Battalion Oil (BATL) Q2 2026 earnings summary

Executive summary

• Focused on acquisition, production, exploration, and development of onshore oil and gas assets in the Delaware Basin, with a significant drilling inventory and recent asset transactions.

• Achieved positive equity of $203.1 million at quarter end, with significant progress in operations and financial strength.

• Monument Draw development advanced, with midstream expansion completed ahead of schedule and under budget, boosting gas throughput by 20%.

• Entered into a new $162.5M term loan agreement with up to $175M additional discretionary capacity, extending maturity to December 2029 and reducing interest margin.

• ATM equity program established, raising $30.3M in Q2 and $25M post-quarter, supporting debt reduction.

Financial highlights

• Q2 2026 operating revenues were $48.1M, up from $42.8M in Q2 2025, driven by higher realized prices despite lower production.

• Net income for Q2 2026 was $15.5M, compared to $4.8M in Q2 2025; net income available to common stockholders was $9.1M ($0.34/share); adjusted diluted net loss was $4.9M ($0.11/share).

• Adjusted EBITDA for Q2 2026 was $12.3M, down from $18.1M in Q2 2025.

• Lease operating expenses decreased to $8.14/Boe in Q2 2026 from $9.03/Boe in Q2 2025; lease operating and workover expense per Boe decreased by ~12% year-over-year to $8.89.

• Cash and cash equivalents at quarter end were $83.1M, with total liquidity of $88.4M.

Outlook and guidance

• Sufficient liquidity expected for the next 12 months, with $83.1M cash on hand and access to additional debt capacity.

• Production growth expected from new drilling at Monument Draw, supported by increased compression capacity.

• Plans to continue cost reduction, monitor market conditions, and consider further equity or asset sales if needed.

• ATM program to be used judiciously for further balance sheet strengthening.

• No required debt repayments until June 2027 under the new term loan agreement; scheduled principal amortization on term loan begins Q2 2027.