HighPeak Energy, Inc. Announces Fourth Quarter and Year-End 2025 Financial and Operating Results and Provides 2026 Guidance
Rhea-AI Summary
HighPeak Energy (NASDAQ: HPK) reported 2025 results and issued 2026 guidance on March 11, 2026. Key facts: 2025 proved reserves ~174 MMBoe and PV-10 ~$2.1 billion. Full-year 2025 sales averaged 48.3 MBoe/d; FY net income $19.0M; Q4 net loss $25.2M. For 2026 the company plans one rig/one frac crew, 28–30 wells drilled, 36–38 wells turned in line, 2026 capex $255–$285M (down ~50% YoY), production guidance 41,000–44,000 Boe/d, and suspended its dividend to conserve $20–$25M.
Positive
- Proved reserves of 174 MMBoe at year-end 2025
- PV-10 of approximately $2.1 billion based on SEC pricing
- 2026 total capital expenditures guided at $255–$285 million (~50% reduction YoY)
- 2026 production guidance of 41,000–44,000 Boe/d
- 2026 development plan: 28–30 wells drilled and 36–38 wells online
Negative
- Q4 2025 net loss of $25.2 million (loss per diluted share $0.21)
- Full-year 2025 unhedged EBITDAX per Boe of $33.65 indicates narrow cash margin versus realized price
- Dividend suspended in Q1 2026, reducing shareholder cash returns by an estimated $20–$25 million
- Nearly 50% reduction in 2026 capex may constrain near-term production growth and reserve development
News Market Reaction – HPK
In the Mar 12 session, HPK declined 2.74%, reflecting a moderate negative market reaction. Argus tracked a peak move of +2.6% during that session. Argus tracked a trough of -12.6% from its starting point during tracking. Our momentum scanner triggered 27 alerts that day, indicating elevated trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Aug 11 | Q2 2025 earnings | Positive | -13.3% | Flat volumes, positive net income and EBITDAX with lower capex and more hedging. |
| May 12 | Q1 2025 earnings | Positive | +3.6% | Higher volumes, strong net income and EBITDAX, free cash flow and debt reduction. |
| May 12 | Q1 2025 earnings | Positive | +3.6% | Strong Q1 2025 results, updated production guidance and maintained capex plan. |
| Mar 10 | FY 2024 earnings | Positive | -7.4% | 2024 growth in volumes and reserves, higher EBITDAX and debt reduction with dividends. |
| Nov 04 | Q3 2024 earnings | Positive | +11.2% | Strong Q3 2024 net income, EBITDAX, free cash flow and debt reduction. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases have produced mixed reactions: generally positive fundamentals with both strong rallies and notable selloffs. Across five recent earnings-related events, price moves split between aligned and divergent reactions, with the average move at -0.46%.
Recent earnings history for HighPeak shows solid operational metrics alongside volatile share reactions. Q3 2024 and Q1 2025 reports highlighted strong net income, EBITDAX and free cash flow, plus ongoing debt reduction and dividends. Year-end 2024 results showed higher volumes, reserve growth and lower LOE, yet the stock fell 7.37%. Subsequent 2025 quarters maintained meaningful EBITDAX and moderated capex. Today’s full-year 2025 update and 2026 guidance continue this focus on capital discipline, hedging and balance sheet strength.
Key Terms
ebitdax financial
pv-10 financial
costless collar financial
basis swap financial
roll swap financial
henry hub financial
form 10-q regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
FORT WORTH, Texas, March 11, 2026 (GLOBE NEWSWIRE) -- HighPeak Energy, Inc. (“HighPeak” or the “Company”) (NASDAQ: HPK) today announced financial and operating results for the quarter and year ended December 31, 2025. In addition, HighPeak provided its 2026 guidance and capital budget, as approved by its Board of Directors.
A statement from our President and CEO, Michael Hollis,
“In light of the current geopolitical uncertainty and commodity price volatility, we are taking a disciplined and measured approach to 2026. Our priority is clear: protect profitability and maximize free cash flow, not chase production volumes.
Our top financial objective is strengthening the balance sheet. Any incremental free cash flow generated in a stronger commodity price environment will be directed toward accelerating debt reduction. To strengthen our financial resilience and position the Company for long-term success, we are taking decisive, proactive measures across the organization. These include reducing our annual capital budget to align expenditures with cash flow generation, expanding our hedging program to capture attractive pricing and mitigate commodity price volatility, and suspending our dividend to increase annual liquidity by an estimated
Our conservative 2026 development plan is based on one drilling rig and one completion crew, which we expect will allow us to drill approximately 30 wells and bring 36–38 wells online. This plan is intentionally structured to:
- Operate within cash flow, inclusive of our financial obligations, with crude prices averaging down to the mid-to-upper
$50 s per barrel; - Maximize free cash flow generation and accelerate debt paydown in a higher price environment; and
- Maintain strict cost optimization across our operations.
HighPeak’s 2026 program balances capital investment in new development with optimization of our existing base production. This plan is already delivering results as quarter-to-date production is exceeding 46 MBoe/day, including the effects of winter storm Fern. Our reduced capital expenditure budget, down nearly
Inventory depth and remaining Tier 1 locations are important themes across the U.S. unconventional sector, and we do not take our position for granted. While we maintain a deep, delineated inventory of high-quality drilling locations, we are cautious not to accelerate development into an extremely volatile market. Although recent events in the world have caused a surge in near-term oil prices, we are committed to developing our assets at the appropriate cadence — one that reflects sustained market conditions, capital discipline and long-term value creation.
At our current development pace, we have multiple decades of high-return inventory supported by a life-of-field infrastructure system designed to efficiently extract our resources to maximize returns for our shareholders. We are building a business that is durable through the cycle, beginning with strengthening our financial foundation.”
2026 Outlook
The Company plans to average one (1) drilling rig and approximately one (1) frac crew during 2026 under its current plan of development.
| Development Plan and Capex | |
| • Operated Wells Drilled | 28 - 30 |
| • Operated Wells TIL’d | 36 - 38 |
| • Average lateral length | ~12,500’ |
| • Average cost/foot | ~ |
| • Operated D,C,E&F Capex | |
| • 2026 Total Capital Expenditures(1) | |
| Production (Boe/d) | |
| • Average daily production rate | 41,000 – 44,000 |
| • Oil % | |
| Unit Measures ($/Boe) | |
| • Lease Operating Expenses, including workovers | |
| • Gathering, Processing & Transportation Expenses | |
| • General & Administrative | |
| (1) Total capital expenditures includes operated and non-operated D,C,E&F, infrastructure, midstream, ESG & capital workovers. | |
Year-End 2025 Proved Reserves
- As of December 31, 2025, HighPeak Energy’s estimated proved reserves, prepared by Cawley, Gillespie & Associates, Inc., were 174 MMBoe consisting of approximately
66% crude oil,17% NGL and17% natural gas. - Proved developed reserves were 96 MMBoe and comprised
55% of the Company’s total proved reserves. - The Company’s PV-10 (a non-GAAP financial measure defined and reconciled below) was approximately
$2.1 billion at year end 2025 based on pricing guidelines established by the Securities and Exchange Commission (“SEC”). 2024 SEC pricing was$65.34 per Bbl of crude oil and$3.387 per MMBtu of natural gas, before adjustments for price differentials. - As of December 31, 2025, the average adjusted prices realized over the remaining lives of the Company’s assets were
$65.32 per Bbl of crude oil net of price differentials and$3.20 per Bbl of NGL and$0.795 per Mcf of natural gas, net of gathering, processing and transportation expenses.
| Crude Oil (MBbl) | NGL (MBbl) | Natural Gas (MMcf) | Total (MBoe) | PV-10 ($M) | |||||||
| Proved developed producing | 49,538 | 19,840 | 114,217 | 88,414 | $ | 1,354 | |||||
| Proved developed nonproducing | 5,554 | 1,101 | 6,349 | 7,713 | 139 | ||||||
| Total proved developed reserves | 55,092 | 20,941 | 120,566 | 96,127 | 1,493 | ||||||
| Proved undeveloped | 59,106 | 9,503 | 54,928 | 77,764 | 564 | ||||||
| Total proved reserves | 114,198 | 30,444 | 175,494 | 173,891 | $ | 2,057 | |||||
Fourth Quarter & Full-Year 2025 Operational Update
HighPeak’s sales volumes averaged 48.3 thousand barrels of crude oil equivalent (“MBoe/d”) during full-year 2025 consisting of approximately
The Company averaged 1-2 drilling rigs and one frac crew throughout full-year 2025, drilled 50 gross (49.8 net) horizontal wells and turned-in-line 49 gross (48.7 net) producing wells. The Company averaged two drilling rigs and one frac crew during the fourth quarter, drilled 15 gross (15.0 net) horizontal wells and turned-in-line 13 gross (13.0 net) producing wells. On December 31, 2025, the Company had 23 gross (23.0 net) horizontal wells in various stages of drilling and completion.
The Company released a drilling rig in late January bringing us to one drilling rig and one frac crew that we plan to run for the majority of 2026.
Fourth Quarter & Full-Year 2025 Financial Results
HighPeak reported net income of
Full-year 2025 average realized prices were
HighPeak’s total capital expenditures, excluding acquisitions, for the full-year 2025 were
Hedging
Crude oil. As of December 31, 2025 and factoring in derivative instruments entered into subsequent to yearend, HighPeak had the following outstanding crude oil derivative instruments and the weighted average crude oil prices per barrel (“Bbl”):
| Settlement Month | Settlement Year | Type of Contract | Bbls Per Day | Index | Swap Price per Bbl | Costless Collar Floor Price per Bbl | Costless Collar Ceiling Price per Bbl | |||||||||||||
| Crude Oil: | ||||||||||||||||||||
| Jan – Mar | 2026 | Costless Collar | 14,350 | WTI Cushing | $ | — | $ | 60.58 | $ | 69.62 | ||||||||||
| Jan – Mar | 2026 | Swap | 5,139 | Argus WTI Midland | $ | 62.54 | $ | — | $ | — | ||||||||||
| Jan – Mar | 2026 | Basis Swap | 689 | WTI Cushing | $ | 0.92 | $ | — | $ | — | ||||||||||
| Apr – Jun | 2026 | Costless Collar | 12,350 | WTI Cushing | $ | — | $ | 59.87 | $ | 66.82 | ||||||||||
| Apr – Jun | 2026 | Swap | 10,000 | WTI Cushing | $ | 64.91 | $ | — | $ | — | ||||||||||
| Apr – Jun | 2026 | Roll Swap | 10,000 | NYMEX WTI Roll | $ | 4.04 | $ | — | $ | — | ||||||||||
| Apr – Jun | 2026 | Basis Swap | 5,000 | Argus WTI Midland | $ | 1.01 | $ | — | $ | — | ||||||||||
| Jul – Sep | 2026 | Costless Collar | 12,000 | WTI Cushing | $ | — | $ | 59.83 | $ | 66.84 | ||||||||||
| Jul – Sep | 2026 | Swap | 5,000 | WTI Cushing | $ | 63.45 | $ | — | $ | — | ||||||||||
| Jul – Sep | 2026 | Roll Swap | 10,000 | NYMEX WTI Roll | $ | 4.04 | $ | — | $ | — | ||||||||||
| Jul – Sep | 2026 | Basis Swap | 5,000 | Argus WTI Midland | $ | 1.01 | $ | — | $ | — | ||||||||||
| Oct – Dec | 2026 | Costless Collar | 9,800 | WTI Cushing | $ | — | $ | 59.80 | $ | 65.31 | ||||||||||
| Oct – Dec | 2026 | Swap | 5,000 | WTI Cushing | $ | 63.45 | $ | — | $ | — | ||||||||||
| Oct – Dec | 2026 | Roll Swap | 10,000 | NYMEX WTI Roll | $ | 4.04 | $ | — | $ | — | ||||||||||
| Oct – Dec | 2026 | Basis Swap | 5,000 | Argus WTI Midland | $ | 1.01 | $ | — | $ | — | ||||||||||
| Jan – Mar | 2027 | Costless Collar | 8,900 | WTI Cushing | $ | — | $ | 59.78 | $ | 65.24 | ||||||||||
| Jan – Mar | 2027 | Swap | 4,400 | WTI Cushing | $ | 62.14 | $ | — | $ | — | ||||||||||
| Jan – Mar | 2027 | Basis Swap | 10,000 | Argus WTI Midland | $ | 1.00 | $ | — | $ | — | ||||||||||
| Apr – Jun | 2027 | Costless Collar | 4,000 | WTI Cushing | $ | — | $ | 52.00 | $ | 62.85 | ||||||||||
| Apr – Jun | 2027 | Swap | 6,470 | WTI Cushing | $ | 59.61 | $ | — | $ | — | ||||||||||
| Apr – Jun | 2027 | Basis Swap | 10,000 | Argus WTI Midland | $ | 1.00 | $ | — | $ | — | ||||||||||
| Jul – Sep | 2027 | Swap | 8,950 | WTI Cushing | $ | 61.46 | $ | — | $ | — | ||||||||||
| Jul – Sep | 2027 | Basis Swap | 10,000 | Argus WTI Midland | $ | 1.00 | $ | — | $ | — | ||||||||||
| Oct – Dec | 2027 | Basis Swap | 10,000 | Argus WTI Midland | $ | 1.00 | $ | — | $ | — | ||||||||||
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 (“WTI Cushing”) pricing or the basis differential between that and Argus WTI Midland pricing which represents the premium to WTI Cushing.
Natural gas. As of December 31, 2025 and factoring in derivative instruments entered into subsequent to yearend, the Company had the following outstanding natural gas derivative instruments and the weighted average natural gas prices payable per MMBtu.
| Settlement Month | Settlement Year | Type of Contract | MMBtu Per Day | Index | Price per MMBtu | ||||||
| Natural Gas: | |||||||||||
| Jan – Mar | 2026 | Swap | 31,556 | HH | $ | 4.53 | |||||
| Apr – Jun | 2026 | Swap | 30,000 | HH | $ | 4.30 | |||||
| Jul – Sep | 2026 | Swap | 30,000 | HH | $ | 4.30 | |||||
| Oct – Dec | 2026 | Swap | 30,000 | HH | $ | 4.30 | |||||
| Jan – Mar | 2027 | Swap | 19,667 | HH | $ | 4.30 | |||||
The Company’s natural gas derivative contracts detailed above are based on reported settlement prices on the New York Mercantile Exchange for Henry Hub (“HH”) pricing.
Dividends
During the fourth quarter of 2025, HighPeak’s Board of Directors approved a quarterly dividend of
Conference Call
HighPeak will host a conference call and webcast on Thursday, March 12, 2026, at 11:00 a.m. Central Time for investors and analysts to discuss its results for the third quarter of 2025. 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 Quarterly Report on Form 10-Q may be found on its website at www.highpeakenergy.com.
Conference Participation
HighPeak Energy will participate in-person at the upcoming 38th Annual Roth Conference to be held from March 23-25, 2026, 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 2026 guidance, volatility of commodity prices, political instability or armed conflicts in crude or natural gas producing regions such as the ongoing war between Russia and Ukraine and conflicts in the Middle East, 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, OPEC+ policy decisions, potential new trade policies, such as tariffs, could adversely affect the Company’s operations, business and profitability, inflationary pressures on costs of oilfield goods, services and personnel, 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. 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 2026 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, | |||||||
| 2025 | 2024 | ||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 162,075 | $ | 86,649 | |||
| Accounts receivable | 55,546 | 85,242 | |||||
| Derivative instruments | 29,574 | 7,582 | |||||
| Inventory | 7,648 | 10,952 | |||||
| Prepaid expenses | 5,054 | 4,587 | |||||
| Total current assets | 259,897 | 195,012 | |||||
| Crude oil and natural gas properties, using the successful efforts method of accounting: | |||||||
| Proved properties | 4,477,368 | 3,959,545 | |||||
| Unproved properties | 59,285 | 70,868 | |||||
| Accumulated depletion, depreciation and amortization | (1,606,217 | ) | (1,184,684 | ) | |||
| Total crude oil and natural gas properties, net | 2,930,436 | 2,845,729 | |||||
| Other property and equipment, net | 3,012 | 3,201 | |||||
| Derivative instruments | 4,197 | — | |||||
| Other noncurrent assets | 16,172 | 19,346 | |||||
| Total assets | $ | 3,213,714 | $ | 3,063,288 | |||
| Current liabilities: | |||||||
| Current portion of long-term debt | $ | 60,000 | $ | 120,000 | |||
| Accounts payable – trade | 84,313 | 74,011 | |||||
| Accrued capital expenditures | 30,921 | 35,170 | |||||
| Revenues and royalties payable | 30,665 | 26,838 | |||||
| Other accrued liabilities | 20,927 | 22,196 | |||||
| Advances from joint interest owners | 2,205 | 316 | |||||
| Operating leases | 845 | 719 | |||||
| Derivative instruments | 380 | 5,380 | |||||
| Total current liabilities | 230,256 | 284,630 | |||||
| Noncurrent liabilities: | |||||||
| Long-term debt, net | 1,132,807 | 928,384 | |||||
| Deferred income taxes | 239,636 | 232,398 | |||||
| Asset retirement obligations | 15,944 | 14,750 | |||||
| Derivative instruments | 360 | — | |||||
| Operating leases | 142 | 670 | |||||
| Stockholders’ equity | |||||||
| Common stock | 13 | 13 | |||||
| Additional paid-in capital | 1,162,007 | 1,166,609 | |||||
| Retained earnings | 432,549 | 435,834 | |||||
| Total stockholders’ equity | 1,594,569 | 1,602,456 | |||||
| Total liabilities and stockholders’ equity | $ | 3,213,714 | $ | 3,063,288 | |||
| HighPeak Energy, Inc. Unaudited Condensed Consolidated Statements of Operations (in thousands) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Operating revenues: | ||||||||||||||||
| Crude oil sales | $ | 152,057 | $ | 232,881 | $ | 785,977 | $ | 1,060,476 | ||||||||
| NGL and natural gas sales | 13,782 | 16,068 | 77,382 | 56,699 | ||||||||||||
| Total operating revenues | 165,839 | 248,949 | 863,359 | 1,117,175 | ||||||||||||
| Operating costs and expenses: | ||||||||||||||||
| Crude oil and natural gas production | 36,892 | 33,762 | 139,492 | 132,244 | ||||||||||||
| Gathering, processing and transportation | 17,591 | 14,143 | 68,401 | 47,761 | ||||||||||||
| Production and ad valorem taxes | (335 | ) | 13,267 | 37,224 | 59,677 | |||||||||||
| Exploration and abandonments | 13,034 | 449 | 16,685 | 1,476 | ||||||||||||
| Depletion, depreciation and amortization | 110,589 | 105,631 | 421,776 | 500,752 | ||||||||||||
| Accretion of discount | 290 | 244 | 1,075 | 966 | ||||||||||||
| General and administrative | 3,925 | 6,001 | 25,270 | 20,392 | ||||||||||||
| Stock-based compensation | 177 | 1,375 | 619 | 12,701 | ||||||||||||
| Total operating costs and expenses | 182,163 | 174,872 | 710,542 | 775,969 | ||||||||||||
| Other expense | 125 | 390 | 2,836 | 3,795 | ||||||||||||
| (Loss) income from operations | (16,449 | ) | 73,687 | 149,981 | 337,411 | |||||||||||
| Interest and other income | 1,511 | 1,721 | 3,847 | 8,685 | ||||||||||||
| Interest expense | (36,586 | ) | (39,508 | ) | (147,136 | ) | (168,712 | ) | ||||||||
| Gain (loss) on derivative instruments, net | 19,481 | (23,053 | ) | 44,913 | (46,464 | ) | ||||||||||
| Loss on extinguishment of debt | — | — | (25,437 | ) | — | |||||||||||
| (Loss) income before income taxes | (32,043 | ) | 12,847 | 26,168 | 130,920 | |||||||||||
| Provision for income taxes | (6,830 | ) | 3,866 | 7,205 | 35,851 | |||||||||||
| Net (loss) income | $ | (25,213 | ) | $ | 8,981 | $ | 18,963 | $ | 95,069 | |||||||
| (Loss) earnings per share: | ||||||||||||||||
| Basic net (loss) income | $ | (0.21 | ) | $ | 0.07 | $ | 0.13 | $ | 0.69 | |||||||
| Diluted net (loss) income | $ | (0.21 | ) | $ | 0.06 | $ | 0.14 | $ | 0.67 | |||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 125,265 | 124,348 | 125,265 | 125,281 | ||||||||||||
| Diluted | 125,265 | 128,073 | 125,330 | 129,205 | ||||||||||||
| Dividends declared per share | $ | 0.04 | $ | 0.04 | $ | 0.16 | $ | 0.16 | ||||||||
| HighPeak Energy, Inc. | |||||||
| Unaudited Condensed Consolidated Statements of Cash Flows | |||||||
| (in thousands) | |||||||
| Year Ended December 31, | |||||||
| 2025 | 2024 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
| Net income | $ | 18,963 | $ | 95,069 | |||
| Adjustments to reconcile net income to net cash provided by operations: | |||||||
| Provision for deferred income taxes | 7,239 | 35,330 | |||||
| Loss on extinguishment of debt | 25,437 | — | |||||
| (Gain) loss on derivative instruments | (44,913 | ) | 44,464 | ||||
| Cash received (paid) on settlement of derivative instruments | 14,084 | (14,246 | ) | ||||
| Amortization of debt issuance costs | 5,881 | 8,278 | |||||
| Amortization of discounts on long-term debt | 5,714 | 9,865 | |||||
| Stock-based compensation expense | 619 | 12,701 | |||||
| Accretion expense | 1,075 | 966 | |||||
| Depletion, depreciation and amortization | 421,776 | 500,752 | |||||
| Exploration and abandonment expense | 15,413 | 620 | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | 29,697 | 9,347 | |||||
| Prepaid expenses, inventory and other assets | 5,635 | (19,474 | ) | ||||
| Accounts payable, accrued liabilities and other current liabilities | 4,977 | 4,719 | |||||
| Net cash provided by operating activities | 511,597 | 690,391 | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
| Additions to crude oil and natural gas properties | (515,379 | ) | (604,828 | ) | |||
| Changes in working capital associated with crude oil and natural gas property additions | 6,250 | (1,294 | ) | ||||
| Acquisitions of crude oil and natural gas properties | (6,724 | ) | (14,844 | ) | |||
| Proceeds from sales of properties | 570 | 339 | |||||
| Other property additions | (54 | ) | (216 | ) | |||
| Net cash used in investing activities | (515,337 | ) | (620,843 | ) | |||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
| Borrowings under Term Loan Credit Agreement | 180,000 | — | |||||
| Repayments under Term Loan Credit Agreement | (60,000 | ) | (120,000 | ) | |||
| Borrowings under Senior Credit Facility Agreement | 30,000 | — | |||||
| Repayments under Senior Credit Facility Agreement | (30,000 | ) | — | ||||
| Dividends paid | (20,910 | ) | (20,058 | ) | |||
| Debt issuance costs | (7,859 | ) | (58 | ) | |||
| Cash paid for tax withholding on vested equity awards | (5,067 | ) | — | ||||
| Premium on extinguishment of debt | (4,750 | ) | — | ||||
| Dividend equivalents paid | (2,094 | ) | (2,133 | ) | |||
| Stock offering costs | (155 | ) | — | ||||
| Proceeds from exercise of warrants | 1 | 1 | |||||
| Repurchased shares under buyback program | — | (35,166 | ) | ||||
| Net cash provided by (used in) financing activities | 79,166 | (177,414 | ) | ||||
| Net increase (decrease) in cash and cash equivalents | 75,426 | (107,866 | ) | ||||
| Cash and cash equivalents, beginning of period | 86,649 | 194,515 | |||||
| Cash and cash equivalents, end of period | $ | 162,075 | $ | 86,649 | |||
| HighPeak Energy, Inc. | ||||||||||||||||
| Unaudited Summary Operating Highlights | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Average Daily Sales Volumes: | ||||||||||||||||
| Crude oil (Bbls) | 28,039 | 35,926 | 32,911 | 37,914 | ||||||||||||
| NGLs (Bbls) | 8,249 | 7,289 | 7,931 | 6,2414 | ||||||||||||
| Natural gas (Mcf) | 44,350 | 42,007 | 44,733 | 34,828 | ||||||||||||
| Total (Boe) | 43,680 | 50,216 | 48,297 | 49,960 | ||||||||||||
| Average Realized Prices (excluding effects of derivatives): | ||||||||||||||||
| Crude oil per Bbl | $ | 58.95 | $ | 70.46 | $ | 65.43 | $ | 76.42 | ||||||||
| NGL per Bbl | $ | 17.26 | $ | 22.30 | $ | 19.69 | $ | 22.06 | ||||||||
| Natural gas per Mcf | $ | 0.17 | $ | 0.29 | $ | 1.25 | $ | 0.49 | ||||||||
| Total per Boe | $ | 41.27 | $ | 53.89 | $ | 48.98 | $ | 61.10 | ||||||||
| Margin Data ($ per Boe, excluding effects of derivatives): | ||||||||||||||||
| Average price | $ | 41.27 | $ | 53.89 | $ | 48.98 | $ | 61.10 | ||||||||
| Lease operating costs | (7.46 | ) | (6.81 | ) | (6.78 | ) | (6.76 | ) | ||||||||
| Expense workovers | (1.72 | ) | (0.50 | ) | (1.13 | ) | (0.47 | ) | ||||||||
| Gathering, processing & transportation expenses | (4.38 | ) | (3.06 | ) | (3.88 | ) | (2.61 | ) | ||||||||
| Production and ad valorem taxes | 0.08 | (2.87 | ) | (2.11 | ) | (3.26 | ) | |||||||||
| General & administrative expenses | (0.98 | ) | (1.30 | ) | (1.43 | ) | (1.12 | ) | ||||||||
| $ | 26.81 | $ | 39.35 | $ | 33.65 | $ | 46.88 | |||||||||
| HighPeak Energy, Inc. | ||||||||||||||||
| Unaudited Earnings Per Share Details | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net (loss) income as reported | $ | (25,213 | ) | $ | 8,981 | $ | 18,963 | $ | 95,069 | |||||||
| Participating basic earnings | (502 | ) | (861 | ) | (2,094 | ) | (9,155 | ) | ||||||||
| Basic (losses) earnings attributable to common shareholders | (25,715 | ) | 8,120 | 16,869 | 85,914 | |||||||||||
| Reallocation of participating earnings | — | 5 | 302 | 108 | ||||||||||||
| Diluted net (loss) income attributable to common shareholders | $ | (25,715 | ) | $ | 8,125 | $ | 17,171 | $ | 86,022 | |||||||
| Basic weighted average shares outstanding | 125,265 | 124,348 | 125,265 | 125,281 | ||||||||||||
| Dilutive warrants and unvested stock options | — | 1,571 | — | 1,770 | ||||||||||||
| Dilutive unvested restricted stock | — | 2,154 | 65 | 2,154 | ||||||||||||
| Diluted weighted average shares outstanding | 125,265 | 128,073 | 125,330 | 129,205 | ||||||||||||
| Net (loss) income per share attributable to common shareholders: | ||||||||||||||||
| Basic | $ | (0.21 | ) | $ | 0.07 | $ | 0.13 | $ | 0.69 | |||||||
| Diluted | $ | (0.21 | ) | $ | 0.06 | $ | 0.14 | $ | 0.67 | |||||||
| 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, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net (loss) income | $ | (25,213 | ) | $ | 8,981 | $ | 18,963 | $ | 95,069 | |||||||
| Interest expense | 36,586 | 39,508 | 147,136 | 168,712 | ||||||||||||
| Interest and other income | (1,511 | ) | (1,721 | ) | (3,847 | ) | (8,685 | ) | ||||||||
| Provision for income taxes | (6,830 | ) | 3,866 | 7,205 | 35,851 | |||||||||||
| Depletion, depreciation and amortization | 110,589 | 105,631 | 421,776 | 500,752 | ||||||||||||
| Accretion of discount | 290 | 244 | 1,075 | 966 | ||||||||||||
| Exploration and abandonment expense | 13,034 | 449 | 16,685 | 1,476 | ||||||||||||
| Stock based compensation | 177 | 1,375 | 619 | 12,701 | ||||||||||||
| Derivative related noncash activity | (13,385 | ) | 20,704 | (30,829 | ) | 32,218 | ||||||||||
| Loss on extinguishment of debt | — | — | 25,437 | — | ||||||||||||
| Other expense | 125 | 390 | 2,836 | 3,795 | ||||||||||||
| EBITDAX | 113,862 | 179,427 | 607,056 | 842,855 | ||||||||||||
| Cash interest expense | (35,920 | ) | (34,949 | ) | (135,541 | ) | (150,569 | ) | ||||||||
| Other (a) | 889 | 1,682 | (227 | ) | 3,513 | |||||||||||
| Discretionary cash flow | 78,831 | 146,160 | 471,288 | 695,799 | ||||||||||||
| Changes in operating assets and liabilities | 14,262 | (6,642 | ) | 40,309 | (5,408 | ) | ||||||||||
| Net cash provided by operating activities | $ | 93,093 | $ | 139,518 | $ | 511,597 | $ | 690,391 | ||||||||
| (a) includes interest and other income net of current tax expense, other expense and operating portion of exploration and abandonment expenses. | ||||||||||||||||
| HighPeak Energy, Inc. | ||||||||||||||||
| Unaudited Reconciliation of Net Cash Provided by Operations and Free Cash Flow (in thousands) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net cash provided by operating activities | $ | 93,093 | $ | 139,518 | $ | 511,597 | $ | 690,391 | ||||||||
| Add back net change in operating assets and liabilities | (14,262 | ) | 6,642 | (40,309 | ) | 5,408 | ||||||||||
| Operating cash flow before working capital changes | 78,831 | 146,160 | 471,288 | 695,799 | ||||||||||||
| Additions to crude oil and natural gas properties | (120,984 | ) | (152,680 | ) | (515,379 | ) | (604,828 | ) | ||||||||
| Changes in working capital associated with crude oil and natural gas property additions | 34,723 | 11,920 | 6,250 | (1,294 | ) | |||||||||||
| Free cash flow | $ | (7,430 | ) | $ | 5,400 | $ | (37,841 | ) | $ | 89,677 | ||||||
| HighPeak Energy, Inc. | |||
| Unaudited Reconciliation of Standardized Measure to PV-10 | |||
| (in thousands) | |||
| As of December 31, 2025 | Total Proved | ||
| Standardized measure | $ | 1,912,755 | |
| Present value of future income taxes and certain abandonment costs discounted at | 144,242 | ||
| Present value of estimated future cash flows (PV-10) | $ | 2,056,997 | |
| HighPeak Energy, Inc. | |||
| Unaudited Change in Reserves | |||
| MBoe | |||
| Proved Reserves on December 31, 2024 | 198,998 | ||
| Extensions, discoveries and revisions | (7,457 | ) | |
| Sales of reserves-in-place | (22 | ) | |
| Production | (17,628 | ) | |
| Proved Reserves on December 31, 2025 | 173,891 | ||
Investor Contact:
Ryan Hightower
Executive Vice President
817.850.9204
rhightower@highpeakenergy.com
Source: HighPeak Energy, Inc.
