SCHEDULE: Diveroli Investment Group Takes 5.39% Stake in Battalion Oil

Diveroli Investment Group LLC and Kingbird Ventures LLC have acquired a 5.39% beneficial ownership stake in Battalion Oil Corp. Class A Common Stock through open market purchases.

Summary

• Diveroli Investment Group LLC and Kingbird Ventures LLC (the "Reporting Persons") have acquired 887,455.00 shares of Battalion Oil Corp.'s Class A Common Stock.
• This acquisition represents a beneficial ownership of 5.39% of the outstanding Class A Common Stock.
• The shares were purchased in open market transactions between July 1, 2025, and January 21, 2026.
• The aggregate consideration for these shares was $1,047,196.90, at an average price of $1.18 per share, inclusive of brokerage fees.
• The percentage of ownership is based on 16,456,563 shares of Class A Common Stock outstanding as of September 30, 2025, as reported in the Issuer's Form 10-Q filed on November 13, 2025.
• The Reporting Persons intend to review their investment periodically and may acquire or dispose of shares based on various factors, including the Issuer's business, financial condition, and market conditions.

Sentiment

Score: 6

Explanation: The sentiment is moderately positive. The acquisition of a significant stake by an investment group can be viewed as a vote of confidence in the company's value or future prospects. However, the filing does not detail any immediate activist plans or specific value-creation strategies, keeping the sentiment from being strongly positive.

Positives

• A significant stake acquisition by an investment group can signal confidence in the Issuer's long-term prospects or perceived undervaluation.
• The investment group has explicitly stated they have not formulated plans for extraordinary corporate transactions, changes to the board or management, or material changes to capitalization or dividend policy, which may suggest a less aggressive, more investment-focused approach initially.

Risks

• The Reporting Persons may dispose of some or all of their shares in the future, which could exert downward pressure on the stock price.
• While no specific plans are currently formulated, the Reporting Persons, as significant interest holders, may seek to influence corporate activities, which could lead to strategic shifts or disagreements with existing management.

Future Outlook

The Reporting Persons intend to continuously review their investment in Battalion Oil Corp. based on various factors, including the company's performance, market conditions, and other investment opportunities. They may acquire additional shares or dispose of existing ones in the open market or privately negotiated transactions, as deemed appropriate.

Management Comments

• Aharon Diveroli, Chief Investment Officer of Diveroli Investment Group LLC and Kingbird Ventures LLC, signed the filing.

Industry Context

This Schedule 13D filing indicates a significant passive or potentially activist investment in Battalion Oil Corp. by an investment group. Such filings are common when an investor crosses the 5% beneficial ownership threshold, signaling a notable new stakeholder in the company. While the stated intent is currently broad, it positions the investment group to potentially influence future corporate decisions or strategic directions, a common dynamic in the public markets.

Comparison to Industry Standards

• NA

Stakeholder Impact

• Shareholders: The entry of a significant investor could lead to increased scrutiny of management and potential future strategic changes, which may impact share value.
• Management: The Reporting Persons, as significant shareholders, may seek to engage with or influence management and the board on corporate activities.

Next Steps

• The Reporting Persons will continue to review their investment in Battalion Oil Corp.
• They may acquire additional shares or dispose of existing shares in the future, depending on market conditions and their assessment of the Issuer.

Key Dates

Recommendation

The acquisition of a 5.39% stake by an investment group is a notable event that could signal potential future strategic involvement or a belief in the company's intrinsic value. However, the filing explicitly states that the Reporting Persons have not formulated any plans for extraordinary corporate transactions, changes to the board, or material shifts in capitalization or dividend policy. This suggests a currently passive investment stance. While the presence of a new significant shareholder can be a positive catalyst, the lack of immediate, concrete activist plans warrants a 'hold' recommendation. Investors should monitor future filings and any communications from Diveroli Investment Group for clearer indications of their intentions before making significant buy or sell decisions.

Keywords

Battalion Oil Corp, Diveroli Investment Group, Kingbird Ventures, Schedule 13D, Class A Common Stock, Beneficial Ownership, Investment Stake, Shareholder Activism