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BATTALION OIL CORPORATION Battalion Oil Corporation Announces Second Quarter 2021 Results HOUSTON , Aug. 09 , 2021 ( GLOBE NEWSWIRE ) - Battalion Oil Corporation ( NYSE American : BATL , " Battalion " or the " Company " ) today announced results of operations for the second quarter 2021 . Highlights • Completed and put online two new wells in Monument Draw during the quarter • 2021 capital program largely complete - 6 wells put online at average D & C cost of ~ $ 878 per well per foot despite increasing service costs • Continued success in reducing workover expense despite rising service and material prices due to 33 % YTD reduction in failure rates over 2020 Facility upgrades in Q2 expected to reduce well downtime and increase flow assurance in 2H 2021 Management Comments Richard Little , the Company's CEO , commented , " The second quarter was in many ways a pivot point for Battalion . Our team did a great job continuing the trend of capital discipline as we completed and brought online two wells in our Monument Draw area . With these two wells online , our 2021 capital program is substantially complete and I'm proud to be able to say we did so while remaining under budget despite rising service costs . " " As our 2021 capital program draws to a close , we remain focused on our future as we prepare to accelerate in 2022 and beyond . We put significant effort this quarter into upgrading our central processing facility to allow for improved flow assurance and reduced downtime across our fields . With the improvements we've made to our facilities , as well as the improvements made by our midstream partners , we are well positioned to have a stronger second half of the year despite the completion of our 2021 development capital program . ' " As we enter the second half of 2021 , we remain optimistic . Well results from our 2021 capital program are promising , and we feel confident in our ability to execute on our long - term plan of methodically growing the company . " Results of Operations Average daily net production and total operating revenue during the second quarter 2021 were 15,571 barrels of oil equivalent per day ( " Boepd " ) ( 57 % oil ) and $ 64.4 million , respectively , as compared to production and revenue of 14,264 Boepd ( 60 % oil ) and $ 18.5 million , respectively , during the second quarter 2020. The increase in revenues in the second quarter of 2021 as compared to the second quarter 2020 is primarily attributable to an approximate $ 31.35 per Boe increase in average realized prices . Total production increased in the three months ended June 30 , 2021 , when compared to the same period in the prior year due to new production brought online as a result of our 2021 capital program as well as production from wells brought back online that were shut - in during May and June 2020 when historically low commodity prices occurred , which was partially offset by third party processing curtailments and facility upgrades and repairs in the current year period . Excluding the impact of hedges , Battalion realized 97 % of the average NYMEX oil price during the second quarter of 2021. Realized hedge losses totaled approximately $ 18.3 million during the second quarter 2021 . Lease operating and workover expense was $ 7.72 per Boe in the second quarter of 2021 and $ 8.36 per Boe in the second quarter of 2020. Adjusted G & A was $ 2.69 per Boe in the second quarter of 2021 compared to $ 2.85 per Boe in the second quarter of 2020 ( see Selected Operating Data table for additional information ) . The Company reported a net loss to common stockholders for the second quarter of 2021 of $ 33.9 million and a net loss per basic and diluted share of $ 2.09 . After adjusting for selected items , the Company reported net income to common stockholders for the second quarter of 2021 of $ 0.6 million , or $ 0.04 per basic and diluted share ( see Selected Item Review and Reconciliation for additional information ) . Adjusted EBITDA during the quarter ended June 30 , 2021 , was $ 14.1 million as compared to $ 23.2 million during the quarter ended June 30 , 2020 ( see Adjusted EBITDA Reconciliation table for additional information ) . Adjusted EBITDA for the quarter ended June 30 , 2020 , included approximately $ 8.2 million of net proceeds from the monetization of hedge positions associated with the third quarter of 2020 . Liquidity and Balance Sheet As of June 30 , 2021 , Battalion had $ 163.0 million of borrowings and $ 1.9 million of outstanding letters of credit issued under the Senior Revolving Credit Facility resulting in unused borrowing capacity of $ 20.1 million based on a borrowing base of $ 185.0 million . Total liquidity at June 30 , 2021 , inclusive of $ 1.4 million of cash and cash equivalents , was $ 21.5 million . In May 2021 , the Company entered into the Fourth Amendment to its Senior Secured Revolving Credit Agreement which , among other things , reduced the borrowing base to $ 185.0 million effective June 1 , 2021 , and will further reduce the borrowing base to $ 175.0 million effective September 1 , 2021 . Operations Update The Company completed and brought on production two wells in its Monument Draw area during the quarter which substantially concludes the 2021 capital program . Conference Call Information Battalion Oil Corporation has scheduled a conference call for Tuesday , August 10 , 2021 , at 11:00 a.m. EDT ( 10:00 a.m. CDT ) . To participate in the conference call , dial +1 334-777-6979 or 800-377-9510 ( toll free ) a few minutes before the call begins and reference Battalion Oil Corporation confirmation code 9932177. The conference call recording will also be posted to Battalion's website : www.battalionoil.com . Forward Looking Statements This release contains forward - looking statements within the meaning of Section 27A of the Securities Act of 1933 , as amended , and Section 21E of the Securities Exchange Act of 1934 , as amended . Statements that are not strictly historical statements constitute forward - looking statements . Forward looking statements include , among others , statements about anticipated production , liquidity , capital spending , drilling and completion plans , and forward guidance . Forward - looking statements may often , but not always , be identified by the use of such words such as " expects " , " believes " , " intends " , " anticipates " , " plans " , " estimates " , " projects " , " potential " , " possible " , or " probable " or statements that certain actions , events or results " may " , " will " , " should " , or " could " be taken , occur or be achieved . Forward - looking statements are based on current beliefs and expectations and involve certain assumptions or estimates that involve various risks and uncertainties that could cause actual results to differ materially from those reflected in the statements . These risks include , but are not limited to , those set forth in the Company's Annual Report on Form 10 - K for the fiscal year ended December 31 , 2020 , and other filings submitted by the Company to the U.S. Securities and Exchange Commission ( " SEC " ) , copies of which may be