Battalion Oil Corp 10-Q for FY2026 Q2

Battalion Oil Corp (BATL)

10-Q 2026-08-12 For: 2026-06-30

Added on August 13, 2026

About this 10-Q

Battalion Oil Corp filed this 10-Q on August 12, 2026, covering the quarter ended June 30, 2026 (FY2026 Q2).

Headline figures

Quarter ended June 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $48.13M; up 12.4% from $42.81M a year earlier
Net income: $15.51M; up 223.4% from net income of $4.8M a year earlier
Diluted EPS: $0.34; compared with -$0.21 a year earlier

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☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2026
OR
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to



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


		PAGE
PART I	FINANCIAL INFORMATION
ITEM 1.	Condensed Consolidated Financial Statements (Unaudited)	5
	Condensed Consolidated Statements of Operations (Unaudited) for the Three and Six Months Ended June 30, 2026 and 2025	5
	Condensed Consolidated Balance Sheets (Unaudited) at June 30, 2026 and December 31, 2025	6
	Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) for the Three and Six Months Ended June 30, 2026 and the Year Ended December 31, 2025	7
	Condensed Consolidated Statements of Cash Flows (Unaudited) for the Six Months Ended June 30, 2026 and 2025	8
	Notes to Unaudited Condensed Consolidated Financial Statements	9
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	29
ITEM 3.	Quantitative and Qualitative Disclosures about Market Risk	39
ITEM 4.	Controls and Procedures	39

PART II	OTHER INFORMATION
ITEM 1.	Legal Proceedings	40
ITEM 1A.	Risk Factors	40
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	40
ITEM 3.	Defaults Upon Senior Securities	40
ITEM 4.	Mine Safety Disclosures	40
ITEM 5.	Other Information	41
ITEM 6.	Exhibits	42
Signatures		43


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025
Operating revenues:
Oil, natural gas and natural gas liquids sales:
Oil	$	49,152	$	36,291	$	85,434	$	75,991
Natural gas		(6,904)		935		(8,397)		3,758
Natural gas liquids		5,730		5,350		10,003		10,212
Total oil, natural gas and natural gas liquids sales		47,978		42,576		87,040		89,961
Other		151		236		263		326
Total operating revenues		48,129		42,812		87,303		90,287

Operating expenses:
Production:
Lease operating		9,189		10,670		19,283		21,028
Workover and other		622		2,309		1,640		3,742
Taxes other than income		2,981		2,522		5,305		5,322
Gathering and other		12,268		10,958		23,518		22,958
General and administrative		4,066		2,567		8,326		6,980
Depletion, depreciation and accretion		12,222		13,939		24,584		27,019
Total operating expenses		41,348		42,965		82,656		87,049
Income (loss) from operations		6,781		(153)		4,647		3,238

Other income (expenses):
Net gain (loss) on derivative contracts		13,051		11,548		(34,913)		20,850
Interest expense and other		(4,324)		(6,599)		(9,841)		(13,269)
Loss on extinguishment of debt		—		—		(862)		—
Total other income (expenses)		8,727		4,949		(45,616)		7,581
Income (loss) before income taxes		15,508		4,796		(40,969)		10,819
Income tax benefit (provision)		—		—		—		—
Net income (loss)	$	15,508	$	4,796	$	(40,969)	$	10,819
Preferred dividends		—		(8,270)		(8,331)		(20,090)
Undistributed earnings allocable to preferred stockholders		(6,434)		—		—		—
Net income (loss) available to common stockholders	$	9,074	$	(3,474)	$	(49,300)	$	(9,271)

Net income (loss) per share of common stock available to common stockholders:
Basic	$	0.34	$	(0.21)	$	(2.25)	$	(0.56)
Diluted	$	0.34	$	(0.21)	$	(2.25)	$	(0.56)
Weighted average common shares outstanding:
Basic		26,430		16,457		21,947		16,457
Diluted		45,172		16,457		21,947		16,457


	June 30, 2026		December 31, 2025
Current assets:
Cash and cash equivalents	$	83,097	$	27,965
Accounts receivable, net		14,406		12,071
Assets from derivative contracts		4,229		16,145
Restricted cash		5,294		91
Prepaids and other		462		892
Total current assets		107,488		57,164
Oil and natural gas properties (full cost method):
Evaluated		833,063		890,050
Unevaluated		54,334		48,025
Gross oil and natural gas properties		887,397		938,075
Less: accumulated depletion		(572,058)		(547,982)
Net oil and natural gas properties		315,339		390,093
Other operating property and equipment:
Other operating property and equipment		4,682		4,678
Less: accumulated depreciation		(2,843)		(2,807)
Net other operating property and equipment		1,839		1,871
Other noncurrent assets:
Assets from derivative contracts		3,729		7,350
Operating lease right of use assets		666		840
Other assets		3,524		3,360
Total assets	$	432,585	$	460,678

Current liabilities:
Accounts payable and accrued liabilities	$	39,898	$	39,734
Liabilities from derivative contracts		6,667		633
Current portion of long-term debt		2,031		22,510
Operating lease liabilities		484		764
Total current liabilities		49,080		63,641
Long-term debt, net		156,208		180,955
Other noncurrent liabilities:
Liabilities from derivative contracts		6,194		1,692
Asset retirement obligations		17,749		20,837
Operating lease liabilities		216		104
Commitments and contingencies (Note 9)
Temporary equity:
Redeemable convertible preferred stock: 138,000 shares
of $0.0001 par value authorized, issued and outstanding,
$193,757 aggregate liquidation preference at December 31, 2025		—		226,241
Stockholders' equity (deficit):
Redeemable convertible preferred stock: 130,197 shares
of $0.0001 par value authorized, issued and outstanding,
$198,276 aggregate liquidation preference at June 30, 2026		221,185		—
Common stock: 100,000,000 shares of $0.0001 par value authorized;
38,892,112 and 16,456,563 shares issued and outstanding at
June 30, 2026 and December 31, 2025, respectively		4		2
Additional paid-in capital		295,914		240,202
Accumulated deficit		(313,965)		(272,996)
Total stockholders' equity (deficit)		203,138		(32,792)
Total liabilities, temporary equity and stockholders' equity	$	432,585	$	460,678


									Retained
							Additional		Earnings
	Preferred Stock			Common Stock			Paid-In		(Accumulated		Stockholders'
	Shares	Amount		Shares	Amount		Capital		Deficit)		Equity
Balances at December 31, 2024	—	$	—	16,457	$	2	$	288,993	$	(284,875)	$	4,120
Net income	—		—	—		—		—		6,023		6,023
Deemed dividends for preferred stock	—		—	—		—		(11,820)		—		(11,820)
Stock-based compensation and other	—		—	—		—		(85)		—		(85)
Balances at March 31, 2025	—		—	16,457		2		277,088		(278,852)		(1,762)
Net income	—		—	—		—		—		4,796		4,796
Deemed dividends for preferred stock	—		—	—		—		(8,270)		—		(8,270)
Balances at June 30, 2025	—		—	16,457		2		268,818		(274,056)		(5,236)
Net loss	—		—	—		—		—		(735)		(735)
Deemed dividends for preferred stock	—		—	—		—		(14,279)		—		(14,279)
Balances at September 30, 2025	—		—	16,457		2		254,539		(274,791)		(20,250)
Net income	—		—	—		—		—		1,795		1,795
Deemed dividends for preferred stock	—		—	—		—		(14,337)		—		(14,337)
Balances at December 31, 2025	—		—	16,457		2		240,202		(272,996)		(32,792)
Net loss	—		—	—		—		—		(56,477)		(56,477)
Deemed dividends for preferred stock	—		—	—		—		(8,331)		—		(8,331)
Reclassification of preferred stock to permanent equity	138		234,572	—		—		—		—		234,572
Private placement offering, net of issuance costs	—		—	1,800		—		13,837		—		13,837
Common stock issuance for acquisition	—		—	485		—		6,310		—		6,310
Preferred stock Series A-2 conversion to common stock	(8)		(13,387)	1,800		—		13,387		—		—
Balances at March 31, 2026	130		221,185	20,542		2		265,405		(329,473)		157,119
Net income	—		—	—		—		—		15,508		15,508
Common stock issuance under ATM Program, net of issuance costs	—		—	17,397		2		30,088		—		30,090
Common stock issuance upon exercise of warrants	—		—	927		—		—		—		—
Common stock issuance - RSU vesting, net of forfeitures	—		—	26		—		421		—		421
Balances at June 30, 2026	130	$	221,185	38,892	$	4	$	295,914	$	(313,965)	$	203,138


	June 30, 2026		December 31, 2025
Term loan credit facility	$	162,500	$	208,125
Other		—		10
Total debt (Face Value)		162,500		208,135
Less:
Current portion of long-term debt⁽¹⁾		(2,031)		(22,510)
Other⁽²⁾		(4,261)		(4,670)
Long-Term Debt, net	$	156,208	$	180,955


Total Net Leverage Ratio	SOFR Loans Spread	ABR Loans Spread
Category 1 ≤ 2.50 to 1.00	7.75%	6.75%
Category 2 > 2.50 to 1.00 ≤ 3.00 to 1.00	8.00%	7.00%
Category 3 > 3.00 to 1.00 ≤ 3.25 to 1.00	8.25%	7.25%
Category 4 > 3.25 to 1.00	8.50%	7.50%


Fiscal Quarter	Total Net Leverage Ratio
Fiscal quarters ending March 31, 2025 through and including June 30, 2025	2.75 to 1.00
Fiscal quarter ending September 30, 2025	2.50 to 1.00
Fiscal quarter ending December 31, 2025	3.20 to 1.00
Fiscal quarter ending March 31, 2026	3.25 to 1.00
Fiscal quarter ending June 30, 2026	3.40 to 1.00
Fiscal quarter ending September 30, 2026	3.50 to 1.00
Fiscal quarter ending December 31, 2026	3.40 to 1.00
Fiscal quarter ending March 31, 2027	3.25 to 1.00
Fiscal quarter ending June 30, 2027	3.00 to 1.00
Fiscal quarter ending September 30, 2027 and each fiscal quarter thereafter	2.50 to 1.00


Fiscal Quarter	Asset Coverage Ratio
Fiscal quarters ending March 31, 2025 through and including December 31, 2026	1.85 to 1.00
Each fiscal quarter thereafter	2.00 to 1.00


Period			Premium
Months 0 - 12			Make-whole amount equal to 12 months of interest plus 4.00%
Months 13 - 30			2.00%
Thereafter			0.00%


Period			Premium
Months 0 - 9			Make-whole amount equal to 9 months of interest plus 2.00%
Months 10 - 30			2.00%
Thereafter			0.00%


	June 30, 2026
	Level 1		Level 2		Level 3		Total
Assets
Assets from derivative contracts	$	—	$	7,958	$	—	$	7,958

Liabilities
Liabilities from derivative contracts	$	—	$	12,861	$	—	$	12,861


Balance sheet location	June 30, 2026		December 31, 2025		Balance sheet location	June 30, 2026		December 31, 2025
Current assets	$	4,229	$	16,145	Current liabilities	$	(6,667)	$	(633)
Other noncurrent assets		3,729		7,350	Other noncurrent liabilities		(6,194)		(1,692)
	$	7,958	$	23,495		$	(12,861)	$	(2,325)


		Location of gain (loss)	Three Months Ended				Six Months Ended
		on derivative contracts on	June 30,				June 30,
Type		Statement of Operations	2026		2025		2026		2025
Commodity contracts:
Unrealized gain (loss)		Other income (expenses)	$	20,865	$	7,248	$	(26,072)	$	19,076
Realized (loss) gain		Other income (expenses)		(7,814)		4,300		(8,841)		1,774
Total net gain (loss)			$	13,051	$	11,548	$	(34,913)	$	20,850


Smaller reporting company ☒	Emerging growth company ☐


Instrument			2026		2027		2028		2029
Crude oil:
Fixed-price swap:
Total volumes (Bbls)			770,032		1,136,265		769,584		299,544
Weighted average price		$	65.19	$	62.81	$	62.48	$	61.40
Two-way collar:
Total volumes (Bbls)			36,361		—		41,678		243,329
Weighted average price (call)		$	83.95	$	0.00	$	62.35	$	63.63
Weighted average price (put)		$	67.89	$	0.00	$	59.00	$	57.16
Basis swap:
Total volumes (Bbls)			674,926		980,339		692,020		140,544
Weighted average price		$	0.37	$	0.55	$	0.66	$	0.68
WTI NYMEX roll:
Total volumes (Bbls)			674,926		980,339		692,020		140,544
Weighted average price		$	(0.13)	$	(0.04)	$	(0.23)	$	(0.29)
Natural gas:
Fixed-price swap:
Total volumes (MMBtu)			747,721		1,124,485		2,010,469		527,049
Weighted average price		$	3.98	$	3.74	$	3.36	$	3.84
Two-way collar:
Total volumes (MMBtu)			1,274,295		2,100,055		1,083,731		1,378,205
Weighted average price (call)		$	4.79	$	4.64	$	4.10	$	4.01
Weighted average price (put)		$	3.33	$	3.12	$	3.34	$	2.95
Basis swap:
Total volumes (MMBtu)			1,305,360		2,159,284		2,550,400		527,049
Weighted average price		$	(0.75)	$	(0.84)	$	(0.86)	$	(0.89)


	Assets from Derivative Contracts				Liabilities from Derivative Contracts
Offsetting of Derivative Assets and Liabilities	June 30, 2026		December 31, 2025		June 30, 2026		December 31, 2025

Gross amounts recognized in the Unaudited Condensed Consolidated Balance Sheet	$	7,958	$	23,495	$	(12,861)	$	(2,325)
Amounts not offset in the Unaudited Condensed Consolidated Balance Sheet		(7,958)		(2,325)		7,958		2,325
Net amount	$	—	$	21,170	$	(4,903)	$	—


Liability for asset retirement obligations at December 31, 2025	$	20,837
Accretion expense		471
Liabilities incurred		14
Liabilities divested		(3,573)
Liability for asset retirement obligations at June 30, 2026	$	17,749


	June 30, 2026		December 31, 2025
Accounts receivable, net:
Oil, natural gas and natural gas liquids revenues	$	7,803	$	8,468
Joint interest accounts		743		1,383
Other		5,860		2,220
Total Accounts receivable, net	$	14,406	$	12,071

Prepaids and other:
Prepaids	$	363	$	621
Funds in escrow		—		171
Other		99		100
Total Prepaids and other	$	462	$	892

Other assets (Non-current):
Funds in escrow	$	609	$	599
Other		2,915		2,761
Total Other assets (Non-current)	$	3,524	$	3,360

Accounts payable and accrued liabilities
Trade payables	$	12,859	$	12,629
Accrued oil and natural gas capital costs		5,888		5,685
Revenues and royalties payable		11,346		10,901
Accrued interest expense		47		67
Accrued employee compensation		2,023		385
Accrued lease operating expenses		5,623		8,000
Other		2,112		2,067
Total Accounts payable and accrued liabilities	$	39,898	$	39,734


		Three Months Ended June 30,				Six Months Ended June 30,
		2026		2025		2026		2025
Interest expense and other:
Interest expense		$	5,124	$	7,341	$	10,965	$	14,530
Interest income			(612)		(764)		(936)		(1,343)
Other			(188)		22		(188)		82
Total Interest expense and other		$	4,324	$	6,599	$	9,841	$	13,269


3.1		Ninth Amended and Restated Certificate of Incorporation of Battalion Oil Corporation, dated June 12, 2025 (Incorporated by reference to Exhibit 3.1 of our Current Report on Form 8-K filed June 18, 2025).
3.2		Seventh Amended and Restated Bylaws of Battalion Oil Corporation (Incorporated by reference to Exhibit 3.2 of our Current Report on Form 8-K filed January 27, 2020).
4.1		Description of Battalion Oil Corporation’s securities registered under Section 12 of the Exchange Act. (Incorporated by reference to Exhibit 4.1 of our Annual Report on Form 10-K filed March 25, 2020).
4.2		Form of Pre-Funded Warrant (Incorporated by reference to Exhibit 4.1 of our Current Report on Form 8-K filed March 9, 2026).
10.1		Sales Agreement, dated as of May 5, 2026, by and among the Company and Roth Capital Partners, LLC (Incorporated by reference to Exhibit 1.1 of our Current Report on Form 8-K filed May 5, 2026).
10.2		Third Amended and Restated Senior Secured Credit Agreement dated as of June 30, 2026, by and among Battalion Oil Corporation, as holdings, Halcón Holdings LLC, as borrower, the subsidiary guarantors party thereto, Fortress Credit Corp., as administrative agent, and the lenders party thereto (Incorporated by reference to Exhibit 10.1 of our Current Report on Form 8-K filed July 1, 2026).
10.3		Preferred Stock Repurchase and Conversion Agreement, dated August 7, 2026, by and between Battalion Oil Corporation and Gen IV Investment Opportunities, LLC (Incorporated by reference to Exhibit 10.1 of our Current Report on Form 8-K filed August 7, 2026).
10.4		Voting and Lock-Up Agreement, dated August 7, 2026, by and between Battalion Oil Corporation and Gen IV Investment Opportunities, LLC (Incorporated by reference to Exhibit 10.2 of our Current Report on Form 8-K filed August 7, 2026).
31	*	Sarbanes-Oxley Section 302 certification of Principal Executive Officer and Principal Financial Officer
32	†	Sarbanes-Oxley Section 906 certification of Principal Executive Officer and Principal Financial Officer
101.INS	*	Inline XBRL Instance Document
101.SCH	*	Inline XBRL Taxonomy Extension Schema Document
101.CAL	*	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	*	Inline XBRL Taxonomy Extension Definition Document
101.LAB	*	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	*	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	*	Cover Page Interactive Data File (embedded within the Inline XBRL document)

		BATTALION OIL CORPORATION


August 12, 2026		By:	/s/ MATTHEW B. STEELE

		Name:	Matthew B. Steele
		Title:	Chief Executive Officer
			(Principal Executive Officer and Principal Financial Officer)