Battalion Oil Corporation reported a net loss of $31.9 million for the fiscal year ending December 31, 2024, compared to a loss of $3.0 million in the previous year. The company's total operating revenues decreased to $193.9 million from $220.8 million in 2023, primarily due to lower production volumes and reduced average realized prices for oil and natural gas. Average daily production fell to 12,667 barrels of oil equivalent per day (Boe/d) from 13,784 Boe/d in 2023, reflecting the impact of natural production declines and the timing of new well completions.
In terms of financial performance, Battalion's revenues from oil sales were $174.6 million, down from $183.6 million in 2023, while natural gas revenues turned negative at $(2.2 million) compared to $11.1 million the previous year. The average price per barrel of crude oil decreased to $73.89 from $76.04, while natural gas prices fell significantly, resulting in a negative average price of $(0.28) per thousand cubic feet (Mcf) due to increased deducts and differential costs. The company’s total proved reserves as of December 31, 2024, were approximately 64.9 million barrels of oil equivalent (MMBoe), a decrease from 68.1 MMBoe in 2023, attributed to production and negative revisions due to lower pricing.
Strategically, Battalion Oil executed a significant refinancing of its debt through a new term loan agreement on December 26, 2024, which provided $162 million in initial funding and an additional $63 million in incremental loans. This refinancing was aimed at repaying previous debts and improving liquidity. The company also recognized a loss of $7.5 million on extinguishment of debt related to this refinancing. Additionally, Battalion entered into a joint venture for an acid gas treatment facility, which has faced operational challenges and resulted in an impairment charge of $18.5 million.
Looking ahead, Battalion Oil aims to enhance its production and reserves through continued development of its Delaware Basin assets, where it holds approximately 40,476 net acres. The company plans to drill new wells and improve operational efficiencies while maintaining adequate liquidity to support its capital expenditures. However, it faces challenges including fluctuating commodity prices, regulatory risks, and the need to comply with financial covenants under its new loan agreement. The company is also exploring strategic options to bolster its financial position, including potential asset sales and further equity raises.
About BATTALION OIL CORP
About 10-K Filings
A 10-K form is a comprehensive annual report that public companies in the United States must file with the SEC, providing a detailed overview of the company's financial condition, performance, and business strategies.
Key points about the 10-K:
- Frequency: Filed annually, typically within 60 to 90 days after the end of the company's fiscal year.
-
Content: It includes:
- Detailed financial statements audited by an independent accounting firm
- Management's Discussion and Analysis (MD&A) of financial condition and results
- Description of the company's business, properties, and legal proceedings
- Risk factors and market risks
- Executive compensation and corporate governance information
- Importance: Considered the most comprehensive and important document a public company files with the SEC.
- Length: Often exceeds 100 pages due to its extensive and detailed nature.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.