Battalion Oil Corporation Announces Fourth Quarter 2024 Financial and Operating Results

Yahoo

31-03-2025

HOUSTON, March 31, 2025 (GLOBE NEWSWIRE) -- Battalion Oil Corporation (NYSE American: BATL, 'Battalion' or the 'Company') today announced financial and operating results for the fourth quarter of 2024.
Key Highlights
Completed the refinancing of our term loan on favorable terms resulting in an increase in liquidity
Generated full-year sales volumes of 12,667 barrels of oil equivalent per day ('Boe/d') (51% oil)
Continued to lower capex per well, outperforming AFE estimates
AGI facility online and treated 1.8 Bcf for the fourth quarter of 2024
Spud two additional wells in Monument Draw in December to commence 2025 six-well activity plan
Year-end 2024 reserves of approximately 64.9 million barrels of oil equivalent ('MMBoe') with a standardized measure of discounted future net cash flows of approximately $447.7 million
Terminated the previously announced Merger Agreement with Fury
Management CommentsThe Company concluded its 2024 six-well campaign ahead of planned timing and under budget on each pad. Final well capital remains under $950 per lateral foot. The completed pad wells are producing ahead of type curve with the newest pad averaging over 811 Boe/d across the initial 120 days online, the second pad exceeding 747 Boe/d across the initial 275 days online and the first pad exceeding 1,085 Boe/d across 404 days on production. In December 2024, the Company also commenced drilling operations in Monument Draw as part of its 2025 six-well activity plan. As of the date of this release, the Company has drilled four of these wells in Monument Draw and has commenced completion operations on the first two wells. All wells are ahead of plan and under budget. The final two wells are permitted in the Company's West Quito asset area with additional permits and drilling pads being built in Hackberry Draw.
During the fourth quarter 2024, the acid gas injection ('AGI') facility treated approximately 20 MMcf/d average and returned approximately 16 MMcf/d of sweet gas to the Company for sales to its midstream partner. To date, the AGI facility has processed more than 6.9 Bcf of sour gas and allowed the Company to realize substantial savings compared to treating alternatives.
Results of OperationsAverage daily net production and total operating revenue during the fourth quarter of 2024 were 12,750 Boe/d (55% oil) and $49.7 million, respectively, as compared to production and revenue of 12,022 Boe/d (46% oil) and $47.2 million, respectively, during the fourth quarter of 2023. The increase in revenues in the fourth quarter of 2024 as compared to the fourth quarter of 2023 is primarily attributable to an approximate 728 Boe/d increase in average daily production partially offset by a $0.22 decrease in average realized prices (excluding the impact of hedges). Excluding the impact of hedges, Battalion realized 96.9% of the average NYMEX oil price during the fourth quarter of 2024. Realized hedge gains totaled approximately less than $0.1 million during the fourth quarter of 2024.
Lease operating and workover expense was $11.26 per Boe in the fourth quarter of 2024 versus $11.87 per Boe in the fourth quarter of 2023. The decrease in lease operating and workover expense per Boe year-over-year is primarily a result of the increase in average daily production. Gathering and other expenses were $10.45 per Boe in the fourth quarter of 2024 versus $13.31 per Boe in the fourth quarter of 2023. The decrease in gathering and other expenses per Boe is primarily related to the start-up of the AGI facility and lower treating fees associated compared to the Valkyrie (liquid redox) plant. General and administrative expenses were $6.04 per Boe in the fourth quarter of 2024 compared to $4.93 per Boe in the fourth quarter of 2023. The increase in general and administrative expense is primarily attributable to an increase in audit, legal and transaction costs associated with the terminated merger with Fury Resources. Excluding non-recurring charges, general and administrative expenses would have been $3.22 per Boe in the fourth quarter of 2024 compared to $3.78 per Boe in the fourth quarter of 2023.
For the fourth quarter of 2024, the Company reported a net loss available to common stockholders of $30.9 million and a net loss of $1.88 per share available to common stockholders. After adjusting for selected items, the Company reported an adjusted diluted net loss available to common stockholders for the fourth quarter of 2024 of $0.7 million or an adjusted diluted net loss of $0.04 per common share (see Reconciliation for additional information). Adjusted EBITDA during the quarter ended December 31, 2024 was $18.0 million as compared to $10.0 million during the quarter ended December 31, 2023 (see Adjusted EBITDA Reconciliation table for additional information).
Liquidity and Balance SheetAs of December 31, 2024, the Company had $162.1 million of indebtedness outstanding. Total liquidity on December 31, 2024, made up of cash and cash equivalents, was $19.7 million.
On January 9, 2025, the Company incurred incremental term loans in the aggregate principal amount of $63.0 million, resulting in a net increase in liquidity of $61.3 million.
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.
Merger Agreement with Fury ResourcesSubsequent to several amendments to the previously disclosed Agreement and Plan of Merger, dated December 14, 2023 (as amended, the 'Merger Agreement') and upon the failure of Fury Resources, Inc. to meet the funding and closing requirements of the Merger Agreement, the Company terminated the Merger.
Refinanced Term Loan AgreementOn December 26, 2024, the Company entered into the Second Amended and Restated Senior Secured Credit Agreement with Fortress Credit Corp., as administrative agent, and certain other financial institutions, as lenders (the '2024 Term Loan Agreement'). Pursuant to the 2024 Term Loan Agreement, the Company entered into an initial term loan facility in the aggregate principal amount of $162.0 million, funded on December 26, 2024 and an incremental term loan facility in the aggregate principal amount of up to $63.0 million. On January 9, 2025, the Company entered into the First Amendment to the 2024 Term Loan Agreement and incurred $63.0 million of Incremental Term Loans (the '2024 Amended Term Loan Agreement'), resulting in total outstanding borrowings of $225.0 million.
The maturity date of the 2024 Amended Term Loan Agreement is December 26, 2028.
All obligations under the Company's existing term loan agreement were refunded, refinanced and repaid in full by the loans under the 2024 Term Loan Agreement as the net proceeds of the 2024 Term Loan Agreement were used to repay all outstanding indebtedness under the existing term loan agreement in an aggregate amount of approximately $152.1 million, including accrued and unpaid interest, and to pay related fees and expenses related to the new credit agreement.
The Company is required to make scheduled quarterly amortization payments in an aggregate principal amount equal to 2.50% of the aggregate principal amount of the loans outstanding commencing with the fiscal quarter ending June 30, 2025. Under the 2024 Amended Term Loan Agreement, the Company must make scheduled amortization payments in the aggregate amount of $16.9 million in 2025 and $22.5 million in 2026.
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 December 31, 2023, and other filings submitted by the Company to the 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.
Contact
Matthew B. SteeleChief Executive Officer & Principal Financial Officer832-538-0300
BATTALION OIL CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)(In thousands, except per share amounts)
Three Months Ended
Years Ended
December 31,
December 31,
2024
2023
2024
2023
Operating revenues:
Oil, natural gas and natural gas liquids sales:
Oil
$
43,934
$
39,562
$
174,607
$
183,634
Natural gas
447
2,429
(2,213
)
11,057
Natural gas liquids
5,118
4,921
20,822
23,814
Total oil, natural gas and natural gas liquids sales
49,499
46,912
193,216
218,505
Other
154
330
677
2,257
Total operating revenues
49,653
47,242
193,893
220,762
Operating expenses:
Production:
Lease operating
11,082
10,656
45,275
44,864
Workover and other
2,127
2,480
5,215
7,149
Taxes other than income
2,366
2,266
11,238
11,943
Gathering and other
12,263
14,718
54,117
63,575
General and administrative
7,091
5,453
18,356
19,025
Depletion, depreciation and accretion
14,155
12,337
52,926
56,624
Impairment of contract asset
18,511
—
18,511
—
Total operating expenses
67,595
47,910
205,638
203,180
(Loss) income from operations
(17,942
)
(668
)
(11,745
)
17,582
Other income (expenses):
Net (loss) gain on derivative contracts
(1,624
)
42,430
2,308
12,689
Interest expense and other
4,853
(9,074
)
(14,956
)
(33,319
)
Loss on extinguishment of debt
(7,489
)
—
(7,489
)
—
Total other income expenses
(4,260
)
33,356
(20,137
)
(20,630
)
(Loss) income before income taxes
(22,202
)
32,688
(31,882
)
(3,048
)
Income tax benefit (provision)
—
—
—
—
Net (loss) income
$
(22,202
)
$
32,688
$
(31,882
)
$
(3,048
)
Preferred dividends
(8,679
)
(5,695
)
(32,219
)
(12,047
)
Net (loss) income available to common stockholders
$
(30,881
)
$
26,993
$
(64,101
)
$
(15,095
)
Net (loss) income per share of common stock:
Basic
$
(1.88
)
$
1.64
$
(3.90
)
$
(0.92
)
Diluted
$
(1.88
)
$
1.63
$
(3.90
)
$
(0.92
)
Weighted average common shares outstanding:
Basic
16,457
16,457
16,457
16,441
Diluted
16,457
16,517
16,457
16,441
BATTALION OIL CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)(In thousands, except share and per share amounts)
December 31, 2024
December 31, 2023
Current assets:
Cash and cash equivalents
$
19,712
$
57,529
Accounts receivable, net
26,298
23,021
Assets from derivative contracts
6,969
8,992
Restricted cash
91
90
Prepaids and other
982
907
Total current assets
54,052
90,539
Oil and natural gas properties (full cost method):
Evaluated
816,186
755,482
Unevaluated
49,091
58,909
Gross oil and natural gas properties
865,277
814,391
Less - accumulated depletion
(497,272
)
(445,975
)
Net oil and natural gas properties
368,005
368,416
Other operating property and equipment:
Other operating property and equipment
4,663
4,640
Less - accumulated depreciation
(2,455
)
(1,817
)
Net other operating property and equipment
2,208
2,823
Other noncurrent assets:
Assets from derivative contracts
4,052
4,877
Operating lease right of use assets
453
1,027
Other assets
2,278
17,656
Total assets
$
431,048
$
485,338
Current liabilities:
Accounts payable and accrued liabilities
$
52,682
$
66,525
Liabilities from derivative contracts
12,330
17,191
Current portion of long-term debt
12,246
50,106
Operating lease liabilities
406
594
Total current liabilities
77,664
134,416
Long-term debt, net
145,535
140,276
Other noncurrent liabilities:
Liabilities from derivative contracts
6,954
16,058
Asset retirement obligations
19,156
17,458
Operating lease liabilities
84
490
Other
—
2,084
Commitments and contingencies
Temporary equity:
Redeemable convertible preferred stock: 138,000 shares and 98,000 shares
177,535
106,535
of $0.0001 par value authorized, issued and outstanding as of
December 31, 2024 and 2023, respectively
Stockholders' equity:
Common stock: 100,000,000 shares of $0.0001 par value authorized;
16,456,563 shares issued and outstanding as of December 31, 2024
and 2023
2
2
Additional paid-in capital
288,993
321,012
Accumulated deficit
(284,875
)
(252,993
)
Total stockholders' equity
4,120
68,021
Total liabilities and stockholders' equity
$
431,048
$
485,338
BATTALION OIL CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)(In thousands)
Three Months Ended
Years Ended
December 31,
December 31,
2024
2023
2024
2023
Cash flows from operating activities:
Net income (loss)
$
(22,202
)
$
32,688
$
(31,882
)
$
(3,048
)
Adjustments to reconcile net (loss) income to net cash provided by
operating activities:
Depletion, depreciation and accretion
14,155
12,337
52,926
56,624
Impairment of contract asset
18,511
—
18,511
—
Stock-based compensation, net
12
161
152
(1,070
)
Unrealized gain on derivative contracts
1,648
(45,403
)
(11,116
)
(21,934
)
Amortization/accretion of financing related costs
1,469
1,826
6,418
7,615
Loss (gain) on extinguishment of debt
7,489
—
7,489
—
Accrued settlements on derivative contracts
1,505
(2,587
)
403
259
Change in fair value of embedded derivative liability
(761
)
530
(2,084
)
(2,052
)
Other expense (income)
46
214
324
358
Cash flow from operations before changes in working capital
21,872
(234
)
41,141
36,752
Changes in working capital
(15,186
)
6,758
(5,786
)
(19,163
)
Net cash provided by operating activities
6,686
6,524
35,355
17,589
Cash flows from investing activities:
Oil and natural gas capital expenditures
(12,847
)
(16,196
)
(64,625
)
(46,288
)
Proceeds received from sales of oil and natural gas assets
—
3,740
7,015
4,929
Acquisition of oil and natural gas properties
—
—
(47
)
—
Other operating property and equipment capital expenditures
(4
)
(17
)
(23
)
(153
)
Contract asset
—
(3,705
)
(7,737
)
(10,308
)
Other
(6
)
1,439
(26
)
(25
)
Net cash used in investing activities
(12,857
)
(14,739
)
(65,443
)
(51,845
)
Cash flows from financing activities:
Proceeds from borrowings
162,000
—
162,000
-
Repayments of borrowings
(147,726
)
(10,027
)
(200,109
)
(35,093
)
Payment of deferred financing costs
(8,225
)
—
(8,400
)
—
Proceeds from issuance of preferred stock
—
33,182
38,781
94,607
Merger deposit
(10,000
)
—
—
—
Other
—
(1
)
—
(455
)
Net cash (used in) provided by financing activities
(3,951
)
23,154
(7,728
)
59,059
Net (decrease) increase in cash, cash equivalents and restricted cash
(10,122
)
14,939
(37,816
)
24,803
Cash, cash equivalents and restricted cash at beginning of period
29,925
42,680
57,619
32,816
Cash, cash equivalents and restricted cash at end of period
$
19,803
$
57,619
$
19,803
$
57,619
BATTALION OIL CORPORATIONSELECTED OPERATING DATA (Unaudited)
Three Months EndedDecember 31,
Years EndedDecember 31,
2024
2023
2024
2023
Production volumes:
Crude oil (MBbls)
643
510
2,363
2,415
Natural gas (MMcf)
1,861
2,102
7,814
8,718
Natural gas liquids (MBbls)
220
246
971
1,163
Total (MBoe)
1,173
1,106
4,636
5,031
Average daily production (Boe/d)
12,750
12,022
12,667
13,784
Average prices:
Crude oil (per Bbl)
$
68.33
$
77.57
$
73.89
$
76.04
Natural gas (per Mcf)
0.24
1.16
(0.28
)
1.27
Natural gas liquids (per Bbl)
23.26
20.00
21.44
20.48
Total per Boe
42.20
42.42
41.68
43.43
Cash effect of derivative contracts:
Crude oil (per Bbl)
$
(8.99
)
$
(10.43
)
$
(11.32
)
$
(7.76
)
Natural gas (per Mcf)
3.12
1.12
2.30
1.09
Natural gas liquids (per Bbl)
—
—
—
—
Total per Boe
0.02
(2.69
)
(1.90
)
(1.84
)
Average prices computed after cash effect of settlement of derivative contracts:
Crude oil (per Bbl)
$
59.34
$
67.14
$
62.57
$
68.28
Natural gas (per Mcf)
3.36
2.28
2.02
2.36
Natural gas liquids (per Bbl)
23.26
20.00
21.44
20.48
Total per Boe
42.22
39.73
39.78
41.59
Average cost per Boe:
Production:
Lease operating
$
9.45
$
9.63
$
9.77
$
8.92
Workover and other
1.81
2.24
1.12
1.42
Taxes other than income
2.02
2.05
2.42
2.37
Gathering and other
10.45
13.31
11.67
12.64
General and administrative, as adjusted (1)
3.21
3.63
2.72
3.39
Depletion
11.71
10.80
11.06
10.97
(1) Represents general and administrative costs per Boe, adjusted for items noted in the reconciliation below:
General and administrative:
General and administrative, as reported
$
6.04
$
4.93
$
3.96
$
3.78
Stock-based compensation:
Non-cash
(0.01
)
(0.15
)
(0.03
)
0.21
Non-recurring (charges) credits and other:
Cash
(2.82
)
(1.15
)
(1.21
)
(0.60
)
General and administrative, as adjusted(2)
$
3.21
$
3.63
$
2.72
$
3.39
Total operating costs, as reported
$
29.77
$
32.16
$
28.94
$
29.13
Total adjusting items
(2.83
)
(1.30
)
(1.24
)
(0.39
)
Total operating costs, as adjusted(3)
$
26.94
$
30.86
$
27.70
$
28.74
________________________(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.BATTALION OIL CORPORATIONRECONCILIATION (Unaudited)(In thousands, except per share amounts)
Three Months Ended
Years Ended
December 31,
December 31,
2024
2023
2024
2023
Net (loss) income available to common stockholders - diluted (1)
$
(30,881
)
$
26,993
$
(64,101
)
$
(15,095
)
Unrealized loss (gain) on derivatives contracts:
Crude oil
$
96
$
(38,604
)
$
(10,371
)
$
(22,601
)
Natural gas
1,552
(6,799
)
(745
)
667
Total mark-to-market non-cash charge
1,648
(45,403
)
(11,116
)
(21,934
)
Impairment of contract asset
18,511
—
18,511
—
Loss (gain) on extinguishment of debt
7,489
—
7,489
—
Change in fair value of embedded derivative liability
(761
)
529
(2,084
)
(2,053
)
Non-recurring charges (credits)
3,310
1,268
5,609
3,042
Selected items, before income taxes
30,197
(43,606
)
18,409
(20,945
)
Income tax effect of selected items
—
—
—
—
Selected items, net of tax
$
30,197
$
(43,606
)
$
18,409
$
(20,945
)
Net (loss) available to common stockholders, as adjusted (2)
$
(684
)
$
(16,613
)
$
(45,692
)
$
(36,040
)
Diluted net (loss) income per common share, as reported
$
(1.88
)
$
1.63
$
(3.90
)
$
(0.92
)
Impact of selected items
1.84
(2.65
)
1.12
(1.29
)
Diluted net (loss) per common share, excluding selected items (2)(3)
$
(0.04
)
$
(1.02
)
$
(2.78
)
$
(2.21
)
Net cash provided by operating activities
$
6,686
$
6,524
$
35,355
$
17,589
Changes in working capital
15,186
(6,758
)
5,786
19,163
Cash flow from operations before changes in working capital
21,872
(234
)
41,141
36,752
Cash components of selected items
2,611
4,707
6,012
3,301
Income tax effect of selected items
—
—
—
—
Cash flows from operations before changes in working capital, adjusted for selected items (1)
$
24,483
$
4,473
$
47,153
$
40,053
________________________(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 15, Earnings Per Share in our Form 10-K for the year ended December 31, 2024. (2) Net (loss) income 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 December 31, 2024 were calculated based upon weighted average diluted shares of 16.5 million, due to the net (loss) available to common stockholders, excluding selected items. The impact of selected items for the three and twelve months ended December 31, 2023 were calculated based upon weighted average diluted shares of 16.5 million and 16.4 million shares, respectively, due to the net (loss) available to common stockholders, excluding selected items.BATTALION OIL CORPORATIONADJUSTED EBITDA RECONCILIATION (Unaudited)(In thousands)
Three Months EndedDecember 31,
Years EndedDecember 31,
2024
2023
2024
2023
Net income (loss), as reported
$
(22,202
)
$
32,688
$
(31,882
)
$
(3,048
)
Impact of adjusting items:
Interest expense
6,135
8,917
29,009
36,511
Depletion, depreciation and accretion
14,155
12,337
52,926
56,624
Impairment of contract asset
18,511
—
18,511
—
Stock-based compensation
12
161
152
(1,070
)
Interest income
(278
)
(525
)
(2,122
)
(1,243
)
Loss (gain) on extinguishment of debt
7,489
—
7,489
—
Unrealized loss (gain) on derivatives contracts
1,648
(45,403
)
(11,116
)
(21,934
)
Change in fair value of embedded derivative liability
(761
)
529
(2,084
)
(2,053
)
Merger Termination Payment
(10,000
)
—
(10,000
)
—
Non-recurring charges (credits) and other
3,310
1,268
5,609
2,728
Adjusted EBITDA(1)
$
18,019
$
9,972
$
56,492
$
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 (loss) income. 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.BATTALION OIL CORPORATIONADJUSTED EBITDA RECONCILIATION (Unaudited)(In thousands)
Three Months
Three Months
Three Months
Three Months
Ended
Ended
Ended
Ended
December 31,2024
September 30,2024
June 30,2024
March 31,2024
Net income (loss), as reported
$
(22,202
)
$
21,628
$
(105
)
$
(31,203
)
Impact of adjusting items:
Interest expense
6,135
6,873
7,610
8,391
Depletion, depreciation and accretion
14,155
12,533
13,213
13,025
Impairment of contract asset
18,511
—
—
—
Stock-based compensation
12
5
36
99
Interest income
(278
)
(509
)
(634
)
(701
)
Loss (gain) on extinguishment of debt
7,489
—
—
—
Unrealized loss (gain) on derivatives contracts
1,648
(28,091
)
(4,434
)
19,761
Change in fair value of embedded derivative liability
(761
)
41
(436
)
(928
)
Merger Termination Payment
(10,000
)
—
—
—
Non-recurring charges (credits) and other
3,310
978
384
937
Adjusted EBITDA(1)
$
18,019
$
13,458
$
15,634
$
9,381
Adjusted LTM EBITDA(1)
$
56,492
________________________(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 (loss) income. 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.BATTALION OIL CORPORATIONADJUSTED EBITDA RECONCILIATION (Unaudited)(In thousands)
Three Months
Three Months
Three Months
Three Months
Ended
Ended
Ended
Ended
December 31,2023
September 30,2023
June 30,2023
March 31,2023
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.