Battalion Oil (BATL) AI Stock Analysis

• Market Cap: $21.48M
• Dividend Yield: N/A
• Average Volume (3M): 44.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.99
• Revenue Growth: -11.57%
• EPS Growth: -424.12%
• Country: US
• Employees: 38
• Sector: Energy
• Sector Strength: 51
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -4.30
• Shares Outstanding: 16,456,564
• 10 Day Avg. Volume: 16,954
• 30 Day Avg. Volume: 44,044
• PEG Ratio: <0.01
• Price to Book (P/B): 0.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.95
• Enterprise Value/Market Cap: 7.81
• Enterprise Value/Revenue: 0.21
• Enterprise Value/Gross Profit: 3.39
• Enterprise Value/Ebitda: 0.85
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Battalion Oil's overall stock score is 42, reflecting significant financial challenges and valuation concerns. The company's persistent losses and high leverage are key risks, compounded by negative technical indicators and lack of positive valuation metrics. Although there is some operational cash generation, the inconsistency in free cash flow generation poses additional concerns. The stock may require strategic financial restructuring and operational improvements for future stability.

Battalion Oil Business Overview & Revenue Model

Company Description

Battalion Oil Corporation (BATL) is an energy company engaged in the exploration, development, and production of oil and natural gas. The company primarily operates in the oil-rich regions of the United States, focusing on leveraging advanced technologies and sustainable practices to maximize resource extraction and efficiency. Battalion Oil is committed to delivering energy solutions that meet the growing demand while maintaining a strong emphasis on environmental stewardship and safety.

How the Company Makes Money

Battalion Oil Corporation generates revenue through the production and sale of crude oil and natural gas. The company explores and develops oil and gas reserves, extracts these resources, and then sells them to refineries and other buyers in the energy market. Revenue is primarily derived from the sale of crude oil, which is subject to market price fluctuations influenced by global supply and demand dynamics. Additionally, Battalion Oil may engage in hedging activities to manage price risks and stabilize cash flows. The company's earnings are also affected by its operational efficiency, cost management, and strategic partnerships that enhance its exploration and production capabilities.

Battalion Oil Financial Statement Overview

Summary

Battalion Oil faces significant financial challenges with persistent losses and high leverage. The income statement reflects ongoing profitability issues, while the balance sheet indicates financial risk due to high debt levels. Although there is some ability to generate cash from operations, the inconsistency in free cash flow generation poses a concern. Strategic financial restructuring and improved operational efficiency are crucial for future stability.

Income Statement

Battalion Oil's income statement shows significant challenges with profitability. The company had a negative net income for several years, indicating persistent losses. Gross profit margin has been fluctuating, suggesting volatility in cost management. Revenue growth rate is negative between recent periods, pointing to revenue decline, which is concerning for long-term sustainability. The negative EBIT and EBITDA margins further emphasize operational inefficiencies.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage and potential financial risk. Stockholders' equity has drastically decreased, reflecting potential instability. The equity ratio is low, which suggests that the company is heavily reliant on debt financing. These factors combined suggest financial vulnerability and potential risks in meeting long-term obligations.

Cash Flow

The cash flow statement presents mixed signals. While there is a positive operating cash flow to net income ratio, indicating operational cash generation, free cash flow growth is inconsistent, and the free cash flow to net income ratio shows volatility. Although operational cash flow is positive, the heavy capital expenditure impacts free cash flow, highlighting challenges in generating cash consistently.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
193.89M	218.50M	359.06M	285.20M	148.29M
	Gross Profit
148.62M	102.92M	252.37M	192.60M	40.42M
	EBIT
-11.74M	17.58M	152.14M	103.37M	-44.11M
	EBITDA
50.05M	86.89M	94.05M	25.11M	-161.02M
	Net Income Common Stockholders
-31.88M	-3.05M	-91.47M	-36.34M	-236.34M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
19.71M	57.53M	32.73M	46.86M	4.29M
	Total Assets
431.05M	485.34M	485.36M	390.27M	346.50M
	Total Debt
165.87M	197.88M	218.09M	182.37M	160.61M
	Net Debt
146.16M	140.35M	185.37M	135.51M	156.32M
	Total Liabilities
426.93M	417.32M	400.73M	326.56M	256.54M
	Stockholders Equity
4.12M	68.02M	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: Positive
• Last Price: 1.30
• 50DMA: Positive
• 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 Positive. The current price of 1.3 is above the 20-day moving average (MA) of 1.27, above the 50-day MA of 1.29, and below the 200-day MA of 3.12, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.73 is Neutral, neither overbought nor oversold. The STOCH value of 40.35 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	63 Neutral	$13.51M	10.40	7.57%	―	2.12%	-30.63%
Sector *	56 Neutral	$7.06B	3.68	-4.87%	5.83%	0.28%	-51.94%
BRN	43 Neutral	$13.27M	―	-46.32%	―	-18.26%	-149.71%
BATL	42 Neutral	$21.48M	―	-88.39%	―	-11.57%	-424.12%

Battalion Oil Corporate Events

Battalion Oil Ends Merger Agreement with Fury Resources

Battalion Oil Corporation, a Delaware-based company, has terminated its Agreement and Plan of Merger with Fury Resources, Inc. and San Jacinto Merger Sub, Inc. due to unmet conditions by the parent company, including securing qualifying additional financing. As a result of the termination, Battalion Oil is entitled to retain $9,999,999.99 and is also seeking a remaining fee of $15,000,000 from Fury Resources, which is guaranteed by Abraham Mirman under a limited guarantee agreement.