Battalion Oil (BATL) 10 Aug 212021 Q2 Earnings call transcript

Good morning. Welcome to the Battalion Oil Second Quarter 2021 Earnings Call. I'd now like to turn the conference over to Chris Lang.

Good morning. I'm joined by a few of my colleagues today that I'd like to introduce. Richard Chief Chief Operating Officer, Andrews; Officer, Executive our and Officer, Chief Little; Financial our Kevin Battalion's Daniel Rohling. contains call conference forward-looking This statements.

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

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

our scripted to And turn Q&A. Now things present will like over it team a start remarks, followed to I'd that, few off. by Rich to Rich? with

morning, Good everyone.

us earnings second this morning First, like I'd for call. joining quarter to thank for Battalion you

the as online here. The our on six to proud There's pad, XXXX of conclusion completing be finished second two wells our quarter XXXX. to we total wells capital mark lot put bringing our [Tabor] a in program of

Our during we've focus of to per service inflationary as this foot on to prices us commodity also an per $XXX DNC early allowed Well, an pressure year average from trend the those program. result achieve up. performance given cost That's costs exceptional pleased the on continue We're very seen this capital discipline with wells.

showing curves, Our four are DUCS the promise. early and or tight from completed all results two their are in wells real QX exceeding our Tabor meeting

operating XXXX the With largely focus improving complete, program margins. to our shifts our

equivalent year-to-date. has and barrel lease LOE WOE operating workover X% made expenses improving of reducing team considerable and our Our year-over-year per in strides by

and we've forward. key being to strides identifying made focus our heavily AGI path gathering transportation with costs, a where continue priority a We significant in project, on improving also our

evaluating improve In addition carefully we've our sweet access attention to to operating a price markets to paid and purchasers. costs, our By of realizations. in increasing lot reducing

allow processing We Draw facilities the in also assurance and reduce central downtime our across high the to at for quarter put improved this Monument field. grading significant flow effort

well improvements as to the With of as midstream our by XXXX have facilities we're of the positioned second year, completion made partners, improvements program. capital stronger development half a our we've made despite the our to well

Kevin financial I'll through pass to results. walk to our off it Now

and Thank Richard, good morning, you, everyone.

production you day, few averaged online highlights to common per including oil our which XXXX of XXXX or second details $X.X the $XX.X losses, to of quarter GAAP per be million XX%. totaled We net This loss hedge income adjusting or as XXXX, wells of as XXXX quarter. or quarter $XX.X by second of net program, I shareholders compared quarter-over-quarter. share, as primarily We oil processing release Let partially me NYMEX walk represented XXXX. in offset for equivalent financial increase refer party QX derivative new can second of oil February, the press for day EBITDA Total per reflected the quarter unrealized company equivalent barrels loss recognizing second After XX,XXX revenue from a barrels effect certain the the for the for a increase result $XX.X through Total brought from and adjusted to quarter. program. production in million reported shut of of the XX,XXX well per production of The to for share. loss those X% attributed during of for capital was and upgrades weather repairs third in million $XX.X net items you XX% facility our back the that million, inclement during curtailments adjustments. price were QX, in average of the of $X.XX from $X.XX of realized quarter a second oil million,

XXXX, of XX, cost incurred treating the June $XX.X development During capital we $X.X to equipment and million and drilling million six completion related of months in our infrastructure. related million $XX.X ended which and to expenditures, the support gathering

to As expect budget. spent amount we the date our And liquidity base of first reflect our effective of facility. June capitalization. company's XXXX to At had final $XXX XXXX, capital million of the cash X, earnings will XXXX. on September discussed $X.X $XXX and availability consisting be the XX, $XX.X the as $XX.X million reduced liquidity majority quarter under to disclosed, call, now borrowing in comments of Also, we the some credit and of previously from million company revolving million our million

program use our capital facility. of XXXX XXXX credit the we borrowings our flow second in remaining production our of outstanding XXXX substantially majority reduce hedge, the revolving to cash largely complete under and to With our expect half

Now, turn back to me concluding some it remarks. offer to let Rich

about results Kevin. Thanks early back get growth. We're to program. excited our to XXXX capital eager And the from we're

our you the As Thank flow. Battalion. we it enhancing drill focused interest remarks. margins facilitate to evaluate turn improving our or cash operator options through to for our remain free M&A, on accelerate bit to That back in concludes Q&A. and we'll I'll scripted the And your

from [Operator with We'll Noel Instructions] take Brothers. our Parks Tuohy first question

last months ago in Good better have now was from the been the reach the termination. - ago? the the bank way either for questions, about rig thinking I prices using since couple the I or or base, months eight year just personal curious A is you year, get now price of this than six did morning. borrowing is much upside much

the in at No, to significantly. bank price I all, didn't is there's we spring. answer And pricing the that trail much that lag the think decks the back from seem get benefit

be price acceleration ramps But pretty really to market will fall, seen but close that the decks new up as changes. haven't typically for higher. seen expect we've price it anywhere of a not I the the and We fast

webinar infrastructure, you facilities around everything you and still sorry. impacted Is the Right, heard this I best negatively the marketing it's then February event have a as oh, third or do I of some is offline from up in, - point? the that at to wanted then. is party and just updates back was check much in or thanks, can different you And are companies variety the also Battalion know, Permian, that's some running, pretty that everything pretty still tell, much as

The companies say looking events with us you're good is question. with some got Those did cause third behind all improving price. no, commodity the valves This We've February had Rich. party I'd now. are we've issues Yes, and that that seals. midstream is fixed. when another at challenge repairs

online as seeing are coming facilities and You they're production and well. their own more hydrating improving

us. I future the trying This and the for get now the impacted on for storm, is think an ready improving So just commodity anything winter in to just part most behind market.

if up just facility it you little you about catching to I wanted curious sort I maintenance Then what more could did out you about may, just whether was bit of that you there. a expansions. just talk or Great. on more just ask I'm wondering periodic upgrades

you anything Just can that great. say about be would that

answer Sure. I'll that. Danny let

Yes. Hi, Noel.

downstream gives our come party processes of there more close different we're to Rich advantage to that's really you the took more We've on, of upgrades got Draw. because compression valving touched our to days. kind in across expanded in here able QX in mechanical to made point like that next asset on assurance XX% current Rich your downtime Monument the going upgrades also to of one markets and plants third they QX. avenues So like to from just really But like two us and in aiming same to of to flow to they And And there. the we it touched flow upgrade. few a and the so online

freeze the excited XXXX. coming own using for kind maintenance our allowing expand. of we really compression the downtime And was as and out upgrade to and throughput back expanding added in facility, QX, as necessary year the there to our for our working QX redox as We right and due from we're took well well. So upgrades springboard them. advantage into with takeaway liquid the and about of into to and back And for of happen and added the compression on of some half of the is that a

So Monument said coming XXXX. flow number of also and to, a capacities, then then us but the in assurance it really of the second lot to of allow springboard current one all into I like for went quarter, to on out XXXX Draw expansion focusing on half

That question-and-answer for turn you at I today's will any additional time, concludes Speakers remarks. over session. back this the to closing or conference

Battalion. I thank as Thank everybody's We did want your Great. you. company continues in quarter, active future growth in the interest an position have recover. to the second Again, attention market for and you to

interest. thanks Bye. the definitely So and future to looking for we the again are your opportunities ahead. And forward

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

may disconnect. You now