Houston, Texas, April 29, 2026 (GLOBE NEWSWIRE) -- Battalion Oil Corporation (NYSE:BATL, "Battalion" or the "Company")) today announced a substantial increase in compression capacity, facilitating current production and, more importantly, future development.

Key Highlights

Contractually secured additional compression capacity
Executed a long-term contract to provide 50% additional compression capacity in Monument Draw
Facilities are expected to be online in early Q3 2026, allowing maximum production capability from Monument Draw and debottlenecking future drilling inventory
Current well economics return 80%+ IRR at recently hedged commodity prices and current well costs

Management Comments

Battalion has entered a new long-term contract for an additional 50% sour gas compression capacity across its Ward and Winkler County assets, increasing flow capacity from 35 MMcfd to over 50 MMcfd. Building on the recent midstream transformation that unlocked the ability to flow wells at record rates, the Company is focused on fortifying its ability to increase capacity and redundancy to support current production and future development activity in the field. Built-for-purpose sour gas compressors currently have lead times of 18 to 36 months. Through an extensive international search, the Company secured a new, built-for-purpose compressor, reducing the lead time to approximately two months. The transaction structure requires no use of Battalion's capital and results in a modest uptick in operating expenses, while substantially boosting gas throughput.

"We're excited to partner with an industry leader that has a proven track record and is ready to grow with our assets," said Matt Steele, Chief Executive Officer of Battalion Oil. "The fact that Battalion was able to accelerate throughput capacity by skipping the typical two-year lead time positions the Company to continue to increase production through current well optimization, new drilling activity and strategic M&A. We look forward to bringing new wells online in 2026."

Forward Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that are not strictly historical statements constitute forward-looking statements. Forward-looking statements include, among others, statements about anticipated production, liquidity, capital spending, drilling and completion plans, and forward guidance. Forward-looking statements may often, but not always, be identified by the use of such words such as "expects", "believes", "intends", "anticipates", "plans", "estimates", "projects," "potential", "possible", or "probable" or statements that certain actions, events or results "may", "will", "should", or "could" be taken, occur or be achieved. Forward-looking statements are based on current beliefs and expectations and involve certain assumptions or estimates that involve various risks and uncertainties that could cause actual results to differ materially from those reflected in the statements. These risks include, but are not limited to, those set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and other filings submitted by the Company to the SEC, copies of which may be obtained from the SEC's website at www.sec.gov or through the Company's website at www.battalionoil.com. Readers should not place undue reliance on any such forward-looking statements, which are made only as of the date hereof. The Company has no duty, and assumes no obligation, to update forward-looking statements as a result of new information, future events or changes in the Company's expectations.

About Battalion

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

Matthew B. Steele
Chief Executive Officer
832-538-0300

Battalion Oil Increases Compression Capacity, Building on Previously Announced Midstream Reliability