BATTALION OIL CORP

Battalion Oil Corporation announced it has received notification from NYSE American that it is back in compliance with all continued listing standards. The company had previously been notified of non-compliance with minimum stockholders' equity requirements but has now demonstrated compliance for two consecutive quarters. As a result, NYSE American will remove the company from its list of noncompliant issuers and return it to normal monitoring procedures.

Battalion Oil Corporation reported a net income of $15.5 million for Q2 2026, a significant increase from $4.8 million in Q2 2025, with basic EPS rising to $0.34 from $(0.21). For the first half of 2026, the company recorded a net loss of $41.0 million, compared to a $10.8 million income in H1 2025, largely due to a significant net loss on derivative contracts. During the period, Battalion completed the divestment of its West Quito Draw assets for $60.1 million, using proceeds to repay $45.6 million in debt, and acquired Sundown Energy assets for $6.3 million in an all-stock transaction. The company also entered into a joint exploration and development agreement.

Battalion Oil Corporation announced its second quarter 2026 financial and operating results, reporting net income available to common stockholders of $9.1 million, or $0.34 per share. The company ended the quarter with positive equity of $203.1 million and significantly reduced net debt to $74.2 million from $108.3 million in Q1 2026, improving its leverage ratio to 1.36x. Key strategic actions included refinancing its term loan, redeeming a portion of preferred equity, and entering a joint exploration and development agreement for new drilling.

Battalion Oil Corporation entered into a Preferred Stock Repurchase and Conversion Agreement with Gen IV Investment Opportunities, LLC. The company repurchased 5,138 shares of Series A and 6,578.11 shares of Series A-1 Preferred Stock for an aggregate of $19,000,000. Additionally, Gen IV converted 1,231.89 shares of Series A-1, 6,630 shares of Series A-2, 3,789 shares of Series A-3, and 3,789 shares of Series A-4 Preferred Stock into 3,494,258 shares of common stock. Following these transactions, Gen IV no longer holds any preferred stock in the company. A Voting and Lock-Up Agreement was also executed, restricting Gen IV's common stock sales for 12 months and outlining voting commitments.

Battalion Oil Corporation announced the refinancing of its senior secured credit facility through a Third Amended and Restated Senior Secured Credit Agreement. This agreement reduces borrowing costs, extends the debt maturity to December 31, 2029, and defers principal amortization until June 2027. The company secured a fixed interest rate margin of 6.50% over SOFR, down from a previous range of 7.75% to 8.50%, and gained access to an additional $175.0 million in discretionary delayed draw capacity. This move aims to strengthen the company's capital structure and enhance financial flexibility for future development activities.

Battalion Oil Corporation announced the closing of a refinancing of its senior secured credit facility, which significantly strengthens its capital structure. The New Credit Agreement reduces borrowing costs by a minimum of 125 basis points, extends debt maturity by a full year to December 2029, and defers principal amortization until June 2027. This refinancing also provides access to up to $175 million in additional discretionary capital, enhancing liquidity for future growth and strategic objectives. The company's net debt stands at approximately $65.5 million as of June 29, 2026.

Battalion Oil Corporation announced the dismissal of Deloitte & Touche LLP as its independent registered public accounting firm on June 24, 2026, following a competitive selection process by the Audit Committee. Deloitte's audit reports for the fiscal years ended December 31, 2025, and 2024, did not contain any adverse opinions or disagreements. Subsequently, on June 30, 2026, the company's Audit Committee approved the engagement of BDO USA, P.C. as the new independent registered public accounting firm for the fiscal year ending December 31, 2026.

Battalion Oil Corporation's Board of Directors approved an updated compensation program for non-employee directors, effective July 1, 2026. This includes an annual cash retainer of $225,000 for each director, with additional retainers for the Chairman and committee chairs. The Board also approved new change-in-control related compensation arrangements, including a $5.0 million cash bonus pool and a performance-based Waterfall Merger Incentive Program, both expiring December 31, 2030. Additionally, the Board confirmed the vesting of 35,419 restricted stock units from the 2020 Long-Term Incentive Plan.

Battalion Oil Corporation announced the execution of definitive documentation for a Joint Development Agreement (JDA) in Monument Draw, Ward County, Texas. This JDA formalizes a previously announced agreement for up to an eight-well program, providing an accretive carry structure to Battalion and accelerating development of core inventory. The initial phase will focus on a four-well pad, with drilling scheduled to commence in late Q2/early Q3 2026, targeting key formations and expected to prove out over 100 additional drilling locations. The company also continues to negotiate a long-term debt refinance and an oil transport and marketing partnership.

Battalion Oil Corporation reported a net loss of $56.5 million for Q1 2026, a significant decline from a $6.0 million net income in Q1 2025, primarily due to a $48.0 million net loss on derivative contracts. Total operating revenues decreased to $39.2 million from $47.5 million year-over-year. During the quarter, the company completed the West Quito Divestiture for $60.1 million, using $45.6 million to repay debt, and acquired 7,090 net acres in an all-stock transaction (Sundown Acquisition).