Battalion Oil Corporation Announces Third Quarter 2024 Financial and Operating Results

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].