Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (State or other jurisdiction of incorporation or organization) 1311 (Primary Standard Industrial Classification Code Number) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number ...

Exhibit 99.1 Battalion Oil Corporation Announces First Quarter 2025 Financial and Operating Results HOUSTON, TEXAS – May 14, 2025 – Battalion Oil Corporation (NYSE American: BATL, "Battalion" or the "Company") today announced financial and operating results for the first quarter of 2025. Key Highlights Management Comments The Company has continued drilling operations as part of its previously announced 2025 six-well activity plan, completing four Monument Draw wells and drilling ahead of schedule on the rem ...

Key Highlights - Battalion Oil Corporation has continued its drilling operations, completing four wells in the Monument Draw area and drilling ahead of schedule on two additional wells in West Quito [2] - The company reported average daily net production of 11,900 Boe/d (53% oil) and total operating revenue of $47.5 million for Q1 2025, compared to 12,989 Boe/d (48% oil) and $49.9 million in Q1 2024 [4] - The acid gas injection facility treated approximately 18 MMcf/d on average during Q1 2025, with subsequent increases in daily rates to over 30 MMcf/d [3] Management Comments - The company is in the final stages of drilling operations on the last well of its six-well activity plan for 2025, with capital expenditures on the first well in West Quito approximately $1.0 million under AFE [2] - Recently completed wells in the Monument Draw field are expected to deliver over 1,000,000 barrels of oil ultimate recovery each [2] Results of Operations - Battalion reported a net loss available to common stockholders of $5.8 million, or a net loss of $0.35 per share for Q1 2025, compared to a net loss of $36.8 million, or $2.24 per share in Q1 2024 [6][12] - Adjusted EBITDA for Q1 2025 was $15.1 million, an increase from $9.4 million in Q1 2024 [6] Financial Performance - Lease operating and workover expenses increased to $11.01 per Boe in Q1 2025 from $10.55 per Boe in Q1 2024, primarily due to inflationary market increases [5] - General and administrative expenses rose to $4.12 per Boe in Q1 2025 from $3.44 per Boe in Q1 2024, driven by higher payroll and benefits costs [5] Liquidity and Balance Sheet - As of March 31, 2025, the company had $225.0 million in term loan indebtedness and total liquidity of $73.6 million [9] - Current assets increased to $111.4 million as of March 31, 2025, compared to $54.1 million a year earlier [14]

Production and Revenue - Average daily net production for Q4 2024 was 12,750 Boe/d (55% oil), an increase from 12,022 Boe/d (46% oil) in Q4 2023, resulting in total operating revenue of $49.7 million compared to $47.2 million in the prior year[5] - The company generated full-year sales volumes of 12,667 Boe/d (51% oil) for 2024[6] - Crude oil production increased to 643 MBbls in Q4 2024, up from 510 MBbls in Q4 2023, while total production volumes rose to 1,173 MBoe from 1,106 MBoe[26] - Average daily production for the year 2024 was 12,667 Boe/d, a decrease from 13,784 Boe/d in 2023[26] Financial Performance - The company reported a net loss available to common stockholders of $30.9 million, equating to a net loss of $1.88 per share, while adjusted EBITDA increased to $18.0 million from $10.0 million in Q4 2023[8] - Battalion Oil Corporation reported a net loss of $22,202,000 for the three months ended December 31, 2024, compared to a net income of $32,688,000 for the same period in 2023[23] - For the three months ended December 31, 2024, the net loss available to common stockholders was $(30,881) thousand, compared to a net income of $26,993 thousand for the same period in 2023[29] - Adjusted EBITDA for the three months ended December 31, 2024, was $18,019 thousand, an increase from $9,972 thousand in the same period of 2023[34] Expenses and Liabilities - Lease operating and workover expenses decreased to $11.26 per Boe in Q4 2024 from $11.87 per Boe in Q4 2023, primarily due to increased production[7] - The company incurred capital expenditures of $12,847,000 for oil and natural gas in Q4 2024, compared to $16,196,000 in Q4 2023[23] - Battalion Oil Corporation's total liabilities decreased to $431,048,000 as of December 31, 2024, from $485,338,000 in 2023[21] - The company reported a significant increase in liabilities from derivative contracts, which totaled $12,330,000 in current liabilities as of December 31, 2024, compared to $17,191,000 in 2023[21] Cash Flow and Assets - Net cash provided by operating activities for the year 2024 was $35,355,000, compared to $17,589,000 in 2023[23] - The company reported a net cash provided by operating activities of $6,686 thousand for the three months ended December 31, 2024, compared to $6,524 thousand in the same period of 2023[29] - Total current assets decreased to $54,052,000 as of December 31, 2024, down from $90,539,000 a year earlier, primarily due to a reduction in cash and cash equivalents[21] Stockholder Equity and Market Performance - Battalion Oil Corporation's stockholders' equity decreased to $4,120,000 as of December 31, 2024, from $68,021,000 in 2023, reflecting a growing accumulated deficit[21] - The diluted net loss per common share, as reported, was $(1.88) for the three months ended December 31, 2024, compared to $1.63 for the same period in 2023[29] Operational Developments - The company completed its six-well campaign ahead of schedule and under budget, with the newest pad averaging over 811 Boe/d in the first 120 days[3] - The acid gas injection (AGI) facility treated approximately 20 MMcf/d on average, processing over 6.9 Bcf of sour gas to date, leading to significant cost savings[4] - The company commenced drilling operations in Monument Draw as part of its 2025 six-well activity plan, with four wells already drilled[3] Debt and Financing - The company refinanced its term loan, increasing liquidity and resulting in total outstanding borrowings of $225.0 million[12] - The interest expense for the three months ended December 31, 2024, was $6,135 thousand, down from $8,917 thousand in the same period of 2023[34] - The loss on extinguishment of debt for the three months ended December 31, 2024, was $7,489 thousand, with no such loss reported in the same period of 2023[34] Impairments and Non-Cash Charges - The company incurred an impairment of contract asset amounting to $18,511 thousand for the year ended December 31, 2024[29] - The total mark-to-market non-cash charge for the three months ended December 31, 2024, was $1,648 thousand, a significant decrease from $(45,403) thousand in the same period of 2023[29] - The unrealized loss on derivatives contracts for the three months ended December 31, 2024, was $1,648 thousand, compared to a gain of $(45,403) thousand in the same period of 2023[34] Mergers and Acquisitions - The company terminated the previously announced merger agreement with Fury Resources due to unmet funding and closing requirements[11]

Core Insights - Battalion Oil Corporation reported financial and operational results for Q4 2024, highlighting increased production and revenue compared to Q4 2023 [1][5]. Operational Highlights - The company completed its 2024 six-well campaign ahead of schedule and under budget, with final well capital remaining below $950 per lateral foot [3]. - The average production from the newest pad was over 811 Boe/d in the first 120 days, while the first pad exceeded 1,085 Boe/d over 404 days [3]. - The acid gas injection facility treated approximately 20 MMcf/d and processed over 6.9 Bcf of sour gas, leading to significant cost savings [4]. Financial Performance - Average daily net production in Q4 2024 was 12,750 Boe/d (55% oil), up from 12,022 Boe/d (46% oil) in Q4 2023, with total operating revenue increasing to $49.7 million from $47.2 million [5][7]. - The company reported a net loss of $30.9 million for Q4 2024, translating to a net loss of $1.88 per share, while adjusted EBITDA rose to $18.0 million from $10.0 million in Q4 2023 [7][8]. Cost Management - Lease operating and workover expenses decreased to $11.26 per Boe in Q4 2024 from $11.87 per Boe in Q4 2023, attributed to increased production [6]. - Gathering and other expenses also fell to $10.45 per Boe from $13.31 per Boe, primarily due to the AGI facility's startup [6]. Liquidity and Debt Management - As of December 31, 2024, the company had $162.1 million in outstanding debt and total liquidity of $19.7 million [9]. - Battalion successfully refinanced its term loan, increasing liquidity by $61.3 million through incremental term loans [9][12]. Strategic Developments - The company terminated its merger agreement with Fury Resources due to unmet funding requirements [11]. - Year-end 2024 reserves were approximately 64.9 million barrels of oil equivalent (MMBoe), with a discounted future net cash flow measure of about $447.7 million [8].

Core Viewpoint - Battalion Oil Corporation has terminated its merger agreement with Fury Resources due to Fury's inability to meet the obligations required to close the transaction [1][2]. Company Operations - Battalion has initiated a new drilling campaign in the fourth quarter, with the first two-well pad in Monument Draw performing ahead of schedule in terms of cycle time and budget [3]. - The two previously announced Vermejo wells have come online, producing an initial 30-day output of 1,211 barrels of oil equivalent per day (Boe/d), with 84% of this being oil, while capital costs remain below $950 per foot [3]. - The acid gas injection (AGI) facility has treated over 5.1 billion cubic feet (bcf) of sour gas, with daily volumes exceeding 30 million cubic feet per day (MMcf/d) [5]. The company is working towards full inlet capacity and is evaluating next steps for a second AGI well that is already permitted, drilled, and completed [5]. Corporate Actions - In light of the termination of the merger agreement, Battalion has canceled the special meeting of stockholders that was scheduled for December 27, 2024 [4].

Merger and Acquisition - The company entered into a merger agreement with Fury Resources, with a total transaction value of approximately $450.0 million, converting each share of common stock into $9.80 in cash[112][113] - As of September 19, 2024, the merger consideration was amended to $7.00 per share of common stock, reflecting a significant reduction[117] - The company has incurred approximately $4.6 million in costs related to the merger as of November 8, 2024, with ongoing expenses expected[122] Financing Activities - The company raised $19.5 million from the sale of 20,000 shares of Series A-3 Convertible Preferred Stock in March 2024, net of $0.5 million in original issue discount[123] - An additional $19.5 million was raised from the sale of 20,000 shares of Series A-4 Redeemable Convertible Preferred Stock in May 2024, also net of $0.5 million in original issue discount[124] - The company issued $95.6 million in preferred equity funding during 2023 and an additional $19.5 million in Q1 2024 from its three largest existing stockholders[137] - The company received $38.8 million from preferred stock equity issuances during the nine months ended September 30, 2024[167] Operational Performance - The AGI Facility has processed over 3.7 Bcf of gas since its operation began on March 9, 2024, despite facing delays and higher costs[132] - The company advanced approximately $18.5 million for workover operations at the AGI Facility, with multiple remedies available for recovery[131] - The company generated a net loss of $33.2 million for the nine months ended September 30, 2024, with negative working capital of $64.5 million[134] - Operating revenues for the nine months ended September 30, 2024 were $143.7 million, down from $171.6 million in 2023, primarily due to lower average realized prices and production volumes[173] - Production averaged 12,639 Boe/d for the nine months ended September 30, 2024, down from 14,377 Boe/d in 2023, attributed to capital expenditure timing and natural production declines[174] Cash Flow and Liquidity - As of September 30, 2024, the company had $29.8 million in cash and cash equivalents and $50.0 million in debt repayments due through September 2025[134] - The company’s liquidity is susceptible to commodity price declines, despite using derivative instruments for partial protection[111] - Net cash flows provided by operating activities for the nine months ended September 30, 2024 were $28.7 million, an increase from $11.1 million for the same period in 2023[161] - Net cash flows used in investing activities for the nine months ended September 30, 2024 were approximately $52.6 million, compared to $37.1 million in 2023, primarily for drilling and completion activities[162] - Net cash flows used in financing activities for the nine months ended September 30, 2024 were $3.8 million, a decrease from $35.9 million provided in 2023[167] Debt and Interest - As of September 30, 2024, the company had $147.7 million in outstanding indebtedness under the Amended Term Loan Agreement, with a maturity date of November 24, 2025[151] - The weighted average interest rate on borrowings for the quarter ended September 30, 2024, was approximately 12.98%[151] - The company is required to make a final payment of $97.7 million at maturity on November 24, 2025[134] - The principal amount of term loan debt was $147.7 million as of September 30, 2024, with a weighted average interest rate of 12.79%[192] Cost Management - The company plans to reduce operating and capital costs to improve cash flow, having issued preferred stock totaling $134.6 million as of September 30, 2024[139] - Lease operating expenses for the nine months ended September 30, 2024 were $34.2 million, consistent with the same period in 2023, but per unit costs increased due to inflationary pressures[175] Compliance and Covenants - The Amended Term Loan Agreement includes financial covenants such as a Current Ratio of not less than 0.90 to 1.00 for the fiscal quarter ending September 30, 2024[155] - The company is not in compliance with the Total Net Leverage Ratio covenant as of March 31, 2024, but cured this noncompliance with a prepayment of $17.3 million[138] Strategic Initiatives - The company is exploring strategic transactions and alternative liquidity sources, including potential asset sales and refinancing options[141] - The company has a joint venture with Caracara Services, LLC to develop an acid gas treatment and carbon sequestration facility in Texas[128] Market Sensitivity - The company’s financial results are significantly influenced by oil and natural gas production volumes and commodity prices, which are subject to market fluctuations[110] - A 10% change in market interest rates would impact cash flows by approximately $2.5 million per year based on the current variable interest rate debt[192] - The company expects to hedge approximately 50% to 85% of anticipated oil and natural gas production over the next four years[188] Expense Management - Workover and other expenses decreased to $1.2 million for Q3 2024 from $0.7 million in Q3 2023, and for the nine months, they decreased to $3.1 million from $4.7 million[176] - Taxes other than income decreased to $2.5 million for Q3 2024 from $3.3 million in Q3 2023, and for the nine months, they decreased to $8.9 million from $9.7 million[177] - Gathering and other expenses decreased to $12.4 million for Q3 2024 from $15.5 million in Q3 2023, and for the nine months, they decreased to $41.9 million from $48.9 million[178] - General and administrative expenses decreased to $3.8 million for Q3 2024 from $3.9 million in Q3 2023, and for the nine months, they decreased to $11.1 million from $14.8 million[180] - Depletion expense decreased to $12.1 million for Q3 2024 from $13.1 million in Q3 2023, and for the nine months, it decreased to $37.6 million from $43.2 million[182] Derivative Gains and Interest Expense - The company recorded a net derivative gain of $26.9 million for Q3 2024 compared to a net derivative loss of $53.7 million in Q3 2023[184] - Interest expense decreased to $6.3 million for Q3 2024 from $6.9 million in Q3 2023, and for the nine months, it decreased to $19.8 million from $24.2 million[185]

Production Performance - Average daily net production for Q3 2024 was 12,076 Boe/d (52% oil), a decrease from 12,717 Boe/d (46% oil) in Q3 2023[4] - Crude oil production increased to 577 MBbls in Q3 2024 from 539 MBbls in Q3 2023, representing a growth of 7.1%[18] - Natural gas production decreased to 1,844 MMcf in Q3 2024 from 2,054 MMcf in Q3 2023, a decline of 10.2%[18] - Total production volumes for Q3 2024 were 1,111 MBoe, down from 1,170 MBoe in Q3 2023, a decrease of 5.0%[18] - The Glacier and Rio pads continue to perform above expectations, with cumulative production averaging 370 Mboe (64% oil) and 132 Mboe (86% oil) respectively[3] Financial Performance - Total operating revenue for Q3 2024 was $45.3 million, down from $54.1 million in Q3 2023, primarily due to a $5.07 decrease in average realized prices[4] - The company reported a net income of $5.6 million or $0.34 per share for Q3 2024, with an adjusted diluted net loss of $21.5 million or $1.31 per share[5] - Net income for the three months ended September 30, 2024, was $21,628, compared to a net loss of $53,799 for the same period in 2023[15] - Net income available to common stockholders for Q3 2024 was $5.587 million, compared to a net loss of $57.662 million in Q3 2023[19] - The company reported a basic net income per share of $0.34 for the three months ended September 30, 2024, compared to a loss of $3.50 per share in the same period of 2023[15] Expenses and Costs - Lease operating and workover expense increased to $11.56 per Boe in Q3 2024 from $10.13 per Boe in Q3 2023, attributed to inflationary market increases[5] - Total operating expenses for the three months ended September 30, 2024, were $44,212, down from $47,289 in the same period of 2023, a decrease of 4.6%[15] - Total operating costs, as reported, were $28.50 per Boe in Q3 2024, slightly down from $28.94 per Boe in Q3 2023[18] - The company experienced a decrease in depletion, depreciation, and accretion expenses, which were $12,533 for the three months ended September 30, 2024, compared to $13,426 in the same period of 2023[21] Cash Flow and Liquidity - Total liquidity as of September 30, 2024, was $29.8 million, with $147.8 million of indebtedness outstanding[6] - Cash flows from operating activities showed a net cash used of $5,072 thousand for the three months ended September 30, 2024, compared to a net cash provided of $2,416 thousand in the same period last year[17] - The company reported a net decrease in cash, cash equivalents, and restricted cash of $(24,596) thousand for the three months ended September 30, 2024, compared to an increase of $24,076 thousand in the same period last year[17] - Cash, cash equivalents, and restricted cash at the end of the period were $29,925 thousand, down from $42,680 thousand at the end of the same period in 2023[17] Derivative Contracts and Unrealized Losses - The company reported a net gain on derivative contracts of $26,896 for the three months ended September 30, 2024, compared to a loss of $53,687 in the same period of 2023[15] - The company experienced a significant unrealized loss on derivative contracts of $(28,091) thousand for the three months ended September 30, 2024, compared to a gain of $46,805 thousand in the same period of 2023[17] - Unrealized losses on derivatives contracts were reported at $28,091 for the three months ended September 30, 2024, a significant improvement from unrealized gains of $46,805 in the same period of 2023[21] Strategic Developments - Battalion amended its merger agreement with Fury Resources, reducing the purchase price to $7.00 per share and requiring preferred equity holders to roll over 100% of their equity[2] - The company plans to hold a special meeting of stockholders on November 19, 2024, to vote on the merger agreement with Fury Resources[8] - Battalion Oil Corporation continues to focus on strategic adjustments to enhance financial performance, as indicated by the adjustments made in their EBITDA calculations[21] Adjusted EBITDA - Adjusted EBITDA for Q3 2024 was $13.5 million, slightly down from $13.6 million in Q3 2023[5] - Adjusted EBITDA for the three months ended September 30, 2024, was $13,458, slightly down from $13,625 in the same period of the previous year[21] - For the nine months ended September 30, 2024, Battalion reported an adjusted EBITDA of $38,473, down from $56,543 in the same period of 2023[21] - The company’s adjusted LTM EBITDA was reported at $48,445, indicating a focus on improving operational efficiency[23]

Core Insights - Battalion Oil Corporation reported its financial and operational results for Q3 2024, highlighting a decrease in production and revenue compared to the same period in 2023 [1][5]. Financial Performance - Average daily net production for Q3 2024 was 12,076 Boe/d (52% oil), down from 12,717 Boe/d (46% oil) in Q3 2023 [5][21]. - Total operating revenue for Q3 2024 was $45.3 million, a decrease from $54.1 million in Q3 2023, primarily due to a $5.07 drop in average realized prices and a decrease in production [5][6]. - The company reported a net income available to common stockholders of $5.6 million, or $0.34 per share, compared to a net loss of $57.7 million, or $(3.50) per share, in Q3 2023 [7][24]. Operational Highlights - The acid gas injection (AGI) facility treated approximately 18 MMcf/d on average and processed over 4.6 Bcf of sour gas, leading to expected savings of up to $2 million per month in gas treating costs [4][6]. - The company completed its six-well campaign ahead of schedule and under budget, with capital costs trending lower [3][5]. - The Vermejo two-well pad has been completed and is currently flowing back, with initial rates meeting company expectations [2][3]. Merger Agreement - Battalion amended its merger agreement with Fury Resources, reducing the purchase price to $7.00 per share and requiring existing preferred equity holders to roll over 100% of their preferred equity [2][9]. - A special meeting of stockholders is scheduled for November 19, 2024, to vote on the merger agreement [10]. Liquidity and Balance Sheet - As of September 30, 2024, the company had $147.8 million in outstanding indebtedness and total liquidity of $29.8 million [8][17]. - Current assets decreased to $57.6 million from $90.5 million at the end of 2023, while total assets were reported at $458 million [17][18].

Market Overview - U.S. stocks showed mixed performance with the Nasdaq Composite down more than 0.2% on Friday [1] - The Dow increased by 0.09% to 42,064.34, while the S&P 500 fell by 0.22% to 5,701.29 [1] Company Performance - Lennar Corporation reported better-than-expected financial results for Q3, projecting new orders between 19,000 to 19,300 and deliveries between 22,500 to 23,000 for Q4, with an average sales price of approximately $425,000 [2] - Banzai International, Inc. shares surged 131% to $6.62 following a 1-for-50 reverse stock split [2] - Battalion Oil Corporation shares increased by 120% to $6.48 after amending its merger agreement with Fury Resources for a cash acquisition at $7.00 per share [2] - Constellation Energy Corporation shares rose by 13% to $235.54 after signing a 20-year power purchase agreement with Microsoft [2] Declining Stocks - Corbus Pharmaceuticals Holdings, Inc. shares dropped 59% to $21.12 despite an Outperform rating and a price target of $82 from RBC Capital [3] - Sable Offshore Corp. shares fell 19% to $22.79 after announcing a $150 million private placement [3] - FedEx Corporation shares decreased by 15% to $254.45 due to weaker-than-expected Q1 results and lowered full-year guidance [3] Commodities - Oil prices increased by 0.1% to $72.03, while gold rose by 1.3% to $2,649.40 [4] - Silver prices were up 0.1% to $31.455, and copper fell by 0.4% to $4.33 [4] European Market Insights - European shares declined, with the eurozone's STOXX 600 down 1.34% and Germany's DAX down 1.43% [4] - Spain's trade deficit narrowed to EUR 3.2 billion in July from EUR 4.9 billion year-over-year [4] - The manufacturing climate indicator in France decreased to 98.6 in September from 98.9 [4] Asia Pacific Market Performance - Asian markets closed higher, with Japan's Nikkei 225 gaining 1.53% and Hong Kong's Hang Seng Index up 1.36% [5] - The Reserve Bank of India's foreign exchange reserves reached $689.5 billion as of September 13 [5] - The Bank of Japan maintained its key short-term interest rate at around 0.25% [5]