Battalion Oil (NYSE: BATL) nets $60.1M from West Quito asset sale

Rhea-AI Filing Summary

Battalion Oil Corporation completed the sale of its West Quito oil and gas assets in Ward County, Texas to MCM Delaware Resources, LLC for an adjusted cash purchase price of approximately $60.1 million, with an effective date of December 1, 2025.

Estimated proved reserves tied to these properties were about 8 MMBoe, representing 12.4% of Battalion’s estimated proved reserves as of year-end 2024. A portion of the net cash proceeds will fund a mandatory prepayment of $40,000,000 on outstanding loans under the company’s senior secured credit facility.

Under a Third Amendment to its credit agreement, lenders consented to the West Quito sale and required this $40 million prepayment, while allowing the borrower to retain remaining net proceeds for reinvestment, development and capital spending in its operated asset base, as well as general corporate purposes and liquidity management.

Insights

Energy credit and capital structure analyst

Asset sale raises $60.1M, with $40M directed to debt repayment.

Battalion Oil Corporation sold its West Quito assets for an adjusted cash price of $60.1 million, involving about 8 MMBoe of proved reserves, or 12.4% of its year-end 2024 reserves. This is a sizable portfolio reshaping toward remaining operated assets.

A Third Amendment to the senior secured credit agreement requires a $40,000,000 mandatory loan prepayment from sale proceeds, while permitting the rest for reinvestment, capital expenditures, general corporate purposes and liquidity management. This links the transaction directly to balance sheet and capital allocation choices.

TenOaks Energy Advisors supported the transaction, and lenders formally consented through the amendment. Future disclosures in company reports will show how much of the retained proceeds go toward development spending versus broader liquidity and corporate needs, and how the reserve base evolves post-disposition.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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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): February 24, 2026 

Battalion Oil Corporation

(Exact name of registrant as specified in its charter)

Delaware		001-35467		20-0700684
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

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820 Gessner Road Suite 1100 Houston, Texas		77024
(Address of principal executive offices)		(Zip Code)

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

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

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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:

◻    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

◻    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

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

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

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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. ◻
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Item 1.01 Entry into a Material Definitive Agreement

Third Amendment to Credit Agreement

On February 24, 2026, Halcón Holdings, LLC (the “Borrower”), a wholly owned subsidiary of Battalion Oil Corporation (the “Company”), entered into a Limited Consent and Third Amendment (the “Third Amendment”) to its Second Amended and Restated Senior Secured Credit Agreement (as amended by that certain First Amendment, dated as of January 9, 2025, and that certain Second Amendment, dated as of November 12, 2025, the “Credit Agreement” and as amended by the Third Amendment, the “Amended Credit Agreement”), dated as of December 26, 2024, with the Company, as Holdings, the subsidiary guarantors party thereto, the financial institutions party thereto as lenders (the “Lenders”) and Fortress Credit Corp., as administrative agent.

Pursuant to the Third Amendment, among other changes specified therein, (a) the Lenders consented to the transactions contemplated by the Sale Agreement (as defined below), pursuant to which the Company agreed to sell its West Quito Assets (as defined below) (the “West Quito Sale”); and (b) the Borrower is required, upon receipt of the net cash proceeds from the West Quito Sale, to prepay the outstanding principal amount of the Loans (as defined in the Credit Agreement) in an aggregate amount equal to $40,000,000. The Borrower may retain the remaining net cash proceeds received from the West Quito Sale, subject to certain reinvestment requirements, set forth in the Amended Credit Agreement.

The foregoing description of the Third Amendment does not purport to be complete and is qualified in its entirety by the terms and conditions of the Third Amendment, a copy of which is filed as Exhibit 10.1 hereto and is incorporated herein by reference.

Item 2.01 Completion of Acquisition or Disposition of Assets

As previously disclosed, certain wholly owned subsidiaries of the Company entered into an Agreement of Sale and Purchase (the “Sale Agreement”) with MCM Delaware Resources, LLC pursuant to which the Company agreed to sell substantially all of its oil and natural gas properties and related assets located in the West Quito Draw area of Ward County, Texas in the Southern Delaware Basin (the “West Quito Assets”). 

On February 24, 2026, in accordance with the terms of the Sale Agreement, the Company completed the West Quito Sale, for a total cash adjusted purchase price of approximately $60.1 million, subject to customary post-closing adjustments as provided in the Sale Agreement. The effective date of the disposition is December 1, 2025. Estimated proved reserves associated with these properties accounted for approximately 8 MMBoe, or 12.4% of the Company’s estimated proved reserves as of year-end 2024.

A portion of the net cash proceeds from the West Quito Sale will be used to make the $40,000,000 mandatory prepayment of outstanding Loans required under the Amended Credit Agreement. The remaining net cash proceeds will be retained by the Borrower and may be used for reinvestment activities permitted under the Amended Credit Agreement, including development and capital expenditures within the Company’s operated asset base, as well as for general corporate purposes and liquidity management.

TenOaks Energy Advisors served as the Company’s financial advisor in connection with the transaction.

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Item 9.01 Financial Statements and Exhibits.

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

Exhibit No.		Description
10.1	​	Limited Consent and Third Amendment to Second Amended and Restated Senior Secured Credit Agreement dated as of February 24, 2026, by and among Battalion Oil Corporation, as holdings, Halcón Holdings LLC, as borrower, the subsidiary guarantors party thereto, Fortress Credit Corp., as administrative agent, and the lenders party thereto.
104	​	Cover Page Interactive Data File (embedded within the Inline XBRL document).

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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
February 24, 2026	By:	/s/ Matthew B. Steele
	Name:	Matthew B. Steele
	Title:	Chief Executive Officer

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FAQ

What assets did Battalion Oil Corporation (BATL) sell in the West Quito transaction?

Battalion Oil sold substantially all oil and natural gas properties and related assets in the West Quito Draw area of Ward County, Texas. These West Quito Assets were part of the Southern Delaware Basin and held estimated proved reserves of about 8 MMBoe, or 12.4% of 2024 proved reserves.

How much cash did Battalion Oil (BATL) receive from the West Quito asset sale?

Battalion Oil received an adjusted cash purchase price of approximately $60.1 million for the West Quito Assets. The amount is subject to customary post-closing adjustments under the Sale Agreement, which is standard for oil and gas property transactions and can slightly change final proceeds.

How will Battalion Oil (BATL) use the proceeds from the West Quito sale?

A portion of the net cash proceeds will fund a mandatory $40,000,000 prepayment of outstanding loans under the Amended Credit Agreement. Remaining net proceeds may support reinvestment, development and capital expenditures in Battalion’s operated asset base, and general corporate purposes and liquidity management.

What percentage of Battalion Oil’s reserves were included in the West Quito sale?

The sold West Quito properties had estimated proved reserves of about 8 MMBoe, representing 12.4% of Battalion Oil’s estimated proved reserves as of year-end 2024. This indicates the divested assets were a meaningful, though not majority, portion of the company’s reserve base.

What changes were made to Battalion Oil’s credit agreement related to this transaction?

Halcón Holdings, LLC, a wholly owned subsidiary, entered a Limited Consent and Third Amendment to the senior secured credit agreement. Lenders consented to the West Quito sale and required a $40,000,000 mandatory loan prepayment from sale proceeds, while permitting specific reinvestment and general corporate uses of remaining funds.

Who advised Battalion Oil (BATL) on the West Quito asset sale?

TenOaks Energy Advisors served as Battalion Oil’s financial advisor for the West Quito asset sale. Their role was to assist in marketing the properties, structuring terms, and supporting negotiations with MCM Delaware Resources, LLC to achieve the approximately $60.1 million adjusted cash purchase price.

Filing Exhibits & Attachments

5 documents

Agreements & Contracts

• EX-10.1 EX-10.1 199.9 KB

Other Documents

• EX-101 EX-101.SCH 3.4 KB
• EX-101 EX-101.DEF 2.8 KB
• EX-101 EX-101.LAB 16.8 KB
• EX-101 EX-101.PRE 11.1 KB