Battalion Oil (BATL) 10 Nov 202020 Q3 Earnings call transcript

Welcome to the Battalion Oil Q3 2020 Earnings Call.

As a reminder, today's conference is being recorded. This conference call contains forward-looking statements.

For a detailed description of Battalion's earnings announcement released yesterday and posted to its website. This conference call also includes references to certain non-GAAP financial measures. financial are the earnings also non-GAAP measure directly release. these GAAP under contained of measures most to comparable Reconciliations in the

Richard Now Chief may over it Little. Officer, begin. I'll you Mr. to Little, turn Executive Battalion's

you, XXXX Call. Quarter Battalion's Earnings and thanks Thank joining Third for

oil a acknowledge August Andrews kick I'd XX, the who to and his of has future what from pleased insights as the Kevin welcome returned industry. work navigate the has in much but decided operation to Battalion want to Battalion in prices replace imagine the I I'm QX, hard change thank that skills to its Altizer, we take a in recovery, to our team and like in announced excited QX. Before Kevin the leadership to look modestly as together. from to Ragan I gas forward improved previously retire It's our to that experienced transformation change a and CFO, that lows to it Again, come minute off, the typical to Ragan we disclosed. hard On as financial quarter I'm to third appointment offer we've for and restructuring the represent. helping

laser-focused increase G&A we quarter said business, compared like $X.X do total million, remained demonstrated quarter. $XX.X crude derivative settlements to XXXX result, third the of we'd was aim Adjusted on done that. to XX% the XX% the was We this represented almost million we reductions. on cost a for Boe what the $X.XX XXXX. per XX%, third And for third of which this production quarter Boe oil. we in oil And we've of in of third we've which per again. Boe gains related $X.XX operate previous quarter quarter-over-quarter, Total cost As saw to it just totaled lower day, per We've say. realized and quarters quarter, over XX,XXX of the to that revenue

cost our finding saving and price $XXX reported was net after operating in XXXX million, includes Our Boe trailing Battalion associated depth only is third ceiling expense full I a their XXXX. of even SEC XX-month of a work. them was test deck. from to versus of The million, with lower $XXX lower to impairment a of company net a also keep The drop which per which for entirely oil almost is the team thank in quarter significant prices of loss loss money. third million shareholders to and workover growth of in or the adjusted the lease quarter per basic XX% of ways per as $X.XX XXXX the $X and third in an diluted EBITDA million $XX.X period. trailing to compared of the OpEx, hard $XX.X third quarter over prior a the of reported common share want $X.XX XX-month quarter all Boe

us affording a position optimum forward. we quarter, path flexible keep Xx, evaluate continue below to to This leverage the

results. through fall value mark-to-market completed PDP XXXX of recently $XX I'm of the $XX the We the Our well hedged per September process, barrel remains $XX first our and XX between by encouraged and million. and half redetermination

support challenging base spring such work program and our with back we that companies announced we our million, in facilities $XXX their a While to time. $XXX than the have which connection confidence is other with BMO their had of in May. I for redetermination slightly a to during borrowing in BMO seen achieve want million previously higher thank substantially cut, continued

better strategic across the for for our times create operations better in responsible, meantime, netbacks forward We industry, to look in improve scale. M&A and your our want to resulting optionality, I takeaway opportunities continue create thank infrastructure and and flaring better and environment. but, over pleased to the to improve in now to less we in look the interest team Again, has create our continue to value for done to to scope operator with this in you turn for this questions. I'm I hard field. Battalion, the I'll continue it to work

question [Operator with Instructions]. Parks Palmer. And we'll Noel from & take Coker a

we've to end had volatility I fourth quarter, oil any in of you did of last hedge have quarter? talk third the longer of variability so monetizations. hedge about know I you just in book so prices of again. check. far, wanted just some the monetized the In much couple the weeks And since

No, no.

we layer As of as the well market those on want of where to a matter ability take activity plan more We toward the end year. hedges. to of on the opportunity volumes do seeing of as protect We're new is this advantage because that, as putting the now. hedges. and to more going And fact, right more we're it

And that happened go about What I you with might that saying over again? base. just I extermination? Great. the have missed Could borrowing think you're the

Sure. Happy to.

redetermination May, to with and a million banks had to and So to agreed we felt -- our we that was through $XXX a down $XXX step we were that value redetermination looked $XXX And plan -- and our step originally, hold it down million. by there, November. million at and back at to the fall the in $XXX

next we'll do lot redetermination. a through the So that

were. that $X where the that's improvement million from sense? Does we make So

as the the changes Great. was prices when any far went there the for And full round as pricing, LNG?

No, not all. at

great. Okay,

activity question you we've imagine, bit more as a seen on good seen just -- bolt-on we've guess, can going kind Let of activity of as seeing these some me see. Yes. a popular general, I of days well. in

as on what So basin? any about also, going thoughts you Or see been any thoughts of your we've seeing? about the some either that have you far inside as valuations

consolidate. of a micro for Yes. makes to No, good I well, I think the as lot question. sense still caps as that think, do it others

just try whatever we not the happens We in some synergies overpay there's that lot responsible still anything, involved So makes we still in synergies. a lot these space. to for independents in have think Glad with on and continue I of a Obviously, levels a larger that be different do of do that to together. stay create that try been to it. focused going are to but surprised our willing to in in always It on space, putting stay active lot we M&A. companies we'll in to of see playground. those their to margins. sense of We're

our expected be no, think expected should in should to and space be So what's I happening continue.

most. about people from a hear pretty for only a valuation what people thinking times, are Right. are And willing lot generally, just and whenever on PDP standpoint, we of it's pay that deals to at clear

wondering various Delaware as so as And areas talk about gas the how of about that there over was your of the far considering was well-developed more I are. sort some variation is drilling,

So I that one more thoughts could And running guess, in I one room. as entice that you anything, on you want of also, acquisition PDP over that had could a heavy if the your the basin envision. side opposed maybe Midland

the Midland question Say about again that Basin. No.

cut You out.

if look you in wondering was to I could well. Midland you enticing sorry. as Basin the anything envision was there Oh,

you. thank Yes, Okay.

really those value PDP, don't I a of We've think other excited that now, see the what just expect We're you're lot than got but get undeveloped room. right looks have you to does we lot a people acreage. to is So starting we're running I makes can of recognizing that merger Delaware growth inventory Midland, because more our about versus it what just Permian see in the people When is us think about But attractive the think like. Basin. thinking what partner a can that that. about

know has You extensive experience. as this Basin calls on Midland in We've talked previous experience about the with well. team it

from that So shy we don't away either.

created the Midland. synergies Permian Basin, opportunities that can see do including and in we be So and Delaware

from just last one many for And earlier heard environment. when on confidence Great. a But in I had XXXX couple regards cost see to of low service down lot the operators, for you that future. me, service look operators question. a have out to you're bit to to of as wondered a I heard the going the is they just starting cost little that of inflation. came plan, take the of foreseeable a I year

Yes.

don't disagree no, with that. So I

efficient is what given think year. their see to trying be going capital one calendar with any to at as I we're operators

lot is -- busy get there? we also you're come which activity dies in advantage -- to what sense? still our why XXXX. a at before first of going end Okay. to noticed capital hang guided the than to the first our X last see a the We We guided is before speeding XX-Q, in the part in of the want off, for we're activity we -- increasing to Noel, a that slightly year the quickly quarters. before So of looking if you year. reason we've question that our year of get higher the up for that Does we you take are full on. had pricing the at service the that the make And in of

Okay.

on line. back is Noel the

been have are all all answered. -- questions My

but it accurate. No, you answering to question, the we're make asked I want sure

Finance to answers. I So have up Director, Daniel, wants my clear the all

ahead, go Daniel. So

the about you You do about Rich were Were you operations, kind add Or opportunities answered, current that's QX, in we hedge QX it is we're there you were seeing sounded hedging, volume. just talking asking market see or to like activity? and and now mentioned current QX. in in right hedges we monetized that asking unwound about and opportunities, how were room on more that asking of about

and we during at wondering, saw since looked book. was And had you I more a the devolved. QX, on -- No, bit hedge

November. hedges you basically of -- wondered if far or of low so maybe hedged So October, your the have just October any sorry, during you monetized I November month had very I'm during

Got you.

Okay. question Understood. it correctly, answering and were want your like make Yes, to did. we just sure sounds I we

we bringing back want right. for have just Sorry but sure that make you to on,

for you; Noel. to thank to Thanks, your continuing you I write-up Yes. follow just But and also want us. before go,

So lot. thanks a

back call the turn Richard Little over now additional I'll or And any remarks. for closing to

to listening And times. very scale we remain strategic shareholders. to in thank returning interest on increase again, the costs ways Battalion to for no scope But their value Oil. people uncertain and our reducing in to Okay. want while These, laser-focused continue Thank doubt, and finding be challenging you. I

again. to we forward Thank you. So look speaking

does conclude for We thank participation. your call. this And you today's

You may now disconnect.