Battalion Oil Corporation (NYSE American: BATL, “Battalion” or the
“Company”) today announced financial and operating results for the
first quarter of 2024.
Key Highlights
- Previously announced AGI project
online in Q1 2024 and achieved new record of 32 MMcf/d of
throughput
- Drilled and completed two wells in
Monument Draw in Q1 2024
- Generated first quarter 2024 sales
volumes of 12,989 barrels of oil equivalent per day (“Boe/d”)
- Executed a $20.0 million preferred
equity raise in March 2024 and an additional $20.0 million
preferred equity raise in May 2024 to support drilling program and
debt reduction
- Continuing strategic alternatives
initiative and are working toward closing our previously announced
merger agreement with Fury Resources
Management Comments
During the first quarter 2024, the previously
announced two well Glacier pad came online and began producing
exceptional quantities of oil and gas. These wells came online
below cost budget, above projected type curve, with substantial
pressure support and 30-day IP’s over 1,950 Boe/d and 1,750 Boe/d,
respectively. Two additional wells (Rio Bravo pad) were drilled to
total depth and completed. These wells are now flowing back. The
drilling rig has finished drilling an additional two-well pad
(Vermejo pad) in Monument Draw. All operations have been favorable
to plan from both a capital and timing perspective.
During the first quarter 2024, the acid gas
injection (“AGI”) project restarted operations and began taking gas
from the Company with approximately 326 MMcf being treated at the
AGI facility and approximately 266 MMcf of sweet gas being returned
to the Company for sales to its midstream partner. The Company has
continued to increase volume sent to the AGI facility. As the AGI
facility continues to ramp to full capacity, the Company expects to
save up to $2.0 million per month in gas treating costs.
Results of Operations
Average daily net production and total operating
revenue during the first quarter of 2024 were 12,989 Boe/d (48%
oil) and $49.9 million, respectively, as compared to production and
revenue of 16,200 Boe/d (50% oil) and $65.1 million, respectively,
during the first quarter of 2023. The decrease in revenues in the
first quarter of 2024 as compared to the first quarter of 2023 is
attributable to an approximate 3,211 Boe/d decrease in average
daily production and a $2.17 decrease in average realized prices
(excluding the impact of hedges). Excluding the impact of hedges,
Battalion realized 97.3% of the average NYMEX oil price during the
first quarter of 2024. Realized hedge losses totaled approximately
$4.4 million during the first quarter 2024.
Lease operating and workover expense was $10.55
per Boe in the first quarter of 2024 versus $8.94 per Boe in the
first quarter of 2023. The increase in lease operating and workover
expense per Boe year-over-year is primarily a result of an
inflationary market increase in maintenance, power and chemical
costs combined with a decrease in average daily production.
Gathering and other expense was $14.62 per Boe in the first quarter
of 2024 versus $11.33 per Boe in the first quarter of 2023. The
increases in gathering and other expenses per Boe are primarily
related to midstream disruptions and plant curtailments as well as
an increased percentage of total production requiring H2S treatment
and inflationary impacts on costs associated with our own hydrogen
sulfide treating plant. General and administrative expenses were
$3.44 per Boe in the first quarter of 2024 compared to $3.53 per
Boe in the first quarter of 2023. The decrease in general and
administrative expense is primarily attributable to a decrease in
payroll and benefits in connection with the headcount reduction in
2023 compared with the prior year period partially offset by an
increase in audit, legal and transaction costs associated with the
potential merger with Fury Resources.
For the first quarter of 2024, the Company
reported a net loss available to common stockholders of $36.8
million and a net loss of $2.24 per share available to common
stockholders. After adjusting for selected items, the Company
reported an adjusted diluted net loss available to common
stockholders for the first quarter of 2024 of $17.1 million, or an
adjusted diluted net loss of $1.04 per common share (see
Reconciliation for additional information). Adjusted EBITDA during
the quarter ended March 31, 2024 was $9.4 million as compared to
$26.1 million during the quarter ended March 31, 2023 (see Adjusted
EBITDA Reconciliation table for additional information).
Liquidity and Balance Sheet
On March 27, 2024, 20,000 shares of preferred equity remaining
under a support letter obtained in November 2023 were sold for
proceeds of $19.5 million, net of discount.
As of March 31, 2024, the Company had $190.0 million of
indebtedness outstanding and approximately $0.3 million of letters
of credit outstanding. Total liquidity on March 31, 2024, made up
of cash and cash equivalents, was $48.9 million.
On May 13, 2024, 20,000 shares of preferred equity were sold for
proceeds of $19.5 million, net of discount. On May 14, 2024, the
Company used $17.3 million of the proceeds from the sale of the
preferred equity to pay down debt, resulting in $172.7 million of
indebtedness outstanding and approximately $0.3 million of letters
of credit outstanding.
For further discussion on our liquidity and
balance sheet, as well as recent developments, refer to
Management’s Discussion and Analysis and Risk Factors in the
Company’s Form 10-K.
Important Information for Investors and
Stockholders
This communication is being made in respect of
the proposed transaction involving the Company and Fury Resources,
Inc., a Delaware corporation. In connection with the proposed
transaction, the Company intends to file, or has filed, the
relevant materials with the U.S. Securities and Exchange Commission
(“SEC”), including a proxy statement on Schedule
14A and a transaction statement on Schedule 13e-3
(the “Schedule 13e-3”). Promptly after filing
its definitive proxy statement with the SEC, the Company will mail
the definitive proxy statement and a proxy card to each stockholder
of the Company entitled to vote at the special meeting relating to
the proposed transaction. This communication is not a substitute
for the proxy statement, the Schedule 13e-3 or any other document
that the Company has or may file with the SEC or send to its
stockholders in connection with the proposed transaction. The
relevant materials filed by the Company will be made available to
the Company’s investors and stockholders at no expense to them and
copies may be obtained free of charge on the Company’s website at
www.battalionoil.com. In addition, all of those materials will be
available at no charge on the SEC’s website at www.sec.gov.
Investors and stockholders of the Company are urged to read the
proxy statement, the Schedule 13e-3 and the other relevant
materials as they become available before making any voting or
investment decision with respect to the proposed transaction
because they contain important information about the Company and
the proposed transaction.
Participants in
Solicitation
The Company and its directors, executive
officers, other members of its management and employees may be
deemed to be participants in the solicitation of proxies of the
Company stockholders in connection with the proposed transaction
under SEC rules. Investors and stockholders may obtain more
detailed information regarding the names, affiliations and
interests of the Company’s executive officers and directors in the
solicitation by reading the Company’s Annual Report on
Form 10-K, for the fiscal year ended December 31, 2023,
and the proxy statement, the Schedule 13e-3 and other relevant
materials that will be, or have been, filed with the SEC in
connection with the proposed transaction as they become available.
Information concerning the interests of the Company’s participants
in the solicitation, which may, in some cases, be different than
those of the Company’s stockholders generally, will be set forth in
the proxy statement relating to the proposed transaction and the
Schedule 13e-3, as they become available.
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, 2023, and other
filings submitted by the Company to the 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
Matthew B. SteeleChief Executive Officer & Principal
Financial Officer832-538-0300
BATTALION OIL
CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited)(In thousands, except per
share amounts)
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
2024 |
|
2023 |
Operating
revenues: |
|
|
|
|
|
|
Oil, natural gas and natural gas liquids sales: |
|
|
|
|
|
|
Oil |
|
$ |
42,429 |
|
|
$ |
54,215 |
|
Natural gas |
|
|
2,047 |
|
|
|
2,900 |
|
Natural gas liquids |
|
|
5,056 |
|
|
|
7,158 |
|
Total oil, natural gas and natural gas liquids sales |
|
|
49,532 |
|
|
|
64,273 |
|
Other |
|
|
338 |
|
|
|
869 |
|
Total operating revenues |
|
|
49,870 |
|
|
|
65,142 |
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
Production: |
|
|
|
|
|
|
Lease operating |
|
|
11,586 |
|
|
|
11,691 |
|
Workover and other |
|
|
888 |
|
|
|
1,335 |
|
Taxes other than income |
|
|
2,991 |
|
|
|
3,190 |
|
Gathering and other |
|
|
17,286 |
|
|
|
16,517 |
|
General and administrative |
|
|
4,071 |
|
|
|
5,137 |
|
Depletion, depreciation and accretion |
|
|
13,025 |
|
|
|
16,148 |
|
Total operating expenses |
|
|
49,847 |
|
|
|
54,018 |
|
Income from
operations |
|
|
23 |
|
|
|
11,124 |
|
|
|
|
|
|
|
|
Other income
(expenses): |
|
|
|
|
|
|
Net (loss) gain on derivative contracts |
|
|
(24,187 |
) |
|
|
19,473 |
|
Interest expense and other |
|
|
(7,039 |
) |
|
|
(7,786 |
) |
Total other (expenses) income |
|
|
(31,226 |
) |
|
|
11,687 |
|
(Loss) income before income taxes |
|
|
(31,203 |
) |
|
|
22,811 |
|
Income tax benefit (provision) |
|
|
— |
|
|
|
— |
|
Net (loss)
income |
|
$ |
(31,203 |
) |
|
$ |
22,811 |
|
Series A preferred dividends |
|
|
(5,632 |
) |
|
|
(1,492 |
) |
Net (loss) income
available to common stockholders |
|
$ |
(36,835 |
) |
|
$ |
21,319 |
|
|
|
|
|
|
|
|
Net (loss) income per
share of common stock available to common
stockholders: |
|
|
|
|
|
|
Basic |
|
$ |
(2.24 |
) |
|
$ |
1.29 |
|
Diluted |
|
$ |
(2.24 |
) |
|
$ |
1.28 |
|
Weighted average
common shares outstanding: |
|
|
|
|
|
|
Basic |
|
|
16,457 |
|
|
|
16,393 |
|
Diluted |
|
|
16,457 |
|
|
|
16,535 |
|
|
|
|
|
|
|
|
|
|
BATTALION OIL
CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)(In thousands, except share and per
share amounts)
|
|
|
|
|
|
|
|
|
March 31, 2024 |
|
December 31, 2023 |
Current
assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
48,941 |
|
|
$ |
57,529 |
|
Accounts receivable, net |
|
|
25,987 |
|
|
|
23,021 |
|
Assets from derivative contracts |
|
|
7,633 |
|
|
|
8,992 |
|
Restricted cash |
|
|
91 |
|
|
|
90 |
|
Prepaids and other |
|
|
919 |
|
|
|
907 |
|
Total current assets |
|
|
83,571 |
|
|
|
90,539 |
|
Oil and natural gas
properties (full cost method): |
|
|
|
|
|
|
Evaluated |
|
|
776,504 |
|
|
|
755,482 |
|
Unevaluated |
|
|
58,909 |
|
|
|
58,909 |
|
Gross oil and natural gas properties |
|
|
835,413 |
|
|
|
814,391 |
|
Less: accumulated depletion |
|
|
(458,604 |
) |
|
|
(445,975 |
) |
Net oil and natural gas properties |
|
|
376,809 |
|
|
|
368,416 |
|
Other operating
property and equipment: |
|
|
|
|
|
|
Other operating property and equipment |
|
|
4,648 |
|
|
|
4,640 |
|
Less: accumulated depreciation |
|
|
(1,979 |
) |
|
|
(1,817 |
) |
Net other operating property and equipment |
|
|
2,669 |
|
|
|
2,823 |
|
Other noncurrent
assets: |
|
|
|
|
|
|
Assets from derivative contracts |
|
|
3,898 |
|
|
|
4,877 |
|
Operating lease right of use assets |
|
|
890 |
|
|
|
1,027 |
|
Other assets |
|
|
20,780 |
|
|
|
17,656 |
|
Total
assets |
|
$ |
488,617 |
|
|
$ |
485,338 |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
63,117 |
|
|
$ |
66,525 |
|
Liabilities from derivative contracts |
|
|
28,764 |
|
|
|
17,191 |
|
Current portion of long-term debt |
|
|
55,106 |
|
|
|
50,106 |
|
Operating lease liabilities |
|
|
614 |
|
|
|
594 |
|
Total current liabilities |
|
|
147,601 |
|
|
|
134,416 |
|
Long-term debt,
net |
|
|
126,821 |
|
|
|
140,276 |
|
Other noncurrent
liabilities: |
|
|
|
|
|
|
Liabilities from derivative contracts |
|
|
21,907 |
|
|
|
16,058 |
|
Asset retirement obligations |
|
|
17,866 |
|
|
|
17,458 |
|
Operating lease liabilities |
|
|
329 |
|
|
|
490 |
|
Other |
|
|
11,156 |
|
|
|
2,084 |
|
Commitments and
contingencies |
|
|
|
|
|
|
Temporary
equity: |
|
|
|
|
|
|
Series A redeemable
convertible preferred stock: 118,000 shares and 98,000 shares |
|
|
131,624 |
|
|
|
106,535 |
|
of $0.0001 par value authorized, issued and outstanding as of March
31, 2024 |
|
|
|
|
|
|
Stockholders'
equity: |
|
|
|
|
|
|
Common stock: 100,000,000
shares of $0.0001 par value authorized; |
|
|
|
|
|
|
16,456,563 shares issued and outstanding as of March 31, 2024
and |
|
|
|
|
|
|
and December 31, 2023, respectively |
|
|
2 |
|
|
|
2 |
|
Additional paid-in
capital |
|
|
315,507 |
|
|
|
321,012 |
|
Accumulated deficit |
|
|
(284,196 |
) |
|
|
(252,993 |
) |
Total stockholders'
equity |
|
|
31,313 |
|
|
|
68,021 |
|
Total liabilities,
temporary equity and stockholders' equity |
|
$ |
488,617 |
|
|
$ |
485,338 |
|
|
|
|
|
|
|
|
|
|
BATTALION OIL
CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS (Unaudited)(In thousands)
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
2024 |
|
2023 |
Cash flows from
operating activities: |
|
|
|
|
|
|
Net (loss) income |
|
$ |
(31,203 |
) |
|
$ |
22,811 |
|
Adjustments to reconcile net
(loss) income to net cash |
|
|
|
|
|
|
provided by operating
activities: |
|
|
|
|
|
|
Depletion, depreciation and
accretion |
|
|
13,025 |
|
|
|
16,148 |
|
Stock-based compensation,
net |
|
|
99 |
|
|
|
227 |
|
Unrealized loss (gain) on
derivative contracts |
|
|
19,761 |
|
|
|
(21,004 |
) |
Amortization/accretion of
financing related costs |
|
|
1,701 |
|
|
|
1,798 |
|
Accrued settlements on
derivative contracts |
|
|
1,433 |
|
|
|
(555 |
) |
Change in fair value of
embedded derivative liability |
|
|
(928 |
) |
|
|
(1,062 |
) |
Other |
|
|
270 |
|
|
|
11 |
|
Cash flows from operations
before changes in working capital |
|
|
4,158 |
|
|
|
18,374 |
|
Changes in working
capital |
|
|
(242 |
) |
|
|
(19,063 |
) |
Net cash provided by (used in)
operating activities |
|
|
3,916 |
|
|
|
(689 |
) |
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
Oil and natural gas capital
expenditures |
|
|
(24,599 |
) |
|
|
(28,611 |
) |
Proceeds received from sale of
oil and natural gas assets |
|
|
— |
|
|
|
1,189 |
|
Contract asset |
|
|
(7,235 |
) |
|
|
— |
|
Other operating property and
equipment capital expenditures |
|
|
(8 |
) |
|
|
(269 |
) |
Other |
|
|
(6 |
) |
|
|
(5 |
) |
Net cash used in investing
activities |
|
|
(31,848 |
) |
|
|
(27,696 |
) |
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
Repayments of borrowings |
|
|
(10,026 |
) |
|
|
(5,017 |
) |
Payment of debt financing
costs |
|
|
(129 |
) |
|
|
— |
|
Proceeds from issuance of
preferred stock |
|
|
19,500 |
|
|
|
24,375 |
|
Merger deposit |
|
|
10,000 |
|
|
|
— |
|
Other |
|
|
— |
|
|
|
(454 |
) |
Net cash provided by financing
activities |
|
|
19,345 |
|
|
|
18,904 |
|
|
|
|
|
|
|
|
Net decrease in cash,
cash equivalents and restricted cash |
|
|
(8,587 |
) |
|
|
(9,481 |
) |
|
|
|
|
|
|
|
Cash, cash equivalents and
restricted cash at beginning of period |
|
|
57,619 |
|
|
|
32,816 |
|
Cash, cash equivalents and
restricted cash at end of period |
|
$ |
49,032 |
|
|
$ |
23,335 |
|
|
|
|
|
|
|
|
|
|
BATTALION OIL
CORPORATIONSELECTED OPERATING DATA
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
2024 |
|
2023 |
Production volumes: |
|
|
|
|
|
|
Crude oil (MBbls) |
|
|
566 |
|
|
|
730 |
|
Natural gas (MMcf) |
|
|
2,180 |
|
|
|
2,407 |
|
Natural gas liquids (MBbls) |
|
|
253 |
|
|
|
327 |
|
Total (MBoe) |
|
|
1,182 |
|
|
|
1,458 |
|
Average daily production (Boe/d) |
|
|
12,989 |
|
|
|
16,200 |
|
|
|
|
|
|
|
|
Average prices: |
|
|
|
|
|
|
Crude oil (per Bbl) |
|
$ |
74.96 |
|
|
$ |
74.27 |
|
Natural gas (per Mcf) |
|
|
0.94 |
|
|
|
1.20 |
|
Natural gas liquids (per Bbl) |
|
|
19.98 |
|
|
|
21.89 |
|
Total per Boe |
|
|
41.91 |
|
|
|
44.08 |
|
|
|
|
|
|
|
|
Cash effect of derivative contracts: |
|
|
|
|
|
|
Crude oil (per Bbl) |
|
$ |
(12.36 |
) |
|
$ |
(5.01 |
) |
Natural gas (per Mcf) |
|
|
1.18 |
|
|
|
0.88 |
|
Natural gas liquids (per Bbl) |
|
|
— |
|
|
|
— |
|
Total per Boe |
|
|
(3.74 |
) |
|
|
(1.05 |
) |
|
|
|
|
|
|
|
Average prices computed after cash effect of settlement of
derivative contracts: |
|
|
|
|
|
|
Crude oil (per Bbl) |
|
$ |
62.60 |
|
|
$ |
69.26 |
|
Natural gas (per Mcf) |
|
|
2.12 |
|
|
|
2.08 |
|
Natural gas liquids (per Bbl) |
|
|
19.98 |
|
|
|
21.89 |
|
Total per Boe |
|
|
38.17 |
|
|
|
43.03 |
|
|
|
|
|
|
|
|
Average cost per Boe: |
|
|
|
|
|
|
Production: |
|
|
|
|
|
|
Lease operating |
|
$ |
9.80 |
|
|
$ |
8.02 |
|
Workover and other |
|
|
0.75 |
|
|
|
0.92 |
|
Taxes other than income |
|
|
2.53 |
|
|
|
2.19 |
|
Gathering and other |
|
|
14.62 |
|
|
|
11.33 |
|
General and administrative, as adjusted (1) |
|
|
2.57 |
|
|
|
3.24 |
|
Depletion |
|
|
10.68 |
|
|
|
10.84 |
|
|
|
|
|
|
|
|
(1) Represents
general and administrative costs per Boe, adjusted for items noted
in the reconciliation below: |
|
|
|
|
|
|
|
General and
administrative: |
|
|
|
|
|
|
General and administrative, as reported |
|
$ |
3.44 |
|
|
$ |
3.53 |
|
Stock-based compensation: |
|
|
|
|
|
|
Non-cash |
|
|
(0.08 |
) |
|
|
(0.16 |
) |
Non-recurring charges and other: |
|
|
|
|
|
|
Cash |
|
|
(0.79 |
) |
|
|
(0.13 |
) |
General and administrative, as adjusted(2) |
|
$ |
2.57 |
|
|
$ |
3.24 |
|
|
|
|
|
|
|
|
Total operating costs, as
reported |
|
$ |
31.14 |
|
|
$ |
25.99 |
|
Total adjusting items |
|
|
(0.87 |
) |
|
|
(0.29 |
) |
Total operating costs, as
adjusted(3) |
|
$ |
30.27 |
|
|
$ |
25.70 |
|
|
|
|
(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 |
|
|
March 31, |
|
|
2024 |
|
2023 |
As
Reported: |
|
|
|
|
|
|
Net (loss) income available to common stockholders - diluted
(1) |
|
$ |
(36,835 |
) |
|
$ |
21,200 |
|
|
|
|
|
|
|
|
Impact of Selected
Items: |
|
|
|
|
|
|
Unrealized loss (gain) on
derivatives contracts: |
|
|
|
|
|
|
Crude oil |
|
$ |
21,417 |
|
|
$ |
(19,690 |
) |
Natural gas |
|
|
(1,656 |
) |
|
|
(1,314 |
) |
Total mark-to-market non-cash
charge |
|
|
19,761 |
|
|
|
(21,004 |
) |
Change in fair value of
embedded derivative liability |
|
|
(928 |
) |
|
|
(1,062 |
) |
Non-recurring charges |
|
|
937 |
|
|
|
183 |
|
Selected items, before income
taxes |
|
|
19,770 |
|
|
|
(21,883 |
) |
Income tax effect of selected
items |
|
|
— |
|
|
|
— |
|
Selected items, net of
tax |
|
|
19,770 |
|
|
|
(21,883 |
) |
|
|
|
|
|
|
|
Net loss available to common
stockholders, as adjusted (2) |
|
$ |
(17,065 |
) |
|
$ |
(683 |
) |
|
|
|
|
|
|
|
Diluted net (loss) income per
common share, as reported |
|
$ |
(2.24 |
) |
|
$ |
1.28 |
|
Impact of selected items |
|
|
1.20 |
|
|
|
(1.32 |
) |
Diluted net loss per common
share, excluding selected items (2)(3) |
|
$ |
(1.04 |
) |
|
$ |
(0.04 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in)
operating activities |
|
$ |
3,916 |
|
|
$ |
(689 |
) |
Changes in working
capital |
|
|
242 |
|
|
|
19,063 |
|
Cash flows from operations
before changes in working capital |
|
|
4,158 |
|
|
|
18,374 |
|
Cash components of selected
items |
|
|
(496 |
) |
|
|
738 |
|
Income tax effect of selected
items |
|
|
— |
|
|
|
— |
|
Cash flows from operations
before changes in working capital, adjusted for selected items
(1) |
|
$ |
3,662 |
|
|
$ |
19,112 |
|
|
|
|
(1) |
Amount reflects net
(loss) income 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 10, Earnings Per Share in our Form 10-Q for the quarter
ended March 31, 2024. |
(2) |
Net (loss) income 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, 2024 and 2023
were calculated based upon weighted average diluted shares of 16.5
million and 16.4 million shares, respectively, due to the net
(loss) income available to common stockholders, excluding selected
items. |
|
|
|
BATTALION OIL
CORPORATIONADJUSTED EBITDA RECONCILIATION
(Unaudited)(In thousands)
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
2024 |
|
2023 |
|
|
|
|
|
|
|
Net (loss) income, as reported |
|
$ |
(31,203 |
) |
|
$ |
22,811 |
|
Impact of adjusting
items: |
|
|
|
|
|
|
Interest expense |
|
|
8,391 |
|
|
|
9,009 |
|
Depletion, depreciation and accretion |
|
|
13,025 |
|
|
|
16,148 |
|
Stock-based compensation |
|
|
99 |
|
|
|
227 |
|
Interest income |
|
|
(701 |
) |
|
|
(191 |
) |
Unrealized loss (gain) on derivatives contracts |
|
|
19,761 |
|
|
|
(21,004 |
) |
Change in fair value of embedded derivative liability |
|
|
(928 |
) |
|
|
(1,062 |
) |
Non-recurring charges and other |
|
|
937 |
|
|
|
152 |
|
Adjusted EBITDA(1) |
|
$ |
9,381 |
|
|
$ |
26,090 |
|
|
|
|
(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 (loss) income. 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, 2024 |
|
December 31,2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income, as reported |
|
$ |
(31,203 |
) |
|
$ |
32,688 |
|
|
$ |
(53,799 |
) |
|
$ |
(4,748 |
) |
Impact of adjusting
items: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
8,391 |
|
|
|
8,917 |
|
|
|
9,219 |
|
|
|
9,366 |
|
Depletion, depreciation and accretion |
|
|
13,025 |
|
|
|
12,337 |
|
|
|
13,426 |
|
|
|
14,713 |
|
Stock-based compensation |
|
|
99 |
|
|
|
161 |
|
|
|
(686 |
) |
|
|
(772 |
) |
Interest income |
|
|
(701 |
) |
|
|
(525 |
) |
|
|
(293 |
) |
|
|
(234 |
) |
Unrealized loss (gain) on derivatives contracts |
|
|
19,761 |
|
|
|
(45,403 |
) |
|
|
46,805 |
|
|
|
(2,332 |
) |
Change in fair value of embedded derivative liability |
|
|
(928 |
) |
|
|
529 |
|
|
|
(1,878 |
) |
|
|
358 |
|
Non-recurring charges (credits) and other |
|
|
937 |
|
|
|
1,268 |
|
|
|
831 |
|
|
|
477 |
|
Adjusted EBITDA(1) |
|
$ |
9,381 |
|
|
$ |
9,972 |
|
|
$ |
13,625 |
|
|
$ |
16,828 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted LTM EBITDA(1) |
|
$ |
49,806 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 (loss) income. 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, 2023 |
|
December 31,2022 |
|
September 30, 2022 |
|
June 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. |
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