Battalion Oil (BATL) 10-Q 14 Aug 24 2024 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2024	Aug. 08, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2024
Entity File Number	001-35467
Entity Registrant Name	Battalion Oil Corp
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-0700684
Entity Address, Address Line One	820 Gessner Road
Entity Address, Address Line Two	Suite 1100
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77024
City Area Code	832
Local Phone Number	538-0300
Title of 12(b) Security	Common Stock, par value $0.0001
Trading Symbol	BATL
Security Exchange Name	NYSEAMER
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		16,456,563
Entity Central Index Key	0001282648
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Oil, natural gas and natural gas liquids sales:
Total oil, natural gas and natural gas liquids sales	$ 49,083	$ 53,885	$ 98,615	$ 118,158
Other	21	387	359	1,256
Total operating revenues	49,104	54,272	98,974	119,414
Production:
Lease operating	11,005	11,365	22,591	23,056
Workover and other	951	2,634	1,839	3,969
Taxes other than income	3,349	3,180	6,340	6,370
Gathering and other	12,126	16,828	29,412	33,345
General and administrative	3,340	5,243	7,411	10,380
Depletion, depreciation and accretion	13,213	14,713	26,238	30,861
Total operating expenses	43,984	53,963	93,831	107,981
Income from operations	5,120	309	5,143	11,433
Other income (expenses):
Net gain (loss) on derivative contracts	1,223	4,473	(22,964)	23,946
Interest expense and other	(6,448)	(9,530)	(13,486)	(17,316)
Total other (expenses) income	(5,225)	(5,057)	(36,450)	6,630
(Loss) income before income taxes	(105)	(4,748)	(31,307)	18,063
Income tax benefit (provision)	0	0	0	0
Net (loss) income	(105)	(4,748)	(31,307)	18,063
Preferred dividends	(8,586)	(997)	(14,218)	(2,489)
Net (loss) income available to common stockholders	$ (8,691)	$ (5,745)	$ (45,525)	$ 15,574
Net (loss) income per share of common stock available to common stockholders:
Basic (in dollars per share)	$ (0.53)	$ (0.35)	$ (2.77)	$ 0.87
Diluted (in dollars per share)	$ (0.53)	$ (0.35)	$ (2.77)	$ 0.86
Weighted average common shares outstanding:
Basic (in shares)	16,457	16,457	16,457	16,425
Diluted (in shares)	16,457	16,457	16,457	16,520
Oil
Oil, natural gas and natural gas liquids sales:
Total oil, natural gas and natural gas liquids sales	$ 45,699	$ 46,168	$ 88,128	$ 100,383
Natural gas
Oil, natural gas and natural gas liquids sales:
Total oil, natural gas and natural gas liquids sales	(2,119)	2,060	(72)	4,960
Natural gas liquids
Oil, natural gas and natural gas liquids sales:
Total oil, natural gas and natural gas liquids sales	$ 5,503	$ 5,657	$ 10,559	$ 12,815

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 54,430	$ 57,529
Accounts receivable, net	24,894	23,021
Assets from derivative contracts	5,869	8,992
Restricted cash	91	90
Prepaids and other	821	907
Total current assets	86,105	90,539
Oil and natural gas properties (full cost method):
Evaluated	791,908	755,482
Unevaluated	51,896	58,909
Gross oil and natural gas properties	843,804	814,391
Less: accumulated depletion	(471,413)	(445,975)
Net oil and natural gas properties	372,391	368,416
Other operating property and equipment:
Other operating property and equipment	4,657	4,640
Less: accumulated depreciation	(2,141)	(1,817)
Net other operating property and equipment	2,516	2,823
Other noncurrent assets:
Assets from derivative contracts	4,614	4,877
Operating lease right of use assets	749	1,027
Other assets	20,916	17,656
Total assets	487,291	485,338
Current liabilities:
Accounts payable and accrued liabilities	76,456	66,525
Liabilities from derivative contracts	25,554	17,191
Current portion of long-term debt	52,606	50,106
Operating lease liabilities	634	594
Total current liabilities	155,250	134,416
Long-term debt, net	101,185	140,276
Other noncurrent liabilities:
Liabilities from derivative contracts	19,635	16,058
Asset retirement obligations	18,135	17,458
Operating lease liabilities	162	490
Other	10,719	2,084
Commitments and contingencies (Note 8)
Temporary equity:
Redeemable convertible preferred stock: 138,000 shares and 98,000 shares of $0.0001 par value authorized, issued and outstanding as of June 30, 2024 and December 31, 2023, respectively	159,535	106,535
Stockholders' equity:
Common stock: 100,000,000 shares of $0.0001 par value authorized; 16,456,563 shares issued and outstanding as of June 30, 2024 and December 31, 2023	2	2
Additional paid-in capital	306,969	321,012
Accumulated deficit	(284,301)	(252,993)
Total stockholders' equity	22,670	68,021
Total liabilities, temporary equity and stockholders' equity	$ 487,291	$ 485,338

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Stockholders' equity:
Preferred stock, shares authorized	138,000	98,000
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares issued	138,000	98,000
Preferred stock, shares outstanding	138,000	98,000
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	16,456,563	16,456,563
Common stock, shares outstanding	16,456,563	16,456,563

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)	Total
Balances at Dec. 31, 2022	$ 2	$ 334,571	$ (249,945)	$ 84,628
Balances (in shares) at Dec. 31, 2022	16,345
Increase (Decrease) in Stockholders' Equity
Net Income (Loss)			22,811	22,811
Deemed dividends for preferred stock		(1,492)		(1,492)
Long-term incentive plan vestings (in shares)	159
Tax withholding on vesting of restricted stock units		(454)		(454)
Tax withholding on vesting of restricted stock units (in shares)	(47)
Stock-based compensation and other		327		327
Balances at Mar. 31, 2023	$ 2	332,952	(227,134)	105,820
Balances (in shares) at Mar. 31, 2023	16,457
Balances at Dec. 31, 2022	$ 2	334,571	(249,945)	84,628
Balances (in shares) at Dec. 31, 2022	16,345
Increase (Decrease) in Stockholders' Equity
Net Income (Loss)				18,063
Balances at Jun. 30, 2023	$ 2	331,201	(231,882)	99,321
Balances (in shares) at Jun. 30, 2023	16,457
Balances at Mar. 31, 2023	$ 2	332,952	(227,134)	105,820
Balances (in shares) at Mar. 31, 2023	16,457
Increase (Decrease) in Stockholders' Equity
Net Income (Loss)			(4,748)	(4,748)
Deemed dividends for preferred stock		(997)		(997)
Stock-based compensation and other		(754)		(754)
Balances at Jun. 30, 2023	$ 2	331,201	(231,882)	99,321
Balances (in shares) at Jun. 30, 2023	16,457
Increase (Decrease) in Stockholders' Equity
Net Income (Loss)			(53,799)	(53,799)
Deemed dividends for preferred stock		(3,863)		(3,863)
Stock-based compensation and other		(827)		(827)
Balances at Sep. 30, 2023	$ 2	326,511	(285,681)	40,832
Balances (in shares) at Sep. 30, 2023	16,457
Increase (Decrease) in Stockholders' Equity
Net Income (Loss)			32,688	32,688
Deemed dividends for preferred stock		(5,695)		(5,695)
Stock-based compensation and other		196		196
Balances at Dec. 31, 2023	$ 2	321,012	(252,993)	68,021
Balances (in shares) at Dec. 31, 2023	16,457
Increase (Decrease) in Stockholders' Equity
Net Income (Loss)			(31,203)	(31,203)
Deemed dividends for preferred stock		(5,632)		(5,632)
Stock-based compensation and other		127		127
Balances at Mar. 31, 2024	$ 2	315,507	(284,196)	31,313
Balances (in shares) at Mar. 31, 2024	16,457
Balances at Dec. 31, 2023	$ 2	321,012	(252,993)	68,021
Balances (in shares) at Dec. 31, 2023	16,457
Increase (Decrease) in Stockholders' Equity
Net Income (Loss)				(31,307)
Balances at Jun. 30, 2024	$ 2	306,969	(284,301)	22,670
Balances (in shares) at Jun. 30, 2024	16,457
Balances at Mar. 31, 2024	$ 2	315,507	(284,196)	31,313
Balances (in shares) at Mar. 31, 2024	16,457
Increase (Decrease) in Stockholders' Equity
Net Income (Loss)			(105)	(105)
Deemed dividends for preferred stock		(8,586)		(8,586)
Stock-based compensation and other		48		48
Balances at Jun. 30, 2024	$ 2	$ 306,969	$ (284,301)	$ 22,670
Balances (in shares) at Jun. 30, 2024	16,457

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities:
Net (loss) income	$ (31,307)	$ 18,063
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depletion, depreciation and accretion	26,238	30,861
Stock-based compensation, net	135	(545)
Unrealized loss (gain) on derivative contracts	15,327	(23,336)
Amortization/accretion of financing related costs	3,390	3,843
Accrued settlements on derivative contracts	774	(929)
Change in fair value of embedded derivative liability	(1,365)	(704)
Other	179	53
Change in assets and liabilities:
Accounts receivable	(445)	15,965
Prepaids and other	85	81
Accounts payable and accrued liabilities	20,730	(34,703)
Net cash provided by operating activities	33,741	8,649
Cash flows from investing activities:
Oil and natural gas capital expenditures	(44,849)	(32,633)
Proceeds received from sale of oil and natural gas assets	7,015	1,189
Acquisition of oil and natural gas properties	(47)
Contract asset	(7,795)
Other operating property and equipment capital expenditures	(17)	(284)
Other	(13)	(11)
Net cash used in investing activities	(45,706)	(31,739)
Cash flows from financing activities:
Repayments of borrowings	(39,853)	(15,043)
Payment of debt financing costs	(129)
Proceeds from issuance of preferred stock	38,849	24,375
Merger deposit	10,000
Other		(454)
Net cash provided by financing activities	8,867	8,878
Net decrease in cash, cash equivalents and restricted cash	(3,098)	(14,212)
Cash, cash equivalents and restricted cash at beginning of period	57,619	32,816
Cash, cash equivalents and restricted cash at end of period	54,521	18,604
Supplemental cash flow information:
Cash paid for interest	$ 12,512	$ 14,561

FINANCIAL STATEMENT PRESENTATIO

FINANCIAL STATEMENT PRESENTATION	6 Months Ended
	Jun. 30, 2024
SUMMARY OF SIGNIFICANT EVENTS AND ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT EVENTS AND ACCOUNTING POLICIES	1. FINANCIAL STATEMENT PRESENTATION Basis of Presentation and Principles of Consolidation Battalion Oil Corporation (“Battalion” or the “Company”) 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 (“GAAP”), 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 (the “SEC”) on April 1, 2024. Please refer to the notes in the Annual Report on Form 10-K for the year ended December 31, 2023 when reviewing interim financial results. The Company has evaluated events or transactions through the date of issuance of these unaudited condensed consolidated financial statements. Liquidity and Cash Requirements The accompanying unaudited condensed consolidated financial statements are prepared in accordance with GAAP applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. ​ The Company’s ability to execute its operating strategy is dependent on its ability to maintain adequate liquidity and continue to access capital, as needed. The Company generated a net loss of $45.5 million for the six months ended June 30, 2024 and had a negative working capital of $69.1 million as of June 30, 2024. The Company’s current business estimates and forecasts indicate that it will require additional liquidity to continue its operations, satisfy debt payment requirements and meet its debt covenant requirements for the next 12 months from the issuance of these condensed consolidated financial statements. In response to these events and conditions, the Company has continued to execute on a plan to reduce operating and capital costs to improve cash flow. The Company also has obtained a support letter from its three largest current related party investors to purchase additional preferred equity securities in an amount up to $30.0 million over the next 12 months. Management believes that based upon its operational forecasts, cash and cash equivalents on hand, cost reduction measures and the commitment of the investors to purchase up to $30.0 million in additional preferred equity, it is probable the Company will have sufficient liquidity to fund its operations, meet its continuous drilling obligations and near-term debt payment requirements and maintain compliance with its debt covenants, as described in Note 5, “ Debt, Use of Estimates The preparation of the Company’s unaudited condensed consolidated financial statements in conformity with GAAP 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 (“AROs”), 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 The Company considers all highly liquid short-term investments with a maturity of three months or less at the time of purchase to be cash equivalents. These investments are carried at cost, which approximates fair value. Amounts in the unaudited condensed consolidated balance sheets included in “Cash and cash equivalents” “Restricted cash” ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2024 ​ December 31, 2023 ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 54,430 ​ $ 57,529 Restricted cash ​ ​ 91 ​ ​ 90 Total cash, cash equivalents and restricted cash ​ $ 54,521 ​ $ 57,619 ​ Restricted cash consists of funds to collateralize lines of credit. 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. Payment of the Company’s accounts receivable is typically received within 30-60 days. The Company’s historical credit losses have been de minimis and are expected to remain so in the future assuming no substantial changes to the business or creditworthiness of the Company’s counterparties. 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, 2024, the Company’s derivative counterparties include two major financial institutions, both of which are secured lenders under the Amended Term Loan Agreement (as defined in Note 4, “ Debt 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) ASU No. 2022-06, “ Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures

OPERATING REVENUES

OPERATING REVENUES	6 Months Ended
	Jun. 30, 2024
OPERATING REVENUES
OPERATING REVENUES	2. OPERATING REVENUES Substantially all of the Company’s oil, natural gas and natural gas liquids (“NGLs”) revenues are derived from the Delaware Basin in Pecos, Reeves, Ward and Winkler Counties, Texas. Revenue is presented disaggregated in the unaudited condensed consolidated 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 and (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 each unit (e.g. barrel of oil, Mcf of gas) of commodity to the customer. Revenue is measured based on contract consideration allocated to each unit of commodity 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 $21.2 million and $19.8 million as of June 30, 2024 and December 31, 2023, respectively, as “Accounts receivable, net” For additional information regarding the Company’s operating revenues, refer to its Annual Report on Form 10-K for the year ended December 31, 2023.

OIL AND NATURAL GAS PROPERTIES

OIL AND NATURAL GAS PROPERTIES	6 Months Ended
	Jun. 30, 2024
OIL AND NATURAL GAS PROPERTIES
OIL AND NATURAL GAS PROPERTIES	3. 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. At June 30, 2024 and 2023, using first-day-of-the-month average West Texas Intermediate (“WTI”) crude oil spot prices and Henry Hub natural gas prices for the respective prior 12-month periods, the Company’s net book value of oil and natural gas properties at June 30, 2024 and 2023, did not exceed the ceiling test value of the Company’s reserves. Oil and natural gas prices utilized for the ceiling test calculations as of June 30, 2024 and 2023 were $79.45 per barrel and $83.23 per barrel of oil, respectively, and $2.32 per MMBtu and $4.76 per MMBtu for natural gas, respectively. Changes in commodity prices, production rates, levels of reserves, future development costs, transfers of unevaluated properties to the full cost pool, capital spending, and other factors will determine the Company’s ceiling test calculation and impairment analyses in future periods. of the Company’s oil and natural gas properties

DEBT

DEBT	6 Months Ended
	Jun. 30, 2024
DEBT
DEBT	4. DEBT The Company’s debt consisted of the following for the periods presented (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2024 ​ ​ December 31, 2023 Term loan credit facility ​ $ 160,201 ​ ​ $ 200,000 Other ​ ​ 162 ​ ​ ​ 215 Total debt (Face Value) ​ ​ 160,363 ​ ​ ​ 200,215 Less: ​ ​ ​ ​ ​ ​ ​ Current portion of long-term debt (1) ​ ​ (52,606) ​ ​ ​ (50,106) Other (2) ​ ​ (6,572) ​ ​ ​ (9,833) Long-Term Debt, net ​ $ 101,185 ​ ​ $ 140,276 (1) Amounts primarily reflect amortization payments due of $52.5 million and $50.0 million under the Amended Term Loan Agreement due within one year as of June 30, 2024 and December 31, 2023, respectively. (2) Amounts primarily reflect unamortized debt issuance costs of approximately $4.4 million and $6.9 million at June 30, 2024 and December 31, 2023, respectively, but also includes an unamortized debt discount associated with an embedded derivative. For the six months ended June 30, 2024 and 2023, the Company recorded approximately $3.4 million and $3.8 million, respectively, in interest expense reflecting the amortization/accretion of these amounts. Term Loan Credit Facility On November 24, 2021, the Company and its wholly owned subsidiary, Halcón Holdings, LLC (the “Borrower”) entered into an Amended and Restated Senior Secured Credit Agreement (the “Term Loan Agreement”) with Macquarie Bank Limited, as administrative agent, and certain other financial institutions party thereto, as lenders. On November 14, 2022, the Company paid approximately $2.4 million and entered into a further Amended Credit Agreement (the “Amended Term Loan Agreement”) with its lenders which modified certain provisions of its original Term Loan Agreement including, but not limited to, its Current Ratio financial covenant, interest rate benchmark, and prepayment premiums, all as further described below. On March 28, 2024, the Company entered into the Third Amendment to the Amended Term Loan Agreement (the “Third Amendment”) with its lenders. The Third Amendment, amended the Amended Term Loan Agreement to, among other things, (a) amend the approved plan of development (“APOD”) for certain properties, (b) remove the PDP Production Test and APOD Economic Test (each defined in the Term Loan Agreement), (c) require the Borrower to receive cash proceeds from equity issuances and/or cash contributions in an aggregate amount of not less than As of June 30, 2024, the Company had $160.2 million of indebtedness and $0.3 million of letters of credit outstanding under the Amended Term Loan Agreement. An additional $4.7 million is available for the issuance of letters of credit as of June 30, 2024 and as of the date of this filing. The maturity date of the Amended Term Loan Agreement is November 24, 2025. Borrowings under the Amended Term Loan Agreement bear a variable interest rate based on the Secured Overnight Financing Rate (“ SOFR The Company may elect, at its option, to prepay any borrowing outstanding under the Amended Term Loan Agreement subject to the following prepayment premiums: ​ ​ ​ ​ Period (after applicable borrowing date (1) ) ​ ​ 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% (1) Applicable borrowing dates are November 2021 for the original $200.0 million borrowed and April and November 2022 for the $20.0 million and $15.0 million in delayed draw borrowings, respectively. The Company’s prepayment premiums would differ from those noted in the table above if a change of control results in prepayment within the second anniversary of the amendment date, as a 2% prepayment premium will apply. The Company may be required to make mandatory prepayments under the Amended Term Loan Agreement in connection with the incurrence of non-permitted debt, certain asset sales, or with cash on hand in excess of certain maximum levels beginning in 2023. For each fiscal quarter after January 1, 2023, the Company is required to make mandatory prepayments when the Consolidated Cash Balance, as defined in the Amended Term Loan Agreement, exceeds $20.0 million. Until December 31, 2024, the forecasted capital expenditures for the succeeding fiscal quarter on the APOD wells (i.e. oil and natural gas wells located within a specified boundary as set by the Amended Term Loan Agreement) are excluded for purposes of determining the Consolidated Cash Balance. As of June 30, 2024, the Consolidated Cash Balance, as defined in the Amended Term Loan Agreement and excluding the Specified Additional Equity Capital, did not exceed $20.0 million; therefore, no mandatory prepayment was necessary. The Company is required to make scheduled remaining amortization payments in the aggregate amount of $62.5 million from the fiscal quarter ending September 30, 2024 through the fiscal quarter ending September 30, 2025 with $12.5 million due at the end of the third quarter of 2024, $15.0 million due at the end of each of the fourth quarter of 2024 and the first quarter of 2025, and $10.0 million due at the end of each of the second and third quarters of 2025. The Company will be required to make a final payment of $97.7 million at maturity on November 24, 2025. Amounts outstanding under the Amended 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 Amended Term Loan Agreement there are certain restrictions on the transfer of assets, including cash, to Battalion from the guarantor subsidiaries. The Amended Term Loan Agreement also contains certain financial covenants (as defined in the Amended Term Loan Agreement), including the maintenance of the following ratios: ● Asset Coverage Ratio of not less than 1.80 to 1.00 as of June 30, 2024 and the last day of each fiscal quarter thereafter ● Total Net Leverage Ratio of not greater than 2.50 to 1.00 as of June 30, 2024, and each fiscal quarter thereafter, and ● Current Ratio of not less than 1.00 to 1.00, determined as of the last day of any fiscal quarter period, as of June 30, 2024 and for each fiscal quarter thereafter. At March 31, 2024, subject to the cure provision discussed below, the Company was not in compliance with the Total Net Leverage Ratio covenant under the Amended Term Loan Agreement but was in compliance with the other financial covenants. Under the Amended Term Loan Agreement, the Company has a right to cure noncompliance with the Total Net Leverage Ratio covenant within 15 days of delivery of financial statements by making an optional prepayment in an amount not greater than the amount required for purposes of complying with the Total Net Leverage Ratio and such prepayment shall not be subject to the applicable prepayment premium. Once such prepayment is made, the Total Net Leverage Ratio shall be recalculated giving effect to the reduction in the outstanding amount of borrowings as if such prepayment had occurred on the last day of the quarter. Accordingly, on May 14, 2024, the Company made a prepayment of outstanding borrowings under the Amended Term Loan Agreement in the amount of $17.3 million resulting in total borrowings outstanding of $172.7 million. Upon giving effect to such prepayment for the calculation of the Total Net Leverage Ratio at March 31, 2024, the Company was in compliance with such financial covenant. As of June 30, 2024, the Company was in compliance with the financial covenants under the Amended Term Loan Agreement. The Amended Term Loan Agreement contains an APOD for the Company’s Monument Draw acreage through the drilling and completion of certain wells. The Amended 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. In conjunction with entering into the original Term Loan Agreement in November 2021, the Company agreed to pay a premium to the lenders upon a future change of control event in which a majority of the board of directors or the Chief Executive Officer (the “CEO”) or the Principal Financial Officer positions do not remain held by the same persons as before the change of control event (“Change of Control Call Option”). The premium is reduced over time through the payment of interest and certain fees. The Change of Control Call Option is accounted for as an embedded derivative not clearly and closely related to the host debt instrument. Accordingly, the Company recorded the initial fair value separately on the unaudited condensed consolidated balance sheet within “Other noncurrent liabilities” “Interest expense and other” Fair Value Measurements

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2024
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	5. 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 between fair value hierarchy levels for any period presented. The following tables set forth by level within the fair value hierarchy the Company’s financial assets and liabilities associated with commodity-based derivative contracts that were accounted for at fair value as of June 30, 2024 and December 31, 2023 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2024 ​ Level 1 Level 2 Level 3 Total Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Assets from commodity-based derivative contracts ​ $ — ​ $ 10,483 ​ $ — ​ $ 10,483 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities from commodity-based derivative contracts ​ $ — ​ $ 45,189 ​ $ — ​ $ 45,189 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2023 ​ Level 1 Level 2 Level 3 Total Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Assets from commodity-based derivative contracts ​ $ — ​ $ 13,869 ​ $ — ​ $ 13,869 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities from commodity-based derivative contracts ​ $ — ​ $ 33,249 ​ $ — ​ $ 33,249 ​ 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 (loss) gain 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. The Company recorded the fair value of the Change of Control Call Option separately on the unaudited condensed consolidated balance sheets in “Other noncurrent liabilities” “Interest expense and other” ​ ​ ​ ​ ​ ​ ​ Change of Control ​ ​ Call Option Balance at December 31, 2023 ​ $ 2,084 Change in fair value ​ ​ (1,365) Balance at June 30, 2024 ​ $ 719 ​ 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 borrowings under the Company’s Amended Term Loan Agreement approximates carrying value because the variable interest rates approximate current market rates. The Company follows the provisions of the FASB’s Accounting Standards Codification (“ASC”) 820, Fair Value Measurement apply to the Company’s initial recognition of AROs for which fair value is used. The ARO 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 7, “Asset Retirement Obligations,”

DERIVATIVE AND HEDGING ACTIVITI

DERIVATIVE AND HEDGING ACTIVITIES	6 Months Ended
	Jun. 30, 2024
DERIVATIVE AND HEDGING ACTIVITIES
DERIVATIVE AND HEDGING ACTIVITIES	6. DERIVATIVE AND HEDGING ACTIVITIES The Company is exposed to commodity price risks relating to its ongoing business operations. In accordance with the Company’s policy and the requirements under the Amended 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 (loss) gain on derivative contracts” 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, 2024, 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 commodity derivative contracts in the unaudited condensed consolidated balance sheets as of June 30, 2024 and December 31, 2023 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance sheet location June 30, 2024 December 31, 2023 Balance sheet location June 30, 2024 December 31, 2023 Current assets ​ $ 5,869 ​ $ 8,992 ​ Current liabilities ​ $ (25,554) ​ $ (17,191) Other noncurrent assets ​ ​ 4,614 ​ ​ 4,877 ​ Other noncurrent liabilities ​ ​ (19,635) ​ ​ (16,058) ​ ​ $ 10,483 ​ $ 13,869 ​ ​ ​ $ (45,189) ​ $ (33,249) ​ 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): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Location of net (loss) gain ​ Three Months Ended ​ Six Months Ended ​ ​ on derivative contracts on ​ June 30, ​ June 30, Type Statement of Operations ​ 2024 ​ 2023 ​ 2024 ​ 2023 Commodity derivative contracts: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized (loss) gain ​ Other income (expenses) ​ $ 4,434 ​ $ 2,332 ​ $ (15,327) ​ $ 23,336 Realized (loss) gain ​ Other income (expenses) ​ ​ (3,211) ​ ​ 2,141 ​ ​ (7,637) ​ ​ 610 Total net (loss) gain ​ ​ ​ $ 1,223 ​ $ 4,473 ​ $ (22,964) ​ $ 23,946 ​ At June 30, 2024, the Company had the following open crude oil and natural gas derivative contracts: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Instrument ​ 2024 ​ 2025 ​ 2026 ​ ​ 2027 ​ Crude oil: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fixed-price swap: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (Bbls) ​ ​ 861,244 ​ ​ 1,435,236 ​ ​ 1,029,685 ​ ​ 786,989 ​ Weighted average price ​ $ 62.78 ​ $ 61.77 ​ $ 63.59 ​ $ 61.87 ​ Basis swap: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (Bbls) ​ ​ 862,178 ​ ​ 1,451,319 ​ ​ 1,036,713 ​ ​ 791,105 ​ Weighted average price ​ $ 0.26 ​ $ 0.25 ​ $ 0.05 ​ $ 0.44 ​ WTI NYMEX roll: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (Bbls) ​ ​ 850,708 ​ ​ 1,451,319 ​ ​ 1,036,713 ​ ​ 791,105 ​ Weighted average price ​ $ 0.21 ​ $ 0.13 ​ $ (0.01) ​ $ (0.03) ​ Natural gas: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fixed-price swap: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (MMBtu) ​ ​ 2,537,743 ​ ​ 4,326,712 ​ ​ 2,431,053 ​ ​ 2,135,815 ​ Weighted average price ​ $ 3.48 ​ $ 3.42 ​ $ 3.96 ​ $ 3.71 ​ Two-way collar: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (MMBtu) ​ ​ 875,400 ​ ​ 1,651,321 ​ ​ 2,063,812 ​ ​ 1,355,000 ​ Weighted average price (call) ​ $ 4.81 ​ $ 5.12 ​ $ 5.26 ​ $ 5.57 ​ Weighted average price (put) ​ $ 3.48 ​ $ 3.72 ​ $ 3.70 ​ $ 3.66 ​ Basis swap: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (MMBtu) ​ ​ 3,412,284 ​ ​ 5,950,283 ​ ​ 4,455,681 ​ ​ 3,472,222 ​ Weighted average price ​ $ (0.84) ​ $ (0.68) ​ $ (0.77) ​ $ (0.73) ​ ​ 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, 2024 and December 31, 2023 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivative Assets ​ Derivative Liabilities Offsetting of Derivative Assets and Liabilities June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Amounts - Consolidated Balance Sheet ​ $ 10,483 ​ $ 13,869 ​ $ (45,189) ​ $ (33,249) Amounts Not Offset - Consolidated Balance Sheet ​ ​ (10,483) ​ ​ (13,218) ​ ​ 10,483 ​ ​ 13,218 Net Amount ​ $ — ​ $ 651 ​ $ (34,706) ​ $ (20,031) ​ 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, 2024
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS	7. ASSET RETIREMENT OBLIGATIONS The Company records an 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, 2023 ​ $ 17,458 Accretion expense ​ ​ 477 Liabilities incurred ​ ​ 200 Liability for asset retirement obligations as of June 30, 2024 ​ ​ 18,135 ​

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2024
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	8. COMMITMENTS AND CONTINGENCIES Commitments In May 2022, the Company entered into a joint venture agreement with Caracara Services, LLC (“Caracara”) to develop a strategic acid gas treatment and carbon sequestration facility and entered into a gas treating agreement with Wink Amine Treater, LLC (“WAT”). The Company has a minimum volume commitment of 20,000 Mcf per day under the gas treating agreement, with certain rollover rights and start-up flexibility, for an initial term of five years from the in-service date of the facility. Under the gas treating agreement, the Company currently pays a treating rate that begins at $1.71/Mcf and varies based on volumes delivered to the facility. For additional information on this joint venture, see Note 11, “ Additional Financial Statement Information”. 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, 2024, the Company had in place multiple long-term crude oil and 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 Contingencies In addition to the matter described below, from time to time, the Company may be a plaintiff or defendant in a pending or threatened legal proceeding arising in the normal course of its business. While the outcome and impact of currently pending legal proceedings cannot be determined, the Company’s management and legal counsel believe that the resolution of these proceedings through settlement or adverse judgment will not have a material effect on the Company’s unaudited condensed consolidated operating results, financial position or cash flows. Surface owners of properties in Louisiana, where the Company formerly operated, often file lawsuits or assert claims against oil and natural 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.

REDEEMABLE CONVERTIBLE PREFERRE

REDEEMABLE CONVERTIBLE PREFERRED STOCK	6 Months Ended
	Jun. 30, 2024
REDEEMABLE CONVERTIBLE PREFERRED STOCK
REDEEMABLE CONVERTIBLE PREFERRED STOCK	9. REDEEMABLE CONVERTIBLE PREFERRED STOCK The table below summarizes the Company’s Redeemable Convertible Preferred Stock issuances: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Preferred Stock (1) ​ Issuance Date ​ Shares ​ Conversion Price ​ Net Equity Recorded (2) (in thousands) ​ Deemed Dividend Date ​ Non-cash Deemed Dividends (2) (in thousands) ​ Series A ​ March 28, 2023 ​ 25,000 ​ $ 9.03 ​ $ 23,541 ​ March 31, 2023 ​ $ 1,459 ​ Series A-1 ​ September 6, 2023 ​ 38,000 ​ $ 7.63 ​ $ 36,941 ​ September 30, 2023 ​ $ 1,059 ​ Series A-2 ​ December 15, 2023 ​ 35,000 ​ $ 6.21 ​ $ 34,006 ​ December 31, 2023 ​ $ 994 ​ Series A-3 ​ March 27, 2024 ​ 20,000 ​ $ 6.83 ​ $ 19,397 ​ March 31, 2024 ​ $ 603 ​ Series A-4 ​ May 13, 2024 ​ 20,000 ​ $ 6.42 ​ $ 19,385 ​ June 30, 2024 ​ $ 615 ​ (1) At the option of the Company, Series A through A-4 receive either annual dividends paid in cash at a fixed rate of 14.5% or accrued annually at a fixed PIK rate of 16.0% . (2) The preferred stock is originally recorded net of original issue discount and accrued offering costs as mezzanine equity (temporary equity) and subsequently a non-cash deemed dividend is recorded to increase the carrying value of the preferred stock to its redemption amount. On March 27, 2024, the Company sold, in a private placement, an aggregate of 20,000 shares of Series A-3 Redeemable Convertible Preferred Stock (the “Series A-3 Preferred Stock”) in a private placement to certain funds managed by Luminus Management, LLC, Oaktree Capital Management, LP, and LSP Investment Advisors, LLC, the Company’s largest three existing stockholders (the “Investors”). The Company received $19.5 million in proceeds, net of $0.5 million in original issue discount. Each of the Investors has an employee that has been elected to and serves on the Company’s board of directors, comprised of six members. The issuance of Series A-3 Preferred Stock was approved by the Company’s board of directors upon recommendation by a special committee of disinterested directors that was established to evaluate the proposed terms of the Series A-3 Preferred Stock. Holders of Series A-3 Preferred Stock will have no voting rights with respect to the shares of Series A-3 Preferred Stock. The Series A-3 Preferred Stock will receive annual dividends, paid either in cash at a fixed rate of 14.5% annually or accrued at a fixed paid-in-kind (“PIK”) accrual rate of 16.0% annually at the option of the Company. Currently, the Company’s Amended Term Loan Agreement prohibits the payment of cash dividends. PIK dividends will be cumulative, compound and accrue quarterly in arrears and will be added to the Liquidation Preference. The Series A-3 Preferred Stock Dividend Payment Date will commence on March 31, 2024, and the Conversion Price equaled $6.83, which may be adjusted from time to time. On May 13, 2024, the Company sold, in a private placement, an aggregate of 20,000 shares of Series A-4 Redeemable Convertible Preferred Stock (the “Series A-4 Preferred Stock”) to the Investors. The Company received $19.5 million in proceeds, net of $0.5 million in original issue discount. The issuance of Series A-4 Preferred Stock was approved by the Company’s board of directors upon recommendation by a special committee of disinterested directors that was established to evaluate the proposed terms of the Series A-4 Preferred Stock. Holders of Series A-4 Preferred Stock will have no voting rights with respect to the shares of Series A-4 Preferred Stock. The Series A-4 Preferred Stock will receive annual dividends, paid either in cash at a fixed rate of 14.5% annually or accrued at a fixed PIK accrual rate of 16.0% annually at the option of the Company. Currently, the Company’s Amended Term Loan Agreement prohibits the payment of cash dividends. PIK dividends will be cumulative, compound and accrue quarterly in arrears and will be added to the Liquidation Preference. The Series A-4 Preferred Stock Dividend Payment Date will commence on June 30, 2024, and the Conversion Price equaled $6.42, which may be adjusted from time to time. For accounting purposes, upon issuance of the preferred stock (collectively, the “Redeemable Convertible Preferred Stock”), the Company recorded the net proceeds as mezzanine equity (temporary equity) on the unaudited condensed consolidated balance sheets because it is not mandatorily redeemable but does contain a redemption feature at the option of the preferred holders that is considered not solely within the Company’s control. For the three and six months ended June 30, 2024, the Company paid-in-kind dividends on the preferred stock of $7.9 million and $13.0 million, respectively. For the three and six months ended June 30, 2023, the Company PIK dividends on the preferred stock of $1.0 million. As of June 30, 2024, the carrying value of the preferred stock, inclusive of PIK dividends, is approximately $159.5 million. Voting Rights. Dividends. Conversion Features. Redemption Features (Change of Control) Redemption Features (Issuer). ● at any time prior to 120 days following the closing date, 100% of the Liquidation Preference at such time; ● at any time on or after 120 days following the closing date but prior to the 180 days following the closing date, 102% of the Liquidation Preference at such time; ● at any time on or after 180 days following the closing date but on or prior to the first anniversary of the closing date, 105% of the Liquidation Preference at such time; ● at any time after the first anniversary of the closing date but on or prior to the second anniversary of the closing date, 108% of the Liquidation Preference at such time; and ● at any time after the second anniversary of the closing date, 120% of the Liquidation Preference at such time. Redemption Features (Change of Control) ● at any time on or prior to 150 days following the issuance date, and at the election of the Company, a cash payment equal to the Liquidation Preference or equity consideration equal to the 107.5% of the Liquidation Preference, or ● at any time after the one hundred fiftieth ( 150 th) day following the issuance date, the Company shall offer each Holder a cash payment equal to the Redemption Price. Holders shall also have the ability to elect conversion into common stock at the Conversion Ratio. Until (i) a termination of or certain amendments to the Amended Term Loan Agreement or (ii) one year past the maturity date of the Amended Term Loan Agreement, an election of the cash payment option by holders in a change of control scenario is not permitted.

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2024
EARNINGS PER SHARE
EARNINGS PER SHARE	10. 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, ​ 2024 ​ 2023 ​ 2024 ​ 2023 Basic: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ​ $ (105) ​ $ (4,748) ​ $ (31,307) ​ $ 18,063 Less: Preferred stock dividend ​ ​ (8,586) ​ ​ (997) ​ ​ (14,218) ​ ​ (2,489) Less: Undistributed earnings allocable to preferred stockholders ​ ​ — ​ ​ — ​ ​ — ​ ​ (1,301) Net (loss) income available to common stockholders ​ $ (8,691) ​ $ (5,745) ​ $ (45,525) ​ $ 14,273 Weighted average basic number of common shares outstanding basic ​ ​ 16,457 ​ ​ 16,457 ​ ​ 16,457 ​ ​ 16,425 Basic net (loss) income per share of common stock ​ $ (0.53) ​ $ (0.35) ​ $ (2.77) ​ $ 0.87 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net (loss) income available to common stockholders basic ​ $ (8,691) ​ $ (5,745) ​ $ (45,525) ​ $ 14,273 Reallocation of undistributed earnings ​ ​ — ​ ​ — ​ ​ — ​ ​ 7 Net (loss) income available to common stockholders diluted ​ $ (8,691) ​ $ (5,745) ​ $ (45,525) ​ $ 14,280 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average basic number of common shares outstanding basic ​ ​ 16,457 ​ ​ 16,457 ​ ​ 16,457 ​ ​ 16,425 Common stock equivalent shares representing shares issuable upon: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercise of stock options ​ ​ Anti-dilutive ​ ​ Anti-dilutive ​ ​ Anti-dilutive ​ ​ Anti-dilutive Vesting of restricted stock units ​ ​ Anti-dilutive ​ ​ Anti-dilutive ​ ​ Anti-dilutive ​ ​ 95 Weighted average diluted number of common shares outstanding diluted ​ ​ 16,457 ​ ​ 16,457 ​ ​ 16,457 ​ ​ 16,520 Diluted net (loss) income per share of common stock ​ $ (0.53) ​ $ (0.35) ​ $ (2.77) ​ $ 0.86 ​ The Company computes earnings per share in accordance with ASC Topic 260, Earnings per Share “Redeemable Convertible Preferred Stock” For the three and six months ended June 30, 2024, common stock equivalents, including options and restricted stock units (“RSUs”), totaling 0.3 million, were anti-dilutive and not included in the computation of diluted earnings per share of common stock. For the three and six months ended June 30, 2023, common stock equivalents, including options and RSUs, totaling 0.6 million and 0.5 million, respectively, 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, 2024
ADDITIONAL FINANCIAL STATEMENT INFORMATION
ADDITIONAL FINANCIAL STATEMENT INFORMATION	11. ADDITIONAL FINANCIAL STATEMENT INFORMATION Certain balance sheet amounts are comprised of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2024 December 31, 2023 Accounts receivable, net: ​ ​ ​ ​ ​ ​ Oil, natural gas and natural gas liquids revenues ​ $ 21,243 ​ $ 19,802 Joint interest accounts ​ ​ 2,095 ​ ​ 2,138 Other ​ ​ 1,556 ​ ​ 1,081 ​ ​ $ 24,894 ​ $ 23,021 Prepaids and other: ​ ​ ​ ​ ​ ​ Prepaids ​ $ 396 ​ $ 490 Funds in escrow ​ ​ 347 ​ ​ 345 Other ​ ​ 78 ​ ​ 72 ​ ​ $ 821 ​ $ 907 Other assets (Non-current): ​ ​ ​ ​ ​ ​ Investment in unconsolidated affiliate ​ $ 1,093 ​ $ 1,283 Contract asset ​ ​ 18,498 ​ ​ 15,062 Funds in escrow ​ ​ 565 ​ ​ 552 Other ​ ​ 760 ​ ​ 759 ​ ​ $ 20,916 ​ $ 17,656 Accounts payable and accrued liabilities: ​ ​ ​ ​ ​ ​ Trade payables ​ $ 34,522 ​ $ 24,915 Accrued oil and natural gas capital costs ​ ​ 6,694 ​ ​ 15,337 Revenues and royalties payable ​ ​ 26,345 ​ ​ 18,986 Accrued employee compensation ​ ​ 1,052 ​ ​ 520 Accrued lease operating expenses ​ ​ 7,512 ​ ​ 6,418 Other ​ ​ 331 ​ ​ 349 ​ ​ $ 76,456 ​ $ 66,525 ​ Investment in Unconsolidated Affiliate. Commitments and Contingencies Contract Asset. occur until the expiration of the current tolling agreement between the parties. The Company assesses the fair value of the contract asset on a quarterly basis for possible impairment.

MERGER AGREEMENT

MERGER AGREEMENT	6 Months Ended
	Jun. 30, 2024
MERGER AGREEMENT
MERGER AGREEMENT	12. MERGER AGREEMENT Agreement and Plan of Merger On December 14, 2023, the Company entered into an Agreement and Plan of Merger, as amended (the “Merger Agreement”) with Fury Resources, Inc., a Delaware corporation (“Parent”) and San Jacinto Merger Sub, Inc. (“Merger Sub”), a Delaware corporation and a direct, wholly owned subsidiary of Parent. The Merger Agreement provides, that upon the terms and subject to the conditions set forth in the Merger Agreement, Merger Sub will merge with and into the Company (the “Merger”), with the Company surviving as a wholly owned subsidiary of Parent. Subject to the terms and conditions set forth in the Merger Agreement, each of the Company’s issued and outstanding shares of Common Stock, par value $0.0001 per share (“Common Stock”) shall be converted into the right to receive $9.80 in cash, without interest, which represents a total transaction value of approximately $450.0 million, and such shares shall otherwise cease to be outstanding, shall automatically be canceled and retired and cease to exist; and each outstanding share of redeemable convertible preferred stock will be contributed to Parent in exchange for new preferred shares of Parent , or sold to Parent for cash, in each case at a valuation based on the conversion or redemption value of such preferred stock. On January 24, 2024, Parent and the Company agreed to cause an amount equal to $10.0 million to be distributed from the escrow account to the Company and such is recorded as a deposit liability in “ Other” On April 24, 2024, pursuant to an amendment to the Merger Agreement dated April 16, 2024, Parent paid to the Company $0.1 million to be used by the Company to pay the Company’s costs and expenses associated with printing and mailing the definitive Proxy Statement for the Merger to the Company’s stockholders. The obligations of the Company, Parent and Merger Sub to consummate the Merger are subject to the satisfaction or waiver of certain customary closing conditions, including, among other things: (a) the absence of any law or order of any Governmental Authority having jurisdiction over a party to the Merger Agreement prohibiting or making illegal the consummation of the Merger, and (b) the adoption of the Merger Agreement by a majority vote of the issued and outstanding shares of Company Common Stock.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (105)	$ (31,203)	$ 32,688	$ (53,799)	$ (4,748)	$ 22,811	$ (31,307)	$ 18,063

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

FINANCIAL STATEMENT PRESENTAT_2

FINANCIAL STATEMENT PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2024
SUMMARY OF SIGNIFICANT EVENTS AND ACCOUNTING POLICIES
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation Battalion Oil Corporation (“Battalion” or the “Company”) 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 (“GAAP”), 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 (the “SEC”) on April 1, 2024. Please refer to the notes in the Annual Report on Form 10-K for the year ended December 31, 2023 when reviewing interim financial results. The Company has evaluated events or transactions through the date of issuance of these unaudited condensed consolidated financial statements.
Liquidity and Cash Requirements	Liquidity and Cash Requirements The accompanying unaudited condensed consolidated financial statements are prepared in accordance with GAAP applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. ​ The Company’s ability to execute its operating strategy is dependent on its ability to maintain adequate liquidity and continue to access capital, as needed. The Company generated a net loss of $45.5 million for the six months ended June 30, 2024 and had a negative working capital of $69.1 million as of June 30, 2024. The Company’s current business estimates and forecasts indicate that it will require additional liquidity to continue its operations, satisfy debt payment requirements and meet its debt covenant requirements for the next 12 months from the issuance of these condensed consolidated financial statements. In response to these events and conditions, the Company has continued to execute on a plan to reduce operating and capital costs to improve cash flow. The Company also has obtained a support letter from its three largest current related party investors to purchase additional preferred equity securities in an amount up to $30.0 million over the next 12 months. Management believes that based upon its operational forecasts, cash and cash equivalents on hand, cost reduction measures and the commitment of the investors to purchase up to $30.0 million in additional preferred equity, it is probable the Company will have sufficient liquidity to fund its operations, meet its continuous drilling obligations and near-term debt payment requirements and maintain compliance with its debt covenants, as described in Note 5, “ Debt,
Use of Estimates	Use of Estimates The preparation of the Company’s unaudited condensed consolidated financial statements in conformity with GAAP 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 (“AROs”), 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, Cash Equivalents and Restricted Cash The Company considers all highly liquid short-term investments with a maturity of three months or less at the time of purchase to be cash equivalents. These investments are carried at cost, which approximates fair value. Amounts in the unaudited condensed consolidated balance sheets included in “Cash and cash equivalents” “Restricted cash” ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2024 ​ December 31, 2023 ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 54,430 ​ $ 57,529 Restricted cash ​ ​ 91 ​ ​ 90 Total cash, cash equivalents and restricted cash ​ $ 54,521 ​ $ 57,619 ​ Restricted cash consists of funds to collateralize lines of credit.
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. Payment of the Company’s accounts receivable is typically received within 30-60 days. The Company’s historical credit losses have been de minimis and are expected to remain so in the future assuming no substantial changes to the business or creditworthiness of the Company’s counterparties.
Concentrations of Credit Risk	Concentrations of Credit Risk The Company’s primary concentrations of credit risk are the risks of uncollectible accounts receivable and of nonperformance by counterparties under the Company’s derivative contracts. Each reporting period, the Company assesses the recoverability of material receivables using historical data, current market conditions and reasonable and supportable forecasts of future economic conditions to determine expected collectability of its material receivables. The Company’s 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, 2024, the Company’s derivative counterparties include two major financial institutions, both of which are secured lenders under the Amended Term Loan Agreement (as defined in Note 4, “ Debt
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) ASU No. 2022-06, “ Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures

FINANCIAL STATEMENT PRESENTAT_3

FINANCIAL STATEMENT PRESENTATION (Tables)	6 Months Ended
	Jun. 30, 2024
SUMMARY OF SIGNIFICANT EVENTS AND ACCOUNTING POLICIES
Schedule Of Cash, Cash Equivalents And Restricted Cash	​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2024 ​ December 31, 2023 ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 54,430 ​ $ 57,529 Restricted cash ​ ​ 91 ​ ​ 90 Total cash, cash equivalents and restricted cash ​ $ 54,521 ​ $ 57,619

DEBT (Tables)

DEBT (Tables)	6 Months Ended
	Jun. 30, 2024
DEBT
Schedule of debt	The Company’s debt consisted of the following for the periods presented (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2024 ​ ​ December 31, 2023 Term loan credit facility ​ $ 160,201 ​ ​ $ 200,000 Other ​ ​ 162 ​ ​ ​ 215 Total debt (Face Value) ​ ​ 160,363 ​ ​ ​ 200,215 Less: ​ ​ ​ ​ ​ ​ ​ Current portion of long-term debt (1) ​ ​ (52,606) ​ ​ ​ (50,106) Other (2) ​ ​ (6,572) ​ ​ ​ (9,833) Long-Term Debt, net ​ $ 101,185 ​ ​ $ 140,276 (1) Amounts primarily reflect amortization payments due of $52.5 million and $50.0 million under the Amended Term Loan Agreement due within one year as of June 30, 2024 and December 31, 2023, respectively. (2) Amounts primarily reflect unamortized debt issuance costs of approximately $4.4 million and $6.9 million at June 30, 2024 and December 31, 2023, respectively, but also includes an unamortized debt discount associated with an embedded derivative. For the six months ended June 30, 2024 and 2023, the Company recorded approximately $3.4 million and $3.8 million, respectively, in interest expense reflecting the amortization/accretion of these amounts.
Schedule of prepayment premiums	The Company may elect, at its option, to prepay any borrowing outstanding under the Amended Term Loan Agreement subject to the following prepayment premiums: ​ ​ ​ ​ Period (after applicable borrowing date (1) ) ​ ​ 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% (1) Applicable borrowing dates are November 2021 for the original $200.0 million borrowed and April and November 2022 for the $20.0 million and $15.0 million in delayed draw borrowings, respectively.

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2024
FAIR VALUE MEASUREMENTS
Schedule of fair value of the Company's financial assets and liabilities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2024 ​ Level 1 Level 2 Level 3 Total Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Assets from commodity-based derivative contracts ​ $ — ​ $ 10,483 ​ $ — ​ $ 10,483 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities from commodity-based derivative contracts ​ $ — ​ $ 45,189 ​ $ — ​ $ 45,189 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2023 ​ Level 1 Level 2 Level 3 Total Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Assets from commodity-based derivative contracts ​ $ — ​ $ 13,869 ​ $ — ​ $ 13,869 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities from commodity-based derivative contracts ​ $ — ​ $ 33,249 ​ $ — ​ $ 33,249
Schedule of changes in fair value of the change of control call option	The Company recorded the fair value of the Change of Control Call Option separately on the unaudited condensed consolidated balance sheets in “Other noncurrent liabilities” “Interest expense and other” ​ ​ ​ ​ ​ ​ ​ Change of Control ​ ​ Call Option Balance at December 31, 2023 ​ $ 2,084 Change in fair value ​ ​ (1,365) Balance at June 30, 2024 ​ $ 719

DERIVATIVE AND HEDGING ACTIVI_2

DERIVATIVE AND HEDGING ACTIVITIES (Tables)	6 Months Ended
	Jun. 30, 2024
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 commodity derivative contracts in the unaudited condensed consolidated balance sheets as of June 30, 2024 and December 31, 2023 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance sheet location June 30, 2024 December 31, 2023 Balance sheet location June 30, 2024 December 31, 2023 Current assets ​ $ 5,869 ​ $ 8,992 ​ Current liabilities ​ $ (25,554) ​ $ (17,191) Other noncurrent assets ​ ​ 4,614 ​ ​ 4,877 ​ Other noncurrent liabilities ​ ​ (19,635) ​ ​ (16,058) ​ ​ $ 10,483 ​ $ 13,869 ​ ​ ​ $ (45,189) ​ $ (33,249)
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): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Location of net (loss) gain ​ Three Months Ended ​ Six Months Ended ​ ​ on derivative contracts on ​ June 30, ​ June 30, Type Statement of Operations ​ 2024 ​ 2023 ​ 2024 ​ 2023 Commodity derivative contracts: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized (loss) gain ​ Other income (expenses) ​ $ 4,434 ​ $ 2,332 ​ $ (15,327) ​ $ 23,336 Realized (loss) gain ​ Other income (expenses) ​ ​ (3,211) ​ ​ 2,141 ​ ​ (7,637) ​ ​ 610 Total net (loss) gain ​ ​ ​ $ 1,223 ​ $ 4,473 ​ $ (22,964) ​ $ 23,946
Schedule of open derivative contracts	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Instrument ​ 2024 ​ 2025 ​ 2026 ​ ​ 2027 ​ Crude oil: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fixed-price swap: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (Bbls) ​ ​ 861,244 ​ ​ 1,435,236 ​ ​ 1,029,685 ​ ​ 786,989 ​ Weighted average price ​ $ 62.78 ​ $ 61.77 ​ $ 63.59 ​ $ 61.87 ​ Basis swap: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (Bbls) ​ ​ 862,178 ​ ​ 1,451,319 ​ ​ 1,036,713 ​ ​ 791,105 ​ Weighted average price ​ $ 0.26 ​ $ 0.25 ​ $ 0.05 ​ $ 0.44 ​ WTI NYMEX roll: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (Bbls) ​ ​ 850,708 ​ ​ 1,451,319 ​ ​ 1,036,713 ​ ​ 791,105 ​ Weighted average price ​ $ 0.21 ​ $ 0.13 ​ $ (0.01) ​ $ (0.03) ​ Natural gas: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fixed-price swap: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (MMBtu) ​ ​ 2,537,743 ​ ​ 4,326,712 ​ ​ 2,431,053 ​ ​ 2,135,815 ​ Weighted average price ​ $ 3.48 ​ $ 3.42 ​ $ 3.96 ​ $ 3.71 ​ Two-way collar: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (MMBtu) ​ ​ 875,400 ​ ​ 1,651,321 ​ ​ 2,063,812 ​ ​ 1,355,000 ​ Weighted average price (call) ​ $ 4.81 ​ $ 5.12 ​ $ 5.26 ​ $ 5.57 ​ Weighted average price (put) ​ $ 3.48 ​ $ 3.72 ​ $ 3.70 ​ $ 3.66 ​ Basis swap: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (MMBtu) ​ ​ 3,412,284 ​ ​ 5,950,283 ​ ​ 4,455,681 ​ ​ 3,472,222 ​ Weighted average price ​ $ (0.84) ​ $ (0.68) ​ $ (0.77) ​ $ (0.73) ​
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, 2024 December 31, 2023 June 30, 2024 December 31, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Amounts - Consolidated Balance Sheet ​ $ 10,483 ​ $ 13,869 ​ $ (45,189) ​ $ (33,249) Amounts Not Offset - Consolidated Balance Sheet ​ ​ (10,483) ​ ​ (13,218) ​ ​ 10,483 ​ ​ 13,218 Net Amount ​ $ — ​ $ 651 ​ $ (34,706) ​ $ (20,031)

ASSET RETIREMENT OBLIGATIONS (T

ASSET RETIREMENT OBLIGATIONS (Tables)	6 Months Ended
	Jun. 30, 2024
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, 2023 ​ $ 17,458 Accretion expense ​ ​ 477 Liabilities incurred ​ ​ 200 Liability for asset retirement obligations as of June 30, 2024 ​ ​ 18,135 ​

REDEEMABLE CONVERTIBLE PREFER_2

REDEEMABLE CONVERTIBLE PREFERRED STOCK (Tables)	6 Months Ended
	Jun. 30, 2024
REDEEMABLE CONVERTIBLE PREFERRED STOCK
Summary of Preferred Stock issuances	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Preferred Stock (1) ​ Issuance Date ​ Shares ​ Conversion Price ​ Net Equity Recorded (2) (in thousands) ​ Deemed Dividend Date ​ Non-cash Deemed Dividends (2) (in thousands) ​ Series A ​ March 28, 2023 ​ 25,000 ​ $ 9.03 ​ $ 23,541 ​ March 31, 2023 ​ $ 1,459 ​ Series A-1 ​ September 6, 2023 ​ 38,000 ​ $ 7.63 ​ $ 36,941 ​ September 30, 2023 ​ $ 1,059 ​ Series A-2 ​ December 15, 2023 ​ 35,000 ​ $ 6.21 ​ $ 34,006 ​ December 31, 2023 ​ $ 994 ​ Series A-3 ​ March 27, 2024 ​ 20,000 ​ $ 6.83 ​ $ 19,397 ​ March 31, 2024 ​ $ 603 ​ Series A-4 ​ May 13, 2024 ​ 20,000 ​ $ 6.42 ​ $ 19,385 ​ June 30, 2024 ​ $ 615 ​

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2024
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, ​ 2024 ​ 2023 ​ 2024 ​ 2023 Basic: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ​ $ (105) ​ $ (4,748) ​ $ (31,307) ​ $ 18,063 Less: Preferred stock dividend ​ ​ (8,586) ​ ​ (997) ​ ​ (14,218) ​ ​ (2,489) Less: Undistributed earnings allocable to preferred stockholders ​ ​ — ​ ​ — ​ ​ — ​ ​ (1,301) Net (loss) income available to common stockholders ​ $ (8,691) ​ $ (5,745) ​ $ (45,525) ​ $ 14,273 Weighted average basic number of common shares outstanding basic ​ ​ 16,457 ​ ​ 16,457 ​ ​ 16,457 ​ ​ 16,425 Basic net (loss) income per share of common stock ​ $ (0.53) ​ $ (0.35) ​ $ (2.77) ​ $ 0.87 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net (loss) income available to common stockholders basic ​ $ (8,691) ​ $ (5,745) ​ $ (45,525) ​ $ 14,273 Reallocation of undistributed earnings ​ ​ — ​ ​ — ​ ​ — ​ ​ 7 Net (loss) income available to common stockholders diluted ​ $ (8,691) ​ $ (5,745) ​ $ (45,525) ​ $ 14,280 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average basic number of common shares outstanding basic ​ ​ 16,457 ​ ​ 16,457 ​ ​ 16,457 ​ ​ 16,425 Common stock equivalent shares representing shares issuable upon: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercise of stock options ​ ​ Anti-dilutive ​ ​ Anti-dilutive ​ ​ Anti-dilutive ​ ​ Anti-dilutive Vesting of restricted stock units ​ ​ Anti-dilutive ​ ​ Anti-dilutive ​ ​ Anti-dilutive ​ ​ 95 Weighted average diluted number of common shares outstanding diluted ​ ​ 16,457 ​ ​ 16,457 ​ ​ 16,457 ​ ​ 16,520 Diluted net (loss) income per share of common stock ​ $ (0.53) ​ $ (0.35) ​ $ (2.77) ​ $ 0.86

ADDITIONAL FINANCIAL STATEMEN_2

ADDITIONAL FINANCIAL STATEMENT INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2024
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, 2024 December 31, 2023 Accounts receivable, net: ​ ​ ​ ​ ​ ​ Oil, natural gas and natural gas liquids revenues ​ $ 21,243 ​ $ 19,802 Joint interest accounts ​ ​ 2,095 ​ ​ 2,138 Other ​ ​ 1,556 ​ ​ 1,081 ​ ​ $ 24,894 ​ $ 23,021 Prepaids and other: ​ ​ ​ ​ ​ ​ Prepaids ​ $ 396 ​ $ 490 Funds in escrow ​ ​ 347 ​ ​ 345 Other ​ ​ 78 ​ ​ 72 ​ ​ $ 821 ​ $ 907 Other assets (Non-current): ​ ​ ​ ​ ​ ​ Investment in unconsolidated affiliate ​ $ 1,093 ​ $ 1,283 Contract asset ​ ​ 18,498 ​ ​ 15,062 Funds in escrow ​ ​ 565 ​ ​ 552 Other ​ ​ 760 ​ ​ 759 ​ ​ $ 20,916 ​ $ 17,656 Accounts payable and accrued liabilities: ​ ​ ​ ​ ​ ​ Trade payables ​ $ 34,522 ​ $ 24,915 Accrued oil and natural gas capital costs ​ ​ 6,694 ​ ​ 15,337 Revenues and royalties payable ​ ​ 26,345 ​ ​ 18,986 Accrued employee compensation ​ ​ 1,052 ​ ​ 520 Accrued lease operating expenses ​ ​ 7,512 ​ ​ 6,418 Other ​ ​ 331 ​ ​ 349 ​ ​ $ 76,456 ​ $ 66,525

FINANCIAL STATEMENT PRESENTAT_4

FINANCIAL STATEMENT PRESENTATION (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) segment	Jun. 30, 2023 USD ($)
Number of operating segments | segment			1
Net income (loss) available to common stockholders	$ (8,691)	$ (5,745)	$ (45,525)	$ 15,574
Working Capital	(69,100)		(69,100)
Maximum
Commitment letter from investors	30,000		30,000
Minimum
Commitment letter from investors	$ 30,000		$ 30,000

FINANCIAL STATEMENT PRESENTAT_5

FINANCIAL STATEMENT PRESENTATION - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
SUMMARY OF SIGNIFICANT EVENTS AND ACCOUNTING POLICIES
Cash and cash equivalents	$ 54,430	$ 57,529
Restricted cash	91	90
Total cash, cash equivalents and restricted cash	$ 54,521	$ 57,619	$ 18,604	$ 32,816

OPERATING REVENUES - Revenue Re

OPERATING REVENUES - Revenue Recognition (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Accounts receivable
Disaggregation of operating revenue
Due from contracts with customers	$ 21.2	$ 19.8

OIL AND NATURAL GAS PROPERTIES

OIL AND NATURAL GAS PROPERTIES - Ceiling Test Value of Company's Reserves (Details)	6 Months Ended
	Jun. 30, 2024 $ / MMBTU $ / bbl	Jun. 30, 2023 $ / MMBTU $ / bbl
Ceiling Limitation Disclosures
First-day-of-month 12-month average price for natural gas (in $/MMBtu) | $ / MMBTU	2.32	4.76
First-day-of-month 12-month average price for crude oil used in ceiling test impairment (in dollars per barrel) | $ / bbl	79.45	83.23

DEBT (Details)

DEBT (Details) - USD ($) $ in Thousands		6 Months Ended
	May 14, 2024	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Current and long-term debt
Debt		$ 160,363		$ 200,215
Current portion of long-term debt(1)		(52,606)		(50,106)
Other(2)		(6,572)		(9,833)
Long-term debt, net		101,185		140,276
Unamortized debt issuance costs		4,400		6,900
Amortization/accretion of financing related costs		3,390	$ 3,843
Interest expense		3,400	3,800
Repayment of borrowings		39,853	$ 15,043
Term loan credit facility
Current and long-term debt
Debt	$ 172,700	160,201		200,000
Current portion of long-term debt(1)		(52,500)		(50,000)
Repayment of borrowings	$ 17,300
Paycheck Protection Program Loan [Member]
Current and long-term debt
Debt		$ 162		$ 215

DEBT - Term Loan Credit Facilit

DEBT - Term Loan Credit Facility (Details) - USD ($) $ in Thousands		6 Months Ended
	Nov. 14, 2022	Jun. 30, 2024	Mar. 28, 2024	Nov. 30, 2022	Apr. 30, 2022	Nov. 30, 2021
Debt Instrument [Line Items]
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]		us-gaap:SecuredOvernightFinancingRateSofrMember
Lender fees paid		$ 129
Term loan credit facility
Debt Instrument [Line Items]
Maximum borrowing capacity		20,000
Amount available for issuance of letters of credit		$ 4,700
Increase in basis spread on variable rate (as a percent)		7.50%
Weighted average interest rate		12.95%
Applicable margin (as a percent)		0.15%
Lender fees paid	$ 2,400
Maturity date		Nov. 24, 2025
Threshold new capital raising requirements for prepayment premiums			$ 38,000
Amount outstanding		$ 160,200				$ 200,000
Letters of credit outstanding		$ 300
Covenant compliance		At March 31, 2024, subject to the cure provision discussed below, the Company was not in compliance with the Total Net Leverage Ratio covenant under the Amended Term Loan
Aggregate scheduled amortization payments		$ 62,500
Term loan credit facility | Minimum
Debt Instrument [Line Items]
Asset coverage ratio		1.80%
Current ratio		1%
Term loan credit facility | Maximum
Debt Instrument [Line Items]
Net Leverage Ratio		2.50%
Amount outstanding		$ 20,000
Term loan credit facility | Debt redemption, period one
Debt Instrument [Line Items]
Prepayment premium percentage		2%
Scheduled remaining amortization payment		$ 12,500
Term loan credit facility | Debt redemption, period one | Minimum
Debt Instrument [Line Items]
Debt instrument prepayment term		0 months
Term loan credit facility | Debt redemption, period one | Maximum
Debt Instrument [Line Items]
Debt instrument prepayment term		12 months
Term loan credit facility | Debt redemption, period two
Debt Instrument [Line Items]
Prepayment premium percentage		2%
Scheduled remaining amortization payment		$ 15,000
Term loan credit facility | Debt redemption, period two | Minimum
Debt Instrument [Line Items]
Debt instrument prepayment term		13 months
Term loan credit facility | Debt redemption, period two | Maximum
Debt Instrument [Line Items]
Debt instrument prepayment term		24 months
Term loan credit facility | Debt redemption, period three
Debt Instrument [Line Items]
Prepayment premium percentage		1%
Scheduled remaining amortization payment		$ 10,000
Term loan credit facility | Debt redemption, period three | Minimum
Debt Instrument [Line Items]
Debt instrument prepayment term		25 months
Term loan credit facility | Debt redemption, period three | Maximum
Debt Instrument [Line Items]
Debt instrument prepayment term		36 months
Term loan credit facility | Debt redemption, period four
Debt Instrument [Line Items]
Prepayment premium percentage		0%
Scheduled remaining amortization payment		$ 97,700
Term loan credit facility | Debt redemption, period four | Minimum
Debt Instrument [Line Items]
Debt instrument prepayment term		37 months
Term loan credit facility | Debt redemption, period four | Maximum
Debt Instrument [Line Items]
Debt instrument prepayment term		48 months
Delayed Draw Term Loans [Member]
Debt Instrument [Line Items]
Incremental borrowing that we can make if we meet certain criteria				$ 15,000	$ 20,000

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Assets
Asset transfers between levels	$ 0	$ 0
Liabilities
Liability transfers between levels	0	0
Recurring | Total
Assets
Receivables from derivative contracts	10,483	13,869
Liabilities
Liabilities from derivative contracts	45,189	33,249
Recurring | Level 2
Assets
Receivables from derivative contracts	10,483	13,869
Liabilities
Liabilities from derivative contracts	$ 45,189	$ 33,249

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, 2024 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Balance at the beginning of the period	$ 2,084
Change in fair value	(1,365)
Balance at the ending of the period	$ 719

DERIVATIVE AND HEDGING ACTIVI_3

DERIVATIVE AND HEDGING ACTIVITIES - (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Derivative and hedging activities
Asset derivative contracts	$ 10,483	$ 13,869
Liability derivative contracts	(45,189)	(33,249)
Derivatives not designated as hedging contracts
Derivative and hedging activities
Asset derivative contracts	10,483	13,869
Liability derivative contracts	(45,189)	(33,249)
Derivatives not designated as hedging contracts | Commodity contracts | Current assets - receivables from derivative contracts
Derivative and hedging activities
Asset derivative contracts	5,869	8,992
Derivatives not designated as hedging contracts | Commodity contracts | Other noncurrent assets - receivables from derivative contracts
Derivative and hedging activities
Asset derivative contracts	4,614	4,877
Derivatives not designated as hedging contracts | Commodity contracts | Current liabilities - liabilities from derivative contracts
Derivative and hedging activities
Liability derivative contracts	(25,554)	(17,191)
Derivatives not designated as hedging contracts | Commodity contracts | Other noncurrent liabilities - liabilities from derivative contracts
Derivative and hedging activities
Liability derivative contracts	$ (19,635)	$ (16,058)

DERIVATIVE AND HEDGING ACTIVI_4

DERIVATIVE AND HEDGING ACTIVITIES - Realized Unrealized (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Derivative and hedging activities
Total net (loss) gain on derivative contracts	$ 1,223	$ 4,473	$ (22,964)	$ 23,946
Derivatives not designated as hedging contracts | Commodity contracts
Derivative and hedging activities
Total net (loss) gain on derivative contracts	1,223	4,473	(22,964)	23,946
Derivatives not designated as hedging contracts | Commodity contracts | Other Income Expense
Derivative and hedging activities
Unrealized (loss) gain on commodity contracts	4,434	2,332	(15,327)	23,336
Realized (loss) gain on commodity contracts	$ (3,211)	$ 2,141	$ (7,637)	$ 610

DERIVATIVE AND HEDGING ACTIVI_5

DERIVATIVE AND HEDGING ACTIVITIES - Open Contracts (Details)	6 Months Ended
	Jun. 30, 2024 MMBTU $ / MMBTU $ / bbl bbl
January 2023 - December 2023 | Fixed Swap | Natural Gas
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	2,537,743
January 2023 - December 2023 | Fixed Swap | Natural Gas | 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	861,244
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	62.78
January 2023 - December 2023 | Basis Swap | Natural Gas
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	3,412,284
January 2023 - December 2023 | Basis Swap | Natural Gas | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	(0.84)
January 2023 - December 2023 | Basis Swap | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	862,178
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	0.26
January 2023 - December 2023 | WTI NYMEX Roll | Crude oil | Maximum
Derivative and hedging activities
Volume in Bbl's | bbl	850,708
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	0.21
January 2023 - December 2023 | Collars | Natural Gas
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	875,400
January 2023 - December 2023 | Call option | Natural Gas | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	4.81
January 2023 - December 2023 | Put options | Natural Gas | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	3.48
January 2024 - December 2024 | Fixed Swap | Natural Gas | Minimum
Derivative and hedging activities
Floor (in dollars per Mmbtu's/Bbl's)	4,326,712
January 2024 - December 2024 | Fixed Swap | Natural Gas | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	3.42
January 2024 - December 2024 | Fixed Swap | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	1,435,236
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	61.77
January 2024 - December 2024 | Basis Swap | Natural Gas
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	5,950,283
January 2024 - December 2024 | Basis Swap | Natural Gas | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	(0.68)
January 2024 - December 2024 | Basis Swap | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	1,451,319
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	0.25
January 2024 - December 2024 | WTI NYMEX Roll | Crude oil | Maximum
Derivative and hedging activities
Volume in Bbl's | bbl	1,451,319
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	0.13
January 2024 - December 2024 | Collars | Natural Gas
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	1,651,321
January 2024 - December 2024 | Call option | Natural Gas | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	5.12
January 2024 - December 2024 | Put options | Natural Gas | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	3.72
January 2025 - December 2025 | Fixed Swap | Natural Gas
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	2,431,053
January 2025 - December 2025 | Fixed Swap | Natural Gas | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	3.96
January 2025 - December 2025 | Fixed Swap | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	1,029,685
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	63.59
January 2025 - December 2025 | Basis Swap | Natural Gas
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	4,455,681
January 2025 - December 2025 | Basis Swap | Natural Gas | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	(0.77)
January 2025 - December 2025 | Basis Swap | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	1,036,713
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	0.05
January 2025 - December 2025 | WTI NYMEX Roll | Crude oil | Maximum
Derivative and hedging activities
Volume in Bbl's | bbl	1,036,713
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	(0.01)
January 2025 - December 2025 | Collars | Natural Gas
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	2,063,812
January 2025 - December 2025 | Call option | Natural Gas | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	5.26
January 2025 - December 2025 | Put options | Natural Gas | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	3.70
January 2026 - December 2026 | Fixed Swap | Natural Gas
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	2,135,815
January 2026 - December 2026 | Fixed Swap | Natural Gas | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	3.71
January 2026 - December 2026 | Fixed Swap | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	786,989
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	61.87
January 2026 - December 2026 | Basis Swap | Natural Gas
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	3,472,222
January 2026 - December 2026 | Basis Swap | Natural Gas | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	(0.73)
January 2026 - December 2026 | Basis Swap | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	791,105
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	0.44
January 2026 - December 2026 | WTI NYMEX Roll | Crude oil | Maximum
Derivative and hedging activities
Volume in Bbl's | bbl	791,105
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	(0.03)
January 2026 - December 2026 | Collars | Natural Gas
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	1,355,000
January 2026 - December 2026 | Call option | Natural Gas | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	5.57
January 2026 - December 2026 | Put options | Natural Gas | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	3.66

DERIVATIVE AND HEDGING ACTIVI_6

DERIVATIVE AND HEDGING ACTIVITIES - Netting Arrangements (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Derivative Assets
Gross Amounts Presented in the Consolidated Balance Sheet	$ 10,483	$ 13,869
Amounts Not Offset in the Consolidated Balance Sheet	(10,483)	(13,218)
Net Amount	0	651
Derivative Liabilities
Gross Amounts - Consolidated Balance Sheet	(45,189)	(33,249)
Amounts Not Offset - Consolidated Balance Sheet	10,483	13,218
Net Amount	$ (34,706)	$ (20,031)

ASSET RETIREMENT OBLIGATIONS (D

ASSET RETIREMENT OBLIGATIONS (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Activity related to ARO liability
Liability for asset retirement obligations at beginning of the period	$ 17,458
Accretion expense	477
Liabilities incurred	200
Liability for asset retirement obligations at end of period	$ 18,135

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details)	1 Months Ended	6 Months Ended
	May 31, 2022 MMcf / d $ / Mcf	Jun. 30, 2024
Commitments and contingencies
Minimum volume commitment | MMcf / d	20,000
Volume commitment term	5 years
Minimum
Commitments and contingencies
Treating rate paid | $ / Mcf	1.71
Gathering, transportation and sales | West Texas | Minimum
Commitments and contingencies
Period of commitment for production from the date of first production		1 year
Gathering, transportation and sales | West Texas | Maximum
Commitments and contingencies
Period of commitment for production from the date of first production		20 years

REDEEMABLE CONVERTIBLE PREFER_3

REDEEMABLE CONVERTIBLE PREFERRED STOCK (Details) $ / shares in Units, $ in Thousands			3 Months Ended		6 Months Ended
	May 13, 2024 USD ($) $ / shares shares	Mar. 27, 2024 USD ($) person shareholder $ / shares shares	Jun. 30, 2024 USD ($) $ / shares	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) $ / shares shares	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)	Mar. 28, 2023
Class of Stock [Line Items]
Series A redeemable convertible preferred stock			$ 159,535		$ 159,535		$ 106,535
Cash Dividend Rate
Class of Stock [Line Items]
Dividend rate (as a percent)					14.50%
PIK Dividend Rate
Class of Stock [Line Items]
Dividend rate (as a percent)					16%
Redeemable convertible preferred stock
Class of Stock [Line Items]
Preferred stock voting rights					no
Liquidation preference per share (in dollars per share) | $ / shares			$ 1,000		$ 1,000
Preferred stock, liquidation			$ 138,000		$ 138,000
Percentage of liquidation preference paid to redeem shares			107.50%		107.50%			18%
Threshold of time following change of control					20 days
Percentage of common stock value over Conversion Price threshold			130%		130%
Period past maturity date of term loan agreement if election of cash payment option is not permitted					1 year
Series A redeemable convertible preferred stock redemption amount			$ 159,500		$ 159,500
Redeemable convertible preferred stock | Maximum
Class of Stock [Line Items]
Threshold of time following change of control					150 days
Redeemable convertible preferred stock | Cash Dividend Rate
Class of Stock [Line Items]
Dividend rate (as a percent)					14.50%
Redeemable convertible preferred stock | PIK Dividend Rate
Class of Stock [Line Items]
Dividend rate (as a percent)					16%
Deemed dividends for Series A preferred stock			$ 7,900	$ 1,000	$ 13,000	$ 1,000
Redeemable convertible preferred stock | Redemption Period One
Class of Stock [Line Items]
Percentage of liquidation preference paid to redeem shares			100%		100%
Redeemable convertible preferred stock | Redemption Period One | Maximum
Class of Stock [Line Items]
Redemption feature, time period after closing date					120 days
Redeemable convertible preferred stock | Redemption Period Two
Class of Stock [Line Items]
Percentage of liquidation preference paid to redeem shares			102%		102%
Redeemable convertible preferred stock | Redemption Period Two | Minimum
Class of Stock [Line Items]
Redemption feature, time period after closing date					120 days
Redeemable convertible preferred stock | Redemption Period Two | Maximum
Class of Stock [Line Items]
Redemption feature, time period after closing date					180 days
Redeemable convertible preferred stock | Redemption Period Three
Class of Stock [Line Items]
Percentage of liquidation preference paid to redeem shares			105%		105%
Redeemable convertible preferred stock | Redemption Period Three | Minimum
Class of Stock [Line Items]
Redemption feature, time period after closing date					180 days
Redeemable convertible preferred stock | Redemption Period Three | Maximum
Class of Stock [Line Items]
Redemption feature, time period after closing date					1 year
Redeemable convertible preferred stock | Redemption Period Four
Class of Stock [Line Items]
Percentage of liquidation preference paid to redeem shares			108%		108%
Redeemable convertible preferred stock | Redemption Period Four | Minimum
Class of Stock [Line Items]
Redemption feature, time period after closing date					1 year
Redeemable convertible preferred stock | Redemption Period Four | Maximum
Class of Stock [Line Items]
Redemption feature, time period after closing date					2 years
Redeemable convertible preferred stock | Redemption Period Five
Class of Stock [Line Items]
Percentage of liquidation preference paid to redeem shares			120%		120%
Redeemable convertible preferred stock | Redemption Period Five | Minimum
Class of Stock [Line Items]
Redemption feature, time period after closing date					2 years
Redeemable Convertible Preferred Stock Series A
Class of Stock [Line Items]
Shares | shares					25,000
Conversion Price | $ / shares			$ 9.03		$ 9.03
Net Equity Recorded					$ 23,541
Non-cash Deemed Dividends					$ 1,459
Redeemable Convertible Preferred Stock Series A-1
Class of Stock [Line Items]
Shares | shares					38,000
Conversion Price | $ / shares			7.63		$ 7.63
Net Equity Recorded					$ 36,941
Non-cash Deemed Dividends					$ 1,059
Redeemable Convertible Preferred Stock Series A-2
Class of Stock [Line Items]
Shares | shares					35,000
Conversion Price | $ / shares			6.21		$ 6.21
Net Equity Recorded					$ 34,006
Non-cash Deemed Dividends					$ 994
Redeemable Convertible Preferred Stock Series A-3
Class of Stock [Line Items]
Preferred stock voting rights		no
Net Proceeds Received		$ 19,500
Shares issued | shares		20,000
Shares | shares					20,000
Conversion Price | $ / shares		$ 6.83	6.83		$ 6.83
Net Equity Recorded					$ 19,397
Non-cash Deemed Dividends					$ 603
Board of directors | person		6
Number of shareholders in private placement | shareholder		3
Issue discount		$ 500
Redeemable Convertible Preferred Stock Series A-3 | Cash Dividend Rate
Class of Stock [Line Items]
Dividend rate (as a percent)		14.50%
Redeemable Convertible Preferred Stock Series A-3 | PIK Dividend Rate
Class of Stock [Line Items]
Dividend rate (as a percent)		16%
Redeemable Convertible Preferred Stock Series A-4
Class of Stock [Line Items]
Preferred stock voting rights	no
Net Proceeds Received	$ 19,500
Shares issued | shares	20,000
Shares | shares					20,000
Conversion Price | $ / shares	$ 6.42		$ 6.42		$ 6.42
Net Equity Recorded					$ 19,385
Non-cash Deemed Dividends					$ 615
Issue discount	$ 500
Redeemable Convertible Preferred Stock Series A-4 | Cash Dividend Rate
Class of Stock [Line Items]
Dividend rate (as a percent)	14.50%
Redeemable Convertible Preferred Stock Series A-4 | PIK Dividend Rate
Class of Stock [Line Items]
Dividend rate (as a percent)	16%

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, 2024	Mar. 31, 2024	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Basic:
Net loss	$ (105)	$ (31,203)	$ 32,688	$ (53,799)	$ (4,748)	$ 22,811	$ (31,307)	$ 18,063
Less: Preferred stock dividend	(8,586)				(997)		(14,218)	(2,489)
Less: Undistributed earnings allocable to preferred shareholders								(1,301)
Net (loss) income available to common stockholders	$ (8,691)				$ (5,745)		$ (45,525)	$ 14,273
Weighted average basic number of common shares outstanding basic	16,457				16,457		16,457	16,425
Basic net (loss) income per share of common share (in dollars per share)	$ (0.53)				$ (0.35)		$ (2.77)	$ 0.87
Diluted:
Net (loss) income available to common stockholders - basic	$ (8,691)				$ (5,745)		$ (45,525)	$ 14,273
Reallocation of undistributed earnings								7
Net (loss) income available to common stockholders diluted	$ (8,691)				$ (5,745)		$ (45,525)	$ 14,280
Weighted average basic number of common shares outstanding basic	16,457				16,457		16,457	16,425
Common stock equivalent shares representing shares issuable upon vesting of restricted stock units								95
Weighted average diluted number of common shares outstanding diluted	16,457				16,457		16,457	16,520
Diluted net income (loss) per share of common stock (in dollars per share)	$ (0.53)				$ (0.35)		$ (2.77)	$ 0.86
Common stock equivalents excluded from computation of diluted earnings per share of common stock because of anti-dilutive effect	300				600		300	500

ADDITIONAL FINANCIAL STATEMEN_3

ADDITIONAL FINANCIAL STATEMENT INFORMATION (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023	May 31, 2022
Accounts receivable, net:
Oil, natural gas and natural gas liquids revenues	$ 21,243	$ 19,802
Joint interest accounts	2,095	2,138
Other	1,556	1,081
Total	24,894	23,021
Prepaids and other:
Prepaids	396	490
Funds in escrow	347	345
Other	78	72
Total	821	907
Other assets (Non-current):
Investment in unconsolidated affiliate	1,093	1,283
Contract asset	18,498	15,062
Funds in escrow	565	552
Other	760	759
Total	20,916	17,656
Accounts payable and accrued liabilities:
Trade payables	34,522	24,915
Accrued oil and natural gas capital costs	6,694	15,337
Revenues and royalties payable	26,345	18,986
Accrued employee compensation	1,052	520
Accrued lease operating expenses	7,512	6,418
Other	331	349
Total	76,456	$ 66,525
Payments for equity method investment	3,400
Wink Amine Treater, LLC
Accounts payable and accrued liabilities:
Equity interest			5%
Payments for equity method investment	$ 18,500
Minimum
Accounts payable and accrued liabilities:
Interest rate on advance	15%

MERGER AGREEMENT (Details)

MERGER AGREEMENT (Details) - USD ($) $ / shares in Units, $ in Thousands			6 Months Ended
	Apr. 24, 2024	Dec. 14, 2023	Jun. 30, 2024	Jan. 24, 2024	Dec. 31, 2023
Merger Agreement [Line Items]
Common stock, par value (in dollars per share)			$ 0.0001		$ 0.0001
Proceeds from merger deposit			$ 10,000
Merger Agreement
Merger Agreement [Line Items]
Common stock, par value (in dollars per share)		$ 0.0001
Consideration paid per share of common stock (in dollars per shares)		$ 9.80
Total consideration		$ 450,000
Amount to be distributed from escrow account				$ 10,000
Proceeds from merger deposit	$ 100