Battalion Oil (BATL) AI Stock Analysis

• Market Cap: $21.89M
• Dividend Yield: N/A
• Average Volume (3M): 64.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.24
• Revenue Growth: -11.57%
• EPS Growth: -424.12%
• Country: US
• Employees: 38
• Sector: Energy
• Sector Strength: 45
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -4.30
• Shares Outstanding: 16,456,564
• 10 Day Avg. Volume: 96,617
• 30 Day Avg. Volume: 64,509
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.11
• Price to Cash Flow (P/CF): -1.10
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Battalion Oil's overall score reflects significant financial challenges and technical weaknesses. Persistent losses, high leverage, and lack of profitability weigh heavily on the stock's performance. Despite some operational cash generation, the bearish technical indicators and negative valuation metrics contribute to the low score. The company's ability to improve financial health and operational efficiency will be critical for future performance.

Battalion Oil Business Overview & Revenue Model

Company Description

Battalion Oil Corporation (BATL) is an energy company engaged in the exploration, development, and production of oil and natural gas. The company primarily operates in the oil-rich regions of the United States, focusing on leveraging advanced technologies and sustainable practices to maximize resource extraction and efficiency. Battalion Oil is committed to delivering energy solutions that meet the growing demand while maintaining a strong emphasis on environmental stewardship and safety.

How the Company Makes Money

Battalion Oil Corporation generates revenue through the production and sale of crude oil and natural gas. The company explores and develops oil and gas reserves, extracts these resources, and then sells them to refineries and other buyers in the energy market. Revenue is primarily derived from the sale of crude oil, which is subject to market price fluctuations influenced by global supply and demand dynamics. Additionally, Battalion Oil may engage in hedging activities to manage price risks and stabilize cash flows. The company's earnings are also affected by its operational efficiency, cost management, and strategic partnerships that enhance its exploration and production capabilities.

Battalion Oil Financial Statement Overview

Summary

Battalion Oil's financial performance is marked by improved profitability and cash generation but challenged by inconsistent revenue growth and high leverage. The company's ability to generate positive cash flow is a positive sign, but the high debt-to-equity ratio and low equity base present significant financial risks.

Income Statement

Battalion Oil has shown a volatile revenue trajectory with a recent decline in total revenue from the previous annual figures but a slight recovery in the TTM period. Gross profit margin for the TTM stands at 23.67%, indicating reasonable efficiency in controlling production costs. However, the net profit margin improved to 12.06% after a negative margin last year, signaling better cost management and profitability. EBIT and EBITDA margins also reflect better operational performance. Despite these improvements, the company has experienced inconsistent revenue growth, which poses a risk.

Balance Sheet

The company's balance sheet shows high leverage with a debt-to-equity ratio of 4.30 in the TTM period, which is a potential risk. Despite this, the equity ratio of 7.64% suggests a heavy reliance on debt finance over equity. The return on equity has improved to 65.78%, driven by better net income but remains a concern due to the low equity base. The company needs to manage its leverage carefully to avoid financial distress.

Cash Flow

Cash flow analysis shows improvement with positive free cash flow of $25.58 million in the TTM period, a significant turnaround from the negative figures in previous years. The operating cash flow to net income ratio is 1.52, indicating strong cash generation relative to net income. This is a positive sign, suggesting enhanced cash efficiency. The free cash flow to net income ratio of 1.11 further supports the company's ability to generate cash beyond its net profits, which is crucial for sustaining operations and growth.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
190.79M	218.50M	359.06M	285.20M	148.29M	224.69M
	Gross Profit
45.14M	102.92M	252.37M	192.60M	40.42M	54.12M
	EBIT
4.86M	17.58M	152.14M	103.37M	-44.11M	-47.35M
	EBITDA
102.27M	86.89M	94.05M	25.11M	-161.02M	-1.11B
	Net Income Common Stockholders
23.01M	-3.05M	-91.47M	-36.34M	-236.34M	-1.05B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
46.87M	57.53M	32.73M	46.86M	4.29M	5.70M
	Total Assets
2.08B	485.34M	485.36M	390.27M	346.50M	584.67M
	Total Debt
613.11M	197.88M	218.09M	182.37M	160.61M	147.17M
	Net Debt
566.24M	140.35M	185.37M	135.51M	156.32M	141.47M
	Total Liabilities
886.57M	417.32M	400.73M	326.56M	256.54M	268.02M
	Stockholders Equity
1.20B	68.02M	84.63M	63.70M	89.96M	316.65M
Cash Flow		Free Cash Flow
25.58M	-28.85M	-47.82M	15.64M	-51.70M	-318.47M
	Operating Cash Flow
35.06M	17.59M	78.80M	68.57M	50.20M	-19.58M
	Investing Cash Flow
-67.33M	-51.84M	-126.13M	-51.91M	-72.35M	-297.21M
	Financing Cash Flow
19.38M	59.06M	31.79M	27.41M	16.18M	267.82M

Battalion Oil Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BATL, the sentiment is Negative. The current price of 1.23 is below the 20-day moving average (MA) of 1.26, below the 50-day MA of 1.45, and below the 200-day MA of 3.35, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 48.82 is Neutral, neither overbought nor oversold. The STOCH value of 85.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BATL.

Battalion Oil Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MXC	68 Neutral	$15.35M	11.34	7.57%	―	2.12%	-30.63%
Sector *	57 Neutral	$7.44B	4.21	-3.75%	6.64%	-0.07%	-64.77%
BATL	40 Underperform	$21.89M	―	-88.39%	―	-11.57%	-424.12%
BRN	39 Underperform	$14.58M	―	-46.32%	―	-18.26%	-149.71%

Battalion Oil Corporate Events

Battalion Oil Ends Merger Agreement with Fury Resources

Battalion Oil Corporation, a Delaware-based company, has terminated its Agreement and Plan of Merger with Fury Resources, Inc. and San Jacinto Merger Sub, Inc. due to unmet conditions by the parent company, including securing qualifying additional financing. As a result of the termination, Battalion Oil is entitled to retain $9,999,999.99 and is also seeking a remaining fee of $15,000,000 from Fury Resources, which is guaranteed by Abraham Mirman under a limited guarantee agreement.