# EDGAR Filing Document

**Accession Number:** 0001282648
**File Stem:** 0001104659-26-060323
**Filing Date:** 2026-5
**Character Count:** 37097
**Document Hash:** ef3818ab6777a89d4dc9c34c8b6abca0
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-26-060323.hdr.sgml**: 20260513

**ACCESSION NUMBER**: 0001104659-26-060323

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20260513

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260513

**DATE AS OF CHANGE**: 20260513

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** BATTALION OIL CORP
- **CENTRAL INDEX KEY:** 0001282648
- **STANDARD INDUSTRIAL CLASSIFICATION:** CRUDE PETROLEUM & NATURAL GAS [1311]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 200700684
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-35467
- **FILM NUMBER:** 26974161

**BUSINESS ADDRESS:**
- **STREET 1:** 820 GESSNER ROAD
- **STREET 2:** SUITE 1100
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77024
- **BUSINESS PHONE:** 832-538-0300

**MAIL ADDRESS:**
- **STREET 1:** 820 GESSNER ROAD
- **STREET 2:** SUITE 1100
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77024

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** HALCON RESOURCES CORP
- **DATE OF NAME CHANGE:** 20120209

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** RAM ENERGY RESOURCES INC
- **DATE OF NAME CHANGE:** 20060518

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** TREMISIS ENERGY ACQUISITION CORP
- **DATE OF NAME CHANGE:** 20040304

?xml version='1.0' encoding='ASCII'? Battalion Oil Corp_May 13, 2026

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K** 

**CURRENT REPORT**

**Pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): **May 13, 2026** 

**Battalion Oil Corporation**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-35467** | **20-0700684** |
| (State or other jurisdiction<br>of incorporation) | (Commission File Number) | (IRS Employer<br>Identification No.) |

---

---

| | |
|:---|:---|
| **820 Gessner RoadSuite 1100**<br>**Houston, Texas** | **77024** |
| (Address of principal executive offices) | (Zip Code) |

---

Registrant's telephone number, including area code: **(832) 538-0300**

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐&nbsp;&nbsp;&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐&nbsp;&nbsp;&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol** | **Name of each exchange on which registered** |
| Common Stock par value $0.0001 | BATL | NYSE American |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

---

| | |
|:---|:---|
| **Item 2.02**  | **Results of Operations and Financial Condition.**  |

---

On May 13, 2026, Battalion Oil Corporation (the "***Company***") issued a press release with respect to the Company's first quarter 2026 financial results. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K. The press release contains certain measures discussed below that may be deemed "*non-GAAP financial measures*" as defined in Item 10 of Regulation S-K of the Securities Exchange Act of 1934, as amended (the "***Exchange Act***"). In each case, the most directly comparable GAAP financial measure and information reconciling the GAAP and non-GAAP measures is also included in the press release.

Exhibit 99.1 shall not be deemed to be "*filed*" for the purposes of Section 18 of the Exchange Act, and will not be incorporated by reference into any registration statement filed under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.

From time to time management discloses net income (loss) and earnings per share excluding selected items as well as EBITDA, LTM EBITDA, cash flow from operations, general and administrative expenses adjusted for selected items. These measures are presented based on management's belief that these non-GAAP measures enable a user of the financial information to understand the impact of these items on reported results. Additionally, this presentation provides a beneficial comparison to similarly adjusted measurements of prior periods. These measures are not measures of financial performance under GAAP and should not be considered as an alternative to net income, earnings per share and cash flow from operations, as defined by GAAP. These measures may not be comparable to similarly named non-GAAP measures that other companies may use and may not be useful in comparing the performance of those companies to our performance.

---

| | |
|:---|:---|
| **Item 8.01**  | **Other Events.** |

---

The press release furnished as Exhibit 99.1 to this Current Report on Form 8-K is incorporated herein by reference.

---

| | |
|:---|:---|
| **Item 9.01**  | **Financial Statements and Exhibits.** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibits. The following exhibits are furnished as part of this Current Report on Form 8-K:

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1 | [Press release issued by Battalion Oil Corporation dated May 13, 2026.](batl-20260513xex99d1.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | BATTALION OIL CORPORATION | BATTALION OIL CORPORATION |
| May 13, 2026 | By: | /s/ Matthew B. Steele |
|  | Name: | Matthew B. Steele |
|  | Title: | Chief Executive Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

![Graphic](batl-20260513xex99d1001.jpg)<br>

**Battalion Oil Corporation Announces First Quarter 2026 Financial and Operating Results** 

HOUSTON, TEXAS – May 13, 2026 – Battalion Oil Corporation (NYSE American: BATL, "Battalion" or the "Company") today announced financial and operating results for the first quarter of 2026.

**Key Highlights**

● The Company ended the quarter with positive equity of $157.1 million. This provides further basis for the Company to attain compliance with NYSE listing requirements

● Reduced net debt (gross debt less cash and reinvestment proceeds) to $108.3 million vs $180.2 million in Q4 2025

● Divested West Quito Assets for net proceeds of $60.1 million, utilizing $45.6 million to repay amounts outstanding under our Term Loan

● Executed a private placement to an institutional investor for purchase of common stock at $5.50 per share for total gross proceeds of $15.0 million

● Converted 7,803 shares of preferred stock to 1.8 million common shares at a conversion price of $6.21 per share

● Acquired 7,090 net acres and production directly adjacent to our Monument Draw asset for 485,000 shares of common stock

● Generated first quarter 2026 sales volumes of 12,578 barrels of oil equivalent per day ("Boe/d") (47% oil), an increase from 11,207 Boe/d in Q4 2025

● Lease operating and workover expense per BOE reduced by ~24% vs Q4 2025

● Continued strategic negotiations related to refinancing, a carried drilling venture, and infrastructure to place Monument Draw oil production on a pipeline rather than trucking to sales

● "Cube" style development planned in additional proven benches to greatly expand inventory

**Management Comments** 

The Company continues to make significant progress both operationally and strategically. Production volumes continue to benefit from the termination of the gas treating agreement and subsequent entry into a long-term treating agreement with a proven midstream partner. The sale of our West Quito Assets resulted in a substantial reduction of debt. The production impact of selling the assets was more than offset by increased flow in Monument Draw. Ongoing strategic negotiations should further improve the balance sheet, reduce operating costs and create outsized returns for our 2026 development plans.

"We continue to focus on improving our balance sheet and maximizing returns from our holdings in Monument Draw. Q1 2026 was an inflection point for the Company. The sale of our West Quito Assets transformed our leverage profile. Changing our gas midstream partner has been a gamechanger for the operational reliability of the Company. The team continued to improve field operations, lowering unit costs in all categories. Moving forward we are working to execute definitive documents for a refinancing, a carried drilling venture, and oil on pipe infrastructure. A refinancing will lower our cost to service debt as well as give additional flexibility for development of the asset base. The carried drilling

------

deal will move the Company toward multiple bench "cube" style development that has been very successfully employed by offset operators. We expect to execute definitive documents and commence drilling in late Q2 2026. Transporting our crude to sales point via pipeline rather than trucking will both save money and reduce environmental exposure. This project is expected to come online in early Q3 2026 and save the Company up to $6 million annually. 2026 has been and continues to be a very exciting year for the Company," said Matt Steele, Chief Executive Officer of Battalion.

**Results of Operations**

Average daily net production and total operating revenue during the first quarter of 2026 were 12,578 Boe/d (47% oil) and $39.2 million, respectively, as compared to production and revenue of 11,900 Boe/d (53% oil) and $47.5 million, respectively, during the first quarter of 2025. The decrease in revenues in the first quarter of 2026 as compared to the first quarter of 2025 is primarily attributable to a $9.73 decrease per Boe in average realized prices (excluding the impact of hedges) partially offset by an approximate 678 Boe/d increase in average daily production resulting from more consistent and reliable processing. Excluding the impact of hedges, Battalion realized approximately 97% of the average NYMEX oil price during the first quarter of 2026. Realized hedge losses totaled approximately $1.0 million during the first quarter of 2026.

Lease operating and workover expense was $9.82 per Boe in the first quarter of 2026 versus $11.01 per Boe in the first quarter of 2025. The decrease in lease operating and workover expense per Boe year-over-year is primarily the result of increased production and lower workover activity. Gathering and other expenses were $9.94 per Boe in the first quarter of 2026 versus $11.20 per Boe in the first quarter of 2025. The decrease in gathering and other expenses per Boe is primarily related to realized savings from capital projects and more reliable throughput resulting from entry into a long-term processing agreement with a publicly traded large-cap midstream provider in January 2026. General and administrative expenses were $3.76 per Boe in the first quarter of 2026 compared to $4.12 per Boe in the first quarter of 2025. The decrease in general and administrative expenses for the first quarter of 2026 is primarily due to increased production. Excluding non-recurring charges, general and administrative expenses would have been $3.02 per Boe in the first quarter of 2026 compared to $3.01 per Boe in the first quarter of 2025.

For the first quarter of 2026, the Company reported a net loss available to common stockholders of $64.8 million and a net loss of $3.72 per share available to common stockholders. The majority of this loss is due to unrealized non-cash derivative losses resulting from elevated oil prices at the end of the quarter. Unrealized derivative losses reflect the accounting remeasurement of the Company's derivative portfolio based on changes in the market value of contracts that remain open and do not represent current-period cash inflows or outflows. After adjusting for selected items, the Company reported an adjusted diluted net loss available to common stockholders for the first quarter of 2026 of $16.2 million or an adjusted diluted net loss of $0.93 per common share (see Reconciliation for additional information). Adjusted EBITDA during the quarter ended March 31, 2026 was $10.0 million as compared to $15.1 million during the quarter ended March 31, 2025 (see Adjusted EBITDA Reconciliation table for additional information).

**Liquidity and Balance Sheet**

As of March 31, 2026, the Company had $162.5 million of term loan indebtedness outstanding and total liquidity made up of cash and cash equivalents and reinvestment proceeds of $54.3 million.

For additional details on liquidity, financial position, and recent developments, please refer to Management's Discussion and Analysis included in Battalion's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026.

------

***Forward Looking Statements***

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that are not strictly historical statements constitute forward-looking statements. Forward-looking statements include, among others, statements about anticipated production, liquidity, capital spending, drilling and completion plans, and forward guidance. Forward-looking statements may often, but not always, be identified by the use of such words such as "expects", "believes", "intends", "anticipates", "plans", "estimates", "projects," "potential", "possible", or "probable" or statements that certain actions, events or results "may", "will", "should", or "could" be taken, occur or be achieved. Forward-looking statements are based on current beliefs and expectations and involve certain assumptions or estimates that involve various risks and uncertainties that could cause actual results to differ materially from those reflected in the statements. These risks include, but are not limited to, those set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and other filings submitted by the Company to the SEC, copies of which may be obtained from the SEC's website at www.sec.gov or through the Company's website at www.battalionoil.com. Readers should not place undue reliance on any such forward-looking statements, which are made only as of the date hereof. The Company has no duty, and assumes no obligation, to update forward-looking statements as a result of new information, future events or changes in the Company's expectations.

**About Battalion**

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

**Contact**

Matthew B. Steele

Chief Executive Officer & Principal Financial Officer

832-538-0300

------

**BATTALION OIL CORPORATION**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)**

**(In thousands, except per share amounts)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **March 31,** | **March 31,** |
|  | **2026** | **2025** |
| **Operating revenues:** |  |  |
| &nbsp;&nbsp;Oil, natural gas and natural gas liquids sales: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Oil  | $36282 | $39700 |
| &nbsp;&nbsp;&nbsp;&nbsp;Natural gas | (1493) | 2823 |
| &nbsp;&nbsp;&nbsp;&nbsp;Natural gas liquids | 4273 | 4862 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total oil, natural gas and natural gas liquids sales | 39062 | 47385 |
| &nbsp;&nbsp;Other | 112 | 90 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating revenues | 39174 | 47475 |
| **Operating expenses:** |  |  |
| &nbsp;&nbsp;Production: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease operating | 10094 | 10358 |
| &nbsp;&nbsp;&nbsp;&nbsp;Workover and other | 1018 | 1433 |
| &nbsp;&nbsp;&nbsp;&nbsp;Taxes other than income | 2324 | 2800 |
| &nbsp;&nbsp;Gathering and other | 11250 | 12000 |
| &nbsp;&nbsp;General and administrative | 4260 | 4413 |
| &nbsp;&nbsp;Depletion, depreciation and accretion | 12362 | 13080 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 41308 | 44084 |
| **(Loss) income from operations** | (2134) | 3391 |
| **Other (expenses) income:** |  |  |
| &nbsp;&nbsp;Net (loss) gain on derivative contracts | (47964) | 9302 |
| &nbsp;&nbsp;Interest expense and other | (5517) | (6670) |
| &nbsp;&nbsp;Loss on extinguishment of debt | (862) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other (expenses) income  | (54343) | 2632 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Loss) income before income taxes | (56477) | 6023 |
| &nbsp;&nbsp;Income tax benefit (provision) |  |  |
| **Net (loss) income** | $(56477) | $6023 |
| &nbsp;&nbsp;Preferred dividends | (8331) | (11820) |
| **Net (loss) income available to common stockholders** | $(64808) | $(5797) |
| **Net (loss) income per share of common stock available to common stockholders:** |  |  |
| &nbsp;&nbsp;Basic | $(3.72) | $(0.35) |
| &nbsp;&nbsp;Diluted | $(3.72) | $(0.35) |
| **Weighted average common shares outstanding:** |  |  |
| &nbsp;&nbsp;Basic | 17415 | 16457 |
| &nbsp;&nbsp;Diluted | 17415 | 16457 |

---

------

**BATTALION OIL CORPORATION**

**CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)**

**(In thousands, except share and per share amounts)**

---

| | | |
|:---|:---|:---|
|  | **March 31, 2026** | **December 31, 2025** |
| **Current assets:** |  |  |
| &nbsp;&nbsp;Cash and cash equivalents | $46373 | $27965 |
| &nbsp;&nbsp;Accounts receivable, net | 19597 | 12071 |
| &nbsp;&nbsp;Assets from derivative contracts | 7434 | 16145 |
| &nbsp;&nbsp;Restricted cash | 7958 | 91 |
| &nbsp;&nbsp;Prepaids and other | 742 | 892 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 82104 | 57164 |
| **Oil and natural gas properties (full cost method):** |  |  |
| &nbsp;&nbsp;Evaluated | 827996 | 890050 |
| &nbsp;&nbsp;Unevaluated | 54334 | 48025 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross oil and natural gas properties | 882330 | 938075 |
| &nbsp;&nbsp;Less: accumulated depletion | (560069) | (547982) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net oil and natural gas properties | 322261 | 390093 |
| **Other operating property and equipment:** |  |  |
| &nbsp;&nbsp;Other operating property and equipment | 4678 | 4678 |
| &nbsp;&nbsp;Less: accumulated depreciation | (2831) | (2807) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net other operating property and equipment | 1847 | 1871 |
| **Other noncurrent assets:** |  |  |
| &nbsp;&nbsp;Assets from derivative contracts | 2008 | 7350 |
| &nbsp;&nbsp;Operating lease right of use assets | 660 | 840 |
| &nbsp;&nbsp;Other assets | 3488 | 3360 |
| **Total assets** | $412368 | $460678 |
| **Current liabilities:** |  |  |
| &nbsp;&nbsp;Accounts payable and accrued liabilities | $43453 | $39734 |
| &nbsp;&nbsp;Liabilities from derivative contracts | 24612 | 633 |
| &nbsp;&nbsp;Current portion of long-term debt | 22500 | 22510 |
| &nbsp;&nbsp;Operating lease liabilities | 638 | 764 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 91203 | 63641 |
| **Long-term debt, net** | 135882 | 180955 |
| **Other noncurrent liabilities:** |  |  |
| &nbsp;&nbsp;Liabilities from derivative contracts | 10597 | 1692 |
| &nbsp;&nbsp;Asset retirement obligations | 17514 | 20837 |
| &nbsp;&nbsp;Operating lease liabilities | 53 | 104 |
| **Commitments and contingencies** |  |  |
| **Temporary equity:** |  |  |
| Redeemable convertible preferred stock: 138,000 shares |  |  |
| &nbsp;&nbsp;of $0.0001 par value authorized, issued and outstanding |  |  |
| &nbsp;&nbsp;at December 31, 2025 |  | 226241 |
| **Stockholders' equity (deficit):** |  |  |
| Redeemable convertible preferred stock: 130,197 shares |  |  |
| &nbsp;&nbsp;of $0.0001 par value authorized, issued and outstanding |  |  |
| &nbsp;&nbsp;at March 31, 2026 | 221185 |  |
| Common stock: 100,000,000 shares of $0.0001 par value authorized;  |  |  |
| &nbsp;&nbsp;20,541,563 and 16,456,563 shares issued and outstanding at  |  |  |
| &nbsp;&nbsp;March 31, 2026 and December 31, 2025, respectively | 2 | 2 |
| Additional paid-in capital | 265405 | 240202 |
| Accumulated deficit | (329473) | (272996) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity (deficit) | 157119 | (32792) |
| **Total liabilities, temporary equity and stockholders' equity** | $412368 | $460678 |

---

------

**BATTALION OIL CORPORATION**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)**

**(In thousands)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **March 31,** | **March 31,** |
|  | **2026** | **2025** |
| **Cash flows from operating activities:** |  |  |
| Net (loss) income | $(56477) | $6023 |
| Adjustments to reconcile net (loss) income to net cash |  |  |
| provided by operating activities: |  |  |
| &nbsp;&nbsp;Depletion, depreciation and accretion | 12362 | 13080 |
| &nbsp;&nbsp;Stock-based compensation, net |  | (109) |
| &nbsp;&nbsp;Unrealized gain on derivative contracts | 46937 | (11828) |
| &nbsp;&nbsp;Amortization/accretion of financing related costs | 348 | 395 |
| Loss on extinguishment of debt | 862 |  |
| &nbsp;&nbsp;Accrued settlements on derivative contracts | 2425 | (560) |
| &nbsp;&nbsp;Other  | 2 | 53 |
| Cash flows from operations before changes in working capital | 6459 | 7054 |
| Changes in working capital | (4354) | 5677 |
| Net cash provided by operating activities | 2105 | 12731 |
| **Cash flows from investing activities:** |  |  |
| Oil and natural gas capital expenditures | (3613) | (19800) |
| Proceeds received from sale of oil and natural gas assets | 60055 |  |
| Other operating property and equipment capital expenditures |  | (6) |
| Other | (5) | (306) |
| Net cash provided by (used in) investing activities | 56437 | (20112) |
| **Cash flows from financing activities:** |  |  |
| Proceeds from borrowings |  | 63000 |
| Repayments of borrowings | (45635) | (26) |
| Debt issuance costs | (657) | (1737) |
| Proceeds from issuance of common stock  | 14025 |  |
| Net cash (used in) provided by financing activities | (32267) | 61237 |
| **Net increase in cash, cash equivalents and restricted cash** | 26275 | 53856 |
| Cash, cash equivalents and restricted cash at beginning of period | 28056 | 19803 |
| Cash, cash equivalents and restricted cash at end of period | $54331 | $73659 |

---

------

**BATTALION OIL CORPORATION**

**SELECTED OPERATING DATA (Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **March 31,** | **March 31,** |
|  | **2026** | **2025** |
| &nbsp;&nbsp;Production volumes: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Crude oil (MBbls) | 527 | 569 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Natural gas (MMcf) | 2054 | 1799 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Natural gas liquids (MBbls) | 263 | 202 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total (MBoe) | 1132 | 1071 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average daily production (Boe/d) | 12578 | 11900 |
| &nbsp;&nbsp;Average prices: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Crude oil (per Bbl) | $68.85 | $69.77 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Natural gas (per Mcf) | (0.73) | 1.57 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Natural gas liquids (per Bbl) | 16.25 | 24.07 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total per Boe | 34.51 | 44.24 |
| &nbsp;&nbsp;Cash effect of derivative contracts: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Crude oil (per Bbl) | $(7.10) | $(7.00) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Natural gas (per Mcf) | 1.32 | 0.81 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Natural gas liquids (per Bbl) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total per Boe | (0.91) | (2.36) |
| &nbsp;&nbsp;Average prices computed after cash effect of settlement of derivative contracts: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Crude oil (per Bbl) | $61.75 | $62.77 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Natural gas (per Mcf) | 0.59 | 2.38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Natural gas liquids (per Bbl) | 16.25 | 24.07 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total per Boe | 33.60 | 41.88 |
| &nbsp;&nbsp;Average cost per Boe: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Production: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease operating | $8.92 | $9.67 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Workover and other | 0.90 | 1.34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxes other than income | 2.05 | 2.61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gathering and other | 9.94 | 11.20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative, as adjusted <sup>(1)</sup> | 3.02 | 3.01 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depletion | 10.68 | 11.83 |
| *(1) Represents general and administrative costs per Boe, adjusted for items noted in the reconciliation below:* | *(1) Represents general and administrative costs per Boe, adjusted for items noted in the reconciliation below:* | *(1) Represents general and administrative costs per Boe, adjusted for items noted in the reconciliation below:* |
| General and administrative: |  |  |
| &nbsp;&nbsp;General and administrative, as reported | $3.76 | $4.12 |
| &nbsp;&nbsp;Stock-based compensation: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash | - | (0.04) |
| &nbsp;&nbsp;Non-recurring charges and other: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash  | (0.74) | (1.07) |
| &nbsp;&nbsp;General and administrative, as adjusted<sup>(2)</sup> | $3.02 | $3.01 |
| Total operating costs, as reported | $25.57 | $28.94 |
| &nbsp;&nbsp;Total adjusting items | (0.74) | (1.11) |
| Total operating costs, as adjusted<sup>(3)</sup> | $24.83 | $27.83 |

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&nbsp;&nbsp;&nbsp;&nbsp;*(2)* *General and administrative, as adjusted, is a non-GAAP measure that excludes non-cash stock-based compensation charges relating to equity awards under our incentive stock plan, as well as other cash charges associated with non-recurring charges and other. The Company believes that it is useful to understand the effects that these charges have on general and administrative expenses and total operating costs and that exclusion of such charges is useful for comparison to prior periods.* 

&nbsp;&nbsp;&nbsp;&nbsp;*(3)* *Represents lease operating expense, workover and other expense, taxes other than income, gathering and other expense and general and administrative costs per Boe, adjusted for items noted in the reconciliation above.* 

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**BATTALION OIL CORPORATION**

**RECONCILIATION (Unaudited)**

**(In thousands, except per share amounts***)*

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| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **March 31,** | **March 31,** |
|  | **2026** | **2025** |
| ***As Reported:*** |  |  |
| Net (loss) income available to common stockholders - diluted <sup>(1)</sup> | $(64808) | $(5797) |
| ***Impact of Selected Items:*** |  |  |
| Unrealized loss (gain) on derivatives contracts: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Crude oil | $49808 | $(5544) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Natural gas  | (2871) | (6284) |
| Total mark-to-market non-cash charge | 46937 | (11828) |
| Change in fair value of embedded derivative liability |  |  |
| Non-recurring charges | 835 | 1149 |
| Selected items, before income taxes | 48634 | (10679) |
| Income tax effect of selected items |  |  |
| Selected items, net of tax | 48634 | (10679) |
| Net loss available to common stockholders, as adjusted <sup>(2)</sup> | $(16174) | $(16476) |
| Diluted net (loss) income per common share, as reported | $(3.72) | $(0.35) |
| Impact of selected items | 2.79 | (0.65) |
| Diluted net loss per common share, excluding selected items <sup>(2)(3)</sup> | $(0.93) | $(1.00) |
| Net cash provided by (used in) operating activities | $2105 | $12731 |
| Changes in working capital | 4354 | (5677) |
| Cash flows from operations before changes in working capital | 6459 | 7054 |
| Cash components of selected items | (1590) | 1709 |
| Income tax effect of selected items |  |  |
| Cash flows from operations before changes in working capital, adjusted for selected items <sup>(1)</sup> | $4869 | $8763 |

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&nbsp;&nbsp;&nbsp;&nbsp;*(1)* *Amount reflects net (loss) income available to common stockholders on a diluted basis for earnings per share purposes as calculated using the two-class method of computing earnings per share which is further described in Note 14, Earnings Per Share in our Form 10-K for the year ended December 31, 2025.* 

&nbsp;&nbsp;&nbsp;&nbsp;*(2)* *Net (loss) income per share excluding selected items and cash flows from operations before changes in working capital adjusted for selected items are non-GAAP measures presented based on management's belief that they will enable a user of the financial information to understand the impact of these items on reported results. These financial measures are not measures of financial performance under GAAP and should not be considered as an alternative to net income, earnings per share and cash flows from operations, as defined by GAAP. These financial measures may not be comparable to similarly named non-GAAP financial measures that other companies may use and may not be useful in comparing the performance of those companies to Battalion's performance.* 

&nbsp;&nbsp;&nbsp;&nbsp;*(3)* *The impact of selected items for the three months ended March 31, 2026 and 2025 were calculated based upon weighted average diluted shares of 17.4 and 16.5 million, respectively, due to the net (loss) income available to common stockholders, excluding selected items.*  

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**BATTALION OIL CORPORATION**

**ADJUSTED EBITDA RECONCILIATION (Unaudited)**

**(In thousands)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **March 31,** | **March 31,** |
|  | **2026** | **2025** |
| Net (loss) income, as reported | $(56477) | $6023 |
| *Impact of adjusting items:* |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense  | 5841 | 7189 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depletion, depreciation and accretion | 12362 | 13080 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation |  | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | (324) | (579) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss (gain) on extinguishment of debt | 862 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain on derivatives contracts | 46937 | (11828) |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-recurring charges and other | 835 | 1149 |
| Adjusted EBITDA<sup>(1)</sup> | $10036 | $15082 |

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&nbsp;&nbsp;&nbsp;&nbsp;*(1)* *Adjusted EBITDA is a non-GAAP measure, which is presented based on management's belief that it will enable a user of the financial information to understand the impact of these items on reported results. This financial measure is not a measure of financial performance under GAAP and should not be considered as an alternative to GAAP measures, including net (loss) income. This financial measure may not be comparable to similarly named non-GAAP financial measures that other companies may use and may not be useful in comparing the performance of those companies to Battalion's performance.* 

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**BATTALION OIL CORPORATION**

**ADJUSTED EBITDA RECONCILIATION (Unaudited)**

**(In thousands)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months**<br>**Ended**<br>**March 31, 2026** | **Three Months**<br>**Ended**<br>**December 31, 2025** | **Three Months**<br>**Ended**<br>**September 30, 2025** | **Three Months**<br>**Ended**<br>**June 30, 2025** |
| Net (loss) income, as reported | $(56477) | $1795 | $(735) | $4796 |
| *Impact of adjusting items:* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense  | 5841 | 6987 | 7318 | 7341 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depletion, depreciation and accretion | 12362 | 11603 | 13522 | 13939 |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset impairment |  | 1072 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | (324) | (414) | (503) | (764) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on extinguishment of debt | 862 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized (gain) loss on derivatives contracts | 46937 | (9313) | (1044) | (7248) |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-recurring charges and other | 835 | 1631 | 324 | 73 |
| Adjusted EBITDA<sup>(1)</sup> | $10036 | $13361 | $18882 | $18137 |
| Adjusted LTM EBITDA<sup>(1)</sup> | $60416 |  |  |  |

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&nbsp;&nbsp;&nbsp;&nbsp;*(1)* *Adjusted EBITDA is a non-GAAP measure, which is presented based on management's belief that it will enable a user of the financial information to understand the impact of these items on reported results. This financial measure is not a measure of financial performance under GAAP and should not be considered as an alternative to GAAP measures, including net (loss) income. This financial measure may not be comparable to similarly named non-GAAP financial measures that other companies may use and may not be useful in comparing the performance of those companies to Battalion's performance.* 

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**BATTALION OIL CORPORATION**

**ADJUSTED EBITDA RECONCILIATION (Unaudited)**

**(In thousands)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months**<br>**Ended**<br>**March 31, 2025** | **Three Months**<br>**Ended**<br>**December 31, 2024** | **Three Months**<br>**Ended**<br>**September 30, 2024** | **Three Months**<br>**Ended**<br>**June 30, 2024** |
| Net income (loss), as reported | $6023 | $(22202) | $21628 | $(105) |
| *Impact of adjusting items:* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense  | 7189 | 6135 | 6873 | 7610 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depletion, depreciation and accretion | 13080 | 14155 | 12533 | 13213 |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset impairment |  | 18511 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 48 | 12 | 5 | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | (579) | (278) | (509) | (634) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss (gain) on extinguishment of debt |  | 7489 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized (gain) loss on derivatives contracts | (11828) | 1648 | (28091) | (4434) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of embedded derivative liability |  | (761) | 41 | (436) |
| &nbsp;&nbsp;&nbsp;&nbsp;Merger Termination Payment |  | (10000) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-recurring charges and other | 1149 | 3310 | 978 | 384 |
| Adjusted EBITDA<sup>(1)</sup> | $15082 | $18019 | $13458 | $15634 |
| Adjusted LTM EBITDA<sup>(1)</sup> | $62193 |  |  |  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(1)* *Adjusted EBITDA is a non-GAAP measure, which is presented based on management's belief that it will enable a user of the financial information to understand the impact of these items on reported results. This financial measure is not a measure of financial performance under GAAP and should not be considered as an alternative to GAAP measures, including net income (loss). This financial measure may not be comparable to similarly named non-GAAP financial measures that other companies may use and may not be useful in comparing the performance of those companies to Battalion's performance.* 

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