Battalion Oil(US:BATL)2025-11-13 21:50Financial Performance - The company generated a net income of $10.1 million for the nine months ended September 30, 2025[137]. - Operating revenues for the three months ended September 30, 2025, were $43.4 million, a decrease from $45.1 million in the same period of 2024, primarily due to lower average realized prices[164]. - Oil, natural gas, and NGLs revenues decreased to $133.3 million for the nine months ended September 30, 2025, down from $143.7 million in 2024, primarily due to lower average realized prices and production volumes[165]. - Average production was 12,396 Boe per day for the nine months ended September 30, 2025, compared to 12,639 Boe per day in 2024, reflecting a decrease in production[165]. - Average daily production for the three months ended September 30, 2025, was 12,293 Boe, compared to 12,076 Boe for the same period in 2024[164]. - Net derivative gain for the nine months ended September 30, 2025, was $26.0 million, compared to $3.9 million in 2024[176]. Financial Position - The company had negative working capital of $3.9 million at September 30, 2025[139]. - The company continues to report negative stockholders' equity of $(20.3) million as of September 30, 2025, along with ongoing losses from continuing operations[144]. - As of March 31, 2025, the company reported stockholders' equity of $(1.8) million, failing to meet NYSE American's listing standards requiring $2 million or more due to losses in three of the last four fiscal years[144]. - The company had $50.5 million in cash and cash equivalents as of September 30, 2025[139]. Debt and Liabilities - The company is required to maintain an Asset Coverage Ratio of at least 1.85x through December 31, 2026[138]. - The Total Net Leverage Ratio must not exceed 2.50x as of September 30, 2025[138]. - The company is required to make total debt repayments of $22.5 million through September 2026 under its 2024 Amended Term Loan Agreement[150]. - Scheduled amortization payments under the 2024 Amended Term Loan Agreement total $5.6 million for the remainder of 2025 and $22.5 million in 2026[132]. - The company recognized a loss on extinguishment of debt amounting to $7.5 million for the year ended December 31, 2024[133]. - Interest expense totaled $20.0 million for the nine months ended September 30, 2025, slightly up from $19.8 million in 2024, with a weighted average interest rate of approximately 12.20%[177]. Operational Activities - For the nine months ended September 30, 2025, cash flows provided by operating activities increased to $50.9 million from $28.7 million in the same period of 2024, driven by changes in working capital[153]. - Net cash flows used in investing activities for the nine months ended September 30, 2025, were approximately $70.0 million, primarily for drilling and completion activities[154]. - The company spent $69.6 million on oil and natural gas capital expenditures during the nine months ended September 30, 2025, with $59.9 million allocated to drilling and completion costs[155]. Cost Management - Lease operating expenses for the nine months ended September 30, 2025, were $33.4 million, slightly down from $34.2 million in 2024, with a per unit cost of $9.88 per Boe[166]. - Workover and other expenses increased to $4.6 million for the nine months ended September 30, 2025, up from $3.1 million in 2024, with a per unit cost of $1.35 per Boe[167]. - Taxes other than income were $7.9 million for the nine months ended September 30, 2025, down from $8.9 million in 2024, with a per unit cost of $2.35 per Boe[168]. - Gathering and other expenses decreased to $33.2 million for the nine months ended September 30, 2025, from $41.9 million in 2024, with a per unit cost of $9.80 per Boe[169][171]. - General and administrative expenses were $10.0 million for the nine months ended September 30, 2025, down from $11.1 million in 2024, with a per unit cost of $2.96 per Boe[172]. Strategic Initiatives - The company is exploring strategic transactions to improve liquidity and reduce expenses[143]. - The cessation of operations at the WAT facility has increased processing costs and decreased production and revenue[134]. - The company hedges approximately 85% to 50% of its anticipated oil and natural gas production on a rolling basis for the next four years[131].