Battalion Oil Swaps Gas Treating Partner, Boosts Production
Event summary
- Battalion terminated its gas treating agreement with Wink Amine Treater, LLC after the latter's acid gas injection facility ceased operations on August 11, 2025.
- The company has secured a new agreement with a publicly traded large-cap midstream provider to process its gas volumes.
- Production at the alternate facility has increased to over 30 MMcf/d in January, up from a December average of 17.4 MMcf/d.
- This shift has contributed to a 1,200 net barrels per day increase in Battalion's average oil production in January.
The big picture
Battalion's shift to a new midstream partner reflects broader industry trends toward consolidation in gas processing infrastructure. The move highlights the strategic importance of reliable midstream relationships for independent producers, particularly in maintaining production growth. The company's ability to quickly adapt to the Wink Amine Treater facility's closure demonstrates operational agility in a challenging market environment.
What we're watching
- Operational Reliability
- How the new midstream partner's facility expansion will affect Battalion's long-term production stability.
- Production Growth
- Whether Battalion can sustain the current pace of production increases through 2026.
- Midstream Dependence
- The potential risks of relying on a single large-cap midstream provider for gas processing.
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