Overview

• U.S. oil and gas producer's Q1 revenue fell yr/yr despite higher production volumes

• Company posted a net loss, mainly due to unrealized non-cash derivative losses

• Adjusted EBITDA declined from the prior year as realized prices fell

Outlook

• Company expects to execute refinancing and carried drilling venture agreements in late Q2 2026

• Battalion Oil expects pipeline project to come online in early Q3 2026, saving up to $6 mln annually

• Company says ongoing strategic negotiations should further improve balance sheet and reduce operating costs

Result Drivers

• LOWER REALIZED PRICES - Co said revenue decline was primarily due to a drop in average realized prices for oil, gas and NGLs compared to prior year

• HIGHER PRODUCTION - Increased production volumes resulted from more consistent and reliable processing after entering a long-term agreement with a new midstream partner

• COST REDUCTIONS - Lease operating and workover expense per BOE fell year-over-year due to increased production and lower workover activity

Company press release: ID:nGNX1pQNjH

Key Details

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