Free cash flow remains structurally challenged, evidenced by negative FCF margins frequently exceeding 50% and a disconnect between net income and operating cash flow, such as the -282.82 OCF/NI ratio observed in 2024Q2.
Battalion Oil Corporation (BATL) cash flow statement — 23-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'02 |
|---|
| Cash from Operations | 25.97M | 39.09M | 35.35M | 17.59M | 78.8M | 68.57M | 50.2M | -26.08M | 67.16M | 114.59M | 278.48M | 467M | 667.93M | 493.92M | 118.17M | 29.84M | 37.88M | 32.37M | 74.45M | 17.04M | 29.66M | -419.69K | -203.28K | 0 |
| Operating CF Margin % | - | 23.7% | 18.23% | 7.97% | 21.95% | 24.04% | 33.85% | -11.61% | 29.63% | 30.32% | 66.61% | 84.87% | 58.17% | 49.42% | 47.66% | 29.08% | 34.08% | 37.18% | 40.75% | 20.81% | 43.61% | - | -1.13% | - |
| Operating CF Growth % | 266.87% | 10.56% | 101.01% | -77.68% | 14.92% | 36.61% | 292.5% | -138.83% | -41.4% | -58.85% | -40.37% | -30.08% | 35.23% | 317.96% | 296.09% | -21.23% | 17% | -56.52% | 336.89% | -42.54% | 7167.21% | -106.46% | - | - |
| Net Income | -39.91M | 11.88M | -31.88M | -3.05M | 18.54M | -28.32M | -229.71M | -1.17B | 45.96M | 535.69M | -503.93M | -1.92B | 315.96M | -1.22B | -53.88M | -1.4M | 2.42M | -58.38M | -138.07M | -1.25M | 5.05M | 351K | 64.53K | 2.09M |
| Depreciation & Amortization | 50.55M | 52.14M | 52.93M | 56.62M | 51.91M | 45.41M | 62.05M | 110.91M | 77.53M | 110.21M | 167.45M | 9.87M | 7.09M | 463.65M | 6.21M | 21.34M | 27.23M | 31.65M | 47.95M | 19.89M | 14.24M | 3.5K | 1.42K | 2.95M |
| Stock-Based Compensation | 421K | 0 | 152K | 0 | 2.21M | 2.01M | 2.58M | 0 | 15.27M | 36.76M | 26.39M | 14.53M | 18.73M | 17.11M | 4.57M | 3.58M | 3.11M | 2.18M | 2.56M | 989K | 2.31M | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -95.79M | 95.79M | -484.33M | -14.53M | 2.31B | 268.4M | -159.24M | -13.06M | 6.55M | 577K | -16.86M | -97.02M | -9.16M | 1.31M | 0 | 0 | 0 |
| Other Non-Cash Items | 37.55M | -28.38M | 19.95M | -16.82M | -13.15M | 52.62M | 215.03M | 1.15B | -195.96M | -105.52M | 925.05M | 18.8M | 4.66M | 1.46B | 111.05M | 2.94M | 4.59M | 85.09M | 264.94M | 13.19M | -4.79M | -904.58K | -208.6K | -5.03M |
| Working Capital Changes | -22.64M | 3.44M | -5.79M | -19.16M | 19.28M | -3.15M | 238K | -27.52M | 28.57M | 21.79M | 10.67M | 37.1M | 53.09M | -63.88M | 63.29M | -3.17M | -45K | -11.3M | -5.91M | -6.62M | 11.54M | 130.39K | -60.62K | 0 |
| Change in Receivables | 7.9M | 14.46M | -2.77M | 15.66M | 594K | -4.65M | 13.51M | -6.79M | 378K | 103.17M | 27.46M | 86.41M | 85.77M | -96.22M | -93.12M | 295K | 3.7M | -650K | 4.17M | -2.77M | 1.01M | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -22.35M | -325.14M | -294.73M | -592K | 455K | -504K | 1.19M | -3.14M | -4.09M | 14.37M | -24.25M | -90K | 8.83M | 0 | 0 | 0 |
| Change in Payables | -11.59M | -11.11M | 0 | -35.02M | 18.45M | 865K | -17.99M | -16.91M | 22.35M | -77.69M | -13.32M | -53.03M | -40.15M | 41.58M | 155.96M | -5.22M | 543K | -10.64M | 14.61M | -3.63M | 4.17M | 0 | 0 | 0 |
| Cash from Investing | 30.75M | -74.95M | -65.44M | -51.84M | -126.13M | -51.91M | -72.35M | -297.21M | -706.49M | 598.59M | -290.82M | -667.13M | -1.27B | -2.1B | -2.87B | -25.38M | 14.97M | -23.92M | -82.57M | -241.19M | -25.32M | -123.66K | -33.15M | -46K |
| Capital Expenditures | 48.12M | -74.57M | -47K | -46.44M | -126.63M | -52.93M | -101.89M | -298.89M | -926.54M | -1.43B | -290.18M | -670.26M | -1.57B | -2.52B | -1.26B | -25.89M | -34.4M | -30.48M | -86M | -41.49M | -28.96M | -5.9K | -7.98K | 0 |
| CapEx % of Revenue | 29.55% | 45.2% | 0.02% | 21.04% | 35.27% | 18.56% | 68.71% | 133.02% | 408.87% | 377.96% | 69.41% | 121.8% | 136.5% | 252.1% | 506.4% | 25.23% | 30.95% | 35% | 47.07% | 50.68% | 42.57% | - | 0.04% | - |
| Acquisitions | 0 | 0 | 0 | 4.93M | 332K | 947K | 29.03M | 1.25M | 219.9M | 2.03B | 888K | 1.22M | 0 | -32.71M | -1.63B | 0 | 0 | 0 | 35K | -199.73M | -386K | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -17.37M | -380K | -65.4M | -10.33M | 163K | 68K | 510K | 427K | 220.05M | 2.03B | -1.52M | 3.13M | 296.33M | 451.75M | 21M | 510K | 49.37M | 6.55M | 3.4M | 29K | 4.03M | -117.6K | 0 | -46K |
| Cash from Financing | -13.04M | 44.11M | -7.73M | 59.06M | 31.79M | 27.41M | 16.18M | 286.69M | 262.13M | -289.14M | 4.33M | 164.45M | 644.04M | 1.61B | 2.75B | -4.45M | -52.94M | -8.49M | 1.41M | 224.3M | 2.31M | 0 | 34.19M | 0 |
| Debt Issued (Net) | -56.97M | 46.03M | -38.11M | -35.09M | 35.1M | 27.7M | 16.21M | 133.76M | 206M | -675.28M | 112.38M | 190.2M | 557M | 1.08B | 1.81B | 4.55M | -52.15M | -6.13M | -85.05M | 198.59M | 19.35M | 0 | 0 | 0 |
| Equity Issued (Net) | 43.93M | 0 | 38.78M | 94.61M | 0 | -290K | -32K | 152.93M | 0 | 0 | -511K | 15.36M | 110.05M | 567.87M | 966.86M | -183K | -787K | -28K | -82K | 27.2M | -13.56M | 0 | 34.19M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -8.18M | -8.18M | -8.48M | -9.09M | -88.44M | 0 | 0 | 0 | 0 | 0 | -500K | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.14M | -183K | -787K | -28K | -82K | -177K | -13.56M | 0 | 0 | 0 |
| Other Financing | 0 | -1.92M | -8.4M | -455K | -3.32M | 0 | 0 | -4K | 56.13M | 386.14M | -107.53M | -32.93M | -18.05M | -32.27M | -27.91M | -8.81M | 0 | -2.32M | 86.54M | -1.48M | -2.98M | 0 | 100 | 0 |
| Net Change in Cash | 43.51M | 8.25M | -37.82M | 24.81M | -15.54M | 42.71M | -8.24M | -32.59M | -377.2M | 424.05M | -7.82M | -35.69M | 40.88M | 328K | 2.46M | 12K | -92K | -35K | -6.71M | 152K | 6.65M | -543.34K | 34.19M | -46K |
| Free Cash Flow | 66.28M | -35.48M | -29.34M | -28.85M | -47.82M | 15.64M | -51.7M | -324.96M | -859.38M | -1.31B | -11.7M | -203.26M | -899.49M | -2.03B | -1.14B | 3.95M | 3.48M | 1.9M | -11.54M | -24.45M | 703K | -425.58K | -211.25K | 0 |
| FCF Margin % | 40.7% | -21.51% | -15.13% | -13.07% | -13.32% | 5.49% | -34.86% | -144.63% | -379.24% | -347.64% | -2.8% | -36.94% | -78.33% | -202.68% | -458.74% | 3.85% | 3.13% | 2.18% | -6.32% | -29.87% | 1.03% | - | -1.18% | - |
| FCF Growth % | 237.11% | -20.93% | -1.69% | 39.67% | -405.7% | 130.26% | 84.09% | 62.19% | 34.6% | -11131.42% | 94.24% | 77.4% | 55.6% | -78.11% | -28902.56% | 13.64% | 83.18% | 116.43% | 52.79% | -3578.38% | 265.19% | -101.46% | - | - |
| FCF per Share | 1.47 | -2.16 | -1.78 | -1.75 | -2.90 | 0.96 | -3.19 | -26.37 | -54.64 | -98.37 | -1.26 | -18.90 | -16.58 | -5.34 | -12339.36 | 0.50 | 1.33 | 0.24 | -1.63 | -5.93 | 0.27 | -0.16 | -0.07 | - |
| FCF Conversion (FCF/Net Income) | -1.66x | 3.29x | -1.11x | -5.77x | 4.25x | -2.42x | -0.22x | 0.02x | 1.46x | 0.21x | -0.60x | -0.24x | 2.11x | -0.40x | -2.19x | -21.27x | 15.67x | -0.55x | -0.54x | -13.63x | 5.88x | -0.77x | -0.03x | - |
| Interest Paid | 0 | 0 | 22.32M | 0 | 0 | 0 | 0 | 0 | 37.53M | 90.83M | 0 | 0 | -132.56M | 25.46M | 11.71M | -554K | 380K | 13.43M | 25.81M | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5M | 1.25M | 0 | 0 | 8.6M | 9.01M | 89K | -15.33M | 17.99M | 303K | 682K | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying BATL stock.
Battalion Oil Corporation (BATL) generated $39.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Battalion Oil Corporation (BATL) reported negative free cash flow of $35.5M in 2025, indicating capital requirements exceeded cash from operations.
Battalion Oil Corporation (BATL) spent $74.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Liquidity and operational scale
Metrics are mathematically derived from official filings.
Earnings and Cash Flow Disconnect
As reported in quarterly financial statements, Battalion Oil exhibits a profound lack of correlation between net income and operating cash flow, with OCF/NI ratios frequently reaching extreme, non-meaningful levels, such as the -282.82 observed in 2024Q2, suggesting that accruals and non-cash adjustments dominate the reported bottom line.
The persistent divergence between net income and operating cash flow indicates that the company's reported earnings are heavily influenced by non-cash items rather than actual cash generation. Investors should monitor this volatility as it suggests that the core business is not yet producing the reliable cash flow necessary to support its capital-intensive operations.
Free Cash Flow Sustainability Challenges
Based on the provided cash flow data, Battalion Oil's free cash flow trajectory remains highly erratic, with negative FCF margins frequently exceeding 50% in recent periods, indicating that the company is consistently unable to fund its capital expenditures through internally generated cash from its core upstream operations.
The inability to maintain positive free cash flow suggests that the company is structurally dependent on external financing or asset divestitures to sustain its drilling program. This pattern warrants further investigation into whether the current production decline is being exacerbated by a lack of sufficient reinvestment capital.
Capital Intensity Outpacing Revenue Generation
According to recent SEC filings, Battalion Oil's capital intensity is notably high, with CapEx/Revenue ratios reaching as high as 122.4% in 2025Q3, which implies that the company is spending more on development than it is currently realizing from its total production revenue in those specific periods.
This level of capital intensity suggests that the company is struggling to achieve an efficient return on its drilling investments. The high cost of maintaining sour gas infrastructure likely forces a higher maintenance CapEx burden, which limits the capital available for growth-oriented drilling projects.
Working Capital Volatility Impairs Liquidity
As evidenced by the quarterly cash flow statements, Battalion Oil experiences significant swings in working capital, including a $15.6 million outflow in 2025Q4, which suggests that the company's cash position is highly sensitive to the timing of collections and the management of its operational payables.
The erratic nature of these working capital changes may indicate difficulties in managing the cash conversion cycle within the volatile Permian Basin environment. Investors should monitor these fluctuations as they appear to exacerbate the company's existing liquidity constraints during periods of lower commodity price realizations.