Battalion Oil Corporation Announces Operational Update
Rhea-AI Summary
Battalion Oil Corporation (NYSE: BATL) announced operational updates on Jan 23, 2026 regarding its gas treating arrangements and production. Battalion terminated its Gas Treating Agreement with Wink Amine Treater after the WAT acid gas injection facility ceased operations on or about August 11, 2025. The company has transitioned gas processing to a publicly traded large-cap midstream provider that completed a facility expansion in Q4 2025 and has processed substantially all Monument Draw Field volumes since. Processing volumes have risen from a December average of ~17.4 MMcf/d to more than 30 MMcf/d recently, and Battalion reports an increase in average oil production of about 1,200 net barrels per day month-to-date in January versus the December average.
Positive
- Gas processing increased from approximately 17.4 MMcf/d in December to >30 MMcf/d
- Average oil production increased by about 1,200 net barrels per day month-to-date in January versus December
- Alternate midstream agreement now processes substantially all Monument Draw volumes after a Q4 2025 facility expansion
Negative
- WAT AGI Facility ceased operations on or about August 11, 2025, triggering GTA termination
- Termination of the prior GTA increases reliance on a single large-cap midstream provider for processing
News Market Reaction
On the day this news was published, BATL gained 4.92%, reflecting a moderate positive market reaction. Argus tracked a peak move of +60.2% during that session. Our momentum scanner triggered 30 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $1M to the company's valuation, bringing the market cap to $22M at that time. Trading volume was exceptionally heavy at 58.5x the daily average, suggesting very strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
BATL fell 0.81% while peers were mixed: MXC -7.58%, EONR +5.67%, BRN +0.91%, TPET +4.48%, MTR +11.72%, indicating a stock-specific move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 13 | Q3 2025 earnings | Negative | -0.9% | Reported Q3 loss, AGI outage impacts, and covenant relief update. |
| Aug 25 | Listing compliance plan | Negative | -0.8% | NYSE American accepted compliance plan after prior non-compliance notice. |
| Aug 14 | Q2 2025 earnings | Negative | -3.5% | Q2 revenue decline, net loss, and AGI facility shutdown risk disclosed. |
Recent earnings and compliance-related updates have generally been followed by negative price reactions, indicating sensitivity to operational and financial risk disclosures.
Over the last few months, Battalion has reported Q2 and Q3 2025 results showing net losses and operational disruption from the August 11, 2025 AGI facility outage, which shut in Monument Draw volumes. An August 25, 2025 update detailed NYSE American compliance efforts with a plan running to November 30, 2026. Today’s operational update on alternative gas processing and improved production directly addresses the previously highlighted Monument Draw constraints.
Market Pulse Summary
This announcement details a significant operational pivot, with a large-cap midstream partner now processing more than 30 MMcf/d versus a December average of 17.4 MMcf/d, lifting oil output by about 1,200 net barrels per day. It directly addresses the Monument Draw volumes previously constrained by the AGI facility outage. In context of recent losses, covenant concerns, and listing-compliance efforts, key metrics to watch are sustained production levels, realized pricing, and how improved throughput translates into cash flow and leverage trends.
Key Terms
gas treating agreement technical
acid gas injection facility technical
mmcf/d technical
AI-generated analysis. Not financial advice.
Houston, Texas, Jan. 23, 2026 (GLOBE NEWSWIRE) -- Battalion Oil Corporation (NYSE American: BATL) (“Battalion” or the “Company”) today announced several operational updates related to its gas treating arrangements and production performance.
Key Highlights
- Termination of Gas Treating Agreement (“GTA”) with Wink Amine Treater, LLC (“WAT”) related to its acid gas injection facility (“AGI Facility”).
- Entry into a gas treating agreement with a publicly traded large-cap midstream company.
Management Comments
The WAT AGI Facility ceased operations on or about August 11, 2025 and remains out of service. Due to the cessation of operations, Battalion has exercised its contractual rights to terminate the GTA with WAT.
Subsequent to this termination, the Company has entered into an agreement with a publicly traded large-cap midstream provider to process Battalion’s gas at an alternate processing facility. Battalion has been utilizing this midstream partner since the AGI Facility went offline. Due to a significant facility expansion completed in the fourth quarter of 2025, this provider is now able to process substantially all of the Company’s gas volumes from its Monument Draw Field.
In conjunction with this facility expansion, Battalion has continued to ramp production into this alternate processing facility throughout late December and January. Most recently, the facility has been processing more than 30 MMcf/d of Battalion’s gas production, compared to a December average of approximately 17.4 MMcf/d.
This increase in processing capability has allowed the Company to benefit from additional flow assurance and operational reliability, resulting in an increase in Battalion’s average oil production of approximately 1,200 net barrels of oil per day month-to-date in January as compared to the Company’s December average.
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, 2024, 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.
BATTALION OIL CORPORATION Matthew B. Steele Chief Executive Officer 832-538-0300 | www.battalionoil.com
FAQ
What did Battalion (BATL) announce on January 23, 2026 about its gas treating arrangements?
How much has Battalion's gas processing changed since December 2025 (BATL)?
What oil production impact did Battalion (BATL) report after switching processors?
When did the WAT acid gas injection facility cease operations affecting BATL?
Is Battalion using the new midstream provider while the AGI facility remains out of service (BATL)?
