Despite these challenges, Battalion Oil highlighted several key operational achievements. The company generated full-year sales volumes of 12,096 Boe/d, with 51% of this volume being oil. Year-end 2025 proved reserves were approximately 59.7 million barrels of oil equivalent, with a standardized measure of discounted future net cash flows estimated at $343.5 million based on SEC price deck assumptions.
In a strategic move, Battalion terminated its gas treating agreement with AGI Facility and entered into a long-term agreement with a large-cap midstream provider, which has resulted in record throughput. Additionally, production from the core Monument Draw asset has increased by approximately 30% since early December 2025, attributed to enhanced gas treating capacity and reliability.
The company also completed the sale of its West Quito assets in February 2026 for net proceeds of $60.1 million, representing about 10% of its proved reserves as of December 31, 2025. Furthermore, Battalion prepaid $40 million in term loan debt during February 2026 and closed a securities purchase agreement with an institutional investor, raising gross proceeds of $15 million. An acquisition of neighboring oil and gas assets in Ward County was also finalized in March 2026, consolidating Battalion's acreage in the region.
CEO Matt Steele expressed optimism about the company's progress, stating, "We are excited to have successfully completed the divestiture of our West Quito assets and for entry into the securities purchase agreement, both of which resulted in significant additional capital. The all-stock acquisition of oil and gas assets in Ward County allows us to consolidate our contiguous acreage in Monument Draw and better positions us to maximize returns from our holdings."
Overall, while Battalion Oil faced challenges in production and revenue, the strategic moves and operational improvements indicate a positive outlook for the company moving forward.
