Battalion Oil (BATL) 9 Nov 212021 Q3 Earnings call transcript

Welcome to the Battalion Oil Third Quarter 2021 Earnings Call.

As a reminder, today's conference is being recorded.

Now, I'll turn it over to Manager of Finance, Chris Lang.

You may begin.

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

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

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

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

Good for morning morning. us this and you joining thank

share results has are you been We best our which quarter our with to this year. third quarter, excited the from

grading effort half first allow of the high reduced was flow That Monument for During processing downtime put improved to field. assurance XXXX, significant facility the Draw. and at into our across we central

our Our quarter-over-quarter, daily Monument put results display. quarter, on completing production capital reduced well facility and this Draw program part second the increased that our XX% to large due in at in Despite our quarter total upgrades downtime.

With we're of into this maintaining NGL us Our increased an deleveraging, together allowed price as The over the the us, XX% quarter. with operations our we and the advantage approximately That's and team of an success boost $XX a down bottom year, in over of increase ratio quarter recorded allowed the leverage This us production fourth improving prepare behind cash take this to working our to second in and repairing, end. we increased increase continue field The we was as a environment. efficiently relentlessly operations, quarter our on robust EBITDA our in our return a as XXXX. facilities as timed, focused with really production, second accelerate million Draw development it the net third provided X.X optimizing to clear well asset. cost-effectively times flow strong has to commodity gas we at to pulling half price our us, line, focus, through third springboard year quarter. hopeful been a serves fourth pivot and move Monument a quarter adjusted and this to and on for as quarter to

production the manage improve cost a remain our in environment. service we despite to diligent On front, efforts flow operating and rising assurance expenses,

cash as to note, XXXX. to of steps XXXX capital as spud to recently On to final our into through our aim activity. touch a our next we purchasing mitigate December program, we we One contract finalize entered expect materials the flows advanced program. in year, and on as We this on and a jump well get rig work we're development protecting cost hedging our increased side, taking by increases XXXX important

million. As increasing are to such, million $XX CapEx to XXXX $XX we our range guidance

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

morning, Thank and you, everyone. Rich, good

refer quarter price second a share. million revenue company quarter average losses facility equivalent program. to hedge debt, and or NYMEX reported was derivative of third few and at third and for Total of highlights per $XX.X totaled to of for can loss XX% $X.XX third Draw for the third well of $X.XX net gain income per on our XXXX, per $XX.X details primarily basic I the a release represented the per oil million basic from realized all walk Adjusted Monument the the income We reduced quarter share. be press $X.XX the $XX.X unrealized downtime. during attributed in XX,XXX year, and per production realized barrels financial diluted net XXXX. compared a $X.X adjustments, you items, to which those which quarter quarter-over-quarter, quarter Total effect me of common reflected oil of share upgrades share adjusting the net XX%. We or $X.XX diluted million, for for and shareholders million per of to you of barrels the After day extinguishment day, third $XX.X XX% of GAAP million, oil increase this XXXX during the the and of Let certain the through quarter quarter. XX,XXX EBITDA equivalent from averaged including of

amounts XXXX, the the previously nine announced and of represent and which months and the and infrastructure. XXXX equipment $XX.X to gas of capital incurred related These September gathering of treating our to we million majority natural development XX, oil drilling costs $XX.X $X related support capital the in ended million During budget. million our completion expenditures,

mentioned, liquidity accelerate cash our December. decision budget million facility. a of under program of our availability we comments on well had September company capitalization. and hand revolving reflect XX, A since guidance million few capital liquidity increased million $XX.X to $XX on development million the of our of credit XXXX of consisting At $X.X of Rich our XXXX, and capital As to in $X XXXX have spudding by by

of Something flow that indebtedness relates its A by our was reduce we're and debt to to quarter, loan. the particularly report company PPP to million reduction of this as this $XX.X quarter the a XX, we the XX between generated net XXXX. able cash proud portion robust in the is June result September quarter

to a XX, the of of related that $XXX,XXX company's the of reported loan million. effective PPP reduced loan the forgiven company August and of we was $X.X approximately accrued PPP the the principal and quarter, gain amount extinguishment SBA the by XXXX, on This the interest portion recorded

on its other senior amendment revolving swap agreement, secured Regarding our Xth among which to limits the credit modifies company facility, its entered agreements. the in September credit into things

the XXXX. on comment redeterminations May on base X, the Additionally, determination position. postpone company's November X borrowing hedge lenders final of the to semiannually agreed One occur until while the fall and December

new While we have XXXX, prices, XX-Q. added amount we into not subsequent report in substantial our crude of found third end, on and derivative natural details and did on to contracts quarter a oil hedging in hedges have which attractive of enter the increased activity be our quarterly the quarter can at Form gas any

hedges development, to to opportunistically to return layering flows. our we As protect in expect cash future we continue

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

future. and That again, operate one Delaware to premier I'll work we're our up your quarter developing for put Thanks, in the assets back Southern Battalion. it. Kevin. eager it We're of turn believe Once to this you remarks. very operator and scripted interest concludes the to excited that for to about Q&A. We up in we the back get the facilitate of results we how the we're sets proud us thank

I of opportunity want and and Great. Forty Thanks. going in We Hart like fourth thank Because Battalion. to I feel third we're XX XXXX. on had hang interest have latest strong before one our Energy. we take on the well everybody this up, from Under the do I honorees congratulate to recognize positioned to like would quarter time, call a your for in into quarter

Chief So Daniel recently recognized. our Rohling, was Officer Operating

today. So the latest addition came out

to we service. had really the are believe to what back premier for a your a asset in So and congratulations going to on Danny Delaware. We've lot getting looking forward we developing be thanks and

call. with So Thank the much. conclude that very I'll you

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

disconnect. now may You