Battalion Terminates Contract with WAT and Partners with New Provider

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.