 HOUSTON, Aug. 10, 2020 GLOBE NEWSWIRE -- Battalion Oil Corporation NYSEA: BATL, Battalion or the Company today announced its second quarter 2020 results. Second Quarter Highlights Swift market reaction with no further capital required in 2020 to hold position; cut capital expenditures in Q2 2020 85 vs Q1 2020 Decreased Adjusted GA to 2.08Boe in 1H 2020 vs 5.47Boe in 1H 2019 see Selected Operating Data table for additional information Generated Adjusted LTM EBITDA of 98 MM, representing 70 growth from Q2 2019 see Adjusted EBITDA Reconciliation table for additional information Maintained peer-leading net leverage of 2.00x; focused on free cash flow in 2H 2020 and paying down debt Opportunistically accelerated hedge value by lowering weighted average strike price from existing hedges, without unwinding tradesSecond Quarter Results Average daily net production for the quarter ended June 30, 2020 was 14,264 Boe per day, of which oil represented 60. Total revenue for the second quarter was 18.5 million, of which 85 related to crude oil. Realized gains on derivative settlements totaled 32.5 million for the second quarter.Richard Little, the Companys CEO, commented, The second quarter was particularly difficult because it forced us to put a hold on our plans for growth in 2020, which we had been making tremendous progress on up to that point. However, I am proud of our teams ability to work remotely and still keep our business on track to a brighter future. Current production is now back to or even above levels prior to shutting-in over 50 of our field, and were now benefiting from our proactive workover and well optimization program during this downturn.Adjusted GA was 2.85 per Boe in the second quarter of 2020 compared to 4.99 per Boe in the second quarter of 2019 see Selected Operating Data table for additional information. Lease operating and workover expense was 8.36 per Boe in the second quarter of 2020 and 9.03 per Boe in the second quarter of 2019.The Company reported a net loss to common stockholders for the second quarter of 127.3 million including a full cost ceiling test impairment of 60.1 million. The Company reported a net loss per basic and diluted share of 7.86, and Adjusted LTM EBITDA of 98.2 million, compared to 56.4 million in the second quarter of 2019 see Adjusted EBITDA Reconciliation table for additional information.As of August 11, 2020, Battalion had 9,000 Bopd of oil hedged for the second half of 2020 at an average price of 39.85 per barrel. For 2021, the Company has 7,000 Bopd of oil hedged at an average price of 45.51 per barrel. For 2022, the Company has 4,000 Bopd of oil hedged at an average price of 52.38 per barrel. As of June 30, 2020, the mark-to-market value of derivative contracts was approximately 37.5 million.Mr. Little commented further, As we await a return to the drill bit next year, Im pleased we have been able to optimize our base business, which will continue to serve as a foundation for generating free cash flow through these challenging times. We will benefit in the long term from allocating capital to price-agnostic projects in preparation for future activity as well as continue to pursue de-leveraging, responsible MA opportunities.Conference Call Information Battalion Oil Corporation has scheduled a conference call for Tuesday, August 12, 2020, at 11:00 a.m. EDT 10:00 a.m. CDT. To participate in the conference call, dial 720-452-9102 or 800-437-2398 toll free a few minutes before the call begins and reference Battalion Oil Corporation confirmation code 6548872. The conference call recording will also be posted to Battalions website: Looking Statements This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that are not strictly historical statements constitute forward-looking statements. Forward-looking statements include, among others, statements about anticipated production, liquidity, capital spending, drilling and completion plans, and forward guidance. Forward-looking statements may often, but not always, be identified by the use of such words such as expects, believes, intends, anticipates, plans, estimates, projects, potential, possible, or probable or statements that certain actions, events or results may, will, should, or could be taken, occur or be achieved. Forward-looking statements are based on current beliefs and expectations and involve certain assumptions or estimates that involve various risks and uncertainties that could cause actual results to differ materially from those reflected in the statements. These risks include, but are not limited to, those set forth in the Companys Annual Report on Form 10-K for the fiscal year ended December 31, 2019 and other filings submitted by the Company to the U.S. Securities and Exchange Commission SEC, copies of which may be obtained from the SECs website at or through the Companys website at Readers should not place undue reliance on any such forward-looking statements, which are made only as of the date hereof. The Company has no duty, and assumes no obligation, to update forward-looking statements as a result of new information, future events or changes in the Companys expectations.About Battalion Battalion Oil Corporation is an independent energy company engaged in the acquisition, production, exploration and development of onshore oil and natural gas properties in the United States.Contact John-Davis Rutkauskas Director, Corporate Finance IR 832 538-0551 BATTALION OIL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited In thousands, except per share amounts Successor Predecessor Successor Predecessor Three Months Three Months Six Months Six Months Ended Ended Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Operating revenues: Oil, natural gas and natural gas liquids sales: Oil 15,758 53,232 57,675 98,749 Natural gas 836 1,655 1,190 194 Natural gas liquids 1,437 4,297 6,190 9,242 Total oil, natural gas and natural gas liquids sales 18,031 55,874 65,055 107,797 Other 463 504 838 497 Total operating revenues 18,494 56,378 65,893 108,294 Operating expenses: Production: Lease operating 10,300 13,473 22,789 27,659 Workover and other 539 1,368 1,862 4,014 Taxes other than income 1,493 3,308 4,408 6,201 Gathering and other 15,228 11,041 25,775 25,910 Restructuring 2,162 654 2,580 11,925 General and administrative 5,270 12,519 9,126 17,127 Depletion, depreciation and accretion 14,382 40,425 32,412 70,400 Full cost ceiling impairment 60,107 664,383 60,107 939,622 Gain loss on sale of Water Assets 2,897 3,782 Total operating expenses 109,481 750,068 159,059 1,106,640 Income loss from operations 90,987 693,690 93,166 998,346 Other income expenses: Net gain loss on derivative contracts 34,761 17,010 83,538 47,789 Interest expense and other 1,568 14,470 3,197 27,059 Total other income expenses 36,329 2,540 80,341 74,848 Income loss before income taxes 127,316 691,150 12,825 1,073,194 Income tax benefit provision 50,306 95,791 Net income loss 127,316 640,844 12,825 977,403 Net income loss per share of common stock: Basic 7.86 4.03 0.79 6.15 Diluted 7.86 4.03 0.79 6. 