Battalion Oil's Q3 revenue rises on higher prices, adjusted net loss narrows
BATL•Battalion Oil's third-quarter revenue rose year over year as higher realized prices offset lower production, while its adjusted net loss narrowed to $2.4 million from $15.7 million a year earlier.
1. Prices lift revenue
Revenue increased primarily because average realized prices rose $5.13 per barrel of oil equivalent, offsetting lower production volumes. Adjusted net loss narrowed to $2.4 million from $15.7 million a year earlier, while adjusted EBITDA was $10.1 million.
2. Derivative losses
The company reported a $43.5 million pretax loss, primarily driven by a $44.8 million net loss on derivative contracts, including $38.4 million in non-cash unrealized losses. Battalion Oil expects a transition to pipeline transportation to lower gathering costs going forward.
