Executive Summary

Q4 2024 delivered higher revenue year over year and sequentially as production rose and AGI-driven treating savings flowed through, but GAAP results were pressured by a $18.5M impairment, debt extinguishment costs, and elevated G&A tied to the terminated Fury merger, resulting in a net loss of $30.9M and diluted EPS of $(1.88) .
Adjusted EBITDA improved to $18.0M, up from $10.0M in Q4 2023, reflecting stronger volumes, lower gathering/treating expense from AGI, and pad performance ahead of type curves .
Liquidity strengthened post quarter via a refinancing and $63.0M incremental term loan in January 2025, extending maturity to December 26, 2028 and adding $61.3M net liquidity; scheduled amortization totals $16.9M in 2025 and $22.5M in 2026 .
Operational narrative remains constructive: capex per lateral foot under $950, Monument Draw wells ahead of plan, and AGI processed 1.8 Bcf in Q4, returning ~16 MMcf/d of sweet gas for sale, supporting cost reductions .

What Went Well and What Went Wrong

AGI impact: Gathering and other expense fell to $10.45/Boe in Q4 2024 from $13.31/Boe YoY as AGI treated ~20 MMcf/d and returned ~16 MMcf/d of sweet gas, improving netbacks (“AGI facility treated 1.8 Bcf… returned approximately 16 MMcf/d of sweet gas”) .
Well performance and capital efficiency: “Final well capital remains under $950 per lateral foot” and newest pad averaging >811 Boe/d over initial 120 days, with pads producing ahead of type curve, under budget and ahead of plan .
Adjusted EBITDA growth: Adjusted EBITDA was $18.0M in Q4 2024 vs. $10.0M in Q4 2023, showing strengthening cash earnings despite macro and non-recurring items .

Non-GAAP and one-time headwinds: Q4 recognized a $18.5M impairment of a contract asset and $7.5M loss on extinguishment of debt tied to refinancing, pressuring GAAP EPS and net income .
Merger-related costs: G&A increased to $6.04/Boe (as reported) due to audit, legal and transaction costs from the now-terminated Fury merger; adjusted G&A would have been $3.22/Boe .
Gas price environment: Realized natural gas price was $0.24/Mcf in Q4 2024 versus $1.16/Mcf YoY, partially offset by AGI returns; overall net income margin was negative due to the above items .

Metric	Q4 2023	Q3 2024	Q4 2024
Revenue ($USD Millions)	$47.242	$45.266	$49.653
Net Income ($USD Millions)	$32.688	$21.628	$(22.202)
Diluted EPS ($USD)	$1.63	$0.34	$(1.88)
Adjusted EBITDA ($USD Millions)	$9.972	$13.458	$18.019
Net Income Margin (%)	69.2%	47.8%	-44.7%
Adjusted EBITDA Margin (%)	21.1%	29.7%	36.3%

KPIs and operating metrics:

KPI	Q4 2023	Q3 2024	Q4 2024
Average Daily Production (Boe/d)	12,022	12,076	12,750
% Oil	46%	52%	55%
Total Production (MBoe)	1,106	1,111	1,173
LOE per Boe ($)	$9.63	$10.44	$9.45
Gathering & Other per Boe ($)	$13.31	$11.20	$10.45
G&A per Boe (as reported) ($)	$4.93	$3.46	$6.04
G&A per Boe (adjusted) ($)	$3.63	$2.58	$3.21
AGI: Bcf treated (quarter)	N/A	1.7 Bcf	1.8 Bcf

Note: Segment breakdown not provided; the company reports consolidated results .

Metric	Period	Previous Guidance	Current Guidance	Change
Debt amortization payments	FY 2025	Not previously disclosed	$16.9M scheduled	New detail
Debt amortization payments	FY 2026	Not previously disclosed	$22.5M scheduled	New detail
Term loan maturity	N/A	Prior facility	New maturity Dec 26, 2028	Extended
Operational activity plan	2025	Six-well plan (implied)	Six-well plan underway; 4 drilled, completions begun, under budget	Maintained/Executing

No formal quantitative guidance for revenue, EPS, margins, or production was provided in the Q4 2024 materials .

No Q4 2024 earnings call transcript was available in the document set; themes below reflect management commentary from press releases.

Topic	Previous Mentions (Q2 & Q3 2024)	Current Period (Q4 2024)	Trend
AGI cost savings	Treated 1.82 Bcf (Q2); ~18 MMcf/d avg; ramp to full inlet capacity; expected savings up to $2M/month	Treated ~20 MMcf/d avg; 1.8 Bcf for Q4; returned ~16 MMcf/d sweet gas; cumulative >6.9 Bcf processed	Strengthening utilization/savings
Capital efficiency	Monument Draw wells below $950/ft; pads with IPs >2,000 Boe/d (Q2)	“Final well capital remains under $950 per lateral foot”; pads ahead of type curve	Maintained cost discipline
Monument Draw execution	Vermejo pad completed/flowback (Q3)	2025 six-well plan underway; four wells drilled; completions started; ahead of plan	Accelerating activity
M&A/Strategic	Fury offer amended to $7.00/share (Q3)	Merger terminated; special meeting canceled (Dec 20, 2024)	Strategic reset
Balance sheet/liquidity	Preferred raise; debt reduction (Q2)	Refinanced term loan; $63M incremental TL in Jan 2025; +$61.3M net liquidity	Improved liquidity/maturity profile

“Final well capital remains under $950 per lateral foot. The completed pad wells are producing ahead of type curve…” .
“During the fourth quarter 2024, the acid gas injection (‘AGI’) facility treated approximately 20 MMcf/d average and returned approximately 16 MMcf/d of sweet gas…” .
On refinancing: initial $162.0M term loan Dec 26, 2024 and $63.0M incremental Jan 9, 2025; maturity Dec 26, 2028; proceeds used to repay ~$152.1M of prior debt .

No Q4 2024 earnings call transcript was found; therefore, Q&A themes and any guidance clarifications are unavailable in the provided documents set.

Wall Street consensus (S&P Global) for Q4 2024 EPS and # of estimates was unavailable; no EPS or count returned. Revenue consensus and counts were unavailable; thus, no formal beat/miss versus consensus can be determined. Values retrieved from S&P Global.*

Cost structure improving: AGI materially reduces treating costs, with gathering/treating down to $10.45/Boe and LOE at $9.45/Boe; continued ramp should support margins even in weak gas pricing environments .
Execution credibility: Pads ahead of type curve and capital under $950/ft indicate disciplined development and potential uplift in capital efficiency-driven returns .
Non-recurring headwinds masked underlying improvement: Adjusted EBITDA rose to $18.0M despite impairment and debt extinguishment costs; monitoring normalization post-refi should be central to near-term thesis .
Balance sheet extended and liquidity up: New term loan maturity to 2028 and $61.3M net liquidity addition reduce near-term refinancing risk; plan for scheduled amortization ($16.9M in 2025, $22.5M in 2026) is clear .
Strategic reset post-merger termination: Removing Fury overhang may refocus investor attention on organic execution and AGI monetization pathway .
Near-term trading: Watch updates on AGI throughput/cost savings and Monument Draw well performance; strong operational prints could drive sentiment even absent formal guidance .
Medium-term thesis: If capex/ft and pad productivity sustain alongside AGI-driven opex reductions, adjusted cash metrics should trend positively; track any movement toward formal production or FCF guidance in upcoming quarters .

Sources: Battalion Oil Corporation Q4 2024 8-K and press releases ; Q3/Q2 2024 8-Ks and press releases ; Merger termination press release .