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BATL Stock Analysis - BATTALION OIL CORP AI Rating

BATL NYSE Crude Petroleum & Natural Gas DE CIK: 0001282648
Recently Updated • Analysis: Mar 20, 2026 • SEC Data: 2025-09-30
AI Rating
SELL
75% Confidence

📊 BATL Key Takeaways

Revenue: $133.8M
Net Margin: 7.5%
Free Cash Flow: $46.6M
Current Ratio: 0.96x
Debt/Equity: N/A
EPS: $-1.48
AI Rating: SELL with 75% confidence

Investment Thesis

Battalion Oil demonstrates weak operational efficiency with razor-thin operating margins (3.0%) and concerning solvency issues including negative stockholders' equity of -$20.2M, indicating liabilities exceed assets. While the company generates strong free cash flow ($46.6M, 34.8% FCF margin), this appears to be capital preservation rather than growth, and the critically low interest coverage ratio (0.2x) suggests severe debt servicing stress that threatens financial viability.

BATL Strengths

  • + Strong free cash flow generation at $46.6M with healthy 34.8% FCF margin relative to revenue
  • + Positive net income of $10.1M and operating cash flow of $50.9M demonstrate cash generation capability
  • + Adequate liquidity with $50.5M cash position to manage near-term obligations

BATL Risks

  • ! Negative stockholders' equity of -$20.2M indicates technical insolvency with liabilities exceeding total assets
  • ! Critical interest coverage ratio of 0.2x suggests company cannot adequately service $213.8M long-term debt from operating income
  • ! Weak operating margin of 3.0% and stagnant revenue growth (0.4% YoY) indicate limited pricing power and operational leverage in commodity business
  • ! Current ratio of 0.96x shows insufficient liquid assets to cover near-term liabilities, creating liquidity stress

Key Metrics to Watch

BATL Financial Metrics

Revenue
$133.8M
Net Income
$10.1M
EPS (Diluted)
$-1.48
Free Cash Flow
$46.6M
Total Assets
$491.7M
Cash Position
$50.5M

💡 AI Analyst Insight

The 34.8% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.

BATL Profitability Ratios

Gross Margin N/A
Operating Margin 3.0%
Net Margin 7.5%
ROE N/A
ROA 2.1%
FCF Margin 34.8%

BATL vs Energy Sector

How BATTALION OIL CORP compares to Energy sector averages

Net Margin
BATL 7.5%
vs
Sector Avg 12.0%
BATL Sector
ROE
BATL 0.0%
vs
Sector Avg 14.0%
BATL Sector
Current Ratio
BATL 1.0x
vs
Sector Avg 1.3x
BATL Sector
Debt/Equity
BATL 0.0x
vs
Sector Avg 0.6x
BATL Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

BATL Balance Sheet & Liquidity

Current Ratio
0.96x
Quick Ratio
0.94x
Debt/Equity
N/A
Debt/Assets
0.0%
Interest Coverage
0.19x
Long-term Debt
$213.8M

BATL 5-Year Financial Trend

BATL 5-year financial data: Year 2019: Revenue $375.8M, Net Income $535.7M, EPS $3.65. Year 2020: Revenue $284.2M, Net Income $46.0M, EPS $0.29. Year 2022: Revenue $357.4M, Net Income -$28.3M, EPS $-1.74. Year 2023: Revenue $357.4M, Net Income $18.5M, EPS $1.12. Year 2024: Revenue $218.5M, Net Income -$3.0M, EPS $-0.92.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: BATTALION OIL CORP's revenue has declined by 42% over the 5-year period, indicating business contraction. The most recent EPS of $-0.92 indicates the company is currently unprofitable.

BATL Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
34.8%
Free cash flow / Revenue

BATL Quarterly Performance

Quarterly financial performance data for BATTALION OIL CORP including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $43.4M -$105.0K $0.34
Q2 2025 $42.6M -$105.0K $-0.21
Q1 2025 $47.4M -$105.0K $-0.35
Q3 2024 $45.1M -$105.0K $0.34
Q2 2024 $49.1M -$105.0K $-0.35
Q1 2024 $49.5M -$4.7M $1.28
Q3 2023 $53.4M -$4.7M $1.59
Q2 2023 $53.9M -$4.7M $-0.35

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

BATL Capital Allocation

Operating Cash Flow
$50.9M
Cash generated from operations
Stock Buybacks
$2.1M
Shares repurchased (TTM)
Capital Expenditures
$4.3M
Investment in assets
Dividends
None
No dividend program

BATL SEC Filings

Access official SEC EDGAR filings for BATTALION OIL CORP (CIK: 0001282648)

📋 Recent SEC Filings

Date Form Document Action
Mar 19, 2026 8-K batl-20260319x8k.htm View →
Mar 13, 2026 8-K batl-20260310x8k.htm View →
Mar 9, 2026 8-K batl-20260303x8k.htm View →
Feb 25, 2026 8-K batl-20260224x8k.htm View →
Jan 23, 2026 8-K batl-20260119x8k.htm View →

Frequently Asked Questions about BATL

What is the AI rating for BATL?

BATTALION OIL CORP (BATL) has an AI rating of SELL with 75% confidence, based on fundamental analysis of SEC EDGAR filings.

What are BATL's key strengths?

Strong free cash flow generation at $46.6M with healthy 34.8% FCF margin relative to revenue. Positive net income of $10.1M and operating cash flow of $50.9M demonstrate cash generation capability.

What are the risks of investing in BATL?

Negative stockholders' equity of -$20.2M indicates technical insolvency with liabilities exceeding total assets. Critical interest coverage ratio of 0.2x suggests company cannot adequately service $213.8M long-term debt from operating income.

What is BATL's revenue and growth?

BATTALION OIL CORP reported revenue of $133.8M.

Does BATL pay dividends?

BATTALION OIL CORP does not currently pay dividends.

Where can I find BATL SEC filings?

Official SEC filings for BATTALION OIL CORP (CIK: 0001282648) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is BATL's EPS?

BATTALION OIL CORP has a diluted EPS of $-1.48.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 20, 2026 | Data as of: 2025-09-30 | Powered by Claude AI