Battalion Oil Corporation (BATL) AI Stock Analysis
BATL AI stock analysis summary
AI ResearchBattalion Oil Corporation is an independent oil and natural gas exploration and production company operating primarily in the Delaware Basin. Across multiple years, revenue declined from $359.1M in FY2022 to $165.0M in FY2025, alongside negative free cash flow of -$35.5M in FY2025. Over the trailing twelve months ended June 30, 2026, the company posted a net profit margin of -24.5% and a market capitalization of $60.1M.
- Market cap
- $60.1M
- Revenue (TTM)
- $163.1M
- P/E
- — fwd 2.0x
- 1Y return
- -5.4% S&P 500 16.8%
- Avg. target
- $18.60 1671.4% vs last close
Bull case
- Quarterly revenue grew 12.4% year-over-year in the quarter ended June 30, 2026, alongside 712.7% quarterly earnings growth.
- The forward P/E multiple is 2.0x, compared to the US-listed Energy peer median of 12.7x.
- Cash and short-term investments totaled $83.1M as of June 30, 2026, supporting a current ratio of 2.19.
Bear case
- Annual revenue has dropped from $359.1M in FY2022 to $165.0M in FY2025.
- Free cash flow remained negative in each of the past four fiscal years, ending at -$35.5M in FY2025.
- Trailing twelve-month net profit margin was -24.5%, with EPS at -$3.92.
What Battalion Oil does
Battalion Oil Corporation, headquartered in Houston, Texas, is an independent energy company focused on acquiring, producing, exploring, and developing onshore oil and natural gas resources in the United States. Founded in 1987 and formerly known as Halcón Resources Corporation, it rebranded to Battalion Oil Corporation in January 2020. The company focuses operations primarily in the Delaware Basin, maintaining interests in approximately 40,400 net acres across Pecos, Reeves, Ward, and Winkler counties in Texas. As of December 31, 2021, its estimated proved reserves were 95.9 million barrels of oil equivalent, comprising 58.7 million barrels of crude oil, 16.3 million barrels of natural gas liquids, and 125.0 billion cubic feet of natural gas.
Growth and profitability
Revenue contracted over three consecutive years, falling from $359.1M in FY2022 to $220.8M in FY2023, $193.9M in FY2024, and $165.0M in FY2025. Gross margin shrank from 65.1% in FY2022 to 10.8% in FY2025, while operating margin fell to -4.0% in FY2025. Net income stood at $11.9M in FY2025, though diluted EPS was -$4.25. Over the trailing twelve months, revenue reached $163.1M with a net profit margin of -24.5% and EPS of -$3.92. In the latest quarter ended June 30, 2026, quarterly revenue increased 12.4% year-over-year, and quarterly earnings grew 712.7%.
Balance sheet and cash flow
As of June 30, 2026, Battalion Oil held $83.1M in cash and short-term investments against total debt of $158.9M, leaving net debt at $75.8M. Total assets were $432.6M, shareholders' equity stood at $203.1M, and the current ratio was 2.19 with a debt-to-equity ratio of 0.78. In FY2025, operating cash flow generated $39.1M, but capital expenditures of $74.6M resulted in free cash flow of -$35.5M. The company also recorded $48.7M in dividends paid in FY2025, while its share count expanded 174.6% over five years.
Valuation and performance
Battalion Oil trades at a forward P/E of 2.0x, below the 12.7x median for its US-listed Energy peers. Its price-to-sales multiple is 0.4x compared to the peer median of 1.8x, while its EV-to-EBITDA ratio of 11.0x sits above the peer median of 8.0x. Over the past year, the stock fell 5.4%, compared to a 16.8% gain for the S&P 500 (SPY). Over a 5-year span, the stock fell 89.4% while the S&P 500 returned 83.0%.
What analysts expect
Analysts maintain a mean price target of $18.60 for Battalion Oil Corporation, which compares to its last close of $1.05 on October 16, 2026, representing upside of 1671.4%. Over the last four quarters, the company beat EPS estimates 1 time. The next scheduled earnings report date is November 12, 2026.
Key risks and what to watch
- Share count increased 174.6% over a 5-year span, resulting in significant equity dilution.
- Total debt reached $158.9M as of June 30, 2026, compared to a market capitalization of $60.1M.
- Gross margin compressed from 65.1% in FY2022 to 10.8% in FY2025.
- The stock is trading 68.7% below its 200-day moving average and near its 52-week low of $1.00.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this BATL AI stock analysis
This page is an AI-written research summary of Battalion Oil Corporation (BATL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: BATL income statement, BATL balance sheet, BATL key metrics, BATL chart. See the BATL stock overview for the latest quote and news.
BATL AI stock analysis FAQ
What are Battalion Oil's primary assets?
Battalion Oil focuses on the Delaware Basin in Texas, where it holds interests in approximately 40,400 net acres across Pecos, Reeves, Ward, and Winkler counties. As of December 31, 2021, its proved reserves were estimated at 95.9 million barrels of oil equivalent.
What was Battalion Oil's revenue trend in recent fiscal years?
Revenue peaked at $359.1M in FY2022, before falling 38.5% in FY2023 to $220.8M, 12.2% in FY2024 to $193.9M, and 14.9% in FY2025 to $165.0M.
What is Battalion Oil's debt level?
As of June 30, 2026, Battalion Oil reported total debt of $158.9M and cash and short-term investments of $83.1M, yielding net debt of $75.8M and a debt-to-equity ratio of 0.78.
What is the consensus analyst target for BATL stock?
The mean analyst price target is $18.60, which is 1671.4% above the October 16, 2026 closing price of $1.05.