HOUSTON, March 29, 2024 (GLOBE NEWSWIRE) — Battalion Oil Corporation (NYSE American: BATL, “Battalion” or the “Company”) today announced financial and operating results for the fourth quarter of 2023.
Key Highlights
Approximately 41,000 net acres, 91% HBP in three contiguous blocks across Ward, Winkler and Pecos Counties with substantial remaining location inventoryBrought previously announced AGI project online in Q1 2024 treating over 20 MMcf/dRecommenced drilling operations in Monument Draw in Q4 2023 to execute a six well program Completed two wells in Q4 2023, brought online in Q1 2024 under budget with strong initial resultsDrilled two additional wells in Q1 2024, currently completingCommenced drilling operations on two additional wells in Q1 2024, currently drilling ahead Generated full year sales volumes of 13,784 barrels of oil equivalent per day (“Boe/d”) (48% oil)Year-end 2023 reserves of approximately 68.1 million barrels of oil equivalent (“MMBoe”) with a standardized measure of discounted future net cash flows of approximately $598.5 million.Executed a $35.0 million preferred equity raise in December 2023 and an additional $20.0 million preferred equity raise in March 2024 to support drilling programContinuing strategic alternatives initiative and are working toward closing our previously announced merger agreement with Fury Resources
Management Comments
During Q4 2023, following the preferred equity raise, the Company re-commenced its drilling operations in Monument Draw after operating a three-well pad on non-operated acreage adjacent to the asset. The company also prepared additional locations across all three asset areas to support additional activity in Ward, Winkler, and Pecos Counties. Since the quarter close, the two well Glacier pad drilled in Q4 2023 has been completed and is on production. These wells came online below budget, above projected type curve, with substantial pressure support and 30-day IP’s over 1,950 Boe/d and 1,750 Boe/d, respectively. Two additional wells (Rio Bravo pad) have been drilled to total depth and are currently being completed. The drilling rig has moved onto an additional two-well pad (Vermejo pad) in Monument Draw. All operations have been favorable to plan from both a capital and timing perspective.
During the fourth quarter, workover operations for the acid gas injection (“AGI”) project were substantially completed. Since that time, the facility has restarted operations and began taking acid gas from the Company with approximately 200 MMcf being recently treated at AGI and approximately 175 MMcf of sweet gas being returned to the Company for sales to our midstream partner. As the facility continues to come online, the Company will benefit from the return to production of currently curtailed volumes of up to 750Bbl/d. Additionally, when the AGI is operating at full capacity, we expect to save up to $2.0 million per month in gas treating costs.
Matt Steele, Chief Executive Officer, commented “The operations team has performed exceptionally well on our Monument Draw drilling campaign. The most recent Glacier pad wells represent some of the best the Company has ever drilled from both a cost and performance basis. Bringing the AGI back online to treat our gas represents a new era at Battalion. The difficult steps we took last year to right size the Company and focus on operational excellence are beginning to pay dividends.”
Results of Operations
Average daily net production and total operating revenue during the fourth quarter of 2023 were 12,022 Boe/d (46% oil) and $47.2 million, respectively, as compared to production and revenue of 15,696 Boe/d (51% oil) and $76.8 million, respectively, during the fourth quarter of 2022. The decrease in revenues in the fourth quarter of 2023 as compared to the fourth quarter of 2022 is attributable to an approximate 3,674 Boe/d decrease in average daily production and a $10.21 decrease in average realized prices (excluding the impact of hedges). Excluding the impact of hedges, Battalion realized 99.7% of the average NYMEX oil price during the fourth quarter of 2023. Realized hedge losses totaled approximately $3.0 million during the fourth quarter 2023.
Lease operating and workover expense was $11.87 per Boe in the fourth quarter of 2023 versus $9.89 per Boe in the fourth quarter of 2022. The increase in lease operating and workover expense per Boe year-over-year is primarily attributable to a decrease in average daily production as a large portion of our lease operating expenses are fixed costs. Gathering and other expense was $13.31 per Boe in the fourth quarter of 2023 versus $11.31 per Boe in the fourth quarter of 2022. The increase was primarily related to midstream disruptions and plant curtailments and an increased percentage of total production requiring H2S treatment, as well as inflationary impacts on costs associated with our own hydrogen sulfide treating plant. General and administrative expense was $4.93 per Boe in the fourth quarter of 2023 compared to $2.46 per Boe in the fourth quarter of 2022. The increase is primarily due to audit, legal and transaction costs associated with the potential merger with Fury Resources. These costs will be substantially reduced in future quarters.
For the fourth quarter of 2023, the Company reported a net income available to common stockholders of $27.0 million and net income per diluted share available to common shareholders of $1.63 per share available to common stockholders. After adjusting for selected items, the Company reported an adjusted diluted net loss available to common stockholders for the fourth quarter of 2023 of $16.6 million, or an adjusted diluted net loss of $1.01 per common share (see Reconciliation for additional information). Adjusted EBITDA during the quarter ended December 31, 2023 was $10.0 million as compared to $22.7 million during the quarter ended December 31, 2022 (see Adjusted EBITDA Reconciliation table for additional information).
Liquidity and Balance Sheet
As of December 31, 2023, the Company had $200.2 million of indebtedness outstanding and approximately $0.3 million of letters of credit outstanding. Total liquidity on December 31, 2023, made up of cash and cash equivalents, was $57.5 million.
On November 8, 2023, the Company obtained a commitment letter from its existing equity stockholders to purchase additional preferred equity securities in an amount up to $55.0 million. An aggregate of 35,000 shares of preferred stock were sold on December 15, 2023, under such support letter for proceeds of $34.1 million, net of discount. On March 27, 2024, the remaining 20,000 shares under such support letter were sold for proceeds of $19.5 million, net of discount.
For further discussion on our liquidity and balance sheet, as well as recent developments, refer to Management’s Discussion and Analysis and Risk Factors in the Company’s Form 10-K.
Important Information for Investors and Stockholders
This communication is being made in respect of the proposed transaction involving the Company and Fury Resources, Inc., a Delaware corporation. In connection with the proposed transaction, the Company intends to file, or has filed, the relevant materials with the U.S. Securities and Exchange Commission (“SEC”), including a proxy statement on Schedule 14A and a transaction statement on Schedule 13e-3 (the “Schedule 13e-3”). Promptly after filing its definitive proxy statement with the SEC, the Company will mail the definitive proxy statement and a proxy card to each stockholder of the Company entitled to vote at the special meeting relating to the proposed transaction. This communication is not a substitute for the proxy statement, the Schedule 13e-3 or any other document that the Company has or may file with the SEC or send to its stockholders in connection with the proposed transaction. The relevant materials filed by the Company will be made available to the Company’s investors and stockholders at no expense to them and copies may be obtained free of charge on the Company’s website at www.battalionoil.com. In addition, all of those materials will be available at no charge on the SEC’s website at www.sec.gov. Investors and stockholders of the Company are urged to read the proxy statement, the Schedule 13e-3 and the other relevant materials as they become available before making any voting or investment decision with respect to the proposed transaction because they contain important information about the Company and the proposed transaction.
Participants in Solicitation
The Company and its directors, executive officers, other members of its management and employees may be deemed to be participants in the solicitation of proxies of the Company stockholders in connection with the proposed transaction under SEC rules. Investors and stockholders may obtain more detailed information regarding the names, affiliations and interests of the Company’s executive officers and directors in the solicitation by reading the Company’s Annual Report on Form 10-K, for the fiscal year ended December 31, 2023, and the proxy statement, the Schedule 13e-3 and other relevant materials that will be, or have been, filed with the SEC in connection with the proposed transaction as they become available. Information concerning the interests of the Company’s participants in the solicitation, which may, in some cases, be different than those of the Company’s stockholders generally, will be set forth in the proxy statement relating to the proposed transaction and the Schedule 13e-3, as they become available.
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, 2023, and other filings submitted by the Company to the SEC, copies of which may be obtained from the SEC’s website at www.sec.gov or through the Company’s website at www.battalionoil.com. Readers should not place undue reliance on any such forward-looking statements, which are made only as of the date hereof. The Company has no duty, and assumes no obligation, to update forward-looking statements as a result of new information, future events or changes in the Company’s expectations.
About Battalion
Battalion Oil Corporation is an independent energy company engaged in the acquisition, production, exploration and development of onshore oil and natural gas properties in the United States.
Contact
Matthew B. Steele
Chief Executive Officer & Principal Financial Officer
832-538-0300
BATTALION OIL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share amounts) Three Months Ended Years Ended December 31, December 31, 2023 2022 2023 2022 Operating revenues: Oil, natural gas and natural gas liquids sales: Oil $39,562 $60,816 $183,634 $267,690 Natural gas 2,429 6,914 11,057 46,210 Natural gas liquids 4,921 8,267 23,814 43,501 Total oil, natural gas and natural gas liquids sales 46,912 75,997 218,505 357,401 Other 330 805 2,257 1,663 Total operating revenues 47,242 76,802 220,762 359,064 Operating expenses: Production: Lease operating 10,656 12,397 44,864 48,095 Workover and other 2,480 1,876 7,149 6,683 Taxes other than income 2,266 2,547 11,943 18,483 Gathering and other 14,718 16,330 63,575 64,117 General and administrative 5,453 3,564 19,025 17,635 Depletion, depreciation and accretion 12,337 15,479 56,624 51,915 Total operating expenses 47,910 52,193 203,180 206,928 (Loss) income from operations (668) 24,609 17,582 152,136 Other income (expenses): Net gain (loss) on derivative contracts 42,430 (21,872) 12,689 (110,006)Interest expense and other (9,074) (10,389) (33,319) (23,591)Total other income expenses 33,356 (32,261) (20,630) (133,597)Income (loss) before income taxes 32,688 (7,652) (3,048) 18,539 Income tax benefit (provision) — — — — Net income (loss) $32,688 $(7,652) $(3,048) $18,539 Series A preferred dividends (5,695) — (12,047) — Net income (loss) available to common stockholders $26,993 $(7,652) $(15,095) $18,539 Net income (loss) per share of common stock: Basic $1.64 $(0.47) $(0.92) $1.14 Diluted $1.63 $(0.47) $(0.92) $1.12 Weighted average common shares outstanding: Basic 16,457 16,345 16,441 16,331 Diluted 16,517 16,345 16,441 16,510
BATTALION OIL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands, except share and per share amounts) December 31, 2023 December 31, 2022Current assets: Cash and cash equivalents $57,529 $32,726 Accounts receivable, net 23,021 37,974 Assets from derivative contracts 8,992 16,244 Restricted cash 90 90 Prepaids and other 907 1,131 Total current assets 90,539 88,165 Oil and natural gas properties (full cost method): Evaluated 755,482 713,585 Unevaluated 58,909 62,621 Gross oil and natural gas properties 814,391 776,206 Less – accumulated depletion (445,975) (390,796)Net oil and natural gas properties 368,416 385,410 Other operating property and equipment: Other operating property and equipment 4,640 4,434 Less – accumulated depreciation (1,817) (1,209)Net other operating property and equipment 2,823 3,225 Other noncurrent assets: Assets from derivative contracts 4,877 5,379 Operating lease right of use assets 1,027 352 Other assets 17,656 2,827 Total assets $485,338 $485,358 Current liabilities: Accounts payable and accrued liabilities $66,525 $100,095 Liabilities from derivative contracts 17,191 29,286 Current portion of long-term debt 50,106 35,067 Operating lease liabilities 594 352 Asset retirement obligations — 225 Total current liabilities 134,416 165,025 Long-term debt, net 140,276 182,676 Other noncurrent liabilities: Liabilities from derivative contracts 16,058 33,649 Asset retirement obligations 17,458 15,244 Operating lease liabilities 490 — Other 2,084 4,136 Commitments and contingencies Temporary equity: Series A redeemable convertible preferred stock: 98,000 shares of $0.0001 106,535 — par value authorized, issued and outstanding as of December 31, 2023 Stockholders’ equity: Common stock: 100,000,000 shares of $0.0001 par value authorized; 16,456,563 and 16,344,815 shares issued and outstanding as of December 31, 2023 and 2022, respectively 2 2 Additional paid-in capital 321,012 334,571 Accumulated deficit (252,993) (249,945)Total stockholders’ equity 68,021 84,628 Total liabilities and stockholders’ equity $485,338 $485,358
BATTALION OIL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands) Three Months Ended Years Ended December 31, December 31, 2023 2022 2023 2022Cash flows from operating activities: Net income (loss) $32,688 $(7,652) $(3,048) $18,539 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Depletion, depreciation and accretion 12,337 15,479 56,624 51,915 Stock-based compensation, net 161 670 (1,070) 2,210 Unrealized gain on derivative contracts (45,403) 3,655 (21,934) (20,256)Amortization/accretion of financing related costs 1,826 2,722 7,615 5,448 Reorganization items, net — — — (744)Accrued settlements on derivative contracts (2,587) (3,191) 259 4,302 Change in fair value of embedded derivative liability 530 1,224 (2,052) (1,819)Other expense (income) 214 51 358 (77)Cash flow from operations before changes in working capital (234) 12,958 36,752 59,518 Changes in working capital 6,758 12,029 (19,163) 19,283 Net cash provided by operating activities 6,524 24,987 17,589 78,801 Cash flows from investing activities: Oil and natural gas capital expenditures (16,196) (38,467) (46,288) (125,465)Proceeds received from sales of oil and natural gas assets 3,740 331 4,929 332 Other operating property and equipment capital expenditures (17) (211) (153) (1,160)Contract asset (3,705) — (10,308) — Other 1,439 (3) (25) 163 Net cash used in investing activities (14,739) (38,350) (51,845) (126,130) Cash flows from financing activities: Proceeds from borrowings — 15,078 – 35,200 Repayments of borrowings (10,027) (10) (35,093) (95)Payment of deferred financing costs — (2,508) — (2,887)Proceeds from issuance of preferred stock 33,182 — 94,607 – Other (1) 60 (455) (432)Net cash provided by financing activities 23,154 12,620 59,059 31,786 Net increase (decrease) in cash, cash equivalents and restricted cash 14,939 (743) 24,803 (15,543) Cash, cash equivalents and restricted cash at beginning of period 42,680 33,559 32,816 48,359 Cash, cash equivalents and restricted cash at end of period $57,619 $32,816 $57,619 $32,816
BATTALION OIL CORPORATION
SELECTED OPERATING DATA (Unaudited) Three Months Ended December 31, Years Ended December 31, 2023 2022 2023 2022 Production volumes: Crude oil (MBbls) 510 740 2,415 2,837 Natural gas (MMcf) 2,102 2,315 8,718 9,337 Natural gas liquids (MBbls) 246 318 1,163 1,242 Total (MBoe) 1,106 1,444 5,031 5,635 Average daily production (Boe/d) 12,022 15,696 13,784 15,438 Average prices: Crude oil (per Bbl) $77.57 $82.18 $76.04 $94.36 Natural gas (per Mcf) 1.16 2.99 1.27 4.95 Natural gas liquids (per Bbl) 20.00 26.00 20.48 35.02 Total per Boe 42.42 52.63 43.43 63.43 Cash effect of derivative contracts: Crude oil (per Bbl) $(10.43) $(24.73) $(7.76) $(40.82)Natural gas (per Mcf) 1.12 0.04 1.09 (1.55)Natural gas liquids (per Bbl) — — — — Total per Boe (2.69) (12.62) (1.84) (23.12) Average prices computed after cash effect of settlement of derivative contracts: Crude oil (per Bbl) $67.14 $57.45 $68.28 $53.54 Natural gas (per Mcf) 2.28 3.03 2.36 3.40 Natural gas liquids (per Bbl) 20.00 26.00 20.48 35.02 Total per Boe 39.73 40.01 41.59 40.31 Average cost per Boe: Production: Lease operating $9.63 $8.59 $8.92 $8.54 Workover and other 2.24 1.30 1.42 1.19 Taxes other than income 2.05 1.76 2.37 3.28 Gathering and other 13.31 11.31 12.64 11.38 General and administrative, as adjusted (1) 3.63 1.87 3.39 2.52 Depletion 10.80 10.49 10.97 9.05 (1) Represents general and administrative costs per Boe, adjusted for items noted in the reconciliation below: General and administrative: General and administrative, as reported $4.93 $2.46 $3.78 $3.13 Stock-based compensation: Non-cash (0.15) (0.46) 0.21 (0.39)Non-recurring (charges) credits and other: Cash (1.15) (0.13) (0.60) (0.22)General and administrative, as adjusted(2) $3.63 $1.87 $3.39 $2.52 Total operating costs, as reported $32.16 $25.42 $29.13 $27.52 Total adjusting items (1.30) (0.59) (0.39) (0.61)Total operating costs, as adjusted(3) $30.86 $24.83 $28.74 $26.91
___________________(2)General and administrative, as adjusted, is a non-GAAP measure that excludes non-cash stock-based compensation charges relating to equity awards under our incentive stock plan, as well as other cash charges associated with non-recurring charges and other. The Company believes that it is useful to understand the effects that these charges have on general and administrative expenses and total operating costs and that exclusion of such charges is useful for comparison to prior periods.(3)Represents lease operating expense, workover and other expense, taxes other than income, gathering and other expense and general and administrative costs per Boe, adjusted for items noted in the reconciliation above.
BATTALION OIL CORPORATION
RECONCILIATION (Unaudited)
(In thousands, except per share amounts) Three Months Ended Years Ended December 31, December 31, 2023 2022 2023 2022As Reported: Net income (loss) available to common stockholders – diluted (1) $26,993 $(7,652) $(15,095) $18,539 Impact of Selected Items: Unrealized (gain) loss on derivatives contracts: Crude oil $(38,604) $18,156 $(22,601) $(10,730)Natural gas (6,799) (14,501) 667 (9,526)Total mark-to-market non-cash charge (45,403) 3,655 (21,934) (20,256)Change in fair value of embedded derivative liability 529 1,224 (2,053) (1,819)Non-recurring charges (credits) 1,268 194 3,042 1,230 Selected items, before income taxes (43,606) 5,073 (20,945) (20,845)Income tax effect of selected items — — — — Selected items, net of tax $(43,606) $5,073 $(20,945) $(20,845) Net (loss) available to common stockholders, as adjusted (2) $(16,613) $(2,579) $(36,040) $(2,306) Diluted net income (loss) per common share, as reported $1.63 $(0.47) $(0.92) $1.12 Impact of selected items (2.64) 0.31 (1.27) (1.26)Diluted net (loss) per common share, excluding selected items (2)(3) $(1.01) $(0.16) $(2.19) $(0.14) Net cash provided by (used in) operating activities $6,524 $24,987 $17,589 $78,801 Changes in working capital (6,758) (12,029) 19,163 (19,283)Cash flow from operations before changes in working capital (234) 12,958 36,752 59,518 Cash components of selected items 4,707 11,989 3,301 6,276 Income tax effect of selected items — — — — Cash flows from operations before changes in working capital, adjusted for selected items (1) $4,473 $24,947 $40,053 $65,794
___________________(1)Amount reflects net (loss) income available to common stockholders on a diluted basis for earnings per share purposes as calculated using the two-class method of computing earnings per share which is further described in Note 14, Earnings Per Share in our Form 10-K for the year ended December 31, 2023.(2)Net (loss) income earnings per share excluding selected items and cash flows from operations before changes in working capital adjusted for selected items are non-GAAP measures presented based on management’s belief that they will enable a user of the financial information to understand the impact of these items on reported results. These financial measures are not measures of financial performance under GAAP and should not be considered as an alternative to net income, earnings per share and cash flows from operations, as defined by GAAP. These financial measures may not be comparable to similarly named non-GAAP financial measures that other companies may use and may not be useful in comparing the performance of those companies to Battalion’s performance.(3) The impact of selected items for the three and twelve months ended December 31, 2023 were calculated based upon weighted average diluted shares of 16.5 million and 16.4 million shares, respectively, due to the net (loss) income available to common stockholders, excluding selected items. The impact of selected items for the three and twelve months ended December 31, 2022 were calculated based upon weighted average diluted shares of 16.3 million shares, respectively, due to the net (loss) income available to common stockholders, excluding selected items.
BATTALION OIL CORPORATION
ADJUSTED EBITDA RECONCILIATION (Unaudited)
(In thousands) Three Months Ended December 31, Years Ended December 31, 2023 2022 2023 2022 Net income (loss), as reported $32,688 $(7,652) $(3,048) $18,539 Impact of adjusting items: Interest expense 8,917 9,378 36,511 25,725 Depletion, depreciation and accretion 12,337 15,479 56,624 51,915 Stock-based compensation 161 670 (1,070) 2,210 Interest income (525) (227) (1,243) (369)Loss (gain) on extinguishment of debt — — — — Unrealized loss (gain) on derivatives contracts (45,403) 3,655 (21,934) (20,256)Change in fair value of embedded derivative liability 529 1,224 (2,053) (1,819)Non-recurring charges (credits) and other 1,268 194 2,728 1,061 Adjusted EBITDA(1) $9,972 $22,721 $66,515 $77,006
___________________(1)Adjusted EBITDA is a non-GAAP measure, which is presented based on management’s belief that it will enable a user of the financial information to understand the impact of these items on reported results. This financial measure is not a measure of financial performance under GAAP and should not be considered as an alternative to GAAP measures, including net income (loss). This financial measure may not be comparable to similarly named non-GAAP financial measures that other companies may use and may not be useful in comparing the performance of those companies to Battalion’s performance.
BATTALION OIL CORPORATION
ADJUSTED EBITDA RECONCILIATION (Unaudited)
(In thousands) Three Months Three Months Three Months Three Months Ended Ended Ended Ended December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 Net income (loss), as reported $32,688 $(53,799) $(4,748) $22,811 Impact of adjusting items: Interest expense 8,917 9,219 9,366 9,009 Depletion, depreciation and accretion 12,337 13,426 14,713 16,148 Stock-based compensation 161 (686) (772) 227 Interest income (525) (293) (234) (191)Unrealized loss (gain) on derivatives contracts (45,403) 46,805 (2,332) (21,004)Change in fair value of embedded derivative liability 529 (1,878) 358 (1,062)Non-recurring charges (credits) and other 1,268 831 477 152 Adjusted EBITDA(1) $9,972 $13,625 $16,828 $26,090 Adjusted LTM EBITDA(1) $66,515
___________________(1)Adjusted EBITDA is a non-GAAP measure, which is presented based on management’s belief that it will enable a user of the financial information to understand the impact of these items on reported results. This financial measure is not a measure of financial performance under GAAP and should not be considered as an alternative to GAAP measures, including net income (loss). This financial measure may not be comparable to similarly named non-GAAP financial measures that other companies may use and may not be useful in comparing the performance of those companies to Battalion’s performance.
BATTALION OIL CORPORATION
ADJUSTED EBITDA RECONCILIATION (Unaudited)
(In thousands) Three Months Three Months Three Months Three Months Ended Ended Ended Ended December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 Net income (loss), as reported $(7,652) $105,888 $13,047 $(92,744)Impact of adjusting items: Interest expense 9,378 6,232 5,394 4,721 Depletion, depreciation and accretion 15,479 13,615 12,601 10,220 Stock-based compensation 670 683 473 384 Interest income (227) (141) (1) — Unrealized loss (gain) on derivatives contracts 3,655 (102,112) (12,837) 91,038 Change in fair value of embedded derivative liability 1,224 (449) (562) (2,032)Non-recurring charges (credits) and other 194 597 53 217 Adjusted EBITDA(1) $22,721 $24,313 $18,168 $11,804 Adjusted LTM EBITDA(1) $77,006
___________________(1)Adjusted EBITDA is a non-GAAP measure, which is presented based on management’s belief that it will enable a user of the financial information to understand the impact of these items on reported results. This financial measure is not a measure of financial performance under GAAP and should not be considered as an alternative to GAAP measures, including net income (loss). This financial measure may not be comparable to similarly named non-GAAP financial measures that other companies may use and may not be useful in comparing the performance of those companies to Battalion’s performance.
