Battalion Oil Corporation · AMEX:BATL
Battalion Oil — Investor Presentation (May 2020)
11 slides from Battalion Oil's investor presentation, May 2020
Slide 1: Investor Update May 2020
INVESTOR UPDATE MAY 2020 WY BATTALION 1 wt Y oil CORPORATION | oa
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: Executive Summary
Executive Summary Key Milestones Since Q2 2019 Battalion is Well Positioned to “Weather the Storm” Spring redetermination resulted in 17% borrowing base reduction to $200 MM effective 4/30/20 ✔ Strengthened Hedge Position Strong balance sheet, capable of generating neutral free cash flow @ reali
Slide 4: Immediate Reaction to Market Conditions
Immediate Reaction to Market Conditions Nimble market response; strategically shut in >10,000 Leasehold Position @ May 11, 2020 Operating breakeven @ $10.00/Boe gross bopd May 1, balancing economics, lease Monument obligations, well preservation & reservoir management D&C breakeven @ $28.00/Bb
Slide 5: Environmental, Health & Safety / Social / Governance
Environmental, Health & Safety / Social / Governance COVID-19 Response & EHS Update In response to COVID-19, Battalion took immediate action in March to protect the health and safety of its employees & partners and to work safely in the communities where its operations are conducted. We also took st
Slide 6: Operations Update: Drilling & Completions
Q1 2020 Operations Update: Drilling & Completions Drilling Cost ($ per Foot Drilled) Monument Draw Depth vs. Days $400 0' Achieved lowest cycle time and well cost in (34)% $318 Q2 2020 Wells Q1 2020 with additional efficiencies through Drilling Operations Q1 2020 Wells April $300 2,500' $241 Q4 20
Slide 7: Operations Update: Lease Operations
Q1 2020 Operations Update: Lease Operations Total Lease Operating Expense ($/Boe) Average Workover Expense ($000/Month) Reduced rentals with equipment upgrades LOE & Workover Program Achieved substantially lower downtimes $8.70 (16)% (36)% $690 Lowered water disposal costs and rebid chemical p
Slide 8: Operations Update: H2S Treating
Q1 2020 Operations Update: H2S Treating Substantial Reduction in Unit Cost Commissioned liquid redox plant at Everest CPF in $10.00 $10.00 Flow Assurance Milestones Q2 2019 with inconsistent run-times $/lb $/Mcfd Designed and implemented process and $7.50 $7.50 mechanical changes in Q3 2019 to s
Slide 9: Financial Highlights
Q1 2020 Financial Highlights Pro Forma Capitalization & Liquidity Summary(1) ✔ Decreased Total Operating Expenses $18.20/Boe in Q1 2020 vs $18.28/Boe in Q4 2019 and $0,000 3/31/2020 PF $25.49/Boe in Q1 2019 Cash & Cash Equivalents $938 ✔ Decreased Lease Operating Expenses Plus: RBL Indebtedness $170
Slide 10: Current Hedge Position: $105 MM MTM @ 3/31
Current Hedge Position: $105 MM MTM @ 3/31 Downside Fixed Price Hedged Oil Volume (Bopd) 10,000 2- Way Collars Swaps 7,500 5,000 2,500 0 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3
Slide 11: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Successor Predecessor Three Months Three Months Ended Ended March 31, 2020 March 31, 2019 Net income (loss), as reported $ 114,491 $ (336,559) Impact of adjusting items: Interest expense 1,714 11,972 Depletion, depreciation and accretion 18,030 29,975 Full cost ceiling