Battalion Oil Corporation Closes Sundown Assets Acquisition, Expanding Monument Draw Position

Key Transaction Details and Strategic Rationale for Investors

Date: March 19, 2026
Ticker: NYSE American: BATL

Transaction Overview

• Acquisition Closed: Battalion Oil Corporation (“Battalion” or “the Company”) has completed its previously announced Purchase and Sale Agreement to acquire certain oil and gas assets from RoadRunner Resource Holding LLC (for Sundown Energy LP, “Sundown”).
• Asset Details: The deal encompasses 7,090 net acres in Ward County, Texas, directly adjoining Battalion’s existing Monument Draw position.
• Transaction Structure: The acquisition was executed as an all-stock transaction, with Battalion issuing 485,000 shares of its common stock to Sundown, subject to customary closing adjustments.
• Effective Date: The acquisition is effective as of March 1, 2026.

Strategic Highlights & Potential Shareholder Impact

• Expansion of Core Asset: Battalion’s Monument Draw footprint increases from 20,007 acres to a total of 27,097 acres, resulting in a substantially larger, contiguous operational area. This expanded position is expected to enable more efficient long-lateral well development and operational synergies.
• Drilling Inventory Enhancement: The acquired acreage is expected to add approximately 30 high-quality net drilling locations targeting the prolific Wolfcamp A, Wolfcamp B, and 3rd Bone Spring formations. This increases Battalion’s future growth runway and resource potential.
• Immediate Production and Proven Geology: The transaction includes Sundown’s ownership interest in an existing Battalion-operated well, adding an estimated value of \$700,000 (at a 10% discounted net present value). The asset’s geology is well-understood, given Battalion’s previous operational experience on the acreage under a joint venture.
• Capital-Efficient Infrastructure: Development of the newly acquired acreage will leverage Battalion’s recent acid gas treating agreement with Targa Resources, securing ample sour gas treatment capacity. This infrastructure is critical for supporting future development and maximizing asset value.
• Operator Experience: Battalion previously operated the acreage under a joint venture with Sundown, drilling and evaluating wells. This hands-on experience gives the Company high confidence in the subsurface characteristics and expected well performance.

Management Commentary

“We are pleased to close this strategic, all-stock transaction with Sundown. We have drilled and operated on this acreage under our previous joint venture, giving us a high degree of confidence in the subsurface and the future potential of these 35 new locations. Combining this acreage into our Monument Draw position strengthens our development runway, and with our sour gas treating solution now in place, we are well-positioned to develop this asset efficiently and at scale.”

— Matt Steele, Chief Executive Officer, Battalion Oil Corporation

What Shareholders Need to Know

• All-Stock Nature of the Deal: The issuance of 485,000 new shares for the acquisition may have a dilutive effect, but the expected addition of high-quality drilling inventory and operational efficiencies could provide significant long-term value.
• Potential Share Price Impact: The acquisition meaningfully expands Battalion’s core asset base and drilling inventory, positioning the Company for future production growth and operational leverage. The immediate addition of producing assets and de-risked acreage is likely to be viewed positively by the market.
• Synergy with Existing Infrastructure: The recent acid gas treating agreement with Targa Resources directly supports the development of both existing and newly acquired assets, reducing future capital requirements and operational risks.
• Forward-Looking Statements: Investors should be aware that management’s comments regarding future production, reserves, and financial performance are forward-looking and subject to risks and uncertainties as detailed in Battalion’s SEC filings.

About Battalion Oil Corporation

Battalion Oil Corporation is an independent energy company focused on the acquisition, production, exploration, and development of onshore oil and natural gas properties in the United States.

Contact

Matthew B. Steele
Chief Executive Officer
832-538-0300 | www.battalionoil.com

Disclaimer

This article contains forward-looking statements that involve risks and uncertainties. Actual outcomes may differ materially from those described. Investors should review Battalion Oil Corporation’s SEC filings for a complete discussion of risk factors. This article does not constitute investment advice.

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