|
$ |
11,804 |
|
|
$ |
20,350 |
|
|
$ |
22,994 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted LTM EBITDA(1) |
$ |
73,316 |
|
|
|
|
|
|
|
|
|
|
____________________________
(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 |
|
June 30, 2021 |
|
March 31, 2021 |
|
December 31, 2020 |
|
September 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss), as reported |
$ |
(33,929 |
) |
|
$ |
(33,375 |
) |
|
$ |
(63,757 |
) |
|
$ |
(153,125 |
) |
Impact of adjusting
items: |
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
1,838 |
|
|
|
1,496 |
|
|
|
1,853 |
|
|
|
1,964 |
|
Depletion, depreciation and accretion |
|
11,249 |
|
|
|
10,595 |
|
|
|
13,886 |
|
|
|
15,755 |
|
Full cost ceiling impairment |
|
— |
|
|
|
— |
|
|
|
26,702 |
|
|
|
128,336 |
|
Stock-based compensation |
|
485 |
|
|
|
594 |
|
|
|
785 |
|
|
|
620 |
|
Interest income |
|
(84 |
) |
|
|
(125 |
) |
|
|
(171 |
) |
|
|
(273 |
) |
Unrealized loss (gain) on derivatives contracts |
|
34,817 |
|
|
|
36,052 |
|
|
|
30,172 |
|
|
|
21,128 |
|
Non-recurring charges (credits) and other |
|
(275 |
) |
|
|
48 |
|
|
|
(658 |
) |
|
|
210 |
|
Adjusted EBITDA(1)(2) |
$ |
14,101 |
|
|
$ |
15,285 |
|
|
$ |
8,812 |
|
|
$ |
14,615 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted LTM EBITDA(1)(2) |
$ |
52,813 |
|
|
|
|
|
|
|
|
|
|
____________________________
(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 includes approximately $6.6 million of net
proceeds from hedge monetizations that occurred during the
period.
Battalion Oil (AMEX:BATL)
Graphique Historique de l'Action
De Mar 2024 à Avr 2024
Battalion Oil (AMEX:BATL)
Graphique Historique de l'Action
De Avr 2023 à Avr 2024