Battalion Oil (BATL) Q1 2026 earnings summary

Executive summary

• Reported a net loss of $56.5 million for Q1 2026, compared to net income of $6.0 million in Q1 2025, driven by a $48.0 million net derivative loss and lower commodity prices.

• Achieved positive equity of $157.1 million, supporting NYSE listing compliance.

• Reduced net debt to $108.3 million from $180.2 million in Q4 2025 through asset sales and debt repayment.

• Completed the sale of West Quito assets for $60.1 million and used $45.6 million of proceeds to repay debt.

• Acquired 7,090 net acres in Ward County, Texas, in an all-stock transaction, expanding the Monument Draw position.

Financial highlights

• Operating revenues declined to $39.2 million from $47.5 million year-over-year due to lower realized prices for oil, natural gas, and NGLs.

• Q1 2026 sales volumes rose to 12,578 Boe/d (47% oil), up from 11,207 Boe/d in Q4 2025.

• Net loss available to common stockholders was $64.8 million, or $(3.72) per share, versus $(5.8) million, or $(0.35) per share, in Q1 2025.

• Adjusted net loss was $16.2 million ($0.93/share); adjusted EBITDA was $10.0 million, down from $15.1 million in Q1 2025.

• Lease operating and workover expense per Boe decreased 24% sequentially and 11% year-over-year.

Outlook and guidance

• Management expects sufficient liquidity for the next 12 months based on current forecasts, cash on hand, and proceeds from asset sales and equity offerings.

• Strategic negotiations underway for refinancing, a carried drilling venture, and pipeline infrastructure for Monument Draw oil.

• Pipeline project expected online in early Q3 2026, projected to save up to $6 million annually.

• "Cube" style development planned to expand inventory and enhance returns.

• Plans to continue cost reduction initiatives and may seek additional capital or strategic transactions if needed.