Key Points from the Latest SEC Filing

• Battalion Oil Corporation (“the Company”) has entered into a Sales Agreement with Roth Capital Partners, LLC to offer and sell up to \$150 million of its common stock through an at-the-market (“ATM”) equity offering program.
• The shares will be issued under the Company’s effective shelf registration statement on Form S-3 (File No. 333-295204), declared effective on April 28, 2026.
• The ATM program allows the Company to sell shares from time to time at market prices through Roth Capital as agent.
• The legal opinion for the offering is provided by Mayer Brown LLP and is included as an exhibit.
• The Company’s common stock trades on the NYSE American under the symbol “BATL”.

Details of the At-the-Market Offering

• The total offering size is up to \$150 million in common stock.
• Sales will be made in accordance with the terms of the Sales Agreement, which include indemnification obligations and termination provisions for both the Company and the sales agent.
• Shares will be sold at prevailing market prices, subject to parameters set by the Company (including timing, minimum price, and maximum amount, as specified in each Placement Notice).
• The Company retains control over the timing and amount of sales and may suspend or terminate the offering at any time.
• There are no guarantees regarding the amount of shares that will ultimately be sold under this program.

Potential Price Sensitive Information for Shareholders

• This ATM equity offering is potentially dilutive to existing shareholders, as it will increase the number of shares outstanding depending on the amount sold.
• Use of Proceeds: The Company has not specified the exact use of proceeds in this filing, but such funds are typically used for general corporate purposes, including working capital, debt reduction, acquisitions, or capital expenditures.
• Market Impact: The ability to sell shares into the open market at the Company’s discretion may place downward pressure on the stock price, especially if large amounts are sold over a short period.
• The Company affirms that there have been no material adverse changes to its business or capital structure since the last financial statements, other than what is publicly disclosed or as a result of this offering.
• The filing states that there are no outstanding stop orders or legal proceedings threatening the validity of the registration statement.
• The Company certifies compliance with internal controls, disclosure controls, and Sarbanes-Oxley requirements. There have been no material weaknesses in internal controls, except as otherwise disclosed.

Other Important Information

• Legal Compliance: The Company asserts it is in compliance with all material laws and regulations.
• No Unregistered Sales: There have been no unregistered sales of equity securities that require disclosure.
• No Material Adverse Events: Since the last report, there has not been any material adverse change in the Company’s financial condition or operations, outside what’s already disclosed.
• The Company’s financial statements are prepared in accordance with GAAP, and the auditor (Deloitte & Touche LLP) is independent as required by law.
• All forward-looking statements are made in good faith and are covered by safe harbor provisions.
• There are no outstanding material loans, guarantees, or related party transactions that are undisclosed.

Implications for Investors

The launch of a \$150 million ATM equity program is a significant development for Battalion Oil Corporation and its shareholders. While it provides the Company with financial flexibility and access to capital, it carries potential risks:

• Dilution: If a large portion of the \$150 million is raised, existing shareholders will see their ownership percentage reduced, possibly leading to share price pressure.
• Market Uncertainty: The indeterminate timing and amount of future share issuances may create uncertainty and potentially increased volatility in the Company’s stock price.
• However, the ATM facility provides the Company with an efficient way to raise capital as needed, potentially strengthening its balance sheet and supporting growth initiatives.
• Investors should closely monitor future Company disclosures regarding actual sales under the ATM, use of proceeds, and any changes in business outlook.