Battalion Oil Corporation · AMEX:BATL
Battalion Oil — Investor Presentation (March 2021)
16 slides from Battalion Oil's investor presentation, March 2021
Slide 1: Investor Update
Ww BATTALION Yo 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: A Disciplined Approach in a Recovering Environment
A Disciplined Approach in a Recovering Environment Key Milestones in 2020 Focused on Generating Free Cash Flow ✔ New Strategy / Board / Name Capital Discipline Reinvestment target rate of 70%-80% of EBITDA ✔ Integrated new technical team ✔ Listed on NYSEA (“BATL”) Free Cash Flow Expect significant i
Slide 4: Oil-Rich Position in the Delaware Basin
Oil-Rich Position in the Delaware Basin Annual 2020 production of ~16,858 Net Boepd (56% oil) Current Leasehold Position: ~41,600 Net Acres / 2,000+ Gross Drilling Locations Balanced and complementary co-located asset base Operating Breakeven @ $10.00/Boe DUC completions commenced in Decembe
Slide 5: Q4 2020 Key Financial Highlights
Q4 2020 Key Financial Highlights Capitalization & Liquidity Summary ✔ Adjusted LTM EBITDA of $70 MM Go-forward EBITDA largely insulated from price fluctuation $0,000 12/31/20 due to hedge book RBL Indebtedness $ 158,000 ✔ Decreased Average Production Costs Less: Cash & Cash Equivalents (4,295) $
Slide 6: Current Hedge Position
Current Hedge Position Downside Fixed Price Hedged Oil Volume (Bopd) 10,000 8,000 6,000 4,000 2,000 0 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Bopd 8,566 9,330 8,000 7,837 7,570 6,704 4,433 4,000 Price $47.06 $45.39 $43.34 $43.96 $47.21 $47.79 $47.76 $48.55 6
Slide 7: Committed to ESG
Committed to ESG 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 Exited 2020 with reduced Flare Int
Slide 8: Drilling Performance
Drilling Performance Cost per Foot Drilled Monument Draw Drilling Performance $350 0' 38% 2021 Plan Well $300 2019/2020 BATL Wells $250 2,500' Previous HK and Offset Wells $200 $316 5,000' $150 $239 $100 $195 7,500' $50 $- 1H '19 2H '19 FY '20 10,000' Depth (ft) Feet Drilled per Day 12,500' 800 700
Slide 9: Completion Performance
Completion Performance Early Start on 2021 Monument Draw Program Average Frac Gradient/Stage Completed DUCs Two 2-well pads started in December 2020 1 8706H Preempted completion market supply chain, securing low per well capex 0.95 8707H 8802H Pumping ~30% larger jobs and testing fluid design
Slide 10: Commitment to Execution
Commitment to Execution Focused on Maximizing Free Cash Flow Through Cost Efficiency and Capital Discipline Methodically Reducing Op Costs per BOE1 Streamlining Corporate G&A per BOE2 Driving Efficiencies in D&C Cost per Foot $30 $10 $2,000 $28.35 30% reduction in Operating Cost per BOE $25 $22.63 $
Slide 11: YE 2020 Reserve Summary
YE 2020 Reserve Summary YE 2020 Reserves1 Premium Drilling Inventory in Monument (10,000’ Lateral) Category Net Oil Net Gas Net NGL Total Capex PV-0 PV-10 1st/2nd Bone Spring Upside MBbl MMcf MBbl Mboe $MM $MM $MM 153 Locations PDP 18.0 50.2 7.0 33.4 $8.5 $478.0 $302.9 3rd Bone Spring Upside PNP 3.4
Slide 12: Appendix
Appendix
Slide 13: Selected Operating Data ($/Boe)
Selected Operating Data ($/Boe) Three Months Ended December 31, Years Ended December 31, 2020 2019 (5) 2020 2019 (5) Average cost per Boe: Production: Lease operating $ 5.80 $ 6.86 $ 6.82 $ 7.98 Workover and other 0.59 0.89 0.60 1.10 Taxes other than income 1.84 2.00 1.63 1.97 Gathering and other, a
Slide 14: Adjusted EBITDA Reconciliation (in thousands)
Adjusted EBITDA Reconciliation (in thousands) Three Months Ended December 31, Years Ended December 31, 2020 2019 (3) 2020 2019 (3) Net income (loss), as reported $ (63,757) $ (125,826) $ (229,707) $ (1,166,513) Impact of adjusting items: Interest expense 1,853 1,430 7,373 37,695 Depletion, depreciat
Slide 15: 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 16: Contact: Chris Lang
Contact: Chris Lang (832) 538-0551