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…
Earnings analysis · 10-Q
BATL earnings analysis
Filed August 12, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.34
What stood out
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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.
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Production and Deleveraging
Production was 12,407 Boe/d, while net debt declined to $74.2 million, indicating improved operating scale and deleveraging.
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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.
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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.
What to watch
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.