Core Insights - Battalion Oil Corporation (NYSE:BATL) experienced a significant share price increase of 309.02% from January 22 to January 29, 2026, marking it as one of the top-performing energy stocks during that week [1]. Company Overview - Battalion Oil Corporation is an independent energy company that focuses on the acquisition, production, exploration, and development of liquids-rich assets specifically in the Delaware Basin [2]. Recent Developments - On January 26, 2026, Battalion Oil's stock price surged after the company announced the termination of its gas treatment agreement with Wink Amine Treater due to the latter's acid gas injection facility being offline since August 2025. Battalion has since secured a new gas treating agreement with a large-cap midstream provider, alleviating previous output constraints [3]. - A significant facility expansion completed in Q4 2025 by the midstream provider now allows for the processing of all of Battalion's gas volumes from its Monument Draw Field. The facility is currently processing over 30 million cubic feet per day (MMcf/d) of gas production, a substantial increase from approximately 17.4 MMcf/d in December. This enhancement has resulted in an increase of about 1,200 net barrels per day in Battalion's average oil production for January [4].

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Murano Global Investments Plc (MRNO) is up 146% at $3.35 [3] - Kustom Entertainment, Inc. (KUST) is up 34% at $2.84 [3] - Ainos, Inc. (AIMD) is up 34% at $2.32 [3] - Stride, Inc. (LRN) is up 29% at $94.10 [3] - Shuttle Pharmaceuticals Holdings, Inc. (SHPH) is up 18% at $2.40 [3] - Battalion Oil Corporation (BATL) is up 16% at $3.83 [3] - C3.ai, Inc. (AI) is up 15% at $14.58 [3] - Lantronix, Inc. (LTRX) is up 14% at $7.87 [3] - Nextpower Inc. (NXT) is up 13% at $120.00 [3] - High Roller Technologies, Inc. (ROLR) is up 7% at $7.56 [3] Premarket Losers - Flora Growth Corp. (FLGC) is down 34% at $7.20 [4] - TEN Holdings, Inc. (XHLD) is down 29% at $2.47 [4] - Global Interactive Technologies, Inc. (GITS) is down 22% at $3.25 [4] - 5E Advanced Materials, Inc. (FEAM) is down 15% at $2.70 [4] - Vyome Holdings, Inc. (HIND) is down 14% at $2.79 [4] - Altimmune, Inc. (ALT) is down 11% at $5.48 [4] - BiomX Inc. (PHGE) is down 10% at $6.22 [4] - Qorvo, Inc. (QRVO) is down 9% at $74.94 [4] - Nuwellis, Inc. (NUWE) is down 9% at $3.45 [4] - Brenmiller Energy Ltd (BNRG) is down 9% at $2.90 [4]

Battalion Oil Corp (NYSE:BATL) shares are soaring higher Monday afternoon, as traders rush into high-beta energy plays amid a historic natural gas price spike triggered by Winter Storm Fern. Here’s what investors need to know.Battalion Oil shares are testing new highs. What’s driving BATL to record levels?Winter Storm Powers Historic Natural Gas RallyU.S. natural gas futures jumped more than 30% Monday, capping a roughly 125% four-session surge as the arctic blast tightened supplies and sent heating demand ...

Houston, Texas, Jan. 23, 2026 (GLOBE NEWSWIRE) -- Battalion Oil Corporation (NYSE American: BATL) (“Battalion” or the “Company”) today announced several operational updates related to its gas treating arrangements and production performance. Key Highlights Termination of Gas Treating Agreement (“GTA”) with Wink Amine Treater, LLC (“WAT”) related to its acid gas injection facility (“AGI Facility”).Entry into a gas treating agreement with a publicly traded large-cap midstream company. Management Comments The ...

Financial Performance - The company generated a net income of $10.1 million for the nine months ended September 30, 2025[137]. - Operating revenues for the three months ended September 30, 2025, were $43.4 million, a decrease from $45.1 million in the same period of 2024, primarily due to lower average realized prices[164]. - Oil, natural gas, and NGLs revenues decreased to $133.3 million for the nine months ended September 30, 2025, down from $143.7 million in 2024, primarily due to lower average realized prices and production volumes[165]. - Average production was 12,396 Boe per day for the nine months ended September 30, 2025, compared to 12,639 Boe per day in 2024, reflecting a decrease in production[165]. - Average daily production for the three months ended September 30, 2025, was 12,293 Boe, compared to 12,076 Boe for the same period in 2024[164]. - Net derivative gain for the nine months ended September 30, 2025, was $26.0 million, compared to $3.9 million in 2024[176]. Financial Position - The company had negative working capital of $3.9 million at September 30, 2025[139]. - The company continues to report negative stockholders' equity of $(20.3) million as of September 30, 2025, along with ongoing losses from continuing operations[144]. - As of March 31, 2025, the company reported stockholders' equity of $(1.8) million, failing to meet NYSE American's listing standards requiring $2 million or more due to losses in three of the last four fiscal years[144]. - The company had $50.5 million in cash and cash equivalents as of September 30, 2025[139]. Debt and Liabilities - The company is required to maintain an Asset Coverage Ratio of at least 1.85x through December 31, 2026[138]. - The Total Net Leverage Ratio must not exceed 2.50x as of September 30, 2025[138]. - The company is required to make total debt repayments of $22.5 million through September 2026 under its 2024 Amended Term Loan Agreement[150]. - Scheduled amortization payments under the 2024 Amended Term Loan Agreement total $5.6 million for the remainder of 2025 and $22.5 million in 2026[132]. - The company recognized a loss on extinguishment of debt amounting to $7.5 million for the year ended December 31, 2024[133]. - Interest expense totaled $20.0 million for the nine months ended September 30, 2025, slightly up from $19.8 million in 2024, with a weighted average interest rate of approximately 12.20%[177]. Operational Activities - For the nine months ended September 30, 2025, cash flows provided by operating activities increased to $50.9 million from $28.7 million in the same period of 2024, driven by changes in working capital[153]. - Net cash flows used in investing activities for the nine months ended September 30, 2025, were approximately $70.0 million, primarily for drilling and completion activities[154]. - The company spent $69.6 million on oil and natural gas capital expenditures during the nine months ended September 30, 2025, with $59.9 million allocated to drilling and completion costs[155]. Cost Management - Lease operating expenses for the nine months ended September 30, 2025, were $33.4 million, slightly down from $34.2 million in 2024, with a per unit cost of $9.88 per Boe[166]. - Workover and other expenses increased to $4.6 million for the nine months ended September 30, 2025, up from $3.1 million in 2024, with a per unit cost of $1.35 per Boe[167]. - Taxes other than income were $7.9 million for the nine months ended September 30, 2025, down from $8.9 million in 2024, with a per unit cost of $2.35 per Boe[168]. - Gathering and other expenses decreased to $33.2 million for the nine months ended September 30, 2025, from $41.9 million in 2024, with a per unit cost of $9.80 per Boe[169][171]. - General and administrative expenses were $10.0 million for the nine months ended September 30, 2025, down from $11.1 million in 2024, with a per unit cost of $2.96 per Boe[172]. Strategic Initiatives - The company is exploring strategic transactions to improve liquidity and reduce expenses[143]. - The cessation of operations at the WAT facility has increased processing costs and decreased production and revenue[134]. - The company hedges approximately 85% to 50% of its anticipated oil and natural gas production on a rolling basis for the next four years[131].

Production and Revenue - Average daily net production for Q3 2025 was 12,293 Boe/d (53% oil), a slight increase from 12,076 Boe/d (52% oil) in Q3 2024[5] - Total operating revenue for Q3 2025 was $43.5 million, down from $45.3 million in Q3 2024, primarily due to a $2.24 decrease per Boe in average realized prices[5] - Average daily production for the nine months ended September 30, 2025, was 12,396 Boe/d, a decrease of 1.9% from 12,639 Boe/d in the same period of 2024[21] - Crude oil production volumes for the three months ended September 30, 2025, were 599 MBbls, a 3.8% increase from 577 MBbls in the same period of 2024[21] - The average price of crude oil per Bbl for the three months ended September 30, 2025, was $63.98, down 13.5% from $73.73 in the same period of 2024[21] Financial Performance - The company reported a net loss available to common stockholders of $15.0 million, equating to a net loss of $0.91 per share for Q3 2025[9] - The company experienced a net loss of $735,000 for the three months ended September 30, 2025, compared to a net income of $21,628,000 for the same period in 2024, indicating a substantial decline in profitability[19] - Battalion Oil's total stockholders' equity showed a deficit of $20,250,000 as of September 30, 2025, compared to a positive equity of $4,120,000 at the end of 2024[17] - For the three months ended September 30, 2025, the net loss available to common stockholders was $(15,014) thousand, compared to a net income of $5,587 thousand for the same period in 2024[24] - The diluted net loss per common share, as reported, was $(0.91) for the three months ended September 30, 2025, compared to earnings of $0.34 per share in 2024[24] Expenses and Costs - Lease operating and workover expense was $11.69 per Boe in Q3 2025, compared to $11.56 per Boe in Q3 2024[6] - General and administrative expenses decreased to $2.73 per Boe in Q3 2025 from $3.46 per Boe in Q3 2024, primarily due to lower merger costs[8] - The company incurred oil and natural gas capital expenditures of $69,573,000 for the nine months ended September 30, 2025, compared to $51,778,000 in the same period of 2024, representing a 34% increase[19] Cash Flow and Assets - Battalion Oil's cash flows from operating activities for the nine months ended September 30, 2025, were $50,909,000, up from $28,669,000 in the prior year, reflecting a 77% increase[19] - Net cash provided by operating activities for the three months ended September 30, 2025, was $27,973 thousand, a significant increase from $(5,072) thousand in the same period of 2024[24] - As of September 30, 2025, Battalion Oil Corporation reported total current assets of $84,269,000, a significant increase from $54,052,000 as of December 31, 2024, representing a 56% growth[17] Derivatives and Financial Instruments - Battalion realized 98.3% of the average NYMEX oil price during Q3 2025, with realized hedge gains totaling approximately $4.1 million[5] - The cash effect of derivative contracts for crude oil per Bbl was $1.48 for the three months ended September 30, 2025, compared to $(10.21) in the same period of 2024, indicating a significant improvement[21] - The total mark-to-market non-cash charge for the three months ended September 30, 2025, was $(1,044) thousand, compared to $(28,091) thousand in the same period of 2024[24] - The unrealized gain on derivatives contracts for the three months ended September 30, 2025, was $(1,044) thousand, compared to an unrealized loss of $(28,091) thousand in 2024[29] - The company experienced a change in fair value of embedded derivative liability of $41 thousand for the three months ended September 30, 2025, compared to a loss of $(1,323) thousand in 2024[29] Operational Changes - The company has entered into an amendment of its existing credit facility, providing additional operational flexibility[7] - Approximately 1,600 barrels of oil per day remain shut-in across Monument Draw, ready to flow to sales[4] - The AGI facility ceased operations on August 11, 2025, and the company has redirected gas production to alternative processing options[4] Adjusted Metrics - Adjusted EBITDA for Q3 2025 was $18.9 million, an increase from $13.5 million in Q3 2024[9] - Adjusted EBITDA for the three months ended September 30, 2025, was $18,882 thousand, an increase from $13,458 thousand in the same period of 2024, representing a 40.5% year-over-year growth[29]

Core Insights - Battalion Oil Corporation reported financial and operational results for Q3 2025, highlighting a net loss of $15.0 million and an adjusted EBITDA of $18.9 million, reflecting a year-over-year increase from $13.5 million in Q3 2024 [7][5]. Financial Performance - Average daily net production for Q3 2025 was 12,293 Boe/d (53% oil), compared to 12,076 Boe/d (52% oil) in Q3 2024, indicating a production increase of approximately 217 Boe/d [5][20]. - Total operating revenue for Q3 2025 was $43.5 million, down from $45.3 million in Q3 2024, primarily due to a $2.24 decrease per Boe in average realized prices [5][14]. - Battalion realized 98.3% of the average NYMEX oil price during Q3 2025, with realized hedge gains totaling approximately $4.1 million [5][8]. Operational Highlights - Drilling operations in the West Quito Draw resulted in two new wells producing an average of 883 Boe/day over the first 120 days, with savings of over $1.1 million per well compared to AFE [3][4]. - The acid gas injection facility ceased operations on August 11, 2025, leading to a temporary shut-in of a portion of the Monument Draw field, with approximately 1,600 barrels of oil per day still shut-in [4][8]. Cost Management - Lease operating and workover expenses were $11.69 per Boe in Q3 2025, up from $11.56 per Boe in Q3 2024, attributed to increased water production and disposal costs [6]. - Gathering and other expenses decreased to $9.02 per Boe in Q3 2025 from $11.20 per Boe in Q3 2024, due to improved efficiency at central production facilities [6]. Liquidity and Financial Position - As of September 30, 2025, Battalion had $213.8 million in term loan indebtedness and total liquidity of $50.5 million [9]. - The company entered into an amendment of its credit facility on November 12, 2025, providing additional operational flexibility through June 30, 2027 [9][10]. Production and Pricing - Crude oil production for Q3 2025 was 599 MBbls, with an average price of $63.98 per Bbl, down from $73.73 per Bbl in Q3 2024 [20]. - Total production volumes for Q3 2025 included 1,131 MBoe, with average prices per Boe at $38.36, compared to $40.60 in Q3 2024 [20].

Core Points - Battalion Oil Corporation has received confirmation from NYSE American regarding the acceptance of its compliance plan to regain listing standards, with a plan period extending until November 30, 2026 [1][2] - The company was previously notified of noncompliance with NYSE American listing standards and submitted a detailed plan in response, which was accepted on August 19, 2025 [2] - NYSE American staff will monitor the company's progress during the plan period, and failure to comply may lead to delisting procedures [3] Management Comments - The CEO of Battalion Oil Corporation expressed appreciation for the acceptance of the compliance plan and emphasized the company's commitment to restoring compliance and strengthening operations and financial position [4] - The management remains confident in the long-term strategy and aims to deliver value to shareholders, although there is no assurance of success within the plan period [4]

[Overview of Second Quarter 2025 Results](index=1&type=section&id=Overview%20of%20Second%20Quarter%202025%20Results) [Key Highlights & Management Comments](index=1&type=section&id=Key%20Highlights%20%26%20Management%20Comments) Battalion Oil successfully completed its 2025 six-well drilling plan ahead of schedule and under budget, with new wells showing strong initial production. However, the company faces a significant operational challenge due to the abrupt shutdown of its primary acid gas injection (AGI) facility, forcing a temporary shut-in of production - Completed the 2025 six-well drilling plan, with the final two wells in the West Quito area drilled ahead of schedule and approximately **$1.0 million per well under budget**[2](index=2&type=chunk) - Initial production rates from the new wells are outperforming legacy offset wells, which have also seen increased production due to positive frac interference[2](index=2&type=chunk) - The Acid Gas Injection (AGI) facility, which treated an average of **24 MMcf/d**, ceased operations on August 11, 2025, citing economic non-viability. This has forced the company to temporarily shut in some production and seek alternative gas processing solutions[3](index=3&type=chunk) [Financial & Operating Performance](index=1&type=section&id=Financial%20%26%20Operating%20Performance) Q2 2025 revenue decreased to $42.8 million from $49.1 million year-over-year due to lower realized prices, despite a slight production increase to 12,989 Boe/d, resulting in a $3.5 million net loss to common stockholders Q2 2025 vs Q2 2024 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Total Operating Revenue** | $42.8 million | $49.1 million | | **Average Daily Production** | 12,989 Boe/d | 12,857 Boe/d | | **Net Loss to Common Stockholders** | $3.5 million | $8.7 million | | **Adjusted EBITDA** | $18.1 million | $15.6 million | - The decrease in revenue was primarily due to a **$5.93 decrease per Boe** in average realized prices (excluding hedges), partially offset by a **132 Boe/d production increase**[4](index=4&type=chunk) Operating Expenses per Boe (YoY Comparison) | Expense Category | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Lease operating and workover** | $10.98 | $10.22 | | **Gathering and other** | $9.27 | $10.36 | | **General and administrative** | $2.17 | $2.85 | [Liquidity and Balance Sheet](index=3&type=section&id=Liquidity%20and%20Balance%20Sheet) As of June 30, 2025, Battalion Oil reported $44.6 million in cash and cash equivalents, with $219.4 million in outstanding term loan indebtedness Liquidity Position as of June 30, 2025 | Metric | Amount | | :--- | :--- | | **Cash and cash equivalents** | $44.6 million | | **Term loan indebtedness** | $219.4 million | [Financial Statements](index=5&type=section&id=Financial%20Statements) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 total operating revenues were $42.8 million, leading to a net income of $4.8 million, significantly improved from a prior-year net loss, but resulting in a $3.5 million net loss to common stockholders after preferred dividends Q2 2025 Statement of Operations Highlights (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Total operating revenues** | $42,812 | $49,104 | | **(Loss) income from operations** | $(153) | $5,120 | | **Net gain on derivative contracts** | $11,548 | $1,223 | | **Net income (loss)** | $4,796 | $(105) | | **Net loss available to common stockholders** | $(3,474) | $(8,691) | | **Diluted net loss per share** | $(0.21) | $(0.53) | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to $498.8 million, driven by higher cash and oil/gas properties, while total liabilities rose to $306.4 million, shifting stockholders' equity to a $5.2 million deficit Balance Sheet Summary (in thousands) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $44,621 | $19,712 | | **Total current assets** | $83,462 | $54,052 | | **Net oil and natural gas properties** | $402,327 | $368,005 | | **Total assets** | $498,781 | $431,048 | | **Total current liabilities** | $90,042 | $77,664 | | **Long-term debt, net** | $191,467 | $145,535 | | **Total stockholders' (deficit) equity** | $(5,236) | $4,120 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly decreased to $10.2 million in Q2 2025, while investing activities used $33.4 million, and financing activities provided $55.4 million for the first six months Cash Flow Summary for Three Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $10,205 | $29,824 | | **Net cash used in investing activities** | $(33,362) | $(13,857) | | **Net cash (used in) provided by financing activities** | $(5,790) | $(10,478) | | **Net (decrease) increase in cash** | $(28,947) | $5,489 | [Supplemental Information](index=8&type=section&id=Supplemental%20Information) [Selected Operating Data](index=8&type=section&id=Selected%20Operating%20Data) Q2 2025 average daily production slightly increased to 12,989 Boe/d, while crude oil prices dropped, yet post-hedge total realized price per Boe rose, and adjusted total operating costs per Boe decreased Q2 Production Volumes | Production | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Crude oil (MBbls)** | 584 | 577 | | **Natural gas (MMcf)** | 2,136 | 1,929 | | **Total (MBoe)** | 1,182 | 1,170 | | **Average daily production (Boe/d)** | 12,989 | 12,857 | Q2 Average Prices per Unit | Price | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Crude oil (per Bbl)** | $62.14 | $79.20 | | **Total per Boe (pre-hedge)** | $36.02 | $41.95 | | **Total per Boe (post-hedge)** | $39.66 | $39.21 | Q2 Average Costs per Boe | Cost | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Lease operating** | $9.03 | $9.41 | | **Gathering and other** | $9.27 | $10.36 | | **General and administrative (adjusted)** | $2.11 | $2.49 | | **Total operating costs (adjusted)** | $24.49 | $25.93 | [Non-GAAP Reconciliations](index=9&type=section&id=Non-GAAP%20Reconciliations) This section provides detailed reconciliations of GAAP to non-GAAP measures, clarifying adjusted net loss and Adjusted EBITDA by removing non-cash and non-recurring items for a clearer operational performance view [Reconciliation of Net Loss to Adjusted Net Loss](index=9&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20Adjusted%20Net%20Loss) Q2 2025 reported net loss of $3.5 million was adjusted to a $10.6 million net loss, or ($0.65) per share, primarily by excluding a $7.2 million non-cash unrealized derivative gain Adjusted Net Loss Reconciliation for Q2 2025 (in thousands) | Metric | Amount | | :--- | :--- | | **Net loss available to common stockholders** | $(3,474) | | **Unrealized gain on derivatives** | $(7,248) | | **Non-recurring charges** | $73 | | **Adjusted net loss available to common stockholders** | $(10,649) | | **Adjusted diluted net loss per share** | $(0.65) | [Adjusted EBITDA Reconciliation](index=10&type=section&id=Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA for Q2 2025 increased to $18.1 million, with the Last Twelve Months (LTM) Adjusted EBITDA reaching $64.7 million as of June 30, 2025 Adjusted EBITDA Reconciliation for Q2 (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net income (loss), as reported** | $4,796 | $(105) | | **Interest expense** | $7,341 | $7,610 | | **Depletion, depreciation and accretion** | $13,939 | $13,213 | | **Unrealized (gain) on derivatives** | $(7,248) | $(4,434) | | **Adjusted EBITDA** | $18,137 | $15,634 | - Adjusted Last Twelve Months (LTM) EBITDA as of June 30, 2025 was **$64.7 million**[30](index=30&type=chunk)

Core Insights - Battalion Oil Corporation reported its financial and operational results for Q2 2025, highlighting a net loss of $3.5 million and an adjusted diluted net loss of $10.6 million [6][9][12]. Operational Highlights - The company completed its 2025 six-well drilling plan ahead of schedule and under budget, with initial production rates from the new wells outperforming legacy wells [2][4]. - The acid gas injection facility treated approximately 2.2 Bcf of gas, but ceased operations on August 11, 2025, leading to a temporary shutdown of part of the Monument Draw field [3][8]. Financial Performance - Average daily net production was 12,989 Boe/d (49% oil), with total operating revenue of $42.8 million, a decrease from $49.1 million in Q2 2024 [4][6]. - The decline in revenue was primarily due to a $5.93 decrease per Boe in average realized prices, partially offset by a 132 Boe/d increase in production [4][6]. - Lease operating and workover expenses increased to $10.98 per Boe, while general and administrative expenses decreased to $2.17 per Boe [5][6]. Liquidity and Balance Sheet - As of June 30, 2025, the company had $219.4 million in term loan indebtedness and total liquidity of $44.6 million [9][15]. - Current assets increased to $83.5 million, with cash and cash equivalents at $44.6 million, up from $19.7 million a year earlier [15][9]. Production and Pricing Data - Crude oil production for Q2 2025 was 584 MBbls, with an average price of $62.14 per Bbl, down from $79.20 in Q2 2024 [20][21]. - Total production volumes for the quarter were 1,182 MBoe, with an average daily production of 12,989 Boe/d [20][21].