Battalion Oil (BATL) AI Stock Analysis

• Market Cap: $22.05M
• Dividend Yield: N/A
• Average Volume (3M): 2.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.49
• Revenue Growth: -6.23%
• EPS Growth: 45.67%
• Country: US
• Employees: 38
• Sector: Energy
• Sector Strength: 45
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -1.00
• Shares Outstanding: 16,456,564
• 10 Day Avg. Volume: 110,856
• 30 Day Avg. Volume: 2,139,773
• PEG Ratio: 0.08
• Price to Book (P/B): -12.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.38
• Enterprise Value/Market Cap: -1.30
• Enterprise Value/Revenue: -0.04
• Enterprise Value/Gross Profit: -0.37
• Enterprise Value/Ebitda: -0.12
• 1Y Price Target: $2.50
• Price Target Upside: 86.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 41 Neutral
• Price Target: $1.50 ▲(11.94%Upside)

Battalion Oil is facing severe financial and operational challenges, as reflected in its weak financial performance and technical analysis. The potential delisting adds significant risk, and the negative P/E ratio further suggests poor valuation. The stock struggles with negative market sentiment and substantial financial instability, making it a high-risk investment.

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 primarily through the sale of crude oil, natural gas, and natural gas liquids that it extracts from its properties. The company's revenue model is significantly influenced by commodity prices, which are subject to market fluctuations. Battalion Oil employs advanced drilling and completion techniques to enhance production efficiency and increase output from its wells. Additionally, the company may engage in strategic partnerships or joint ventures to optimize its asset portfolio and share operational risks, further contributing to its revenue streams. Leasing of mineral rights and potential sales of non-core assets can also provide supplementary income.

Battalion Oil Financial Statement Overview

Summary

Battalion Oil faces significant financial challenges with a negative equity position, declining revenue, and low profitability. While cash flow shows some positive signs, overall financial stability is compromised.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	193.89M	220.76M	359.06M	285.20M	146.78M
Gross Profit	79.24M	97.92M	240.17M	192.60M	40.42M
EBITDA	36.00M	86.89M	94.05M	25.11M	-161.02M
Net Income	-31.88M	-3.05M	18.54M	-28.32M	-229.71M
Balance Sheet
Total Assets	431.05M	485.34M	485.36M	390.27M	346.50M
Cash, Cash Equivalents and Short-Term Investments	19.71M	57.53M	32.73M	46.86M	4.29M
Total Debt	165.87M	197.88M	218.09M	182.37M	160.61M
Total Liabilities	426.93M	310.78M	400.73M	326.56M	256.54M
Stockholders Equity	4.12M	174.56M	84.63M	63.70M	89.96M
Cash Flow
Free Cash Flow	-29.34M	-28.85M	-47.82M	15.64M	-51.70M
Operating Cash Flow	35.35M	17.59M	78.80M	68.57M	50.20M
Investing Cash Flow	-65.44M	-51.84M	-126.13M	-51.91M	-72.35M
Financing Cash Flow	-7.73M	59.06M	31.79M	27.41M	16.18M

Battalion Oil Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.34
• 50DMA: Negative
• 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 Neutral. The current price of 1.34 is below the 20-day moving average (MA) of 1.60, below the 50-day MA of 1.47, and below the 200-day MA of 2.66, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 47.82 is Neutral, neither overbought nor oversold. The STOCH value of 57.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BATL.

Battalion Oil Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MXC	75 Outperform	$17.10M	10.29	9.42%	1.25%	11.40%	30.87%
Sector *	52 Neutral	C$2.95B	-1.04	-3.46%	5.86%	3.01%	-47.13%
BRN	45 Neutral	$11.56M	―	-49.65%	―	-25.50%	-85.87%
BATL	41 Neutral	$22.05M	―	36.17%	―	-6.23%	45.67%
HUSA	―	$20.46M	―	-108.38%	―	―	―
BPPTU	―	$3.46M	―	0.00%	―	―	―
MTR	―	$10.44M	30.72	10.96%	8.09%	―	―

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.