BATL earnings analysis
What we found in BATL's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Battalion reported $48.1 million of second-quarter revenue and $0.34 diluted GAAP EPS, improving from $43 million and $(0.21), respectively, in the prior-year quarter. Production was 12,407 Boe/d and net debt declined to $74.2 million, but the company remains exposed to high-cost floating-rate debt, commodity-price volatility and hedge requirements. The most material updated risk is dilution: 32,292,485 shares were issued through the ATM Program, which has capacity for up to $150.0 million of additional equity issuance. No quantified financial guidance was provided.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue and GAAP EPS Improved
- Second-quarter revenue was $48.1 million and diluted GAAP EPS was $0.34, improving from the prior-year quarter’s $43 million of revenue and $(0.21) diluted EPS.
- Production and Deleveraging
- Production was 12,407 Boe/d, while net debt declined to $74.2 million, indicating improved operating scale and deleveraging.
- Debt Profile Disclosed
- The company’s variable-rate debt had a principal amount of $162.5 million and a weighted-average interest rate of 11.58% at June 30, 2026.
- Hedging Framework Maintained
- Management’s hedging policy requires coverage of approximately 50% to 85% of anticipated oil and natural gas production on a rolling basis for the next four years.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Significant Equity Dilution
- Shares outstanding increased by 32,292,485 from May 5, 2026 through the filing date because of ATM sales. The ATM Program permits issuance of up to $150.0 million of additional common stock, creating substantial dilution risk.
- High Interest-Rate Exposure
- Variable-rate debt totaled $162.5 million at June 30, 2026, with a weighted-average rate of 11.58%; a 10% change in market interest rates would affect annual cash flows by approximately $1.9 million.
- Commodity and Hedge Risk
- The company expects energy prices to remain volatile and unpredictable, and its credit agreement requires hedging approximately 50% to 85% of anticipated production. Commodity-price declines could adversely affect its ability to finance capital expenditures and operations.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.34
What they said about what is next.
No quantified revenue or EPS guidance is provided. Management states energy prices are expected to remain volatile and unpredictable and discloses a requirement to hedge approximately 50% to 85% of anticipated oil and natural gas production over the next four years.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 13, 2026
- Battalion Oil Corporation reported a decline in Q1 2026 performance with revenue of $39.2 million, which missed estimates, and a net loss of $56.5 million resulting in a diluted EPS of -$3.72. Production increased, but…
- 10-K · March 23, 2026
- Battalion Oil (BATL) is a Delaware Basin‑focused, operator‑centric E&P with 39,968 net acres and 82 operated wells; management emphasizes liquids‑rich development, cost/capex discipline, hedging and selective M&A. The…
- 10-Q · May 14, 2025
- Battalion reported total operating revenues of $47,475,000 and GAAP net income of $6,023,000 for the three months ended March 31, 2025, but net income available to common stockholders was a loss of $5,797,000 after…
- 10-Q · November 12, 2024
- Battalion reported total operating revenues of $45,266,000 for the three months ended September 30, 2024, down from $54,106,000 a year earlier, but swung to net income of $21,628,000 (three months) driven by a…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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