Battalion Oil Corporation Common Stock (BATL)

FairStock Score: 31/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Battalion as a Graham-style asset buyer, but the numbers warn me to be cautious. It is a small independent producer with Delaware Basin assets and only 40 employees, so it has no obvious durable moat; it sells crude oil, natural gas, and liquids at commodity prices it does not control. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $48.0M and net income was $15.5M, diluted EPS $0.34 — a strong quarter. But fiscal Q1 2026, ended 2026-03-31, showed revenue of $39.1M and a net loss of $56.5M, or EPS -$3.72, so the swing is violent. For FY2025 filed results, revenue was $165.0M and net income $11.9M, although diluted EPS was -$2.24; FY2024 revenue was $193.2M with a net loss of $31.9M. FairStock labels it a TURNAROUND because it returned to profit after losses in the last three years. Financial health is mixed: debt-to-equity 0.78, Altman Z-score -0.53, and trailing free cash flow -$2.2M, with FCF yield -3.7%. The Piotroski F-score is 7/9, but the negative Altman score and cash burn matter. At the 2026-10-13 close of $1.05, the FairStock-calculated P/E is -0.27, P/B is N/A, and EV/EBITDA is 4.28. A $60.1M market cap against negative earnings is not a classic Graham bargain. Growth is commodity-dependent and inconsistent. Unless free cash flow turns positive and earnings stabilize, this remains speculative.

In plain English: The company explores for and produces oil and natural gas, mainly in the Delaware Basin. Its results jump between profits and losses, and it is not making positive cash overall. At about $1.05 a share, the total market value is about $60 million; because profits and cash have been weak and uneven, the price looks speculative rather than clearly cheap or expensive.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q4 2025 10-Q (period ended 2025-12-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer