Production Performance - Average daily net production for Q3 2024 was 12,076 Boe/d (52% oil), a decrease from 12,717 Boe/d (46% oil) in Q3 2023[4] - Crude oil production increased to 577 MBbls in Q3 2024 from 539 MBbls in Q3 2023, representing a growth of 7.1%[18] - Natural gas production decreased to 1,844 MMcf in Q3 2024 from 2,054 MMcf in Q3 2023, a decline of 10.2%[18] - Total production volumes for Q3 2024 were 1,111 MBoe, down from 1,170 MBoe in Q3 2023, a decrease of 5.0%[18] - The Glacier and Rio pads continue to perform above expectations, with cumulative production averaging 370 Mboe (64% oil) and 132 Mboe (86% oil) respectively[3] Financial Performance - Total operating revenue for Q3 2024 was $45.3 million, down from $54.1 million in Q3 2023, primarily due to a $5.07 decrease in average realized prices[4] - The company reported a net income of $5.6 million or $0.34 per share for Q3 2024, with an adjusted diluted net loss of $21.5 million or $1.31 per share[5] - Net income for the three months ended September 30, 2024, was $21,628, compared to a net loss of $53,799 for the same period in 2023[15] - Net income available to common stockholders for Q3 2024 was $5.587 million, compared to a net loss of $57.662 million in Q3 2023[19] - The company reported a basic net income per share of $0.34 for the three months ended September 30, 2024, compared to a loss of $3.50 per share in the same period of 2023[15] Expenses and Costs - Lease operating and workover expense increased to $11.56 per Boe in Q3 2024 from $10.13 per Boe in Q3 2023, attributed to inflationary market increases[5] - Total operating expenses for the three months ended September 30, 2024, were $44,212, down from $47,289 in the same period of 2023, a decrease of 4.6%[15] - Total operating costs, as reported, were $28.50 per Boe in Q3 2024, slightly down from $28.94 per Boe in Q3 2023[18] - The company experienced a decrease in depletion, depreciation, and accretion expenses, which were $12,533 for the three months ended September 30, 2024, compared to $13,426 in the same period of 2023[21] Cash Flow and Liquidity - Total liquidity as of September 30, 2024, was $29.8 million, with $147.8 million of indebtedness outstanding[6] - Cash flows from operating activities showed a net cash used of $5,072 thousand for the three months ended September 30, 2024, compared to a net cash provided of $2,416 thousand in the same period last year[17] - The company reported a net decrease in cash, cash equivalents, and restricted cash of $(24,596) thousand for the three months ended September 30, 2024, compared to an increase of $24,076 thousand in the same period last year[17] - Cash, cash equivalents, and restricted cash at the end of the period were $29,925 thousand, down from $42,680 thousand at the end of the same period in 2023[17] Derivative Contracts and Unrealized Losses - The company reported a net gain on derivative contracts of $26,896 for the three months ended September 30, 2024, compared to a loss of $53,687 in the same period of 2023[15] - The company experienced a significant unrealized loss on derivative contracts of $(28,091) thousand for the three months ended September 30, 2024, compared to a gain of $46,805 thousand in the same period of 2023[17] - Unrealized losses on derivatives contracts were reported at $28,091 for the three months ended September 30, 2024, a significant improvement from unrealized gains of $46,805 in the same period of 2023[21] Strategic Developments - Battalion amended its merger agreement with Fury Resources, reducing the purchase price to $7.00 per share and requiring preferred equity holders to roll over 100% of their equity[2] - The company plans to hold a special meeting of stockholders on November 19, 2024, to vote on the merger agreement with Fury Resources[8] - Battalion Oil Corporation continues to focus on strategic adjustments to enhance financial performance, as indicated by the adjustments made in their EBITDA calculations[21] Adjusted EBITDA - Adjusted EBITDA for Q3 2024 was $13.5 million, slightly down from $13.6 million in Q3 2023[5] - Adjusted EBITDA for the three months ended September 30, 2024, was $13,458, slightly down from $13,625 in the same period of the previous year[21] - For the nine months ended September 30, 2024, Battalion reported an adjusted EBITDA of $38,473, down from $56,543 in the same period of 2023[21] - The company’s adjusted LTM EBITDA was reported at $48,445, indicating a focus on improving operational efficiency[23]

Core Insights - Battalion Oil Corporation reported its financial and operational results for Q3 2024, highlighting a decrease in production and revenue compared to the same period in 2023 [1][5]. Financial Performance - Average daily net production for Q3 2024 was 12,076 Boe/d (52% oil), down from 12,717 Boe/d (46% oil) in Q3 2023 [5][21]. - Total operating revenue for Q3 2024 was $45.3 million, a decrease from $54.1 million in Q3 2023, primarily due to a $5.07 drop in average realized prices and a decrease in production [5][6]. - The company reported a net income available to common stockholders of $5.6 million, or $0.34 per share, compared to a net loss of $57.7 million, or $(3.50) per share, in Q3 2023 [7][24]. Operational Highlights - The acid gas injection (AGI) facility treated approximately 18 MMcf/d on average and processed over 4.6 Bcf of sour gas, leading to expected savings of up to $2 million per month in gas treating costs [4][6]. - The company completed its six-well campaign ahead of schedule and under budget, with capital costs trending lower [3][5]. - The Vermejo two-well pad has been completed and is currently flowing back, with initial rates meeting company expectations [2][3]. Merger Agreement - Battalion amended its merger agreement with Fury Resources, reducing the purchase price to $7.00 per share and requiring existing preferred equity holders to roll over 100% of their preferred equity [2][9]. - A special meeting of stockholders is scheduled for November 19, 2024, to vote on the merger agreement [10]. Liquidity and Balance Sheet - As of September 30, 2024, the company had $147.8 million in outstanding indebtedness and total liquidity of $29.8 million [8][17]. - Current assets decreased to $57.6 million from $90.5 million at the end of 2023, while total assets were reported at $458 million [17][18].

Market Overview - U.S. stocks showed mixed performance with the Nasdaq Composite down more than 0.2% on Friday [1] - The Dow increased by 0.09% to 42,064.34, while the S&P 500 fell by 0.22% to 5,701.29 [1] Company Performance - Lennar Corporation reported better-than-expected financial results for Q3, projecting new orders between 19,000 to 19,300 and deliveries between 22,500 to 23,000 for Q4, with an average sales price of approximately $425,000 [2] - Banzai International, Inc. shares surged 131% to $6.62 following a 1-for-50 reverse stock split [2] - Battalion Oil Corporation shares increased by 120% to $6.48 after amending its merger agreement with Fury Resources for a cash acquisition at $7.00 per share [2] - Constellation Energy Corporation shares rose by 13% to $235.54 after signing a 20-year power purchase agreement with Microsoft [2] Declining Stocks - Corbus Pharmaceuticals Holdings, Inc. shares dropped 59% to $21.12 despite an Outperform rating and a price target of $82 from RBC Capital [3] - Sable Offshore Corp. shares fell 19% to $22.79 after announcing a $150 million private placement [3] - FedEx Corporation shares decreased by 15% to $254.45 due to weaker-than-expected Q1 results and lowered full-year guidance [3] Commodities - Oil prices increased by 0.1% to $72.03, while gold rose by 1.3% to $2,649.40 [4] - Silver prices were up 0.1% to $31.455, and copper fell by 0.4% to $4.33 [4] European Market Insights - European shares declined, with the eurozone's STOXX 600 down 1.34% and Germany's DAX down 1.43% [4] - Spain's trade deficit narrowed to EUR 3.2 billion in July from EUR 4.9 billion year-over-year [4] - The manufacturing climate indicator in France decreased to 98.6 in September from 98.9 [4] Asia Pacific Market Performance - Asian markets closed higher, with Japan's Nikkei 225 gaining 1.53% and Hong Kong's Hang Seng Index up 1.36% [5] - The Reserve Bank of India's foreign exchange reserves reached $689.5 billion as of September 13 [5] - The Bank of Japan maintained its key short-term interest rate at around 0.25% [5]

Core Insights - Two stocks in the energy sector are showing signs of being overbought, which may concern momentum-focused investors [1] Group 1: Brooge Energy Ltd (BROG) - Brooge Energy received a Nasdaq non-compliance letter on June 5 [2] - The stock has increased approximately 82% over the past month, reaching a 52-week high of $6.66 [2] - The RSI value for Brooge Energy is 83.55, indicating it is overbought [2] - On the latest trading day, shares gained 14.9% to close at $1.77 [2] Group 2: Battalion Oil Corp (BATL) - Battalion Oil amended its merger agreement with Fury Resources for an acquisition at $7.00 per share in cash [3] - The stock has risen around 17% over the past month, with a 52-week high of $9.69 [3] - The RSI value for Battalion Oil is 83.48, also indicating it is overbought [3] - On the latest trading day, shares fell 3.6% to close at $2.94 [3]

Core Points - Battalion Oil Corporation has entered into a merger agreement with Fury Resources, Inc., where Fury will acquire all outstanding shares of Battalion's common stock for $7.00 per share in cash [1] - The transaction is expected to close in the fourth quarter of 2024, pending stockholder approval and other closing conditions [2] - Fury Resources has secured capital commitments totaling $200 million in debt, $188 million in preferred stock, and $160 million in equity to facilitate the acquisition [2] Company Overview - Battalion Oil Corporation is an independent energy company focused on the acquisition, production, exploration, and development of onshore oil and natural gas properties in the United States [6] - Fury Resources, Inc. is a privately held exploration and production company targeting value creation through asset acquisition and exploitation in the Permian Basin [7] Shareholder Involvement - Luminus Management and Oaktree Capital Management, owning 61.61% of Battalion's common stock, have agreed to vote in favor of the merger, representing 38% of the total voting power [3] - The Rollover Stockholders will exchange their preferred shares for new preferred shares of Fury, indicating strong institutional support for the transaction [1][4] Management Commentary - Fury's Co-Founder and Chairman expressed confidence in the acquisition, highlighting the potential for rapid scaling and significant returns for investors [4] - Battalion's CEO acknowledged the efforts of both teams in reaching the merger agreement, emphasizing the focus on achieving the best outcome for shareholders [5]

Core Viewpoint - Battalion Oil Corporation (BATL) is facing challenges in Q2 2024 due to declining production and lower natural gas prices, but has effectively controlled costs and is pursuing strategic initiatives to improve its outlook [1]. Financial Performance - Battalion Oil reported a Q2 2024 loss per share of 80 cents, compared to a loss of 42 cents in the same quarter of 2023 [2]. - Total operating revenues decreased to $49.1 million from $54.3 million year-over-year, primarily due to reduced average daily production and lower natural gas prices [2]. Production Metrics - Average daily production in Q2 2024 was 12,857 barrels of oil equivalent per day (Boe/d), down from 14,253 Boe/d in Q2 2023 [3]. - Oil production fell to 577 thousand barrels (MBbls) from 636 MBbls, while natural gas production decreased from 2,155 MMcf to 1,929 MMcf [3]. Pricing Trends - The average realized price for crude oil increased to $79.20 per barrel from $72.59 per barrel year-over-year [4]. - Natural gas prices dropped significantly to a negative $1.10 per Mcf from 96 cents per Mcf in the prior-year period [4]. - The average realized price for NGLs rose modestly to $20.31 per barrel from $18.73 per barrel [4]. Loss and EBITDA - Battalion Oil reported a net loss of $8.7 million in Q2 2024, widening from a $5.7 million loss in Q2 2023 [5]. - Adjusted EBITDA slightly declined to $15.6 million from $16.8 million year-over-year [5]. Cost Management - The company maintained lease operating expenses effectively, aided by the operationalization of its acid gas injection facility, which reduced operational expenses by $4.26 per Boe [6]. - General and administrative expenses decreased from $4.04 per Boe to $2.85 per Boe due to payroll reductions [6]. Cash and Debt Position - As of June 30, 2024, Battalion Oil had cash and cash equivalents of $54.4 million, down from $57.5 million at the end of 2023 [7]. - Total indebtedness was $160.2 million, with $52.6 million classified as current debt [7]. Management Initiatives - Management emphasized ongoing cost reduction and production efficiency initiatives, including a successful $20 million preferred equity raise to support drilling and debt reduction [8]. Strategic Developments - The company is pursuing a merger with Fury Resources, with discussions ongoing to amend the purchase price from $9.80 to $7 per share [9]. - Battalion Oil completed a six-well drilling campaign ahead of schedule and under budget, with plans for continued drilling in Texas [9].

Financial Performance - The company reported a net loss of $45.5 million for the six months ended June 30, 2024, with a negative working capital of $69.1 million[148]. - Net income for the six months ended June 30, 2024, was a loss of $31.3 million, compared to a profit of $18.1 million in 2023[184]. - Operating revenues for the six months ended June 30, 2024, were $98.6 million, down from $118.2 million in 2023, reflecting a decrease of approximately 16.5%[184]. - Average daily production decreased to 12,857 Boe/d for the three months ended June 30, 2024, from 14,253 Boe/d in 2023, a decline of about 9.8%[185]. - The company recorded a net derivative gain of $1.2 million for Q2 2024, down from a gain of $4.5 million in Q2 2023, while for the first half of 2024, a net derivative loss of $22.9 million was reported compared to a gain of $23.9 million in the same period of 2023[197]. Cash Flow and Liquidity - As of June 30, 2024, the company had $54.4 million in cash and cash equivalents, with no additional borrowing capacity under the Amended Term Loan Agreement[148]. - The company anticipates requiring additional liquidity to continue operations and meet debt obligations over the next 12 months[152]. - Net cash flows provided by operating activities for the six months ended June 30, 2024, were $33.7 million, compared to a net cash outflow of $8.7 million for the same period in 2023[174]. - Cash flows used in investing activities for the six months ended June 30, 2024, were approximately $45.7 million, primarily for drilling and completion activities[175]. - The company is exploring strategic transactions and cost reduction opportunities to maintain liquidity and compliance with debt covenants[157]. Debt and Financing - The company is required to make scheduled payments totaling $62.5 million from September 30, 2024, to September 30, 2025, including $12.5 million due at the end of Q3 2024[149]. - As of June 30, 2024, the company had $160.2 million of indebtedness outstanding and $0.3 million of letters of credit under the Amended Term Loan Agreement[165]. - The weighted average interest rate on borrowings for the quarter ended June 30, 2024, was approximately 12.95%[165]. - The principal amount of term loan debt was $160.2 million as of June 30, 2024, with a weighted average interest rate of 12.98%[203]. - A 10% change in market interest rates would impact the company's cash flows by approximately $2.6 million per year based on the current variable interest rate debt[203]. Capital Expenditures and Investments - Capital expenditures for oil and natural gas totaled $44.8 million for the six months ended June 30, 2024, compared to $32.6 million for the same period in 2023, representing a 37% increase[176][177]. - The company has advanced capital contributions totaling approximately $18.5 million for workover operations at the AGI Facility as of June 30, 2024[142]. - The Acid Gas Injection facility has processed over 2.1 Bcf of gas since becoming operational on March 9, 2024, despite facing delays and higher costs[143]. Operational Efficiency - Lease operating expenses increased to $9.41 per Boe for the three months ended June 30, 2024, compared to $8.76 per Boe in 2023, marking a rise of approximately 7.4%[186]. - Workover and other expenses decreased to $0.81 per Boe for the three months ended June 30, 2024, from $2.03 per Boe in 2023, a reduction of about 60%[187]. - Gathering and other expenses were $12.1 million for the three months ended June 30, 2024, down from $16.8 million in 2023, a decrease of approximately 28.6%[189]. - General and administrative expenses decreased to $3.3 million for Q2 2024 from $6.0 million in Q2 2023, and to $7.3 million for the first half of 2024 from $11.0 million in the same period of 2023, primarily due to reduced payroll and benefits[193]. Strategic Transactions - The company entered into a merger agreement with Fury Resources, with a total transaction value of approximately $450.0 million, converting shares into $9.80 in cash[130]. - The company raised $19.5 million from the sale of Series A-3 Convertible Preferred Stock and an additional $19.5 million from Series A-4 Redeemable Convertible Preferred Stock[135]. - The company has incurred approximately $3.6 million in costs related to the merger as of August 8, 2024[134]. - The company plans to reduce operating and capital costs to improve cash flow and has obtained a support letter from investors to purchase up to $30 million of additional preferred equity securities[152]. Risk Management - The company hedges approximately 50% to 85% of its anticipated oil and natural gas production under its Term Loan Agreement, utilizing various derivative instruments to manage price risk[200]. - The company expects energy prices to remain volatile and has implemented a risk management policy to mitigate the impact of price fluctuations on operations[200]. - The Total Net Leverage Ratio covenant was not in compliance as of March 31, 2024, but was cured by a prepayment of $17.3 million on May 14, 2024[170].

Production and Revenue - Battalion Oil Corporation reported average daily net production of 12,857 Boe/d (49% oil) and total operating revenue of $49.1 million for Q2 2024, compared to 14,253 Boe/d and $54.3 million in Q2 2023, reflecting a decrease in production of approximately 1,396 Boe/d [4]. - Total operating revenues for the six months ended June 30, 2024, were $98,974 million, a decrease of 17.1% compared to $119,414 million for the same period in 2023 [16]. - Total production volumes for crude oil in the three months ended June 30, 2024, were 636 MBbls, a decrease of 7% from 577 MBbls in the same period of 2023 [21]. - Average daily production for the six months ended June 30, 2024, was 12,923 Boe/d, down 15% from 15,221 Boe/d in the same period of 2023 [21]. - Total production of natural gas for the six months ended June 30, 2024, was 4,109 MMcf, a decrease of 10% from 4,562 MMcf in the same period of 2023 [21]. Financial Performance - Battalion's adjusted EBITDA for Q2 2024 was $15.6 million, down from $16.8 million in Q2 2023 [5]. - Adjusted EBITDA for the six months ended June 30, 2024, was $25,016 million, a decrease from $42,918 million in the same period of 2023, reflecting a decline of 41.5% [27]. - The company reported a net loss of $8.7 million or $0.53 per share for Q2 2024, with an adjusted diluted net loss of $13.2 million or $0.80 per share [5]. - For the three months ended June 30, 2024, the net loss available to common stockholders was $(8,691) million, compared to $(5,745) million for the same period in 2023, representing a year-over-year increase in loss of 51.5% [24]. - The company reported a diluted net loss per common share of $(0.53) for the three months ended June 30, 2024, compared to $(0.35) for the same period in 2023, indicating a worsening of 51.4% [24]. Expenses and Costs - Lease operating and workover expenses decreased to $10.22 per Boe in Q2 2024 from $10.79 per Boe in Q2 2023, primarily due to savings on chemicals and lower SWD costs [5]. - Total operating costs, as reported, for the three months ended June 30, 2024, were $26.29 per Boe, a decrease of 13% from $30.25 in the same period of 2023 [21]. - Average cost per Boe for lease operating expenses was $9.41 for the three months ended June 30, 2024, compared to $8.76 in the same period of 2023, indicating an increase of 7.4% [21]. Cash Flow and Liquidity - The company reported a net cash provided by operating activities of $29,824 million for the three months ended June 30, 2024, compared to $9,338 million for the same period in 2023, reflecting a substantial increase of 219.5% [24]. - Cash flows from operations before changes in working capital were $9,212 million for the three months ended June 30, 2024, compared to $8,932 million for the same period in 2023, showing a growth of 3.1% [24]. - Cash used in investing activities for the six months ended June 30, 2024, was $45,706, compared to $31,739 for the same period in 2023, indicating an increase of 44% [20]. - Cash, cash equivalents, and restricted cash at the end of the period for June 30, 2024, totaled $54,521, compared to $18,604 at the end of June 30, 2023 [20]. Debt and Equity - As of June 30, 2024, Battalion had $160.2 million in outstanding indebtedness and total liquidity of $54.4 million [6]. - The company executed a $20.0 million preferred equity raise in May 2024 to support its drilling program and debt reduction [2]. - Total liabilities increased to $155,250 million as of June 30, 2024, compared to $134,416 million as of December 31, 2023 [18]. - Total stockholders' equity decreased to $22,670 million as of June 30, 2024, from $68,021 million as of December 31, 2023 [18]. - Long-term debt, net, decreased to $101,185 million as of June 30, 2024, from $140,276 million as of December 31, 2023 [18]. Mergers and Acquisitions - The proposed merger agreement with Fury Resources has been amended to reduce the purchase price from $9.80 to $7.00 per share, contingent on existing preferred equity holders rolling over their equity [7]. Operational Highlights - The AGI facility treated 1.82 Bcf in Q2 2024, reducing operating expenses by $4.26/Boe compared to Q1 2024, and processed an average of 20 MMcf/d [2][3]. - Battalion plans to complete the next two-well pad in Monument Draw by late Q3 or early Q4 2024, following the successful drilling of two additional wells in Q2 2024 [2][3].

HOUSTON, Aug. 14, 2024 (GLOBE NEWSWIRE) -- Battalion Oil Corporation (NYSE American: BATL, “Battalion” or the “Company”) today announced financial and operating results for the second quarter of 2024. Key Highlights AGI facility online and treated 1.82 Bcf for the second quarter 2024 reducing operating expenses by $4.26/Boe compared to the first quarter 2024On August 12, 2024, the AGI facility processed 26.6 MMcf/d which allowed the Company to return wells to production and realize approximately 7,500 Bbls ...

Core Viewpoint - Kuehn Law, PLLC is investigating potential claims related to proposed mergers to ensure that shareholder interests are protected and that the boards of the involved companies acted in a manner that maximizes shareholder value and disclosed all material information [1][2]. Group 1: Proposed Mergers - Battalion Oil Corporation is set to be acquired by Fury Resources, Inc. for $9.80 per share in cash [2]. - Dri-Quip, Inc. will be acquired by Innovex Downhole Solutions, Inc., with Dri-Quip stockholders expected to own approximately 52% of the combined company post-transaction [2]. - Perficient, Inc. has agreed to sell to an affiliate of BPEA Private Equity Fund VIII for $76.00 per share in cash [2]. - Reneo Pharmaceuticals, Inc. is merging with OnKure, Inc., with Reneo shareholders anticipated to own about 31% of the combined entity [2]. Group 2: Shareholder Involvement - Kuehn Law emphasizes the importance of shareholder participation in maintaining the integrity and fairness of financial markets, encouraging concerned shareholders to get involved [3]. - The firm covers all case costs and does not charge its investor clients, urging shareholders to act promptly due to the time-sensitive nature of legal rights [3].