Key Highlights
- Approximately 41,000 net acres, 91% HBP in three contiguous blocks across
Ward ,Winkler andPecos Counties with substantial remaining location inventory - Brought previously announced AGI project online in Q1 2024 treating over 20 MMcf/d
- Recommenced drilling operations in Monument Draw in Q4 2023 to execute a six well program
- Completed two wells in Q4 2023, brought online in Q1 2024 under budget with strong initial results
- Drilled two additional wells in Q1 2024, currently completing
- Commenced drilling operations on two additional wells in Q1 2024, currently drilling ahead
- Generated full year sales volumes of 13,784 barrels of oil equivalent per day (“Boe/d”) (48% oil)
- Year-end 2023 reserves of approximately 68.1 million barrels of oil equivalent (“MMBoe”) with a standardized measure of discounted future net cash flows of approximately
$598.5 million . - Executed a
$35.0 million preferred equity raise inDecember 2023 and an additional$20.0 million preferred equity raise inMarch 2024 to support drilling program - Continuing strategic alternatives initiative and are working toward closing our previously announced merger agreement with Fury Resources
Management Comments
During Q4 2023, following the preferred equity raise, the Company re-commenced its drilling operations in Monument Draw after operating a three-well pad on non-operated acreage adjacent to the asset. The company also prepared additional locations across all three asset areas to support additional activity in
During the fourth quarter, workover operations for the acid gas injection (“AGI”) project were substantially completed. Since that time, the facility has restarted operations and began taking acid gas from the Company with approximately 200 MMcf being recently treated at AGI and approximately 175 MMcf of sweet gas being returned to the Company for sales to our midstream partner. As the facility continues to come online, the Company will benefit from the return to production of currently curtailed volumes of up to 750Bbl/d. Additionally, when the AGI is operating at full capacity, we expect to save up to
Results of Operations
Average daily net production and total operating revenue during the fourth quarter of 2023 were 12,022 Boe/d (46% oil) and
Lease operating and workover expense was
For the fourth quarter of 2023, the Company reported a net income available to common stockholders of
Liquidity and Balance Sheet
As of
On
For further discussion on our liquidity and balance sheet, as well as recent developments, refer to Management’s Discussion and Analysis and Risk Factors in the Company’s Form 10-K.
Important Information for Investors and Stockholders
This communication is being made in respect of the proposed transaction involving the Company and
Participants in Solicitation
The Company and its directors, executive officers, other members of its management and employees may be deemed to be participants in the solicitation of proxies of the Company stockholders in connection with the proposed transaction under
Forward Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that are not strictly historical statements constitute forward-looking statements. Forward-looking statements include, among others, statements about anticipated production, liquidity, capital spending, drilling and completion plans, and forward guidance. Forward-looking statements may often, but not always, be identified by the use of such words such as "expects", "believes", "intends", "anticipates", "plans", "estimates", “projects,” "potential", "possible", or "probable" or statements that certain actions, events or results "may", "will", "should", or "could" be taken, occur or be achieved. Forward-looking statements are based on current beliefs and expectations and involve certain assumptions or estimates that involve various risks and uncertainties that could cause actual results to differ materially from those reflected in the statements. These risks include, but are not limited to, those set forth in the Company's Annual Report on Form 10-K for the fiscal year ended
About Battalion
Contact
Chief Executive Officer & Principal Financial Officer
832-538-0300
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share amounts) | ||||||||||||||||
Three Months Ended | Years Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Operating revenues: | ||||||||||||||||
Oil, natural gas and natural gas liquids sales: | ||||||||||||||||
Oil | $ | 39,562 | $ | 60,816 | $ | 183,634 | $ | 267,690 | ||||||||
Natural gas | 2,429 | 6,914 | 11,057 | 46,210 | ||||||||||||
Natural gas liquids | 4,921 | 8,267 | 23,814 | 43,501 | ||||||||||||
Total oil, natural gas and natural gas liquids sales | 46,912 | 75,997 | 218,505 | 357,401 | ||||||||||||
Other | 330 | 805 | 2,257 | 1,663 | ||||||||||||
Total operating revenues | 47,242 | 76,802 | 220,762 | 359,064 | ||||||||||||
Operating expenses: | ||||||||||||||||
Production: | ||||||||||||||||
Lease operating | 10,656 | 12,397 | 44,864 | 48,095 | ||||||||||||
Workover and other | 2,480 | 1,876 | 7,149 | 6,683 | ||||||||||||
Taxes other than income | 2,266 | 2,547 | 11,943 | 18,483 | ||||||||||||
Gathering and other | 14,718 | 16,330 | 63,575 | 64,117 | ||||||||||||
General and administrative | 5,453 | 3,564 | 19,025 | 17,635 | ||||||||||||
Depletion, depreciation and accretion | 12,337 | 15,479 | 56,624 | 51,915 | ||||||||||||
Total operating expenses | 47,910 | 52,193 | 203,180 | 206,928 | ||||||||||||
(Loss) income from operations | (668 | ) | 24,609 | 17,582 | 152,136 | |||||||||||
Other income (expenses): | ||||||||||||||||
Net gain (loss) on derivative contracts | 42,430 | (21,872 | ) | 12,689 | (110,006 | ) | ||||||||||
Interest expense and other | (9,074 | ) | (10,389 | ) | (33,319 | ) | (23,591 | ) | ||||||||
Total other income expenses | 33,356 | (32,261 | ) | (20,630 | ) | (133,597 | ) | |||||||||
Income (loss) before income taxes | 32,688 | (7,652 | ) | (3,048 | ) | 18,539 | ||||||||||
Income tax benefit (provision) | — | — | — | — | ||||||||||||
Net income (loss) | $ | 32,688 | $ | (7,652 | ) | $ | (3,048 | ) | $ | 18,539 | ||||||
Series A preferred dividends | (5,695 | ) | — | (12,047 | ) | — | ||||||||||
Net income (loss) available to common stockholders | $ | 26,993 | $ | (7,652 | ) | $ | (15,095 | ) | $ | 18,539 | ||||||
Net income (loss) per share of common stock: | ||||||||||||||||
Basic | $ | 1.64 | $ | (0.47 | ) | $ | (0.92 | ) | $ | 1.14 | ||||||
Diluted | $ | 1.63 | $ | (0.47 | ) | $ | (0.92 | ) | $ | 1.12 | ||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 16,457 | 16,345 | 16,441 | 16,331 | ||||||||||||
Diluted | 16,517 | 16,345 | 16,441 | 16,510 | ||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share and per share amounts) | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 57,529 | $ | 32,726 | ||||
Accounts receivable, net | 23,021 | 37,974 | ||||||
Assets from derivative contracts | 8,992 | 16,244 | ||||||
Restricted cash | 90 | 90 | ||||||
Prepaids and other | 907 | 1,131 | ||||||
Total current assets | 90,539 | 88,165 | ||||||
Oil and natural gas properties (full cost method): | ||||||||
Evaluated | 755,482 | 713,585 | ||||||
Unevaluated | 58,909 | 62,621 | ||||||
Gross oil and natural gas properties | 814,391 | 776,206 | ||||||
Less - accumulated depletion | (445,975 | ) | (390,796 | ) | ||||
Net oil and natural gas properties | 368,416 | 385,410 | ||||||
Other operating property and equipment: | ||||||||
Other operating property and equipment | 4,640 | 4,434 | ||||||
Less - accumulated depreciation | (1,817 | ) | (1,209 | ) | ||||
Net other operating property and equipment | 2,823 | 3,225 | ||||||
Other noncurrent assets: | ||||||||
Assets from derivative contracts | 4,877 | 5,379 | ||||||
Operating lease right of use assets | 1,027 | 352 | ||||||
Other assets | 17,656 | 2,827 | ||||||
Total assets | $ | 485,338 | $ | 485,358 | ||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 66,525 | $ | 100,095 | ||||
Liabilities from derivative contracts | 17,191 | 29,286 | ||||||
Current portion of long-term debt | 50,106 | 35,067 | ||||||
Operating lease liabilities | 594 | 352 | ||||||
Asset retirement obligations | — | 225 | ||||||
Total current liabilities | 134,416 | 165,025 | ||||||
Long-term debt, net | 140,276 | 182,676 | ||||||
Other noncurrent liabilities: | ||||||||
Liabilities from derivative contracts | 16,058 | 33,649 | ||||||
Asset retirement obligations | 17,458 | 15,244 | ||||||
Operating lease liabilities | 490 | — | ||||||
Other | 2,084 | 4,136 | ||||||
Commitments and contingencies | ||||||||
Temporary equity: | ||||||||
Series A redeemable convertible preferred stock: 98,000 shares of | 106,535 | — | ||||||
par value authorized, issued and outstanding as of | ||||||||
Stockholders' equity: | ||||||||
Common stock: 100,000,000 shares of | ||||||||
16,456,563 and 16,344,815 shares issued and outstanding as of | ||||||||
2 | 2 | |||||||
Additional paid-in capital | 321,012 | 334,571 | ||||||
Accumulated deficit | (252,993 | ) | (249,945 | ) | ||||
Total stockholders' equity | 68,021 | 84,628 | ||||||
Total liabilities and stockholders' equity | $ | 485,338 | $ | 485,358 | ||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) | ||||||||||||||||
Three Months Ended | Years Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income (loss) | $ | 32,688 | $ | (7,652 | ) | $ | (3,048 | ) | $ | 18,539 | ||||||
Adjustments to reconcile net (loss) income to net cash provided by | ||||||||||||||||
operating activities: | ||||||||||||||||
Depletion, depreciation and accretion | 12,337 | 15,479 | 56,624 | 51,915 | ||||||||||||
Stock-based compensation, net | 161 | 670 | (1,070 | ) | 2,210 | |||||||||||
Unrealized gain on derivative contracts | (45,403 | ) | 3,655 | (21,934 | ) | (20,256 | ) | |||||||||
Amortization/accretion of financing related costs | 1,826 | 2,722 | 7,615 | 5,448 | ||||||||||||
Reorganization items, net | — | — | — | (744 | ) | |||||||||||
Accrued settlements on derivative contracts | (2,587 | ) | (3,191 | ) | 259 | 4,302 | ||||||||||
Change in fair value of embedded derivative liability | 530 | 1,224 | (2,052 | ) | (1,819 | ) | ||||||||||
Other expense (income) | 214 | 51 | 358 | (77 | ) | |||||||||||
Cash flow from operations before changes in working capital | (234 | ) | 12,958 | 36,752 | 59,518 | |||||||||||
Changes in working capital | 6,758 | 12,029 | (19,163 | ) | 19,283 | |||||||||||
Net cash provided by operating activities | 6,524 | 24,987 | 17,589 | 78,801 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Oil and natural gas capital expenditures | (16,196 | ) | (38,467 | ) | (46,288 | ) | (125,465 | ) | ||||||||
Proceeds received from sales of oil and natural gas assets | 3,740 | 331 | 4,929 | 332 | ||||||||||||
Other operating property and equipment capital expenditures | (17 | ) | (211 | ) | (153 | ) | (1,160 | ) | ||||||||
Contract asset | (3,705 | ) | — | (10,308 | ) | — | ||||||||||
Other | 1,439 | (3 | ) | (25 | ) | 163 | ||||||||||
Net cash used in investing activities | (14,739 | ) | (38,350 | ) | (51,845 | ) | (126,130 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from borrowings | — | 15,078 | - | 35,200 | ||||||||||||
Repayments of borrowings | (10,027 | ) | (10 | ) | (35,093 | ) | (95 | ) | ||||||||
Payment of deferred financing costs | — | (2,508 | ) | — | (2,887 | ) | ||||||||||
Proceeds from issuance of preferred stock | 33,182 | — | 94,607 | - | ||||||||||||
Other | (1 | ) | 60 | (455 | ) | (432 | ) | |||||||||
Net cash provided by financing activities | 23,154 | 12,620 | 59,059 | 31,786 | ||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 14,939 | (743 | ) | 24,803 | (15,543 | ) | ||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 42,680 | 33,559 | 32,816 | 48,359 | ||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 57,619 | $ | 32,816 | $ | 57,619 | $ | 32,816 | ||||||||
SELECTED OPERATING DATA (Unaudited) | ||||||||||||||||
Three Months Ended | Years Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Production volumes: | ||||||||||||||||
Crude oil (MBbls) | 510 | 740 | 2,415 | 2,837 | ||||||||||||
Natural gas (MMcf) | 2,102 | 2,315 | 8,718 | 9,337 | ||||||||||||
Natural gas liquids (MBbls) | 246 | 318 | 1,163 | 1,242 | ||||||||||||
Total (MBoe) | 1,106 | 1,444 | 5,031 | 5,635 | ||||||||||||
Average daily production (Boe/d) | 12,022 | 15,696 | 13,784 | 15,438 | ||||||||||||
Average prices: | ||||||||||||||||
Crude oil (per Bbl) | $ | 77.57 | $ | 82.18 | $ | 76.04 | $ | 94.36 | ||||||||
Natural gas (per Mcf) | 1.16 | 2.99 | 1.27 | 4.95 | ||||||||||||
Natural gas liquids (per Bbl) | 20.00 | 26.00 | 20.48 | 35.02 | ||||||||||||
Total per Boe | 42.42 | 52.63 | 43.43 | 63.43 | ||||||||||||
Cash effect of derivative contracts: | ||||||||||||||||
Crude oil (per Bbl) | $ | (10.43 | ) | $ | (24.73 | ) | $ | (7.76 | ) | $ | (40.82 | ) | ||||
Natural gas (per Mcf) | 1.12 | 0.04 | 1.09 | (1.55 | ) | |||||||||||
Natural gas liquids (per Bbl) | — | — | — | — | ||||||||||||
Total per Boe | (2.69 | ) | (12.62 | ) | (1.84 | ) | (23.12 | ) | ||||||||
Average prices computed after cash effect of settlement of derivative contracts: | ||||||||||||||||
Crude oil (per Bbl) | $ | 67.14 | $ | 57.45 | $ | 68.28 | $ | 53.54 | ||||||||
Natural gas (per Mcf) | 2.28 | 3.03 | 2.36 | 3.40 | ||||||||||||
Natural gas liquids (per Bbl) | 20.00 | 26.00 | 20.48 | 35.02 | ||||||||||||
Total per Boe | 39.73 | 40.01 | 41.59 | 40.31 | ||||||||||||
Average cost per Boe: | ||||||||||||||||
Production: | ||||||||||||||||
Lease operating | $ | 9.63 | $ | 8.59 | $ | 8.92 | $ | 8.54 | ||||||||
Workover and other | 2.24 | 1.30 | 1.42 | 1.19 | ||||||||||||
Taxes other than income | 2.05 | 1.76 | 2.37 | 3.28 | ||||||||||||
Gathering and other | 13.31 | 11.31 | 12.64 | 11.38 | ||||||||||||
General and administrative, as adjusted (1) | 3.63 | 1.87 | 3.39 | 2.52 | ||||||||||||
Depletion | 10.80 | 10.49 | 10.97 | 9.05 | ||||||||||||
(1) Represents general and administrative costs per Boe, adjusted for items noted in the reconciliation below: | ||||||||||||||||
General and administrative: | ||||||||||||||||
General and administrative, as reported | $ | 4.93 | $ | 2.46 | $ | 3.78 | $ | 3.13 | ||||||||
Stock-based compensation: | ||||||||||||||||
Non-cash | (0.15 | ) | (0.46 | ) | 0.21 | (0.39 | ) | |||||||||
Non-recurring (charges) credits and other: | ||||||||||||||||
Cash | (1.15 | ) | (0.13 | ) | (0.60 | ) | (0.22 | ) | ||||||||
General and administrative, as adjusted(2) | $ | 3.63 | $ | 1.87 | $ | 3.39 | $ | 2.52 | ||||||||
Total operating costs, as reported | $ | 32.16 | $ | 25.42 | $ | 29.13 | $ | 27.52 | ||||||||
Total adjusting items | (1.30 | ) | (0.59 | ) | (0.39 | ) | (0.61 | ) | ||||||||
Total operating costs, as adjusted(3) | $ | 30.86 | $ | 24.83 | $ | 28.74 | $ | 26.91 |
___________________ | |
(2) | General and administrative, as adjusted, is a non-GAAP measure that excludes non-cash stock-based compensation charges relating to equity awards under our incentive stock plan, as well as other cash charges associated with non-recurring charges and other. The Company believes that it is useful to understand the effects that these charges have on general and administrative expenses and total operating costs and that exclusion of such charges is useful for comparison to prior periods. |
(3) | Represents lease operating expense, workover and other expense, taxes other than income, gathering and other expense and general and administrative costs per Boe, adjusted for items noted in the reconciliation above. |
RECONCILIATION (Unaudited) (In thousands, except per share amounts) | ||||||||||||||||
Three Months Ended | Years Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
As Reported: | ||||||||||||||||
Net income (loss) available to common stockholders - diluted (1) | $ | 26,993 | $ | (7,652 | ) | $ | (15,095 | ) | $ | 18,539 | ||||||
Impact of Selected Items: | ||||||||||||||||
Unrealized (gain) loss on derivatives contracts: | ||||||||||||||||
Crude oil | $ | (38,604 | ) | $ | 18,156 | $ | (22,601 | ) | $ | (10,730 | ) | |||||
Natural gas | (6,799 | ) | (14,501 | ) | 667 | (9,526 | ) | |||||||||
Total mark-to-market non-cash charge | (45,403 | ) | 3,655 | (21,934 | ) | (20,256 | ) | |||||||||
Change in fair value of embedded derivative liability | 529 | 1,224 | (2,053 | ) | (1,819 | ) | ||||||||||
Non-recurring charges (credits) | 1,268 | 194 | 3,042 | 1,230 | ||||||||||||
Selected items, before income taxes | (43,606 | ) | 5,073 | (20,945 | ) | (20,845 | ) | |||||||||
Income tax effect of selected items | — | — | — | — | ||||||||||||
Selected items, net of tax | $ | (43,606 | ) | $ | 5,073 | $ | (20,945 | ) | $ | (20,845 | ) | |||||
Net (loss) available to common stockholders, as adjusted (2) | $ | (16,613 | ) | $ | (2,579 | ) | $ | (36,040 | ) | $ | (2,306 | ) | ||||
Diluted net income (loss) per common share, as reported | $ | 1.63 | $ | (0.47 | ) | $ | (0.92 | ) | $ | 1.12 | ||||||
Impact of selected items | (2.64 | ) | 0.31 | (1.27 | ) | (1.26 | ) | |||||||||
Diluted net (loss) per common share, excluding selected items (2)(3) | $ | (1.01 | ) | $ | (0.16 | ) | $ | (2.19 | ) | $ | (0.14 | ) | ||||
Net cash provided by (used in) operating activities | $ | 6,524 | $ | 24,987 | $ | 17,589 | $ | 78,801 | ||||||||
Changes in working capital | (6,758 | ) | (12,029 | ) | 19,163 | (19,283 | ) | |||||||||
Cash flow from operations before changes in working capital | (234 | ) | 12,958 | 36,752 | 59,518 | |||||||||||
Cash components of selected items | 4,707 | 11,989 | 3,301 | 6,276 | ||||||||||||
Income tax effect of selected items | — | — | — | — | ||||||||||||
Cash flows from operations before changes in working capital, adjusted for selected items (1) | $ | 4,473 | $ | 24,947 | $ | 40,053 | $ | 65,794 |
___________________ | |
(1) | Amount reflects net (loss) income available to common stockholders on a diluted basis for earnings per share purposes as calculated using the two-class method of computing earnings per share which is further described in Note 14, Earnings Per Share in our Form 10-K for the year ended |
(2) | Net (loss) income earnings per share excluding selected items and cash flows from operations before changes in working capital adjusted for selected items are non-GAAP measures presented based on management's belief that they will enable a user of the financial information to understand the impact of these items on reported results. These financial measures are not measures of financial performance under GAAP and should not be considered as an alternative to net income, earnings per share and cash flows from operations, as defined by GAAP. These financial measures may not be comparable to similarly named non-GAAP financial measures that other companies may use and may not be useful in comparing the performance of those companies to Battalion's performance. |
(3) | The impact of selected items for the three and twelve months ended |
ADJUSTED EBITDA RECONCILIATION (Unaudited) (In thousands) | ||||||||||||||||
Three Months Ended | Years Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net income (loss), as reported | $ | 32,688 | $ | (7,652 | ) | $ | (3,048 | ) | $ | 18,539 | ||||||
Impact of adjusting items: | ||||||||||||||||
Interest expense | 8,917 | 9,378 | 36,511 | 25,725 | ||||||||||||
Depletion, depreciation and accretion | 12,337 | 15,479 | 56,624 | 51,915 | ||||||||||||
Stock-based compensation | 161 | 670 | (1,070 | ) | 2,210 | |||||||||||
Interest income | (525 | ) | (227 | ) | (1,243 | ) | (369 | ) | ||||||||
Loss (gain) on extinguishment of debt | — | — | — | — | ||||||||||||
Unrealized loss (gain) on derivatives contracts | (45,403 | ) | 3,655 | (21,934 | ) | (20,256 | ) | |||||||||
Change in fair value of embedded derivative liability | 529 | 1,224 | (2,053 | ) | (1,819 | ) | ||||||||||
Non-recurring charges (credits) and other | 1,268 | 194 | 2,728 | 1,061 | ||||||||||||
Adjusted EBITDA(1) | $ | 9,972 | $ | 22,721 | $ | 66,515 | $ | 77,006 |
___________________ | |
(1) | Adjusted EBITDA is a non-GAAP measure, which is presented based on management's belief that it will enable a user of the financial information to understand the impact of these items on reported results. This financial measure is not a measure of financial performance under GAAP and should not be considered as an alternative to GAAP measures, including net income (loss). This financial measure may not be comparable to similarly named non-GAAP financial measures that other companies may use and may not be useful in comparing the performance of those companies to Battalion's performance. |
ADJUSTED EBITDA RECONCILIATION (Unaudited) (In thousands) | ||||||||||||||||
Three Months | Three Months | Three Months | Three Months | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
Net income (loss), as reported | $ | 32,688 | $ | (53,799 | ) | $ | (4,748 | ) | $ | 22,811 | ||||||
Impact of adjusting items: | ||||||||||||||||
Interest expense | 8,917 | 9,219 | 9,366 | 9,009 | ||||||||||||
Depletion, depreciation and accretion | 12,337 | 13,426 | 14,713 | 16,148 | ||||||||||||
Stock-based compensation | 161 | (686 | ) | (772 | ) | 227 | ||||||||||
Interest income | (525 | ) | (293 | ) | (234 | ) | (191 | ) | ||||||||
Unrealized loss (gain) on derivatives contracts | (45,403 | ) | 46,805 | (2,332 | ) | (21,004 | ) | |||||||||
Change in fair value of embedded derivative liability | 529 | (1,878 | ) | 358 | (1,062 | ) | ||||||||||
Non-recurring charges (credits) and other | 1,268 | 831 | 477 | 152 | ||||||||||||
Adjusted EBITDA(1) | $ | 9,972 | $ | 13,625 | $ | 16,828 | $ | 26,090 | ||||||||
Adjusted LTM EBITDA(1) | $ | 66,515 |
___________________ | |
(1) | Adjusted EBITDA is a non-GAAP measure, which is presented based on management's belief that it will enable a user of the financial information to understand the impact of these items on reported results. This financial measure is not a measure of financial performance under GAAP and should not be considered as an alternative to GAAP measures, including net income (loss). This financial measure may not be comparable to similarly named non-GAAP financial measures that other companies may use and may not be useful in comparing the performance of those companies to Battalion's performance. |
ADJUSTED EBITDA RECONCILIATION (Unaudited) (In thousands) | ||||||||||||||||
Three Months | Three Months | Three Months | Three Months | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
Net income (loss), as reported | $ | (7,652 | ) | $ | 105,888 | $ | 13,047 | $ | (92,744 | ) | ||||||
Impact of adjusting items: | ||||||||||||||||
Interest expense | 9,378 | 6,232 | 5,394 | 4,721 | ||||||||||||
Depletion, depreciation and accretion | 15,479 | 13,615 | 12,601 | 10,220 | ||||||||||||
Stock-based compensation | 670 | 683 | 473 | 384 | ||||||||||||
Interest income | (227 | ) | (141 | ) | (1 | ) | — | |||||||||
Unrealized loss (gain) on derivatives contracts | 3,655 | (102,112 | ) | (12,837 | ) | 91,038 | ||||||||||
Change in fair value of embedded derivative liability | 1,224 | (449 | ) | (562 | ) | (2,032 | ) | |||||||||
Non-recurring charges (credits) and other | 194 | 597 | 53 | 217 | ||||||||||||
Adjusted EBITDA(1) | $ | 22,721 | $ | 24,313 | $ | 18,168 | $ | 11,804 | ||||||||
Adjusted LTM EBITDA(1) | $ | 77,006 |
___________________ | |
(1) | Adjusted EBITDA is a non-GAAP measure, which is presented based on management's belief that it will enable a user of the financial information to understand the impact of these items on reported results. This financial measure is not a measure of financial performance under GAAP and should not be considered as an alternative to GAAP measures, including net income (loss). This financial measure may not be comparable to similarly named non-GAAP financial measures that other companies may use and may not be useful in comparing the performance of those companies to Battalion's performance. |
Source:
2024 GlobeNewswire, Inc., source