HighPeak Energy, Inc. Announces Fourth Quarter and Year-End 2024 Financial and Operating Results and Provides 2025 Guidance
HighPeak Energy (NASDAQ: HPK) reported its Q4 and full-year 2024 financial results, showing significant growth and operational efficiency. 2024 highlights include:
- Average sales volumes of 50.0 MBoe/d, up 10% year-over-year
- Year-end proved reserves increased 29% to 199 MMBoe
- Net income of $95.1 million ($0.67 per diluted share)
- EBITDAX of $842.9 million ($6.01 per diluted share)
- Lease operating expenses reduced 17% to $7.23 per Boe
The company achieved significant debt reduction of $120 million, paid $0.16 per share in dividends, and repurchased over 2.4 million shares. For 2025, HighPeak plans to maintain a two-rig drilling program, focusing on capital discipline while keeping production flat and reducing capital expenditures by an additional 20%. The Board declared a quarterly dividend of $0.04 per share payable in March 2025 and extended the stock repurchase authorization of up to $75.0 million through December 2025.
HighPeak Energy (NASDAQ: HPK) ha riportato i risultati finanziari del quarto trimestre e dell'intero anno 2024, mostrando una crescita significativa e un'efficienza operativa. I punti salienti del 2024 includono:
- Volumi di vendita medi di 50,0 MBoe/giorno, in aumento del 10% rispetto all'anno precedente
- Le riserve provate a fine anno sono aumentate del 29% a 199 MMBoe
- Utile netto di 95,1 milioni di dollari (0,67 dollari per azione diluita)
- EBITDAX di 842,9 milioni di dollari (6,01 dollari per azione diluita)
- Spese operative per locazione ridotte del 17% a 7,23 dollari per Boe
L'azienda ha ottenuto una significativa riduzione del debito di 120 milioni di dollari, ha distribuito dividendi di 0,16 dollari per azione e ha riacquistato oltre 2,4 milioni di azioni. Per il 2025, HighPeak prevede di mantenere un programma di perforazione con due impianti, concentrandosi sulla disciplina di capitale, mantenendo la produzione stabile e riducendo le spese in conto capitale di un ulteriore 20%. Il Consiglio ha dichiarato un dividendo trimestrale di 0,04 dollari per azione, pagabile a marzo 2025, e ha esteso l'autorizzazione al riacquisto di azioni fino a 75,0 milioni di dollari fino a dicembre 2025.
HighPeak Energy (NASDAQ: HPK) informó sus resultados financieros del cuarto trimestre y del año completo 2024, mostrando un crecimiento significativo y eficiencia operativa. Los aspectos destacados de 2024 incluyen:
- Volúmenes de ventas promedio de 50.0 MBoe/día, un aumento del 10% interanual
- Las reservas probadas al final del año aumentaron un 29% a 199 MMBoe
- Ingreso neto de 95.1 millones de dólares (0.67 dólares por acción diluida)
- EBITDAX de 842.9 millones de dólares (6.01 dólares por acción diluida)
- Gastos operativos de arrendamiento reducidos en un 17% a 7.23 dólares por Boe
La empresa logró una reducción significativa de la deuda de 120 millones de dólares, pagó 0.16 dólares por acción en dividendos y recompró más de 2.4 millones de acciones. Para 2025, HighPeak planea mantener un programa de perforación de dos plataformas, enfocándose en la disciplina de capital mientras mantiene la producción estable y reduce los gastos de capital en un 20% adicional. La Junta declaró un dividendo trimestral de 0.04 dólares por acción que se pagará en marzo de 2025 y extendió la autorización de recompra de acciones de hasta 75.0 millones de dólares hasta diciembre de 2025.
HighPeak Energy (NASDAQ: HPK)는 2024년 4분기 및 연간 재무 결과를 발표하며 상당한 성장과 운영 효율성을 보여주었습니다. 2024년 하이라이트는 다음과 같습니다:
- 평균 판매량 50.0 MBoe/일, 전년 대비 10% 증가
- 연말 입증된 매장량 29% 증가하여 199 MMBoe
- 순이익 9,510만 달러 (희석주당 0.67 달러)
- EBITDAX 8억 4,290만 달러 (희석주당 6.01 달러)
- 임대 운영 비용 17% 감소하여 Boe당 7.23 달러
회사는 1억 2천만 달러의 상당한 부채 감소를 달성했으며, 주당 0.16 달러의 배당금을 지급하고 240만 주 이상의 자사주 매입을 실시했습니다. 2025년을 위해 HighPeak는 두 개의 시추 프로그램을 유지할 계획이며, 생산을 평준화하고 자본 지출을 추가로 20% 줄이는 데 집중하면서 자본 규율을 유지할 것입니다. 이사회는 2025년 3월에 지급될 주당 0.04 달러의 분기 배당금을 선언하고, 2025년 12월까지 7,500만 달러까지의 자사주 매입 권한을 연장했습니다.
HighPeak Energy (NASDAQ: HPK) a publié ses résultats financiers pour le quatrième trimestre et l'année complète 2024, montrant une croissance significative et une efficacité opérationnelle. Les points saillants de 2024 incluent :
- Volumes de ventes moyens de 50,0 MBoe/jour, en hausse de 10 % par rapport à l'année précédente
- Les réserves prouvées à la fin de l'année ont augmenté de 29 % pour atteindre 199 MMBoe
- Revenu net de 95,1 millions de dollars (0,67 dollar par action diluée)
- EBITDAX de 842,9 millions de dollars (6,01 dollars par action diluée)
- Coûts d'exploitation de location réduits de 17 % à 7,23 dollars par Boe
L'entreprise a réalisé une réduction significative de sa dette de 120 millions de dollars, a versé 0,16 dollar par action en dividendes et a racheté plus de 2,4 millions d'actions. Pour 2025, HighPeak prévoit de maintenir un programme de forage à deux plates-formes, en se concentrant sur la discipline financière tout en maintenant une production stable et en réduisant les dépenses d'investissement de 20 % supplémentaires. Le Conseil a déclaré un dividende trimestriel de 0,04 dollar par action payable en mars 2025 et a prolongé l'autorisation de rachat d'actions jusqu'à 75,0 millions de dollars jusqu'en décembre 2025.
HighPeak Energy (NASDAQ: HPK) hat seine Finanzzahlen für das vierte Quartal und das gesamte Jahr 2024 veröffentlicht, die ein signifikantes Wachstum und operative Effizienz zeigen. Die Highlights 2024 umfassen:
- Durchschnittliche Verkaufsvolumina von 50,0 MBoe/Tag, ein Anstieg von 10% im Jahresvergleich
- Die nachgewiesenen Reserven zum Jahresende stiegen um 29% auf 199 MMBoe
- Nettogewinn von 95,1 Millionen Dollar (0,67 Dollar pro verwässerter Aktie)
- EBITDAX von 842,9 Millionen Dollar (6,01 Dollar pro verwässerter Aktie)
- Mietbetriebskosten um 17% auf 7,23 Dollar pro Boe gesenkt
Das Unternehmen erzielte eine signifikante Schuldenreduzierung von 120 Millionen Dollar, zahlte 0,16 Dollar pro Aktie an Dividenden und kaufte über 2,4 Millionen Aktien zurück. Für 2025 plant HighPeak, ein Bohrprogramm mit zwei Bohranlagen aufrechtzuerhalten, das sich auf Kapitaldisziplin konzentriert, während die Produktion stabil bleibt und die Investitionsausgaben um weitere 20% gesenkt werden. Der Vorstand erklärte eine vierteljährliche Dividende von 0,04 Dollar pro Aktie, die im März 2025 zahlbar ist, und verlängerte die Genehmigung zum Aktienrückkauf auf bis zu 75,0 Millionen Dollar bis Dezember 2025.
- 10% increase in annual production to 50.0 MBoe/d
- 29% increase in proved reserves to 199 MMBoe
- 17% reduction in lease operating expenses to $7.23 per Boe
- $120 million debt reduction in 2024
- 345% reserve replacement ratio, up 17% from 2023
- 36% increase in proved developed reserves
- Q4 2024 net income declined to $9.0 million ($0.06 per share) from previous quarters
- Production growth slowing with only 1% increase in Q4 2024 vs Q4 2023
- Quarterly dividend reduced to $0.04 per share from previous $0.16 annual rate
Insights
HighPeak Energy's Q4 and full-year 2024 results demonstrate solid operational execution despite a challenging commodity price environment. The company achieved 10% year-over-year production growth to 50.0 MBoe/d while simultaneously reducing lease operating expenses by 17% to $7.23/Boe - a significant efficiency improvement that enhances margins.
The most impressive metric is the 29% increase in proved reserves to 199 MMBoe, which substantially enhances the company's enterprise value, reflected in the $3.4 billion PV-10 valuation. This reserve growth, coupled with a strong 345% reserve replacement ratio, indicates successful drilling program execution and effective acreage management.
From a balance sheet perspective, HPK reduced long-term debt by $120 million while returning capital to shareholders through dividends and repurchasing 2.4 million shares. The company's shift to capital discipline for 2025 - maintaining flat production while reducing capital expenditures by an additional 20% - signals management's commitment to free cash flow generation and financial prudence in a volatile commodity market.
Q4 results show narrower margins with net income of just $9.0 million ($0.06/share) compared to full-year earnings of $95.1 million ($0.67/share), suggesting some pressure from lower realized prices in the quarter. Average realized prices of $50.83/Boe in Q4 reflects the challenging price environment, but the company maintained strong operational metrics with cash costs of $11.48/Boe.
The strategic pivot to maintaining rather than growing production in 2025 represents a sensible approach in the current environment, prioritizing capital efficiency and returns over growth for growth's sake - a strategy increasingly favored by investors in the E&P sector.
HighPeak's results reflect a company successfully transitioning from growth mode to value creation. The 8% organic increase in net acreage alongside inventory replacement in primary zones demonstrates effective acreage management in the competitive Midland Basin. Their successful delineation of the Middle Spraberry formation is particularly significant, potentially adding over 200 economic drilling locations with sub-$50/Bbl breakeven prices - substantially extending their runway for profitable development.
The company's infrastructure investments of $33-35 million for 2025 in gas gathering systems and power distribution represent smart long-term investments that should reduce operating costs and enhance flexibility for years to come. This type of infrastructure spending typically generates substantial returns through lower operating expenses and improved production handling capabilities.
Most telling is management's disciplined approach to development, maintaining a two-rig program rather than accelerating drilling despite their expanded inventory. This restraint reflects the industry's broader shift toward capital discipline and sustainable development models. The company's operational achievements - improving well results across their acreage while reducing drilling and completion costs per foot - indicate technical competence that should serve them well in varying commodity price environments.
HighPeak's hedging strategy appears , with partial crude oil coverage and minimal natural gas protection. While this exposes them to commodity price volatility, it also allows for upside participation if prices strengthen. Their focus on reducing interest expense and optimizing capital structure in 2025 demonstrates financial sophistication beyond mere operational execution, suggesting management is taking a holistic approach to corporate value creation through multiple financial and operational levers.
FORT WORTH, Texas, March 10, 2025 (GLOBE NEWSWIRE) -- HighPeak Energy, Inc. (“HighPeak” or the “Company”) (NASDAQ: HPK) today announced financial and operating results for the quarter and the year ended December 31, 2024. In addition, HighPeak provided its 2025 guidance and capital budget, as approved by its Board of Directors.
Highlights
- 2024 sales volumes averaged approximately 50.0 thousand barrels of crude oil equivalent per day (“MBoe/d”), representing a
10% increase year-over-year. - The Company’s year-end 2024 estimated proved reserves were 199 million Boe (“MMBoe”), representing a
29% increase compared to year-end 2023. - 2024 net income was
$95.1 million , or$0.67 per diluted share and EBITDAX (a non-GAAP financial measure defined and reconciled below) was$842.9 million , or$6.01 per diluted share. 2024 adjusted net income (a non-GAAP financial measure defined and reconciled below) was$144.8 million , or$1.05 per diluted share. - 2024 lease operating expenses averaged
$7.23 per Boe, including workover expenses, representing a17% decrease year-over-year. - Reduced long-term debt by
$120 million , paid$0.16 per share in dividends and repurchased over 2.4 million shares of common stock during 2024. - Increased net acreage over
8% , organically replaced inventory in primary zones and successfully delineated additional sub$50 per barrel (“Bbl”) break-even inventory in the Middle Spraberry formation. - Fourth quarter 2024 sales volumes averaged 50.2 MBoe/d, consisting of
86% liquids, representing a1% increase over fourth quarter 2023. - Fourth quarter 2024 net income was
$9.0 million , or$0.06 per diluted share, and EBITDAX was$179.4 million , or$1.27 per diluted share. Fourth quarter 2024 adjusted net income was$28.2 million , or$0.19 per diluted share.
Recent Events
- On February 18, 2025, the Company’s Board of Directors declared a quarterly dividend of
$0.04 per common share outstanding payable in March 2025. - The Company’s Board of Directors authorized the extension of the repurchase authorization of up to
$75.0 million of common stock through December 31, 2025, of which approximately$40 million remains available.
HighPeak Chairman and CEO, Jack Hightower, said, “As promised, 2024 was a solid, level-set year for HighPeak. We ran a disciplined and efficient drilling program, reduced our capex budget by
"As we focus our attention on 2025, we will maintain capital discipline with our two-rig drilling program, ensuring steady operations in a dynamic market. Our focus on corporate efficiency will keep production flat while reducing capital expenditures by an additional
2025 Development Outlook
The Company expects to average two (2) drilling rigs and approximately one (1) frac crew during 2025 under its current development plan, assuming commodity prices and capital costs continue to stay in their current ranges.
| Production (Boe/d) | |
| • Average production rate | 47,000 – 50,500 |
| Capex ($MM) | |
| • Net Operated Wells TIL | 52 – 56 |
| • Capital Expenditures, D,C,E&F | |
| • Capital Expenditures, Infrastructure/Other | |
| • 2025 HPK Development Capital Expenditures | |
| • One-Time Infrastructure Projects | |
| • 2025 Total Capital Expenditures | |
| Unit Measures ($/Boe) | |
| • Lease Operating Expenses | |
| • General & Administrative | |
In addition to the Company’s Development Capital Expenditures, the company will invest approximately
Year-End 2024 Proved Reserves
- As of December 31, 2024, HighPeak Energy’s estimated proved reserves, prepared by Cawley, Gillespie & Associates, Inc., increased over
29% from December 31, 2023 to 199 MMBoe consisting of approximately68% crude oil,17% NGL and15% natural gas. - Proved developed reserves increased
36% to 108 MMBoe compared with December 31, 2023 and comprised54% of the Company’s total proved reserves. - The Company’s PV-10 (a non-GAAP financial measure defined and reconciled below) was approximately
$3.4 billion at year end 2024 based on pricing guidelines established by the Securities and Exchange Commission (“SEC”). 2024 SEC pricing was$75.48 per Bbl of crude oil and$2.13 0 per MMBtu of natural gas, before adjustments for price differentials. - As of December 31, 2024, the average adjusted prices realized over the remaining lives of the Company’s assets were
$75.56 per Bbl of crude oil,$20.53 per Bbl of NGL and$0.07 2 per Mcf of natural gas. - The Company’s 2024 reserve replacement ratio was
345% , an increase of17% compared to the Company’s 2023 reserve replacement ratio.
| SEC PRICING | ||||||||||
| Crude Oil (MBbl) | NGL (MBbl) | Natural Gas (MMcf) | Total (Mboe) | PV-10 ($M) | ||||||
| Proved developed producing | 59,394 | 21,709 | 112,734 | 99,892 | $ | 2,094 | ||||
| Proved developed nonproducing | 6,238 | 1,044 | 5,668 | 8,227 | 198 | |||||
| Total proved developed reserves | 65,632 | 22,753 | 118,402 | 108,119 | 2,292 | |||||
| Proved undeveloped | 69,639 | 11,365 | 59,252 | 90,879 | 1,095 | |||||
| Total proved reserves | 135,271 | 34,118 | 177,654 | 198,998 | $ | 3,387 | ||||
Fourth Quarter 2024 Operational Update
HighPeak’s sales volumes during the fourth quarter of 2024 averaged 50.2 MBoe/d, a
The Company averaged two drilling rigs and one frac crew during the fourth quarter, drilled 17 gross (16.9 net) horizontal wells and completed 18 gross (17.8 net) operated producing wells. At December 31, 2024, the Company had 21 gross (20.9 net) operated horizontal wells in various stages of drilling and completion.
HighPeak President, Michael Hollis, commented, "HighPeak’s recent well results highlight the robust quality of our inventory, reinforcing confidence in our asset base. By efficiently expanding our consolidated acreage position, we’ve organically replenished our drilling inventory in our primary zones, positioning us for sustained success. Additionally, we are particularly encouraged by the performance of our Middle Spraberry wells, which we plan to build upon throughout 2025. Continued successful delineation of this zone has the potential to add over 200 additional sub-
Fourth Quarter 2024 Financial Results
HighPeak reported net income of
Fourth quarter average realized prices were
HighPeak’s fourth quarter 2024 capital expenditures to drill, complete, equip, provide facilities and for infrastructure were
Hedging
Crude oil. As of December 31, 2024, HighPeak had the following outstanding crude oil derivative instruments and the weighted average crude oil prices and premiums payable per Bbl:
| Swaps | Collars, Enhanced Collars & Deferred Premium Puts | |||||||||||||||||||
| Settlement Month | Settlement Year | Type of Contract | Bbls Per Day | Index | Price per Bbl | Floor or Strike Price per Bbl | Ceiling Price per Bbl | Deferred Premium Payable per Bbl | ||||||||||||
| Crude Oil: | ||||||||||||||||||||
| Jan - Mar | 2025 | Swap | 5,500 | WTI | $ | 76.37 | $ | — | $ | — | $ | — | ||||||||
| Jan - Mar | 2025 | Collar | 8,000 | WTI | $ | — | $ | 65.00 | $ | 90.00 | $ | 2.12 | ||||||||
| Jan - Mar | 2025 | Put | 2,000 | WTI | $ | — | $ | 58.00 | $ | — | $ | 5.00 | ||||||||
| Apr - Jun | 2025 | Swap | 5,500 | WTI | $ | 76.37 | $ | — | $ | — | $ | — | ||||||||
| Apr - Jun | 2025 | Collar | 7,000 | WTI | $ | — | $ | 65.00 | $ | 90.08 | $ | 2.28 | ||||||||
| Apr - Jun | 2025 | Put | 2,000 | WTI | $ | — | $ | 58.00 | $ | — | $ | 5.00 | ||||||||
| Jul - Sep | 2025 | Swap | 3,000 | WTI | $ | 75.85 | $ | — | $ | — | $ | — | ||||||||
| Jul - Sep | 2025 | Collar | 7,000 | WTI | $ | — | $ | 65.00 | $ | 90.08 | $ | 2.28 | ||||||||
| Jul - Sep | 2025 | Put | 2,000 | WTI | $ | — | $ | 58.00 | $ | — | $ | 5.00 | ||||||||
The Company’s crude oil derivative contracts detailed above are based on reported settlement prices on the New York Mercantile Exchange for West Texas Intermediate pricing.
Natural gas. In February 2025, the Company entered into the following natural gas derivative instruments, specifically HH fixed price swaps at
| Settlement Month | Settlement Year | Type of Contract | MMBtu Per Day | Index | Price per MMBtu | ||||||
| Natural Gas: | |||||||||||
| Jan – Mar | 2025 | Swap | 10,333 | HH | $ | 4.43 | |||||
| Apr – Jun | 2025 | Swap | 30,000 | HH | $ | 4.43 | |||||
| Jul – Sep | 2025 | Swap | 30,000 | HH | $ | 4.43 | |||||
| Oct – Dec | 2025 | Swap | 30,000 | HH | $ | 4.43 | |||||
| Jan – Mar | 2026 | Swap | 19,667 | HH | $ | 4.43 | |||||
Dividends
During the fourth quarter of 2024, HighPeak’s Board of Directors approved a quarterly dividend of
Conference Call
HighPeak will host a conference call and webcast on Tuesday, March 11, 2025, at 10:00 a.m. Central Time for investors and analysts to discuss its results for the fourth quarter of 2024 and its 2025 operating plan. Conference call participants may register for the call here. Access to the live audio-only webcast and replay of the earnings release conference call may be found here. A live broadcast of the earnings conference call will also be available on the HighPeak Energy website at www.highpeakenergy.com under the “Investors” section of the website. A replay will also be available on the website following the call.
When available, a copy of the Company’s earnings release, investor presentation and Annual Report on Form 10-K may be found on its website at www.highpeakenergy.com.
Conference Participation
HighPeak Energy will participate in-person at the upcoming 37th Annual Roth Conference to be held from March 16-18, 2025, located in Dana Point, California.
About HighPeak Energy, Inc.
HighPeak Energy, Inc. is a publicly traded independent crude oil and natural gas company, headquartered in Fort Worth, Texas, focused on the acquisition, development, exploration and exploitation of unconventional crude oil and natural gas reserves in the Midland Basin in West Texas. For more information, please visit our website at www.highpeakenergy.com.
Cautionary Note Regarding Forward-Looking Statements
The information in this press release contains forward-looking statements that involve risks and uncertainties. When used in this document, the words “believes,” “plans,” “expects,” “anticipates,” “forecasts,” “intends,” “continue,” “may,” “will,” “could,” “should,” “future,” “potential,” “estimate” or the negative of such terms and similar expressions as they relate to HighPeak Energy, Inc. (“HighPeak Energy” or the “Company”) are intended to identify forward-looking statements, which are generally not historical in nature. The forward-looking statements are based on the Company's current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates. Although the Company believes that the expectations and assumptions reflected in the forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond the Company's control. For example, the Company’s review of strategic alternatives may not result in a sale of the Company, a recommendation that a transaction occur or result in a completed transaction, and any transaction that occurs may not increase shareholder value, in each case as a result of such risks and uncertainties.
These risks and uncertainties include, among other things, the results of the strategic review being undertaken by the Company’s Board and the interest of prospective counterparties, the Company’s ability to realize the results contemplated by its 2025 guidance, volatility of commodity prices, product supply and demand, the impact of a widespread outbreak of an illness, such as the coronavirus disease pandemic, on global and U.S. economic activity, competition, the ability to obtain environmental and other permits and the timing thereof, other government regulation or action, the ability to obtain approvals from third parties and negotiate agreements with third parties on mutually acceptable terms, litigation, the costs and results of drilling and operations, availability of equipment, services, resources and personnel required to perform the Company's drilling and operating activities, access to and availability of transportation, processing, fractionation, refining and storage facilities, HighPeak Energy's ability to replace reserves, implement its business plans or complete its development activities as scheduled, access to and cost of capital, the financial strength of counterparties to any credit facility and derivative contracts entered into by HighPeak Energy, if any, and purchasers of HighPeak Energy's oil, natural gas liquids and natural gas production, uncertainties about estimates of reserves, identification of drilling locations and the ability to add proved reserves in the future, the assumptions underlying forecasts, including forecasts of production, expenses, cash flow from sales of oil and gas and tax rates, quality of technical data, environmental and weather risks, including the possible impacts of climate change, cybersecurity risks and acts of war or terrorism. These and other risks are described in the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K and other filings with the SEC. The Company undertakes no duty to publicly update these statements except as required by law.
Reserve engineering is a process of estimating underground accumulations of hydrocarbons that cannot be measured in an exact way. The accuracy of any reserve estimate depends on the quality of available data, the interpretation of such data and price and cost assumptions made by reserve engineers. Reserves estimates included herein may not be indicative of the level of reserves or PV-10 value of oil and natural gas production in the future, as they are based on 2024 SEC prices which are different than current commodity prices. In addition, the results of drilling, testing and production activities may justify revisions of estimates that were made previously. If significant, such revisions could impact HighPeak’s strategy and change the schedule of any further production and development drilling. Accordingly, reserve estimates may differ significantly from the quantities of oil and natural gas that are ultimately recovered.
Use of Projections
The financial, operational, industry and market projections, estimates and targets in this press release and in the Company’s guidance (including production, operating expenses and capital expenditures in future periods) are based on assumptions that are inherently subject to significant uncertainties and contingencies, many of which are beyond the Company’s control. The assumptions and estimates underlying the projected, expected or target results are inherently uncertain and are subject to a wide variety of significant business, economic, regulatory and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the financial, operational, industry and market projections, estimates and targets, including assumptions, risks and uncertainties described in “Cautionary Note Regarding Forward-Looking Statements” above. These projections are speculative by their nature and, accordingly, are subject to significant risk of not being actually realized by the Company. Projected results of the Company for 2025 are particularly speculative and subject to change. Actual results may vary materially from the current projections, including for reasons beyond the Company’s control. The projections are based on current expectations and available information as of the date of this release. The Company undertakes no duty to publicly update these projections except as required by law.
Drilling Locations
The Company has estimated its drilling locations based on well spacing assumptions and upon the evaluation of its drilling results and those of other operators in its area, combined with its interpretation of available geologic and engineering data. The drilling locations actually drilled on the Company’s properties will depend on the availability of capital, regulatory approvals, commodity prices, costs, actual drilling results and other factors. Any drilling activities conducted on these identified locations may not be successful and may not result in additional proved reserves. Further, to the extent the drilling locations are associated with acreage that expires, the Company would lose its right to develop the related locations.
| HighPeak Energy, Inc. | |||||||
| Unaudited Condensed Consolidated Balance Sheet Data | |||||||
| (In thousands) | |||||||
| December 31, | |||||||
| 2024 | 2023 | ||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 86,649 | $ | 194,515 | |||
| Accounts receivable | 85,242 | 94,589 | |||||
| Inventory | 10,952 | 7,254 | |||||
| Derivative instruments | 7,582 | 31,480 | |||||
| Prepaid expenses | 4,587 | 995 | |||||
| Total current assets | 195,012 | 328,833 | |||||
| Crude oil and natural gas properties, using the successful efforts method of accounting: | |||||||
| Proved properties | 3,959,545 | 3,338,107 | |||||
| Unproved properties | 70,868 | 72,715 | |||||
| Accumulated depletion, depreciation and amortization | (1,184,684 | ) | (684,179 | ) | |||
| Total crude oil and natural gas properties, net | 2,845,729 | 2,726,643 | |||||
| Other property and equipment, net | 3,201 | 3,572 | |||||
| Derivative instruments | — | 16,059 | |||||
| Other noncurrent assets | 19,346 | 5,684 | |||||
| Total assets | $ | 3,063,288 | $ | 3,080,791 | |||
| Current liabilities: | |||||||
| Current portion of long-term debt, net | $ | 120,000 | $ | 120,000 | |||
| Accounts payable – trade | 74,011 | 63,583 | |||||
| Accrued capital expenditures | 35,170 | 39,231 | |||||
| Revenues and royalties payable | 26,838 | 29,724 | |||||
| Other accrued liabilities | 22,196 | 19,613 | |||||
| Derivative instruments | 5,380 | 13,054 | |||||
| Operating leases | 719 | 528 | |||||
| Advances from joint interest owners | 316 | 262 | |||||
| Accrued interest | — | 1,398 | |||||
| Total current liabilities | 284,630 | 287,393 | |||||
| Noncurrent liabilities: | |||||||
| Long-term debt, net | 928,384 | 1,030,299 | |||||
| Deferred income taxes | 232,398 | 197,068 | |||||
| Asset retirement obligations | 14,750 | 13,245 | |||||
| Operating leases | 670 | — | |||||
| Derivative instruments | — | 65 | |||||
| Commitments and contingencies | |||||||
| Stockholders’ equity | |||||||
| Common stock | 13 | 13 | |||||
| Additional paid-in capital | 1,166,609 | 1,189,424 | |||||
| Retained earnings | 435,834 | 363,284 | |||||
| Total stockholders’ equity | 1,602,456 | 1,552,721 | |||||
| Total liabilities and stockholders’ equity | $ | 3,063,288 | $ | 3,080,791 | |||
| HighPeak Energy, Inc. | |||||||||||||||
| Unaudited Condensed Consolidated Statements of Operations | |||||||||||||||
| (in thousands, except per share data) | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Operating revenues: | |||||||||||||||
| Crude oil sales | $ | 232,881 | $ | 296,140 | $ | 1,060,476 | $ | 1,086,598 | |||||||
| NGL and natural gas sales | 1,925 | 5,013 | 8,938 | 24,695 | |||||||||||
| Total operating revenues | 234,806 | 301,153 | 1,069,414 | 1,111,293 | |||||||||||
| Operating costs and expenses: | |||||||||||||||
| Crude oil and natural gas production | 33,762 | 37,666 | 132,244 | 145,362 | |||||||||||
| Production and ad valorem taxes | 13,267 | 14,077 | 59,677 | 58,472 | |||||||||||
| Exploration and abandonments | 449 | 862 | 1,476 | 5,234 | |||||||||||
| Depletion, depreciation and amortization | 105,631 | 132,862 | 500,752 | 424,424 | |||||||||||
| Accretion of discount | 244 | 162 | 966 | 522 | |||||||||||
| General and administrative | 6,001 | 4,646 | 20,392 | 16,598 | |||||||||||
| Stock-based compensation | 1,375 | 3,862 | 12,701 | 25,957 | |||||||||||
| Total operating costs and expenses | 160,729 | 194,137 | 728,208 | 676,569 | |||||||||||
| Other expense | 390 | 220 | 3,795 | 8,262 | |||||||||||
| Income from operations | 73,687 | 106,796 | 337,411 | 426,462 | |||||||||||
| Interest income | 1,721 | 1,985 | 8,685 | 2,908 | |||||||||||
| Interest expense | (39,508 | ) | (44,623 | ) | (168,712 | ) | (147,901 | ) | |||||||
| (Loss) gain on derivative instruments, net | (23,053 | ) | 58,500 | (46,464 | ) | 27,602 | |||||||||
| Loss on extinguishment of debt | — | — | — | (27,300 | ) | ||||||||||
| Income before income taxes | 12,847 | 122,658 | 130,920 | 281,771 | |||||||||||
| Provision for income taxes | 3,866 | 27,654 | 35,851 | 65,905 | |||||||||||
| Net income | $ | 8,981 | $ | 95,004 | $ | 95,069 | $ | 215,866 | |||||||
| Earnings per share: | |||||||||||||||
| Basic net income | $ | 0.07 | $ | 0.68 | $ | 0.69 | $ | 1.64 | |||||||
| Diluted net income | $ | 0.06 | $ | 0.66 | $ | 0.67 | $ | 1.58 | |||||||
| Weighted average shares outstanding: | |||||||||||||||
| Basic | 124,348 | 126,242 | 125,281 | 117,956 | |||||||||||
| Diluted | 128,073 | 130,579 | 129,205 | 123,020 | |||||||||||
| Dividends declared per share | $ | 0.04 | $ | 0.025 | $ | 0.16 | $ | 0.10 | |||||||
| HighPeak Energy, Inc. | ||||||||
| Unaudited Condensed Consolidated Statements of Cash Flows | ||||||||
| (in thousands) | ||||||||
| Year Ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 95,069 | $ | 215,866 | ||||
| Adjustments to reconcile net income to net cash provided by operations: | ||||||||
| Provision for deferred income taxes | 35,330 | 65,905 | ||||||
| Loss on extinguishment of debt | — | 27,300 | ||||||
| Loss (gain) on derivative instruments | 46,464 | (27,602 | ) | |||||
| Cash paid on settlement of derivative instruments | (14,246 | ) | (24,194 | ) | ||||
| Amortization of debt issuance costs | 8,278 | 11,411 | ||||||
| Amortization of discounts on long-term debt | 9,865 | 15,140 | ||||||
| Stock-based compensation expense | 12,701 | 25,957 | ||||||
| Accretion expense | 966 | 522 | ||||||
| Depletion, depreciation and amortization | 500,752 | 424,424 | ||||||
| Exploration and abandonment expense | 620 | 4,242 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 9,347 | 2,007 | ||||||
| Prepaid expenses, inventory and other assets | (19,474 | ) | 6,923 | |||||
| Accounts payable, accrued liabilities and other current liabilities | 4,719 | 8,488 | ||||||
| Net cash provided by operating activities | 690,391 | 756,389 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Additions to crude oil and natural gas properties | (604,828 | ) | (1,009,855 | ) | ||||
| Changes in working capital associated with crude oil and natural gas property additions | (1,294 | ) | (100,802 | ) | ||||
| Acquisitions of crude oil and natural gas properties | (14,844 | ) | (15,085 | ) | ||||
| Proceeds from sales of properties | 339 | — | ||||||
| Other property additions | (216 | ) | (193 | ) | ||||
| Net cash used in investing activities | (620,843 | ) | (1,125,935 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Repayments under Term Loan Credit Agreement | (120,000 | ) | — | |||||
| Repurchased shares under buyback program | (35,166 | ) | — | |||||
| Dividends paid | (20,058 | ) | (11,864 | ) | ||||
| Dividend equivalents paid | (2,133 | ) | (1,251 | ) | ||||
| Debt issuance costs | (58 | ) | (28,444 | ) | ||||
| Proceeds from the exercises of warrants | 1 | 4,028 | ||||||
| Borrowings under Term Loan Credit Agreement, net of discount | — | 1,170,000 | ||||||
| Borrowings under Prior Credit Agreement | — | 255,000 | ||||||
| Repayments under Prior Credit Agreement | — | (525,000 | ) | |||||
| Repayments of | — | (475,000 | ) | |||||
| Premium on extinguishment of debt | — | (4,457 | ) | |||||
| Proceeds from issuance of common stock | — | 155,768 | ||||||
| Stock offering costs | — | (5,371 | ) | |||||
| Proceeds from exercises of stock options | — | 148 | ||||||
| Net cash (used in) provided by financing activities | (177,414 | ) | 533,557 | |||||
| Net (decrease) increase in cash and cash equivalents | (107,866 | ) | 164,011 | |||||
| Cash and cash equivalents, beginning of period | 194,515 | 30,504 | ||||||
| Cash and cash equivalents, end of period | $ | 86,649 | $ | 194,515 | ||||
| HighPeak Energy, Inc. | |||||||||||||||
| Unaudited Summary Operating Highlights | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Average Daily Sales Volumes: | |||||||||||||||
| Crude oil (Bbls) | 35,926 | 40,624 | 37,914 | 38,041 | |||||||||||
| NGLs (Bbls) | 7,289 | 5,262 | 6,241 | 4,239 | |||||||||||
| Natural gas (Mcf) | 42,007 | 24,395 | 34,828 | 19,777 | |||||||||||
| Total (Boe) | 50,216 | 49,952 | 49,960 | 45,577 | |||||||||||
| Average Realized Prices (excluding effects of derivatives): | |||||||||||||||
| Crude oil per Bbl | $ | 70.46 | $ | 79.24 | $ | 76.42 | $ | 78.26 | |||||||
| NGL per Bbl | $ | 22.30 | $ | 19.93 | $ | 22.06 | $ | 21.51 | |||||||
| Natural gas per Mcf | $ | 0.29 | $ | 1.51 | $ | 0.49 | $ | 1.56 | |||||||
| Total per Boe | $ | 50.83 | $ | 65.53 | $ | 58.48 | $ | 66.80 | |||||||
| Margin Data ($ per Boe): | |||||||||||||||
| Average price, excluding effects of derivatives | $ | 50.83 | $ | 65.53 | $ | 58.48 | $ | 66.80 | |||||||
| Lease operating expenses | (6.81 | ) | (7.53 | ) | (6.76 | ) | (8.04 | ) | |||||||
| Expense workovers | (0.50 | ) | (0.66 | ) | (0.47 | ) | (0.70 | ) | |||||||
| Production and ad valorem taxes | (2.87 | ) | (3.06 | ) | (3.26 | ) | (3.51 | ) | |||||||
| General and administrative expenses | (1.30 | ) | (1.01 | ) | (1.12 | ) | (1.00 | ) | |||||||
| $ | 39.35 | $ | 53.27 | $ | 46.87 | $ | 53.55 | ||||||||
| HighPeak Energy, Inc. | |||||||||||||||
| Unaudited Earnings Per Share Details | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net income as reported | $ | 8,981 | $ | 95,004 | $ | 95,069 | $ | 215,866 | |||||||
| Participating basic earnings | (861 | ) | (9,103 | ) | (9,155 | ) | (21,890 | ) | |||||||
| Basic earnings attributable to common shareholders | 8,120 | 85,901 | 85,914 | 193,976 | |||||||||||
| Reallocation of participating earnings | 5 | 133 | 108 | 334 | |||||||||||
| Diluted net income attributable to common shareholders | $ | 8,125 | $ | 86,034 | $ | 86,022 | $ | 194,310 | |||||||
| Basic weighted average shares outstanding | 124,348 | 126,242 | 125,281 | 117,956 | |||||||||||
| Dilutive warrants and unvested stock options | 1,571 | 2,178 | 1,770 | 2,905 | |||||||||||
| Dilutive unvested restricted stock | 2,154 | 2,159 | 2,154 | 2,159 | |||||||||||
| Diluted weighted average shares outstanding | 128,073 | 130,579 | 129,205 | 123,020 | |||||||||||
| Net income per share attributable to common shareholders: | |||||||||||||||
| Basic | $ | 0.07 | $ | 0.68 | $ | 0.69 | $ | 1.64 | |||||||
| Diluted | $ | 0.06 | $ | 0.66 | $ | 0.67 | $ | 1.58 | |||||||
| HighPeak Energy, Inc. | |||||||||||||||
| Unaudited Reconciliation of Net Income to EBITDAX, Discretionary Cash Flow and Net Cash Provided by Operations | |||||||||||||||
| (in thousands) | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net income | $ | 8,981 | $ | 95,004 | $ | 95,069 | $ | 215,866 | |||||||
| Interest expense | 39,508 | 44,623 | 168,712 | 147,901 | |||||||||||
| Interest income | (1,721 | ) | (1,985 | ) | (8,685 | ) | (2,908 | ) | |||||||
| Income tax expense | 3,866 | 27,654 | 35,851 | 65,905 | |||||||||||
| Depletion, depreciation and amortization | 105,631 | 132,862 | 500,752 | 424,424 | |||||||||||
| Accretion of discount | 244 | 162 | 966 | 522 | |||||||||||
| Exploration and abandonment expense | 449 | 862 | 1,476 | 5,234 | |||||||||||
| Stock based compensation | 1,375 | 3,862 | 12,701 | 25,957 | |||||||||||
| Derivative related noncash activity | 20,704 | (61,662 | ) | 32,218 | (51,796 | ) | |||||||||
| Other expense | 390 | 220 | 3,795 | 8,262 | |||||||||||
| Loss on extinguishment of debt | — | — | — | 27,300 | |||||||||||
| EBITDAX | 179,427 | 241,602 | 842,855 | 866,667 | |||||||||||
| Cash interest expense | (34,949 | ) | (40,084 | ) | (150,569 | ) | (125,807 | ) | |||||||
| Other (a) | 1,682 | 1,398 | 3,513 | (1,889 | ) | ||||||||||
| Discretionary cash flow | 146,160 | 202,916 | 695,799 | 738,971 | |||||||||||
| Changes in operating assets and liabilities | (6,642 | ) | 31,731 | (5,408 | ) | 17,418 | |||||||||
| Net cash provided by operating activities | $ | 139,518 | $ | 234,647 | $ | 690,391 | $ | 756,389 | |||||||
| (a) includes interest income net of current tax expense, other expense and operating portion of exploration and abandonment expenses. | |||||||||||||||
| HighPeak Energy, Inc. | |||||||||||||||
| Unaudited Reconciliation of Net Income to Adjusted Net Income | |||||||||||||||
| (in thousands, except per share data) | |||||||||||||||
| Three Months Ended December 31, 2024 | Year Ended December 31, 2024 | ||||||||||||||
| Amounts | Amounts per Diluted Share | Amounts | Amounts per Diluted Share | ||||||||||||
| Net income | $ | 8,981 | $ | 0.06 | $ | 95,069 | $ | 0.69 | |||||||
| Derivative loss, net | 23,053 | 0.15 | 46,464 | 0.34 | |||||||||||
| Stock-based compensation | 1,375 | 0.01 | 12,701 | 0.09 | |||||||||||
| Other expense | 390 | 0.01 | 3,795 | 0.03 | |||||||||||
| Income tax adjustment for above items * | (5,584 | ) | (0.04 | ) | (13,222 | ) | (0.10 | ) | |||||||
| Adjusted net income | $ | 28,215 | $ | 0.19 | $ | 144,807 | $ | 1.05 | |||||||
| * Assuming | |||||||||||||||
| HighPeak Energy, Inc. | ||
| Unaudited Reconciliation of Standardized Measure to PV-10 | ||
| (in thousands) | ||
| As of December 31, 2024 | Total Proved | |
| Standardized measure | $ | 2,994,997 |
| Present value of future income taxes and certain abandonment costs discounted at | 392,077 | |
| Present value of estimated future cash flows (PV-10) | $ | 3,387,074 |
| HighPeak Energy, Inc. | ||
| Unaudited Reserve Replacement Computations | ||
| MBoe | ||
| Proved Reserves on December 31, 2023 | 154,162 | |
| Extensions, discoveries and revisions | 63,121 | |
| Production | (18,285 | ) |
| Proved Reserves on December 31, 2024 | 198,998 | |
| Reserve Replacement with the drill bit | 345 | % |
Investor Contact:
Ryan Hightower
Vice President, Business Development
817.850.9204
rhightower@highpeakenergy.com
Source: HighPeak Energy, Inc.
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