Battalion Oil (BATL) AI Stock Analysis

• Market Cap: $43.12M
• Dividend Yield: N/A
• Average Volume (3M): 1.96M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.78
• Revenue Growth: -6.23%
• EPS Growth: 45.67%
• Country: US
• Employees: 38
• Sector: Energy
• Sector Strength: 74
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -1.00
• Shares Outstanding: 16,456,564
• 10 Day Avg. Volume: 5,855,015
• 30 Day Avg. Volume: 1,963,682
• PEG Ratio: <0.01
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.68
• Enterprise Value/Market Cap: 8.34
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 4.64
• Enterprise Value/Ebitda: 1.50
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 44 Neutral
• Price Target: $2.50 ▼(-4.58%Downside)

Battalion Oil's stock is rated low primarily due to significant financial instability and corporate challenges, including a NYSE delisting notice. While technical indicators show some short-term bullish trends, the overall financial health and negative valuation metrics weigh heavily against the stock.

Battalion Oil Business Overview & Revenue Model

Company Description

Battalion Oil Corporation, an independent energy company, engages in the acquisition, production, exploration, and development of onshore oil and natural gas assets in the United States. As of December 31, 2021, the company held interests in 40,400 net acres in the Delaware Basin located in the counties of Pecos, Reeves, Ward, and Winkler, Texas. It also had estimated proved reserves of approximately 95.9 million barrels of oil equivalent comprising 58.7 million barrels of crude oil, 16.3 million barrels of natural gas liquids, and 125.0 billion cubic feet of natural gas. The company was formerly known as Halcón Resources Corporation and changed its name to Battalion Oil Corporation in January 2020. Battalion Oil Corporation was founded in 1987 and is headquartered in Houston, Texas.

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 concerning, with challenges in profitability indicated by a negative EBIT and a low net profit margin. The balance sheet shows significant financial distress with negative stockholders' equity, although cash flow shows some positive trends.

Income Statement

Battalion Oil's income statement reflects a challenging financial situation, with gross profit margin standing at approximately 41.68% for TTM. The company struggles with profitability, as indicated by negative EBIT and a low net profit margin of 2.79% in the TTM. Revenue growth is negative, declining from $193.89 million to $191.39 million, highlighting a contraction in business. Despite some EBITDA margin improvement, the overall picture presents a company facing profitability challenges.

Balance Sheet

The balance sheet reveals significant concerns, particularly a negative stockholders' equity of $-1.76 million, indicating financial distress. The debt-to-equity ratio cannot be calculated due to negative equity, and the equity ratio is also negative. Although the company has a reasonable cash position, the overall financial stability is compromised by high total liabilities relative to assets.

Cash Flow

The cash flow statement shows some positive signs with an increase in operating cash flow to $44.17 million, supporting a positive free cash flow of $56.05 million in the latest period. The operating cash flow to net income ratio is strong at 8.27, indicating efficient cash generation relative to net income. However, the company's ability to sustain this cash flow amidst ongoing operational challenges remains uncertain.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
191.39M	193.89M	220.76M	359.06M	285.20M	146.78M
	Gross Profit
77.47M	79.24M	97.92M	240.17M	192.60M	40.42M
	EBIT
-8.38M	-11.74M	17.58M	152.14M	103.37M	-261.83M
	EBITDA
72.64M	36.00M	86.89M	94.05M	25.11M	-161.02M
	Net Income Common Stockholders
5.34M	-31.88M	-3.05M	18.54M	-28.32M	-229.71M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
73.57M	19.71M	57.53M	32.73M	46.86M	4.29M
	Total Assets
506.25M	431.05M	485.34M	485.36M	390.27M	346.50M
	Total Debt
22.91M	165.87M	197.88M	218.09M	182.37M	160.61M
	Net Debt
-50.66M	146.16M	140.35M	193.37M	135.51M	156.32M
	Total Liabilities
508.01M	426.93M	310.78M	400.73M	326.56M	256.54M
	Stockholders Equity
-1.76M	4.12M	174.56M	84.63M	63.70M	89.96M
Cash Flow		Free Cash Flow
56.05M	-29.34M	-28.85M	-47.82M	15.64M	-51.70M
	Operating Cash Flow
44.17M	35.35M	17.59M	78.80M	68.57M	50.20M
	Investing Cash Flow
-53.71M	-65.44M	-51.84M	-126.13M	-51.91M	-72.35M
	Financing Cash Flow
34.16M	-7.73M	59.06M	31.79M	27.41M	16.18M

Battalion Oil Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BATL, the sentiment is Positive. The current price of 2.62 is above the 20-day moving average (MA) of 1.63, above the 50-day MA of 1.42, and below the 200-day MA of 2.86, indicating a neutral trend. The MACD of 0.30 indicates Negative momentum. The RSI at 72.86 is Negative, neither overbought nor oversold. The STOCH value of 56.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BATL.

Battalion Oil Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MXC	63 Neutral	$26.82M	17.95	7.57%	0.76%	2.12%	-30.63%
Sector *	58 Neutral	$7.58B	3.29	-4.46%	10.00%	0.84%	-49.61%
BRN	49 Neutral	$14.38M	―	-49.65%	―	-25.50%	-85.87%
BATL	44 Neutral	$43.12M	―	36.17%	―	-6.23%	45.67%
HUSA		$30.50M	―	-108.38%	―	―	―
BPT		$10.85M	―	0.00%	―	―	―
MTR		$16.31M	48.00	10.96%	4.37%	―	―

Battalion Oil Corporate Events

Battalion Oil Holds 2025 Annual Meeting Decisions

Battalion Oil‘s 2025 Annual Meeting saw the election of six directors and the approval of executive compensation on a non-binding basis. The company decided to hold an advisory vote on executive compensation every three years. Additionally, several amendments to the company’s charter were approved, except for the Preferred Stock Voting Amendment, which did not receive enough votes.

Battalion Oil Faces NYSE Delisting Notice

On May 30, 2025, Battalion Oil Corporation received a notice from NYSE American LLC indicating non-compliance with listing standards due to insufficient stockholders’ equity and reported losses. The company must submit a compliance plan by June 30, 2025, to avoid delisting, which could affect stock liquidity and financing options. The notice does not immediately impact the company’s stock trading or operations.

Battalion Oil Reports Q1 2025 Net Loss

In the first quarter of 2025, Battalion Oil Corporation reported sales volumes of 11,900 barrels of oil equivalent per day, with a 53% oil composition. The company continued its six-well drilling plan, completing four wells and progressing on the remaining two, while also achieving cost efficiencies. Despite a decrease in production and revenue compared to the previous year, Battalion managed to reduce gathering expenses due to increased facility operations and reported an adjusted EBITDA of $15.1 million. However, the company faced a net loss of $5.8 million, attributed to decreased production and increased operating expenses.