BATTALION OIL CORP 8-K

What Happened

• Battalion Oil Corporation filed an 8-K on January 23, 2026 announcing it terminated its Gas Treating Agreement (GTA) with Wink Amine Treater, LLC on January 19, 2026 after WAT’s acid gas injection (AGI) facility remained offline since on or about August 11, 2025.
• The company has transitioned its gas processing to a publicly traded large‑cap midstream provider that completed a significant facility expansion in Q4 2025 and can now process substantially all of Battalion’s gas from the Monument Draw Field. The company furnished a related press release as Exhibit 99.1.

Key Details

• GTA termination date: January 19, 2026; AGI facility offline since ~August 11, 2025.
• Alternate processor capacity increased following a Q4 2025 expansion.
• Recent processing: >30 MMcf/d of Battalion’s gas vs. December average ~17.4 MMcf/d.
• Production impact: ~+1,200 net barrels of oil per day average month‑to‑date in January 2026 vs. December average.

Why It Matters

• The change reduces Battalion’s reliance on an offline AGI facility and improves flow assurance and operational reliability by moving volumes to a larger midstream provider.
• Increased gas processing capacity is already associated with a material uplift in reported oil production (about 1,200 net bbl/d higher in Jan MTD vs Dec), which could influence near‑term revenue and cash flow when reported in future financial updates.
• Investors should watch upcoming production and financial disclosures for confirmation of sustained volumes, revenue impact, and any further midstream arrangements.