Core Viewpoint - Kuehn Law, PLLC is investigating potential claims related to proposed mergers to ensure that shareholder interests are protected and that the boards of the involved companies acted in a manner that maximizes shareholder value and disclosed all material information [1][2]. Group 1: Proposed Mergers - Battalion Oil Corporation is set to be acquired by Fury Resources, Inc. for $9.80 per share in cash [2]. - Dri-Quip, Inc. will be acquired by Innovex Downhole Solutions, Inc., with Dri-Quip stockholders expected to own approximately 52% of the combined company post-transaction [2]. - Perficient, Inc. has agreed to sell to an affiliate of BPEA Private Equity Fund VIII for $76.00 per share in cash [2]. - Reneo Pharmaceuticals, Inc. is merging with OnKure, Inc., with Reneo shareholders anticipated to own about 31% of the combined entity [2]. Group 2: Shareholder Involvement - Kuehn Law emphasizes the importance of shareholder participation in maintaining the integrity and fairness of financial markets, encouraging concerned shareholders to get involved [3]. - The firm covers all case costs and does not charge its investor clients, urging shareholders to act promptly due to the time-sensitive nature of legal rights [3].

Zacks Investment Research has recently initiated the coverage of Battalion Oil Corporation (BATL) , assigning an “Underperform” rating to the stock. This decision reflects ongoing challenges in the company’s operations and financial metrics.Battalion Oil's financial performance has been under pressure, with the first quarter of 2024 continuing a troubling trend. The company's operating revenues fell 23.3% year over year to $49.9 million on lower production volumes and reduced realized prices. Average daily ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 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: 001-35467 | --- | --- | --- | --- | --- | |-------------------------------------------------------------------------|------ ...

Exhibit 99.1 Battalion Oil Corporation Announces First Quarter 2024 Financial and Operating Results HOUSTON, TEXAS – May 15, 2024 – Battalion Oil Corporation (NYSE American: BATL, "Battalion" or the "Company") today announced financial and operating results for the first quarter of 2024. Key Highlights ● Previously announced AGI project online in Q1 2024 and achieved new record of 32 MMcf/d of throughput ● Drilled and completed two wells in Monument Draw in Q1 2024 ● Generated first quarter 2024 sales volum ...

Part I [Business](index=8&type=section&id=Item%201.%20Business) Battalion Oil, an independent energy company, focuses on Delaware Basin assets, with **68.1 MMBoe** proved reserves and a pending **$450.0 million** merger - The company is an independent energy company focused on the acquisition, production, exploration, and development of onshore liquids-rich oil and natural gas assets, with current activities concentrated in the **Delaware Basin**[22](index=22&type=chunk)[23](index=23&type=chunk) Proved Reserves and Production (as of December 31, 2023) | Metric | Value | | :--- | :--- | | **Total Proved Reserves** | **68.1 MMBoe** | | - Oil | 34.6 MMBbls | | - NGLs | 14.9 MMBbls | | - Natural Gas | 111.7 Bcf | | Proved Developed | 59% | | **Average Daily Production (FY 2023)** | **13,784 Boe/d** | | **Acreage (Net)** | **39,867 acres** | - On December 14, 2023, Battalion entered into a merger agreement with Fury Resources, Inc., to be acquired for **$9.80 per share** in cash, representing a total transaction value of approximately **$450.0 million**[30](index=30&type=chunk) - To support liquidity, the company obtained a support letter from its largest shareholders for up to **$55.0 million** in preferred equity, selling **35,000 shares** for net proceeds of **$34.1 million** in December 2023[30](index=30&type=chunk) - The company's H2S treating joint venture facility experienced operational complications and cost overruns, requiring Battalion to advance approximately **$15.1 million** in capital contributions, with the facility now expected to process **20,000 Mcf** of natural gas per day by Q2 2024[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) Production Volumes, Prices, and Costs (2023 vs. 2022) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | **Average Daily Production (Boe/d)** | **13,784** | **15,438** | | **Average Realized Price (per Boe)** | **$43.43** | **$63.43** | | - Crude Oil ($/Bbl) | $76.04 | $94.36 | | - Natural Gas ($/Mcf) | $1.27 | $4.95 | | **Total Average Cost (per Boe)** | **$25.35** | **$24.39** | [Risk Factors](index=21&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from its pending merger, volatile commodity prices, substantial debt, uncertain reserve estimates, and concentrated Delaware Basin operations - Failure to complete the merger with Fury Resources could **materially and adversely affect** the company's results of operations and stock price, incurring substantial transaction-related costs regardless of completion[114](index=114&type=chunk)[115](index=115&type=chunk)[117](index=117&type=chunk) - The company's business is highly sensitive to **volatile oil and natural gas prices**, which impact revenues, cash flow, and the ability to fund capital expenditures[129](index=129&type=chunk) - As of December 31, 2023, the company had approximately **$200.0 million** of debt outstanding with **no additional borrowing capacity** under its Amended Term Loan Agreement, where failure to comply with financial covenants, such as the **Current Ratio**, could result in default[136](index=136&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk) - Reserve estimates are inherently uncertain, with approximately **41%** of the company's estimated proved reserves classified as **proved undeveloped** as of December 31, 2023, requiring significant future capital expenditures to recover[146](index=146&type=chunk)[151](index=151&type=chunk) - The business is **geographically concentrated** in the **Delaware Basin**, exposing it to regional supply/demand factors, transportation constraints, and other localized risks[166](index=166&type=chunk) - If the merger does not close, the company may be **unable to pay cash dividends** on its Redeemable Preferred Stock, leading to an increase in the liquidation preference and potential dilution for common stockholders upon conversion[122](index=122&type=chunk)[123](index=123&type=chunk) [Unresolved Staff Comments](index=39&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[224](index=224&type=chunk) [Cybersecurity](index=39&type=section&id=Item%201C.%20Cybersecurity) The company manages cybersecurity risk via internal processes and third-party experts, with Board oversight, and has identified no material incidents - The company employs a risk management strategy using internal processes and third-party experts to identify and mitigate cybersecurity threats[224](index=224&type=chunk) - The **Board of Directors** has ultimate oversight responsibility for cybersecurity, with the **Audit Committee** handling specific risk management functions and receiving quarterly updates from management[225](index=225&type=chunk)[227](index=227&type=chunk) - The company has **not identified any substantive cybersecurity incident** that would have a **material impact** on its business, operations, or financial statements[229](index=229&type=chunk) [Properties](index=40&type=section&id=Item%202.%20Properties) The company believes it holds satisfactory title to its properties, which are deemed adequate and suitable for future business operations - The company believes it holds **satisfactory title** to its properties, which are deemed **adequate and suitable** for future business operations[230](index=230&type=chunk) [Legal Proceedings](index=40&type=section&id=Item%203.%20Legal%20Proceedings) The company is not a party to any governmental environmental proceedings involving potential monetary sanctions of **$300,000** or more - The company is not a party to any governmental environmental proceedings involving potential monetary sanctions of **$300,000** or more[231](index=231&type=chunk) [Mine Safety Disclosures](index=40&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[232](index=232&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=40&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on NYSE American under "BATL"; no common stock dividends are anticipated, while **$95.6 million** in preferred stock was sold in 2023 - The company's common stock is traded on the **NYSE American** exchange under the ticker symbol "**BATL**"[232](index=232&type=chunk) - The company does **not anticipate declaring cash dividends** on its common stock in the foreseeable future, as it intends to retain earnings for business operations and is restricted by its Amended Term Loan Agreement[233](index=233&type=chunk) - In 2023, the company sold an aggregate of **98,000 shares** of redeemable convertible preferred stock in private placements for total net proceeds of **$95.6 million**[233](index=233&type=chunk) [Reserved](index=41&type=section&id=Item%206.%20Reserved) This item is reserved [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=42&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Operating revenue decreased to **$220.8 million** in 2023, resulting in a **$3.0 million** net loss, with liquidity supported by **$95.6 million** preferred stock sales and **$50.0 million** debt due in 2024 Selected Financial Results (in thousands) | Metric | 2023 (in thousands) | 2022 (in thousands) | | :--- | :--- | :--- | | **Total Operating Revenues** | **$220,762** | **$359,064** | | **Net (Loss) Income** | **($3,048)** | **$18,539** | | Net Cash from Operations | $17,589 | $78,801 | | Net Cash used in Investing | ($51,845) | ($126,130) | | Net Cash from Financing | $59,059 | $31,786 | - The decrease in revenue was primarily due to a **~$20.00 per Boe** decrease in average realized prices and lower production volumes in 2023 compared to 2022[278](index=278&type=chunk)[302](index=302&type=chunk) - As of December 31, 2023, the company had **$57.5 million** in cash and cash equivalents, **no additional borrowing capacity** under its Amended Term Loan Agreement, and **$50.0 million** in debt repayments due in 2024[254](index=254&type=chunk) - Management believes that cash on hand, proceeds from a March 2024 preferred equity sale, and cost reduction measures provide **sufficient liquidity** to fund operations and meet debt requirements for the next 12 months[259](index=259&type=chunk) - General and administrative expenses increased to **$20.1 million** in 2023 from **$15.4 million** in 2022, primarily due to professional fees and non-recurring costs related to the pending merger[308](index=308&type=chunk) - Interest expense increased to **$33.3 million** in 2023 from **$23.6 million** in 2022, mainly due to higher interest rates and amortization of financing costs[313](index=313&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=54&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages commodity price and interest rate risks through hedging programs, with **$200.0 million** in variable-rate debt and a **10%** rate change impacting cash flow by **$2.6 million** - The company uses derivative instruments to hedge against commodity price volatility, with a requirement under its Amended Term Loan Agreement to hedge approximately **50% to 85%** of anticipated production on a rolling four-year basis[315](index=315&type=chunk) - The company is exposed to interest rate risk on its **$200.0 million** of variable-rate debt, where a **10%** change in market interest rates would impact annual cash flows by approximately **$2.6 million** as of December 31, 2023[319](index=319&type=chunk) [Consolidated Financial Statements and Supplementary Data](index=55&type=section&id=Item%208.%20Consolidated%20Financial%20Statements%20and%20Supplementary%20Data) The audited financial statements include an unqualified auditor's report, highlighting reserve estimation as a critical matter, with proved reserves declining from **92.0 MMBoe** to **68.1 MMBoe** due to negative revisions - The report from Deloitte & Touche LLP expresses an **unqualified opinion** on the financial statements and highlights the estimation of proved oil and natural gas reserve quantities as a **critical audit matter** due to significant judgments involved[327](index=327&type=chunk)[332](index=332&type=chunk) Change in Total Proved Reserves (MBoe) | Description | 2022 (MBoe) | 2023 (MBoe) | | :--- | :--- | :--- | | **Beginning Balance** | **95,880** | **92,020** | | Extensions and discoveries | 7,018 | 5 | | Production | (5,635) | (5,031) | | Revision of previous estimates | (5,204) | (18,887) | | **Ending Balance** | **92,020** | **68,107** | - The **18.9 MMBoe** negative revision in 2023 includes a **13.0 MMBoe** downward revision from the removal of **Proved Undeveloped (PUD)** reserves due to decreased activity associated with managing cash flow, servicing debt, and recapitalizing the business[498](index=498&type=chunk)[500](index=500&type=chunk) Standardized Measure of Discounted Future Net Cash Flows (in thousands) | Metric | Dec 31, 2023 (in thousands) | Dec 31, 2022 (in thousands) | | :--- | :--- | :--- | | Future cash inflows | $3,126,801 | $6,095,180 | | Future production & development costs | ($1,903,883) | ($2,937,500) | | Future income tax expense | ($28,551) | ($306,160) | | **10% Discounted Future Net Cash Flows** | **$598,481** | **$1,461,676** | - The company issued three series of Redeemable Convertible Preferred Stock in 2023 (Series A, A-1, and A-2), raising total net proceeds of approximately **$95.6 million**[442](index=442&type=chunk)[443](index=443&type=chunk)[444](index=444&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=95&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[515](index=515&type=chunk) [Controls and Procedures](index=95&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of December 31, 2023, with no material changes in internal control - Management concluded that the company's disclosure controls and procedures were **effective** as of December 31, 2023[516](index=516&type=chunk) - **No changes** in internal control over financial reporting occurred during the fourth quarter of 2023 that materially affected, or are reasonably likely to materially affect, internal controls[517](index=517&type=chunk) [Other Information](index=95&type=section&id=Item%209B.%20Other%20Information) The company reports no other information under this item - None[517](index=517&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=95&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[517](index=517&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=96&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information required for this item is incorporated by reference from the company's definitive proxy statement for its 2023 Annual Meeting of Stockholders [Executive Compensation](index=96&type=section&id=Item%2011.%20Executive%20Compensation) Information required for this item is incorporated by reference from the company's definitive proxy statement for its 2023 Annual Meeting of Stockholders [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=96&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) This section details equity compensation plans, with **384,358** securities outstanding and **1.1 million** available for future issuance as of December 31, 2023 Equity Compensation Plan Information (as of Dec 31, 2023) | Plan Category | Securities to be Issued Upon Exercise (A) | Weighted-Average Exercise Price | Securities Remaining for Future Issuance (Excluding A) | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 384,358 | $28.32 | 1,067,966 | [Certain Relationships and Related Transactions, and Director Independence](index=96&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information required for this item is incorporated by reference from the company's definitive proxy statement for its 2023 Annual Meeting of Stockholders [Principal Accountant Fees and Services](index=97&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information required for this item is incorporated by reference from the company's definitive proxy statement for its 2024 Annual Meeting of Stockholders Part IV [Exhibits and Financial Statement Schedules](index=97&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists consolidated financial statements and exhibits, including the merger agreement and debt documents, with financial statement schedules omitted [Form 10-K Summary](index=99&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company provides no summary under this item - None[532](index=532&type=chunk)

HOUSTON, March 29, 2024 (GLOBE NEWSWIRE) -- Battalion Oil Corporation (NYSE:BATL, "Battalion" or the "Company"))) today announced financial and operating results for the fourth quarter of 2023. Key Highlights Approximately 41,000 net acres, 91% HBP in three contiguous blocks across Ward, Winkler and Pecos Counties with substantial remaining location inventoryBrought previously announced AGI project online in Q1 2024 treating over 20 MMcf/dRecommenced drilling operations in Monument Draw in Q4 2023 to execut ...

NEW YORK, Feb. 15, 2024 (GLOBE NEWSWIRE) -- Kuehn Law, PLLC, a shareholder litigation law firm, is investigating potential claims related to the below-listed proposed mergers. Kuehn Law may seek additional disclosures or other relief on behalf of the shareholders of these companies. Kuehn Law is investigating whether the Boards of the below companies 1) acted to maximize shareholder value, 2) failed to disclose material information, and 3) conducted a fair process: Kaman has reached a deal to be quired by A ...

Houston, Texas, Jan. 29, 2024 (GLOBE NEWSWIRE) -- Battalion Oil Corporation (NYSE American: BATL, "Battalion" or the "Company") today announced certain financial and operating updates. Key Highlights Acid gas injection ("AGI") well is projected to be injecting by end of the first quarter 2024Recent two well pad was drilled and completed under budget and the wells have IP'd above type curve at 1,964 BOEPD and 1,711 BOEPD respectively (71% oil) with production still incliningApproximately $61MM cash on hand t ...

PART I FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=7&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Unaudited Q3 2023 financial statements show a net loss, decreased equity, and lower operating cash flow, primarily due to commodity price declines and derivative losses [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q3 2023 saw a **$53.8 million net loss**, reversing prior year's income, due to lower commodity prices and significant derivative losses Condensed Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Total operating revenues** | $54,106 | $99,149 | $173,520 | $282,262 | | **Income from operations** | $6,817 | $43,936 | $18,250 | $127,527 | | **Net (loss) gain on derivative contracts** | ($53,687) | $67,634 | ($29,741) | ($88,134) | | **Net (loss) income** | **($53,799)** | **$105,888** | **($35,736)** | **$26,191** | | **Net (loss) income per share (Basic)** | ($3.50) | $6.48 | ($2.56) | $1.60 | [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2023, total assets and liabilities decreased, with stockholders' equity declining and new temporary preferred stock equity appearing Condensed Consolidated Balance Sheets (in thousands) | Metric | September 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total current assets** | $75,292 | $88,165 | | **Total assets** | **$456,761** | **$485,358** | | **Total current liabilities** | $141,399 | $165,025 | | **Total liabilities** | $384,121 | $399,729 | | **Temporary equity (Preferred Stock)** | $66,834 | $0 | | **Total stockholders' equity** | **$40,832** | **$84,628** | [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Nine-month operating cash flow significantly decreased to **$11.1 million**, while financing activities provided **$35.9 million** from preferred stock issuance Condensed Consolidated Statements of Cash Flows (in thousands) | Metric | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $11,065 | $53,814 | | **Net cash used in investing activities** | ($37,106) | ($87,780) | | **Net cash provided by financing activities** | $35,905 | $19,166 | | **Net increase (decrease) in cash** | $9,864 | ($14,800) | [Notes to Unaudited Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes reveal critical liquidity needs, addressed by a **$55.0 million** stockholder support letter, alongside details on term loan, derivatives, and preferred stock - The company's forecasts indicate it will require additional liquidity to continue operations and meet debt covenants for the next 12 months[30](index=30&type=chunk) - To address liquidity needs, the company obtained a support letter from its three largest stockholders to purchase up to an additional **$55.0 million** in preferred equity securities over the next 12 months[30](index=30&type=chunk) - As of September 30, 2023, the company had **$210.2 million** of indebtedness outstanding under its Amended Term Loan Agreement, which matures in November 2025[62](index=62&type=chunk)[66](index=66&type=chunk) - In March and September 2023, the company issued a total of **63,000 shares** of Series A Redeemable Convertible Preferred Stock, receiving net proceeds of approximately **$61.5 million**[101](index=101&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=42&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses deteriorating financial results due to lower commodity prices, critical liquidity needs, and plans for capital injection and cost reductions [Capital Resources and Liquidity](index=46&type=section&id=Capital%20Resources%20and%20Liquidity) The company faces significant liquidity constraints, requiring additional capital, and is pursuing cost reductions, **$55.0 million** in preferred equity, and potential delisting - Management states that based on current forecasts, the company will require additional liquidity to continue operations and meet debt covenant requirements for the next 12 months[140](index=140&type=chunk) - The company has obtained a support letter from its largest investors to purchase up to an additional **$55.0 million** of preferred equity securities to meet its obligations[140](index=140&type=chunk) - The company is considering delisting its common stock from the NYSE American and ceasing to be a reporting company to achieve significant cost savings[141](index=141&type=chunk) - As of September 30, 2023, the company was in compliance with all financial covenants under its Term Loan Agreement[154](index=154&type=chunk) [Results of Operations](index=54&type=section&id=Results%20of%20Operations) Operating results shifted to a net loss due to decreased revenues from lower commodity prices and reduced production volumes, alongside increased operating costs per Boe Key Operational Metrics Comparison | Metric | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Total Production (MBoe)** | 1,170 | 1,493 | 3,925 | 4,191 | | **Average Daily Production (Boe/d)** | 12,717 | 16,228 | 14,377 | 15,352 | | **Average Realized Price per Boe** | $45.67 | $66.11 | $43.72 | $67.14 | | **Lease Operating Expense per Boe** | $9.53 | $8.22 | $8.72 | $8.52 | | **Gathering and Other Expense per Boe** | $13.26 | $11.16 | $12.45 | $11.40 | - The decrease in revenues was primarily due to a **~$20.44 per Boe** decrease in average realized prices for Q3 2023 and a **~$23.42 per Boe** decrease for the nine-month period compared to 2022[168](index=168&type=chunk) - Production was lower in 2023 periods due to midstream disruptions, plant curtailments, and natural production declines, partially offset by new wells brought online in late 2022[169](index=169&type=chunk) - Interest expense increased due to higher interest rates and a larger average debt balance in 2023, with the weighted average interest rate for Q3 2023 approximately **12.89%**[182](index=182&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=59&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company manages commodity price risk through hedging **50-85%** of production and faces interest rate risk on its **$210.2 million** variable-rate term loan - The company's term loan agreement requires it to hedge approximately **50% to 85%** of its anticipated oil and natural gas production on a rolling four-year basis[185](index=185&type=chunk) - The company's **$210.2 million** term loan debt bears variable interest rates tied to SOFR, where a **10%** change in market interest rates would impact cash flows by approximately **$2.8 million** per year[188](index=188&type=chunk) [Item 4. Controls and Procedures](index=59&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2023, with no material changes to internal controls - Management concluded that as of September 30, 2023, the company's disclosure controls and procedures were effective[189](index=189&type=chunk)[190](index=190&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, these controls[192](index=192&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=61&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in legal proceedings, including environmental claims in Louisiana, which management believes will not materially impact financials - The company is party to lawsuits from surface owners in Louisiana related to environmental damages from former operations, which it intends to vigorously oppose[100](index=100&type=chunk) [Item 1A. Risk Factors](index=61&type=section&id=Item%201A.%20Risk%20Factors) No material changes were reported to the risk factors previously disclosed in the company's 2022 Annual Report on Form 10-K - No changes were reported to the risk factors from the company's 2022 Form 10-K[194](index=194&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=61&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) On September 6, 2023, the company completed a private placement of **38,000 shares** of Series A Convertible Preferred Stock - The company completed a private placement of **38,000 shares** of Series A Convertible Preferred Stock on September 6, 2023[195](index=195&type=chunk) [Item 6. Exhibits](index=62&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Quarterly Report on Form 10-Q, including governance documents, credit agreements, and certifications

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 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: 001-35467 Battalion Oil Corporation (Exact name of registrant as specified in its charter) Delaware (State or other jurisdic ...