Battalion Oil Corporation Announces Operational Update

Core Viewpoint - Battalion Oil Corporation has announced operational updates regarding its gas treating arrangements and production performance, including the termination of its gas treating agreement with WAT and a new agreement with a large-cap midstream provider for gas processing [2][3][7]. Group 1: Operational Updates - The WAT AGI Facility ceased operations around August 11, 2025, leading Battalion to terminate its gas treating agreement (GTA) with WAT [2]. - Following the termination, Battalion has entered into a new agreement with a publicly traded large-cap midstream provider to process its gas at an alternate facility, which has been operational since the AGI Facility went offline [3][7]. - The midstream provider completed a significant facility expansion in Q4 2025, enabling it to process nearly all of Battalion's gas volumes from the Monument Draw Field [3]. Group 2: Production Performance - Battalion has ramped up production into the alternate processing facility, with the facility processing over 30 million cubic feet per day (MMcf/d) of Battalion's gas production in January, compared to an average of approximately 17.4 MMcf/d in December [4]. - This increase in processing capability has resulted in an average oil production increase of approximately 1,200 net barrels of oil per day in January compared to December [5].