Battalion Oil (BATL) 10-Q 9 May 22 2022 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2022	May 05, 2022
Cover [Abstract]
Entity Registrant Name	Battalion Oil Corp
Entity Central Index Key	0001282648
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Document Transition Report	false
Amendment Flag	false
Trading Symbol	BATL
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		16,337,470
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-0700684
Entity Address, Address Line One	3505 West Sam Houston Parkway North
Entity Address, Address Line Two	Suite 300
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77043
City Area Code	832
Local Phone Number	538-0300
Title of 12(b) Security	Common Stock, par value $0.0001
Security Exchange Name	NYSEAMER
Entity File Number	001-35467

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Oil, natural gas and natural gas liquids sales:
Total oil, natural gas and natural gas liquids sales	$ 81,408	$ 55,266
Other	194	252
Total operating revenues	81,602	55,518
Production:
Lease operating	11,524	9,467
Workover and other	865	560
Taxes other than income	4,951	3,192
Gathering and other	15,255	13,171
General and administrative	4,985	4,827
Depletion, depreciation and accretion	10,220	10,595
Total operating expenses	47,800	41,812
Income (loss) from operations	33,802	13,706
Other income (expenses):
Net gain (loss) on derivative contracts	(123,858)	(45,711)
Interest expense and other	(2,688)	(1,370)
Total other income (expenses)	(126,546)	(47,081)
Income (loss) before income taxes	(92,744)	(33,375)
Income tax benefit (provision)
Net income (loss)	$ (92,744)	$ (33,375)
Net income (loss) per share of common stock:
Basic (in dollars per share)	$ (5.69)	$ (2.06)
Diluted (in dollars per share)	$ (5.69)	$ (2.06)
Weighted average common shares outstanding:
Basic (in shares)	16,303	16,232
Diluted (in shares)	16,303	16,232
Oil
Oil, natural gas and natural gas liquids sales:
Total oil, natural gas and natural gas liquids sales	$ 62,524	$ 41,270
Natural gas
Oil, natural gas and natural gas liquids sales:
Total oil, natural gas and natural gas liquids sales	8,881	9,087
NGLs
Oil, natural gas and natural gas liquids sales:
Total oil, natural gas and natural gas liquids sales	$ 10,003	$ 4,909

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 43,487	$ 46,864
Accounts receivable, net	43,375	36,806
Assets from derivative contracts	3,596	1,383
Restricted cash	150	1,495
Prepaids and other	1,268	1,366
Total current assets	91,876	87,914
Oil and natural gas properties (full cost method):
Evaluated	593,525	569,886
Unevaluated	64,885	64,305
Gross oil and natural gas properties	658,410	634,191
Less - accumulated depletion	(349,843)	(339,776)
Net oil and natural gas properties	308,567	294,415
Other operating property and equipment:
Other operating property and equipment	3,627	3,467
Less - accumulated depreciation	(1,079)	(1,035)
Net other operating property and equipment	2,548	2,432
Other noncurrent assets:
Assets from derivative contracts	5,195	2,515
Operating lease right of use assets	631	721
Other assets	1,973	2,270
Total assets	410,790	390,267
Current liabilities:
Accounts payable and accrued liabilities	81,370	62,826
Liabilities from derivative contracts	103,232	58,322
Current portion of long-term debt	5,000	85
Operating lease liabilities	373	369
Total current liabilities	189,975	121,602
Long-term debt, net	177,463	181,565
Other noncurrent liabilities:
Liabilities from derivative contracts	58,166	7,144
Asset retirement obligations	12,005	11,896
Operating lease liabilities	258	352
Other	1,971	4,003
Commitments and contingencies (Note 10)
Stockholders' equity:
Common stock: 100,000,000 shares of $0.0001 par value authorized; 16,337,030 and 16,273,913 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively	2	2
Additional paid-in capital	332,178	332,187
Retained earnings (accumulated deficit)	(361,228)	(268,484)
Total stockholders' equity	(29,048)	63,705
Total liabilities and stockholders' equity	$ 410,790	$ 390,267

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
Stockholders' equity:
Common stock, shares authorized	100,000,000	100,000,000
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares issued	16,337,030	16,273,913
Common stock, shares outstanding	16,337,030	16,273,913

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)	Total
Balances at Dec. 31, 2020	$ 2	$ 330,123	$ (240,167)	$ 89,958
Balances (in shares) at Dec. 31, 2020	16,204
Increase (Decrease) in Stockholders' Equity
Net income (loss)			(33,375)	(33,375)
Long-term incentive plan vestings (in shares)	87
Reduction in shares to cover individuals' tax withholding		(264)		(264)
Reduction in shares to cover individuals' tax withholding (in shares)	(24)
Stock-based compensation		692		692
Balances at Mar. 31, 2021	$ 2	330,551	(273,542)	57,011
Balances (in shares) at Mar. 31, 2021	16,267
Increase (Decrease) in Stockholders' Equity
Net income (loss)			(33,929)	(33,929)
Long-term incentive plan vestings (in shares)	1
Reduction in shares to cover individuals' tax withholding		(5)		(5)
Stock-based compensation		571		571
Balances at Jun. 30, 2021	$ 2	331,117	(307,471)	23,648
Balances (in shares) at Jun. 30, 2021	16,268
Increase (Decrease) in Stockholders' Equity
Net income (loss)			13,052	13,052
Long-term incentive plan vestings (in shares)	8
Reduction in shares to cover individuals' tax withholding		(22)		(22)
Reduction in shares to cover individuals' tax withholding (in shares)	(2)
Stock-based compensation		565		565
Balances at Sep. 30, 2021	$ 2	331,660	(294,419)	37,243
Balances (in shares) at Sep. 30, 2021	16,274
Increase (Decrease) in Stockholders' Equity
Net income (loss)			25,935	25,935
Stock-based compensation		527		527
Balances at Dec. 31, 2021	$ 2	332,187	(268,484)	63,705
Balances (in shares) at Dec. 31, 2021	16,274
Increase (Decrease) in Stockholders' Equity
Net income (loss)			(92,744)	(92,744)
Long-term incentive plan vestings (in shares)	89
Reduction in shares to cover individuals' tax withholding		(461)		(461)
Reduction in shares to cover individuals' tax withholding (in shares)	(26)
Stock-based compensation		452		452
Balances at Mar. 31, 2022	$ 2	$ 332,178	$ (361,228)	$ (29,048)
Balances (in shares) at Mar. 31, 2022	16,337

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net income (loss)	$ (92,744)	$ (33,375)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depletion, depreciation and accretion	10,220	10,595
Stock-based compensation, net	384	594
Unrealized loss (gain) on derivative contracts	91,038	36,052
Amortization of deferred loan costs	899
Reorganization items, net	(744)
Accrued settlements on derivative contracts	12,809	4,568
Change in fair value of Change of Control Call Option	(2,032)
Other income (expense)		(117)
Change in assets and liabilities:
Accounts receivable	(5,638)	(7,613)
Prepaids and other	98	149
Accounts payable and accrued liabilities	(2,243)	2,505
Net cash provided by (used in) operating activities	12,047	13,358
Cash flows from investing activities:
Oil and natural gas capital expenditures	(15,684)	(13,792)
Proceeds received from sale of oil and natural gas properties		1,076
Funds held in escrow and other	(160)	(3)
Net cash provided by (used in) investing activities	(15,844)	(12,719)
Cash flows from financing activities:
Proceeds from borrowings		16,000
Repayments of borrowings	(85)	(19,000)
Debt issuance costs	(379)
Other	(461)	(263)
Net cash provided by (used in) financing activities	(925)	(3,263)
Net increase (decrease) in cash, cash equivalents and restricted cash	(4,722)	(2,624)
Cash, cash equivalents and restricted cash at beginning of period	48,359	4,295
Cash, cash equivalents and restricted cash at end of period	43,637	1,671
Supplemental cash flow information:
Cash paid for reorganization items	$ 744

FINANCIAL STATEMENT PRESENTATIO

FINANCIAL STATEMENT PRESENTATION	3 Months Ended
	Mar. 31, 2022
FINANCIAL STATEMENT PRESENTATION
FINANCIAL STATEMENT PRESENTATION	1. FINANCIAL STATEMENT PRESENTATION Basis of Presentation and Principles of Consolidation Battalion is an independent energy company focused on the acquisition, production, exploration and development of onshore liquids-rich oil and natural gas assets in the United States. The consolidated financial statements include the accounts of all majority-owned, controlled subsidiaries. The Company operates in one segment which focuses on oil and natural gas acquisition, production, exploration and development. Allocation of capital is made across the Company’s entire portfolio without regard to operating area. All intercompany accounts and transactions have been eliminated. These unaudited condensed consolidated financial statements reflect, in the opinion of the Company’s management, all adjustments, consisting of normal and recurring adjustments, necessary to present fairly the financial position as of, and the results of operations for, the periods presented. During interim periods, Battalion follows the accounting policies disclosed in its Annual Report on Form 10-K, as filed with the United States Securities and Exchange Commission (SEC) on March 7, 2022. Please refer to the notes in the Annual Report on Form 10-K for the year ended December 31, 2021 when reviewing interim financial results. Risk and Uncertainties The Company is continuously monitoring the current and potential impacts of the novel coronavirus (COVID-19) pandemic on its business, including how it has and may continue to impact its operations, financial results, liquidity, contractors, customers, employees and vendors, and taking appropriate actions in response, including implementing various measures to ensure the continued operation of its business in a safe and secure manner. ​ In 2020, COVID-19 and governmental actions to contain the pandemic contributed to an economic downturn, reduced demand for oil and natural gas and, together with a price war involving the Organization of Petroleum Exporting Countries (OPEC)/Saudi Arabia and Russia, depressed oil and natural gas prices to historically low levels. Although OPEC and Russia subsequently agreed to reduce production, downward pressure on prices continued for several months, particularly given concerns over the impacts of the economic downturn on demand. As a consequence, beginning in March 2020, the Company realized lower revenue as a result of commodity price declines, resulting in the Company temporarily shutting in producing wells in May and June 2020, which further contributed to lower revenues that year. Additionally in 2020, the Company incurred ceiling test impairments, which were primarily driven by a decline in the average pricing required to be used in the valuation of the Company’s reserves for ceiling test purposes. ​ During 2021, widespread availability of COVID-19 vaccines in the United States and elsewhere combined with accommodative governmental monetary and fiscal policies and other factors, led to a rebound in demand for oil and natural gas and increases in oil and natural gas prices. Further, in 2022, the effects of Russian sanctions amidst the conflict with Ukraine have pushed oil and gas prices higher. However, there remains the potential for demand for oil and natural gas to be adversely impacted by the economic effects of rising interest rates and tightening monetary policies, as well as the ongoing COVID-19 pandemic, including as a consequence of the circulation of more infectious “variants” of the disease, vaccine hesitancy, waning vaccine effectiveness or other factors. As a consequence, the Company is unable to predict whether oil and natural gas prices will remain at current levels or will be adversely impacted by these or other factors. The results presented in this Form 10-Q are not necessarily indicative of future operating results. For further information regarding the actual and potential impacts of COVID-19 on the Company, see “Risk Factors” ​ Use of Estimates The preparation of the Company’s unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, if any, at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the respective reporting periods. Estimates and assumptions that, in the opinion of management of the Company, are significant include oil and natural gas revenue accruals, capital and operating expense accruals, oil and natural gas reserves, depletion relating to oil and natural gas properties, asset retirement obligations, and fair value estimates. The Company bases its estimates and judgments on historical experience and on various other assumptions and information believed to be reasonable under the circumstances. Estimates and assumptions about future events and their effects cannot be predicted with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as the Company’s operating environment changes. Actual results may differ from the estimates and assumptions used in the preparation of the Company’s unaudited condensed consolidated financial statements. Cash, Cash Equivalents and Restricted Cash “Cash and cash equivalents” “Restricted cash” ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2022 ​ December 31, 2021 ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 43,487 ​ $ 46,864 Restricted cash ​ ​ 150 ​ ​ 1,495 Total cash, cash equivalents and restricted cash ​ $ 43,637 ​ $ 48,359 ​ Accounts Receivable and Allowance for Doubtful Accounts The Company’s accounts receivable are primarily receivables from joint interest owners and oil and natural gas purchasers. Accounts receivable are recorded at the amount due, less an allowance for doubtful accounts, when applicable. The Company establishes provisions for losses on accounts receivable if it determines that collection of all or part of the outstanding balance is doubtful. The Company regularly reviews collectability and establishes or adjusts the allowance for doubtful accounts as necessary using the specific identification method. As of March 31, 2022 and December 31, 2021, allowances for doubtful accounts were approximately $0.2 million for both periods. Other Operating Property and Equipment Other operating property and equipment are recorded at cost. Depreciation is calculated using the straight-line method over the following estimated useful lives: buildings, twenty years; automobiles and computers fixtures, furniture and equipment eight Property, Plant, and Equipment Concentrations of Credit Risk The Company’s primary concentrations of credit risk are the risks of uncollectible accounts receivable and of nonperformance by counterparties under the Company’s derivative contracts. Each reporting period, the Company assesses the recoverability of material receivables using historical data, current market conditions and reasonable and supportable forecasts of future economic conditions to determine expected collectability of its material receivables. The Company’s accounts receivable are primarily receivables from joint interest owners and oil and natural gas purchasers. 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. Historically, the Company has not experienced any significant losses from uncollectible accounts from its oil and natural gas purchasers. The Company operates a substantial portion of its oil and natural gas properties. As the operator of a property, the Company makes full payments for costs associated with the property and seeks reimbursement from the other working interest owners in the property for their share of those costs. The Company’s joint interest partners consist primarily of independent oil and natural gas producers. Joint operating agreements govern the operations of an oil or natural gas well and, in most instances, provide for offsetting of amounts payable or receivable between the Company and its joint interest owners. If the oil and natural gas exploration and production industry in general was adversely affected, the ability of the Company’s joint interest partners to reimburse the Company could be adversely affected. The Company’s exposure to credit risk under its derivative contracts is varied among major financial institutions with investment grade credit ratings, where it has master netting agreements which provide for offsetting of amounts payable or receivable between the Company and the counterparty. To manage counterparty risk associated with derivative contracts, the Company selects and monitors counterparties based on an assessment of their financial strength and/or credit ratings. At March 31, 2022, the Company’s derivative counterparties include two major financial institutions, both of which are secured lenders under the Term Loan Agreement. ​ Recently Issued Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04, Reference Rate Reform (Topic 848) ​

LEASES

LEASES	3 Months Ended
	Mar. 31, 2022
LEASES
LEASES	2. LEASES definition of a lease embodies two conditions: (1) there is an identified asset in the contract that is land or a depreciable asset, and (2) the customer has the right to control the use of the identified asset. “Operating lease right of use assets” “Operating lease liabilities” Leases “Gathering and other” “General and administrative” “Operating lease right of use assets” ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ March 31, ​ ​ 2022 ​ 2021 Lease cost ​ ​ ​ ​ ​ ​ ​ ​ Operating lease costs ​ $ 98 ​ ​ $ 118 ​ Short-term lease costs ​ ​ 2,108 ​ ​ ​ 1,171 ​ Variable lease costs ​ ​ — ​ ​ ​ 113 ​ Total lease costs ​ $ 2,206 ​ ​ $ 1,402 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other information ​ ​ ​ ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities ​ ​ ​ ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ $ 98 ​ ​ $ 211 ​ Right-of-use assets obtained in exchange for new operating lease liabilities ​ ​ — ​ ​ ​ — ​ Weighted-average remaining lease term - operating leases ​ ​ 1.7 years ​ ​ 0.4 years Weighted-average discount rate - operating leases ​ ​ 4.29 % ​ ​ 3.70 % ​ ​ ​ ​ ​ ​ ​ March 31, 2022 Remaining period in 2022 ​ $ 293 2023 ​ ​ 359 2024 ​ ​ — 2025 ​ ​ — 2026 ​ ​ — Thereafter ​ ​ — Total operating lease payments ​ ​ 652 Less: discount to present value ​ ​ 21 Total operating lease liabilities ​ ​ 631 Less: current operating lease liabilities ​ ​ 373 Noncurrent operating lease liabilities ​ $ 258 ​ ​

OPERATING REVENUES

OPERATING REVENUES	3 Months Ended
	Mar. 31, 2022
OPERATING REVENUES
OPERATING REVENUES	3. OPERATING REVENUES Revenue is measured based on consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction that are collected by the Company from a customer are excluded from revenue. Revenues from the sale of crude oil, natural gas and natural gas liquids are recognized, at a point in time, when a performance obligation is satisfied by the transfer of control of the commodity to the customer. Because the Company’s performance obligations have been satisfied and an unconditional right to consideration exists as of the balance sheet date, the Company recognized amounts due from contracts with customers of $40.9 million and $35.1 million as of March 31, 2022 and December 31, 2021, respectively, as “Accounts receivable” “Other assets” Substantially all of the Company’s revenues are derived from single basin operations, the Delaware Basin in Pecos, Reeves, Ward and Winkler Counties, Texas. The following table disaggregates the Company’s revenues by major product, in order to depict how the nature, timing, and uncertainty of revenue and cash flows are affected by economic factors in the Company’s single basin operations, for the periods indicated (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ 2022 ​ 2021 Operating revenues: ​ ​ ​ ​ ​ ​ Oil, natural gas and natural gas liquids sales: ​ ​ ​ ​ ​ ​ Oil ​ $ 62,524 ​ $ 41,270 Natural gas ​ ​ 8,881 ​ ​ 9,087 Natural gas liquids ​ ​ 10,003 ​ ​ 4,909 Total oil, natural gas and natural gas liquids sales ​ ​ 81,408 ​ ​ 55,266 Other ​ ​ 194 ​ ​ 252 Total operating revenues ​ $ 81,602 ​ $ 55,518 ​ Oil Sales The Company generally markets its crude oil production directly to the customer using two methods. Under the first method, crude oil is sold at the wellhead at an index price, averaged over the daily settlement prices for a production month, and adjusted for pricing differentials and other deductions. Revenue is recognized at the wellhead, where control of the crude oil transfers to the customer, at the net price received. Under the second method, crude oil is delivered to the customer at a contractual delivery point at which the customer takes custody, title and risk of loss of the product. The Company receives a specified index price from the customer, averaged over the daily settlement prices for a production month, and net of applicable market-related adjustments. Revenue is recognized when control of the crude oil transfers at the delivery point at the net price received. Settlement statements for the Company’s crude oil production are typically received within the month following the date of production and therefore the amount of production delivered to the customer and the price that will be received for that production are known at the time the revenue is recorded. Payment under the Company’s crude oil contracts is typically due on or before the 20 th Natural Gas and Natural Gas Liquids Sales The Company evaluates its natural gas gathering and processing arrangements in place with midstream companies to determine when control of the natural gas is transferred. Under contracts where it is determined that control of the natural gas transfers at the wellhead, any fees incurred to gather or process the unprocessed natural gas are treated as a reduction of the sales price of unprocessed natural gas, and therefore revenues from such transactions are presented on a net basis. Under contracts where it is determined that control of the natural gas transfers at the tailgate of the midstream entity’s processing plant, revenues are presented on a gross basis for amounts expected to be received from the midstream company or third party purchasers through the gathering and treating process and presented as "Natural gas" "Natural gas liquids" "Gathering and other Under certain contracts, the Company may elect to take its residue gas and/or natural gas liquids in-kind at the tailgate of the midstream entity’s processing plant. The Company then sells the products to a customer at contractual delivery points at prices based on an index. In these instances, revenues are presented on a gross basis and any fees incurred to gather, process or transport the commodities are presented separately as "Gathering and other"

OIL AND NATURAL GAS PROPERTIES

OIL AND NATURAL GAS PROPERTIES	3 Months Ended
	Mar. 31, 2022
OIL AND NATURAL GAS PROPERTIES
OIL AND NATURAL GAS PROPERTIES	4. OIL AND NATURAL GAS PROPERTIES The Company uses the full cost method of accounting for its investment in oil and natural gas properties. Under this method of accounting, all costs of acquisition, exploration and development of oil and natural gas reserves (including such costs as leasehold acquisition costs, geological expenditures, treating equipment and gathering support facilities costs, dry hole costs, tangible and intangible development costs and direct internal costs) are capitalized as the cost of oil and natural gas properties when incurred. To the extent capitalized costs of evaluated oil and natural gas properties, net of accumulated depletion, exceed the discounted future net revenues of proved oil and natural gas reserves, net of deferred taxes, such excess capitalized costs are charged to expense. Additionally, the Company assesses all properties classified as unevaluated property on a quarterly basis for possible impairment. The Company assesses properties on an individual basis or as a group, if properties are individually insignificant. The assessment includes consideration of the following factors, among others: intent to drill; remaining lease term; geological and geophysical evaluations; drilling results and activity; the assignment of proved reserves; and the economic viability of development if proved reserves are assigned. During any period in which these factors indicate impairment, the cumulative drilling costs incurred to date for such property and all or a portion of the associated leasehold costs are transferred to the full cost pool and are then subject to depletion and the full cost ceiling test limitation. prices, the Company’s net book value of oil and natural gas properties at March 31, 2022 did not exceed the ceiling amount. ​ ​

DEBT

DEBT	3 Months Ended
	Mar. 31, 2022
DEBT
DEBT	5. DEBT As of March 31, 2022 and December 31, 2021, the Company’s debt consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2022 ​ ​ December 31, 2021 Term loan credit facility (1) ​ $ 182,463 ​ ​ $ 181,565 Paycheck Protection Program loan ​ ​ — ​ ​ ​ 85 Total debt, net ​ ​ 182,463 ​ ​ ​ 181,650 Current portion of long-term debt (2) ​ ​ 5,000 ​ ​ ​ 85 Total long-term debt, net ​ $ 177,463 ​ ​ $ 181,565 (1) Amount is net of $13.3 million and $14.2 million unamortized debt issuance costs at March 31, 2022 and December 31, 2021, respectively. Amount also excludes the initial fair value allocated to the change of control call option embedded derivative of $4.2 million at March 31, 2022 and December 31, 2021. Refer to “Term Loan Credit Facility” below for further details . (2) As of March 31, 2022, amount represents amortization payments of $5.0 million under the Term Loan Agreement due within one year. As of December 31, 2021, amount represents the balance owed under the Company’s Paycheck Protection Program Loan. Term Loan Credit Facility ​ ​ ​ ​ ​ ​ ​ Period ​ ​ Premium Months 0 - 12 ​ ​ Make-whole amount equal to 12 months of interest plus 2.00% Months 13 - 24 ​ ​ 2.00% Months 25 - 36 ​ ​ 1.00% Months 37 - 48 ​ ​ 0.00% ​ ​ ​ ​ The Company is required to make scheduled amortization payments in the aggregate amount of $120.0 million from the fiscal quarter ending March 31, 2023 through the fiscal quarter ending September 30, 2025. Amounts outstanding under the Term Loan Agreement are guaranteed by certain of the Borrower’s direct and indirect subsidiaries and secured by substantially all of the assets of the Borrower and such direct and indirect subsidiaries, and by the equity interests of the Borrower held by the Company. As part of the Term Loan Agreement there are certain restrictions on the transfer of assets, including cash, to Battalion from the guarantor subsidiaries. ​ ​ ​ ​ At March 31, 2022, the Company had $200.0 million indebtedness outstanding, approximately $1.6 million letters of credit outstanding and $35.0 million in delayed draw term loans available to be drawn under the Term Loan Agreement, subject to the satisfaction of certain conditions defined in the agreement. On April 29, 2022, the Company borrowed the $20.0 million available under the first delayed draw of the Term Loan Agreement. ​ Derivatives and Hedging “Other noncurrent liabilities.” “Interest expense and other” Fair Value Measurements ​ Senior Revolving Credit Facility On October 8, 2019, the Company entered into a senior secured revolving credit agreement, as amended, (the Senior Credit Agreement) with Bank of Montreal, as administrative agent, and certain other financial institutions party thereto, as lenders. The Senior Credit Agreement provided for a $750.0 million senior secured reserve-based revolving credit facility. A portion of the Senior Credit Agreement, in the amount of $25.0 million, was available for the issuance of letters of credit. The maturity date of the Senior Credit Agreement was October 8, 2024 . The borrowing base was redetermined semi-annually, with the lenders and the Company each having the right to one interim unscheduled redetermination between any two consecutive semi-annual redeterminations. The borrowing base took into account the estimated value of the Company’s oil and natural gas properties, proved reserves, total indebtedness, and other relevant factors consistent with customary oil and natural gas lending criteria. Amounts outstanding under the Senior Credit Agreement bore interest at specified margins over the base rate of 2.00% to 3.00% for ABR-based loans or at specified margins over LIBOR of 3.00% to 4.00% for Eurodollar-based loan. These margins fluctuated based on the Company’s utilization of the facility. The Senior Credit Agreement was amended and restated by the Term Loan Agreement. Borrowings outstanding under the Senior Credit Agreement were repaid with proceeds from the Term Loan Agreement. Paycheck Protection Program Loan “Gain (loss) on extinguishment of debt” Debt Issuance Costs and $14.2 million, respectively, of unamortized debt issuance costs. The debt issuance costs for the Company’s Term Loan Agreement are presented in “Long-term debt, net”

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2022
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	6. FAIR VALUE MEASUREMENTS Pursuant to ASC 820, Fair Value Measurement As required by ASC 820, a financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. There were no transfers ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2022 ​ Level 1 Level 2 Level 3 Total Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Assets from derivative contracts ​ $ — ​ $ 8,791 ​ $ — ​ $ 8,791 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities from derivative contracts ​ $ — ​ $ 161,398 ​ $ — ​ $ 161,398 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2021 ​ Level 1 Level 2 Level 3 Total Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Assets from derivative contracts ​ $ — ​ $ 3,898 ​ $ — ​ $ 3,898 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities from derivative contracts ​ $ — ​ $ 65,466 ​ $ — ​ $ 65,466 ​ Derivative contracts listed above as Level 2 include fixed-price swaps, collars, basis swaps and WTI NYMEX rolls that are carried at fair value. The Company records the net change in the fair value of these positions in “Net gain (loss) on derivative contracts” “Derivative and Hedging Activities,” The Company’s derivative contracts are with major financial institutions with investment grade credit ratings which are believed to have minimal credit risk. As such, the Company is exposed to credit risk to the extent of nonperformance by the counterparties in the derivative contracts; however, the Company does not anticipate such nonperformance. As discussed in Note 5, “Debt,” “Other noncurrent liabilities.” “Interest expense and other” ​ ​ ​ ​ ​ ​ ​ Change of Control ​ ​ Call Option Balance at December 31, 2021 ​ $ 4,003 Change in fair value ​ ​ (2,032) Balance at March 31, 2022 ​ $ 1,971 ​ ​ The following disclosure of the estimated fair value of financial instruments is made in accordance with the requirements of ASC 825, Financial Instruments term nature. The estimated fair value of the Company’s Term Loan Agreement approximates carrying value because the interest rates approximate current market rates. The Company follows the provisions of ASC 820, for nonfinancial assets and liabilities measured at fair value on a non-recurring basis. These provisions apply to the Company’s initial recognition of asset retirement obligations for which fair value is used. The asset retirement obligation estimates are derived from historical costs and management’s expectation of future cost environments; and therefore, the Company has designated these liabilities as Level 3. See Note 8, “Asset Retirement Obligations,”

DERIVATIVE AND HEDGING ACTIVITI

DERIVATIVE AND HEDGING ACTIVITIES	3 Months Ended
	Mar. 31, 2022
DERIVATIVE AND HEDGING ACTIVITIES
DERIVATIVE AND HEDGING ACTIVITIES	7. DERIVATIVE AND HEDGING ACTIVITIES The Company is exposed to certain risks relating to its ongoing business operations, such as commodity price risk and interest rate risk. In accordance with the Company’s policy and the requirements under the Term Loan Agreement, it generally hedges a substantial, but varying, portion of anticipated oil and natural gas production for future periods. Derivatives are carried at fair value on the unaudited condensed consolidated balance sheets as assets or liabilities, with the changes in the fair value included in the unaudited condensed consolidated statements of operations for the period in which the change occurs. The Company’s hedge policies and objectives may change significantly as its operational profile changes. The Company does not enter into derivative contracts for speculative trading purposes. It is the Company’s policy to enter into derivative contracts only with counterparties that are creditworthy financial or commodity hedging institutions deemed by management as competent and competitive market makers. As of March 31, 2022, the Company did not post collateral under any of its derivative contracts as they are secured under the Company’s Term Loan Agreement. The Company’s crude oil, and natural gas derivative positions at any point in time may consist of fixed-price swaps, costless put/call collars, basis swaps and WTI NYMEX rolls. Fixed-price swaps are designed so that the Company receives or makes payments based on a differential between fixed and variable prices for crude oil and natural gas. A costless collar consists of a sold call, which establishes a maximum price the Company will receive for the volumes under contract and a purchased put that establishes a minimum price and are generally utilized less frequently by the Company than fixed-price swaps. Basis swaps effectively lock in a price differential between regional prices (i.e. Midland) where the product is sold and the relevant pricing index under which the oil production is hedged (i.e. Cushing). WTI NYMEX roll agreements account for pricing adjustments to the trade month versus the delivery month for contract pricing. The Company has elected not to designate any of its derivative contracts for hedge accounting. Accordingly, the Company records the net change in the mark-to-market valuation of these derivative contracts, as well as all payments and receipts on settled derivative contracts, in “Net gain (loss) on derivative contracts” All derivative contracts are recorded at fair market value in accordance with ASC 815 and ASC 820 and included in the unaudited condensed consolidated balance sheets as assets or liabilities. The following table summarizes the location and fair value amounts of all derivative contracts in the unaudited condensed consolidated balance sheets as of March 31, 2022 and December 31, 2021 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivatives not designated as ​ ​ ​ Asset derivative contracts ​ ​ ​ Liability derivative contracts hedging contracts under ASC 815 Balance sheet location March 31, 2022 December 31, 2021 Balance sheet location March 31, 2022 December 31, 2021 Commodity contracts ​ Current assets - assets from derivative contracts ​ $ 3,596 ​ $ 1,383 ​ Current liabilities - liabilities from derivative contracts ​ $ (103,232) ​ $ (58,322) Commodity contracts ​ Other noncurrent assets - assets from derivative contracts ​ ​ 5,195 ​ ​ 2,515 ​ Other noncurrent liabilities - liabilities from derivative contracts ​ ​ (58,166) ​ ​ (7,144) Total derivatives not designated as hedging contracts under ASC 815 ​ ​ ​ $ 8,791 ​ $ 3,898 ​ ​ ​ $ (161,398) ​ $ (65,466) ​ The following table summarizes the location and amounts of the Company’s realized and unrealized gains and losses on derivative contracts in the Company’s unaudited condensed consolidated statements of operations (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount of gain or (loss) ​ ​ ​ ​ recognized in income on ​ ​ ​ ​ derivative contracts for the Derivatives not designated ​ Location of gain or ​ Three Months Ended as hedging contracts ​ (loss) recognized in income ​ March 31, under ASC 815 on derivative contracts ​ 2022 ​ 2021 Commodity contracts: ​ ​ ​ ​ ​ ​ ​ ​ Unrealized gain (loss) on commodity contracts ​ Other income (expenses) - net gain (loss) on derivative contracts ​ $ (91,038) ​ $ (36,052) Realized gain (loss) on commodity contracts ​ Other income (expenses) - net gain (loss) on derivative contracts ​ ​ (32,820) ​ ​ (9,659) Total net gain (loss) on derivative contracts ​ ​ ​ $ (123,858) ​ $ (45,711) ​ At March 31, 2022, the Company had the following open crude oil and natural gas derivative contracts: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Instrument ​ 2022 ​ 2023 ​ 2024 ​ 2025 ​ ​ 2026 Crude oil fixed-price swap: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (Bbls) ​ ​ 1,871,206 ​ ​ 2,000,965 ​ ​ 1,449,140 ​ ​ 1,028,160 ​ ​ 74,810 Weighted average price ​ $ 51.46 ​ $ 65.75 ​ $ 60.91 ​ $ 59.69 ​ $ 56.75 Crude oil basis swap: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (Bbls) ​ ​ 1,867,906 ​ ​ 1,937,165 ​ ​ 1,388,920 ​ ​ 988,260 ​ ​ 29,810 Weighted average price ​ $ 0.45 ​ $ 0.25 ​ $ 0.23 ​ $ 0.16 ​ $ 0.10 Crude oil WTI NYMEX roll: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (Bbls) ​ ​ 1,659,776 ​ ​ 1,937,165 ​ ​ 1,388,920 ​ ​ 988,260 ​ ​ 29,810 Weighted average price ​ $ 0.06 ​ $ 0.50 ​ $ 0.27 ​ $ 0.10 ​ $ — Natural gas fixed-price swap: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (MMBtu) ​ ​ 2,164,800 ​ ​ 3,841,550 ​ ​ 2,481,650 ​ ​ 2,250,650 ​ ​ ​ Weighted average price ​ $ 3.77 ​ $ 3.34 ​ $ 3.05 ​ $ 2.95 ​ ​ ​ Natural gas producer two-way collar: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (MMBtu) ​ ​ 2,693,624 ​ ​ 1,516,100 ​ ​ 1,163,100 ​ ​ 360,000 ​ ​ ​ Weighted average price (call) ​ $ 2.96 ​ $ 5.15 ​ $ 4.57 ​ $ 3.95 ​ ​ ​ Weighted average price (put) ​ $ 2.64 ​ $ 3.44 ​ $ 3.01 ​ $ 3.00 ​ ​ ​ Natural gas basis swap: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (MMBtu) ​ ​ 4,567,924 ​ ​ 5,011,700 ​ ​ 3,506,150 ​ ​ 2,565,650 ​ ​ ​ Weighted average price ​ $ (0.37) ​ $ (0.58) ​ $ (0.59) ​ $ (0.50) ​ ​ ​ ​ ​ The Company presents the fair value of its derivative contracts at the gross amounts in the unaudited condensed consolidated balance sheets. The following table shows the potential effects of master netting arrangements on the fair value of the Company’s derivative contracts at March 31, 2022 and December 31, 2021 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivative Assets ​ Derivative Liabilities Offsetting of Derivative Assets and Liabilities March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Amounts Presented in the Consolidated Balance Sheet ​ $ 8,791 ​ $ 3,898 ​ $ (161,398) ​ $ (65,466) Amounts Not Offset in the Consolidated Balance Sheet ​ ​ (8,791) ​ ​ (3,898) ​ ​ 8,791 ​ ​ 3,898 Net Amount ​ $ — ​ $ — ​ $ (152,607) ​ $ (61,568) ​ The Company enters into an International Swap Dealers Association Master Agreement (ISDA) with each counterparty prior to a derivative contract with such counterparty. The ISDA is a standard contract that governs all derivative contracts entered into between the Company and the respective counterparty. The ISDA allows for offsetting of amounts payable or receivable between the Company and the counterparty, at the election of both parties, for transactions that occur on the same date and in the same currency.

ASSET RETIREMENT OBLIGATIONS

ASSET RETIREMENT OBLIGATIONS	3 Months Ended
	Mar. 31, 2022
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS	8. ASSET RETIREMENT OBLIGATIONS The Company records an asset retirement obligation (ARO) on oil and natural gas properties when it can reasonably estimate the fair value of an obligation to perform site reclamation, dismantle facilities or plug and abandon costs. The Company records the ARO liability on the unaudited condensed consolidated balance sheets and capitalizes the cost in “Oil and natural gas properties” “Depletion, depreciation and accretion” The Company recorded the following activity related to its ARO liability (in thousands): ​ ​ ​ ​ ​ Liability for asset retirement obligations as of December 31, 2021 $ 11,896 Accretion expense ​ ​ 109 Liability for asset retirement obligations as of March 31, 2022 ​ $ 12,005 ​

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2022
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	9. COMMITMENTS AND CONTINGENCIES Commitments As of March 31, 2022, the Company has a minimum volume commitment with a third party for the purchase of chemicals to treat sour gas production through December 31, 2022. The future payments associated with the minimum volume commitment are approximately ​ As of March 31, 2022, the Company has an active drilling rig commitment of approximately $2.6 million through the third quarter of 2022. Termination of the active drilling rig commitment would require an early termination penalty of $0.6 million, which would be in lieu of paying the active drilling rig commitment of $2.6 million. The Company has entered into various long-term gathering, transportation and sales contracts with respect to its oil and natural gas production from the Delaware Basin in West Texas. As of March 31, 2022, the Company had in place two long-term crude oil contracts and 12 long-term natural gas contracts in this area and the sales prices under these contracts are based on posted market rates. Under the terms of these contracts, the Company has committed a substantial portion of its production from this area for periods ranging from one twenty Contingencies Surface owners of properties in Louisiana, where the Company formerly operated, often file lawsuits or assert claims against oil and gas companies claiming that operators and working interest owners are liable for environmental damages arising from operations conducted on the leased properties. These damages are frequently measured by the cost to restore the leased properties to their original condition. Currently and in the past, the Company has been party to such matters in Louisiana. With regard to pending matters, the overall exposure is not currently determinable. The Company intends to vigorously oppose these claims.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2022
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY	10. STOCKHOLDERS’ EQUITY Warrants On October 8, 2019, the Company entered into a warrant agreement (the Warrant Agreement) with Broadridge Corporate Issuer Solutions, Inc. as the warrant agent, pursuant to which the Company issued three series of warrants (the Series A Warrants, the Series B Warrants and the Series C Warrants and together, the Warrants), on a pro rata basis to pre-emergence holders of the predecessor Company’s common stock pursuant to the Company’s plan of reorganization. Each Warrant represents the right to purchase one share of common stock at the applicable exercise price, subject to adjustment as provided in the Warrant Agreement and as summarized below. On October 8, 2019, the Company issued (i) Series A Warrants to purchase an aggregate of 1,798,322 shares of common stock, with an initial exercise price of $40.17 per share, (ii) Series B Warrants to purchase an aggregate of 2,247,985 shares of common stock, with an initial exercise price of $48.28 per share and (iii) Series C Warrants to purchase an aggregate of 2,890,271 shares of common stock, with an initial exercise price of $60.45 per share. Each series of Warrants issued under the Warrant Agreement has a three-year term, expiring on October 8, 2022. The strike price of each series of Warrants issued under the Warrant Agreement increases monthly at an annualized rate of 6.75%, compounding monthly, as provided in the Warrant Agreement. As of March 31, 2022, the Company had 1.8 million Series A, 2.2 million Series B and 2.9 million Series C Warrants outstanding with corresponding exercise prices of $45.54, $55.09 and $69.41 per share, respectively. The Warrants do not grant any voting or control rights or dividend rights, or contain any negative covenants restricting the operation of the Company’s business. Incentive Plans The Company accounts for stock-based payment accruals under authoritative guidance on stock compensation. The guidance requires all stock-based payments to employees and directors, including grants of stock options and restricted stock, to be recognized in the financial statements based on their fair values. The Company has elected not to apply a forfeiture estimate and will recognize a credit in compensation expense to the extent awards are forfeited. For the three months ended March 31, 2022 and 2021, the Company recognized expense of $0.4 million and $0.6 million, respectively, related to stock-based-compensation. Stock-based compensation expense is recorded as a component of "General and administrative" Stock Options From time to time, the Company grants stock options under the Plan covering shares of common stock to employees of the Company. Stock options, when exercised, are settled through the payment of the exercise price in exchange for new shares of stock underlying the option. Awards granted under the Plan typically vest over a four year period at a rate of one No stock options were granted during the three months ended March 31, 2022. At March 31, 2022, the Company had $0.3 million of unrecognized compensation expense related to non-vested stock options to be recognized over a weighted-average period of 1.4 years. No stock options were granted during the three months ended March 31, 2021. At March 31, 2021, the Company had $0.8 million of unrecognized compensation expense related to non-vested stock options to be recognized over a weighted-average period of 1.9 years. Restricted Stock From time to time, the Company grants shares of restricted stock units (RSUs) under the Plan to employees of the Company. Under the Plan, employee RSUs will vest and convert to shares typically over a four year period at a rate of one -fourth on the annual anniversary date of the grant or when the performance or market conditions described below occur. During the three months ended March 31, 2022, the Company granted less than 0.1 million shares of RSUs which will vest over four years at a rate of one -fourth on the annual anniversary date of the grant. These RSUs were granted at a fair value price of $15.05 per share. At March 31, 2022, the Company had $1.9 million of unrecognized compensation expense related to non-vested RSU awards to be recognized over a weighted average period of 1.8 years. During the three months ended March 31, 2021, the Company granted less than 0.1 million shares of RSUs which will vest over four years over a rate of one -fourth on the annual anniversary date of the grant. These RSUs were granted at a fair value price of $8.00 per share. At March 31, 2021, the Company had $ 3.6 million of unrecognized compensation expense related to non-vested RSU awards to be recognized over a weighted average period of 2.5 years. ​

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2022
EARNINGS PER SHARE
EARNINGS PER SHARE	11. EARNINGS PER SHARE The following represents the calculation of earnings (loss) per share (in thousands, except per share amounts): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ ​ 2022 ​ 2021 Basic: ​ ​ ​ ​ ​ ​ Net income (loss) ​ $ (92,744) ​ $ (33,375) Weighted average basic number of common shares outstanding ​ ​ 16,303 ​ ​ 16,232 Basic net income (loss) per share of common stock ​ $ (5.69) ​ $ (2.06) ​ ​ ​ ​ ​ ​ ​ Diluted: ​ ​ ​ ​ ​ ​ Net income (loss) ​ $ (92,744) ​ $ (33,375) Weighted average basic number of common shares outstanding ​ ​ 16,303 ​ ​ 16,232 Common stock equivalent shares representing shares issuable upon: ​ ​ ​ ​ ​ ​ Exercise of Series A Warrants ​ ​ Anti-dilutive ​ ​ Anti-dilutive Exercise of Series B Warrants ​ ​ Anti-dilutive ​ ​ Anti-dilutive Exercise of Series C Warrants ​ ​ Anti-dilutive ​ ​ Anti-dilutive Exercise of stock options ​ ​ Anti-dilutive ​ ​ Anti-dilutive Vesting of restricted stock units ​ ​ Anti-dilutive ​ ​ Anti-dilutive Weighted average diluted number of common shares outstanding ​ ​ 16,303 ​ ​ 16,232 Diluted net income (loss) per share of common stock ​ $ (5.69) ​ $ (2.06) ​ Common stock equivalents, including warrants, options and restricted stock units, totaling 7.7 million for the three months ended March 31, 2022 were not included in the computation of diluted earnings per share of common stock because the effect would have been anti-dilutive due to the net loss. Common stock equivalents, including warrants, options and restricted stock units, totaling 7.8 million for the three months ended March 31, 2021 were not included in the computation of diluted earnings per share of common stock because the effect would have been anti-dilutive due to the net loss.

ADDITIONAL FINANCIAL STATEMENT

ADDITIONAL FINANCIAL STATEMENT INFORMATION	3 Months Ended
	Mar. 31, 2022
ADDITIONAL FINANCIAL STATEMENT INFORMATION
ADDITIONAL FINANCIAL STATEMENT INFORMATION	12. ADDITIONAL FINANCIAL STATEMENT INFORMATION Certain balance sheet amounts are comprised of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2022 December 31, 2021 Accounts receivable, net: ​ ​ ​ ​ ​ ​ Oil, natural gas and natural gas liquids revenues ​ $ 40,196 ​ $ 34,110 Joint interest accounts ​ ​ 2,876 ​ ​ 2,503 Other ​ ​ 303 ​ ​ 193 ​ ​ $ 43,375 ​ $ 36,806 Prepaids and other: ​ ​ ​ ​ ​ ​ Prepaids ​ $ 817 ​ $ 975 Funds in escrow ​ ​ 390 ​ ​ 390 Other ​ ​ 61 ​ ​ 1 ​ ​ $ 1,268 ​ $ 1,366 Other assets: ​ ​ ​ ​ ​ ​ Oil, natural gas and natural gas liquids revenues ​ $ 715 ​ $ 1,010 Funds in escrow ​ ​ 1,227 ​ ​ 1,227 Other ​ ​ 31 ​ ​ 33 ​ ​ $ 1,973 ​ $ 2,270 Accounts payable and accrued liabilities: ​ ​ ​ ​ ​ ​ Trade payables ​ $ 29,257 ​ $ 25,315 Accrued oil and natural gas capital costs ​ ​ 13,875 ​ ​ 4,881 Revenues and royalties payable ​ ​ 25,566 ​ ​ 22,763 Accrued interest expense ​ ​ 46 ​ ​ 42 Accrued employee compensation ​ ​ 1,059 ​ ​ 3,735 Accrued lease operating expenses ​ ​ 7,591 ​ ​ 6,090 Drilling advances from partners ​ ​ 3,976 ​ ​ — ​ ​ $ 81,370 ​ $ 62,826 ​

FINANCIAL STATEMENT PRESENTAT_2

FINANCIAL STATEMENT PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2022
FINANCIAL STATEMENT PRESENTATION
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation Battalion is an independent energy company focused on the acquisition, production, exploration and development of onshore liquids-rich oil and natural gas assets in the United States. The consolidated financial statements include the accounts of all majority-owned, controlled subsidiaries. The Company operates in one segment which focuses on oil and natural gas acquisition, production, exploration and development. Allocation of capital is made across the Company’s entire portfolio without regard to operating area. All intercompany accounts and transactions have been eliminated. These unaudited condensed consolidated financial statements reflect, in the opinion of the Company’s management, all adjustments, consisting of normal and recurring adjustments, necessary to present fairly the financial position as of, and the results of operations for, the periods presented. During interim periods, Battalion follows the accounting policies disclosed in its Annual Report on Form 10-K, as filed with the United States Securities and Exchange Commission (SEC) on March 7, 2022. Please refer to the notes in the Annual Report on Form 10-K for the year ended December 31, 2021 when reviewing interim financial results.
Risk and Uncertainties	Risk and Uncertainties The Company is continuously monitoring the current and potential impacts of the novel coronavirus (COVID-19) pandemic on its business, including how it has and may continue to impact its operations, financial results, liquidity, contractors, customers, employees and vendors, and taking appropriate actions in response, including implementing various measures to ensure the continued operation of its business in a safe and secure manner. ​ In 2020, COVID-19 and governmental actions to contain the pandemic contributed to an economic downturn, reduced demand for oil and natural gas and, together with a price war involving the Organization of Petroleum Exporting Countries (OPEC)/Saudi Arabia and Russia, depressed oil and natural gas prices to historically low levels. Although OPEC and Russia subsequently agreed to reduce production, downward pressure on prices continued for several months, particularly given concerns over the impacts of the economic downturn on demand. As a consequence, beginning in March 2020, the Company realized lower revenue as a result of commodity price declines, resulting in the Company temporarily shutting in producing wells in May and June 2020, which further contributed to lower revenues that year. Additionally in 2020, the Company incurred ceiling test impairments, which were primarily driven by a decline in the average pricing required to be used in the valuation of the Company’s reserves for ceiling test purposes. ​ During 2021, widespread availability of COVID-19 vaccines in the United States and elsewhere combined with accommodative governmental monetary and fiscal policies and other factors, led to a rebound in demand for oil and natural gas and increases in oil and natural gas prices. Further, in 2022, the effects of Russian sanctions amidst the conflict with Ukraine have pushed oil and gas prices higher. However, there remains the potential for demand for oil and natural gas to be adversely impacted by the economic effects of rising interest rates and tightening monetary policies, as well as the ongoing COVID-19 pandemic, including as a consequence of the circulation of more infectious “variants” of the disease, vaccine hesitancy, waning vaccine effectiveness or other factors. As a consequence, the Company is unable to predict whether oil and natural gas prices will remain at current levels or will be adversely impacted by these or other factors. The results presented in this Form 10-Q are not necessarily indicative of future operating results. For further information regarding the actual and potential impacts of COVID-19 on the Company, see “Risk Factors”
Use of Estimates	Use of Estimates The preparation of the Company’s unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, if any, at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the respective reporting periods. Estimates and assumptions that, in the opinion of management of the Company, are significant include oil and natural gas revenue accruals, capital and operating expense accruals, oil and natural gas reserves, depletion relating to oil and natural gas properties, asset retirement obligations, and fair value estimates. The Company bases its estimates and judgments on historical experience and on various other assumptions and information believed to be reasonable under the circumstances. Estimates and assumptions about future events and their effects cannot be predicted with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as the Company’s operating environment changes. Actual results may differ from the estimates and assumptions used in the preparation of the Company’s unaudited condensed consolidated financial statements.
Cash and Cash Equivalents	Cash, Cash Equivalents and Restricted Cash “Cash and cash equivalents” “Restricted cash” ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2022 ​ December 31, 2021 ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 43,487 ​ $ 46,864 Restricted cash ​ ​ 150 ​ ​ 1,495 Total cash, cash equivalents and restricted cash ​ $ 43,637 ​ $ 48,359 ​
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts The Company’s accounts receivable are primarily receivables from joint interest owners and oil and natural gas purchasers. Accounts receivable are recorded at the amount due, less an allowance for doubtful accounts, when applicable. The Company establishes provisions for losses on accounts receivable if it determines that collection of all or part of the outstanding balance is doubtful. The Company regularly reviews collectability and establishes or adjusts the allowance for doubtful accounts as necessary using the specific identification method. As of March 31, 2022 and December 31, 2021, allowances for doubtful accounts were approximately $0.2 million for both periods.
Other Operating Property and Equipment	Other Operating Property and Equipment Other operating property and equipment are recorded at cost. Depreciation is calculated using the straight-line method over the following estimated useful lives: buildings, twenty years; automobiles and computers fixtures, furniture and equipment eight Property, Plant, and Equipment
Concentrations of Credit Risk	Concentrations of Credit Risk The Company’s primary concentrations of credit risk are the risks of uncollectible accounts receivable and of nonperformance by counterparties under the Company’s derivative contracts. Each reporting period, the Company assesses the recoverability of material receivables using historical data, current market conditions and reasonable and supportable forecasts of future economic conditions to determine expected collectability of its material receivables. The Company’s accounts receivable are primarily receivables from joint interest owners and oil and natural gas purchasers. 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. Historically, the Company has not experienced any significant losses from uncollectible accounts from its oil and natural gas purchasers. The Company operates a substantial portion of its oil and natural gas properties. As the operator of a property, the Company makes full payments for costs associated with the property and seeks reimbursement from the other working interest owners in the property for their share of those costs. The Company’s joint interest partners consist primarily of independent oil and natural gas producers. Joint operating agreements govern the operations of an oil or natural gas well and, in most instances, provide for offsetting of amounts payable or receivable between the Company and its joint interest owners. If the oil and natural gas exploration and production industry in general was adversely affected, the ability of the Company’s joint interest partners to reimburse the Company could be adversely affected. The Company’s exposure to credit risk under its derivative contracts is varied among major financial institutions with investment grade credit ratings, where it has master netting agreements which provide for offsetting of amounts payable or receivable between the Company and the counterparty. To manage counterparty risk associated with derivative contracts, the Company selects and monitors counterparties based on an assessment of their financial strength and/or credit ratings. At March 31, 2022, the Company’s derivative counterparties include two major financial institutions, both of which are secured lenders under the Term Loan Agreement. ​
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04, Reference Rate Reform (Topic 848) ​

FINANCIAL STATEMENT PRESENTAT_3

FINANCIAL STATEMENT PRESENTATION (Tables)	3 Months Ended
	Mar. 31, 2022
FINANCIAL STATEMENT PRESENTATION
Schedule Of Cash, Cash Equivalents And Restricted Cash	​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2022 ​ December 31, 2021 ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 43,487 ​ $ 46,864 Restricted cash ​ ​ 150 ​ ​ 1,495 Total cash, cash equivalents and restricted cash ​ $ 43,637 ​ $ 48,359

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2022
LEASES
Schedule of Company's leases	The table below summarizes the Company’s leases for the three months ended March 31, 2022 and 2021 (in thousands, except term and discount rate): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ March 31, ​ ​ 2022 ​ 2021 Lease cost ​ ​ ​ ​ ​ ​ ​ ​ Operating lease costs ​ $ 98 ​ ​ $ 118 ​ Short-term lease costs ​ ​ 2,108 ​ ​ ​ 1,171 ​ Variable lease costs ​ ​ — ​ ​ ​ 113 ​ Total lease costs ​ $ 2,206 ​ ​ $ 1,402 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other information ​ ​ ​ ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities ​ ​ ​ ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ $ 98 ​ ​ $ 211 ​ Right-of-use assets obtained in exchange for new operating lease liabilities ​ ​ — ​ ​ ​ — ​ Weighted-average remaining lease term - operating leases ​ ​ 1.7 years ​ ​ 0.4 years Weighted-average discount rate - operating leases ​ ​ 4.29 % ​ ​ 3.70 %
Schedule of future minimum lease payments associated with the Company's non-cancellable operating leases for office space and equipment	Future minimum lease payments associated with the Company’s non-cancellable operating leases for office space as of March 31, 2022 are presented in the table below (in thousands): ​ ​ ​ ​ ​ ​ March 31, 2022 Remaining period in 2022 ​ $ 293 2023 ​ ​ 359 2024 ​ ​ — 2025 ​ ​ — 2026 ​ ​ — Thereafter ​ ​ — Total operating lease payments ​ ​ 652 Less: discount to present value ​ ​ 21 Total operating lease liabilities ​ ​ 631 Less: current operating lease liabilities ​ ​ 373 Noncurrent operating lease liabilities ​ $ 258

OPERATING REVENUES (Tables)

OPERATING REVENUES (Tables)	3 Months Ended
	Mar. 31, 2022
OPERATING REVENUES
Schedule of disaggregation of revenues by major product	The following table disaggregates the Company’s revenues by major product, in order to depict how the nature, timing, and uncertainty of revenue and cash flows are affected by economic factors in the Company’s single basin operations, for the periods indicated (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ 2022 ​ 2021 Operating revenues: ​ ​ ​ ​ ​ ​ Oil, natural gas and natural gas liquids sales: ​ ​ ​ ​ ​ ​ Oil ​ $ 62,524 ​ $ 41,270 Natural gas ​ ​ 8,881 ​ ​ 9,087 Natural gas liquids ​ ​ 10,003 ​ ​ 4,909 Total oil, natural gas and natural gas liquids sales ​ ​ 81,408 ​ ​ 55,266 Other ​ ​ 194 ​ ​ 252 Total operating revenues ​ $ 81,602 ​ $ 55,518

DEBT (Tables)

DEBT (Tables)	3 Months Ended
	Mar. 31, 2022
DEBT
Schedule of debt	As of March 31, 2022 and December 31, 2021, the Company’s debt consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2022 ​ ​ December 31, 2021 Term loan credit facility (1) ​ $ 182,463 ​ ​ $ 181,565 Paycheck Protection Program loan ​ ​ — ​ ​ ​ 85 Total debt, net ​ ​ 182,463 ​ ​ ​ 181,650 Current portion of long-term debt (2) ​ ​ 5,000 ​ ​ ​ 85 Total long-term debt, net ​ $ 177,463 ​ ​ $ 181,565 (1) Amount is net of $13.3 million and $14.2 million unamortized debt issuance costs at March 31, 2022 and December 31, 2021, respectively. Amount also excludes the initial fair value allocated to the change of control call option embedded derivative of $4.2 million at March 31, 2022 and December 31, 2021. Refer to “Term Loan Credit Facility” below for further details . (2) As of March 31, 2022, amount represents amortization payments of $5.0 million under the Term Loan Agreement due within one year. As of December 31, 2021, amount represents the balance owed under the Company’s Paycheck Protection Program Loan.
Schedule of prepayment premiums	​ ​ ​ ​ ​ Period ​ ​ Premium Months 0 - 12 ​ ​ Make-whole amount equal to 12 months of interest plus 2.00% Months 13 - 24 ​ ​ 2.00% Months 25 - 36 ​ ​ 1.00% Months 37 - 48 ​ ​ 0.00%

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2022
FAIR VALUE MEASUREMENTS
Schedule of fair value of the Company's financial assets and liabilities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2022 ​ Level 1 Level 2 Level 3 Total Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Assets from derivative contracts ​ $ — ​ $ 8,791 ​ $ — ​ $ 8,791 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities from derivative contracts ​ $ — ​ $ 161,398 ​ $ — ​ $ 161,398 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2021 ​ Level 1 Level 2 Level 3 Total Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Assets from derivative contracts ​ $ — ​ $ 3,898 ​ $ — ​ $ 3,898 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities from derivative contracts ​ $ — ​ $ 65,466 ​ $ — ​ $ 65,466
Schedule of changes in fair value of the change of control call option	The following table sets forth a reconciliation of the changes in fair value of the Change of Control Call Option classified as Level 3 in the fair value hierarchy (in thousands): ​ ​ ​ ​ ​ ​ ​ Change of Control ​ ​ Call Option Balance at December 31, 2021 ​ $ 4,003 Change in fair value ​ ​ (2,032) Balance at March 31, 2022 ​ $ 1,971

DERIVATIVE AND HEDGING ACTIVI_2

DERIVATIVE AND HEDGING ACTIVITIES (Tables)	3 Months Ended
	Mar. 31, 2022
DERIVATIVE AND HEDGING ACTIVITIES
Summary of location and fair value of derivative contracts	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivatives not designated as ​ ​ ​ Asset derivative contracts ​ ​ ​ Liability derivative contracts hedging contracts under ASC 815 Balance sheet location March 31, 2022 December 31, 2021 Balance sheet location March 31, 2022 December 31, 2021 Commodity contracts ​ Current assets - assets from derivative contracts ​ $ 3,596 ​ $ 1,383 ​ Current liabilities - liabilities from derivative contracts ​ $ (103,232) ​ $ (58,322) Commodity contracts ​ Other noncurrent assets - assets from derivative contracts ​ ​ 5,195 ​ ​ 2,515 ​ Other noncurrent liabilities - liabilities from derivative contracts ​ ​ (58,166) ​ ​ (7,144) Total derivatives not designated as hedging contracts under ASC 815 ​ ​ ​ $ 8,791 ​ $ 3,898 ​ ​ ​ $ (161,398) ​ $ (65,466)
Summary of the location and amounts of the Company's realized and unrealized gains and losses on derivative contracts	The following table summarizes the location and amounts of the Company’s realized and unrealized gains and losses on derivative contracts in the Company’s unaudited condensed consolidated statements of operations (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount of gain or (loss) ​ ​ ​ ​ recognized in income on ​ ​ ​ ​ derivative contracts for the Derivatives not designated ​ Location of gain or ​ Three Months Ended as hedging contracts ​ (loss) recognized in income ​ March 31, under ASC 815 on derivative contracts ​ 2022 ​ 2021 Commodity contracts: ​ ​ ​ ​ ​ ​ ​ ​ Unrealized gain (loss) on commodity contracts ​ Other income (expenses) - net gain (loss) on derivative contracts ​ $ (91,038) ​ $ (36,052) Realized gain (loss) on commodity contracts ​ Other income (expenses) - net gain (loss) on derivative contracts ​ ​ (32,820) ​ ​ (9,659) Total net gain (loss) on derivative contracts ​ ​ ​ $ (123,858) ​ $ (45,711)
Schedule of open derivative contracts	At March 31, 2022, the Company had the following open crude oil and natural gas derivative contracts: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Instrument ​ 2022 ​ 2023 ​ 2024 ​ 2025 ​ ​ 2026 Crude oil fixed-price swap: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (Bbls) ​ ​ 1,871,206 ​ ​ 2,000,965 ​ ​ 1,449,140 ​ ​ 1,028,160 ​ ​ 74,810 Weighted average price ​ $ 51.46 ​ $ 65.75 ​ $ 60.91 ​ $ 59.69 ​ $ 56.75 Crude oil basis swap: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (Bbls) ​ ​ 1,867,906 ​ ​ 1,937,165 ​ ​ 1,388,920 ​ ​ 988,260 ​ ​ 29,810 Weighted average price ​ $ 0.45 ​ $ 0.25 ​ $ 0.23 ​ $ 0.16 ​ $ 0.10 Crude oil WTI NYMEX roll: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (Bbls) ​ ​ 1,659,776 ​ ​ 1,937,165 ​ ​ 1,388,920 ​ ​ 988,260 ​ ​ 29,810 Weighted average price ​ $ 0.06 ​ $ 0.50 ​ $ 0.27 ​ $ 0.10 ​ $ — Natural gas fixed-price swap: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (MMBtu) ​ ​ 2,164,800 ​ ​ 3,841,550 ​ ​ 2,481,650 ​ ​ 2,250,650 ​ ​ ​ Weighted average price ​ $ 3.77 ​ $ 3.34 ​ $ 3.05 ​ $ 2.95 ​ ​ ​ Natural gas producer two-way collar: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (MMBtu) ​ ​ 2,693,624 ​ ​ 1,516,100 ​ ​ 1,163,100 ​ ​ 360,000 ​ ​ ​ Weighted average price (call) ​ $ 2.96 ​ $ 5.15 ​ $ 4.57 ​ $ 3.95 ​ ​ ​ Weighted average price (put) ​ $ 2.64 ​ $ 3.44 ​ $ 3.01 ​ $ 3.00 ​ ​ ​ Natural gas basis swap: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (MMBtu) ​ ​ 4,567,924 ​ ​ 5,011,700 ​ ​ 3,506,150 ​ ​ 2,565,650 ​ ​ ​ Weighted average price ​ $ (0.37) ​ $ (0.58) ​ $ (0.59) ​ $ (0.50) ​ ​ ​ ​ ​
Schedule of potential effects of master netting arrangements on the fair value of derivative contracts	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivative Assets ​ Derivative Liabilities Offsetting of Derivative Assets and Liabilities March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Amounts Presented in the Consolidated Balance Sheet ​ $ 8,791 ​ $ 3,898 ​ $ (161,398) ​ $ (65,466) Amounts Not Offset in the Consolidated Balance Sheet ​ ​ (8,791) ​ ​ (3,898) ​ ​ 8,791 ​ ​ 3,898 Net Amount ​ $ — ​ $ — ​ $ (152,607) ​ $ (61,568)

ASSET RETIREMENT OBLIGATIONS (T

ASSET RETIREMENT OBLIGATIONS (Tables)	3 Months Ended
	Mar. 31, 2022
ASSET RETIREMENT OBLIGATIONS
Schedule of activity related to ARO liability	The Company recorded the following activity related to its ARO liability (in thousands): ​ ​ ​ ​ ​ Liability for asset retirement obligations as of December 31, 2021 $ 11,896 Accretion expense ​ ​ 109 Liability for asset retirement obligations as of March 31, 2022 ​ $ 12,005

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2022
EARNINGS PER SHARE
Schedule of calculation of earnings (loss) per share	The following represents the calculation of earnings (loss) per share (in thousands, except per share amounts): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ ​ 2022 ​ 2021 Basic: ​ ​ ​ ​ ​ ​ Net income (loss) ​ $ (92,744) ​ $ (33,375) Weighted average basic number of common shares outstanding ​ ​ 16,303 ​ ​ 16,232 Basic net income (loss) per share of common stock ​ $ (5.69) ​ $ (2.06) ​ ​ ​ ​ ​ ​ ​ Diluted: ​ ​ ​ ​ ​ ​ Net income (loss) ​ $ (92,744) ​ $ (33,375) Weighted average basic number of common shares outstanding ​ ​ 16,303 ​ ​ 16,232 Common stock equivalent shares representing shares issuable upon: ​ ​ ​ ​ ​ ​ Exercise of Series A Warrants ​ ​ Anti-dilutive ​ ​ Anti-dilutive Exercise of Series B Warrants ​ ​ Anti-dilutive ​ ​ Anti-dilutive Exercise of Series C Warrants ​ ​ Anti-dilutive ​ ​ Anti-dilutive Exercise of stock options ​ ​ Anti-dilutive ​ ​ Anti-dilutive Vesting of restricted stock units ​ ​ Anti-dilutive ​ ​ Anti-dilutive Weighted average diluted number of common shares outstanding ​ ​ 16,303 ​ ​ 16,232 Diluted net income (loss) per share of common stock ​ $ (5.69) ​ $ (2.06)

ADDITIONAL FINANCIAL STATEMEN_2

ADDITIONAL FINANCIAL STATEMENT INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2022
ADDITIONAL FINANCIAL STATEMENT INFORMATION
Schedule of additional financial statement information, balance sheet	Certain balance sheet amounts are comprised of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2022 December 31, 2021 Accounts receivable, net: ​ ​ ​ ​ ​ ​ Oil, natural gas and natural gas liquids revenues ​ $ 40,196 ​ $ 34,110 Joint interest accounts ​ ​ 2,876 ​ ​ 2,503 Other ​ ​ 303 ​ ​ 193 ​ ​ $ 43,375 ​ $ 36,806 Prepaids and other: ​ ​ ​ ​ ​ ​ Prepaids ​ $ 817 ​ $ 975 Funds in escrow ​ ​ 390 ​ ​ 390 Other ​ ​ 61 ​ ​ 1 ​ ​ $ 1,268 ​ $ 1,366 Other assets: ​ ​ ​ ​ ​ ​ Oil, natural gas and natural gas liquids revenues ​ $ 715 ​ $ 1,010 Funds in escrow ​ ​ 1,227 ​ ​ 1,227 Other ​ ​ 31 ​ ​ 33 ​ ​ $ 1,973 ​ $ 2,270 Accounts payable and accrued liabilities: ​ ​ ​ ​ ​ ​ Trade payables ​ $ 29,257 ​ $ 25,315 Accrued oil and natural gas capital costs ​ ​ 13,875 ​ ​ 4,881 Revenues and royalties payable ​ ​ 25,566 ​ ​ 22,763 Accrued interest expense ​ ​ 46 ​ ​ 42 Accrued employee compensation ​ ​ 1,059 ​ ​ 3,735 Accrued lease operating expenses ​ ​ 7,591 ​ ​ 6,090 Drilling advances from partners ​ ​ 3,976 ​ ​ — ​ ​ $ 81,370 ​ $ 62,826

FINANCIAL STATEMENT PRESENTAT_4

FINANCIAL STATEMENT PRESENTATION (Details) $ in Millions	3 Months Ended
	Mar. 31, 2022segment	Dec. 31, 2021USD ($)
Basis of Presentation and Principles of Consolidation
Number of operating segments | segment	1
Allowance for doubtful accounts | $		$ 0.2

FINANCIAL STATEMENT PRESENTAT_5

FINANCIAL STATEMENT PRESENTATION- Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
FINANCIAL STATEMENT PRESENTATION
Cash and cash equivalents	$ 43,487	$ 46,864
Restricted cash	150	1,495
Total cash, cash equivalents and restricted cash	$ 43,637	$ 48,359	$ 1,671	$ 4,295

FINANCIAL STATEMENT PRESENTAT_6

FINANCIAL STATEMENT PRESENTATION - Other Operating Property and Equipment (Details)	3 Months Ended
	Mar. 31, 2022
Buildings
Other operating property and equipment
Estimated useful lives	20 years
Automobiles
Other operating property and equipment
Estimated useful lives	3 years
Computers
Other operating property and equipment
Estimated useful lives	3 years
Computer software
Other operating property and equipment
Estimated useful lives	5 years
Fixtures, furniture and equipment
Other operating property and equipment
Estimated useful lives	5 years
Trailers
Other operating property and equipment
Estimated useful lives	7 years
Heavy equipment | Minimum
Other operating property and equipment
Estimated useful lives	8 years
Heavy equipment | Maximum
Other operating property and equipment
Estimated useful lives	10 years

LEASES (Details)

LEASES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Lease cost
Operating lease costs	$ 98	$ 118
Short-term lease costs	2,108	1,171
Variable lease costs		113
Total lease costs	2,206	1,402
Other information
Operating cash flows from operating leases	$ 98	$ 211
Weighted-average remaining lease term - operating leases	1 year 8 months 12 days	4 months 24 days
Weighted-average discount rate - operating leases	4.29%	3.70%
Initial lease term	2 years 3 months 18 days		2 years 3 months 18 days

LEASES - Reported under ASC 842

LEASES - Reported under ASC 842 and ASC 840 (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Future minimum lease payments for non-cancellable operating leases
Remaining period in 2022	$ 293
2023	359
Total operating lease payment	652
Less: discount to present value	21
Total operating lease liabilities	631
Less: current operating lease liabilities	373	$ 369
Noncurrent operating lease liabilities	$ 258	$ 352

OPERATING REVENUES - Revenue Re

OPERATING REVENUES - Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Disaggregation of operating revenue
Total oil, natural gas and natural gas liquids sales	$ 81,408	$ 55,266
Other	194	252
Total operating revenues	81,602	55,518
Oil
Disaggregation of operating revenue
Total oil, natural gas and natural gas liquids sales	62,524	41,270
Natural gas
Disaggregation of operating revenue
Total oil, natural gas and natural gas liquids sales	8,881	9,087
NGLs
Disaggregation of operating revenue
Total oil, natural gas and natural gas liquids sales	10,003	$ 4,909
Accounts receivable
Disaggregation of operating revenue
Due from contracts with customers	$ 40,900		$ 35,100

OIL AND NATURAL GAS PROPERTIES

OIL AND NATURAL GAS PROPERTIES (Details)	3 Months Ended
	Mar. 31, 2022$ / MMBTU$ / bbl	Mar. 31, 2021$ / MMBTU$ / bbl
Ceiling Limitation Disclosures
First-day-of-month 12-month average price for natural gas (in $/MMBtu) | $ / MMBTU	4.09	2.16
First-day-of-month 12-month average price for crude oil used in ceiling test impairment (in dollars per barrel) | $ / bbl	75.28	39.95

DEBT (Details)

DEBT (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Nov. 24, 2021
Current and long-term debt
Debt	$ 182,463	$ 181,650
Current portion of long-term debt	5,000	85
Total long-term debt	177,463	181,565
Unamortized premium related to debt issued	5,000
Term loan credit facility
Current and long-term debt
Debt	182,463	181,565
Unamortized debt issuance costs	13,300	14,200
Term loan credit facility | Other noncurrent liabilities - liabilities from derivative contracts
Current and long-term debt
Allocated to the change of control call option embedded derivative	4,200	4,200	$ 4,200
Paycheck Protection Program Loan [Member]
Current and long-term debt
Debt		85
Current portion of long-term debt	$ 5,000	$ 85

DEBT - Term Loan Credit Facilit

DEBT - Term Loan Credit Facility (Details) - USD ($) $ in Millions	Nov. 24, 2021	Mar. 31, 2022	Mar. 31, 2022	Apr. 29, 2022
Term loan credit facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 200
Amount available for issuance of letters of credit	$ 5
Applicable margin (as a percent)	7.00%
Credit facility term			18 months
Maturity date		Nov. 24, 2025
Amount outstanding		$ 200	$ 200
Letters of credit outstanding		1.6	1.6
Threshold from capital expenditures to cash balance		20
Aggregate scheduled amortization payments		$ 120	120
Term loan credit facility | Minimum
Debt Instrument [Line Items]
Current ratio	1.00%
Term loan credit facility | Maximum
Debt Instrument [Line Items]
Current ratio	1.00%
Term loan credit facility | Prior to February 15, 2020
Debt Instrument [Line Items]
Interest plus		2.00%
Term loan credit facility | Prior to February 15, 2020 | Minimum
Debt Instrument [Line Items]
Debt instrument prepayment term		0 months
Term loan credit facility | Prior to February 15, 2020 | Maximum
Debt Instrument [Line Items]
Debt instrument prepayment term		12 months
Term loan credit facility | February 15, 2020
Debt Instrument [Line Items]
Interest plus		2.00%
Term loan credit facility | February 15, 2020 | Minimum
Debt Instrument [Line Items]
Debt instrument prepayment term		13 months
Term loan credit facility | February 15, 2020 | Maximum
Debt Instrument [Line Items]
Debt instrument prepayment term		24 months
Term loan credit facility | February 15, 2021
Debt Instrument [Line Items]
Interest plus		1.00%
Term loan credit facility | February 15, 2021 | Minimum
Debt Instrument [Line Items]
Debt instrument prepayment term		25 months
Term loan credit facility | February 15, 2021 | Maximum
Debt Instrument [Line Items]
Debt instrument prepayment term		36 months
Term loan credit facility | February 15, 2022
Debt Instrument [Line Items]
Interest plus		0.00%
Term loan credit facility | February 15, 2022 | Minimum
Debt Instrument [Line Items]
Debt instrument prepayment term		37 months
Term loan credit facility | February 15, 2022 | Maximum
Debt Instrument [Line Items]
Debt instrument prepayment term		48 months
Term loan credit facility | Amount available to be drawn up to 18 months from November 24, 2021
Debt Instrument [Line Items]
Incremental borrowing that we can make if we meet certain criteria	$ 20
Term loan credit facility | Amount available to be drawn up to 18 months after November 24, 2021
Debt Instrument [Line Items]
Incremental borrowing that we can make if we meet certain criteria	$ 15
Term loan credit facility | Fiscal quarter ending December 31, 2021 and March 31, 2022 | Minimum
Debt Instrument [Line Items]
Asset coverage ratio	1.00%
Term loan credit facility | Fiscal quarter ending December 31, 2021 and March 31, 2022 | Maximum
Debt Instrument [Line Items]
Asset coverage ratio	1.50%
Term loan credit facility | Fiscal quarter ending June 30, 2022 | Minimum
Debt Instrument [Line Items]
Asset coverage ratio	1.00%
Term loan credit facility | Fiscal quarter ending June 30, 2022 | Maximum
Debt Instrument [Line Items]
Asset coverage ratio	1.60%
Term loan credit facility | Fiscal quarter ending September 30, 2022 | Minimum
Debt Instrument [Line Items]
Asset coverage ratio	1.00%
Term loan credit facility | Fiscal quarter ending September 30, 2022 | Maximum
Debt Instrument [Line Items]
Asset coverage ratio	1.70%
Term loan credit facility | Fiscal quarter ending December 31, 2022 and each fiscal quarter thereafter | Minimum
Debt Instrument [Line Items]
Asset coverage ratio	1.00%
Term loan credit facility | Fiscal quarter ending December 31, 2022 and each fiscal quarter thereafter | Maximum
Debt Instrument [Line Items]
Asset coverage ratio	1.80%
Term loan credit facility | Fiscal quarter ending December 31, 2021 through and including June 30, 2022 | Minimum
Debt Instrument [Line Items]
Net Leverage Ratio	1.00%
Term loan credit facility | Fiscal quarter ending December 31, 2021 through and including June 30, 2022 | Maximum
Debt Instrument [Line Items]
Net Leverage Ratio	3.25%
Term loan credit facility | Fiscal quarter ending September 30, 2022 and December 31, 2022 | Minimum
Debt Instrument [Line Items]
Net Leverage Ratio	1.00%
Term loan credit facility | Fiscal quarter ending September 30, 2022 and December 31, 2022 | Maximum
Debt Instrument [Line Items]
Net Leverage Ratio	3.00%
Term loan credit facility | Fiscal quarter ending March 31, 2023 | Minimum
Debt Instrument [Line Items]
Net Leverage Ratio	1.00%
Term loan credit facility | Fiscal quarter ending March 31, 2023 | Maximum
Debt Instrument [Line Items]
Net Leverage Ratio	2.75%
Term loan credit facility | Fiscal quarter ending each fiscal quarter thereafter | Minimum
Debt Instrument [Line Items]
Net Leverage Ratio	1.00%
Term loan credit facility | Fiscal quarter ending each fiscal quarter thereafter | Maximum
Debt Instrument [Line Items]
Net Leverage Ratio	2.50%
Delayed Draw Term Loan
Debt Instrument [Line Items]
Incremental borrowing that we can make if we meet certain criteria		$ 35	$ 35
Delayed Draw Term Loan | Subsequent event
Debt Instrument [Line Items]
Amount outstanding				$ 20

DEBT - Senior Facility (Details

DEBT - Senior Facility (Details) $ in Thousands	3 Months Ended	11 Months Ended
	Mar. 31, 2022USD ($)item	Mar. 31, 2022USD ($)	Dec. 31, 2021USD ($)	Oct. 08, 2019USD ($)
Current and long-term debt
Debt	$ 182,463	$ 182,463	$ 181,650
Senior revolving credit facility
Current and long-term debt
Maximum borrowing capacity				$ 750,000,000
Amount available for issuance of letters of credit				$ 25,000
Maturity date	Oct. 8, 2024
Senior revolving credit facility | ABR-based | Minimum
Current and long-term debt
Applicable margin (as a percent)		2.00%
Senior revolving credit facility | ABR-based | Maximum
Current and long-term debt
Applicable margin (as a percent)		3.00%
Senior revolving credit facility | LIBOR | Minimum
Current and long-term debt
Applicable margin (as a percent)		3.00%
Senior revolving credit facility | LIBOR | Maximum
Current and long-term debt
Applicable margin (as a percent)		4.00%
Successor Senior revolving credit facility
Current and long-term debt
Number of interim unscheduled redeterminations of borrowing base to which the company and lender each have the right | item	1
Number of consecutive semi-annual redeterminations between which the company and the lenders each have the right to one interim unscheduled redetermination of borrowing base | item	2

DEBT - Paycheck Protection Prog

DEBT - Paycheck Protection Program Loan (Details) - USD ($) $ in Thousands	Apr. 16, 2020	Mar. 31, 2022	Mar. 31, 2021	Aug. 13, 2021
Current and long-term debt
Proceeds from issuance of debt			$ 16,000
Paycheck Protection Program Loan [Member]
Current and long-term debt
Proceeds from issuance of debt	$ 2,200
Maturity date		Apr. 16, 2022
Interest rate (as a percent)	1.00%
Principal repaid		$ 200
Principal amount				$ 200
Gain (loss) on extinguishment of debt		$ 2,100

DEBT - Debt Maturities and Debt

DEBT - Debt Maturities and Debt Issuance Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Debt Issuance Costs
Payment of debt issuance costs on Senior Credit Agreement	$ 379
Term loan credit facility
Debt Issuance Costs
Unamortized debt issuance costs	$ 13,300		$ 14,200

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Assets
Asset transfers between levels	$ 0
Liabilities
Liability transfers between levels	0
Recurring | Total
Assets
Receivables from derivative contracts	8,791	$ 3,898
Liabilities
Liabilities from derivative contracts	161,398	65,466
Recurring | Level 2
Assets
Receivables from derivative contracts	8,791	3,898
Liabilities
Liabilities from derivative contracts	$ 161,398	$ 65,466

FAIR VALUE MEASUREMENTS - Chang

FAIR VALUE MEASUREMENTS - Change of Control Call Option (Details) - Change of Control Call Option $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Balance at the beginning of the period	$ 4,003
Change in fair value	(2,032)
Balance at the end of the period	$ 1,971

DERIVATIVE AND HEDGING ACTIVI_3

DERIVATIVE AND HEDGING ACTIVITIES - (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Derivative and hedging activities
Asset derivative contracts	$ 8,791	$ 3,898
Liability derivative contracts	(161,398)	(65,466)
Derivatives not designated as hedging contracts
Derivative and hedging activities
Asset derivative contracts	8,791	3,898
Liability derivative contracts	(161,398)	(65,466)
Derivatives not designated as hedging contracts | Commodity contracts | Current assets - receivables from derivative contracts
Derivative and hedging activities
Asset derivative contracts	3,596	1,383
Derivatives not designated as hedging contracts | Commodity contracts | Other noncurrent assets - receivables from derivative contracts
Derivative and hedging activities
Asset derivative contracts	5,195	2,515
Derivatives not designated as hedging contracts | Commodity contracts | Current liabilities - liabilities from derivative contracts
Derivative and hedging activities
Liability derivative contracts	(103,232)	(58,322)
Derivatives not designated as hedging contracts | Commodity contracts | Other noncurrent liabilities - liabilities from derivative contracts
Derivative and hedging activities
Liability derivative contracts	$ (58,166)	$ (7,144)

DERIVATIVE AND HEDGING ACTIVI_4

DERIVATIVE AND HEDGING ACTIVITIES - Realized Unrealized (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Derivative and hedging activities
Total net gain (loss) on derivative contracts	$ (123,858)	$ (45,711)
Derivatives not designated as hedging contracts | Commodity contracts
Derivative and hedging activities
Total net gain (loss) on derivative contracts	(123,858)	(45,711)
Derivatives not designated as hedging contracts | Commodity contracts | Other Income Expense
Derivative and hedging activities
Unrealized gain (loss) on commodity contracts	(91,038)	(36,052)
Realized gain (loss) on commodity contracts	$ (32,820)	$ (9,659)

DERIVATIVE AND HEDGING ACTIVI_5

DERIVATIVE AND HEDGING ACTIVITIES - Open Contracts (Details)	3 Months Ended
	Mar. 31, 2022MMBTU$ / MMBTU$ / bblbbl
January 2022 - December 2022 | Fixed Swap | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	1,871,206
January 2022 - December 2022 | Fixed Swap | Crude oil | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl	51.46
January 2022 - December 2022 | Fixed Swap | Natural Gas [Member]
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	2,164,800
January 2022 - December 2022 | Fixed Swap | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	3.77
January 2022 - December 2022 | Basis Swap | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	1,867,906
January 2022 - December 2022 | Basis Swap | Crude oil | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl	0.45
January 2022 - December 2022 | Basis Swap | Natural Gas [Member]
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	4,567,924
January 2022 - December 2022 | Basis Swap | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	(0.37)
January 2022 - December 2022 | WTI NYMEX Roll | Crude oil | Maximum
Derivative and hedging activities
Volume in Bbl's | bbl	1,659,776
January 2022 - December 2022 | WTI NYMEX Roll | Crude oil | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl	0.06
January 2022 - December 2022 | Collars | Natural Gas [Member]
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	2,693,624
January 2022 - December 2022 | Call option | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	2.96
January 2022 - December 2022 | Put options | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	2.64
January 2023 - December 2023 | Fixed Swap | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	2,000,965
January 2023 - December 2023 | Fixed Swap | Crude oil | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl	65.75
January 2023 - December 2023 | Fixed Swap | Natural Gas [Member]
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	3,841,550
January 2023 - December 2023 | Fixed Swap | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	3.34
January 2023 - December 2023 | Basis Swap | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	1,937,165
January 2023 - December 2023 | Basis Swap | Crude oil | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl	0.25
January 2023 - December 2023 | Basis Swap | Natural Gas [Member]
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	5,011,700
January 2023 - December 2023 | Basis Swap | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	(0.58)
January 2023 - December 2023 | WTI NYMEX Roll | Crude oil | Maximum
Derivative and hedging activities
Volume in Bbl's | bbl	1,937,165
January 2023 - December 2023 | WTI NYMEX Roll | Crude oil | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl	0.50
January 2023 - December 2023 | Collars | Natural Gas [Member]
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	1,516,100
January 2023 - December 2023 | Call option | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	5.15
January 2023 - December 2023 | Put options | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	3.44
January 2024 - December 2024 | Fixed Swap | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	1,449,140
January 2024 - December 2024 | Fixed Swap | Crude oil | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl	60.91
January 2024 - December 2024 | Fixed Swap | Natural Gas [Member] | Minimum
Derivative and hedging activities
Floor (in dollars per Mmbtu's/Bbl's)	2,481,650
January 2024 - December 2024 | Fixed Swap | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	3.05
January 2024 - December 2024 | Basis Swap | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	1,388,920
January 2024 - December 2024 | Basis Swap | Crude oil | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl	0.23
January 2024 - December 2024 | Basis Swap | Natural Gas [Member]
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	3,506,150
January 2024 - December 2024 | Basis Swap | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	(0.59)
January 2024 - December 2024 | WTI NYMEX Roll | Crude oil | Maximum
Derivative and hedging activities
Volume in Bbl's | bbl	1,388,920
January 2024 - December 2024 | WTI NYMEX Roll | Crude oil | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl	0.27
January 2024 - December 2024 | Collars | Natural Gas [Member]
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	1,163,100
January 2024 - December 2024 | Call option | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	4.57
January 2024 - December 2024 | Put options | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	3.01
January 2025 - December 2025 | Fixed Swap | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	1,028,160
January 2025 - December 2025 | Fixed Swap | Crude oil | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl	59.69
January 2025 - December 2025 | Fixed Swap | Natural Gas [Member]
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	2,250,650
January 2025 - December 2025 | Fixed Swap | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	2.95
January 2025 - December 2025 | Basis Swap | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	988,260
January 2025 - December 2025 | Basis Swap | Crude oil | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl	0.16
January 2025 - December 2025 | Basis Swap | Natural Gas [Member]
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	2,565,650
January 2025 - December 2025 | Basis Swap | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	(0.50)
January 2025 - December 2025 | WTI NYMEX Roll | Crude oil | Maximum
Derivative and hedging activities
Volume in Bbl's | bbl	988,260
January 2025 - December 2025 | WTI NYMEX Roll | Crude oil | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl	0.10
January 2025 - December 2025 | Collars | Natural Gas [Member]
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	360,000
January 2025 - December 2025 | Call option | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	3.95
January 2025 - December 2025 | Put options | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	3
January 2026 - December 2026 | Fixed Swap | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	74,810
January 2026 - December 2026 | Fixed Swap | Crude oil | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl	56.75
January 2026 - December 2026 | Basis Swap | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	29,810
January 2026 - December 2026 | Basis Swap | Crude oil | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl	0.10
January 2026 - December 2026 | WTI NYMEX Roll | Crude oil | Maximum
Derivative and hedging activities
Volume in Bbl's | bbl	29,810

DERIVATIVE AND HEDGING ACTIVI_6

DERIVATIVE AND HEDGING ACTIVITIES - Netting Arrangements (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Derivative Assets
Gross Amounts Presented in the Consolidated Balance Sheet	$ 8,791	$ 3,898
Amounts Not Offset in the Consolidated Balance Sheet	(8,791)	(3,898)
Net Amount	0	0
Derivative Liabilities
Gross Amounts Presented in the Consolidated Balance Sheet	(161,398)	(65,466)
Amounts Not Offset in the Consolidated Balance Sheet	8,791	3,898
Net Amount	$ (152,607)	$ (61,568)

ASSET RETIREMENT OBLIGATIONS (D

ASSET RETIREMENT OBLIGATIONS (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)
Activity related to ARO liability
Liability for asset retirement obligations at the beginning of the period	$ 11,896
Accretion expense	109
Liability for asset retirement obligations at the end of the period	$ 12,005

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	3 Months Ended
	Mar. 31, 2022USD ($)contract
Purchase commitments related to equipment
Total	$ 2.6
Remaining commitment	4.9
Drilling rig commitment	2.6
Early termination penalty	$ 0.6
Gathering, transportation and sales | West Texas
Purchase commitments related to equipment
Number of long-term crude oil sales contracts to which the entity is committed | contract	2
Number of long-term natural gas sales contracts to which the entity is committed | contract	12
Gathering, transportation and sales | West Texas | Minimum
Purchase commitments related to equipment
Period of commitment for production from the date of first production	1 year
Gathering, transportation and sales | West Texas | Maximum
Purchase commitments related to equipment
Period of commitment for production from the date of first production	20 years

STOCKHOLDERS' EQUITY - Warrants

STOCKHOLDERS' EQUITY - Warrants (Details)	Oct. 08, 2019series$ / sharesshares	Mar. 31, 2022$ / sharesshares
Stockholders' equity
Number of series of warrants | series	3
Number of shares of common stock that can be purchased from warrants	1
Annualized Rate Of Increase To The Strike Price Of Warrants Issued	6.75
Warrant term (in years)	3 years
Series A Warrants
Stockholders' equity
Warrants issued	1,798,322
Exercise price (in dollars per share) | $ / shares	$ 40.17	$ 45.54
Number of warrants issued		1,800,000
Series B Warrants
Stockholders' equity
Warrants issued	2,247,985
Exercise price (in dollars per share) | $ / shares	$ 48.28	$ 55.09
Number of warrants issued		2,200,000
Series C Warrants
Stockholders' equity
Warrants issued	2,890,271
Exercise price (in dollars per share) | $ / shares	$ 60.45	$ 69.41
Number of warrants issued		2,900,000

STOCKHOLDERS' EQUITY - Incentiv

STOCKHOLDERS' EQUITY - Incentive Plans (Details) shares in Millions, $ in Millions	Jun. 08, 2021shares	Mar. 31, 2022USD ($)shares	Mar. 31, 2021USD ($)shares	Dec. 31, 2021shares	Jan. 29, 2020shares
General and administrative
Stock-based compensation
Compensation expense recorded | $		$ 0.4	$ 0.6
2016 Incentive Plan | Common Stock | Maximum
Stock-based compensation
Maximum number of shares that remained reserved for issuance under the Plan		0.5		0.5
2020 Incentive Plan | Common Stock
Stock-based compensation
Aggregate number of shares available	1.8				1.5
Increase in shares available for issuance	0.3
2020 Incentive Plan | Common Stock | Maximum
Stock-based compensation
Maximum number of shares that remained reserved for issuance under the Plan		0.5		0.5
2020 Incentive Plan | Stock options
Stock-based compensation
Percentage of awards vesting on the annual anniversary date of the grant		25
2020 Incentive Plan | Restricted Stock
Stock-based compensation
Percentage of awards other than options vesting on the annual anniversary date of the grant		25.00%	25.00%
Number of Shares
Granted (in shares)		0.1	0.1

STOCKHOLDERS' EQUITY - Stock Op

STOCKHOLDERS' EQUITY - Stock Options (Details) - Stock options $ in Millions	3 Months Ended
	Mar. 31, 2022USD ($)shares	Mar. 31, 2021USD ($)shares
Stock-based compensation
Vesting period	4 years
Expiration term	7 years
Unrecognized compensation expense stock option | $	$ 0.3	$ 0.8
Weighted average remaining vesting period	1 year 4 months 24 days	1 year 10 months 24 days
2020 Incentive Plan
Stock-based compensation
Percentage of awards vesting on the annual anniversary date of the grant	25
Granted (in shares) | shares	0	0

STOCKHOLDERS' EQUITY - Restrict

STOCKHOLDERS' EQUITY - Restricted Stock (Details) - 2020 Incentive Plan - Restricted Stock - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Stock-based compensation
Vesting period	4 years	4 years
Percentage of awards other than options vesting on the annual anniversary date of the grant	25.00%	25.00%
Number of shares granted	0.1	0.1
Grant date price (in dollars per share)	$ 15.05	$ 8
Unrecognized compensation expense other than options	$ 1.9	$ 3.6
Weighted average remaining vesting period	1 year 9 months 18 days	2 years 6 months

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Basic:
Net income (loss) available to common stockholders	$ (92,744)	$ (33,375)
Weighted average basic number of common shares outstanding	16,303	16,232
Basic net income (loss) per share of common share (in dollars per share)	$ (5.69)	$ (2.06)
Diluted:
Net income (loss) available to common stockholders	$ (92,744)	$ (33,375)
Weighted average basic number of common shares outstanding	16,303	16,232
Weighted average diluted number of common shares outstanding	16,303	16,232
Diluted net income (loss) per share of common stock (in dollars per share)	$ (5.69)	$ (2.06)
Common stock equivalents excluded from computation of diluted earnings per share of common stock because of anti-dilutive effect	7,700	7,800

ADDITIONAL FINANCIAL STATEMEN_3

ADDITIONAL FINANCIAL STATEMENT INFORMATION (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Accounts receivable:
Oil, natural gas and natural gas liquids revenues	$ 40,196	$ 34,110
Joint interest accounts	2,876	2,503
Other	303	193
Total	43,375	36,806
Prepaids and other:
Prepaids	817	975
Funds in escrow	390	390
Other	61	1
Total	1,268	1,366
Other assets:
Oil, natural gas and natural gas liquids revenues	715	1,010
Funds in escrow	1,227	1,227
Other	31	33
Total	1,973	2,270
Accounts payable and accrued liabilities:
Trade payables	29,257	25,315
Accrued oil and natural gas capital costs	13,875	4,881
Revenues and royalties payable	25,566	22,763
Accrued interest expense	46	42
Accrued employee compensation	1,059	3,735
Accrued lease operating expenses	7,591	6,090
Drilling advances from partners	3,976
Total	81,370	62,826
Other noncurrent assets:
Other	$ 31	$ 33