Battalion Oil (BATL) 18 May 212021 Q1 Earnings call transcript

Good day, and welcome to the Battalion Oil First Quarter 2021 Earnings Call. This call is being recorded. I will now turn the call over to Chris Lang. Please go ahead.

Thank you, and welcome to our first quarter 2021 earnings call. With me today are a few of my colleagues, our Chief Executive Officer, Richard Little; our Chief Financial Officer, Kevin Andrews; and our Chief Operating Officer, Daniel Rohling. This conference call contains forward-looking statements.

of posted see on description issued earnings detailed and yesterday our a our our disclaimer, release For website. This to conference certain references non-GAAP financial call measures. also includes the under Reconciliations directly yesterday. our measures non-GAAP of released to these earnings announcement comparable are GAAP measure contained in financial most

our webcast. also have on investor may be may be presentation, We and which referenced an found published website during this

a will scripted remarks begin Q&A. with few team Our by followed

turn it over to me Rich. let Now

costs capital completion sales X foot off in this and our we this completion volumes. We turn linear first A second storms. morning last you despite morning, early this discipline, Oil's XXXX $XXX for I'm major quarter to by of to team quarter. I'd ongoing our capital challenges accomplish, on quarter. continued I'm program in this to as remain able joining Good foot we first and our in call. The completing safety in reducing the capital commitment efficiency, and recently proud additional delivered per to the as call demonstrated to despite theme per for X quarter was to we able QX. on to month how on were DUCs We and to Battalion thank quarter on was kicked our and expect the discuss pandemic of plan $XXX production our quarter results for linear earnings everyone. execution winter that XXXX XXXX from display share disruption got spudding of first the this the results strong earlier were started our excited us as program what X lower-than-expected related the well caused like culture new them year, and wells by wells the to

our overall And through certainly on a we X of of freezes improved during the and team this force also driving of our a to service our a had handful majeure online savings Some new an the for our savings prices is job remaining our wells the certainly quarter realized and performance safe. We praise during during while great cash due had lot kind February. efforts. for to did cost to us were as of shut-ins challenges are Mechanical events downtime, these we're production long production examples the issues with the fourth revenue, from storms, performance well operational to high cold date, of commodity failures, quarter, pricing and field Despite result a storms. related pleased ability XXXX us. in expectations caused just keeping historically but new team quarter from environment market, those the as the they those were while daily including of That wells. we the widespread operational a And of the was incidents deserves overcome. average their flow exceeded cost XX% efficiencies. To as EBITDA winter improvement recordable daily a result in preempt from demand quarter positive, snap down our of for line the

to our Operating off like the Chief Officer, Rohling. I'd hand call Now to Daniel

morning. good and you, Thank

XXXX to we December be costs couple pricing. to As we that of opportunity an reduction an able result XXXX, right average fall, in increase improved And to in in is we year. to Rich first We secure the overall our strongly this mentioned, we we moving work of believe early, the expected when first as on the across activity end foot quarter by pad got Last efficiency, capital in were were front of on of $XXX a starting that, of for basin. that By XXXX. our an completion preparing call. in with attractive quick our the in XXXX jump $XXX what program get was a completions we saw

our our those pad wells Tabor drilling through in drilling first wells also costs We X-day despite line a on And the freeze, and quarter. which the performance X were expectation over with February operation impacted spud our on working in period.

EURs area. It's commodity rock an save But our quarter, leverage and be where X performance record as barrels trips. equivalent to of adjustments we X.X talking measures of casing for about have wear repeatable benefits bit are to decrease continue another we'd performance, BHA knowledge improvements about real-time CapEx. saw design, reaping our increase cost only our using of to frac also In and strong result across We we to in optimize and the what million also talked freeze but and of savings not wells at pricing. days, about or increase all-time a and drilling our extremely dozen understanding improve so while we performance those the this The more low last asset averaged execute use last G&G example cost seeing base. the all, ROP higher the

mentioned only strong But storm production a aftermath to the job keeping the led damage. both the as the really they online them in but did had improved results, their if for assessed flowing. team matters is We side, work out financial as that once-in-a-lifetime winter our came barreling production pricing the us a the storm and On cut earlier the midst we in. tremendous of pricing

to So deserves the report tremendous were team for credit our ops amount a of results today. we able

we by finish ESG I'll strides the financials, continue to the into noting front. make on that jumping Before

substantially youth quarter, no to work to Texas have we the in our communities with We West had flare continued with reduced an recordable incidents. intensity make impact the During and programs.

the will the very are we ESG, to working and pleased While standard ourselves to hold board. we hard a we improve on with made high have continue progress across

Now Kevin Kevin? some will of walk highlights. our you through financial

everyone. morning, good and Danny, you, Thank

things, average expenditures of to for the shut-in on our producing completion expect capital XXXX was some in March million XX,XXX $XX.X spring and second winter treating equivalent per of XX,XXX May, as the XX% of other year. I'll few We highlights QX discussed, wells the financial X, million weather the to At production amendment of QX NYMEX infrastructure. net compared of a of revolving from through which, barrels the release be $XX.X our XXXX borrowing budget quarter the XXXX. a quarter the Of was $X.XX consisting XXXX to the Total September per $X.X recognized but this $X.X of $X.XX derivative net $XX.X company's unrealized our oil XX, of for and into X, you quarter. adjustments, net quarter barrels Adjusted effect base $XX.X for million. totaled to the of loss per effective of million development company a I to walk further And GAAP redetermination me for for the $XXX of to related million represented refer reported fourth part XXXX, of to company oil result $XX.X a June shareholders liquidity liquidity. reflected company a spent day we credit of gathering its comments the quarter million our first XXXX, of of million day credit among majority our driven remaining primarily our during those the oil for million and and reduces XXXX. Capital or In equivalent million reduces support the million, which the realized hedge Let close of previously $XX.X averaged a price an availability senior XXXX, share. first as XX% of cash adjusting during to of of the oil the totaled first per by drilling our for quarter certain during XXXX $XXX storms. Total XXXX entered revenue the effective XX%. details decrease including with million program. We to common $XX.X as first income was had activities borrowing quarter the from losses, $X.X spent QX, $X.X loss you or first After under facility, that severe and share. of million income in related facility. of the items, press process, EBITDA $XX.X base million million of

under sufficient the While credit remaining we program. capital our liquidity availability current certainly and execute to expected our than reduces amendment facility, the more this believe flows are XXXX on cash

pandemic. the us deliver as those exceed ongoing well up results the able were results or well widespread as guidance, our result and was a to challenges winter caused the meet we to by delivered faced Kevin. The that operational disruption the quarter despite first Thanks, we of the set storms as in XXXX

to Our that an the work far operation we year, and teams really have job carry us so incredible of rest done expect through this XXXX. exceptional

our approach, use to single free flow. goal simple, cash digit while As increasing growth a we was enter this disciplined deliver year, production flat

turn we our or through to us, growth remarks. that through now present growth for While the the facilitate market whether it eager you return to the remain I'll to your take back the are interest comes whatever advantage we Battalion. That of in goal, ready Q&A. to M&A to and committed to at drill might remain operator opportunities scripted concludes the bit. Again, thank that

you I'd are time. turn no [Operator like Little, this conference the It or to there appears for any Instructions] additional All right. questions remarks. closing at back to Mr.

you. Again, I Battalion Thank for to their everybody interest just Great. in Oil. want thank

challenges, with team a challenges. responded and I'm how to quarter of proud of those came our lot First really

Thanks, to speaking future. look we forward you So Goodbye. again the again. in near to

you Thank call. your today's concludes This for participation.

disconnect. now may You