Battalion Oil (BATL) AI Stock Analysis

• Market Cap: $19.58M
• Dividend Yield: N/A
• Average Volume (3M): 76.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• Revenue Growth: -4.08%
• EPS Growth: -325.73%
• Country: US
• Employees: 38
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.91
• Shares Outstanding: 16,456,564
• 10 Day Avg. Volume: 34,050
• 30 Day Avg. Volume: 76,575
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.16
• Price to Sales (P/S): 0.15
• P/FCF Ratio: -0.96
• Enterprise Value/Market Cap: 19.86
• Enterprise Value/Revenue: 2.12
• Enterprise Value/Gross Profit: 4.83
• Enterprise Value/Ebitda: 8.66
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $1.00 ▼(-14.53% Downside)

Battalion Oil's overall stock score is primarily impacted by its challenging financial performance, characterized by declining revenues and high leverage. Technical analysis indicates a bearish trend, while valuation metrics are concerning due to negative earnings. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Cash Flow Generation

Improved cash flow generation indicates that Battalion Oil is able to generate cash from its operations, which is crucial for sustaining operations and funding future growth, despite current profitability challenges.

Operational Efficiency

An improvement in gross profit margin suggests better operational efficiency, which can help Battalion Oil improve its profitability over time, especially if revenue growth stabilizes.

Strategic Location

Operating in the Permian Basin, a prolific oil and gas region, provides Battalion Oil with access to significant reserves, supporting long-term production potential and strategic growth opportunities.

Negative Factors

High Leverage

High leverage and negative equity suggest potential solvency issues, limiting Battalion Oil's financial flexibility and increasing risk, which could impact long-term stability.

Declining Revenues

Declining revenues reflect challenges in maintaining market share or production levels, which could hinder Battalion Oil's ability to achieve sustainable growth and profitability.

Negative Profitability

Negative profitability indicates ongoing operational challenges and may require strategic changes to improve efficiency and cost management to achieve long-term financial health.

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 generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids extracted from its production operations. The company employs a revenue model that includes the direct sale of hydrocarbons to various customers, including refineries and distributors, often at market prices influenced by global oil and gas benchmarks. Key revenue streams include the production from its operated and non-operated wells, as well as potential revenues from joint ventures and partnerships with other industry players. Additionally, Battalion Oil may benefit from strategic partnerships that enhance its operational capabilities, access to new technologies, and expanded market reach, which can contribute significantly to its overall earnings.

Battalion Oil Financial Statement Overview

Summary

Battalion Oil faces significant financial challenges, with declining revenues, negative profitability, and high leverage. While there are some positive signs in cash flow generation, the company's financial position remains precarious, requiring strategic improvements to stabilize and grow.

Income Statement

Battalion Oil's income statement reveals a challenging environment with declining revenues and negative net profit margins. The TTM data shows a slight improvement in gross profit margin to 44.5%, but the net profit margin remains negative at -6.6%. Revenue growth has been negative, indicating a contraction in sales. The EBIT and EBITDA margins have also been under pressure, reflecting operational challenges.

Balance Sheet

The balance sheet indicates financial instability, with a negative stockholders' equity in the TTM period, leading to a negative debt-to-equity ratio. This suggests high leverage and potential solvency issues. Return on equity is negative, highlighting profitability challenges. The equity ratio is also concerning, indicating a heavy reliance on debt financing.

Cash Flow

Cash flow analysis shows some positive trends, with a significant increase in free cash flow growth in the TTM period. The operating cash flow to net income ratio is relatively healthy, suggesting that the company is generating cash from operations despite net losses. However, the free cash flow to net income ratio indicates that cash generation is not sufficient to cover net losses fully.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	183.33M	193.89M	220.76M	359.06M	285.20M	148.29M
Gross Profit	80.55M	79.24M	100.18M	233.89M	180.28M	40.42M
EBITDA	44.94M	36.00M	86.89M	94.05M	25.11M	-161.02M
Net Income	-12.12M	-31.88M	-3.05M	18.54M	-28.32M	-229.71M
Balance Sheet
Total Assets	491.69M	431.05M	485.34M	485.36M	390.27M	346.50M
Cash, Cash Equivalents and Short-Term Investments	50.72M	19.71M	57.53M	32.73M	48.75M	4.29M
Total Debt	421.70M	165.87M	197.88M	218.09M	182.37M	168.23M
Total Liabilities	511.94M	249.39M	310.78M	400.73M	326.56M	256.54M
Stockholders Equity	-20.25M	181.66M	174.56M	84.63M	63.70M	89.96M
Cash Flow
Free Cash Flow	44.74M	-29.34M	-28.85M	-47.82M	15.64M	-51.70M
Operating Cash Flow	57.59M	35.35M	17.59M	78.80M	68.57M	50.20M
Investing Cash Flow	-82.82M	-65.44M	-51.84M	-126.13M	-51.91M	-72.35M
Financing Cash Flow	45.84M	-7.73M	59.06M	31.79M	27.41M	16.18M

Battalion Oil Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 1.17 is above the 20-day moving average (MA) of 1.15, above the 50-day MA of 1.14, and below the 200-day MA of 1.27, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.43 is Neutral, neither overbought nor oversold. The STOCH value of 39.12 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	71 Outperform	$21.28M	12.89	9.11%	0.96%	7.26%	40.01%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
BRN	50 Neutral	$11.18M	-1.67	-58.49%	―	-34.85%	-68.02%
BATL	44 Neutral	$19.58M	-0.35	-164.49%	―	-4.08%	-325.73%
VIVK	41 Neutral	$8.88M	-0.03	-163.97%	―	101.82%	-605.58%

Battalion Oil Corporate Events

Battalion Oil Reports Q3 2025 Financial Results

Battalion Oil Corporation reported its third quarter 2025 financial and operating results, highlighting a sales volume of 12,293 barrels of oil equivalent per day, with 53% being oil. The company faced challenges with its acid gas injection facility, which ceased operations on August 11, 2025, leading to temporary shut-ins at the Monument Draw field. Despite these setbacks, Battalion managed to redirect gas production to third-party facilities and brought most wells back online. The company also amended its credit facility to allow for greater operational flexibility and continues to explore merger, acquisition, and divestiture opportunities. Financially, Battalion experienced a decrease in revenue compared to the previous year, attributed to lower realized prices, but reported an increase in adjusted EBITDA. The company ended the quarter with $213.8 million in term loan indebtedness and $50.5 million in liquidity.