Battalion Oil Corporation operates as an independent energy company.
The company focuses on the acquisition, production, exploration and development of onshore liquids-rich oil and natural gas assets in the United States. The company's properties and drilling activities are focused in the Delaware Basin, where it has an extensive drilling inventory that offers attractive long-term economics.
The company's working interests in 39,867 net acres in the Delaware Basin as of December 31, 2023 are i...
Battalion Oil Corporation operates as an independent energy company.
The company focuses on the acquisition, production, exploration and development of onshore liquids-rich oil and natural gas assets in the United States. The company's properties and drilling activities are focused in the Delaware Basin, where it has an extensive drilling inventory that offers attractive long-term economics.
The company's working interests in 39,867 net acres in the Delaware Basin as of December 31, 2023 are in Pecos, Reeves, Ward and Winkler Counties, Texas. This resource play is characterized by high oil and liquids-rich natural gas content in thick, continuous sections of source rock that can provide repeatable drilling opportunities and significant initial production rates. The company's primary targets in this area are the Wolfcamp and Bone Spring formations.
As of December 31, 2023, the company's estimated total proved oil and natural gas reserves were approximately 68.1 one million Boe (MMBoe), consisting of 34.6 one million barrels of crude oil or other liquid hydrocarbons (MMBbls) of oil, 14.9 MMBbls of natural gas liquids (NGLs) and 111.7 one billion cubic feet of natural gas (Bcf) of natural gas, as prepared by the company's independent reserve engineering firm, Netherland, Sewell & Associates, Inc. (NSAI).
The company's principal properties consist of leasehold interests in developed and undeveloped oil and natural gas properties and the reserves associated with these properties.
Business Strategy
The company's business strategies are to develop its liquids-rich acreage positions to grow production and reserves efficiently; enhance returns through continued improvements; and attain growth through strategic business combinations.
Markets and Major Customers
The purchasers of the company's oil and natural gas production consist primarily of independent marketers, major oil and natural gas companies and gas pipeline companies. In 2023, two individual purchasers of the company's production, Western Refining Company L.P. and Sunoco Inc., each accounted for more than 10% of total sales, collectively representing 79% of the company's total sales for the year.
Seasonality of Business
Demand for natural gas is typically higher during the winter, resulting in higher natural gas prices for the company's natural gas production during its first and fourth fiscal quarters (year ended December 2023).
Environmental Regulations
The company's operations are subject to stringent federal, state and local laws regulating the discharge of materials into the environment or otherwise relating to health and safety or the protection of the environment. Numerous governmental agencies, such as the United States Environmental Protection Agency (the EPA), issue regulations to implement and enforce these laws, which often require difficult and costly compliance measures.
Under federal Comprehensive Environmental Response, Compensation and Liability Act (CERCLA); the Resource Conservation and Recovery Act of 1976 (RCRA); and analogous state laws, the company has been and may be required to remove or remediate such materials.
In addition, the Department of the Interior promulgated regulations concerning the use of hydraulic fracturing on lands under its jurisdiction, which includes lands on which the company conducts or plans to conduct operations.
All of the company's exploration and production activities, as well as proposed exploration and development plans, on federal lands require governmental permits that are subject to the requirements of the National Environmental Policy Act (NEPA).
The company is subject to the requirements of the federal Occupational Safety and Health Act and comparable state statutes that regulate the protection of the health and safety of workers. In addition, the Occupational Safety and Health Administration's hazard communication standard requires that information be maintained about hazardous materials used or produced in operations and that this information be provided to employees.
History
The company was founded in 1987. It was formerly known as Halcón Resources Corporation and changed its name to Battalion Oil Corporation in 2020.