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Battalion Oil Corporation Announces Third Quarter 2025 Financial and Operating Results

1. Battalion produced 12,293 Boe/d with 53% oil in Q3 2025. 2. Total revenue decreased to $43.5 million due to lower oil prices. 3. AGI facility is still out of service, impacting production capacity. 4. Company reported a net loss of $15 million for Q3 2025. 5. New credit agreement provides operational flexibility until mid-2027.

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Why Bearish?

Battalion's increased losses and lower revenues could weaken investor confidence, akin to past declines in similar situations for energy sector companies with diminished earnings.

How important is it?

The report reveals significant losses and operational hurdles, suggesting immediate investor concerns about Battalion's financial health and future performance.

Why Short Term?

Immediate impacts from Q3 results could lead to investor reactions; over the longer term, stabilization of operations needed for recovery.

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OXYNBRCHK
November 13, 2025 16:43 ET  | Source: Battalion Oil Corporation HOUSTON, Nov. 13, 2025 (GLOBE NEWSWIRE) -- Battalion Oil Corporation (NYSE American: BATL, “Battalion” or the “Company”) today announced financial and operating results for the third quarter of 2025. Key Highlights Generated third quarter 2025 sales volumes of 12,293 barrels of oil equivalent per day (“Boe/d”) (53% oil)AGI facility remains out of serviceGas Production is being treated by third partyThe Company has entered into an amendment of its existing credit facility allowing additional operational flexibilityThe Company continues to pursue potential merger, acquisition and divestiture opportunities Management Comments Drilling and completion operations concluded in the West Quito Draw with two wells coming online and producing an average of 883 Boe/ day over the first 120 days of production. Well operations yielded more than $1.1 million in savings per well across all phases compared to AFE. Both wells are still on choke while flowing back, confirming the significant inventory in the asset area. The acid gas injection (“AGI”) facility ceased operations on August 11, 2025 and remains out of service. In response, we temporarily shut in a portion of our Monument Draw field and redirected our gas production to alternative gas processing options available in the immediate vicinity of our operations. Currently, we have brought most wells back online; however, approximately 1,600 barrels of oil per day remain shut-in across Monument Draw ready to flow to sales. Results of Operations Average daily net production and total operating revenue during the third quarter of 2025 were 12,293 Boe/d (53% oil) and $43.5 million, respectively, as compared to production and revenue of 12,076 Boe/d (52% oil) and $45.3 million, respectively, during the third quarter of 2024. The decrease in revenues in the third quarter of 2025 as compared to the third quarter of 2024 is primarily attributable to a $2.24 decrease per Boe in average realized prices (excluding the impact of hedges) partially offset by an approximate 217 Boe/d increase in average daily production. Excluding the impact of hedges, Battalion realized 98.3% of the average NYMEX oil price during the third quarter of 2025. Realized hedge gains totaled approximately $4.1 million during the third quarter of 2025. Lease operating and workover expense was $11.69 per Boe in the third quarter of 2025 versus $11.56 per Boe in the third quarter of 2024. The increase in lease operating and workover expense per Boe year-over-year is primarily the result of increased water production from new wells yielding higher disposal costs. Gathering and other expenses were $9.02 per Boe in the third quarter of 2025 versus $11.20 per Boe in the third quarter of 2024. The decrease in gathering and other expenses per Boe is primarily related to progress made at the central production facilities yielding lower labor and repair costs as well as increased throughput and overall production volumes being treated by the AGI facility during 2025. Although the AGI facility ceased operations on August 11, 2025, we were able to secure treatment at alternative facilities. The AGI facility treated natural gas production from March 2024 to August 11, 2025. General and administrative expenses were $2.73 per Boe in the third quarter of 2025 compared to $3.46 per Boe in the third quarter of 2024. The decrease in general and administrative expenses for the third quarter of 2025 is primarily due to lower merger costs. Excluding non-recurring charges, general and administrative expenses would have been $2.44 per Boe in the third quarter of 2025 compared to $2.58 per Boe in the third quarter of 2024. For the third quarter of 2025, the Company reported a net loss available to common stockholders of $15.0 million and a net loss of $0.91 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 third quarter of 2025 of $15.7 million or an adjusted diluted net loss of $0.96 per common share (see Reconciliation for additional information). Adjusted EBITDA during the third quarter ended September 30, 2025 was $18.9 million as compared to $13.5 million during the quarter ended September 30, 2024 (see Adjusted EBITDA Reconciliation table for additional information). Liquidity and Balance Sheet As of September 30, 2025, the Company had $213.8 million of term loan indebtedness outstanding and total liquidity made up of cash and cash equivalents of $50.5 million. On November 12, 2025, the Company entered into the Second Amendment to the Second Amended and Restated Senior Secured Credit Agreement which provides total net leverage ratio and asset coverage ratio covenant relief through the fiscal quarter ended June 30, 2027. For additional details on liquidity, financial position, and recent developments, please refer to Management’s Discussion and Analysis and Risk Factors included in Battalion’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 and its Annual Report on Form 10-K for the fiscal year ended December 31, 2024. 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, 2024, 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 Nine Months Ended  September 30, September 30,     2025 2024 2025 2024Operating revenues:            Oil, natural gas and natural gas liquids sales:            Oil $38,325  $42,545  $114,316  $130,673 Natural gas  853   (2,588)  4,611   (2,660)Natural gas liquids  4,208   5,145   14,420   15,704 Total oil, natural gas and natural gas liquids sales  43,386   45,102   133,347   143,717 Other  96   164   422   523 Total operating revenues  43,482   45,266   133,769   144,240              Operating expenses:            Production:            Lease operating  12,389   11,602   33,417   34,193 Workover and other  839   1,249   4,581   3,088 Taxes other than income  2,622   2,532   7,944   8,872 Gathering and other  10,199   12,442   33,157   41,854 General and administrative  3,085   3,854   10,065   11,265 Depletion, depreciation and accretion  13,522   12,533   40,541   38,771 Total operating expenses  42,656   44,212   129,705   138,043 Income from operations  826   1,054   4,064   6,197              Other income (expenses):            Net gain on derivative contracts  5,180   26,896   26,030   3,932 Interest expense and other  (6,741)  (6,322)  (20,010)  (19,809)Total other (expenses) income  (1,561)  20,574   6,020   (15,877)(Loss) income before income taxes  (735)  21,628   10,084   (9,680)Income tax benefit (provision)  —   —   —   — Net (loss) income $(735) $21,628  $10,084  $(9,680)Preferred dividends  (14,279)  (9,321)  (34,369)  (23,539)Undistributed earnings allocable to preferred stockholders  —   (6,732)  —   — Net (loss) income available to common stockholders $(15,014) $5,575  $(24,285) $(33,219)             Net (loss) income per share of common stock available to common stockholders:            Basic $(0.91) $0.34  $(1.48) $(2.02)Diluted $(0.91) $0.34  $(1.48) $(2.02)Weighted average common shares outstanding:            Basic  16,457   16,457   16,457   16,457 Diluted  16,457   16,523   16,457   16,457                   BATTALION OIL CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)(In thousands, except share and per share amounts)            September 30, 2025    December 31, 2024Current assets:      Cash and cash equivalents $50,455  $19,712 Accounts receivable, net  17,948   26,298 Assets from derivative contracts  15,077   6,969 Restricted cash  91   91 Prepaids and other  698   982 Total current assets  84,269   54,052 Oil and natural gas properties (full cost method):      Evaluated  885,656   816,186 Unevaluated  48,024   49,091 Gross oil and natural gas properties  933,680   865,277 Less: accumulated depletion  (536,664)  (497,272)Net oil and natural gas properties  397,016   368,005 Other operating property and equipment:      Other operating property and equipment  4,677   4,663 Less: accumulated depreciation  (2,766)  (2,455)Net other operating property and equipment  1,911   2,208 Other noncurrent assets:      Assets from derivative contracts  3,394   4,052 Operating lease right of use assets  1,014   453 Other assets  4,089   2,278 Total assets $491,693  $431,048        Current liabilities:      Accounts payable and accrued liabilities $63,037  $52,682 Liabilities from derivative contracts  1,863   12,330 Current portion of long-term debt  22,526   12,246 Operating lease liabilities  730   406 Total current liabilities  88,156   77,664 Long-term debt, net  186,230   145,535 Other noncurrent liabilities:      Liabilities from derivative contracts  4,752   6,954 Asset retirement obligations  20,592   19,156 Operating lease liabilities  309   84 Commitments and contingencies      Temporary equity:      Redeemable convertible preferred stock: 138,000 shares  211,904   177,535 of $0.0001 par value authorized, issued and outstanding      at September 30, 2025 and December 31, 2024      Stockholders' equity:      Common stock: 100,000,000 shares of $0.0001 par value authorized;      16,456,563 shares issued and outstanding at September 30, 2025 and      December 31, 2024  2   2 Additional paid-in capital  254,539   288,993 Accumulated deficit  (274,791)  (284,875)Total stockholders' (deficit) equity  (20,250)  4,120 Total liabilities, temporary equity and stockholders' equity $491,693  $431,048           BATTALION OIL CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)(In thousands)               Three Months Ended Nine Months Ended  September 30, September 30,     2025 2024 2025 2024Cash flows from operating activities:            Net (loss) income $(735) $21,628  $10,084  $(9,680)Adjustments to reconcile net income (loss) to net cash            provided by operating activities:            Depletion, depreciation and accretion  13,522   12,533   40,541   38,771 Stock-based compensation, net  —   5   (109)  140 Unrealized gain on derivative contracts  (1,044)  (28,091)  (20,120)  (12,764)Amortization/accretion of financing related costs  388   1,559   1,180   4,949 Accrued settlements on derivative contracts  613   (1,876)  76   (1,102)Change in fair value of embedded derivative liability  —   42   —   (1,323)Other  84   98   193   278 Cash flows from operations before changes in working capital  12,828   5,898   31,845   19,269 Changes in working capital  15,145   (10,970)  19,064   9,400 Net cash provided by (used in) operating activities  27,973   (5,072)  50,909   28,669              Cash flows from investing activities:            Oil and natural gas capital expenditures  (16,483)  (6,929)  (69,573)  (51,778)Proceeds received from sale of oil and natural gas assets  —   —   —   7,015 Acquisition of oil and natural gas properties  —   —   —   (47)Contract asset  —   58   —   (7,737)Other operating property and equipment capital expenditures  —   (2)  (14)  (19)Other  (5)  (7)  (375)  (20)Net cash used in investing activities  (16,488)  (6,880)  (69,962)  (52,586)             Cash flows from financing activities:            Proceeds from borrowings  —   —   63,000   — Repayments of borrowings  (5,651)  (12,530)  (11,329)  (52,383)Debt issuance costs  —   —   (1,875)  — Payment of debt financing costs  —   (46)  —   (175)Proceeds from issuance of preferred stock  —   (68)  —   38,781 Merger deposit  —   —   —   10,000 Net cash (used in) provided by financing activities  (5,651)  (12,644)  49,796   (3,777)             Net increase (decrease) in cash, cash equivalents and restricted cash  5,834   (24,596)  30,743   (27,694)             Cash, cash equivalents and restricted cash at beginning of period  44,712   54,521   19,803   57,619 Cash, cash equivalents and restricted cash at end of period $50,546  $29,925  $50,546  $29,925                   BATTALION OIL CORPORATIONSELECTED OPERATING DATA (Unaudited)               Three Months Ended Nine Months Ended  September 30, September 30,  2025 2024 2025 2024Production volumes:            Crude oil (MBbls)  599   577   1,752   1,720 Natural gas (MMcf)  1,778   1,844   5,713   5,953 Natural gas liquids (MBbls)  236   227   680   751 Total (MBoe)  1,131   1,111   3,384   3,463 Average daily production (Boe/d)  12,293   12,076   12,396   12,639              Average prices:            Crude oil (per Bbl) $63.98  $73.73  $65.25  $75.97 Natural gas (per Mcf)  0.48   (1.40)  0.81   (0.45)Natural gas liquids (per Bbl)  17.83   22.67   21.21   20.91 Total per Boe  38.36   40.60   39.41   41.50              Cash effect of derivative contracts:            Crude oil (per Bbl) $1.48  $(10.21) $(1.42) $(12.20)Natural gas (per Mcf)  1.83   2.55   1.47   2.04 Natural gas liquids (per Bbl)  —   —   —   — Total per Boe  3.66   (1.08)  1.75   (2.55)             Average prices computed after cash effect of settlement of derivative contracts:            Crude oil (per Bbl) $65.46  $63.52  $63.83  $63.77 Natural gas (per Mcf)  2.31   1.15   2.28   1.59 Natural gas liquids (per Bbl)  17.83   22.67   21.21   20.91 Total per Boe  42.02   39.52   41.16   38.95              Average cost per Boe:            Production:            Lease operating $10.95  $10.44  $9.88  $9.87 Workover and other  0.74   1.12   1.35   0.89 Taxes other than income  2.32   2.28   2.35   2.56 Gathering and other  9.02   11.20   9.80   12.09 General and administrative, as adjusted (1)  2.44   2.58   2.50   2.55 Depletion  11.64      10.91   11.64   10.85              (1) Represents general and administrative costs per Boe, adjusted for items noted in the reconciliation below:             General and administrative:            General and administrative, as reported $2.73  $3.46  $2.97  $3.25 Stock-based compensation:            Non-cash  —   -   (0.01)  (0.04)Non-recurring charges and other:            Cash  (0.29)  (0.88)  (0.46)  (0.66)General and administrative, as adjusted(2) $2.44  $2.58  $2.50  $2.55              Total operating costs, as reported $25.76  $28.50  $26.35  $28.66 Total adjusting items  (0.29)  (0.88)  (0.47)  (0.70)Total operating costs, as adjusted(3) $25.47  $27.62  $25.88  $27.96     (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 Nine Months Ended  September 30, September 30,  2025 2024 2025 2024As Reported:            Net (loss) income available to common stockholders - diluted (1) $(15,014) $5,587  $(24,285) $(33,219)             Impact of Selected Items:            Unrealized loss (gain) on derivatives contracts:            Crude oil $841  $(27,037) $(21,485) $(10,467)Natural gas  (1,885)  (1,054)  1,365   (2,297)Total mark-to-market non-cash charge  (1,044)  (28,091)  (20,120)  (12,764)Change in fair value of embedded derivative liability  —   41   —   (1,323)Non-recurring charges  324   978   1,546   2,299 Selected items, before income taxes  (720)  (27,072)  (18,574)  (11,788)Income tax effect of selected items  —   —   —   — Selected items, net of tax  (720)  (27,072)  (18,574)  (11,788)             Net loss available to common stockholders, as adjusted (2) $(15,734) $(21,485) $(42,859) $(45,007)             Diluted net (loss) income per common share, as reported $(0.91) $0.34  $(1.48) $(2.02)Impact of selected items  (0.05)  (1.65)  (1.12)  (0.71)Diluted net loss per common share, excluding selected items (2)(3) $(0.96) $(1.31) $(2.60) $(2.73)                          Net cash provided by (used in) operating activities $27,973  $(5,072) $50,909  $28,669 Changes in working capital  (15,145)  10,970   (19,064)  (9,400)Cash flows from operations before changes in working capital  12,828   5,898   31,845   19,269 Cash components of selected items  (289)  2,854   1,470   3,401 Income tax effect of selected items  —   —   —   — Cash flows from operations before changes in working capital, adjusted for selected items (1) $12,539  $8,752  $33,315  $22,670     (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 15, Earnings Per Share in our Form 10-K for the year ended December 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 September 30, 2025 and 2024 were calculated based upon weighted average diluted shares of 16.5 million due to the net (loss) income available to common stockholders, excluding selected items.   BATTALION OIL CORPORATIONADJUSTED EBITDA RECONCILIATION (Unaudited)(In thousands)               Three Months Ended Nine Months Ended  September 30, September 30,  2025 2024 2025 2024             Net (loss) income, as reported $(735) $21,628  $10,084  $(9,680)Impact of adjusting items:            Interest expense  7,318   6,873   21,848   22,874 Depletion, depreciation and accretion  13,522   12,533   40,541   38,771 Stock-based compensation  —   5   48   140 Interest income  (503)  (509)  (1,846)  (1,844)Unrealized gain on derivatives contracts  (1,044)  (28,091)  (20,120)  (12,764)Change in fair value of embedded derivative liability  —   41   —   (1,323)Non-recurring charges and other  324   978   1,546   2,299 Adjusted EBITDA(1) $18,882  $13,458  $52,101  $38,473     (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  September 30, 2025 June 30,2025 March 31, 2025 December 31, 2024             Net (loss) income, as reported $(735) $4,796  $6,023  $(22,202)Impact of adjusting items:            Interest expense  7,318   7,341   7,189   6,135 Depletion, depreciation and accretion  13,522   13,939   13,080   14,155 Impairment of contract asset  —   —   —   18,511 Stock-based compensation  —   —   48   12 Interest income  (503)  (764)  (579)  (278)Loss on extinguishment of debt  —   —   —   7,489 Unrealized (gain) loss on derivatives contracts  (1,044)  (7,248)  (11,828)  1,648 Change in fair value of embedded derivative liability  —   —   —   (761)Merger Termination Payment  —   —   —   (10,000)Non-recurring charges and other  324   73   1,149   3,310 Adjusted EBITDA(1) $18,882  $18,137  $15,082  $18,019              Adjusted LTM EBITDA(1) $70,120              (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  September 30, 2024 June 30,2024 March 31, 2024 December 31, 2023             Net income (loss), as reported $21,628  $(105) $(31,203) $32,688 Impact of adjusting items:            Interest expense  6,873   7,610   8,391   8,917 Depletion, depreciation and accretion  12,533   13,213   13,025   12,337 Stock-based compensation  5   36   99   161 Interest income  (509)  (634)  (701)  (525)Unrealized (gain) loss on derivatives contracts  (28,091)  (4,434)  19,761   (45,403)Change in fair value of embedded derivative liability  41   (436)  (928)  529 Non-recurring charges and other  978   384   937   1,268 Adjusted EBITDA(1) $13,458  $15,634  $9,381  $9,972              Adjusted LTM EBITDA(1) $48,445              (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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