Battalion Oil Closes Delaware Basin Acquisition

TL;DR

Battalion Oil just bought a huge chunk of Delaware Basin assets from Warburg Pincus.

AI Summary

On November 14, 2024, Battalion Oil Corporation announced the closing of its previously disclosed acquisition of assets from entities controlled by Warburg Pincus. The transaction involved the acquisition of approximately 14,000 net acres in the Delaware Basin, with an effective date of July 1, 2024. This acquisition is expected to significantly expand Battalion Oil's operational footprint and production capacity.

Why It Matters

This acquisition significantly expands Battalion Oil's presence in the prolific Delaware Basin, potentially leading to increased production and reserves.

Risk Assessment

Risk Level: medium — Acquisitions, especially of this scale, carry inherent integration and operational risks, alongside potential fluctuations in commodity prices impacting the acquired assets.

Key Numbers

• 14,000 — net acres (Size of the acquired acreage in the Delaware Basin)

Key Players & Entities

• Battalion Oil Corporation (company) — Registrant
• Warburg Pincus (company) — Seller of acquired assets
• Delaware Basin (location) — Geographic area of acquired assets
• July 1, 2024 (date) — Effective date of the acquisition
• November 14, 2024 (date) — Closing date of the acquisition

FAQ

Key Financial Figures

• $0.0001 B — ich registered Common Stock par value $0.0001 BATL NYSE American Indicate by check
• $160,000,000, m — for withdrawal equal to or greater than $160,000,000, minus the initial $10,000,000 funded into
• $10,000,000 — er than $160,000,000, minus the initial $10,000,000 funded into such Escrow Account prior t

Filing Documents

• tm2428637d1_8k.htm (8-K) — 40KB
• 0001104659-24-119973.txt ( ) — 215KB
• batl-20241114.xsd (EX-101.SCH) — 3KB
• batl-20241114_lab.xml (EX-101.LAB) — 33KB
• batl-20241114_pre.xml (EX-101.PRE) — 22KB
• tm2428637d1_8k_htm.xml (XML) — 4KB

01 Other Events

Item 8.01 Other Events On November 14, 2024, Battalion Oil Corporation, a Delaware corporation (the " Company " or " we "), was informed by Fury Resources, Inc., a Delaware corporation (" Parent "), that Parent would fail to meet certain deadlines (described below) set forth in the Agreement and Plan of Merger, dated as of December 14, 2023, by and among the Company, Parent, and San Jacinto Merger Sub, Inc., a Delaware corporation and a direct, wholly owned subsidiary of Parent (" Merger Sub "), as amended by that certain First Amendment to Agreement and Plan of Merger, dated as of January 24, 2024 (the " First Amendment "), the Second Amendment to the Agreement and Plan of Merger, dated as of February 6, 2024 (the " Second Amendment "), the Third Amendment to Agreement and Plan of Merger, dated as of February 16, 2024 (the " Third Amendment "), the Fourth Amendment to the Agreement and Plan of Merger, dated as of April 16, 2024 (the " Fourth Amendment "), the Fifth Amendment to the Agreement and Plan of Merger, dated as of June 10, 2024 (the " Fifth Amendment "), the Sixth Amendment to the Agreement and Plan of Merger, dated as of September 11, 2024 (the " Sixth Amendment "), and the Seventh Amendment to the Agreement and Plan of Merger, dated September 19, 2024 (the " Seventh Amendment " and, as amended by the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment, the Sixth Amendment and the Seventh Amendment, the " Merger Agreement "). Pursuant to the Merger Agreement, Parent is obligated to deliver to the Company, on or before 5:00 p.m. Central Time on the date that is seven (7) days prior to the anticipated closing date of the transaction (such closing date, the " Closing Date " and the date that is seven (7) days prior to the Closing Date, the " Funding Deadline "), evidence reasonably satisfactory to the Company (" Evidence of Funding ") that Parent has funded into an escrow account (the " Escrow Account ") a

Forward-Looking Statements

Forward-Looking Statements All statements and assumptions in this communication that do not directly and exclusively relate to historical facts could be deemed "forward-looking statements." Forward-looking "expects," "may," "could," "should," "forecast," "goal," "intends," "objective," "plans," "projects," "strategy," "target" and "will" and similar words and terms or variations of such. These statements represent current intentions, expectations, beliefs or projections, and no assurance can be given that the results described in such statements will be achieved. Forward-looking statements include, among other things, statements about the potential benefits of the proposed transaction; the prospective performance and outlook of the Company's business, performance and opportunities; the ability of the parties to complete the proposed transaction and the expected timing of completion of the proposed transaction; as well as any assumptions underlying any of the foregoing. Such statements are subject to numerous assumptions, risks, uncertainties and other factors that could cause actual results to differ materially from those described in such statements, many of which are outside of the Company's control. Important factors that could cause actual results to differ materially from those described in forward-looking statements include, but are not limited to, (i) the risk that the proposed transaction may not be completed in a timely manner or at all; (ii) the failure to receive, on a timely basis or otherwise, the required approvals of the proposed transaction by the Company's stockholders; (iii) the possibility that any or all of the various conditions to the consummation of the proposed transaction may not be satisfied or waived, including the failure to receive any required regulatory approvals from any applicable governmental entities (or any conditions, limitations

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View this 8-K filing on SEC EDGAR