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's operations are concentrated in the Delaware Basin, where it maintains a substantial drilling inventory. Its asset base includes working interests in 39,968 net acres located in Pecos, Reeves, Ward and Winkler Counties, Texas. The company targets the Wolfcamp and Bone Spring formations, which are characterized by high oil and liquids-rich natural gas content in thick, continuous sections of source rock.

Battalion Oil Corporation generates revenue primarily through the sale of crude oil, natural gas and natural gas liquids produced from its operated and non-operated wells. The company's average daily net production for the year ended December 31, 2025 was 12,096 barrels of oil equivalent per day. Its production is sold to independent marketers, major oil and natural gas companies and gas pipeline companies. In 2025, two individual purchasers, Western Refining Company L. P. and Sunoco Inc., each accounted for more than 10% of total sales.

The company operates through the following segments:

• Oil and Natural Gas Production: This segment encompasses the acquisition, development and operation of oil and natural gas properties in the Delaware Basin. The company focuses on drilling and completing wells in the Wolfcamp and Bone Spring formations to maximize recovery from its liquids-rich acreage. As of December 31, 2025, the segment operated 82 wells and had working interests in 22 additional non-operated wells in the region.

Battalion Oil Corporation holds a competitive position in the Delaware Basin through its operational control of 99.8% of its estimated proved reserves as of December 31, 2025. The company benefits from being the operator of substantially all its acreage, allowing it to manage capital expenditures, execution and costs effectively. Its competitive advantages include technical expertise in resource evaluation, a disciplined capital allocation strategy and a focus on cost-saving measures to enhance returns.

The company serves a diverse customer base consisting of independent marketers, major integrated oil and natural gas companies and gas pipeline operators. Specific customers named in the filing include Western Refining Company L. P. and Sunoco Inc., which each represented more than 10% of total sales in 2025. These purchasers take delivery of the company's crude oil, natural gas and natural gas liquids production for further processing, transportation or resale.