Battalion Oil Corporation Reports Robust Financial Outcomes
Battalion Oil Corporation announced its financial and operational results for the second quarter of 2025, demonstrating solid performance amid challenging market dynamics.
Quarterly Highlights
During the second quarter of 2025, Battalion reported impressive sales volumes, achieving 12,989 barrels of oil equivalent per day (49% oil). This accomplishment highlights the ongoing efforts to enhance operational efficiency and reduce capital expenditures per well significantly. The company successfully completed drilling operations on the last two wells of a six-well plan in the West Quito area, bringing both wells online on July 5, 2025. These operations were completed ahead of the estimated timelines and well under budget, showcasing the efficacy of the company’s drilling strategy.
Changes to Operations
In a recent development, Battalion’s acid gas injection (AGI) facility ceased operations effective August 11, 2025, due to economic concerns about its viability. In light of this, the company is taking steps to temporarily shut in some production at its Monument Draw field while transitioning gas production to more accessible processing options available near its operations.
Operational Results
The company's daily net production for the second quarter 2025 came in at 12,989 Boe/d with total operating revenue recorded at approximately $42.8 million. Comparing this to the previous year's quarter, where production was 12,857 Boe/d with a revenue of $49.1 million, it is vital to note the decrease in revenue largely stemmed from a $5.93 decline per Boe in realized prices, offset by a nearly 132 Boe/d increase in production rates. Furthermore, Battalion realized approximately 98% of the average NYMEX oil price during this period, with hedge gains approximating $4.3 million.
Financial Overview
Lease operating expenses, including workover costs, were reported at $10.98 per Boe for Q2 2025 compared to $10.22 in Q2 2024, reflecting an increase attributed to heightened workover activities. Comparatively, gathering and other expenses decreased to $9.27 per Boe from $10.36, mainly due to operational enhancements at production facilities leading to reduced labor and repair costs. General and administrative expenses showed a significant decrease to $2.17 per Boe from $2.85 in the prior year, largely due to lower merger costs. When viewed excluding non-recurring charges, these figures are slightly adjusted to $2.11 and $2.49 per Boe, respectively.
Net Income Perspective
For Q2 2025, Battalion reported a net loss available to common stockholders of $3.5 million, translating to a net loss of $0.21 per share. Interestingly, when adjusting for notable items, this loss adjusted to $10.6 million or $0.65 per share. The adjusted EBITDA for the quarter rounded off with an increase to $18.1 million from $15.6 million recorded in Q2 2024, illustrating robust operational performance against a backdrop of fluctuating pricing.
Liquidity Position
The company concluded the quarter with significant resources, holding $219.4 million in term loan indebtedness alongside $44.6 million in cash and cash equivalents, highlighting a healthy liquidity position. For further insights into liquidity and financial status and to continuously monitor operational evolutions, stakeholders are encouraged to reference the comprehensive quarterly financial reports.
About Battalion Oil Corporation
Battalion Oil Corporation is an independent energy company proactively engaged in the acquisition, exploration, and development of onshore oil and natural gas properties within the United States. The organization's commitment to operational excellence and strategic resource management continues to drive forward its mission of sustainable energy production.
Contact Information
Matthew B. Steele
Chief Executive Officer & Principal Financial Officer
Phone: 832-538-0300
Frequently Asked Questions
What were Battalion Oil Corporation's sales volumes in Q2 2025?
The company achieved sales volumes of 12,989 barrels of oil equivalent per day, with 49% being oil.
What factors contributed to the net loss reported for Q2 2025?
The net loss of $3.5 million was mainly due to a decrease in average realized prices amid operational costs and production dynamics.
How was the adjusted EBITDA for Q2 2025 compared to the previous year?
Adjusted EBITDA for Q2 2025 was reported at $18.1 million, an increase from the $15.6 million reported in the same quarter of 2024.
What actions is Battalion pursuing regarding the AGI facility's closure?
In response to the AGI facility's closure, the company is temporarily shutting in certain production areas while seeking alternative gas processing solutions.
Who can investors contact for more information?
Investors can reach out to Matthew B. Steele, the CEO, via phone at 832-538-0300 for further inquiries.
