Battalion Oil Corporation reported a decline in operating revenues for the three months ended September 30, 2024, totaling $45.3 million, down from $54.1 million in the same period of 2023. For the nine months ended September 30, 2024, revenues were $144.2 million, compared to $173.5 million in 2023. The decrease in revenue is attributed to lower average realized prices and production volumes, with average realized prices falling by approximately $5.07 per barrel of oil equivalent (Boe) for the third quarter and $2.22 per Boe for the nine-month period.

Total sales of oil, natural gas, and natural gas liquids for the third quarter of 2024 were $45.1 million, down from $53.4 million in 2023, while year-to-date sales decreased from $171.6 million to $143.7 million. Production averaged 12,076 Boe per day in Q3 2024, a decrease from 12,717 Boe per day in Q3 2023.

Despite the revenue decline, Battalion Oil reported a net income of $21.6 million for the third quarter of 2024, a significant turnaround from a net loss of $53.8 million in the same quarter of 2023. For the nine months ended September 30, 2024, the company recorded a net loss of $9.7 million, an improvement from a loss of $35.7 million in the prior year. The net gain on derivative contracts contributed positively, with a gain of $26.9 million in Q3 2024 compared to a loss of $53.7 million in Q3 2023.

As of September 30, 2024, Battalion Oil's cash and cash equivalents stood at $29.8 million, a decrease from $57.5 million at the end of 2023. The company has been actively managing its debt, with long-term debt reduced to $92.7 million from $140.3 million at the end of 2023. The total debt outstanding under the Amended Term Loan Agreement was $147.7 million, with a weighted average interest rate of approximately 12.98%.

Strategically, Battalion Oil is focused on cost reduction measures to improve cash flow and has received support letters from its largest investors for additional preferred equity securities. The company is also navigating a merger agreement with Fury Resources, Inc., which has been amended to adjust the cash consideration for common stock from $9.80 to $7.00 per share. A special meeting for stockholders to vote on the merger is scheduled for November 19, 2024.