Battalion Oil Corporation reported a total revenue of $166.0 million for the fiscal year ending December 31, 2025, a decrease from $193.9 million in the previous year. The decline in revenue was primarily attributed to lower average realized prices for oil and natural gas, which fell by approximately $19.6 million, alongside a decrease in production volumes contributing an additional $8.7 million to the revenue drop. The company’s average daily production was 12,096 barrels of oil equivalent per day (Boe/d), down from 12,667 Boe/d in 2024. The average price per barrel of crude oil decreased to $63.51 from $73.89, while natural gas prices also saw a decline.
In terms of profitability, Battalion reported a net income of $11.9 million for 2025, a significant improvement compared to a net loss of $31.9 million in 2024. This turnaround was supported by a net gain of $45.3 million from derivative contracts, which helped offset the losses from lower production and sales. The company’s total operating expenses decreased to $172.7 million from $205.6 million, driven by reductions in gathering and other expenses, as well as general and administrative costs.
Strategically, Battalion executed the West Quito Divestiture, selling its oil and natural gas properties in the West Quito Draw area for approximately $60.1 million, which closed on February 24, 2026. This divestiture accounted for about 10% of the company’s proved reserves and 15% of its annual production. The proceeds from this sale were primarily used to repay outstanding debt under the 2024 Amended Term Loan Agreement. Additionally, the company announced the acquisition of 7,090 net acres from RoadRunner Resource Holding LLC in an all-stock transaction, further expanding its operational footprint in the Delaware Basin.
As of December 31, 2025, Battalion's estimated total proved oil and natural gas reserves were approximately 59.7 million barrels of oil equivalent (MMBoe), a decrease from 64.9 MMBoe in 2024. The company’s proved developed reserves were 35.6 MMBoe, while proved undeveloped reserves stood at 24.1 MMBoe. The decrease in reserves was primarily due to production and negative revisions related to lower pricing and changes in market conditions. Battalion plans to develop its proved undeveloped reserves within five years, with approximately $61.7 million allocated for capital expenditures in 2025.
Looking ahead, Battalion Oil Corporation aims to maintain adequate liquidity and operational efficiency while navigating the volatile oil and gas market. The company has implemented cost-saving measures and is focused on enhancing operational efficiencies. Management believes that the combination of cash on hand, proceeds from recent divestitures, and ongoing capital management will provide sufficient liquidity to meet its operational and financial obligations over the next twelve months. However, the company acknowledges that its future performance is subject to various risks, including commodity price fluctuations and regulatory changes.
About BATTALION OIL CORP
Battalion Oil Corporation is an independent energy company engaged in the acquisition, exploration, development, and production of onshore liquids-rich oil and natural gas assets in the U.S., primarily in the Delaware Basin, Texas. The company operates a portfolio of oil, natural gas, and natural gas liquids reserves, focusing on the Wolfcamp and Bone Spring formations. Battalion emphasizes operational control, cost efficiency, and reserve growth through drilling and development activities.
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