Battalion Oil Corporation Reports $6M Net Income in Q1 2025, Down from $31.2M Loss

Battalion Oil Corporation reported its financial results for the first quarter of 2025, revealing a net income of $6.0 million, a significant turnaround from a net loss of $31.2 million in the same period of 2024. The company's total operating revenues for the quarter were $47.5 million, down from $49.9 million year-over-year, primarily due to a decrease in production volumes. Oil sales contributed $39.7 million, while natural gas and natural gas liquids sales accounted for $2.8 million and $4.9 million, respectively. The average realized price for oil was $69.77 per barrel, compared to $74.96 in the prior year, reflecting the impact of fluctuating commodity prices.

In terms of operational performance, Battalion's production averaged 11,900 barrels of oil equivalent (Boe) per day, a decline from 12,989 Boe per day in the first quarter of 2024. This decrease was attributed to the timing of new wells coming online, as no new wells were completed during the quarter. The company reported a reduction in total operating expenses to $44.1 million from $49.8 million, driven by lower lease operating costs and gathering expenses. The decrease in gathering expenses was particularly notable, falling from $17.3 million to $12.0 million, as the company benefited from a full quarter of operations at its acid gas injection facility.

Strategically, Battalion Oil has made significant moves to enhance its financial position, including the completion of a $63 million incremental term loan in January 2025, which was part of a broader refinancing effort. This refinancing was aimed at repaying previous debts and improving liquidity. As of March 31, 2025, the company had $73.6 million in cash and cash equivalents, a substantial increase from $19.7 million at the end of 2024. The company’s total debt stood at $225.1 million, with a current portion of $22.6 million due within the next year.

Looking ahead, Battalion Oil is focused on maintaining its operational efficiency and managing its capital expenditures. The company plans to continue its drilling activities in the Delaware Basin, where it has a significant inventory of drilling locations. Battalion is also committed to hedging a substantial portion of its anticipated oil and natural gas production to mitigate the risks associated with commodity price volatility. The company’s management remains cautious about market conditions and is prepared to adjust its operational plans as necessary to ensure compliance with financial covenants and maintain liquidity.