Battalion Oil Corporation (NYSE American: BATL, “Battalion” or the
“Company”) today announced financial and operating results for the
fourth quarter 2022.
Key Highlights
- Generated full year 2022 sales
volumes of 15,438 barrels of oil equivalent per day
(“Boe/d”)
- Year-end 2022 reserves of
approximately 92.0 million barrels of oil equivalent (“MMBoe”) with
a standardized measure of discounted future net cash flows of
approximately $1.5 billion
- Tenth well of 2022 capital program
put online in January 2023 with one of the strongest IP30’s of the
program
- Strengthened hedge book – weighted
average strike price on crude oil swaps of $69.17 in 2023, a 36%
increase over 2022 average
- Substantial progress on acid gas
treating facility with expectation of being mechanically complete
in early April – anticipate significant decrease in gas treating
costs in 2023
- Recently completed issuance of
preferred shares for $24.4 million of proceeds to enhance
liquidity
Management Comments
Richard Little, the Company’s CEO, commented,
“2022 was a year of transformation for Battalion. We entered the
year with our development program underway having recently
completed a strategic refinancing. The plan was simple: drive
production growth while remaining committed to capital discipline
and operational efficiency. We addressed the challenges we faced
including increases in service costs, scarcity in key supplies and
equipment, and issues with labor and service provider continuity to
close out 2022 within the guidance range on all operating metrics –
a testament to the exceptional work our team has done.”
“Our drilling program has underscored the
prolific nature and economic viability of our Wolfcamp and Bone
Spring resource, even at current oil prices. Our hedge book is
healthier, and it is driving improved realized pricing. Our acid
gas treating facility is expected to be mechanically complete in
early April and is anticipated to become fully operational in the
second quarter of 2023; this is expected to significantly reduce
gas processing and treating expenses. We intend to continue our
focus on improving operational efficiencies to drive meaningful
improvements in our operating margins.”
“Though we have a sizable inventory of high-performance drilling
locations, the vast majority of our acreage position is held by
production, giving us flexibility on how and when we develop the
acreage. As such, we are continuing to evaluate our
development program and will not be providing a 2023 capital budget
at this time.”
“As we move forward, we are prioritizing free
cash flow generation and the strengthening of our balance
sheet.”
Results of Operations
Average daily net production and total operating
revenue during the fourth quarter 2022 were 15,696 Boe/d (51% oil)
and $76.8 million, respectively, as compared to production and
revenue of 17,283 Boe/d (50% oil) and $84.5 million, respectively,
during the fourth quarter 2021. The decrease in revenues
year-over-year is primarily attributable to an approximate 1,587
Boe/d decrease in average daily production. Excluding the impact of
hedges, Battalion realized 100% of the average NYMEX oil price
during the fourth quarter of 2022; however, realized hedge losses
totaled approximately $18.2 million during the fourth quarter
2022.
Lease operating and workover expense was $9.89 per Boe in the
fourth quarter of 2022 and $8.34 per Boe in the fourth quarter of
2021. The increase in lease operating and workover expense per Boe
year-over-year is primarily attributable to an increase in workover
expenses as well as the decrease in average daily production during
the quarter. Gathering and other expense was $11.31 per Boe
in the fourth quarter 2022 as compared to $10.67 per Boe in the
fourth quarter of 2021. The increase was due primarily to the
decrease in average daily production during the quarter. General
and administrative expense was $2.46 per Boe in the fourth quarter
of 2022 and $1.99 per Boe in the fourth quarter of 2021. After
adjusting for selected items, Adjusted G&A was $1.87 per Boe in
the fourth quarter of 2022 compared to $2.03 per Boe in the fourth
quarter of 2021. The decrease in Adjusted G&A year-over-year
was primarily attributable to a decrease in employee-related
costs.
The Company reported a net loss to common
stockholders for the fourth quarter of 2022 of $7.7 million and a
net loss per diluted share of $0.47. After adjusting for selected
items, the Company reported an adjusted net loss to common
stockholders for the fourth quarter of 2022 of $2.6 million, or an
adjusted net loss of $0.16 per diluted share (see Reconciliation
for additional information). Adjusted EBITDA during the quarter
ended December 31, 2022 was $22.7 million as compared to $20.4
million during the quarter ended December 31, 2021 (see Adjusted
EBITDA Reconciliation table for additional information).
Liquidity and Balance Sheet
As of December 31, 2022, the Company had $235.2
million of indebtedness outstanding and approximately $1.4 million
of letters of credit outstanding. Total liquidity on December 31,
2022, made up of cash and cash equivalents, was $32.7 million.
In March 2023, the Company issued 25,000 shares
of redeemable convertible preferred stock to certain of its
existing equity shareholders and received approximately $24.4
million in net proceeds to improve liquidity and address concerns
around future covenant compliance. For further discussion on our
liquidity and balance sheet, refer to Management’s Discussion and
Analysis and Risk Factors in the Company’s Form 10-K.
2022 Proved Reserves
Battalion’s estimated total proved oil and natural gas reserves,
as prepared by our independent reserve engineering firm,
Netherland, Sewell & Associates, Inc., were 92.0 MMBoe (54%
oil, 50% developed) at December 31, 2022. Our reserves had a
standardized measure of discounted future cash flows of $1.5
billion based on SEC benchmark pricing of $94.14 per barrel for oil
and $6.36 per MMBtu for natural gas.
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, 2022, 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 |
|
Years Ended |
|
December 31, |
|
December 31, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues: |
|
|
|
|
|
|
|
|
|
|
|
Oil, natural gas and natural gas liquids sales: |
|
|
|
|
|
|
|
|
|
|
|
Oil |
$ |
60,816 |
|
|
$ |
60,284 |
|
|
$ |
267,690 |
|
|
$ |
213,512 |
|
Natural gas |
|
6,914 |
|
|
|
11,409 |
|
|
|
46,210 |
|
|
|
35,248 |
|
Natural gas liquids |
|
8,267 |
|
|
|
12,588 |
|
|
|
43,501 |
|
|
|
35,394 |
|
Total oil, natural gas and natural gas liquids sales |
|
75,997 |
|
|
|
84,281 |
|
|
|
357,401 |
|
|
|
284,154 |
|
Other |
|
805 |
|
|
|
224 |
|
|
|
1,663 |
|
|
|
1,051 |
|
Total operating revenues |
|
76,802 |
|
|
|
84,505 |
|
|
|
359,064 |
|
|
|
285,205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
Production: |
|
|
|
|
|
|
|
|
|
|
|
Lease operating |
|
12,397 |
|
|
|
12,362 |
|
|
|
48,095 |
|
|
|
43,977 |
|
Workover and other |
|
1,876 |
|
|
|
907 |
|
|
|
6,683 |
|
|
|
3,224 |
|
Taxes other than income |
|
2,547 |
|
|
|
3,126 |
|
|
|
18,483 |
|
|
|
12,312 |
|
Gathering and other |
|
16,330 |
|
|
|
16,960 |
|
|
|
64,117 |
|
|
|
60,396 |
|
General and administrative |
|
3,564 |
|
|
|
3,165 |
|
|
|
17,635 |
|
|
|
16,514 |
|
Depletion, depreciation and accretion |
|
15,479 |
|
|
|
12,679 |
|
|
|
51,915 |
|
|
|
45,408 |
|
Total operating expenses |
|
52,193 |
|
|
|
49,199 |
|
|
|
206,928 |
|
|
|
181,831 |
|
Income (loss) from
operations |
|
24,609 |
|
|
|
35,306 |
|
|
|
152,136 |
|
|
|
103,374 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses): |
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on derivative contracts |
|
(21,872 |
) |
|
|
(6,248 |
) |
|
|
(110,006 |
) |
|
|
(125,619 |
) |
Interest expense and other |
|
(10,389 |
) |
|
|
(3,001 |
) |
|
|
(23,591 |
) |
|
|
(8,018 |
) |
Gain (loss) on extinguishment of debt |
|
— |
|
|
|
(122 |
) |
|
|
— |
|
|
|
1,946 |
|
Total other income (expenses) |
|
(32,261 |
) |
|
|
(9,371 |
) |
|
|
(133,597 |
) |
|
|
(131,691 |
) |
Income (loss) before income
taxes |
|
(7,652 |
) |
|
|
25,935 |
|
|
|
18,539 |
|
|
|
(28,317 |
) |
Income tax benefit
(provision) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net income
(loss) |
$ |
(7,652 |
) |
|
|
25,935 |
|
|
$ |
18,539 |
|
|
$ |
(28,317 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share of common stock: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.47 |
) |
|
$ |
1.59 |
|
|
$ |
1.14 |
|
|
$ |
(1.74 |
) |
Diluted |
$ |
(0.47 |
) |
|
$ |
1.58 |
|
|
$ |
1.12 |
|
|
$ |
(1.74 |
) |
Weighted average
common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
16,345 |
|
|
|
16,274 |
|
|
|
16,331 |
|
|
|
16,261 |
|
Diluted |
|
16,345 |
|
|
|
16,448 |
|
|
|
16,510 |
|
|
|
16,261 |
|
BATTALION OIL
CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)(In thousands, except share and per
share amounts)
|
|
December 31, 2022 |
|
December 31, 2021 |
Current
assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
32,726 |
|
|
$ |
46,864 |
|
Accounts receivable, net |
|
37,974 |
|
|
|
36,806 |
|
Assets from derivative contracts |
|
16,244 |
|
|
|
1,383 |
|
Restricted cash |
|
90 |
|
|
|
1,495 |
|
Prepaids and other |
|
1,131 |
|
|
|
1,366 |
|
Total current assets |
|
88,165 |
|
|
|
87,914 |
|
Oil and natural gas
properties (full cost method): |
|
|
|
|
|
Evaluated |
|
713,585 |
|
|
|
569,886 |
|
Unevaluated |
|
62,621 |
|
|
|
64,305 |
|
Gross oil and natural gas properties |
|
776,206 |
|
|
|
634,191 |
|
Less - accumulated depletion |
|
(390,796 |
) |
|
|
(339,776 |
) |
Net oil and natural gas properties |
|
385,410 |
|
|
|
294,415 |
|
Other operating
property and equipment: |
|
|
|
|
|
Other operating property and equipment |
|
4,434 |
|
|
|
3,467 |
|
Less - accumulated depreciation |
|
(1,209 |
) |
|
|
(1,035 |
) |
Net other operating property and equipment |
|
3,225 |
|
|
|
2,432 |
|
Other noncurrent
assets: |
|
|
|
|
|
Assets from derivative contracts |
|
5,379 |
|
|
|
2,515 |
|
Operating lease right of use assets |
|
352 |
|
|
|
721 |
|
Other assets |
|
2,827 |
|
|
|
2,270 |
|
Total
assets |
$ |
485,358 |
|
|
$ |
390,267 |
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Accounts payable and accrued liabilities |
$ |
100,095 |
|
|
$ |
62,826 |
|
Liabilities from derivative contracts |
|
29,286 |
|
|
|
58,322 |
|
Current portion of long-term debt |
|
35,067 |
|
|
|
85 |
|
Operating lease liabilities |
|
352 |
|
|
|
369 |
|
Asset retirement obligations |
|
225 |
|
|
|
— |
|
Total current liabilities |
|
165,025 |
|
|
|
121,602 |
|
Long-term debt,
net |
|
182,676 |
|
|
|
181,565 |
|
Other noncurrent
liabilities: |
|
|
|
|
|
Liabilities from derivative contracts |
|
33,649 |
|
|
|
7,144 |
|
Asset retirement obligations |
|
15,244 |
|
|
|
11,896 |
|
Operating lease liabilities |
|
— |
|
|
|
352 |
|
Other |
|
4,136 |
|
|
|
4,003 |
|
Commitments and
contingencies |
|
|
|
|
|
Stockholders'
equity: |
|
|
|
|
|
Common stock: 100,000,000 shares of $0.0001 par value
authorized; |
|
|
|
|
|
16,344,815 and 16,273,913 shares issued and outstanding as of |
|
|
|
|
|
December 31, 2022 and 2021, respectively |
|
2 |
|
|
|
2 |
|
Additional paid-in capital |
|
334,571 |
|
|
|
332,187 |
|
Retained earnings (accumulated deficit) |
|
(249,945 |
) |
|
|
(268,484 |
) |
Total stockholders'
equity |
|
84,628 |
|
|
|
63,705 |
|
Total liabilities and
stockholders' equity |
$ |
485,358 |
|
|
$ |
390,267 |
|
BATTALION OIL
CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS (Unaudited)(In thousands)
|
|
Three Months Ended |
|
Years Ended |
|
December 31, |
|
December 31, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
(7,652 |
) |
|
$ |
25,935 |
|
|
$ |
18,539 |
|
|
$ |
(28,317 |
) |
Adjustments to reconcile net
income (loss) to net cash provided by (used |
|
|
|
|
|
|
|
|
|
|
|
in) operating activities: |
|
|
|
|
|
|
|
|
|
|
|
Depletion, depreciation and accretion |
|
15,479 |
|
|
|
12,679 |
|
|
|
51,915 |
|
|
|
45,408 |
|
Stock-based compensation, net |
|
670 |
|
|
|
450 |
|
|
|
2,210 |
|
|
|
2,010 |
|
Unrealized loss (gain) on derivative contracts |
|
3,655 |
|
|
|
(21,332 |
) |
|
|
(20,256 |
) |
|
|
47,721 |
|
Amortization/accretion of financing related costs |
|
2,722 |
|
|
|
379 |
|
|
|
5,448 |
|
|
|
379 |
|
Reorganization items, net |
|
— |
|
|
|
— |
|
|
|
(744 |
) |
|
|
— |
|
Loss (gain) on extinguishment of debt |
|
— |
|
|
|
122 |
|
|
|
— |
|
|
|
(1,946 |
) |
Accrued settlements on derivative contracts |
|
(3,191 |
) |
|
|
261 |
|
|
|
4,302 |
|
|
|
7,030 |
|
Change in fair value of embedded derivative liability |
|
1,224 |
|
|
|
— |
|
|
|
(1,819 |
) |
|
|
— |
|
Other expense (income) |
|
51 |
|
|
|
(338 |
) |
|
|
(77 |
) |
|
|
(567 |
) |
Cash flow from operations
before changes in working capital |
|
12,958 |
|
|
|
18,156 |
|
|
|
59,518 |
|
|
|
71,718 |
|
Changes in working capital |
|
12,029 |
|
|
|
3,284 |
|
|
|
19,283 |
|
|
|
(3,146 |
) |
Net cash provided by (used in)
operating activities |
|
24,987 |
|
|
|
21,440 |
|
|
|
78,801 |
|
|
|
68,572 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
|
|
Oil and natural gas capital expenditures |
|
(38,467 |
) |
|
|
(5,353 |
) |
|
|
(125,465 |
) |
|
|
(52,557 |
) |
Proceeds received from sales of oil and natural gas assets |
|
331 |
|
|
|
— |
|
|
|
332 |
|
|
|
947 |
|
Other operating property and equipment capital expenditures |
|
(211 |
) |
|
|
(364 |
) |
|
|
(1,160 |
) |
|
|
(371 |
) |
Other |
|
(3 |
) |
|
|
52 |
|
|
|
163 |
|
|
|
68 |
|
Net cash provided by (used in)
investing activities |
|
(38,350 |
) |
|
|
(5,665 |
) |
|
|
(126,130 |
) |
|
|
(51,913 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
Proceeds from borrowings |
|
15,078 |
|
|
|
229,000 |
|
|
|
35,200 |
|
|
|
374,000 |
|
Repayments of borrowings |
|
(10 |
) |
|
|
(184,064 |
) |
|
|
(95 |
) |
|
|
(332,085 |
) |
Payment of deferred financing costs |
|
(2,508 |
) |
|
|
(14,220 |
) |
|
|
(2,887 |
) |
|
|
(14,220 |
) |
Other |
|
60 |
|
|
|
— |
|
|
|
(432 |
) |
|
|
(290 |
) |
Net cash provided by (used in)
financing activities |
|
12,620 |
|
|
|
30,716 |
|
|
|
31,786 |
|
|
|
27,405 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash, cash equivalents and restricted
cash |
|
(743 |
) |
|
|
46,491 |
|
|
|
(15,543 |
) |
|
|
44,064 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and
restricted cash at beginning of period |
|
33,559 |
|
|
|
1,868 |
|
|
|
48,359 |
|
|
|
4,295 |
|
Cash, cash equivalents and
restricted cash at end of period |
$ |
32,816 |
|
|
$ |
48,359 |
|
|
$ |
32,816 |
|
|
$ |
48,359 |
|
BATTALION OIL
CORPORATIONSELECTED OPERATING DATA
(Unaudited)
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
Production volumes: |
|
|
|
|
|
|
|
|
|
|
|
Crude oil (MBbls) |
|
740 |
|
|
|
800 |
|
|
|
2,837 |
|
|
|
3,196 |
|
Natural gas (MMcf) |
|
2,315 |
|
|
|
2,670 |
|
|
|
9,337 |
|
|
|
9,447 |
|
Natural gas liquids (MBbls) |
|
318 |
|
|
|
345 |
|
|
|
1,242 |
|
|
|
1,157 |
|
Total (MBoe) |
|
1,444 |
|
|
|
1,590 |
|
|
|
5,635 |
|
|
|
5,928 |
|
Average daily production (Boe/d) |
|
15,696 |
|
|
|
17,283 |
|
|
|
15,438 |
|
|
|
16,241 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average prices: |
|
|
|
|
|
|
|
|
|
|
|
Crude oil (per Bbl) |
$ |
82.18 |
|
|
$ |
75.36 |
|
|
$ |
94.36 |
|
|
$ |
66.81 |
|
Natural gas (per Mcf) |
|
2.99 |
|
|
|
4.27 |
|
|
|
4.95 |
|
|
|
3.73 |
|
Natural gas liquids (per Bbl) |
|
26.00 |
|
|
|
36.49 |
|
|
|
35.02 |
|
|
|
30.59 |
|
Total per Boe |
|
52.63 |
|
|
|
53.01 |
|
|
|
63.43 |
|
|
|
47.93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash effect of derivative
contracts: |
|
|
|
|
|
|
|
|
|
|
|
Crude oil (per Bbl) |
$ |
(24.73 |
) |
|
$ |
(31.06 |
) |
|
$ |
(40.82 |
) |
|
$ |
(23.02 |
) |
Natural gas (per Mcf) |
|
0.04 |
|
|
|
(1.02 |
) |
|
|
(1.55 |
) |
|
|
(0.46 |
) |
Natural gas liquids (per Bbl) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total per Boe |
|
(12.62 |
) |
|
|
(17.35 |
) |
|
|
(23.12 |
) |
|
|
(13.14 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Average prices computed after
cash effect of settlement of derivative contracts: |
|
|
|
|
|
|
|
|
|
|
|
Crude oil (per Bbl) |
$ |
57.45 |
|
|
$ |
44.30 |
|
|
$ |
53.54 |
|
|
$ |
43.79 |
|
Natural gas (per Mcf) |
|
3.03 |
|
|
|
3.25 |
|
|
|
3.40 |
|
|
|
3.27 |
|
Natural gas liquids (per Bbl) |
|
26.00 |
|
|
|
36.49 |
|
|
|
35.02 |
|
|
|
30.59 |
|
Total per Boe |
|
40.01 |
|
|
|
35.66 |
|
|
|
40.31 |
|
|
|
34.79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average cost per Boe: |
|
|
|
|
|
|
|
|
|
|
|
Production: |
|
|
|
|
|
|
|
|
|
|
|
Lease operating |
$ |
8.59 |
|
|
$ |
7.77 |
|
|
$ |
8.54 |
|
|
$ |
7.42 |
|
Workover and other |
|
1.30 |
|
|
|
0.57 |
|
|
|
1.19 |
|
|
|
0.54 |
|
Taxes other than income |
|
1.76 |
|
|
|
1.97 |
|
|
|
3.28 |
|
|
|
2.08 |
|
Gathering and other |
|
11.31 |
|
|
|
10.67 |
|
|
|
11.38 |
|
|
|
10.19 |
|
General and administrative, as adjusted(1) |
|
1.87 |
|
|
|
2.03 |
|
|
|
2.52 |
|
|
|
2.48 |
|
Depletion |
|
10.49 |
|
|
|
7.89 |
|
|
|
9.05 |
|
|
|
7.53 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Represents
gathering and other and general and administrative costs per Boe,
adjusted for items noted in the reconciliation below: |
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative: |
|
|
|
|
|
|
|
|
|
|
|
General and administrative, as reported |
$ |
2.46 |
|
|
$ |
1.99 |
|
|
$ |
3.13 |
|
|
$ |
2.79 |
|
Stock-based compensation: |
|
|
|
|
|
|
|
|
|
|
|
Non-cash |
|
(0.46 |
) |
|
|
(0.28 |
) |
|
|
(0.39 |
) |
|
|
(0.34 |
) |
Non-recurring (charges) credits and other: |
|
|
|
|
|
|
|
|
|
|
|
Cash |
|
(0.13 |
) |
|
|
0.32 |
|
|
|
(0.22 |
) |
|
|
0.03 |
|
General and administrative, as adjusted(2) |
$ |
1.87 |
|
|
$ |
2.03 |
|
|
$ |
2.52 |
|
|
$ |
2.48 |
|
Total operating costs, as
reported |
$ |
25.42 |
|
|
$ |
22.97 |
|
|
$ |
27.52 |
|
|
$ |
23.02 |
|
Total adjusting items |
|
(0.59 |
) |
|
|
0.04 |
|
|
|
(0.61 |
) |
|
|
(0.31 |
) |
Total operating costs, as
adjusted(3) |
$ |
24.83 |
|
|
$ |
23.01 |
|
|
$ |
26.91 |
|
|
$ |
22.71 |
|
|
|
|
(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
CORPORATIONRECONCILIATION
(Unaudited)(In thousands, except per share
amounts)
|
|
Three Months Ended |
|
Years Ended |
|
December 31, |
|
December 31, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
As
Reported: |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss), as reported |
$ |
(7,652 |
) |
|
$ |
25,935 |
|
|
$ |
18,539 |
|
|
$ |
(28,317 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Impact of Selected
Items: |
|
|
|
|
|
|
|
|
|
|
|
Unrealized loss (gain) on
derivatives contracts: |
|
|
|
|
|
|
|
|
|
|
|
Crude oil |
$ |
18,156 |
|
|
$ |
(13,525 |
) |
|
$ |
(10,730 |
) |
|
$ |
45,461 |
|
Natural gas |
|
(14,501 |
) |
|
|
(7,807 |
) |
|
|
(9,526 |
) |
|
|
2,260 |
|
Total mark-to-market non-cash
charge |
|
3,655 |
|
|
|
(21,332 |
) |
|
|
(20,256 |
) |
|
|
47,721 |
|
Loss (gain) on extinguishment
of debt |
|
— |
|
|
|
122 |
|
|
|
— |
|
|
|
(1,946 |
) |
Change in fair value of
embedded derivative liability |
|
1,224 |
|
|
|
(213 |
) |
|
|
(1,819 |
) |
|
|
(213 |
) |
Non-recurring charges
(credits) |
|
194 |
|
|
|
(502 |
) |
|
|
1,230 |
|
|
|
(155 |
) |
Selected items, before income
taxes |
|
5,073 |
|
|
|
(21,925 |
) |
|
|
(20,845 |
) |
|
|
45,407 |
|
Income tax effect of selected
items |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Selected items, net of
tax |
$ |
5,073 |
|
|
$ |
(21,925 |
) |
|
$ |
(20,845 |
) |
|
$ |
45,407 |
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Adjusted: |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss), as adjusted
(1) |
$ |
(2,579 |
) |
|
$ |
4,010 |
|
|
$ |
(2,306 |
) |
|
$ |
17,090 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income (loss) per
common share, as reported |
$ |
(0.47 |
) |
|
$ |
1.58 |
|
|
$ |
1.12 |
|
|
$ |
(1.74 |
) |
Impact of selected items |
|
0.31 |
|
|
|
(1.34 |
) |
|
|
(1.26 |
) |
|
|
2.78 |
|
Diluted net income (loss) per
common share, excluding selected items (1)(2) |
$ |
(0.16 |
) |
|
$ |
0.24 |
|
|
$ |
(0.14 |
) |
|
$ |
1.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in)
operating activities |
$ |
24,987 |
|
|
$ |
21,440 |
|
|
$ |
78,801 |
|
|
$ |
68,572 |
|
Changes in working
capital |
|
(12,029 |
) |
|
|
(3,284 |
) |
|
|
(19,283 |
) |
|
|
3,146 |
|
Cash flow from operations
before changes in working capital |
|
12,958 |
|
|
|
18,156 |
|
|
|
59,518 |
|
|
|
71,718 |
|
Cash components of selected
items |
|
11,989 |
|
|
|
(1,213 |
) |
|
|
6,276 |
|
|
|
(7,635 |
) |
Income tax effect of selected
items |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Cash flows from operations
before changes in working capital, adjusted for selected items
(1)(2) |
$ |
24,947 |
|
|
$ |
16,943 |
|
|
$ |
65,794 |
|
|
$ |
64,083 |
|
|
|
|
(1) |
Net income (loss) 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 December
31, 2022 and 2021 were calculated based upon weighted average
diluted shares of 16.3 million and 16.4 million shares,
respectively, due to the net income (loss) available to common
stockholders, excluding selected items. The impact of selected
items for the years ended December 31, 2022 and 2021 were
calculated based upon weighted average diluted shares of 16.3 and
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 December 31, |
|
Years Ended December 31, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss), as reported |
$ |
(7,652 |
) |
|
$ |
25,935 |
|
|
$ |
18,539 |
|
|
$ |
(28,317 |
) |
Impact of adjusting
items: |
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
9,378 |
|
|
|
3,215 |
|
|
|
25,725 |
|
|
|
8,453 |
|
Depletion, depreciation and accretion |
|
15,479 |
|
|
|
12,679 |
|
|
|
51,915 |
|
|
|
45,408 |
|
Stock-based compensation |
|
670 |
|
|
|
450 |
|
|
|
2,210 |
|
|
|
2,010 |
|
Interest income |
|
(227 |
) |
|
|
(1 |
) |
|
|
(369 |
) |
|
|
(213 |
) |
Loss (gain) on extinguishment of debt |
|
— |
|
|
|
122 |
|
|
|
— |
|
|
|
(1,946 |
) |
Unrealized loss (gain) on derivatives contracts |
|
3,655 |
|
|
|
(21,332 |
) |
|
|
(20,256 |
) |
|
|
47,721 |
|
Change in fair value of embedded derivative liability |
|
1,224 |
|
|
|
(213 |
) |
|
|
(1,819 |
) |
|
|
(213 |
) |
Non-recurring charges (credits) and other |
|
194 |
|
|
|
(505 |
) |
|
|
1,061 |
|
|
|
(173 |
) |
Adjusted EBITDA(1) |
$ |
22,721 |
|
|
$ |
20,350 |
|
|
$ |
77,006 |
|
|
$ |
72,730 |
|
|
|
|
(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 MonthsEndedDecember
31, 2022 |
|
Three
MonthsEndedSeptember 30,
2022 |
|
Three MonthsEndedJune 30,
2022 |
|
Three MonthsEndedMarch
31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss), as reported |
$ |
(7,652 |
) |
|
$ |
105,888 |
|
|
$ |
13,047 |
|
|
$ |
(92,744 |
) |
Impact of adjusting
items: |
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
9,378 |
|
|
|
6,232 |
|
|
|
5,394 |
|
|
|
4,721 |
|
Depletion, depreciation and accretion |
|
15,479 |
|
|
|
13,615 |
|
|
|
12,601 |
|
|
|
10,220 |
|
Stock-based compensation |
|
670 |
|
|
|
683 |
|
|
|
473 |
|
|
|
384 |
|
Interest income |
|
(227 |
) |
|
|
(141 |
) |
|
|
(1 |
) |
|
|
— |
|
Unrealized loss (gain) on derivatives contracts |
|
3,655 |
|
|
|
(102,112 |
) |
|
|
(12,837 |
) |
|
|
91,038 |
|
Change in fair value of embedded derivative liability |
|
1,224 |
|
|
|
(449 |
) |
|
|
(562 |
) |
|
|
(2,032 |
) |
Non-recurring charges (credits) and other |
|
194 |
|
|
|
597 |
|
|
|
53 |
|
|
|
217 |
|
Adjusted EBITDA(1) |
$ |
22,721 |
|
|
$ |
24,313 |
|
|
$ |
18,168 |
|
|
$ |
11,804 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted LTM EBITDA(1) |
$ |
77,006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 MonthsEndedDecember
31, 2021 |
|
Three
MonthsEndedSeptember 30,
2021 |
|
Three MonthsEndedJune 30,
2021 |
|
Three MonthsEndedMarch
31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss), as reported |
$ |
25,935 |
|
|
$ |
13,052 |
|
|
$ |
(33,929 |
) |
|
$ |
(33,375 |
) |
Impact of adjusting
items: |
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
3,215 |
|
|
|
1,904 |
|
|
|
1,838 |
|
|
|
1,496 |
|
Depletion, depreciation and accretion |
|
12,679 |
|
|
|
10,885 |
|
|
|
11,249 |
|
|
|
10,595 |
|
Stock-based compensation |
|
450 |
|
|
|
481 |
|
|
|
485 |
|
|
|
594 |
|
Interest income |
|
(1 |
) |
|
|
(3 |
) |
|
|
(84 |
) |
|
|
(125 |
) |
Loss (gain) on extinguishment of debt |
|
122 |
|
|
|
(2,068 |
) |
|
|
— |
|
|
|
— |
|
Unrealized loss (gain) on derivatives contracts |
|
(21,332 |
) |
|
|
(1,816 |
) |
|
|
34,817 |
|
|
|
36,052 |
|
Change in fair value of embedded derivative liability |
|
(213 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Non-recurring charges (credits) and other |
|
(505 |
) |
|
|
559 |
|
|
|
(275 |
) |
|
|
48 |
|
Adjusted EBITDA(1) |
$ |
20,350 |
|
|
$ |
22,994 |
|
|
$ |
14,101 |
|
|
$ |
15,285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted LTM EBITDA(1) |
$ |
72,730 |
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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. |
Battalion Oil (AMEX:BATL)
Graphique Historique de l'Action
De Mai 2023 à Juin 2023
Battalion Oil (AMEX:BATL)
Graphique Historique de l'Action
De Juin 2022 à Juin 2023