Battalion Oil Corporation · AMEX:BATL
Battalion Oil — Q1 2022 Earnings Presentation
14 slides from Battalion Oil's earnings presentation, May 2022
Slide 1: Investor Update
WZ BATTALION “7 OIL CORPORATION
Slide 2: Disclaimer: Forward Looking Statements
Disclaimer: Forward Looking Statements This presentation contains forward-looking statements that are intended to be covered by the safe harbor within the meaning of the Private Securities Litigation Reform Act of 1995 as stated in Section 27A of the Securities Act of 1933, as amended (the “Securiti
Slide 3: Battalion Oil Corporation: Delaware Pure-Play
Battalion Oil Corporation: Delaware Pure-Play Market Snapshot § Pure Play Delaware Basin Operator (~40,400 net acres) Pure Play NYSE American Symbol: BATL § Well performance competes with best in the basin (~1,100 Mboe per well EUR) Market Cap: $311 million3 E&P § Deep inventory of high rate of retu
Slide 4: BATL Plans: Roadmap to Growth
BATL Plans: Roadmap to Growth Battalion Strategy Develop our liquids-rich acreage positions to grow production and reserves efficiently Enhance returns through continued improvements in operational and cost efficiencies Maintain financial flexibility Attain growth through strategic business combinat
Slide 5: Commitment to Operational Excellence
Commitment to Operational Excellence1 Monument Draw Drilling Performance Pump Efficiency (Hours/Day) 20 0 YTD 2022 Wells 18.3 FY 2021 Wells 18 2,500 2019/2020 Wells 16.8 16.5 16 5,000 14 7,500 PUMP RATE (HRS/DAY) 12 10,000 DEPTH (FT) 10 12,500 8 15,000 6 17,500 4 20,000 2 22,500 0 0 10 20 30 40 50 6
Slide 6: Q1 2022 Key Financial Highlights
Q1 2022 Key Financial Highlights Capitalization & Liquidity Summary ✔ Robust Commodity Pricing § Continued strength in gas and NGL pricing driving increased $0,000 03/31/22 revenue expectations for 2022 Term Loan Borrowings $ 200,000 ✔ Operational Efficiency Mitigating Inflation Plus: Outstanding Le
Slide 7: ESG Initiatives
ESG Initiatives Environment Social Governance Committed to sustainability through Committed to a culture of safety and Committed to accountability, risk reduced flaring, spills and emissions supporting communities where we operate management and ethical behavior § Ongoing discussions on AGI solution
Slide 8: Appendix
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Slide 9: Hedge Summary
Hedge Summary As Battalion returns to development, the Company’s hedge strategy is to heavily hedge base production and protect returns on future wells by hedging expected production as capital is committed Consolidated Crude Oil (Bbl/d) & Natural Gas Hedges (MMBtu/d) 2022 2023 2024 2025 2026 Crude
Slide 10: Selected Operating Data
Selected Operating Data Three Months Ended March 31, 2022 2021 Production volumes: Crude oil (MBbls) 670 719 Natural gas (MMcf) 2,315 2,133 Natural gas liquids (MBbls) 273 215 Total (MBoe) 1,329 1,290 Average daily production (Boe/d) 14,767 14,333 Average prices: Crude oil (per Bbl) $ 93.32 $ 57.40
Slide 11: Selected Operating Data ($/Boe)
Selected Operating Data ($/Boe) Three Months Ended March 31, 2022 2021 Average cost per Boe: Production: Lease operating $ 8.67 $ 7.34 Workover and other 0.65 0.43 Taxes other than income 3.73 2.47 Gathering and other 11.48 10.21 General and administrative, as adjusted (1) 3.30 3.24 Depletion 7.57 8
Slide 12: Adjusted EBITDA Reconciliation (in thousands)
Adjusted EBITDA Reconciliation (in thousands) Three Months Three Months Three Months Three Months Ended Ended Ended Ended March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 Net income (loss), as reported $ (92,744) $ 25,935 $ 13,052 $ (33,929) Impact of adjusting items: Interest expen
Slide 13: PV-10 Reconciliation
PV-10 Reconciliation PV-10 is a non-GAAP financial measure and represents the present value of estimated future cash inflows from proved oil and gas reserves, less future development and production costs, discounted at 10% per annum to reflect the timing of future cash flows. The calculation of PV-1
Slide 14: Contact: Chris Lang
Contact: Chris Lang (832) 538-0551