Battalion Oil (BATL) 10-Q 8 Aug 22 2022 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2022	Aug. 04, 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	Jun. 30, 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		16,337,910
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
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		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Oil, natural gas and natural gas liquids sales:
Total oil, natural gas and natural gas liquids sales	$ 101,290	$ 64,103	$ 182,698	$ 119,369
Other	221	263	415	515
Total operating revenues	101,511	64,366	183,113	119,884
Production:
Lease operating	11,909	10,169	23,433	19,636
Workover and other	1,383	767	2,248	1,327
Taxes other than income	5,372	2,912	10,323	6,104
Gathering and other	15,869	14,331	31,124	27,502
General and administrative	4,588	4,031	9,573	8,858
Depletion, depreciation and accretion	12,601	11,249	22,821	21,844
Total operating expenses	51,722	43,459	99,522	85,271
Income (loss) from operations	49,789	20,907	83,591	34,613
Other income (expenses):
Net gain (loss) on derivative contracts	(31,910)	(53,089)	(155,768)	(98,800)
Interest expense and other	(4,832)	(1,747)	(7,520)	(3,117)
Total other income (expenses)	(36,742)	(54,836)	(163,288)	(101,917)
Income (loss) before income taxes	13,047	(33,929)	(79,697)	(67,304)
Income tax benefit (provision)
Net income (loss)	$ 13,047	$ (33,929)	$ (79,697)	$ (67,304)
Net income (loss) per share of common stock:
Basic (in dollars per share)	$ 0.80	$ (2.09)	$ (4.88)	$ (4.14)
Diluted (in dollars per share)	$ 0.79	$ (2.09)	$ (4.88)	$ (4.14)
Weighted average common shares outstanding:
Basic (in shares)	16,338	16,268	16,320	16,250
Diluted (in shares)	16,510	16,268	16,320	16,250
Oil
Oil, natural gas and natural gas liquids sales:
Total oil, natural gas and natural gas liquids sales	$ 73,944	$ 51,935	$ 136,468	$ 93,205
Natural gas
Oil, natural gas and natural gas liquids sales:
Total oil, natural gas and natural gas liquids sales	14,759	5,317	23,640	14,404
NGLs
Oil, natural gas and natural gas liquids sales:
Total oil, natural gas and natural gas liquids sales	$ 12,587	$ 6,851	$ 22,590	$ 11,760

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 43,640	$ 46,864
Accounts receivable, net	53,002	36,806
Assets from derivative contracts	6,146	1,383
Restricted cash	135	1,495
Prepaids and other	927	1,366
Total current assets	103,850	87,914
Oil and natural gas properties (full cost method):
Evaluated	632,004	569,886
Unevaluated	64,760	64,305
Gross oil and natural gas properties	696,764	634,191
Less - accumulated depletion	(362,257)	(339,776)
Net oil and natural gas properties	334,507	294,415
Other operating property and equipment:
Other operating property and equipment	4,045	3,467
Less - accumulated depreciation	(1,027)	(1,035)
Net other operating property and equipment	3,018	2,432
Other noncurrent assets:
Assets from derivative contracts	3,972	2,515
Operating lease right of use assets	539	721
Other assets	3,329	2,270
Total assets	449,215	390,267
Current liabilities:
Accounts payable and accrued liabilities	97,334	62,826
Liabilities from derivative contracts	91,750	58,322
Current portion of long-term debt	15,000	85
Operating lease liabilities	377	369
Asset retirement obligations	401
Total current liabilities	204,862	121,602
Long-term debt, net	188,372	181,565
Other noncurrent liabilities:
Liabilities from derivative contracts	58,138	7,144
Asset retirement obligations	11,686	11,896
Operating lease liabilities	162	352
Other	1,408	4,003
Commitments and contingencies (Note 10)
Stockholders' equity:
Common stock: 100,000,000 shares of $0.0001 par value authorized; 16,337,910 and 16,273,913 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively	2	2
Additional paid-in capital	332,766	332,187
Retained earnings (accumulated deficit)	(348,181)	(268,484)
Total stockholders' equity	(15,413)	63,705
Total liabilities and stockholders' equity	$ 449,215	$ 390,267

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 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	16,337,910	16,273,913
Common stock, shares outstanding	16,337,910	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)
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
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)				(67,304)
Long-term incentive plan vestings (in shares)	87
Balances at Jun. 30, 2021	$ 2	331,117	(307,471)	23,648
Balances (in shares) at Jun. 30, 2021	16,268
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)
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
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)				(79,697)
Long-term incentive plan vestings (in shares)	89
Balances at Jun. 30, 2022	$ 2	332,766	(348,181)	(15,413)
Balances (in shares) at Jun. 30, 2022	16,338
Balances at Mar. 31, 2022	$ 2	332,178	(361,228)	(29,048)
Balances (in shares) at Mar. 31, 2022	16,337
Increase (Decrease) in Stockholders' Equity
Net income (loss)			13,047	13,047
Long-term incentive plan vestings (in shares)	1
Reduction in shares to cover individuals' tax withholding		(6)		(6)
Stock-based compensation		594		594
Balances at Jun. 30, 2022	$ 2	$ 332,766	$ (348,181)	$ (15,413)
Balances (in shares) at Jun. 30, 2022	16,338

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities:
Net income (loss)	$ (79,697)	$ (67,304)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depletion, depreciation and accretion	22,821	21,844
Stock-based compensation, net	857	1,079
Unrealized loss (gain) on derivative contracts	78,201	70,869
Amortization of deferred loan costs	1,807
(Gain) loss on sale of other assets	(96)
Reorganization items, net	(744)
Accrued settlements on derivative contracts	14,652	6,972
Change in fair value of Change of Control Call Option	(2,595)
Other income (expense)		(287)
Change in assets and liabilities:
Accounts receivable	(12,596)	(5,488)
Prepaids and other	438	(441)
Accounts payable and accrued liabilities	5,285	1,856
Net cash provided by (used in) operating activities	28,333	29,100
Cash flows from investing activities:
Oil and natural gas capital expenditures	(51,377)	(37,593)
Proceeds received from sale of oil and natural gas properties		926
Other operating property and equipment capital expenditures	(705)
Proceeds received from sale of other operating property and equipment	96
Funds held in escrow and other		(2)
Net cash provided by (used in) investing activities	(51,986)	(36,669)
Cash flows from financing activities:
Proceeds from borrowings	20,000	82,000
Repayments of borrowings	(85)	(77,000)
Debt issuance costs	(379)
Other	(467)	(268)
Net cash provided by (used in) financing activities	19,069	4,732
Net increase (decrease) in cash, cash equivalents and restricted cash	(4,584)	(2,837)
Cash, cash equivalents and restricted cash at beginning of period	48,359	4,295
Cash, cash equivalents and restricted cash at end of period	43,775	$ 1,458
Supplemental cash flow information:
Cash paid for reorganization items	$ 744

FINANCIAL STATEMENT PRESENTATIO

FINANCIAL STATEMENT PRESENTATION	6 Months Ended
	Jun. 30, 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. Interim period results are not necessarily indicative of results of operations or cash flows for the full year and accordingly, certain information normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States, has been condensed or omitted. 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. The Company has evaluated events or transactions through the date of issuance of these unaudited condensed consolidated financial statements. 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. ​ 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. Additionally, in periods of increasing commodity prices, the Company continues to be at risk to supply chain issues, including, but not limited to, labor shortages, pipe restrictions and potential delays in obtaining frac and/or drilling related equipment that could impact our business . During these periods, the costs and delivery times of rigs, equipment and supplies may also be substantially greater. The unavailability or high cost of drilling rigs and/or frac crews, pressure pumping equipment, tubulars and other supplies, and of qualified personnel can materially and adversely affect our operations and profitability. For further information regarding the actual and potential impacts of COVID-19 and supply chain issues 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” ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2022 ​ December 31, 2021 ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 43,640 ​ $ 46,864 Restricted cash ​ ​ 135 ​ ​ 1,495 Total cash, cash equivalents and restricted cash ​ $ 43,775 ​ $ 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 June 30, 2022 and December 31, 2021, allowances for doubtful accounts were approximately $0.2 million for both periods. 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 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 June 30, 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	6 Months Ended
	Jun. 30, 2022
LEASES
LEASES	2. LEASES “Operating lease right of use assets” “Operating lease liabilities” “Gathering and other” “General and administrative” “Operating lease right of use assets” ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended ​ ​ ​ June 30, ​ ​ 2022 ​ 2021 Lease cost ​ ​ ​ ​ ​ ​ ​ ​ Operating lease costs ​ $ 196 ​ ​ $ 235 ​ Short-term lease costs ​ ​ 4,003 ​ ​ ​ 1,889 ​ Variable lease costs ​ ​ — ​ ​ ​ 229 ​ Total lease costs ​ $ 4,199 ​ ​ $ 2,353 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other information ​ ​ ​ ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities ​ ​ ​ ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ $ 196 ​ ​ $ 328 ​ Weighted-average remaining lease term - operating leases ​ ​ 1.4 years ​ ​ 0.2 years Weighted-average discount rate - operating leases ​ ​ 4.29 % ​ ​ 3.70 % ​ ​ ​ ​ ​ ​ ​ June 30, 2022 Remaining period in 2022 ​ $ 196 2023 ​ ​ 359 2024 ​ ​ — 2025 ​ ​ — 2026 ​ ​ — Thereafter ​ ​ — Total operating lease payments ​ ​ 555 Less: discount to present value ​ ​ 16 Total operating lease liabilities ​ ​ 539 Less: current operating lease liabilities ​ ​ 377 Noncurrent operating lease liabilities ​ $ 162 ​ ​

OPERATING REVENUES

OPERATING REVENUES	6 Months Ended
	Jun. 30, 2022
OPERATING REVENUES
OPERATING REVENUES	3. OPERATING REVENUES Substantially all of the Company’s revenues are derived from single basin operations, the Delaware Basin in Pecos, Reeves, Ward and Winkler Counties, Texas. Revenue is presented disaggregated in the statement of operations by major product, and depicts how the nature, timing, and uncertainty of revenue and cash flows are affected by economic factors in the Company’s single basin operations. Revenue is recognized when the following five steps are completed: (1) identify the contract with the customer, (2) identify the performance obligation (promise) in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, (5) recognize revenue when the reporting organization satisfies a performance obligation. 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. 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. 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 $ “Accounts receivable” “Other assets” ​

OIL AND NATURAL GAS PROPERTIES

OIL AND NATURAL GAS PROPERTIES	6 Months Ended
	Jun. 30, 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. ​ ​

DEBT

DEBT	6 Months Ended
	Jun. 30, 2022
DEBT
DEBT	5. DEBT As of June 30, 2022 and December 31, 2021, the Company’s debt consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2022 ​ ​ December 31, 2021 Term loan credit facility (1) ​ $ 203,372 ​ ​ $ 181,565 Paycheck Protection Program loan ​ ​ — ​ ​ ​ 85 Total debt, net ​ ​ 203,372 ​ ​ ​ 181,650 Current portion of long-term debt (2) ​ ​ 15,000 ​ ​ ​ 85 Total long-term debt, net ​ $ 188,372 ​ ​ $ 181,565 (1) Amount is net of $12.4 million and $14.2 million in unamortized debt issuance costs at June 30, 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. Refer to “Term Loan Credit Facility” below for further details . (2) As of June 30, 2022, amount represents amortization payments of $15.0 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 ​ ​ At June 30, 2022, the Company had $220.0 million indebtedness outstanding and approximately $1.3 million letters of credit outstanding under the Term Loan Agreement. The Company also has available $15.0 million in delayed draw term loans, subject to the satisfaction of certain conditions defined in the agreement. ​ ​ ​ ​ ​ ​ 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. ​ ● Asset Coverage Ratio of not less than 1.60 to 1.00 as of June 30, 2022, 1.70 to 1.00 as of September 30, 2022, and 1.80 to 1.00 as of December 31, 2022 and each fiscal quarter thereafter ● Total Net Leverage Ratio of not greater than 3.25 to 1.00 as of June 30, 2022, 3.00 to 1.00 as of September 30, 2022 and December 31, 2022, 2.75 to 1.00 as of March 31, 2023, and 2.50 to 1.00 as of each fiscal quarter thereafter, and ● Current Ratio of not less than 1.00 to 1.00 , each determined as of the last day of any fiscal quarter period. ​ ​ ​ The Term Loan Agreement also contains certain events of default, including non-payment; breaches of representations and warranties; non-compliance with covenants or other agreements; cross-default to material indebtedness; judgments; change of control; and voluntary and involuntary bankruptcy. ​ “Other noncurrent liabilities.” “Interest expense and other” Fair Value Measurements Paycheck Protection Program Loan “Gain (loss) on extinguishment of debt” in the consolidated statements of operations during the quarter ended September 30, 2021. During the first quarter of 2022, the

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2022
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	6. FAIR VALUE MEASUREMENTS The Company’s determination of fair value incorporates not only the credit standing of the counterparties involved in transactions with the Company resulting in receivables on the Company’s unaudited condensed consolidated balance sheets, but also the impact of the Company’s nonperformance risk on its own liabilities. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company separates the fair value of its financial instruments using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy assigns the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Level 2 measurements are inputs that are observable for assets or liabilities, either directly or indirectly, other than quoted prices included within Level 1. The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company classifies fair value balances based on the observability of those inputs. 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 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2022 ​ Level 1 Level 2 Level 3 Total Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Assets from commodity-based derivative contracts ​ $ — ​ $ 10,118 ​ $ — ​ $ 10,118 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities from commodity-based derivative contracts ​ $ — ​ $ 149,888 ​ $ — ​ $ 149,888 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2021 ​ Level 1 Level 2 Level 3 Total Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Assets from commodity-based derivative contracts ​ $ — ​ $ 3,898 ​ $ — ​ $ 3,898 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities from commodity-based 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 ​ ​ (2,595) Balance at June 30, 2022 ​ $ 1,408 ​ ​ Estimated fair value amounts have been determined at discrete points in time based on relevant market information. These estimates involve uncertainties and cannot be determined with precision. The estimated fair value of cash, cash equivalents and restricted cash, accounts receivable, and accounts payable approximates their carrying value due to their short- term nature. The estimated fair value of borrrowings under 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	6 Months Ended
	Jun. 30, 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 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” 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 June 30, 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 further described as follows: ● 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. ● Costless collars consist 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 following table summarizes the location and fair value amounts of all derivative contracts in the unaudited condensed consolidated balance sheets as of June 30, 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 June 30, 2022 December 31, 2021 Balance sheet location June 30, 2022 December 31, 2021 Commodity contracts ​ Current assets - assets from derivative contracts ​ $ 6,146 ​ $ 1,383 ​ Current liabilities - liabilities from derivative contracts ​ $ (91,750) ​ $ (58,322) Commodity contracts ​ Other noncurrent assets - assets from derivative contracts ​ ​ 3,972 ​ ​ 2,515 ​ Other noncurrent liabilities - liabilities from derivative contracts ​ ​ (58,138) ​ ​ (7,144) Total derivatives not designated as hedging contracts under ASC 815 ​ ​ ​ $ 10,118 ​ $ 3,898 ​ ​ ​ $ (149,888) ​ $ (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) ​ Amount of gain or (loss) ​ ​ ​ ​ recognized in income on ​ recognized in income on ​ ​ ​ ​ derivative contracts for the ​ derivative contracts for the Derivatives not designated ​ Location of gain or ​ Three Months Ended ​ Six Months Ended as hedging contracts ​ (loss) recognized in income ​ June 30, ​ June 30, under ASC 815 on derivative contracts ​ 2022 ​ 2021 ​ 2022 ​ 2021 Commodity contracts: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized gain (loss) on commodity contracts ​ Other income (expenses) - net gain (loss) on derivative contracts ​ $ 12,837 ​ $ (34,817) ​ $ (78,201) ​ $ (70,869) Realized gain (loss) on commodity contracts ​ Other income (expenses) - net gain (loss) on derivative contracts ​ ​ (44,747) ​ ​ (18,272) ​ ​ (77,567) ​ ​ (27,931) Total net gain (loss) on derivative contracts ​ ​ ​ $ (31,910) ​ $ (53,089) ​ $ (155,768) ​ $ (98,800) ​ At June 30, 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) ​ ​ 1,240,865 ​ ​ 2,000,965 ​ ​ 1,449,140 ​ ​ 1,028,160 ​ ​ 212,810 Weighted average price ​ $ 52.80 ​ ​ 65.75 ​ ​ 60.91 ​ ​ 59.69 ​ ​ 59.83 Crude oil basis swap: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (Bbls) ​ ​ 1,222,565 ​ ​ 1,937,165 ​ ​ 1,413,120 ​ ​ 1,000,360 ​ ​ 212,810 Weighted average price ​ $ 0.41 ​ ​ 0.25 ​ ​ 0.23 ​ ​ 0.17 ​ ​ 0.19 Crude oil WTI NYMEX roll: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (Bbls) ​ ​ 1,005,565 ​ ​ 1,937,165 ​ ​ 1,413,120 ​ ​ 1,000,360 ​ ​ 212,810 Weighted average price ​ $ 0.10 ​ ​ 0.50 ​ ​ 0.28 ​ ​ 0.10 ​ ​ 0.27 Natural gas fixed-price swap: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (MMBtu) ​ ​ 1,167,500 ​ ​ 3,957,750 ​ ​ 2,658,750 ​ ​ 2,428,050 ​ ​ ​ Weighted average price ​ $ 3.92 ​ ​ 3.36 ​ ​ 3.09 ​ ​ 3.00 ​ ​ ​ Natural gas producer two-way collar: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (MMBtu) ​ ​ 2,473,400 ​ ​ 1,742,100 ​ ​ 1,424,100 ​ ​ 555,700 ​ ​ 653,900 Weighted average price (call) ​ $ 3.97 ​ ​ 5.52 ​ ​ 4.70 ​ ​ 4.24 ​ ​ 4.45 Weighted average price (put) ​ $ 3.48 ​ ​ 3.86 ​ ​ 3.19 ​ ​ 3.28 ​ ​ 4.00 Natural gas basis swap: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (MMBtu) ​ ​ 3,640,900 ​ ​ 5,700,600 ​ ​ 4,084,350 ​ ​ 2,983,750 ​ ​ 653,900 Weighted average price ​ $ (0.51) ​ ​ (0.64) ​ ​ (0.64) ​ ​ (0.56) ​ ​ (0.96) ​ ​ ​ ​ 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 June 30, 2022 and December 31, 2021 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivative Assets ​ Derivative Liabilities Offsetting of Derivative Assets and Liabilities June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Amounts Presented in the Consolidated Balance Sheet ​ $ 10,118 ​ $ 3,898 ​ $ (149,888) ​ $ (65,466) Amounts Not Offset in the Consolidated Balance Sheet ​ ​ (10,118) ​ ​ (3,898) ​ ​ 10,118 ​ ​ 3,898 Net Amount ​ $ — ​ $ — ​ $ (139,770) ​ $ (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	6 Months Ended
	Jun. 30, 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 Liabilities incurred during the period ​ ​ 103 Liabilities settled during the period ​ ​ (132) Accretion expense ​ ​ 220 Liability for asset retirement obligations as of June 30, 2022 ​ $ 12,087 ​

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2022
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	9. COMMITMENTS AND CONTINGENCIES Commitments As of June 30, 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 June 30, 2022, the Company has an active drilling rig commitment of approximately $1.7 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 $1.7 million. In July 2022, we extended our drilling rig commitment through the fourth quarter of 2022. 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 June 30, 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	6 Months Ended
	Jun. 30, 2022
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY	10. STOCKHOLDERS’ EQUITY Incentive Plans "General and administrative" 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 generally vest and convert to shares three , depending on award, or when the performance or market conditions described further described in our Annual Report on Form 10-K occur. During the six months ended June 30, 2022, the Company granted 0.2 million shares of RSUs at a weighted average grant date fair value of $14.07 per share. At June 30, 2022, the Company had $4.1 million of unrecognized compensation expense related to non-vested RSU awards to be recognized over a weighted average period of 1.6 years. 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 from the date of grant. 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 approximately 6.9 million warrants (Series A, Series B and Series C Warrants and together, the Warrants) with corresponding initial exercise prices ranging from $40.17 to $60.45 per share, on a pro rata basis to pre-emergence holders of the predecessor Company’s common stock pursuant to the Company’s plan of reorganization. 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. Each Warrant represents the right to purchase one share of common stock at the applicable exercise prices, subject to adjustment as provided in the Warrant Agreement and increasing monthly at an annualized rate of 6.75%, compounding monthly. Each series of Warrants issued under the Warrant Agreement has a three-year term, expiring on October 8, 2022. As of June 30, 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 $46.15, $55.86 and $70.42 per share, respectively. ​

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 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 ​ Six Months Ended ​ ​ June 30, ​ June 30, ​ 2022 ​ 2021 ​ 2022 ​ 2021 Basic: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ​ $ 13,047 ​ $ (33,929) ​ $ (79,697) ​ $ (67,304) Weighted average basic number of common shares outstanding ​ ​ 16,338 ​ ​ 16,268 ​ ​ 16,320 ​ ​ 16,250 Basic net income (loss) per share of common stock ​ $ 0.80 ​ $ (2.09) ​ $ (4.88) ​ $ (4.14) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ​ $ 13,047 ​ $ (33,929) ​ $ (79,697) ​ $ (67,304) Weighted average basic number of common shares outstanding ​ ​ 16,338 ​ ​ 16,268 ​ ​ 16,320 ​ ​ 16,250 Common stock equivalent shares representing shares issuable upon: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercise of Series A Warrants ​ ​ Anti-dilutive ​ ​ Anti-dilutive ​ ​ Anti-dilutive ​ ​ Anti-dilutive Exercise of Series B Warrants ​ ​ Anti-dilutive ​ ​ Anti-dilutive ​ ​ Anti-dilutive ​ ​ Anti-dilutive Exercise of Series C Warrants ​ ​ Anti-dilutive ​ ​ Anti-dilutive ​ ​ Anti-dilutive ​ ​ Anti-dilutive Exercise of stock options ​ ​ Anti-dilutive ​ ​ Anti-dilutive ​ ​ Anti-dilutive ​ ​ Anti-dilutive Vesting of restricted stock units ​ ​ 172 ​ ​ Anti-dilutive ​ ​ Anti-dilutive ​ ​ Anti-dilutive Weighted average diluted number of common shares outstanding ​ ​ 16,510 ​ ​ 16,268 ​ ​ 16,320 ​ ​ 16,250 Diluted net income (loss) per share of common stock ​ $ 0.79 ​ $ (2.09) ​ $ (4.88) ​ $ (4.14) ​ Common stock equivalents, including warrants and options totaling 7.4 million for the quarter ended June 30, 2022 were not included in the computation of diluted earnings per share of common stock because the effect would have been anti-dilutive. Common stock equivalents, including warrants, options and restricted stock units, totaling Common stock equivalents, including warrants, options and restricted stock units, totaling 7.7 million for the six months ended June 30, 2021 were not included in the computation of diluted earnings per share of common stock because the effect would have been anti-dilutive.

ADDITIONAL FINANCIAL STATEMENT

ADDITIONAL FINANCIAL STATEMENT INFORMATION	6 Months Ended
	Jun. 30, 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): ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2022 December 31, 2021 Accounts receivable, net: ​ ​ ​ ​ ​ ​ Oil, natural gas and natural gas liquids revenues ​ $ 47,221 ​ $ 34,110 Joint interest accounts ​ ​ 5,590 ​ ​ 2,503 Other ​ ​ 191 ​ ​ 193 ​ ​ $ 53,002 ​ $ 36,806 Prepaids and other: ​ ​ ​ ​ ​ ​ Prepaids ​ $ 536 ​ $ 975 Funds in escrow ​ ​ 390 ​ ​ 390 Other ​ ​ 1 ​ ​ 1 ​ ​ $ 927 ​ $ 1,366 Other assets (Non-current): ​ ​ ​ ​ ​ ​ Investment in unconsolidated affiliate (1) ​ $ 1,653 ​ $ — Oil, natural gas and natural gas liquids revenues ​ ​ 417 ​ ​ 1,010 Funds in escrow ​ ​ 1,228 ​ ​ 1,227 Other ​ ​ 31 ​ ​ 33 ​ ​ $ 3,329 ​ $ 2,270 Accounts payable and accrued liabilities: ​ ​ ​ ​ ​ ​ Trade payables ​ $ 36,885 ​ $ 25,315 Accrued oil and natural gas capital costs ​ ​ 20,518 ​ ​ 4,881 Revenues and royalties payable ​ ​ 29,534 ​ ​ 22,763 Accrued interest expense ​ ​ 57 ​ ​ 42 Accrued employee compensation ​ ​ 2,073 ​ ​ 3,735 Accrued lease operating expenses ​ ​ 6,212 ​ ​ 6,090 Drilling advances from partners ​ ​ 2,055 ​ ​ — ​ ​ $ 97,334 ​ $ 62,826 ​ (1) In May 2022, we entered into a joint venture with Caracara Services, LLC (“Caracara”) to develop an acid gas treatment facility to remove hydrogen sulfide and carbon dioxide from our produced natural gas. We also entered into a gas treating agreement with the joint venture, Brazos Amine Treater, LLC (“BAT”), and have a minimum volume commitment of 20 MMcf per day, with certain rollover rights and start-up flexibility, for an initial term of five years from the in service date of the facility. Caracara will provide all necessary capital for the construction of the treatment facility. We contributed certain full cost pool assets to the joint venture in exchange for a retained 5% equity interest in BAT, an unconsolidated subsidiary. For accounting purposes, since we do not control the key activities (e.g. operating and maintaining the facility) which most significantly impact economic performance nor do we have the obligation to absorb losses or the right to receive benefits that could potentially be significant, we are not the primary beneficiary of BAT. Accordingly, we account for our investment in BAT using the equity method of accounting based on our ability to exercise significant influence , but not control, over the key activities of the joint venture. ​ ​ ​

FINANCIAL STATEMENT PRESENTAT_2

FINANCIAL STATEMENT PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 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. Interim period results are not necessarily indicative of results of operations or cash flows for the full year and accordingly, certain information normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States, has been condensed or omitted. 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. The Company has evaluated events or transactions through the date of issuance of these unaudited condensed consolidated financial statements.
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. ​ 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. Additionally, in periods of increasing commodity prices, the Company continues to be at risk to supply chain issues, including, but not limited to, labor shortages, pipe restrictions and potential delays in obtaining frac and/or drilling related equipment that could impact our business . During these periods, the costs and delivery times of rigs, equipment and supplies may also be substantially greater. The unavailability or high cost of drilling rigs and/or frac crews, pressure pumping equipment, tubulars and other supplies, and of qualified personnel can materially and adversely affect our operations and profitability. For further information regarding the actual and potential impacts of COVID-19 and supply chain issues 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” ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2022 ​ December 31, 2021 ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 43,640 ​ $ 46,864 Restricted cash ​ ​ 135 ​ ​ 1,495 Total cash, cash equivalents and restricted cash ​ $ 43,775 ​ $ 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 June 30, 2022 and December 31, 2021, allowances for doubtful accounts were approximately $0.2 million for both periods.
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 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 June 30, 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)	6 Months Ended
	Jun. 30, 2022
FINANCIAL STATEMENT PRESENTATION
Schedule Of Cash, Cash Equivalents And Restricted Cash	​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2022 ​ December 31, 2021 ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 43,640 ​ $ 46,864 Restricted cash ​ ​ 135 ​ ​ 1,495 Total cash, cash equivalents and restricted cash ​ $ 43,775 ​ $ 48,359

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Jun. 30, 2022
LEASES
Schedule of Company's leases	The table below summarizes the Company’s leases for the six months ended June 30, 2022 and 2021 (in thousands, except term and discount rate): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended ​ ​ ​ June 30, ​ ​ 2022 ​ 2021 Lease cost ​ ​ ​ ​ ​ ​ ​ ​ Operating lease costs ​ $ 196 ​ ​ $ 235 ​ Short-term lease costs ​ ​ 4,003 ​ ​ ​ 1,889 ​ Variable lease costs ​ ​ — ​ ​ ​ 229 ​ Total lease costs ​ $ 4,199 ​ ​ $ 2,353 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other information ​ ​ ​ ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities ​ ​ ​ ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ $ 196 ​ ​ $ 328 ​ Weighted-average remaining lease term - operating leases ​ ​ 1.4 years ​ ​ 0.2 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 June 30, 2022 are presented in the table below (in thousands): ​ ​ ​ ​ ​ ​ June 30, 2022 Remaining period in 2022 ​ $ 196 2023 ​ ​ 359 2024 ​ ​ — 2025 ​ ​ — 2026 ​ ​ — Thereafter ​ ​ — Total operating lease payments ​ ​ 555 Less: discount to present value ​ ​ 16 Total operating lease liabilities ​ ​ 539 Less: current operating lease liabilities ​ ​ 377 Noncurrent operating lease liabilities ​ $ 162

DEBT (Tables)

DEBT (Tables)	6 Months Ended
	Jun. 30, 2022
DEBT
Schedule of debt	As of June 30, 2022 and December 31, 2021, the Company’s debt consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2022 ​ ​ December 31, 2021 Term loan credit facility (1) ​ $ 203,372 ​ ​ $ 181,565 Paycheck Protection Program loan ​ ​ — ​ ​ ​ 85 Total debt, net ​ ​ 203,372 ​ ​ ​ 181,650 Current portion of long-term debt (2) ​ ​ 15,000 ​ ​ ​ 85 Total long-term debt, net ​ $ 188,372 ​ ​ $ 181,565 (1) Amount is net of $12.4 million and $14.2 million in unamortized debt issuance costs at June 30, 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. Refer to “Term Loan Credit Facility” below for further details . (2) As of June 30, 2022, amount represents amortization payments of $15.0 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)	6 Months Ended
	Jun. 30, 2022
FAIR VALUE MEASUREMENTS
Schedule of fair value of the Company's financial assets and liabilities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2022 ​ Level 1 Level 2 Level 3 Total Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Assets from commodity-based derivative contracts ​ $ — ​ $ 10,118 ​ $ — ​ $ 10,118 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities from commodity-based derivative contracts ​ $ — ​ $ 149,888 ​ $ — ​ $ 149,888 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2021 ​ Level 1 Level 2 Level 3 Total Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Assets from commodity-based derivative contracts ​ $ — ​ $ 3,898 ​ $ — ​ $ 3,898 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities from commodity-based 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 ​ ​ (2,595) Balance at June 30, 2022 ​ $ 1,408

DERIVATIVE AND HEDGING ACTIVI_2

DERIVATIVE AND HEDGING ACTIVITIES (Tables)	6 Months Ended
	Jun. 30, 2022
DERIVATIVE AND HEDGING ACTIVITIES
Summary of location and fair value of derivative contracts	The following table summarizes the location and fair value amounts of all derivative contracts in the unaudited condensed consolidated balance sheets as of June 30, 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 June 30, 2022 December 31, 2021 Balance sheet location June 30, 2022 December 31, 2021 Commodity contracts ​ Current assets - assets from derivative contracts ​ $ 6,146 ​ $ 1,383 ​ Current liabilities - liabilities from derivative contracts ​ $ (91,750) ​ $ (58,322) Commodity contracts ​ Other noncurrent assets - assets from derivative contracts ​ ​ 3,972 ​ ​ 2,515 ​ Other noncurrent liabilities - liabilities from derivative contracts ​ ​ (58,138) ​ ​ (7,144) Total derivatives not designated as hedging contracts under ASC 815 ​ ​ ​ $ 10,118 ​ $ 3,898 ​ ​ ​ $ (149,888) ​ $ (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) ​ Amount of gain or (loss) ​ ​ ​ ​ recognized in income on ​ recognized in income on ​ ​ ​ ​ derivative contracts for the ​ derivative contracts for the Derivatives not designated ​ Location of gain or ​ Three Months Ended ​ Six Months Ended as hedging contracts ​ (loss) recognized in income ​ June 30, ​ June 30, under ASC 815 on derivative contracts ​ 2022 ​ 2021 ​ 2022 ​ 2021 Commodity contracts: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized gain (loss) on commodity contracts ​ Other income (expenses) - net gain (loss) on derivative contracts ​ $ 12,837 ​ $ (34,817) ​ $ (78,201) ​ $ (70,869) Realized gain (loss) on commodity contracts ​ Other income (expenses) - net gain (loss) on derivative contracts ​ ​ (44,747) ​ ​ (18,272) ​ ​ (77,567) ​ ​ (27,931) Total net gain (loss) on derivative contracts ​ ​ ​ $ (31,910) ​ $ (53,089) ​ $ (155,768) ​ $ (98,800)
Schedule of open derivative contracts	At June 30, 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) ​ ​ 1,240,865 ​ ​ 2,000,965 ​ ​ 1,449,140 ​ ​ 1,028,160 ​ ​ 212,810 Weighted average price ​ $ 52.80 ​ ​ 65.75 ​ ​ 60.91 ​ ​ 59.69 ​ ​ 59.83 Crude oil basis swap: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (Bbls) ​ ​ 1,222,565 ​ ​ 1,937,165 ​ ​ 1,413,120 ​ ​ 1,000,360 ​ ​ 212,810 Weighted average price ​ $ 0.41 ​ ​ 0.25 ​ ​ 0.23 ​ ​ 0.17 ​ ​ 0.19 Crude oil WTI NYMEX roll: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (Bbls) ​ ​ 1,005,565 ​ ​ 1,937,165 ​ ​ 1,413,120 ​ ​ 1,000,360 ​ ​ 212,810 Weighted average price ​ $ 0.10 ​ ​ 0.50 ​ ​ 0.28 ​ ​ 0.10 ​ ​ 0.27 Natural gas fixed-price swap: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (MMBtu) ​ ​ 1,167,500 ​ ​ 3,957,750 ​ ​ 2,658,750 ​ ​ 2,428,050 ​ ​ ​ Weighted average price ​ $ 3.92 ​ ​ 3.36 ​ ​ 3.09 ​ ​ 3.00 ​ ​ ​ Natural gas producer two-way collar: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (MMBtu) ​ ​ 2,473,400 ​ ​ 1,742,100 ​ ​ 1,424,100 ​ ​ 555,700 ​ ​ 653,900 Weighted average price (call) ​ $ 3.97 ​ ​ 5.52 ​ ​ 4.70 ​ ​ 4.24 ​ ​ 4.45 Weighted average price (put) ​ $ 3.48 ​ ​ 3.86 ​ ​ 3.19 ​ ​ 3.28 ​ ​ 4.00 Natural gas basis swap: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (MMBtu) ​ ​ 3,640,900 ​ ​ 5,700,600 ​ ​ 4,084,350 ​ ​ 2,983,750 ​ ​ 653,900 Weighted average price ​ $ (0.51) ​ ​ (0.64) ​ ​ (0.64) ​ ​ (0.56) ​ ​ (0.96) ​ ​ ​ ​
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 June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Amounts Presented in the Consolidated Balance Sheet ​ $ 10,118 ​ $ 3,898 ​ $ (149,888) ​ $ (65,466) Amounts Not Offset in the Consolidated Balance Sheet ​ ​ (10,118) ​ ​ (3,898) ​ ​ 10,118 ​ ​ 3,898 Net Amount ​ $ — ​ $ — ​ $ (139,770) ​ $ (61,568)

ASSET RETIREMENT OBLIGATIONS (T

ASSET RETIREMENT OBLIGATIONS (Tables)	6 Months Ended
	Jun. 30, 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 Liabilities incurred during the period ​ ​ 103 Liabilities settled during the period ​ ​ (132) Accretion expense ​ ​ 220 Liability for asset retirement obligations as of June 30, 2022 ​ $ 12,087

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 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 ​ Six Months Ended ​ ​ June 30, ​ June 30, ​ 2022 ​ 2021 ​ 2022 ​ 2021 Basic: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ​ $ 13,047 ​ $ (33,929) ​ $ (79,697) ​ $ (67,304) Weighted average basic number of common shares outstanding ​ ​ 16,338 ​ ​ 16,268 ​ ​ 16,320 ​ ​ 16,250 Basic net income (loss) per share of common stock ​ $ 0.80 ​ $ (2.09) ​ $ (4.88) ​ $ (4.14) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ​ $ 13,047 ​ $ (33,929) ​ $ (79,697) ​ $ (67,304) Weighted average basic number of common shares outstanding ​ ​ 16,338 ​ ​ 16,268 ​ ​ 16,320 ​ ​ 16,250 Common stock equivalent shares representing shares issuable upon: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercise of Series A Warrants ​ ​ Anti-dilutive ​ ​ Anti-dilutive ​ ​ Anti-dilutive ​ ​ Anti-dilutive Exercise of Series B Warrants ​ ​ Anti-dilutive ​ ​ Anti-dilutive ​ ​ Anti-dilutive ​ ​ Anti-dilutive Exercise of Series C Warrants ​ ​ Anti-dilutive ​ ​ Anti-dilutive ​ ​ Anti-dilutive ​ ​ Anti-dilutive Exercise of stock options ​ ​ Anti-dilutive ​ ​ Anti-dilutive ​ ​ Anti-dilutive ​ ​ Anti-dilutive Vesting of restricted stock units ​ ​ 172 ​ ​ Anti-dilutive ​ ​ Anti-dilutive ​ ​ Anti-dilutive Weighted average diluted number of common shares outstanding ​ ​ 16,510 ​ ​ 16,268 ​ ​ 16,320 ​ ​ 16,250 Diluted net income (loss) per share of common stock ​ $ 0.79 ​ $ (2.09) ​ $ (4.88) ​ $ (4.14)

ADDITIONAL FINANCIAL STATEMEN_2

ADDITIONAL FINANCIAL STATEMENT INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2022
ADDITIONAL FINANCIAL STATEMENT INFORMATION
Schedule of additional financial statement information, balance sheet	Certain balance sheet amounts are comprised of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2022 December 31, 2021 Accounts receivable, net: ​ ​ ​ ​ ​ ​ Oil, natural gas and natural gas liquids revenues ​ $ 47,221 ​ $ 34,110 Joint interest accounts ​ ​ 5,590 ​ ​ 2,503 Other ​ ​ 191 ​ ​ 193 ​ ​ $ 53,002 ​ $ 36,806 Prepaids and other: ​ ​ ​ ​ ​ ​ Prepaids ​ $ 536 ​ $ 975 Funds in escrow ​ ​ 390 ​ ​ 390 Other ​ ​ 1 ​ ​ 1 ​ ​ $ 927 ​ $ 1,366 Other assets (Non-current): ​ ​ ​ ​ ​ ​ Investment in unconsolidated affiliate (1) ​ $ 1,653 ​ $ — Oil, natural gas and natural gas liquids revenues ​ ​ 417 ​ ​ 1,010 Funds in escrow ​ ​ 1,228 ​ ​ 1,227 Other ​ ​ 31 ​ ​ 33 ​ ​ $ 3,329 ​ $ 2,270 Accounts payable and accrued liabilities: ​ ​ ​ ​ ​ ​ Trade payables ​ $ 36,885 ​ $ 25,315 Accrued oil and natural gas capital costs ​ ​ 20,518 ​ ​ 4,881 Revenues and royalties payable ​ ​ 29,534 ​ ​ 22,763 Accrued interest expense ​ ​ 57 ​ ​ 42 Accrued employee compensation ​ ​ 2,073 ​ ​ 3,735 Accrued lease operating expenses ​ ​ 6,212 ​ ​ 6,090 Drilling advances from partners ​ ​ 2,055 ​ ​ — ​ ​ $ 97,334 ​ $ 62,826 ​ (1) In May 2022, we entered into a joint venture with Caracara Services, LLC (“Caracara”) to develop an acid gas treatment facility to remove hydrogen sulfide and carbon dioxide from our produced natural gas. We also entered into a gas treating agreement with the joint venture, Brazos Amine Treater, LLC (“BAT”), and have a minimum volume commitment of 20 MMcf per day, with certain rollover rights and start-up flexibility, for an initial term of five years from the in service date of the facility. Caracara will provide all necessary capital for the construction of the treatment facility. We contributed certain full cost pool assets to the joint venture in exchange for a retained 5% equity interest in BAT, an unconsolidated subsidiary. For accounting purposes, since we do not control the key activities (e.g. operating and maintaining the facility) which most significantly impact economic performance nor do we have the obligation to absorb losses or the right to receive benefits that could potentially be significant, we are not the primary beneficiary of BAT. Accordingly, we account for our investment in BAT using the equity method of accounting based on our ability to exercise significant influence , but not control, over the key activities of the joint venture. ​

FINANCIAL STATEMENT PRESENTAT_4

FINANCIAL STATEMENT PRESENTATION (Details) $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($) segment	Dec. 31, 2021 USD ($)
Basis of Presentation and Principles of Consolidation
Number of operating segments | segment	1
Allowance for doubtful accounts | $	$ 0.2	$ 0.2

FINANCIAL STATEMENT PRESENTAT_5

FINANCIAL STATEMENT PRESENTATION- Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
FINANCIAL STATEMENT PRESENTATION
Cash and cash equivalents	$ 43,640	$ 46,864
Restricted cash	135	1,495
Total cash, cash equivalents and restricted cash	$ 43,775	$ 48,359	$ 1,458	$ 4,295

LEASES (Details)

LEASES (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Lease cost
Operating lease costs	$ 196	$ 235
Short-term lease costs	4,003	1,889
Variable lease costs		229
Total lease costs	4,199	2,353
Other information
Operating cash flows from operating leases	$ 196	$ 328
Weighted-average remaining lease term - operating leases	1 year 4 months 24 days	2 months 12 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	Jun. 30, 2022	Dec. 31, 2021
Future minimum lease payments for non-cancellable operating leases
Remaining period in 2022	$ 196
2023	359
Total operating lease payment	555
Less: discount to present value	16
Total operating lease liabilities	539
Less: current operating lease liabilities	377	$ 369
Noncurrent operating lease liabilities	$ 162	$ 352

OPERATING REVENUES - Revenue Re

OPERATING REVENUES - Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Disaggregation of operating revenue
Total oil, natural gas and natural gas liquids sales	$ 101,290	$ 64,103	$ 182,698	$ 119,369
Other	221	263	415	515
Total operating revenues	101,511	64,366	183,113	119,884
Oil
Disaggregation of operating revenue
Total oil, natural gas and natural gas liquids sales	73,944	51,935	136,468	93,205
Natural gas
Disaggregation of operating revenue
Total oil, natural gas and natural gas liquids sales	14,759	5,317	23,640	14,404
NGLs
Disaggregation of operating revenue
Total oil, natural gas and natural gas liquids sales	12,587	$ 6,851	22,590	$ 11,760
Accounts receivable
Disaggregation of operating revenue
Due from contracts with customers	$ 47,600		$ 47,600		$ 35,100

OIL AND NATURAL GAS PROPERTIES

OIL AND NATURAL GAS PROPERTIES (Details)	6 Months Ended
	Jun. 30, 2022 $ / MMBTU $ / bbl	Jun. 30, 2021 $ / MMBTU $ / bbl
Ceiling Limitation Disclosures
First-day-of-month 12-month average price for natural gas (in $/MMBtu) | $ / MMBTU	5.13	2.43
First-day-of-month 12-month average price for crude oil used in ceiling test impairment (in dollars per barrel) | $ / bbl	85.82	49.72

DEBT (Details)

DEBT (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Nov. 24, 2021
Current and long-term debt
Debt	$ 203,372	$ 181,650
Current portion of long-term debt	15,000	85
Total long-term debt	188,372	181,565
Unamortized premium related to debt issued	15,000
Term loan credit facility
Current and long-term debt
Debt	203,372	181,565
Unamortized debt issuance costs	12,400	14,200
Allocated to the change of control call option embedded derivative	4,200	4,200
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
Paycheck Protection Program Loan [Member]
Current and long-term debt
Debt		85
Current portion of long-term debt	$ 15,000	$ 85

DEBT - Term Loan Credit Facilit

DEBT - Term Loan Credit Facility (Details) - USD ($) $ in Millions		6 Months Ended	7 Months Ended
	Nov. 24, 2021	Jun. 30, 2022	Jun. 30, 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%
Credit facility term			18 months
Maturity date		Nov. 24, 2025
Amount outstanding		$ 220	$ 220
Letters of credit outstanding		$ 1.3	1.3
Covenant compliance		As of June 30, 2022, the Company was in compliance with the financial covenants under the Term Loan Agreement.
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%
Term loan credit facility | Maximum
Debt Instrument [Line Items]
Current ratio	1%
Term loan credit facility | Prior to February 15, 2020
Debt Instrument [Line Items]
Interest plus		2%
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%
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%
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%
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 June 30, 2022 | Minimum
Debt Instrument [Line Items]
Asset coverage ratio	1%
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%
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%
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%
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%
Term loan credit facility | Fiscal quarter ending September 30, 2022 and December 31, 2022 | Maximum
Debt Instrument [Line Items]
Net Leverage Ratio	3%
Term loan credit facility | Fiscal quarter ending March 31, 2023 | Minimum
Debt Instrument [Line Items]
Net Leverage Ratio	1%
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%
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]
Borrowing capacity available		$ 15	$ 15

DEBT - Senior Facility (Details

DEBT - Senior Facility (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
DEBT
Debt	$ 203,372	$ 181,650

DEBT - Paycheck Protection Prog

DEBT - Paycheck Protection Program Loan (Details) - USD ($) $ in Thousands			3 Months Ended	6 Months Ended
	Aug. 13, 2021	Apr. 16, 2020	Mar. 31, 2022	Jun. 30, 2022	Jun. 30, 2021
Current and long-term debt
Proceeds from issuance of debt				$ 20,000	$ 82,000
Paycheck Protection Program Loan [Member]
Current and long-term debt
Proceeds from issuance of debt		$ 2,200
Principal repaid			$ 200
Principal amount	$ 200
Forgiveness	$ 2,000
Gain (loss) on extinguishment of debt				$ 2,100

DEBT - Debt Maturities and Debt

DEBT - Debt Maturities and Debt Issuance Costs (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	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	$ 12,400	$ 14,200

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Assets
Asset transfers between levels	$ 0
Liabilities
Liability transfers between levels	0
Recurring | Total
Assets
Receivables from derivative contracts	10,118	$ 3,898
Liabilities
Liabilities from derivative contracts	149,888	65,466
Recurring | Level 2
Assets
Receivables from derivative contracts	10,118	3,898
Liabilities
Liabilities from derivative contracts	$ 149,888	$ 65,466

FAIR VALUE MEASUREMENTS - Chang

FAIR VALUE MEASUREMENTS - Change of Control Call Option (Details) - Change of Control Call Option $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
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	(2,595)
Balance at the end of the period	$ 1,408

DERIVATIVE AND HEDGING ACTIVI_3

DERIVATIVE AND HEDGING ACTIVITIES - (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Derivative and hedging activities
Asset derivative contracts	$ 10,118	$ 3,898
Liability derivative contracts	(149,888)	(65,466)
Derivatives not designated as hedging contracts
Derivative and hedging activities
Asset derivative contracts	10,118	3,898
Liability derivative contracts	(149,888)	(65,466)
Derivatives not designated as hedging contracts | Commodity contracts | Current assets - receivables from derivative contracts
Derivative and hedging activities
Asset derivative contracts	6,146	1,383
Derivatives not designated as hedging contracts | Commodity contracts | Other noncurrent assets - receivables from derivative contracts
Derivative and hedging activities
Asset derivative contracts	3,972	2,515
Derivatives not designated as hedging contracts | Commodity contracts | Current liabilities - liabilities from derivative contracts
Derivative and hedging activities
Liability derivative contracts	(91,750)	(58,322)
Derivatives not designated as hedging contracts | Commodity contracts | Other noncurrent liabilities - liabilities from derivative contracts
Derivative and hedging activities
Liability derivative contracts	$ (58,138)	$ (7,144)

DERIVATIVE AND HEDGING ACTIVI_4

DERIVATIVE AND HEDGING ACTIVITIES - Realized Unrealized (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Derivative and hedging activities
Total net gain (loss) on derivative contracts	$ (31,910)	$ (53,089)	$ (155,768)	$ (98,800)
Derivatives not designated as hedging contracts | Commodity contracts
Derivative and hedging activities
Total net gain (loss) on derivative contracts	(31,910)	(53,089)	(155,768)	(98,800)
Derivatives not designated as hedging contracts | Commodity contracts | Other Income Expense
Derivative and hedging activities
Unrealized gain (loss) on commodity contracts	12,837	(34,817)	(78,201)	(70,869)
Realized gain (loss) on commodity contracts	$ (44,747)	$ (18,272)	$ (77,567)	$ (27,931)

DERIVATIVE AND HEDGING ACTIVI_5

DERIVATIVE AND HEDGING ACTIVITIES - Open Contracts (Details)	6 Months Ended
	Jun. 30, 2022 MMBTU $ / MMBTU $ / bbl bbl
January 2022 - December 2022 | Fixed Swap | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	1,240,865
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	52.80
January 2022 - December 2022 | Fixed Swap | Natural Gas [Member]
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	1,167,500
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)	3.92
January 2022 - December 2022 | Basis Swap | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	1,222,565
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	0.41
January 2022 - December 2022 | Basis Swap | Natural Gas [Member]
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	3,640,900
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)	(0.51)
January 2022 - December 2022 | WTI NYMEX Roll | Crude oil | Maximum
Derivative and hedging activities
Volume in Bbl's | bbl	1,005,565
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	0.10
January 2022 - December 2022 | Collars | Natural Gas [Member]
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	2,473,400
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)	3.97
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)	3.48
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	3,957,750
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)	3.36
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	5,700,600
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)	(0.64)
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	1,742,100
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)	5.52
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)	3.86
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)	2,658,750
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)	3.09
January 2024 - December 2024 | Basis Swap | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	1,413,120
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	4,084,350
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)	(0.64)
January 2024 - December 2024 | WTI NYMEX Roll | Crude oil | Maximum
Derivative and hedging activities
Volume in Bbl's | bbl	1,413,120
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	0.28
January 2024 - December 2024 | Collars | Natural Gas [Member]
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	1,424,100
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)	4.70
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)	3.19
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	2,428,050
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)	3
January 2025 - December 2025 | Basis Swap | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	1,000,360
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	0.17
January 2025 - December 2025 | Basis Swap | Natural Gas [Member]
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	2,983,750
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)	(0.56)
January 2025 - December 2025 | WTI NYMEX Roll | Crude oil | Maximum
Derivative and hedging activities
Volume in Bbl's | bbl	1,000,360
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	555,700
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)	4.24
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)	3.28
January 2026 - December 2026 | Fixed Swap | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	212,810
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	59.83
January 2026 - December 2026 | Basis Swap | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	212,810
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	0.19
January 2026 - December 2026 | Basis Swap | Natural Gas [Member]
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	653,900
January 2026 - December 2026 | Basis Swap | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	(0.96)
January 2026 - December 2026 | WTI NYMEX Roll | Crude oil | Maximum
Derivative and hedging activities
Volume in Bbl's | bbl	212,810
January 2026 - December 2026 | 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 2026 - December 2026 | Collars | Natural Gas [Member]
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	653,900
January 2026 - December 2026 | Call option | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	4.45
January 2026 - December 2026 | Put options | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	4

DERIVATIVE AND HEDGING ACTIVI_6

DERIVATIVE AND HEDGING ACTIVITIES - Netting Arrangements (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Derivative Assets
Gross Amounts Presented in the Consolidated Balance Sheet	$ 10,118	$ 3,898
Amounts Not Offset in the Consolidated Balance Sheet	(10,118)	(3,898)
Net Amount	0	0
Derivative Liabilities
Gross Amounts Presented in the Consolidated Balance Sheet	(149,888)	(65,466)
Amounts Not Offset in the Consolidated Balance Sheet	10,118	3,898
Net Amount	$ (139,770)	$ (61,568)

ASSET RETIREMENT OBLIGATIONS (D

ASSET RETIREMENT OBLIGATIONS (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Activity related to ARO liability
Liability for asset retirement obligations at the beginning of the period	$ 11,896
Liabilities incurred during the period	103
Liabilities settled and divested	(132)
Accretion expense	220
Liability for asset retirement obligations at the end of the period	$ 12,087

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($) contract
Purchase commitments related to equipment
Total	$ 1.7
Remaining commitment	3.3
Drilling rig commitment	1.7
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) - $ / shares	Oct. 08, 2019	Jun. 30, 2022
Stockholders' equity
Number of shares of common stock that can be purchased from warrants		1
Warrants issued	6,900,000
Annualized rate of increase to the strike price of warrants issued under the warrants agreement.		6.75%
Warrant term (in years)		3 years
Warrant maturity date		Oct. 08, 2022
Minimum
Stockholders' equity
Exercise price (in dollars per share)	$ 40.17
Maximum
Stockholders' equity
Exercise price (in dollars per share)	$ 60.45
Series A Warrants
Stockholders' equity
Exercise price (in dollars per share)		$ 46.15
Number of warrants issued		1,800,000
Series B Warrants
Stockholders' equity
Exercise price (in dollars per share)		$ 55.86
Number of warrants issued		2,200,000
Series C Warrants
Stockholders' equity
Exercise price (in dollars per share)		$ 70.42
Number of warrants issued		2,900,000

STOCKHOLDERS' EQUITY - Incentiv

STOCKHOLDERS' EQUITY - Incentive Plans (Details) $ / shares in Units, shares in Millions, $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($) $ / shares shares	Jun. 30, 2021 USD ($)	Jan. 29, 2020 shares
General and administrative
Stock-based compensation
Compensation expense recorded | $	$ 0.9	$ 1.1
Restricted Stock
Number of Shares
Granted (in shares)	0.2
Weighted Average Grant Date fair Value Per Share
Granted (in dollars per share) | $ / shares	$ 14.07
2020 Incentive Plan | Common Stock
Stock-based compensation
Aggregate number of shares available			1.8
2020 Incentive Plan | Common Stock | Maximum
Stock-based compensation
Maximum number of shares that remained reserved for issuance under the Plan	0.3
2020 Incentive Plan | Stock options
Stock-based compensation
Percentage of awards vesting on the annual anniversary date of the grant	25

STOCKHOLDERS' EQUITY - Stock Op

STOCKHOLDERS' EQUITY - Stock Options (Details) - Stock options $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($) shares
Stock-based compensation
Vesting period	4 years
Expiration term	7 years
Unrecognized compensation expense stock option | $	$ 0.3
Weighted average remaining vesting period	1 year 1 month 6 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

STOCKHOLDERS' EQUITY - Restrict

STOCKHOLDERS' EQUITY - Restricted Stock (Details) - Restricted Stock $ / shares in Units, shares in Millions, $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($) $ / shares shares
Stock-based compensation
Number of shares granted | shares	0.2
Granted (in dollars per share) | $ / shares	$ 14.07
Unrecognized compensation expense other than options | $	$ 4.1
Weighted average remaining vesting period	1 year 7 months 6 days
Minimum
Stock-based compensation
Vesting period	3 years
Maximum
Stock-based compensation
Vesting period	4 years

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Basic:
Net income (loss) available to common stockholders	$ 13,047	$ (33,929)	$ (79,697)	$ (67,304)
Weighted average basic number of common shares outstanding	16,338	16,268	16,320	16,250
Basic net income (loss) per share of common share (in dollars per share)	$ 0.80	$ (2.09)	$ (4.88)	$ (4.14)
Diluted:
Net income (loss) available to common stockholders	$ 13,047	$ (33,929)	$ (79,697)	$ (67,304)
Weighted average basic number of common shares outstanding	16,338	16,268	16,320	16,250
Common stock equivalent shares representing shares included upon Vesting of restricted shares	172
Weighted average diluted number of common shares outstanding	16,510	16,268	16,320	16,250
Diluted net income (loss) per share of common stock (in dollars per share)	$ 0.79	$ (2.09)	$ (4.88)	$ (4.14)
Common stock equivalents excluded from computation of diluted earnings per share of common stock because of anti-dilutive effect	7,400		7,700	7,700

ADDITIONAL FINANCIAL STATEMEN_3

ADDITIONAL FINANCIAL STATEMENT INFORMATION (Details) $ in Thousands	1 Months Ended
	May 31, 2022 MMcf / d	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Accounts receivable:
Oil, natural gas and natural gas liquids revenues		$ 47,221	$ 34,110
Joint interest accounts		5,590	2,503
Other		191	193
Total		53,002	36,806
Prepaids and other:
Prepaids		536	975
Funds in escrow		390	390
Other		1	1
Total		927	1,366
Other assets:
Investment in Unconsolidated Affiliate		1,653
Oil, natural gas and natural gas liquids revenues		417	1,010
Funds in escrow		1,228	1,227
Other		31	33
Total		3,329	2,270
Accounts payable and accrued liabilities:
Trade payables		36,885	25,315
Accrued oil and natural gas capital costs		20,518	4,881
Revenues and royalties payable		29,534	22,763
Accrued interest expense		57	42
Accrued employee compensation		2,073	3,735
Accrued lease operating expenses		6,212	6,090
Drilling advances from partners		2,055
Total		$ 97,334	$ 62,826
Minimum volume commitment | MMcf / d	20
Volume commitment term	5 years
Brazos Amine Treater, LLC [Member]
Accounts payable and accrued liabilities:
Equity interest	5%