Battalion closed Q1 2026 with equity of $157.1 million and net debt trimmed to $108.3 million from $180.2 million in Q4 2025 following the $60.1 million divestiture of West Quito assets, of which $45.6 million repaid term-loan balances. The company also raised $15.0 million through a placement at $5.50 per share, converted 7,803 preferred shares into 1.8 million common shares at $6.21, and issued 485,000 shares for 7,090 net acres adjacent to Monument Draw.

First-quarter production climbed to 12,578 Boe/d (47% oil), up from 11,207 Boe/d in Q4 2025, driven by improved midstream processing and the end of prior gas treating agreements. Lease operating and workover expenses dropped roughly 24% per Boe versus Q4 2025, while gathering costs fell to $9.94 per Boe and G&A declined to $3.76 per Boe.

Battalion is negotiating refinancing to lower debt service costs, pursuing a carried drilling venture for multi-bench “cube” development, and planning pipeline infrastructure to replace trucking, which is expected to save up to $6 million annually when it comes online in early Q3 2026. Definitive documents for these transactions are targeted in late Q2 2026, aligning with the company’s focus on cost reduction and inventory expansion.