Battalion Oil (BATL) AI Stock Analysis

• Market Cap: $62.70M
• Dividend Yield: N/A
• Average Volume (3M): 76.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• 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: 6.92
• Enterprise Value/Revenue: 2.37
• Enterprise Value/Gross Profit: 5.38
• Enterprise Value/Ebitda: 9.65
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $5.00 ▲(313.22% Upside)

The score is held back primarily by weak financial performance—negative profitability, declining revenue, and a balance sheet with negative equity—despite improving cash flow. Technicals are supportive with strong momentum, but overbought readings add risk. A positive operational event improves outlook at the margin, while valuation remains unattractive due to ongoing losses and no dividend support.

Positive Factors

Operational reliability from midstream shift

Redirecting gas processing to a larger third‑party facility materially improved flow assurance and restored shut‑in volumes. This operational fix reduces outage risk, supports more stable production and cash flow for several months, and de-risks Permian operations versus prior midstream failures.

Improving cash generation

Rising free cash flow and solid operating cash conversion despite GAAP losses strengthens near‑term finance flexibility. Durable cash generation helps fund drilling, service debt, and capital cycles over the next quarters without relying solely on equity raises or asset sales.

Healthy gross margin profile

A mid‑40s gross margin reflects productive Permian well economics and controlled lifting costs, providing a structural buffer to commodity price swings. Sustained upstream margins support reinvestment and cash flow even if top‑line volumes or prices fluctuate moderately.

Negative Factors

Negative equity and solvency concern

Negative shareholders' equity signals high leverage and potential solvency risk, constraining capital access and increasing refinancing or covenant pressures. This structural weakness can limit growth options and force asset disposals or expensive financing over the medium term.

Declining revenue and negative net margins

Contraction in sales alongside negative net margins indicates the company has not yet translated operational margins into bottom‑line profitability. Persistent top‑line weakness undermines sustainable earnings and raises reliance on cost cuts or higher commodity prices to restore long‑term profitability.

Material term debt with limited liquidity

A substantial term loan balance relative to modest liquidity elevates refinancing and covenant risk, limiting discretionary capex or M&A. Over the coming quarters this debt profile can pressure cash flow allocation and necessitate asset sales or amended credit terms to preserve solvency.

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

Weak financial profile driven by declining revenues, negative net margins, and a highly stressed balance sheet with negative equity (solvency risk). Cash flow is a relative bright spot with improved free cash flow growth and operating cash generation despite losses, but not enough to offset profitability and leverage concerns.

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: 1.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 1.21 is below the 20-day moving average (MA) of 1.92, below the 50-day MA of 1.46, and below the 200-day MA of 1.33, indicating a bullish trend. The MACD of 0.73 indicates Negative momentum. The RSI at 66.94 is Neutral, neither overbought nor oversold. The STOCH value of 54.91 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	78 Outperform	$21.50M	14.00	9.11%	0.96%	7.26%	40.01%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
BATL	48 Neutral	$62.70M	-1.14	-164.49%	―	-4.08%	-325.73%
BRN	47 Neutral	$13.79M	-1.60	―	―	-32.91%	-23.72%
VIVK	41 Neutral	$1.22M	>-0.01	-163.97%	―	101.82%	-605.58%

Battalion Oil Corporate Events

Battalion Oil Shifts Gas Processing, Boosts January Production

On January 19, 2026, Battalion Oil Corporation terminated its gas treating agreement with Wink Amine Treater after the latter’s acid gas injection facility, offline since about August 11, 2025, failed to resume operations, and the company formally announced this change and related operational updates on January 23, 2026. Battalion has shifted its gas processing to an alternate facility operated by a publicly traded large‑cap midstream provider whose expanded capacity, completed in the fourth quarter of 2025, now handles substantially all of the company’s Monument Draw Field gas volumes, enabling a ramp‑up in gas throughput to more than 30 MMcf/d and driving an increase of roughly 1,200 net barrels of oil per day in average production in January 2026 versus December, improving flow assurance and operational reliability for stakeholders.

The most recent analyst rating on (BATL) stock is a Sell with a $1.00 price target. To see the full list of analyst forecasts on Battalion Oil stock, see the BATL Stock Forecast page.

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.

The most recent analyst rating on (BATL) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Battalion Oil stock, see the BATL Stock Forecast page.