Battalion Oil: Surging Stock Price May Result In Preferred Share Conversion Into Common Shares

Elephant AnalyticsInvesting Group LeaderFollow5ShareSavePlay(12min)CommentsSummaryBattalion's shares have soared due to traders piling in on recent news (Iran) combined with a small float and previously modest market cap.Battalion's common share count could go from around 16.5 million to over 50 million with its recent offering and the conversion of preferred shares to common.At $26 per share, Battalion's enterprise value would thus be $1.4 billion, around 5x its PDP PV-10 at mid-$70s oil.Battalion's longer-term outlook would improve significantly with the conversion of preferred shares to common shares.I estimate its intrinsic value at around $4.15 per share, with full conversion of preferred shares to common shares, up from zero intrinsic value for the common shares without that conversion.Looking for more investing ideas like this one? Get them exclusively at Distressed Value Investing. Learn More » halbergman/iStock via Getty Images Battalion Oil Corporation's (BATL) share price has soared recently to approximately $26 per share. It appeared to have attracted the attention of traders in late January 2026 after resolving its gas processing issues. That resulted in itsThis article was written byElephant Analytics11.81K FollowersFollowAaron Chow, aka Elephant Analytics has 15+ years of analytical experience and is a top rated analyst on TipRanks. Aaron previously co-founded a mobile gaming company (Absolute Games) that was acquired by PENN Entertainment. He used his analytical and modeling skills to design the in-game economic models for two mobile apps with over 30 million in combined installs. He is the author of the investing group Distressed Value Investing, which focuses on both value opportunities and distressed plays, with a significant focus on the energy sector. Learn more>>Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Short position through short-selling of the stock, or purchase of put options or similar derivatives in BATL over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.