Battalion Terminates Contract with WAT and Partners with New Provider
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 23 2026
0mins
Should l Buy BATL?
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.
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Analyst Views on BATL
About BATL
Battalion Oil Corporation is an independent energy company. It is focused on the acquisition, production, exploration and development of onshore liquids-rich oil and natural gas assets in the United States. Its properties and drilling activities are focused on the Delaware Basin. Its principal properties consist of leasehold interests in developed and undeveloped oil and natural gas properties and the reserves associated with these properties. Its working interests in over 40,476 net acres in the Delaware Basin are in Pecos, Reeves, Ward and Winkler Counties, Texas. This resource play is characterized by high oil and liquids-rich natural gas content in thick, continuous sections of source rock that can provide repeatable drilling opportunities and significant initial production rates. Its primary targets in this area are the Wolfcamp and Bone Spring formations. It has approximately 91 operated wells producing in this area in addition to minor working interests in 13 non-operated wells.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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