Battalion Oil Corporation (NYSE American: BATL, “Battalion” or the
“Company”) today announced financial and operating results for the
first quarter of 2023.
Key Highlights
- Substantial progress on acid gas
treating facility as we ramp up gas delivery toward bringing the
facility fully online
- Generated first quarter 2023 sales
volumes of 16,200 barrels of oil equivalent per day (“Boe/d”)
- Continued excellent results from
our most recent wells
- Completed corporate initiative to
reduce general and administrative costs in April
- Generated net income of $22.8
million and Adjusted EBITDA of $26.1 million in the first quarter
of 2023
- Per unit operating cost metrics
down year over year for the first quarter as we continue to more
than offset inflationary forces
Management Comments
The Company has begun testing procedures and
initial processing for its previously announced acid gas injection
(“AGI”) project. The facility has been ramping up its
throughput processing over the last few weeks. When this project is
fully online, the Company will benefit from savings of up to $2.5MM
per month through reduced treating fees and operational
efficiencies at the Monument Draw central production facilities.
These savings not only represent significant bottom line financial
improvement, but also substantiate Monument Draw’s ability to
compete with top tier acreage in the Wolfcamp and Bone
Spring.
Initial work on the second acid gas injection
well has begun; providing significant optionality to the Company
through the ability to expand to as much as 100 MMCFD inlet
treating capacity. Danny Rohling, Chief Operating Officer,
commented, “The Brazos Amine Treatment Facility will be a huge
milestone for Battalion and we’re excited by its progress as our
latest wells continue to outperform expectations. To marry
those production results with a substantially reduced cost
structure paves the way for strong cashflow from our PDP wells, and
a very economic development for our 200+ primary locations.”
The latest two wells are furthest East in the
program – after the first three full calendar months online, the
Fortress well’s cumulative production is over 106,000 BOE, while
the Parnassus well has produced over 125,000 BOE. “Since
coming online, the performance of these wells continue to prove
that the wells in Monument Draw buck the industry perception of the
Eastern side of the Delaware Basin. Because our acreage is
wholly-contiguous and in a few production reporting blocks, public
data aggregated by industry platforms does not accurately represent
our stellar well performance. We and our neighboring operators
continue to put top tier wells online in the Wolfcamp, Bone Spring
and deeper Woodford/Barnett benches,” continued Mr. Rohling, “We
are looking forward to a continuation of development across our
40,000+ net acres in Monument Draw, West Quito Draw and Hackberry
Draw.”
The Company has also substantially completed its
corporate initiative of reducing overhead costs. In April, the
Company executed a 44% reduction of its corporate office workforce.
The Company has also completed a thorough review of all non-staff
general and administrative (“G&A”) expenses and is executing
reductions where appropriate. The combination of these efforts will
reduce overall cash G&A run rate by up to 40% as compared to
2022 actuals.
Matt Steele, Chief Executive Officer, commented,
“Since I arrived at Battalion, the Company has been keenly focused
on operational excellence and reduction of our cost structure. When
the AGI facility is fully online, we will greatly reduce our
operating costs. The corporate cost reductions are immediately
accretive. In short, the actions we have taken continue to position
the Company for success. As we move forward, we are continuing to
prioritize free cash flow generation and the strengthening of our
balance sheet along with meeting our CDC drilling obligations in
our Monument Draw area. I am very proud of our talented team and
thank our Board of Directors for their guidance and support.”
Results of Operations
Average daily net production and total operating
revenue during the first quarter of 2023 were 16,200 Boe/d (50%
oil) and $65.1 million, respectively, as compared to production and
revenue of 14,767 Boe/d (50% oil) and $81.6 million, respectively,
during the first quarter of 2022. The decrease in revenues in the
first quarter of 2023 as compared to the first quarter of 2022 is
primarily attributable to an approximate $17.18 decrease in average
realized prices (excluding the impact of hedges), partially offset
by an increase in average production volumes over the periods.
Excluding the impact of hedges, Battalion realized 95% of the
average NYMEX oil price during the first quarter of 2023. Realized
hedge losses totaled approximately $1.5 million during the first
quarter 2023.
Lease operating and workover expense was $8.94
per Boe in the first quarter of 2023 versus $9.32 per Boe in the
first quarter of 2022. The decrease in lease operating and workover
expense per Boe year-over-year is primarily attributable to an
increase in average daily production as a large portion of our
lease operating expenses are fixed costs. Gathering and other
expense was $11.33 per Boe in the first quarter of 2023 versus
$11.48 per Boe in the first quarter of 2022. The decrease was due
primarily to streamlining the Valkyrie facility and increasing
throughput to our lower cost gas takeaway option. General and
administrative expense was $3.53 per Boe in the first quarter of
2023 and $3.75 per Boe in the first quarter of 2022. After
adjusting for selected items, Adjusted G&A was $3.24 per Boe in
the first quarter of 2023 compared to $3.30 per Boe in the first
quarter of 2022.
The Company reported net income for the first
quarter of 2023 of $22.8 million and a net income per diluted share
available to common stockholders of $1.28. After adjusting for
selected items, the Company reported an adjusted net loss available
to common stockholders for the first quarter of 2023 of $0.7
million, or an adjusted net loss of $0.04 per diluted common share
(see Reconciliation for additional information). Adjusted EBITDA
during the quarter ended March 31, 2023 was $26.1 million as
compared to $11.8 million during the quarter ended March 31, 2022
(see Adjusted EBITDA Reconciliation table for additional
information).
Liquidity and Balance Sheet
As of March 31, 2023, the Company had $230.3
million of indebtedness outstanding and approximately $1.4 million
of letters of credit outstanding. Total liquidity on March 31,
2023, made up of cash and cash equivalents, was $23.2 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 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.
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
Kristen McWattersExecutive Vice President, Chief Financial
Officer & Treasurer713-210-7517
|
BATTALION OIL CORPORATION CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share amounts) |
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
2023 |
|
|
2022 |
|
Operating
revenues: |
|
|
|
|
|
|
Oil, natural gas and natural gas liquids sales: |
|
|
|
|
|
|
Oil |
|
$ |
54,215 |
|
|
$ |
62,524 |
|
Natural gas |
|
|
2,900 |
|
|
|
8,881 |
|
Natural gas liquids |
|
|
7,158 |
|
|
|
10,003 |
|
Total oil, natural gas and natural gas liquids sales |
|
|
64,273 |
|
|
|
81,408 |
|
Other |
|
|
869 |
|
|
|
194 |
|
Total operating revenues |
|
|
65,142 |
|
|
|
81,602 |
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
Production: |
|
|
|
|
|
|
Lease operating |
|
|
11,691 |
|
|
|
11,524 |
|
Workover and other |
|
|
1,335 |
|
|
|
865 |
|
Taxes other than income |
|
|
3,190 |
|
|
|
4,951 |
|
Gathering and other |
|
|
16,517 |
|
|
|
15,255 |
|
General and administrative |
|
|
5,137 |
|
|
|
4,985 |
|
Depletion, depreciation and accretion |
|
|
16,148 |
|
|
|
10,220 |
|
Total operating expenses |
|
|
54,018 |
|
|
|
47,800 |
|
Income (loss) from
operations |
|
|
11,124 |
|
|
|
33,802 |
|
|
|
|
|
|
|
|
Other income
(expenses): |
|
|
|
|
|
|
Net gain (loss) on derivative contracts |
|
|
19,473 |
|
|
|
(123,858 |
) |
Interest expense and other |
|
|
(7,786 |
) |
|
|
(2,688 |
) |
Total other income (expenses) |
|
|
11,687 |
|
|
|
(126,546 |
) |
Income (loss) before income taxes |
|
|
22,811 |
|
|
|
(92,744 |
) |
Income tax benefit (provision) |
|
|
— |
|
|
|
— |
|
Net income
(loss) |
|
$ |
22,811 |
|
|
$ |
(92,744 |
) |
|
|
|
|
|
|
|
Net income (loss) per
share of common stock: |
|
|
|
|
|
|
Basic |
|
$ |
1.29 |
|
|
$ |
(5.69 |
) |
Diluted |
|
$ |
1.28 |
|
|
$ |
(5.69 |
) |
Weighted average
common shares outstanding: |
|
|
|
|
|
|
Basic |
|
|
16,393 |
|
|
|
16,303 |
|
Diluted |
|
|
16,535 |
|
|
|
16,303 |
|
|
BATTALION OIL CORPORATION CONDENSED
CONSOLIDATED BALANCE SHEETS (Unaudited) (In
thousands, except share and per share amounts) |
|
|
|
March 31, 2023 |
|
December 31, 2022 |
Current
assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
23,245 |
|
|
$ |
32,726 |
|
Accounts receivable, net |
|
|
32,456 |
|
|
|
37,974 |
|
Assets from derivative contracts |
|
|
15,103 |
|
|
|
16,244 |
|
Restricted cash |
|
|
90 |
|
|
|
90 |
|
Prepaids and other |
|
|
1,028 |
|
|
|
1,131 |
|
Total current assets |
|
|
71,922 |
|
|
|
88,165 |
|
Oil and natural gas
properties (full cost method): |
|
|
|
|
|
|
Evaluated |
|
|
723,957 |
|
|
|
713,585 |
|
Unevaluated |
|
|
62,651 |
|
|
|
62,621 |
|
Gross oil and natural gas properties |
|
|
786,608 |
|
|
|
776,206 |
|
Less - accumulated depletion |
|
|
(406,603 |
) |
|
|
(390,796 |
) |
Net oil and natural gas properties |
|
|
380,005 |
|
|
|
385,410 |
|
Other operating
property and equipment: |
|
|
|
|
|
|
Other operating property and equipment |
|
|
4,659 |
|
|
|
4,434 |
|
Less - accumulated depreciation |
|
|
(1,319 |
) |
|
|
(1,209 |
) |
Net other operating property and equipment |
|
|
3,340 |
|
|
|
3,225 |
|
Other noncurrent
assets: |
|
|
|
|
|
|
Assets from derivative contracts |
|
|
5,434 |
|
|
|
5,379 |
|
Operating lease right of use assets |
|
|
258 |
|
|
|
352 |
|
Other assets |
|
|
3,023 |
|
|
|
2,827 |
|
Total
assets |
|
$ |
463,982 |
|
|
$ |
485,358 |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
58,643 |
|
|
$ |
100,095 |
|
Liabilities from derivative contracts |
|
|
18,008 |
|
|
|
29,286 |
|
Current portion of long-term debt |
|
|
40,106 |
|
|
|
35,067 |
|
Operating lease liabilities |
|
|
258 |
|
|
|
352 |
|
Asset retirement obligations |
|
|
225 |
|
|
|
225 |
|
Total current liabilities |
|
|
117,240 |
|
|
|
165,025 |
|
Long-term debt,
net |
|
|
174,536 |
|
|
|
182,676 |
|
Other noncurrent
liabilities: |
|
|
|
|
|
|
Liabilities from derivative contracts |
|
|
22,838 |
|
|
|
33,649 |
|
Asset retirement obligations |
|
|
15,441 |
|
|
|
15,244 |
|
Operating lease liabilities |
|
|
— |
|
|
|
— |
|
Deferred income taxes |
|
|
— |
|
|
|
— |
|
Other |
|
|
3,074 |
|
|
|
4,136 |
|
Commitments and
contingencies |
|
|
|
|
|
|
Temporary
equity: |
|
|
|
|
|
|
Series A redeemable
convertible preferred stock: 25,000 shares of $.0001 |
|
|
25,033 |
|
|
|
— |
|
par value authorized, issued and outstanding as of March 31,
2023 |
|
|
|
|
|
|
Stockholders'
equity: |
|
|
|
|
|
|
Common stock: 100,000,000
shares of $0.0001 par value authorized; |
|
|
|
|
|
|
16,456,563 and 16,344,815 shares issued and outstanding as of |
|
|
|
|
|
|
March 31, 2023 and December 31, 2022, respectively |
|
|
2 |
|
|
|
2 |
|
Additional paid-in
capital |
|
|
332,952 |
|
|
|
334,571 |
|
Retained earnings (accumulated
deficit) |
|
|
(227,134 |
) |
|
|
(249,945 |
) |
Total stockholders' equity |
|
|
105,820 |
|
|
|
84,628 |
|
Total liabilities,
temporary equity and stockholders' equity |
|
$ |
463,982 |
|
|
$ |
485,358 |
|
|
BATTALION OIL CORPORATION CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands) |
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
2023 |
|
|
2022 |
|
Cash flows from
operating activities: |
|
|
|
|
|
|
Net income (loss) |
|
$ |
22,811 |
|
|
$ |
(92,744 |
) |
Adjustments to reconcile net
income (loss) to net cash |
|
|
|
|
|
|
provided by (used in)
operating activities: |
|
|
|
|
|
|
Depletion, depreciation and
accretion |
|
|
16,148 |
|
|
|
10,220 |
|
Stock-based compensation,
net |
|
|
227 |
|
|
|
384 |
|
Unrealized loss (gain) on
derivative contracts |
|
|
(21,004 |
) |
|
|
91,038 |
|
Amortization/accretion of
financing related costs |
|
|
1,798 |
|
|
|
899 |
|
Reorganization items |
|
|
— |
|
|
|
(744 |
) |
Accrued settlements on
derivative contracts |
|
|
(555 |
) |
|
|
12,809 |
|
Change in fair value of
embedded derivative liability |
|
|
(1,062 |
) |
|
|
(2,032 |
) |
Other income (expense) |
|
|
11 |
|
|
|
— |
|
Cash flows from operations
before changes in working capital |
|
|
18,374 |
|
|
|
19,830 |
|
Changes in working
capital |
|
|
(19,063 |
) |
|
|
(7,783 |
) |
Net cash provided by (used in)
operating activities |
|
|
(689 |
) |
|
|
12,047 |
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
Oil and natural gas capital
expenditures |
|
|
(28,611 |
) |
|
|
(15,684 |
) |
Proceeds received from sale of
oil and natural gas assets |
|
|
1,189 |
|
|
|
— |
|
Other operating property and
equipment capital expenditures |
|
|
(269 |
) |
|
|
— |
|
Other |
|
|
(5 |
) |
|
|
(160 |
) |
Net cash provided by (used in)
investing activities |
|
|
(27,696 |
) |
|
|
(15,844 |
) |
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Repayments of borrowings |
|
|
(5,017 |
) |
|
|
(85 |
) |
Payment of deferred debt
financing costs |
|
|
— |
|
|
|
(379 |
) |
Proceeds from issuance of
preferred stock |
|
|
24,375 |
|
|
|
— |
|
Other |
|
|
(454 |
) |
|
|
(461 |
) |
Net cash provided by (used in)
financing activities |
|
|
18,904 |
|
|
|
(925 |
) |
|
|
|
|
|
|
|
Net increase
(decrease) in cash, cash equivalents and restricted
cash |
|
|
(9,481 |
) |
|
|
(4,722 |
) |
|
|
|
|
|
|
|
Cash, cash equivalents and
restricted cash at beginning of period |
|
|
32,816 |
|
|
|
48,359 |
|
Cash, cash equivalents and
restricted cash at end of period |
|
$ |
23,335 |
|
|
$ |
43,637 |
|
|
BATTALION OIL CORPORATION SELECTED
OPERATING DATA (Unaudited) |
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
2023 |
|
|
2022 |
|
Production volumes: |
|
|
|
|
|
|
Crude oil (MBbls) |
|
|
730 |
|
|
|
670 |
|
Natural gas (MMcf) |
|
|
2,407 |
|
|
|
2,315 |
|
Natural gas liquids (MBbls) |
|
|
327 |
|
|
|
273 |
|
Total (MBoe) |
|
|
1,458 |
|
|
|
1,329 |
|
Average daily production (Boe/d) |
|
|
16,200 |
|
|
|
14,767 |
|
|
|
|
|
|
|
|
Average prices: |
|
|
|
|
|
|
Crude oil (per Bbl) |
|
$ |
74.27 |
|
|
$ |
93.32 |
|
Natural gas (per Mcf) |
|
|
1.20 |
|
|
|
3.84 |
|
Natural gas liquids (per Bbl) |
|
|
21.89 |
|
|
|
36.64 |
|
Total per Boe |
|
|
44.08 |
|
|
|
61.26 |
|
|
|
|
|
|
|
|
Cash effect of derivative contracts: |
|
|
|
|
|
|
Crude oil (per Bbl) |
|
$ |
(5.01 |
) |
|
$ |
(46.64 |
) |
Natural gas (per Mcf) |
|
|
0.88 |
|
|
|
(0.68 |
) |
Natural gas liquids (per Bbl) |
|
|
— |
|
|
|
— |
|
Total per Boe |
|
|
(1.05 |
) |
|
|
(24.70 |
) |
|
|
|
|
|
|
|
Average prices computed after cash effect of settlement of
derivative contracts: |
|
|
|
|
|
|
Crude oil (per Bbl) |
|
$ |
69.26 |
|
|
$ |
46.68 |
|
Natural gas (per Mcf) |
|
|
2.08 |
|
|
|
3.16 |
|
Natural gas liquids (per Bbl) |
|
|
21.89 |
|
|
|
36.64 |
|
Total per Boe |
|
|
43.03 |
|
|
|
36.56 |
|
|
|
|
|
|
|
|
Average cost per Boe: |
|
|
|
|
|
|
Production: |
|
|
|
|
|
|
Lease operating |
|
$ |
8.02 |
|
|
$ |
8.67 |
|
Workover and other |
|
|
0.92 |
|
|
|
0.65 |
|
Taxes other than income |
|
|
2.19 |
|
|
|
3.73 |
|
Gathering and other |
|
|
11.33 |
|
|
|
11.48 |
|
General and administrative, as adjusted (1) |
|
|
3.24 |
|
|
|
3.30 |
|
Depletion |
|
|
10.84 |
|
|
|
7.57 |
|
|
|
|
|
|
|
|
(1) Represents
general and administrative costs per Boe, adjusted for items noted
in the reconciliation below: |
|
|
|
|
|
|
|
General and
administrative: |
|
|
|
|
|
|
General and administrative, as reported |
|
$ |
3.53 |
|
|
$ |
3.75 |
|
Stock-based compensation: |
|
|
|
|
|
|
Non-cash |
|
|
(0.16 |
) |
|
|
(0.29 |
) |
Non-recurring charges and other: |
|
|
|
|
|
|
Cash |
|
|
(0.13 |
) |
|
|
(0.16 |
) |
General and administrative, as adjusted(2) |
|
$ |
3.24 |
|
|
$ |
3.30 |
|
|
|
|
|
|
|
|
Total operating costs, as
reported |
|
$ |
25.99 |
|
|
$ |
28.28 |
|
Total adjusting items |
|
|
(0.29 |
) |
|
|
(0.45 |
) |
Total operating costs, as
adjusted(3) |
|
$ |
25.70 |
|
|
$ |
27.83 |
|
____________________ |
(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 |
|
|
March 31, |
|
|
2023 |
|
|
2022 |
|
As
Reported: |
|
|
|
|
|
|
Net income (loss) available to common stockholders – diluted
(1) |
|
$ |
21,200 |
|
|
$ |
(92,744 |
) |
|
|
|
|
|
|
|
Impact of Selected
Items: |
|
|
|
|
|
|
Unrealized loss (gain) on
derivatives contracts: |
|
|
|
|
|
|
Crude oil |
|
$ |
(19,690 |
) |
|
$ |
82,901 |
|
Natural gas |
|
|
(1,314 |
) |
|
|
8,137 |
|
Total mark-to-market non-cash
charge |
|
|
(21,004 |
) |
|
|
91,038 |
|
Change in fair value of
embedded derivative liability |
|
|
(1,062 |
) |
|
|
(2,032 |
) |
Non-recurring charges |
|
|
183 |
|
|
|
217 |
|
Selected items, before income
taxes |
|
|
(21,883 |
) |
|
|
89,223 |
|
Income tax effect of selected
items |
|
|
— |
|
|
|
— |
|
Selected items, net of
tax |
|
|
(21,883 |
) |
|
|
89,223 |
|
|
|
|
|
|
|
|
Net income (loss) available to
common stockholders, as adjusted (2) |
|
$ |
(683 |
) |
|
$ |
(3,521 |
) |
|
|
|
|
|
|
|
Diluted net income (loss) per
common share, as reported |
|
$ |
1.28 |
|
|
$ |
(5.69 |
) |
Impact of selected items |
|
|
(1.32 |
) |
|
|
5.47 |
|
Diluted net income (loss) per
common share, excluding selected items (2)(3) |
|
$ |
(0.04 |
) |
|
$ |
(0.22 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in)
operating activities |
|
$ |
(689 |
) |
|
$ |
12,047 |
|
Changes in working
capital |
|
|
19,063 |
|
|
|
7,783 |
|
Cash flows from operations
before changes in working capital |
|
|
18,374 |
|
|
|
19,830 |
|
Cash components of selected
items |
|
|
738 |
|
|
|
(11,848 |
) |
Income tax effect of selected
items |
|
|
— |
|
|
|
— |
|
Cash flows from operations
before changes in working capital, adjusted for selected items
(1) |
|
$ |
19,112 |
|
|
$ |
7,982 |
|
____________________ |
(1) |
Amount reflects net income (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 12, Earnings Per Share in our Form 10-Q
for the quarter ended March 31, 2023. |
(2) |
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. |
(3) |
The impact of selected items for the three months ended March 31,
2023 and 2022 were calculated based upon weighted average diluted
shares of 16.4 million and 16.3 million shares, respectively, due
to the net income (loss) available to common stockholders,
excluding selected items. |
|
BATTALION OIL CORPORATION ADJUSTED EBITDA
RECONCILIATION (Unaudited) (In
thousands) |
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
Net income (loss), as reported |
|
$ |
22,811 |
|
|
$ |
(92,744 |
) |
Impact of adjusting
items: |
|
|
|
|
|
|
Interest expense |
|
|
9,009 |
|
|
|
4,721 |
|
Depletion, depreciation and accretion |
|
|
16,148 |
|
|
|
10,220 |
|
Stock-based compensation |
|
|
227 |
|
|
|
384 |
|
Interest income |
|
|
(191 |
) |
|
|
- |
|
Unrealized loss (gain) on derivatives contracts |
|
|
(21,004 |
) |
|
|
91,038 |
|
Change in fair value of embedded derivative liability |
|
|
(1,062 |
) |
|
|
(2,032 |
) |
Non-recurring charges and other |
|
|
152 |
|
|
|
217 |
|
Adjusted EBITDA(1) |
|
$ |
26,090 |
|
|
$ |
11,804 |
|
____________________ |
(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 CORPORATION ADJUSTED EBITDA
RECONCILIATION (Unaudited) (In
thousands) |
|
|
|
|
|
Three MonthsEndedMarch
31, 2023 |
|
Three MonthsEndedDecember
31, 2022 |
|
Three
MonthsEndedSeptember 30,
2022 |
|
Three MonthsEndedJune 30,
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss), as reported |
|
$ |
22,811 |
|
|
$ |
(7,652 |
) |
|
|
105,888 |
|
|
|
13,047 |
|
|
Impact of adjusting
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
9,009 |
|
|
|
9,378 |
|
|
|
6,232 |
|
|
|
5,394 |
|
|
Depletion, depreciation and accretion |
|
|
16,148 |
|
|
|
15,479 |
|
|
|
13,615 |
|
|
|
12,601 |
|
|
Stock-based compensation |
|
|
227 |
|
|
|
670 |
|
|
|
683 |
|
|
|
473 |
|
|
Interest income |
|
|
(191 |
) |
|
|
(227 |
) |
|
|
(141 |
) |
|
|
(1 |
) |
|
Unrealized loss (gain) on derivatives contracts |
|
|
(21,004 |
) |
|
|
3,655 |
|
|
|
(102,112 |
) |
|
|
(12,837 |
) |
|
Change in fair value of embedded derivative liability |
|
|
(1,062 |
) |
|
|
1,224 |
|
|
|
(449 |
) |
|
|
(562 |
) |
|
Non-recurring charges (credits) and other |
|
|
152 |
|
|
|
194 |
|
|
|
597 |
|
|
|
53 |
|
|
Adjusted EBITDA(1) |
|
$ |
26,090 |
|
|
$ |
22,721 |
|
|
$ |
24,313 |
|
|
$ |
18,168 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted LTM EBITDA(1) |
|
$ |
91,292 |
|
|
|
|
|
|
|
|
|
|
|
____________________ |
(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 CORPORATION ADJUSTED EBITDA
RECONCILIATION (Unaudited) (In
thousands) |
|
|
|
|
|
Three MonthsEndedMarch
31, 2022 |
|
Three MonthsEndedDecember
31, 2021 |
|
Three
MonthsEndedSeptember 30,
2021 |
|
Three MonthsEndedJune 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 embedded derivative liability |
|
|
(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 (AMEX:BATL)
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