| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 47.98 | 22.8% | 12.7% |
| Total Income | 47.98 | 22.8% | 12.7% |
| Expenditure | 41.35 | 0.1% | 3.8% |
| PBT | 15.51 | 127.5% | 223.1% |
| Net Profit | 15.51 | 127.5% | 223.1% |
| OPM | 14.13% | 19.60pp | 14.49pp |
| NPM | 32.32% | 21.06pp | |
| EPS | 0.34 | 109.1% | 261.9% |
Battalion Oil Announces Q2 2026 Results: Debt Reduced to $74.2M, Leverage Ratio 1.36x
13 Aug 2026 · 13 Aug, 2:15 am
Summary
Battalion Oil Corporation reported its second quarter 2026 financial and operating results, highlighting a significant reduction in net debt to $74.2 million and an improved leverage ratio of 1.36x. The company generated $48.1 million in operating revenue, with average daily production at 12,407 Boe/d. Lease operating and workover expenses per Boe decreased by approximately 12% compared to the previous quarter. Management expressed optimism about the company's strengthened financial and operational position, with plans for disciplined execution and value creation for shareholders.
Key Highlights
- 1
The Company ended the second quarter of 2026 with positive equity of $203.1 million.
- 2
Battalion Oil generated second quarter 2026 sales volumes of 12,407 barrels of oil equivalent per day (~45% oil, 70% liquids).
- 3
Lease operating and workover expense per BOE was reduced by approximately 12% compared to Q1 2026.
- 4
Net debt was reduced to $74.2 million in Q2 2026 from $108.3 million in Q1 2026, with the leverage ratio improving to 1.36x from 1.79x.
- 5
The Company completed preparations for drilling under a new joint exploration and development agreement, with drilling expected to commence prior to the end of August 2026.
- 6
Average daily net production was 12,407 Boe/d and total operating revenue was $48.1 million in Q2 2026, compared to 12,989 Boe/d and $42.8 million in Q2 2025.
- 7
For the second quarter of 2026, the Company reported net income available to common stockholders of $9.1 million, or $0.34 per share.
Management Comments
Matt Steele
The second quarter of 2026 was extremely active. We exhibited significant progress across every part of our business. Our midstream investments at Monument Draw came in ahead of schedule and under budget, and we are already seeing the benefit in record well productivity and increased throughput capacity. Additional compression secured during the quarter will further improve reliability starting in mid-Q3 and support production growth from our active drilling program. Establishing our ATM program gave us an efficient tool to continue strengthening the balance sheet. The ATM proceeds, asset sales, and free cash flow from the underlying business have allowed us to significantly reduce net debt. We are now under 1.5x levered – something the Company has never previously achieved. Given the improved balance sheet, we plan to judiciously utilize the limited shares available in our ATM going forward. Executing our joint exploration and development agreement in Monument Draw is the culmination of months of work and allows us to transition to multi-bench development while prudently deploying capital within cash on hand. Closing our refinancing at quarter end meaningfully lowers our cost of capital and enhances our financial flexibility as we move into this next phase of development at Monument Draw. The Company has never been in a stronger financial and operational position. In fact, we were recently able to utilize cash on hand to opportunistically buy back a portion of our preferred stock at a substantial discount to its par value from a holder seeking liquidity. Going forward, we will continue to focus on disciplined execution and creation of value for our shareholders.
Informational and educational content only. Not investment advice.