Battalion Oil Corp (NYSE: BATL)

Battalion Oil Corporation is an independent energy company engaged in the acquisition, production, exploration and development of onshore liquids rich oil and natural gas assets in the United States.

The company succeeded Halcón Resources Corporation and continues to operate under the Battalion name.

Its primary focus is the Delaware Basin in western Texas, where it targets the Wolfcamp and Bone Spring formations for drilling.

As of December 31, 2025, Battalion held 39,968 net acres in the basin, spread across Pecos, Reeves, Ward and Winkler Counties.

The company reported an average daily net production of 12,096 barrels of oil equivalent for the year ended December 31, 2025.

Proved reserves at that date totaled approximately 59,700,000 barrels of oil equivalent, consisting of 31,800,000 barrels of crude oil, 11,600,000 barrels of natural gas liquids and 97,500,000,000 cubic feet of natural gas.

Approximately 60% of these reserves were classified as proved developed and Battalion operated about 99.8% of its proved reserves.

Battalion Oil Corporation generates revenue from the sale of crude oil, natural gas liquids and natural gas produced from its wells.

The company markets its output to independent energy traders, major oil and natural gas corporations and gas pipeline operators.

Sales are conducted under short term contracts that reflect prevailing market prices for each commodity.

In 2025, the average realized price for crude oil was $63.51 per barrel, for natural gas liquids was $19.90 per barrel and for natural gas was $0.49 per thousand cubic feet before the impact of settled derivatives.

After including the effects of settled derivative contracts, the average realized prices were $63.20 per barrel of oil, $2.71 per thousand cubic feet of gas and $19.90 per barrel of liquids.

Two customers, Western Refining Company L. P. and Sunoco Inc., each accounted for more than 10% of total sales in 2025, together contributing roughly 86% of the company’s revenue for the year.

Battalion also employs a hedging program to reduce cash flow volatility from commodity price fluctuations, as required by its credit agreements.

The upstream oil and natural gas industry is intensely competitive, with many participants that have larger balance sheets and broader geographic reach.

Battalion competes for attractive leasehold acreage, for existing producing properties, for drilling and completion rigs, for transportation and processing capacity and for skilled technical staff.

A key advantage is that the company acts as the operator on substantially all of its acreage, which gives it influence over the scheduling and cost of capital projects.

This operatorship enables Battalion to adjust its activity levels in response to drilling results and to adopt industry best practices that may improve initial production rates and ultimate recovery.

The firm’s geologic and engineering expertise concentrated in the Permian Basin enhances its ability to evaluate acquisition targets and to identify additional drilling locations within its existing holdings.

Battalion also pursues selective mergers and acquisitions to expand its inventory of economically viable wells and to achieve operational scale, leveraging its management’s knowledge of the region.

These factors together help the company maintain a competitive position despite the presence of larger integrated and independent rivals.

Battalion Oil Corporation sells its production to a diverse group of purchasers that includes independent energy marketers, major integrated oil and natural gas companies and gas pipeline firms.

Among these, Western Refining Company L. P. and Sunoco Inc. are notable because each supplied more than 10% of the company’s total sales in 2025.

Together, these two customers accounted for approximately 86% of Battalion’s revenue for the year, highlighting a concentration in a limited number of counterparties.

The remaining sales are spread across a variety of other marketers and pipeline operators, reducing reliance on any single buyer beyond the two largest.

Historically, the company has not experienced significant losses from uncollectible accounts, indicating a reliable payment record among its customers.