HOUSTON, Nov. 09, 2020 (GLOBE NEWSWIRE) -- Battalion Oil Corporation (NYSEA: BATL) today announced its third quarter 2020 results.

Third Quarter Results

Average daily net production for the quarter ended September 30, 2020 was 17,076 Boe per day, of which oil represented 56%. Total revenue for the third quarter was $39.8 million, of which 84% related to crude oil. Realized gains on derivative settlements totaled $5.3 million for the third quarter.

Richard Little, the Company’s CEO, commented, “It’s hard to imagine that Q3 is a reflection of a return to ‘normal,’ however as prices recovered from lows in April, I’m pleased Battalion has had a chance to get back to optimizing production of hydrocarbons. With production back online, I’m proud of our team for demonstrating that we can continue to lower costs in this environment and prepare for whatever comes next. We’ve also used this opportunity to take proactive measures to improve our product pricing, which we are now benefiting from.”

Adjusted G&A was $2.09 per Boe in the third quarter of 2020 compared to $4.92 per Boe in the third quarter of 2019 (see Selected Operating Data table for additional information). Lease operating and workover expense was $7.00 per Boe in the third quarter of 2020 and $8.91 per Boe in the third quarter of 2019.

The Company reported a net loss to common stockholders for the third quarter of 2020 of $153.1 million, including a full cost ceiling test impairment of $128.3 million, which was associated almost entirely with a significant decline in the SEC trailing twelve month price deck used to calculate reserves value. The Company reported a net loss per basic and diluted share of $9.45, and Adjusted LTM EBITDA of $93.9 million, compared to $61.6 million in the third quarter of 2019 (see Adjusted EBITDA Reconciliation table for additional information).

As of November 6, 2020, Battalion had 8,500 Bopd of oil hedged for the remainder of 2020 at an average price of $42.53 per barrel. For 2021, the Company has 7,000 Bopd of oil hedged at an average price of $45.51 per barrel. For the first half of 2022, the Company has 4,000 Bopd of oil hedged at an average price of $52.38 per barrel. As of September 30, 2020, the mark-to-market value of derivative contracts was approximately $16.3 million.

About Battalion
Battalion Oil Corporation is an independent energy company engaged in the acquisition, production, exploration and development of onshore oil and natural gas properties in the United States.