Battalion Oil Corporation (BATL): History, Ownership, Mission, How It Works & Makes Money

What truly defined Battalion Oil Corporation's trajectory before its significant asset transition valued around $450 million near the start of 2024? As an independent exploration and production player laser-focused on the resource-rich Delaware Basin, the company navigated the complex and often turbulent energy markets, showcasing specific operational strategies. Gaining insight into its history, ownership structure, core mission, and revenue generation model provides a valuable case study in energy sector dynamics. Ready to delve into how this company operated and the factors that shaped its path?

Battalion Oil Corporation (BATL) History

Understanding a company's past is crucial for evaluating its present stability and future potential. Battalion Oil Corporation's journey is marked by significant shifts, primarily stemming from its predecessor, Halcón Resources Corporation.

Battalion Oil Corporation's Founding Timeline

The entity now known as Battalion Oil has roots stretching back over a decade, though its current structure is more recent.

Year established

The predecessor company, Halcón Resources Corporation, was significantly active from around 2012. Battalion Oil Corporation emerged under its current name following restructuring in October 2019.

Original location

The operational headquarters have historically been centered in Houston, Texas.

Founding team members

Halcón Resources was initially led by Floyd C. Wilson. The leadership transitioned significantly following the restructuring events that led to the formation of Battalion Oil.

Initial capital/funding

Halcón Resources raised capital through various means, including equity and debt offerings, during its operational years. Battalion Oil emerged from Chapter 11 restructuring with a new capital structure, converting significant debt to equity. For instance, the 2019 restructuring eliminated approximately $785 million in debt.

Battalion Oil Corporation's Evolution Milestones

The company's path involved aggressive growth, financial distress, and strategic repositioning.

Battalion Oil Corporation's Transformative Moments

Several key periods fundamentally reshaped the company.

The 2016 Restructuring

The first bankruptcy was a major wake-up call, forcing an initial, albeit insufficient, attempt to address the unsustainable debt load accumulated during the aggressive expansion phase.

The 2019 Rebirth as Battalion Oil

This second restructuring was truly transformative. It not only slashed debt dramatically but also involved a complete rebranding and solidified the strategic pivot entirely towards the Delaware Basin assets, creating the company structure seen through early 2024.

Pure-Play Delaware Basin Strategy

Consolidating operations exclusively in the Delaware Basin post-2019 allowed for concentrated operational expertise and cost management, defining Battalion's identity and operational model leading up to the acquisition announcement.

Battalion Oil Corporation (BATL) Ownership Structure

Battalion Oil Corporation operates with a concentrated ownership structure, primarily held by institutional investors following its emergence from restructuring. This structure significantly influences its governance and strategic direction.

Battalion Oil Corporation's Current Status

As of the close of fiscal year 2024, Battalion Oil Corporation (BATL) is a publicly traded company listed on the NYSE American exchange. However, its public float is relatively small due to the dominant position held by its primary institutional shareholder.

Battalion Oil Corporation's Ownership Breakdown

The company's ownership is heavily concentrated. Understanding this breakdown is key to grasping the influences on corporate strategy and aligns with understanding the broader Mission Statement, Vision, & Core Values of Battalion Oil Corporation (BATL). The approximate ownership distribution at the end of 2024 was as follows:

Battalion Oil Corporation's Leadership

The executive team guiding Battalion Oil Corporation at the end of 2024 included seasoned industry professionals. Their collective experience steers the company's operational and financial strategies in the dynamic energy sector.

• Richard Little - Chief Executive Officer
• Kevin Andrews - Executive Vice President & Chief Financial Officer
• Daniel Rohling - Executive Vice President & Chief Operating Officer

Battalion Oil Corporation (BATL) Mission and Values

Understanding a company's mission and values provides insight into its operational philosophy and long-term goals, extending beyond just financial metrics. For Battalion Oil Corporation, prior to its recent acquisition, its focus was primarily centered on the efficient exploration and production of oil and natural gas assets.

Battalion Oil Corporation's Core Purpose

While specific, formally documented mission or vision statements for Battalion Oil Corporation prior to its acquisition by Fury Resources, Inc. in May 2024 are not readily available publicly, the actions and strategic direction of exploration and production (E&P) companies like it generally reveal their core purpose. Their operational existence revolved around identifying, acquiring, and developing oil and natural gas reserves, particularly within the Delaware Basin.

Official mission statement

An official, publicly stated mission statement specific to the former Battalion Oil Corporation entity is difficult to confirm post-acquisition. However, its operational focus suggested a mission centered on maximizing the value of its hydrocarbon assets through efficient and responsible development.

Vision statement

Similarly, a distinct vision statement is not readily accessible. E&P companies typically envision sustainable growth, operational excellence, and becoming leaders in their specific basins, aiming to deliver consistent returns to stakeholders. Understanding the company's financial standing is crucial context; you can explore Breaking Down Battalion Oil Corporation (BATL) Financial Health: Key Insights for Investors for more details.

Company slogan

No specific company slogan for Battalion Oil Corporation is widely documented or promoted.

Ultimately, the primary drivers for an independent E&P company like Battalion Oil were typically:

• Increasing production volumes efficiently.
• Managing operating costs effectively, reflected in metrics like lease operating expenses (LOE).
• Replacing reserves to ensure long-term viability.
• Delivering value to shareholders, though this became challenging leading up to its Chapter 11 filing in late 2023 and subsequent acquisition.

Battalion Oil Corporation (BATL) How It Works

Battalion Oil Corporation operates as an independent energy company focused on the acquisition, exploration, development, and production of oil and natural gas properties. Its primary activities center on extracting hydrocarbons from its asset base, primarily located in the Delaware Basin.

Battalion Oil Corporation's Product/Service Portfolio

Battalion Oil Corporation's Operational Framework

The company's value creation process revolves around the upstream oil and gas lifecycle within its core acreage. This begins with geological and geophysical analysis to identify promising drilling locations. Subsequently, it manages drilling operations to access hydrocarbon reservoirs, followed by well completion activities, including hydraulic fracturing, to stimulate production. Once wells are online, the focus shifts to efficient production operations, managing flow rates, and performing necessary maintenance to maximize recovery over the well's lifespan. As of late 2024, operations yielded an average production rate around 15,000 barrels of oil equivalent per day. Careful management of lease operating expenses is critical throughout this production phase. For more details on the company's financial performance stemming from these operations, consider Breaking Down Battalion Oil Corporation (BATL) Financial Health: Key Insights for Investors.

Battalion Oil Corporation's Strategic Advantages

Several factors contribute to the company's position in the market.

• Delaware Basin Focus: Operations are concentrated in one of North America's most prolific and economically attractive oil and gas plays, providing access to stacked pay zones and established infrastructure.
• Operational Control: Maintaining operatorship over a significant portion of its assets allows for greater control over development pacing, capital allocation, and cost management.
• Cost Structure Optimization: Continuous efforts are made to reduce drilling and completion costs as well as lease operating expenses, enhancing profitability even in volatile commodity price environments.

These elements enable the company to navigate the competitive E&P landscape and generate returns from its resource base.

Battalion Oil Corporation (BATL) How It Makes Money

Battalion Oil Corporation generated revenue primarily through the exploration, development, and production of oil and natural gas properties located in the Delaware Basin. Its income stemmed directly from the sale of extracted crude oil, natural gas, and natural gas liquids (NGLs) at prevailing market prices.

Battalion Oil Corporation (BATL) Revenue Breakdown

The following table outlines the approximate revenue breakdown for the fiscal year ended December 31, 2023, the last full year reported before its acquisition.

Battalion Oil Corporation (BATL) Business Economics

The company's profitability was heavily influenced by volatile global commodity prices, primarily West Texas Intermediate (WTI) for oil and Henry Hub for natural gas, adjusted for regional price differentials and transportation costs. Key operating costs included lease operating expenses (LOE), costs associated with drilling and completion activities, production taxes, and general and administrative expenses. Managing these costs effectively against fluctuating market prices was crucial for operational viability. Capital expenditures on drilling new wells were essential to maintain and grow production levels, directly impacting future revenue potential but also requiring significant upfront investment.

Battalion Oil Corporation (BATL) Financial Performance

In its final full year of independent reporting (2023), Battalion Oil Corporation generated total revenues of approximately $331.8 million. However, the company faced financial challenges, reporting a substantial net loss largely due to lower average realized commodity prices compared to the prior year and significant impairment charges. Production levels were maintained, but operational costs and significant debt obligations pressured profitability. Understanding these dynamics is key; you can find more details here: Breaking Down Battalion Oil Corporation (BATL) Financial Health: Key Insights for Investors. The company's financial situation ultimately led to its acquisition in late 2023.

Battalion Oil Corporation (BATL) Market Position & Future Outlook

Following its Chapter 11 filing in late 2023 and subsequent acquisition by Fury Resources, Inc. in early 2024, Battalion Oil Corporation ceased to exist as an independent publicly traded entity; its assets are now part of a larger private operator, fundamentally altering its market position and future outlook, which is now tied to Fury's strategy in the Delaware Basin.

Competitive Landscape

The competitive landscape focuses on the Delaware Basin, where Battalion's primary assets were located. Fury Resources now operates these assets amidst established players.

Note: Market shares are estimates for the broader Permian Basin as specific Delaware Basin shares fluctuate and Fury Resources is private.

Opportunities & Challenges

The outlook for the former Battalion assets under Fury Resources involves the following:

Industry Position

Prior to its acquisition, Battalion Oil was a small-cap independent exploration and production company primarily focused on developing oil and natural gas properties in the Delaware Basin portion of the Permian Basin. It faced significant financial challenges, leading to its restructuring and sale. The company's historical operational goals can be further understood by examining its Mission Statement, Vision, & Core Values of Battalion Oil Corporation (BATL). As of 2024, the assets formerly belonging to Battalion are now integrated into Fury Resources, a private entity, positioning them within a larger, potentially more stable operational framework but removing Battalion itself from the competitive landscape as a standalone company.

• Asset Base: Primarily oil-weighted acreage in the Delaware Basin.
• Previous Status: Independent E&P, listed under ticker BATL.
• Current Status (Post-Feb 2024): Assets owned and operated by private company Fury Resources, Inc.