Battalion Oil(US:BATL)2025-11-13 21:47Production and Revenue - Average daily net production for Q3 2025 was 12,293 Boe/d (53% oil), a slight increase from 12,076 Boe/d (52% oil) in Q3 2024[5] - Total operating revenue for Q3 2025 was $43.5 million, down from $45.3 million in Q3 2024, primarily due to a $2.24 decrease per Boe in average realized prices[5] - Average daily production for the nine months ended September 30, 2025, was 12,396 Boe/d, a decrease of 1.9% from 12,639 Boe/d in the same period of 2024[21] - Crude oil production volumes for the three months ended September 30, 2025, were 599 MBbls, a 3.8% increase from 577 MBbls in the same period of 2024[21] - The average price of crude oil per Bbl for the three months ended September 30, 2025, was $63.98, down 13.5% from $73.73 in the same period of 2024[21] Financial Performance - The company reported a net loss available to common stockholders of $15.0 million, equating to a net loss of $0.91 per share for Q3 2025[9] - The company experienced a net loss of $735,000 for the three months ended September 30, 2025, compared to a net income of $21,628,000 for the same period in 2024, indicating a substantial decline in profitability[19] - Battalion Oil's total stockholders' equity showed a deficit of $20,250,000 as of September 30, 2025, compared to a positive equity of $4,120,000 at the end of 2024[17] - For the three months ended September 30, 2025, the net loss available to common stockholders was $(15,014) thousand, compared to a net income of $5,587 thousand for the same period in 2024[24] - The diluted net loss per common share, as reported, was $(0.91) for the three months ended September 30, 2025, compared to earnings of $0.34 per share in 2024[24] Expenses and Costs - Lease operating and workover expense was $11.69 per Boe in Q3 2025, compared to $11.56 per Boe in Q3 2024[6] - General and administrative expenses decreased to $2.73 per Boe in Q3 2025 from $3.46 per Boe in Q3 2024, primarily due to lower merger costs[8] - The company incurred oil and natural gas capital expenditures of $69,573,000 for the nine months ended September 30, 2025, compared to $51,778,000 in the same period of 2024, representing a 34% increase[19] Cash Flow and Assets - Battalion Oil's cash flows from operating activities for the nine months ended September 30, 2025, were $50,909,000, up from $28,669,000 in the prior year, reflecting a 77% increase[19] - Net cash provided by operating activities for the three months ended September 30, 2025, was $27,973 thousand, a significant increase from $(5,072) thousand in the same period of 2024[24] - As of September 30, 2025, Battalion Oil Corporation reported total current assets of $84,269,000, a significant increase from $54,052,000 as of December 31, 2024, representing a 56% growth[17] Derivatives and Financial Instruments - Battalion realized 98.3% of the average NYMEX oil price during Q3 2025, with realized hedge gains totaling approximately $4.1 million[5] - The cash effect of derivative contracts for crude oil per Bbl was $1.48 for the three months ended September 30, 2025, compared to $(10.21) in the same period of 2024, indicating a significant improvement[21] - The total mark-to-market non-cash charge for the three months ended September 30, 2025, was $(1,044) thousand, compared to $(28,091) thousand in the same period of 2024[24] - The unrealized gain on derivatives contracts for the three months ended September 30, 2025, was $(1,044) thousand, compared to an unrealized loss of $(28,091) thousand in 2024[29] - The company experienced a change in fair value of embedded derivative liability of $41 thousand for the three months ended September 30, 2025, compared to a loss of $(1,323) thousand in 2024[29] Operational Changes - The company has entered into an amendment of its existing credit facility, providing additional operational flexibility[7] - Approximately 1,600 barrels of oil per day remain shut-in across Monument Draw, ready to flow to sales[4] - The AGI facility ceased operations on August 11, 2025, and the company has redirected gas production to alternative processing options[4] Adjusted Metrics - Adjusted EBITDA for Q3 2025 was $18.9 million, an increase from $13.5 million in Q3 2024[9] - Adjusted EBITDA for the three months ended September 30, 2025, was $18,882 thousand, an increase from $13,458 thousand in the same period of 2024, representing a 40.5% year-over-year growth[29]