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• Battalion Oil is like a smaller, pure-play Pioneer Natural Resources, focused on drilling for oil and gas in the Permian Basin.
• Battalion Oil is like an independent, smaller-scale ConocoPhillips, focused solely on oil and gas exploration and production.

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• Crude Oil: Battalion Oil engaged in the exploration, development, and production of crude oil from its properties.
• Natural Gas: The company also focused on the exploration, development, and production of natural gas.
• Natural Gas Liquids (NGLs): Battalion Oil extracted and sold natural gas liquids as a co-product of its natural gas operations.

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Battalion Oil (symbol: BATL) was an independent energy company primarily engaged in the acquisition, exploration, and development of crude oil and natural gas properties in the Permian Basin. As such, it sold its production primarily to other companies rather than individuals.

Note: Battalion Oil Corporation (BATL) was acquired and delisted in December 2023 and is no longer a public company. The customer information provided below reflects its major customer(s) during its time as a public entity.

Based on its annual report (Form 10-K) for the fiscal year ended December 31, 2022, Battalion Oil identified one major customer that accounted for a significant portion of its total revenue:

• Plains Marketing, L.P.
  Plains Marketing, L.P. is a subsidiary of Plains All American Pipeline, L.P. (symbol: PAA), which is a publicly traded master limited partnership. For the year ended December 31, 2022, sales to Plains Marketing, L.P. accounted for approximately 49% of Battalion Oil's total revenue.

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Major Suppliers of Battalion Oil:

• Halliburton Company (NYSE: HAL)
• Schlumberger Limited (NYSE: SLB)
• Baker Hughes Company (NASDAQ: BKR)
• ProPetro Holding Corp. (NYSE: PUMP)

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Matthew (Matt) Steele, Chief Executive Officer and Principal Financial Officer

Matthew (Matt) Steele is a seasoned executive with experience in founding and managing businesses across the energy, hospitality, real estate, and technology industries. He possesses extensive expertise in E&P Operations, Mergers & Acquisitions, and Capital Markets. Prior to joining Battalion Oil, Mr. Steele most recently served as the CEO of Bruin E&P Partners, an E&P company focused on the Bakken region. Over the last decade, he has held CEO positions at numerous energy companies, including Steele Petroleum, Ursa Resources, Ursa Resources Group I and II, Bruin E&P, and BMFGCo. Mr. Steele also serves on the Boards of Bruin Management LLC, Bowline Energy LLC, Carbon Path LLC, and the Honors College Advisory Board at the University of Houston.

Daniel P. Rohling, Executive Vice President and Chief Operating Officer

Daniel P. Rohling joined Battalion Oil in July 2019 and brings over 20 years of experience in the oil and gas industry. Before his tenure at Battalion Oil, he most recently held the position of Accounting Manager at Southwestern Energy Company, where his responsibilities included Accounts Receivable, Regulatory, and Marketing Accounting. While at Southwestern Energy, Mr. Rohling was also the Finance Co-Team Lead for a two-year, multi-phase ERP System implementation. He holds a Bachelor of Science in Business Administration with a focus in Accounting and a Masters of Business Administration with a focus in Finance, both from the University of Arkansas.

Walter R. Mayer, Senior Vice President, General Counsel and Corporate Secretary

Walter R. Mayer has served as Senior Vice President, General Counsel, and Corporate Secretary at Battalion Oil since joining in March 2013. He has over eighteen years of legal experience concentrated in the oil and gas sector. Previously, Mr. Mayer was Associate General Counsel at Petrohawk Energy Corporation, continuing in that role after its acquisition by BHP Billiton. Prior to Petrohawk, he worked in the Litigation Group of Vinson & Elkins, focusing on commercial energy litigation.

Russell W. Greco, Vice President of Strategy and Planning

Russell W. Greco joined Battalion Oil in August 2019 and has approximately 13 years of experience in the oil and gas industry. Before his time at Battalion Oil, he served as the Asset and Reservoir Manager of Sierra Resources, a company that sold substantially all of its assets to SilverBow Resources. Mr. Greco began his career at EP Energy Corporation (formerly El Paso Corporation), where he held various roles in operations, asset development, reservoir engineering, business development, and management. He holds a Bachelor of Science degree in Petroleum Engineering from Texas A&M University and an MBA from Rice University, and is an active member of the Society of Petroleum Engineers.

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The key risks to Battalion Oil (BATL) are as follows:

1. High Probability of Bankruptcy/Financial Distress and Significant Debt Load: Battalion Oil faces a very high probability of financial distress or bankruptcy, with one analysis indicating a 79% probability of bankruptcy and over 65% probability of distress. The company carries a substantial debt burden, including a term loan debt of $213.8 million as of the third quarter of 2025. Its total liabilities have exceeded its total assets, resulting in a deficit in common stockholders' equity. Furthermore, Battalion Oil's interest coverage ratio stands at a low 0.4, indicating challenges in meeting its interest payment obligations.
2. Delisting Threat from NYSE American: Battalion Oil has received a notice of non-compliance from the NYSE American for failing to meet its stockholders' equity and sustained losses requirements. While the company has been granted a 15-month extension until November 2026 to regain compliance, failure to demonstrate "meaningful progress" could lead to delisting. Such an event would significantly impair the company's liquidity and investor confidence.
3. Operational Volatility and Production Challenges: The company has experienced significant operational issues, exemplified by the shutdown of its Acid Gas Injection (AGI) facility since August 2025. This shutdown has resulted in a temporary curtailment of approximately 1,600 barrels of oil per day, leading to increased processing costs and reduced revenue. Despite a substantial 34% year-over-year increase in oil and gas capital expenditures during the first nine months of 2025, the company's production volumes still declined by 2.3%. These operational challenges highlight the fragility of Battalion Oil's production infrastructure and its ability to maintain consistent output.

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There are two clear emerging threats for Battalion Oil (BATL):

• Accelerating Global Energy Transition and Decarbonization Policies: This overarching threat encompasses the rapid growth and adoption of renewable energy sources (solar, wind), increasing market penetration of electric vehicles, and stringent government policies aimed at reducing carbon emissions (e.g., carbon pricing, emissions targets, regulatory restrictions on fossil fuel development). These trends are collectively reducing the long-term demand for crude oil and natural gas, directly impacting the market size, pricing power, and future viability of Battalion Oil's core product. Evidence includes global commitments to net-zero emissions, significant investment increases in renewable energy infrastructure, and rising electric vehicle sales figures.

• Increasing ESG Investment Scrutiny and Capital Constraints: A growing number of institutional investors, banks, and financial markets are prioritizing Environmental, Social, and Governance (ESG) factors. This has led to a noticeable shift in capital allocation, with many financial institutions announcing restrictions on lending to or investing in fossil fuel companies. For pure-play oil and gas producers like Battalion Oil, this translates into a higher cost of capital, reduced access to traditional financing for exploration and production, and increased pressure from shareholders to either diversify or wind down operations. This trend severely limits the company's ability to fund future projects, refinance debt, and maintain its valuation. Evidence includes major financial institutions' stated policies regarding fossil fuel financing, the growth of ESG-focused funds, and increased shareholder activism around climate risk.

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Battalion Oil (BATL) is expected to drive future revenue growth over the next 2-3 years through several key strategies and market factors:

1. Increased Production from Liquids-Rich Acreage Development: A core component of Battalion Oil's strategy is to develop its liquids-rich acreage positions efficiently to grow production and reserves. This includes activities such as its ongoing drilling programs in areas like the West Quito area within the Delaware Basin, where the company aims to increase daily oil volumes.
2. Strategic Business Combinations (Acquisitions): The company explicitly includes "attain growth through strategic business combinations" in its roadmap to growth, indicating that acquisitions and mergers are a planned avenue for expanding its asset base and, consequently, its revenue potential.
3. Optimizing Operational Efficiency and Cost Reduction: While primarily impacting profitability, continuous improvements in operational and cost efficiencies enhance returns and support sustainable revenue growth. This includes efforts like completing drilling programs ahead of schedule and under budget, reducing gathering and general and administrative expenses, which can free up capital for further development and increase netbacks per barrel of oil equivalent (Boe).
4. Commodity Price Realization: As an independent energy company, Battalion Oil's revenue is directly tied to the realized prices of crude oil, natural gas, and natural gas liquids. Favorable market prices for these commodities, and the company's ability to achieve strong pricing (e.g., realizing a high percentage of NYMEX oil price), are significant drivers of its top line.
5. Enhanced Midstream Infrastructure and Offtake Capacity: Expanding processing capabilities and securing additional offtake capacity are part of Battalion's growth strategy. Improvements and additions to midstream infrastructure, such as increased daily rates at processing facilities after downtime, enable the company to more effectively bring its production to market and reduce operational uncertainties, thereby supporting revenue generation.

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Share Issuance

• In November 2023, Battalion Oil obtained a commitment letter from existing equity shareholders to purchase additional preferred equity securities in an amount up to $55 million, with over $20 million remaining undrawn.
• During the first six months of 2025, the value of redeemable convertible preferred stock increased by approximately $20.09 million, from $177.535 million at December 31, 2024, to $197.625 million at June 30, 2025.
• Battalion Oil executed a $20.0 million preferred equity raise in May 2024.

Inbound Investments

• In November 2023, Battalion Oil obtained a commitment for up to $55 million in additional preferred equity securities from its existing equity shareholders.
• A merger agreement with Fury Resources Inc., which was terminated in December 2024, involved Fury securing $548 million in capital commitments for the acquisition of Battalion Oil, including $188 million in preferred stock and $160 million in equity.

Outbound Investments

• Battalion Oil entered into a Joint Venture with Brazos Amine Treater in May 2022.

Capital Expenditures

• Oil and natural gas capital expenditures for the first quarter of 2025 were $19.8 million, down from $24.6 million in the first quarter of 2024.
• In 2025, Battalion Oil completed a six-well drilling plan, with the final two wells in the West Quito area completed approximately $1.0 million under budget per well, and these wells are outperforming legacy offset wells.
• The primary focus of capital expenditures is on the acquisition, production, exploration, and development of onshore oil and natural gas assets in the Delaware Basin, specifically targeting the Wolfcamp and Bone Spring formations.