Battalion Oil Corp 8-K, filed Nov 15, 2023

Battalion Oil Corp (BATL)

8-K 2023-11-15 For: 2023-11-15

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Added on April 10, 2026

About this 8-K

Battalion Oil Corp filed this 8-K on November 15, 2023.

Items reported

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

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Delaware	001-35467	20-0700684
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)


3505 West Sam Houston Parkway North, Suite 300 Houston, Texas		77043
(Address of principal executive offices)		(Zip Code)


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock par value $0.0001	BATL	NYSE American


Exhibit No.		Description

99.1		Press release issued by Battalion Oil Corporation dated November 15, 2023.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)


	BATTALION OIL CORPORATION


November 15, 2023	By:	/s/ Matthew B. Steele
	Name:	Matthew B. Steele
	Title:	Chief Executive Officer


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Operating revenues:
Oil, natural gas and natural gas liquids sales:
Oil	$	43,689	$	70,406	$	144,072	$	206,874
Natural gas		3,668		15,656		8,628		39,296
Natural gas liquids		6,078		12,644		18,893		35,234
Total oil, natural gas and natural gas liquids sales		53,435		98,706		171,593		281,404
Other		671		443		1,927		858
Total operating revenues		54,106		99,149		173,520		282,262

Operating expenses:
Production:
Lease operating		11,152		12,265		34,208		35,698
Workover and other		700		2,559		4,669		4,807
Taxes other than income		3,307		5,613		9,677		15,936
Gathering and other		15,512		16,663		48,857		47,787
General and administrative		3,192		4,498		13,572		14,071
Depletion, depreciation and accretion		13,426		13,615		44,287		36,436
Total operating expenses		47,289		55,213		155,270		154,735
Income from operations		6,817		43,936		18,250		127,527

Other income (expenses):
Net (loss) gain on derivative contracts		(53,687)		67,634		(29,741)		(88,134)
Interest expense and other		(6,929)		(5,682)		(24,245)		(13,202)
Total other (expenses) income		(60,616)		61,952		(53,986)		(101,336)
(Loss) income before income taxes		(53,799)		105,888		(35,736)		26,191
Income tax benefit (provision)		—		—		—		—
Net (loss) income	$	(53,799)	$	105,888	$	(35,736)	$	26,191
Series A preferred dividends		(3,863)		—		(6,352)		—
Net (loss) income available to common stockholders	$	(57,662)	$	105,888	$	(42,088)	$	26,191

Net (loss) income per share of common stock available to common stockholders:
Basic	$	(3.50)	$	6.48	$	(2.56)	$	1.60
Diluted	$	(3.50)	$	6.42	$	(2.56)	$	1.59
Weighted average common shares outstanding:
Basic		16,457		16,340		16,436		16,327
Diluted		16,457		16,483		16,436		16,496


	September 30, 2023		December 31, 2022
Current assets:
Cash and cash equivalents	$	42,590	$	32,726
Accounts receivable, net		27,177		37,974
Assets from derivative contracts		4,649		16,244
Restricted cash		90		90
Prepaids and other		786		1,131
Total current assets		75,292		88,165
Oil and natural gas properties (full cost method):
Evaluated		736,205		713,585
Unevaluated		62,649		62,621
Gross oil and natural gas properties		798,854		776,206
Less: accumulated depletion		(434,034)		(390,796)
Net oil and natural gas properties		364,820		385,410
Other operating property and equipment:
Other operating property and equipment		4,623		4,434
Less: accumulated depreciation		(1,653)		(1,209)
Net other operating property and equipment		2,970		3,225
Other noncurrent assets:
Assets from derivative contracts		2,022		5,379
Operating lease right of use assets		889		352
Other assets		10,768		2,827
Total assets	$	456,761	$	485,358

Current liabilities:
Accounts payable and accrued liabilities	$	59,417	$	100,095
Liabilities from derivative contracts		36,363		29,286
Current portion of long-term debt		45,106		35,067
Operating lease liabilities		513		352
Asset retirement obligations		—		225
Total current liabilities		141,399		165,025
Long-term debt, net		153,476		182,676
Other noncurrent liabilities:
Liabilities from derivative contracts		35,089		33,649
Asset retirement obligations		17,202		15,244
Operating lease liabilities		375		—
Deferred income taxes		—		—
Other		1,554		4,136
Commitments and contingencies
Temporary equity:
Series A redeemable convertible preferred stock: 63,000 shares of $0.0001		66,834		—
par value authorized, issued and outstanding as of September 30, 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
September 30, 2023 and December 31, 2022, respectively		2		2
Additional paid-in capital		326,511		334,571
Retained earnings (accumulated deficit)		(285,681)		(249,945)
Total stockholders' equity		40,832		84,628
Total liabilities, temporary equity and stockholders' equity	$	456,761	$	485,358


	Three Months		Three Months		Three Months		Three Months
	Ended		Ended		Ended		Ended
	September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022

Net (loss) income, as reported	$	(53,799)	$	(4,748)		22,811		(7,652)
Impact of adjusting items:
Interest expense		9,219		9,366		9,009		9,378
Depletion, depreciation and accretion		13,426		14,713		16,148		15,479
Stock-based compensation		(686)		(772)		227		670
Interest income		(293)		(234)		(191)		(227)
Unrealized loss (gain) on derivatives contracts		46,805		(2,332)		(21,004)		3,655
Change in fair value of embedded derivative liability		(1,878)		358		(1,062)		1,224
Non-recurring charges (credits) and other		831		477		152		194
Adjusted EBITDA⁽¹⁾	$	13,625	$	16,828	$	26,090	$	22,721

Adjusted LTM EBITDA⁽¹⁾	$	79,264


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Cash flows from operating activities:
Net (loss) income	$	(53,799)	$	105,888	$	(35,736)	$	26,191
Adjustments to reconcile net (loss) income to net cash
provided by operating activities:
Depletion, depreciation and accretion		13,426		13,615		44,287		36,436
Stock-based compensation, net		(686)		683		(1,231)		1,540
Unrealized loss (gain) on derivative contracts		46,805		(102,112)		23,469		(23,911)
Amortization/accretion of financing related costs		1,946		919		5,789		2,726
Reorganization items		—		—		—		(744)
Accrued settlements on derivative contracts		3,775		(7,159)		2,846		7,493
Change in fair value of embedded derivative liability		(1,878)		(448)		(2,582)		(3,043)
Other		91		(32)		144		(128)
Cash flows from operations before changes in working capital		9,680		11,354		36,986		46,560
Changes in working capital		(7,264)		14,127		(25,921)		7,254
Net cash provided by operating activities		2,416		25,481		11,065		53,814

Cash flows from investing activities:
Oil and natural gas capital expenditures		(4,062)		(35,621)		(36,695)		(86,998)
Proceeds received from sale of oil and natural gas assets		—		1		1,189		1
Other operating property and equipment capital expenditures		148		(244)		(136)		(949)
Other		(1,453)		70		(1,464)		166
Net cash used in operating activities		(5,367)		(35,794)		(37,106)		(87,780)

Cash flows from financing activities:
Proceeds from borrowings		—		122		—		20,122
Repayments of borrowings		(10,023)		—		(25,066)		(85)
Payment of deferred debt financing costs		—		—		—		(379)
Proceeds from issuance of preferred stock		37,050		—		61,425		—
Other		—		(25)		(454)		(492)
Net cash provided by financing activities		27,027		97		35,905		19,166

Net increase (decrease) in cash, cash equivalents and restricted cash		24,076		(10,216)		9,864		(14,800)

Cash, cash equivalents and restricted cash at beginning of period		18,604		43,775		32,816		48,359
Cash, cash equivalents and restricted cash at end of period	$	42,680	$	33,559	$	42,680	$	33,559


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Production volumes:
Crude oil (MBbls)		539		753		1,905		2,097
Natural gas (MMcf)		2,054		2,352		6,616		7,022
Natural gas liquids (MBbls)		288		348		917		924
Total (MBoe)		1,170		1,493		3,925		4,191
Average daily production (Boe/d)		12,717		16,228		14,377		15,352

Average prices:
Crude oil (per Bbl)	$	81.06	$	93.50	$	75.63	$	98.65
Natural gas (per Mcf)		1.79		6.66		1.30		5.60
Natural gas liquids (per Bbl)		21.10		36.33		20.60		38.13
Total per Boe		45.67		66.11		43.72		67.14

Cash effect of derivative contracts:
Crude oil (per Bbl)	$	(14.96)	$	(36.07)	$	(7.04)	$	(46.50)
Natural gas (per Mcf)		0.57		(3.11)		1.08		(2.07)
Natural gas liquids (per Bbl)		—		—		—		—
Total per Boe		(5.88)		(23.09)		(1.60)		(26.73)

Average prices computed after cash effect of settlement of derivative contracts:
Crude oil (per Bbl)	$	66.10	$	57.43	$	68.59	$	52.15
Natural gas (per Mcf)		2.36		3.55		2.38		3.53
Natural gas liquids (per Bbl)		21.10		36.33		20.60		38.13
Total per Boe		39.79		43.02		42.12		40.41

Average cost per Boe:
Production:
Lease operating	$	9.53	$	8.22	$	8.72	$	8.52
Workover and other		0.60		1.71		1.19		1.15
Taxes other than income		2.83		3.76		2.47		3.80
Gathering and other		13.26		11.16		12.45		11.40
General and administrative, as adjusted⁽¹⁾		2.64		2.11		3.32		2.74
Depletion		11.17		8.97		11.02		8.56

(1) Represents general and administrative costs per Boe, adjusted for items noted in the reconciliation below:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
As Reported:
Net (loss) income available to common stockholders - diluted ⁽¹⁾	$	(57,662)	$	105,888	$	(42,088)	$	26,191

Impact of Selected Items:
Unrealized loss (gain) on derivatives contracts:
Crude oil	$	46,133	$	(99,848)	$	16,003	$	(28,886)
Natural gas		672		(2,264)		7,466		4,975
Total mark-to-market non-cash charge		46,805		(102,112)		23,469		(23,911)
Change in fair value of embedded derivative liability		(1,878)		(449)		(2,582)		(3,043)
Non-recurring charges		780		670		1,774		1,036
Selected items, before income taxes		45,707		(101,891)		22,661		(25,918)
Income tax effect of selected items		—		—		—		—
Selected items, net of tax		45,707		(101,891)		22,661		(25,918)

Net (loss) income available to common stockholders, as adjusted ⁽²⁾	$	(11,955)	$	3,997	$	(19,427)	$	273

Diluted net (loss) income per common share, as reported	$	(3.50)	$	6.42	$	(2.56)	$	1.59
Impact of selected items		2.77		(6.18)		1.38		(1.57)
Diluted net (loss) income per common share, excluding selected items ⁽²⁾⁽³⁾	$	(0.73)	$	0.24	$	(1.18)	$	0.02


Net cash (used in) provided by operating activities	$	2,416	$	25,481	$	11,065	$	53,814
Changes in working capital		7,264		(14,127)		25,921		(7,254)
Cash flows from operations before changes in working capital		9,680		11,354		36,986		46,560
Cash components of selected items		(2,995)		7,829		(1,406)		(5,713)
Income tax effect of selected items		—		—		—		—
Cash flows from operations before changes in working capital, adjusted for selected items ⁽¹⁾	$	6,685	$	19,183	$	35,580	$	40,847