Battalion Oil — Financial Results
Revenue Fell 15% as Lower Oil Prices and Production Both Worked Against the Company
| 2025 | 2024 | |
|---|---|---|
| Total oil, gas & NGL revenue | $165.0M | $193.2M |
| Average oil price per barrel | $63.51 | $73.89 |
| Average daily production (Boe/d) | 12,096 | 12,667 |
Revenue dropped $28.3 million year-over-year, with roughly $19.6 million coming from lower oil prices and $8.7 million from shrinking production. Production declined partly due to natural well depletion and partly because a key gas-treating facility (the AGI Facility, which processes the company's high-sulfur natural gas) shut down unexpectedly mid-year.
A Failed Gas-Treating Joint Venture Cost the Company Tens of Millions and Disrupted Production
The company co-owned a facility (the AGI Facility) to treat its sour natural gas (gas containing high concentrations of hydrogen sulfide). After years of delays and mechanical problems, the facility processed gas from March 2024 until abruptly ceasing operations on August 11, 2025. The company had already written off $18.5 million in 2024 related to a disputed claim against its joint venture partner, plus an additional $1.1 million write-off in 2025. The sudden shutdown forced temporary production curtailments, and the company only secured a long-term replacement processing deal in January 2026.
The Company Swung to a Net Profit in 2025 — But Mostly Thanks to Derivatives, Not Operations
| 2025 | 2024 | |
|---|---|---|
| Net income (loss) | $11.9M | $(31.9M) |
| Net gain on derivative contracts | $45.3M | $2.3M |
| Interest expense | $26.7M | $15.0M |
The headline profit of $11.9 million looks like a turnaround, but the entire swing was driven by a $45.3 million gain on derivative contracts (financial instruments used to lock in future commodity prices). Without that gain, core operations would have shown a significant loss. Interest costs also nearly doubled to $26.7 million following a major debt refinancing in late 2024.
The Company Sold Assets, Raised Equity, and Acquired New Acreage to Reshape Its Balance Sheet
In a flurry of post-year-end activity, the company sold its West Quito Draw properties for $60.1 million (closing February 2026), using $45.6 million to pay down debt. It then raised $15 million through a private placement (selling shares directly to an institutional investor) and acquired 7,090 acres adjacent to its core Monument Draw area in an all-stock deal. The net effect is a leaner, more focused asset base concentrated in Monument Draw, Ward County, Texas.
The Company Is Burning Through Equity and Faces a Stock Exchange Compliance Warning
The company reported negative stockholders' equity (liabilities exceeding assets) of $(32.8) million at December 31, 2025, worsening from $(1.8) million just nine months earlier. This triggered a formal notice from the NYSE American exchange in May 2025 warning of non-compliance with listing standards. The company submitted a remediation plan, which was accepted, giving it until November 2026 to restore compliance. Shares continue to trade under the ticker "BATL" for now, but the situation signals ongoing financial stress.
Gathering Costs Fell Sharply, Partially Cushioning the Revenue Decline
Gathering and other expenses (costs to collect, treat, and transport production) dropped from $54.1 million in 2024 to $43.7 million in 2025 — a saving of $10.4 million. On a per-barrel basis, costs fell from $11.67 to $9.91. Improvements at central production facilities and the AGI Facility processing more gas before its closure both contributed. This was one of the few genuine operational bright spots in an otherwise difficult year.