Earnings Releases·Nov 12, 2026, 4:41 PM ET

Battalion Oil Corporation — Third Quarter 2026 Earnings Summary

Total operating revenue increased to $45.6 million from $43.5 million in Q3 2025, while average daily net production declined to 11,359 Boe/d from 12,293 Boe/d; reported net loss widened to $41.1 million ($0.75/share) from $15.0 million ($0.91/share), though adjusted diluted net loss improved to $2.4 million ($0.04/share) from $15.7 million.
Adjusted EBITDA fell to $10.1 million from $18.9 million, driven by $6.5 million in realized hedge losses and a $38.4 million non-cash mark-to-market loss on derivatives, while net cash flow from operations dropped to $1.6 million from $28.0 million.
Net debt decreased to $70.4 million from $163.3 million a year prior, supported by $58.8 million in asset sale proceeds and $28.4 million in ATM proceeds, though the company repurchased preferred stock for $19.05 million and incurred higher gathering expenses due to a new long-term processing agreement.
Operations resumed with drilling on the first four JEDA wells exceeding expectations, prompting a rig mobilization for four additional wells, while a midstream transaction scheduled for November 2026 will transition crude transport from trucking to pipeline to lower costs.
No specific forward guidance was provided for production or capital spending; the company plans to maintain a judicious use of the ATM facility following balance sheet transformation and ceased nearly all trading under the program after the quarter.