Battalion Oil Corporation (NYSEA: BATL, “Battalion” or the
“Company”) today announced its first quarter 2020 results.
Average daily net production for the quarter
ended March 31, 2020 was 18,791 barrels of oil equivalent per day
(“Boepd”), of which oil represented 10,297 barrels of oil per day
(“Bopd”), compared to 10,233 Bopd and 11,489 Bopd for the first and
fourth quarters of 2019, respectively. The Company earned $47.4
million of total revenue for the first quarter of 2020, of which
88% was from oil sales, excluding the impact of hedge settlements.
Excluding the realized gain on crude oil derivative contracts of
$5.1 million, the Company realized 98% of NYMEX WTI during the
first quarter of 2020.
Total operating costs were $18.20 per Boe
compared to $25.49 per Boe for the first quarter of 2019. Adjusted
G&A was $1.50 per Boe in the first quarter of 2020 compared to
$5.99 per Boe in the first quarter of 2019 (see Selected Operating
Data table for additional information). Lease operating and
workover expense was $8.07 per Boe in the first quarter of 2020 and
$10.94 per Boe in the first quarter of 2019.
The Company reported net income to common
stockholders of $114.5 million or net income per basic and diluted
share of $7.07 for the first quarter of 2020 and reported adjusted
EBITDA of $23.5 million, compared to $12.7 million in the first
quarter of 2019 (see Adjusted EBITDA Reconciliation table for
additional information).
Liquidity and Capital
SpendingDuring the first quarter of 2020, Battalion
incurred capital expenditures of $65.1 million, and placed online 6
new wells.
As of March 31, 2020, Battalion's liquidity was
$26.5 million consisting of $0.9 million in cash on hand plus
availability under its revolving credit facility less letters of
credit outstanding, pro forma for the April 30, 2020
redetermination of its borrowing base under its revolving credit
facility.
As of May 11, 2020, Battalion had 9,000 Bopd of
oil hedged for the second half of 2020 at an average price of
$50.28 per barrel. For 2021, the Company has 7,000 Bopd of
oil hedged at an average price of $45.51 per barrel. For
2022, the Company has 4,000 Bopd of oil hedged at an average price
of $52.38 per barrel. As of March 31, 2020, the mark-to-market
value of derivative contracts was approximately $105 million.
Management Commentary Richard
Little, the Company’s Chief Executive Officer commented, “We had
already planned to suspend our capital program at the end of Q1
2020 and as the market continued to deteriorate, the decisions we
had to make required agility and an even greater level of capital
discipline. I’m proud of our team’s ability to drive down costs and
for their quick response time to thoughtfully shut in production
across all of our fields.”
Mr. Little further commented, “We’re certainly
far more accustomed to bringing new wells online than we are to
strategically shutting in over half of our production.
Nevertheless, while these times are challenging, they reinforce the
notion that sound business principles, such as long term business
planning, remain the best way to make what could otherwise be
difficult near-term decisions. Our team has done a commendable job
of preparing us for circumstances such as the ones we find
ourselves in – building long-term relationships with key
stakeholders such as mineral owners and vendors, proactively
creating optionality in our development strategies and simply
treating each other with respect. I am hopeful that the market will
turn around before the end of the year, but regardless, we will
continue to look for more ways to enhance our competitive advantage
and further strengthen our balance sheet.”
Conference Call
InformationBattalion Oil Corporation has scheduled a
conference call for Tuesday, May 12, 2020, at 11:00 a.m. EDT (10:00
a.m. CDT). To participate in the conference call, dial
720-543-0197 or 800-347-6311 (toll free) a few minutes before the
call begins and reference Battalion Oil Corporation confirmation
code 6172447. The conference call recording will also be
posted to Battalion’s website: www.battalionoil.com.
Forward Looking StatementsThis
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 December 31, 2019 and other filings
submitted by the Company to the U.S. Securities and Exchange
Commission (“SEC”), copies of which may be obtained from the SEC's
website at www.sec.gov or through the Company's website at
www.battalionoil.com. Readers should not place undue reliance on
any such forward-looking statements, which are made only as of the
date hereof. The Company has no duty, and assumes no obligation, to
update forward-looking statements as a result of new information,
future events or changes in the Company's expectations.
About BattalionBattalion Oil
Corporation is an independent energy company engaged in the
acquisition, production, exploration and development of onshore oil
and natural gas properties in the United States.
ContactJohn-Davis Rutkauskas Director, Finance
& Investor Relations(832) 538-0551
BATTALION OIL
CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited)(In thousands, except per
share amounts)
|
Successor |
|
|
Predecessor |
|
Three Months |
|
|
Three Months |
|
Ended |
|
|
Ended |
|
March 31, 2020 |
|
|
March 31, 2019 |
Operating
revenues: |
|
|
|
|
|
|
Oil, natural gas and natural gas liquids sales: |
|
|
|
|
|
|
Oil |
$ |
41,917 |
|
|
|
$ |
45,517 |
|
Natural gas |
|
354 |
|
|
|
|
1,461 |
|
Natural gas liquids |
|
4,753 |
|
|
|
|
4,945 |
|
Total oil, natural gas and natural gas liquids sales |
|
47,024 |
|
|
|
|
51,923 |
|
Other |
|
375 |
|
|
|
|
(7 |
) |
Total operating revenues |
|
47,399 |
|
|
|
|
51,916 |
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
Production: |
|
|
|
|
|
|
Lease operating |
|
12,489 |
|
|
|
|
14,186 |
|
Workover and other |
|
1,323 |
|
|
|
|
2,646 |
|
Taxes other than income |
|
2,915 |
|
|
|
|
2,893 |
|
Gathering and other |
|
10,547 |
|
|
|
|
14,869 |
|
Restructuring |
|
418 |
|
|
|
|
11,271 |
|
General and administrative |
|
3,856 |
|
|
|
|
4,608 |
|
Depletion, depreciation and accretion |
|
18,030 |
|
|
|
|
29,975 |
|
Full cost ceiling impairment |
|
— |
|
|
|
|
275,239 |
|
(Gain) loss on sale of Water Assets |
|
— |
|
|
|
|
885 |
|
Total operating expenses |
|
49,578 |
|
|
|
|
356,572 |
|
Income (loss) from
operations |
|
(2,179 |
) |
|
|
|
(304,656 |
) |
|
|
|
|
|
|
|
Other income
(expenses): |
|
|
|
|
|
|
Net gain (loss) on derivative contracts |
|
118,299 |
|
|
|
|
(64,799 |
) |
Interest expense and other |
|
(1,629 |
) |
|
|
|
(12,589 |
) |
Total other income (expenses) |
|
116,670 |
|
|
|
|
(77,388 |
) |
Income (loss) before income taxes |
|
114,491 |
|
|
|
|
(382,044 |
) |
Income tax benefit (provision) |
|
— |
|
|
|
|
45,485 |
|
Net income
(loss) |
$ |
114,491 |
|
|
|
$ |
(336,559 |
) |
|
|
|
|
|
|
|
Net income (loss) per
share of common stock: |
|
|
|
|
|
|
Basic |
$ |
7.07 |
|
|
|
$ |
(2.12 |
) |
Diluted |
$ |
7.07 |
|
|
|
$ |
(2.12 |
) |
Weighted average
common shares outstanding: |
|
|
|
|
|
|
Basic |
|
16,204 |
|
|
|
|
158,549 |
|
Diluted |
|
16,204 |
|
|
|
|
158,549 |
|
|
|
|
|
|
|
|
|
|
BATTALION OIL
CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)(In thousands, except share and per
share amounts)
|
|
|
|
|
|
|
Successor |
|
March 31, 2020 |
|
December 31, 2019 |
Current
assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
938 |
|
|
$ |
5,701 |
|
Accounts receivable, net |
|
30,260 |
|
|
|
48,504 |
|
Assets from derivative contracts |
|
71,353 |
|
|
|
4,995 |
|
Restricted cash |
|
— |
|
|
|
4,574 |
|
Prepaids and other |
|
6,341 |
|
|
|
7,379 |
|
Total current assets |
|
108,892 |
|
|
|
71,153 |
|
Oil and natural gas
properties (full cost method): |
|
|
|
|
|
Evaluated |
|
485,813 |
|
|
|
420,609 |
|
Unevaluated |
|
104,923 |
|
|
|
105,009 |
|
Gross oil and natural gas properties |
|
590,736 |
|
|
|
525,618 |
|
Less - accumulated depletion |
|
(37,075 |
) |
|
|
(19,474 |
) |
Net oil and natural gas properties |
|
553,661 |
|
|
|
506,144 |
|
Other operating
property and equipment: |
|
|
|
|
|
Other operating property and equipment |
|
3,655 |
|
|
|
3,655 |
|
Less - accumulated depreciation |
|
(659 |
) |
|
|
(378 |
) |
Net other operating property and equipment |
|
2,996 |
|
|
|
3,277 |
|
Other noncurrent
assets: |
|
|
|
|
|
Assets from derivative contracts |
|
37,766 |
|
|
|
224 |
|
Operating lease right of use assets |
|
2,932 |
|
|
|
3,165 |
|
Other assets |
|
6,148 |
|
|
|
703 |
|
Total
assets |
$ |
712,395 |
|
|
$ |
584,666 |
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Accounts payable and accrued liabilities |
$ |
92,585 |
|
|
$ |
97,333 |
|
Liabilities from derivative contracts |
|
3,972 |
|
|
|
8,069 |
|
Operating lease liabilities |
|
935 |
|
|
|
923 |
|
Asset retirement obligations |
|
225 |
|
|
|
109 |
|
Total current liabilities |
|
97,717 |
|
|
|
106,434 |
|
Long-term debt,
net |
|
170,000 |
|
|
|
144,000 |
|
Other noncurrent
liabilities: |
|
|
|
|
|
Liabilities from derivative contracts |
|
473 |
|
|
|
4,854 |
|
Asset retirement obligations |
|
10,619 |
|
|
|
10,481 |
|
Operating lease liabilities |
|
2,009 |
|
|
|
2,247 |
|
Commitments and
contingencies |
|
|
|
|
|
Common stock: 100,000,000
shares of $0.0001 par value authorized; 16,203,967 and 16,203,940
shares issued and outstanding as of March 31, 2020 and December 31,
2019, respectively |
|
2 |
|
|
|
2 |
|
Additional paid-in
capital |
|
327,544 |
|
|
|
327,108 |
|
Retained earnings (accumulated
deficit) |
|
104,031 |
|
|
|
(10,460 |
) |
Total stockholders'
equity |
|
431,577 |
|
|
|
316,650 |
|
Total liabilities and
stockholders' equity |
$ |
712,395 |
|
|
$ |
584,666 |
|
|
|
|
|
|
|
|
|
BATTALION OIL
CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS (Unaudited)(In thousands)
|
|
|
|
|
|
|
|
Successor |
|
|
Predecessor |
|
Three Months |
|
|
Three Months |
|
Ended |
|
|
Ended |
|
March 31, 2020 |
|
|
March 31, 2019 |
Cash flows from
operating activities: |
|
|
|
|
|
|
Net income (loss) |
$ |
114,491 |
|
|
|
$ |
(336,559 |
) |
Adjustments to reconcile net
income (loss) to net cash provided by (used in) operating
activities: |
|
|
|
|
|
|
Depletion, depreciation and accretion |
|
18,030 |
|
|
|
|
29,975 |
|
Full cost ceiling impairment |
|
— |
|
|
|
|
275,239 |
|
(Gain) loss on sale of Water Assets |
|
— |
|
|
|
|
885 |
|
Deferred income tax provision (benefit) |
|
— |
|
|
|
|
(45,485 |
) |
Stock-based compensation, net |
|
387 |
|
|
|
|
(6,782 |
) |
Unrealized loss (gain) on derivative contracts |
|
(112,378 |
) |
|
|
|
68,169 |
|
Amortization and write-off of deferred loan costs |
|
— |
|
|
|
|
404 |
|
Amortization of discount and premium |
|
— |
|
|
|
|
55 |
|
Reorganization items, net |
|
(4,984 |
) |
|
|
|
— |
|
Accrued settlements on derivative contracts |
|
(4,923 |
) |
|
|
|
1,020 |
|
Other income (expense) |
|
7 |
|
|
|
|
388 |
|
Cash flows from operations
before changes in working capital |
|
10,630 |
|
|
|
|
(12,691 |
) |
Changes in working
capital |
|
1,713 |
|
|
|
|
(24,143 |
) |
Net cash provided by (used in)
operating activities |
|
12,343 |
|
|
|
|
(36,834 |
) |
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
Oil and natural gas capital expenditures |
|
(48,157 |
) |
|
|
|
(81,068 |
) |
Acquisition of oil and natural gas properties |
|
— |
|
|
|
|
(2,809 |
) |
Other operating property and equipment capital expenditures |
|
— |
|
|
|
|
(30,553 |
) |
Funds held in escrow and other |
|
509 |
|
|
|
|
(1 |
) |
Net cash provided by (used in)
investing activities |
|
(47,648 |
) |
|
|
|
(114,431 |
) |
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
Proceeds from borrowings |
|
51,000 |
|
|
|
|
124,000 |
|
Repayments of borrowings |
|
(25,000 |
) |
|
|
|
(19,000 |
) |
Equity issuance costs and other |
|
(32 |
) |
|
|
|
(406 |
) |
Net cash provided by (used in)
financing activities |
|
25,968 |
|
|
|
|
104,594 |
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash, cash equivalents and restricted
cash |
|
(9,337 |
) |
|
|
|
(46,671 |
) |
|
|
|
|
|
|
|
Cash, cash equivalents and
restricted cash at beginning of period |
|
10,275 |
|
|
|
|
46,866 |
|
Cash, cash equivalents and
restricted cash at end of period |
$ |
938 |
|
|
|
$ |
195 |
|
|
|
|
|
|
|
|
|
|
BATTALION OIL
CORPORATIONSELECTED OPERATING DATA
(Unaudited)
|
|
|
|
|
|
|
|
Successor |
|
|
Predecessor |
|
Three Months |
|
|
Three Months |
|
Ended |
|
|
Ended |
|
March 31, 2020 |
|
|
March 31, 2019 |
Production volumes: |
|
|
|
|
|
|
Crude oil (MBbls) |
|
937 |
|
|
|
|
921 |
|
Natural gas (MMcf) |
|
2,539 |
|
|
|
|
1,941 |
|
Natural gas liquids (MBbls) |
|
350 |
|
|
|
|
293 |
|
Total (MBoe) |
|
1,710 |
|
|
|
|
1,538 |
|
Average daily production (Boe/d) |
|
18,791 |
|
|
|
|
17,089 |
|
|
|
|
|
|
|
|
Average prices: |
|
|
|
|
|
|
Crude oil (per Bbl) |
$ |
44.74 |
|
|
|
$ |
49.42 |
|
Natural gas (per Mcf) |
|
0.14 |
|
|
|
|
0.75 |
|
Natural gas liquids (per Bbl) |
|
13.58 |
|
|
|
|
16.88 |
|
Total per Boe |
|
27.50 |
|
|
|
|
33.76 |
|
|
|
|
|
|
|
|
Cash effect of derivative contracts: |
|
|
|
|
|
|
Crude oil (per Bbl) |
$ |
5.47 |
|
|
|
$ |
0.70 |
|
Natural gas (per Mcf) |
|
0.32 |
|
|
|
|
0.44 |
|
Natural gas liquids (per Bbl) |
|
- |
|
|
|
|
6.38 |
|
Total per Boe |
|
3.46 |
|
|
|
|
2.19 |
|
|
|
|
|
|
|
|
Average prices computed after cash effect of settlement of
derivative contracts: |
|
|
|
|
|
|
Crude oil (per Bbl) |
$ |
50.21 |
|
|
|
$ |
50.12 |
|
Natural gas (per Mcf) |
|
0.46 |
|
|
|
|
1.19 |
|
Natural gas liquids (per Bbl) |
|
13.58 |
|
|
|
|
23.26 |
|
Total per Boe |
|
30.96 |
|
|
|
|
35.95 |
|
|
|
|
|
|
|
|
Average cost per Boe: |
|
|
|
|
|
|
Production: |
|
|
|
|
|
|
Lease operating |
$ |
7.30 |
|
|
|
$ |
9.22 |
|
Workover and other |
|
0.77 |
|
|
|
|
1.72 |
|
Taxes other than income |
|
1.70 |
|
|
|
|
1.88 |
|
Gathering and other, as adjusted (1) |
|
6.18 |
|
|
|
|
8.89 |
|
Restructuring |
|
0.24 |
|
|
|
|
7.33 |
|
General and administrative, as adjusted (1) |
|
1.50 |
|
|
|
|
5.99 |
|
|
|
|
|
|
|
|
(1) Represents gathering and
other and general and administrative costs per Boe, adjusted for
items noted in the reconciliation below: |
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative: |
|
|
|
|
|
|
General and administrative, as reported |
$ |
2.26 |
|
|
|
$ |
3.00 |
|
Stock-based compensation: |
|
|
|
|
|
|
Non-cash |
|
(0.23 |
) |
|
|
|
4.41 |
|
Transaction costs and other: |
|
|
|
|
|
|
Cash |
|
(0.53 |
) |
|
|
|
(1.42 |
) |
General and administrative, as adjusted(2) |
$ |
1.50 |
|
|
|
$ |
5.99 |
|
|
|
|
|
|
|
|
Gathering and other, as
reported |
|
6.17 |
|
|
|
|
9.67 |
|
Rig stacking charges and other(3) |
|
0.01 |
|
|
|
|
(0.78 |
) |
Gathering and other, as
adjusted(4) |
$ |
6.18 |
|
|
|
$ |
8.89 |
|
|
|
|
|
|
|
|
Total operating costs, as
reported |
|
18.20 |
|
|
|
|
25.49 |
|
Total adjusting items |
|
(0.75 |
) |
|
|
|
2.21 |
|
Total operating costs, as
adjusted(5) |
$ |
17.45 |
|
|
|
$ |
27.70 |
|
|
|
|
|
|
|
|
|
|
_______________
- 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 plans, as well as other cash charges
associated with certain transactions. 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.
- Amounts for periods prior to 2020
have been revised to conform to the current presentation by
eliminating adjustments for gas treating fees.
- Gathering and other, as adjusted,
is a non-GAAP measure that excludes rig stacking charges and other
costs. The Company believes that it is useful to understand
the effects that these charges have on gathering and other expense
and total operating costs and that exclusion of such charges is
useful for comparative purposes.
- Represents lease operating,
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.
BATTALION OIL
CORPORATIONSELECTED ITEM REVIEW AND RECONCILIATION
(Unaudited)(In thousands, except per share
amounts)
|
|
|
|
|
|
|
|
Successor |
|
|
Predecessor |
|
Three Months |
|
|
Three Months |
|
Ended |
|
|
Ended |
|
March 31, 2020 |
|
|
March 31, 2019 |
As
Reported: |
|
|
|
|
|
|
Net income (loss), as reported |
$ |
114,491 |
|
|
|
$ |
(336,559 |
) |
|
|
|
|
|
|
|
Impact of Selected
Items: |
|
|
|
|
|
|
Unrealized loss (gain) on
derivatives contracts: |
|
|
|
|
|
|
Crude oil |
$ |
(111,834 |
) |
|
|
$ |
64,000 |
|
Natural gas |
|
(544 |
) |
|
|
|
(335 |
) |
Natural gas liquids |
|
- |
|
|
|
|
4,504 |
|
Total mark-to-market non-cash charge |
|
(112,378 |
) |
|
|
|
68,169 |
|
Full cost ceiling
impairment |
|
- |
|
|
|
|
275,239 |
|
(Gain) loss on sale of Water
Assets |
|
- |
|
|
|
|
885 |
|
Restructuring |
|
418 |
|
|
|
|
11,271 |
|
Transaction costs, rig
stacking charges and other |
|
906 |
|
|
|
|
3,647 |
|
Selected items, before income
taxes |
|
(111,054 |
) |
|
|
|
359,211 |
|
Income tax effect of selected
items (1) |
|
- |
|
|
|
|
(31,667 |
) |
Selected items, net of
tax |
|
(111,054 |
) |
|
|
|
327,544 |
|
|
|
|
|
|
|
|
As
Adjusted: |
|
|
|
|
|
|
Net income (loss), excluding
selected items (2) |
$ |
3,437 |
|
|
|
$ |
(9,015 |
) |
|
|
|
|
|
|
|
Basic net income (loss) per
common share, as reported |
$ |
7.07 |
|
|
|
$ |
(2.12 |
) |
Impact of selected items |
|
(6.86 |
) |
|
|
|
2.06 |
|
Basic net income (loss) per
common share, excluding selected items (2) |
$ |
0.21 |
|
|
|
$ |
(0.06 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income (loss) per
common share, as reported |
$ |
7.07 |
|
|
|
$ |
(2.12 |
) |
Impact of selected items |
|
(6.86 |
) |
|
|
|
2.06 |
|
Diluted net income (loss) per
common share, excluding selected items (2)(3) |
$ |
0.21 |
|
|
|
$ |
(0.06 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in)
operating activities |
$ |
12,343 |
|
|
|
$ |
(36,834 |
) |
Changes in working
capital |
|
(1,713 |
) |
|
|
|
24,143 |
|
Cash flows from operations
before changes in working capital |
|
10,630 |
|
|
|
|
(12,691 |
) |
Cash components of selected
items |
|
11,231 |
|
|
|
|
13,806 |
|
Income tax effect of selected
items (1) |
|
- |
|
|
|
|
(2,899 |
) |
Cash flows from operations
before changes in working capital, adjusted for selected items
(2) |
$ |
21,861 |
|
|
|
$ |
(1,784 |
) |
|
|
|
|
|
|
|
|
|
_______________
- For the three months ended March
31, 2019 (Predecessor), this represents the tax impact using an
estimated tax rate of 21.0% and includes a $43.8 million adjustment
for the net change in valuation allowance and deferred tax
liability.
- Net income (loss) and 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. Net income (loss) and earnings per share
excluding selected items and cash flows from operations before
changes in working capital adjusted for selected items are non-GAAP
measures. Amounts for periods prior to 2020 have been revised to
conform to the current presentation by eliminating adjustments for
gas treating fees. Management believes that conforming the
presentation of this information facilitates comparisons across
periods.
- The impact of selected items for
the periods ended March 31, 2020 (Successor) and 2019 (Predecessor)
were calculated based upon weighted average diluted shares of 16.2
million and 158.5 million, respectively, due to the net income
(loss) available to common stockholders, excluding selected
items.
BATTALION OIL
CORPORATIONADJUSTED EBITDA RECONCILIATION
(Unaudited)(In thousands)
|
|
|
|
|
|
|
|
Successor |
|
|
Predecessor |
|
Three Months |
|
|
Three Months |
|
Ended |
|
|
Ended |
|
March 31, 2020 |
|
|
March 31, 2019 |
|
|
|
|
|
|
|
Net income (loss), as reported |
$ |
114,491 |
|
|
|
$ |
(336,559 |
) |
Impact of adjusting
items: |
|
|
|
|
|
|
Interest expense |
|
1,714 |
|
|
|
|
11,972 |
|
Depletion, depreciation and accretion |
|
18,030 |
|
|
|
|
29,975 |
|
Full cost ceiling impairment |
|
- |
|
|
|
|
275,239 |
|
Income tax provision (benefit) |
|
- |
|
|
|
|
(45,485 |
) |
Stock-based compensation |
|
387 |
|
|
|
|
(6,782 |
) |
Interest income |
|
(97 |
) |
|
|
|
(61 |
) |
Restructuring |
|
418 |
|
|
|
|
11,271 |
|
(Gain) loss on sale of other assets |
|
- |
|
|
|
|
416 |
|
(Gain) loss on sale of Water Assets |
|
- |
|
|
|
|
885 |
|
Unrealized loss (gain) on derivatives contracts |
|
(112,378 |
) |
|
|
|
68,169 |
|
Transaction costs, rig stacking charges and other |
|
906 |
|
|
|
|
3,647 |
|
Adjusted EBITDA(1) |
$ |
23,471 |
|
|
|
$ |
12,687 |
|
|
|
|
|
|
|
|
|
|
_______________
- 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. Amounts for periods prior to
2020 have been revised to conform to the current presentation by
eliminating adjustments for gas treating fees. Management believes
that conforming the presentation of this information facilitates
comparisons across periods.
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