Battalion Oil(US:BATL)2024-08-14 20:31Production 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].