Battalion Oil (BATL) AI Stock Analysis

• Market Cap: $17.11M
• Dividend Yield: N/A
• Average Volume (3M): 298.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: -7.24%
• EPS Growth: 54.62%
• Country: US
• Employees: 38
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.21
• Shares Outstanding: 16,456,564
• 10 Day Avg. Volume: 134,445
• 30 Day Avg. Volume: 298,026
• 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: 22.73
• Enterprise Value/Revenue: 2.10
• Enterprise Value/Gross Profit: 5.52
• Enterprise Value/Ebitda: 4.94
• 1Y Price Target: $1.00
• Price Target Upside: -3.85% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 39 Underperform
• Price Target: $1.00 ▼(-3.85% Downside)

Battalion Oil's overall stock score is low due to significant financial and operational challenges. High leverage and weak cash flow management are major concerns. Technical indicators show bearish momentum, and the valuation is unattractive with a negative P/E ratio. Recent corporate events, including operational disruptions and a delisting notice, further exacerbate the risks.

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's financial performance is mixed. While profitability is improving with a positive net profit margin, revenue is declining, and operational inefficiencies are evident. The balance sheet shows high leverage, posing financial risks, and cash flow management is weak, with significant declines in free cash flow.

Income Statement

Battalion Oil's income statement shows mixed results. The company has a positive net profit margin of 5.53% in the TTM, indicating profitability, but revenue growth is negative at -3.28%, reflecting a decline in sales. The gross profit margin is healthy at 38.09%, but the EBIT margin is negative, suggesting operational challenges. Overall, profitability is improving, but revenue decline and operational inefficiencies are concerns.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.16, indicating significant leverage, which poses a financial risk. However, the return on equity is positive at 6.87%, showing that the company is generating returns for shareholders. The equity ratio is moderate, suggesting a balanced asset structure. While leverage is a concern, the company is managing to generate returns.

Cash Flow

Cash flow analysis shows challenges with a significant decline in free cash flow growth at -89.97% in the TTM. The operating cash flow to net income ratio is low at 0.27, indicating limited cash generation relative to earnings. The free cash flow to net income ratio is also low at 0.15, suggesting cash flow constraints. Overall, cash flow management needs improvement to support operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	185.12M	193.89M	220.76M	359.06M	285.20M	146.78M
Gross Profit	70.51M	79.24M	97.92M	240.17M	192.60M	40.42M
EBITDA	78.69M	36.00M	86.89M	94.05M	25.11M	-161.02M
Net Income	10.24M	-31.88M	-3.05M	18.54M	-28.32M	-229.71M
Balance Sheet
Total Assets	498.78M	431.05M	485.34M	485.36M	390.27M	346.50M
Cash, Cash Equivalents and Short-Term Investments	44.62M	19.71M	57.53M	32.73M	46.86M	4.29M
Total Debt	222.69M	165.87M	197.88M	218.09M	182.37M	160.61M
Total Liabilities	306.39M	426.93M	310.78M	400.73M	326.56M	256.54M
Stockholders Equity	192.39M	181.66M	174.56M	84.63M	63.70M	89.96M
Cash Flow
Free Cash Flow	3.64M	-29.34M	-28.85M	-47.82M	15.64M	-51.70M
Operating Cash Flow	24.55M	35.35M	17.59M	78.80M	68.57M	50.20M
Investing Cash Flow	-73.21M	-65.44M	-51.84M	-126.13M	-51.91M	-72.35M
Financing Cash Flow	38.85M	-7.73M	59.06M	31.79M	27.41M	16.18M

Battalion Oil Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1.04 is below the 20-day moving average (MA) of 1.11, below the 50-day MA of 1.21, and below the 200-day MA of 1.55, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 39.24 is Neutral, neither overbought nor oversold. The STOCH value of 47.80 is Neutral, 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	72 Outperform	18.39M	10.89	9.15%	1.11%	13.06%	45.64%
BRN	46 Neutral	11.58M	-1.82	-42.68%	―	-34.85%	-68.02%
VIVK	41 Neutral	26.57M	-0.59	-18.61%	―	98.83%	-85.72%
BATL	39 Underperform	$17.11M	―	117.53%	―	-7.24%	54.62%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Battalion Oil Corporate Events

Battalion Oil’s Compliance Plan Accepted by NYSE

Battalion Oil Corporation announced that its compliance plan has been accepted by NYSE American, allowing the company until November 30, 2026, to regain compliance with listing standards. Despite the acceptance, the company faces potential delisting if progress is not made, although its current noncompliance does not affect its operations or SEC reporting obligations.

Battalion Oil Faces Operational Challenges at AGI Facility

In its second quarter of 2025, Battalion Oil Corporation reported sales volumes of 12,989 barrels of oil equivalent per day, with a 49% oil composition. The company successfully completed its six-well drilling plan ahead of schedule and under budget, enhancing production rates in the West Quito area. However, the cessation of operations at the AGI facility on August 11, 2025, prompted Battalion to temporarily shut in part of its Monument Draw field and seek alternative gas processing solutions. Financially, the company experienced a decrease in operating revenue compared to the previous year due to lower realized prices, despite a slight increase in production. Battalion reported a net loss of $3.5 million for common stockholders, with adjusted EBITDA rising to $18.1 million from $15.6 million in the same quarter of 2024.

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.