BATTALION OIL CORP Files 2023 Annual Report on Form 10-K

TL;DR

<b>BATTALION OIL CORP has filed its 2023 annual report (10-K) detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

BATTALION OIL CORP (BATL) filed a Annual Report (10-K) with the SEC on April 1, 2024. BATTALION OIL CORP filed its 2023 Form 10-K on April 1, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business is Crude Petroleum & Natural Gas extraction. BATTALION OIL CORP is incorporated in Delaware. The company's headquarters are located in Houston, Texas.

Why It Matters

For investors and stakeholders tracking BATTALION OIL CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of BATTALION OIL CORP's financial health, operational activities, and strategic direction for the past fiscal year, crucial for investors and stakeholders to assess performance and future prospects. The detailed financial statements and risk factor disclosures within the 10-K are essential for understanding the company's exposure to market volatility, operational challenges, and regulatory changes within the oil and gas sector.

Risk Assessment

Risk Level: medium — BATTALION OIL CORP shows moderate risk based on this filing. The company operates in the volatile oil and gas industry, which is subject to significant price fluctuations and regulatory changes, as indicated by its SIC code for Crude Petroleum & Natural Gas and the general nature of 10-K filings for such companies.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess BATTALION OIL CORP's performance and outlook in the energy sector.

Key Numbers

• 20231231 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 20240401 — Filed As Date (FILED AS DATE)
• 001-35467 — SEC File Number (SEC FILE NUMBER)
• 832-538-0300 — Business Phone (BUSINESS PHONE)

Key Players & Entities

• BATTALION OIL CORP (company) — FILER
• 0001558370-24-004422 (other) — ACCESSION NUMBER
• 20231231 (date) — CONFORMED PERIOD OF REPORT
• 20240401 (date) — FILED AS DATE
• 0001282648 (company) — CENTRAL INDEX KEY
• 1311 (other) — STANDARD INDUSTRIAL CLASSIFICATION
• DE (other) — STATE OF INCORPORATION
• HOUSTON (location) — CITY

FAQ

Industry Context

BATTALION OIL CORP operates within the Crude Petroleum & Natural Gas industry, a sector characterized by commodity price volatility and significant capital investment requirements.

Regulatory Implications

As a publicly traded company in the oil and gas sector, BATTALION OIL CORP is subject to regulations from the Securities and Exchange Commission (SEC) and potentially environmental and operational regulations.

What Investors Should Do

1. Review the full 10-K filing for detailed financial statements and management discussion.
2. Analyze the risk factors section for potential challenges and uncertainties.
3. Compare BATTALION OIL CORP's performance metrics against industry benchmarks.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K filing.
• 2024-04-01: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial analysis of the 2023 10-K filing; historical comparison data is not yet available from this specific document.

Key Financial Figures

• $0.0001 B — ich registered Common Stock par value $0.0001 BATL NYSE American Securities registe
• $78.21 — e of West Texas Intermediate ("WTI") of $78.21 per Bbl and a Henry Hub natural gas pri
• $2.64 — bl and a Henry Hub natural gas price of $2.64 per MMBtu, based on the preceding 12-mo
• $50.1 million — r-term debt maturities of approximately $50.1 million in 2024, and maintain compliance with o
• $9.80 — ares of common stock of the Company for $9.80 per share in cash, which represents a t
• $450.0 million — otal transaction value of approximately $450.0 million (the "Merger"). The preferred stock (as
• $55.00 million — ed equity securities in an amount up to $55.00 million over the next 12 months. An aggregate o
• $34.1 m — letter to the Investors for proceeds of $34.1 million, net of $0.9 million of original
• $0.9 million — s for proceeds of $34.1 million, net of $0.9 million of original issue discount. At December
• $20.0 million — l issue discount. At December 31, 2023, $20.0 million remained available for issuance under t
• $15.1 million — al contributions totaling approximately $15.1 million during the year ended December 31, 2023
• $3.0 million — first quarter of 2024 of approximately $3.0 million to fund WAT with the necessary capital

Filing Documents

• batl-20231231x10k.htm (10-K) — 2554KB
• batl-20231231xex21d1.htm (EX-21.1) — 7KB
• batl-20231231xex31.htm (EX-31) — 15KB
• batl-20231231xex32.htm (EX-32) — 7KB
• batl-20231231xex97.htm (EX-97) — 56KB
• batl-20231231xex99d1.htm (EX-99.1) — 145KB
• batl-20231231xex97001.jpg (GRAPHIC) — 12KB
• batl-20231231xex97002.jpg (GRAPHIC) — 9KB
• batl-20231231xex99d1001.jpg (GRAPHIC) — 11KB
• batl-20231231xex99d1002.jpg (GRAPHIC) — 34KB
• batl-20231231xex99d1003.jpg (GRAPHIC) — 10KB
• 0001558370-24-004422.txt (&nbsp;) — 11174KB
• batl-20231231.xsd (EX-101.SCH) — 76KB
• batl-20231231_cal.xml (EX-101.CAL) — 89KB
• batl-20231231_def.xml (EX-101.DEF) — 324KB
• batl-20231231_lab.xml (EX-101.LAB) — 687KB
• batl-20231231_pre.xml (EX-101.PRE) — 515KB
• batl-20231231x10k_htm.xml (XML) — 1855KB

Business

Business 8 ITEM 1A.

Risk factors

Risk factors 21 ITEM 1B. Unresolved staff comments 39 ITEM 1C. Cybersecurity 39 ITEM 2.

Properties

Properties 40 ITEM 3.

Legal proceedings

Legal proceedings 40 ITEM 4. Mine safety disclosures 40 PART II ITEM 5. Market for registrant's common equity, related stockholder matters and issuer purchases of equity securities 40 ITEM 6. Reserved 41 ITEM 7.

Management's discussion and analysis of financial condition and results of operations

Management's discussion and analysis of financial condition and results of operations 42 ITEM 7A.

Quantitative and qualitative disclosures about market risk

Quantitative and qualitative disclosures about market risk 54 ITEM 8. Consolidated financial statements and supplementary data 55 ITEM 9. Changes in and disagreements with accountants on accounting and financial disclosure 95 ITEM 9A.

Controls and procedures

Controls and procedures 95 ITEM 9B. Other information 95 ITEM 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 95 PART III ITEM 10 . Directors, executive officers and corporate governance 96 ITEM 11.

Executive compensation

Executive compensation 96 ITEM 12.

Security ownership of certain beneficial owners and management and related stockholder matters

Security ownership of certain beneficial owners and management and related stockholder matters 96 ITEM 13. Certain relationships and related transactions, and director independence 96 ITEM 14. Principal accountant fees and services 97 PART IV ITEM 15. Exhibits and financial statements schedules 97 ITEM 16. Form 10-K Summary 99 2 Table of Contents Special note regarding forward-looking statements This Annual Report on Form 10-K contains forward-looking statements within the meaning of the federal securities laws. All statements, other than statements of historical facts, may be forward-looking statements, should be evaluated as such and may concern, among other things, the structure, timing and completion of the proposed Merger (as defined below); any anticipated effects of the announcement, pendency or completion of the proposed Merger on the value of our common stock; ability to obtain any required regulatory approvals in connection with the proposed Merger; expenses related to the proposed Merger and any potential future costs; planned capital expenditures, potential increases in oil and natural gas production, potential costs to be incurred, future cash flows and borrowings, our financial position, business strategy and other plans and objectives for future operations. These forward-looking statements may be identified by their use of terms and phrases such as "may," "expect," "estimate," "project," "plan," "objective," "believe," "predict," "intend," "achievable," "anticipate," "will," "continue," "potential," "should," "could" and similar terms and phrases. Although we believe that the expectations reflected in forward-looking statements are reasonable, they do involve certain assumptions, risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements. Readers should consider carefully the risks described under the "Risk Factors" section of this report and other sections of

BUSINESS

ITEM 1. BUSINESS Overview Unless the context otherwise requires, all references in this report to "Battalion,", "the Company", "our," "us," and "we" refer to Battalion Oil Corporation and its subsidiaries, as a common entity. Battalion is the successor reporting company to Halcn Resources Corporation ("Halcn"). On January 21, 2020, we filed a Certificate of Amendment to our Amended and Restated Certificate of Incorporation with the Delaware Secretary of State to effect a change of our corporate name from Halcn Resources Corporation to Battalion Oil Corporation. We are an independent energy company focused on the acquisition, production, exploration and development of onshore liquids-rich oil and natural gas assets in the United States. Our properties and drilling activities are currently focused in the Delaware Basin, where we have an extensive drilling inventory that we believe offers attractive long-term economics. Our working interests in 39,867 net acres in the Delaware Basin as of December 31, 2023 are in Pecos, Reeves, Ward and Winkler Counties, Texas. This resource play is characterized by high oil and liquids-rich natural gas content in thick, continuous sections of source rock that can provide repeatable drilling opportunities and significant initial production rates. Our primary targets in this area are the Wolfcamp and Bone Spring formations. As of December 31, 2023, we had 90 operated wells producing in this area in addition to minor working interests in 19 non-operated wells. Our average daily net production from this area for the year ended December 31, 2023 was 13,784 Boe/d. At December 31, 2023, our estimated total proved oil and natural gas reserves were approximately 68.1 MMBoe, consisting of 34.6 MMBbls of oil, 14.9 MMBbls of NGLs and 111.7 Bcf of natural gas, as prepared by our independent reserve engineering firm, Netherland, Sewell & Associates, Inc. ("NSAI"). Reserves were prepared using a crude oil price of West Texas Intermediate ("

View Full Filing

View this 10-K filing on SEC EDGAR