HighPeak Energy, Inc. Announces Second Quarter 2025 Financial and Operating Results
HighPeak Energy (NASDAQ: HPK) reported Q2 2025 financial results with sales volumes averaging 48.6 MBoe/d, remaining flat year-over-year. The company posted net income of $26.2 million ($0.19 per diluted share) and EBITDAX of $156.0 million ($1.12 per diluted share).
Key developments include material amendments to credit agreements, extending maturities to September 2028 and upsizing Term Loan to $1.2 billion. The company declared a quarterly dividend of $0.04 per share. HighPeak's Q2 capital expenditures decreased by over 30% to $125.4 million, operating with one drilling rig and completing 14 wells.
The company significantly enhanced its hedging position through March 2027, implementing a combination of swaps and collars to protect against commodity price volatility.
HighPeak Energy (NASDAQ: HPK) ha comunicato i risultati finanziari del 2° trimestre 2025, con volumi medi di vendita pari a 48.6 MBoe/d, invariati rispetto all'anno precedente. La società ha riportato un utile netto di $26.2 million (pari a $0.19 per azione diluita) e un EBITDAX di $156.0 million (pari a $1.12 per azione diluita).
Tra gli sviluppi principali figurano modifiche rilevanti agli accordi di credito, con estensione delle scadenze a settembre 2028 e aumento del Term Loan a $1.2 billion. L'azienda ha dichiarato un dividendo trimestrale di $0.04 per share. I capitali investiti da HighPeak nel 2° trimestre sono diminuiti di oltre il 30%, attestandosi a $125.4 million; l'attività è stata svolta con una sola piattaforma di perforazione e il completamento di 14 pozzi.
La società ha inoltre rafforzato significativamente la propria copertura fino a marzo 2027, adottando una combinazione di swap e collar per proteggersi dalla volatilità dei prezzi delle commodity.
HighPeak Energy (NASDAQ: HPK) presentó resultados financieros del 2T 2025 con volúmenes de ventas promedio de 48.6 MBoe/d, sin variación interanual. La compañía registró un beneficio neto de $26.2 million ($0.19 por acción diluida) y un EBITDAX de $156.0 million ($1.12 por acción diluida).
Entre los hitos clave se incluyen enmiendas materiales a los acuerdos de crédito, extendiendo los vencimientos hasta septiembre de 2028 y ampliando el Term Loan a $1.2 billion. La compañía declaró un dividendo trimestral de $0.04 por acción. Los gastos de capital de HighPeak en el 2T se redujeron más del 30% hasta $125.4 million, operando con una única plataforma de perforación y completando 14 pozos.
La empresa reforzó significativamente su posición de cobertura hasta marzo de 2027, implementando una combinación de swaps y collars para protegerse frente a la volatilidad de los precios de las materias primas.
HighPeak Energy (NASDAQ: HPK)는 2025년 2분기 실적을 발표했으며, 판매량은 일평균 48.6 MBoe/d로 전년 수준을 유지했습니다. 회사는 순이익 $26.2 million(희석주당 $0.19)과 EBITDAX $156.0 million(희석주당 $1.12)를 기록했습니다.
주요 사항으로는 신용계약에 대한 중대한 수정이 있어 만기를 2028년 9월까지 연장하고 Term Loan을 $1.2 billion으로 증액한 점이 포함됩니다. 회사는 분기 배당금으로 $0.04 per share를 선언했습니다. 2분기 자본적 지출은 30% 이상 감소한 $125.4 million로, 시추 장비 1대를 운영하며 14개의 유정을 완공했습니다.
또한 회사는 2027년 3월까지 헤지 포지션을 크게 강화해 가격 변동성에 대비하기 위해 스왑과 콜라(collars)를 조합해 적용했습니다.
HighPeak Energy (NASDAQ: HPK) a publié ses résultats du T2 2025 avec des volumes de ventes moyens de 48.6 MBoe/d, stables d'une année sur l'autre. La société a enregistré un bénéfice net de $26.2 million (0,19 $ par action diluée) et un EBITDAX de $156.0 million (1,12 $ par action diluée).
Parmi les faits marquants figurent des avenants significatifs aux contrats de crédit, prolongeant les échéances jusqu'en septembre 2028 et augmentant le Term Loan à $1.2 billion. La société a déclaré un dividende trimestriel de $0.04 per share. Les dépenses d'investissement de HighPeak au T2 ont diminué de plus de 30 %, à $125.4 million ; l'activité s'est déroulée avec une seule plate-forme de forage et 14 puits ont été terminés.
La société a par ailleurs renforcé sensiblement sa position de couverture jusqu'en mars 2027, en mettant en place une combinaison de swaps et de collars pour se protéger contre la volatilité des prix des matières premières.
HighPeak Energy (NASDAQ: HPK) veröffentlichte die Ergebnisse für Q2 2025 mit durchschnittlichen Absatzmengen von 48.6 MBoe/d, unverändert zum Vorjahr. Das Unternehmen erzielte einen Nettogewinn von $26.2 million (je verwässerter Aktie $0.19) und ein EBITDAX von $156.0 million (je verwässerter Aktie $1.12).
Zu den wesentlichen Entwicklungen gehören materielle Änderungen der Kreditvereinbarungen, die die Fälligkeiten bis September 2028 verlängern, sowie eine Aufstockung des Term Loan auf $1.2 billion. Das Unternehmen hat eine Quartalsdividende von $0.04 per share angekündigt. Die Investitionsausgaben (CapEx) von HighPeak im zweiten Quartal sanken um mehr als 30% auf $125.4 million; das Unternehmen arbeitete mit einem Bohrgerät und schloss 14 Bohrungen ab.
Darüber hinaus hat das Unternehmen seine Absicherungsposition bis März 2027 deutlich verbessert und hierfür eine Kombination aus Swaps und Collars eingesetzt, um sich gegen Rohstoffpreisvolatilität zu schützen.
- Term Loan and RCF maturities extended to September 2028, improving financial flexibility
- Term Loan upsized to $1.2 billion, providing additional liquidity
- Lease operating expenses decreased 1% to $6.55 per Boe quarter-over-quarter
- Capital expenditures reduced by over 30% compared to Q1 2025
- Significant hedging program implemented through March 2027 to minimize downside risk
- Sales volumes remained flat year-over-year at 48.6 MBoe/d
- Reduced drilling activity to one rig in May 2025
- Net income of $26.2 million represents relatively modest profitability given production scale
- Quarterly dividend remains low at $0.04 per share
Insights
HighPeak's Q2 results show flat production, improved cash costs, and significantly enhanced debt flexibility with term loan amendments.
HighPeak Energy delivered a solid second quarter with production holding steady at 48.6 MBoe/d despite dropping to a single drilling rig in May. The company generated
The most significant development is the amendment and extension of HighPeak's debt facilities. The company successfully extended both its Term Loan and Senior Credit Facility to September 2028, while upsizing the Term Loan to
On the operational front, lease operating expenses improved to
Capital discipline is evident with Q2 capex of
With its maintenance drilling program now in effect and major efficiency projects complete, HighPeak appears positioned to generate stronger free cash flow in coming quarters, giving it options to further strengthen its balance sheet as its floating-rate term loan structure potentially benefits from anticipated interest rate reductions.
FORT WORTH, Texas, Aug. 11, 2025 (GLOBE NEWSWIRE) -- HighPeak Energy, Inc. (“HighPeak” or the “Company”) (NASDAQ: HPK) today announced financial and operating results for the quarter ended June 30, 2025.
Second Quarter 2025 Highlights
- Sales volumes averaged approximately 48.6 thousand barrels of crude oil equivalent per day (“MBoe/d”), remaining essentially flat from the same period a year ago after dropping down to one drilling rig in May 2025.
- Net income was
$26.2 million , or$0.19 per diluted share and EBITDAX (a non-GAAP financial measure defined and reconciled below) was$156.0 million , or$1.12 per diluted share. - Lease operating expenses averaged
$6.55 per Boe, excluding workover expenses, representing a1% decrease compared with the first quarter of 2025.
Recent Events
- On August 4, 2025, the Company announced material amendments to the Term Loan Credit Agreement (“Term Loan”) and Senior Credit Facility Agreement (“Super Priority RCF”) including:
- Extended the maturity dates of both agreements to September 2028.
- Upsized the borrowings under the Term Loan to
$1.2 billion , providing additional liquidity to the Company. - Amended certain covenants of the Term Loan including deferring mandatory amortization payments of
$30 million per quarter until September 30, 2026.
- Additional key benefits to the amended and extended Term Loan include:
- The call protection provision remains unchanged, expiring in September 2025, providing the Company with significant flexibility to pay down the Term Loan at par, in whole or in part, at any time.
- The floating interest rate structure allows the Company to benefit from anticipated lower interest rates over the remaining term of the Term Loan.
- On August 11, 2025, the Company’s Board of Directors declared a quarterly dividend of
$0.04 per common share outstanding payable in September 2025.
Statement from Jack Hightower, Chairman and CEO:
We are deeply grateful for the unwavering support of our investors, whose confidence in our vision has enabled us to execute the strategic initiative of amending and extending our current Term Loan and RCF. This amendment and extension, coupled with our proactive hedging strategy, positions HighPeak to capitalize on future opportunities while maintaining a strong and adaptable financial foundation.
With consensus projections of lower interest rates over the next few years, our term loan provides the Company with substantial flexibility and optionality going forward rather than issuing a high-yield, fixed-rate public bond. The amendment and extension of the term loan significantly increases our capital structure flexibility, increases liquidity, minimizes refinancing costs and provides the ability to pay down the term loan at par. We have also hedged a significant amount of our production for the next 18 months, thus minimizing HighPeak’s exposure to downside risk if commodity prices decline as we move forward.
Second Quarter 2025 Operational Update
HighPeak’s sales volumes during the second quarter of 2025 averaged 48.6 MBoe/d. Second quarter sales volumes consisted of approximately
The Company averaged one drilling rig and one frac crew during the second quarter, drilled 13 gross (13.0 net) horizontal wells and turned-in-line 14 gross (14.0 net) producing wells and placed 2 gross (2.0 net) salt-water disposal wells in operation. On June 30, 2025, the Company had 20 gross (20.0 net) horizontal wells in various stages of drilling and completion.
HighPeak President, Michael Hollis, commented, “According to plan, our capital expenditures were heavily weighted toward the first part of the year, tapering off during the second quarter. Now with several efficiency-based projects complete and our maintenance drilling program in effect, we will continue to operate with capital discipline to preserve financial flexibility in this dynamic economic environment.”
Second Quarter 2025 Financial Results
HighPeak reported net income of
Second quarter average realized prices were
HighPeak’s total capital expenditures, excluding acquisitions, for the second quarter of 2025 were
Hedging
Subsequent to quarter end, the Company entered into additional crude oil derivative contracts covering a significant portion of its forecasted production through March 2027.
Crude oil. Including the derivative instruments entered into to date, HighPeak has the following outstanding crude oil derivative instruments and the weighted average crude oil prices and premiums payable per barrel (“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: | |||||||||||||||||||||
| Jul – Sep | 2025 | Swap | 3,000 | WTI Cushing | $ | 75.85 | $ | — | $ | — | $ | — | |||||||||
| Jul – Sep | 2025 | Collar | 7,000 | WTI Cushing | $ | — | $ | 65.00 | $ | 90.08 | $ | 2.28 | |||||||||
| Jul – Sep | 2025 | Put | 9,000 | WTI Cushing | $ | — | $ | 65.78 | $ | — | $ | 5.00 | |||||||||
| Oct – Dec | 2025 | Swap | 1,800 | WTI Cushing | $ | 63.77 | $ | — | $ | — | $ | — | |||||||||
| Oct – Dec | 2025 | Collar | 15,850 | WTI Cushing | $ | — | $ | 60.53 | $ | 69.65 | $ | — | |||||||||
| Jan – Mar | 2026 | Swap | 1,000 | WTI Cushing | $ | 63.25 | $ | — | $ | — | $ | — | |||||||||
| Jan – Mar | 2026 | Collar | 14,350 | WTI Cushing | $ | — | $ | 60.58 | $ | 69.92 | $ | — | |||||||||
| Apr – Jun | 2026 | Swap | 1,000 | WTI Cushing | $ | 63.25 | $ | — | $ | — | $ | — | |||||||||
| Apr – Jun | 2026 | Collar | 12,350 | WTI Cushing | $ | — | $ | 59.87 | $ | 66.82 | $ | — | |||||||||
| Jul – Sep | 2026 | Swap | 1,000 | WTI Cushing | $ | 63.25 | $ | — | $ | — | $ | — | |||||||||
| Jul – Sep | 2026 | Collar | 12,000 | WTI Cushing | $ | — | $ | 59.83 | $ | 66.84 | $ | — | |||||||||
| Oct – Dec | 2026 | Swap | 1,000 | WTI Cushing | $ | 63.25 | $ | — | $ | — | $ | — | |||||||||
| Oct – Dec | 2026 | Collar | 9,800 | WTI Cushing | $ | — | $ | 59.80 | $ | 65.31 | $ | — | |||||||||
| Jan – Mar | 2027 | Swap | 1,000 | WTI Cushing | $ | 63.25 | $ | — | $ | — | $ | — | |||||||||
| Jan – Mar | 2027 | Collar | 8,900 | WTI Cushing | $ | — | $ | 59.78 | $ | 65.24 | $ | — | |||||||||
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.
Natural gas. The Company has 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: | |||||||||||
| Jul – Sep | 2025 | Swap | 30,000 | HH | $ | 4.43 | |||||
| Oct – Dec | 2025 | Swap | 30,000 | HH | $ | 4.43 | |||||
| Jan – Mar | 2026 | Swap | 30,000 | HH | $ | 4.39 | |||||
| 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 second quarter of 2025, HighPeak’s Board of Directors approved a quarterly dividend of
Warrants
The Company’s outstanding warrants (NASDAQ: HPKEW) which enable the warrant holders to purchase one share of common stock for
Conference Call
HighPeak will host a conference call and webcast on Tuesday, August 12, 2025, at 10:00 a.m. Central Time for investors and analysts to discuss its results for the second 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.
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, political instability or armed conflicts in crude or natural gas producing regions such as the ongoing war between Russia and Ukraine or Israel and Hamas, 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 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) | |||||||
| June 30, 2025 | December 31, 2024 | ||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 21,853 | $ | 86,649 | |||
| Accounts receivable | 71,425 | 85,242 | |||||
| Derivative instruments | 17,323 | 7,582 | |||||
| Inventory | 6,823 | 10,952 | |||||
| Prepaid expenses | 4,792 | 4,587 | |||||
| Total current assets | 122,216 | 195,012 | |||||
| Crude oil and natural gas properties, using the successful efforts method of accounting: | |||||||
| Proved properties | 4,268,981 | 3,959,545 | |||||
| Unproved properties | 69,908 | 70,868 | |||||
| Accumulated depletion, depreciation and amortization | (1,395,115 | ) | (1,184,684 | ) | |||
| Total crude oil and natural gas properties, net | 2,943,774 | 2,845,729 | |||||
| Other property and equipment, net | 3,081 | 3,201 | |||||
| Derivative instruments | 1,813 | — | |||||
| Other noncurrent assets | 18,569 | 19,346 | |||||
| Total assets | $ | 3,089,453 | $ | 3,063,288 | |||
| Current liabilities: | |||||||
| Current portion of long-term debt | $ | — | $ | 120,000 | |||
| Accounts payable – trade | 64,291 | 74,011 | |||||
| Revenues and royalties payable | 27,499 | 26,838 | |||||
| Other accrued liabilities | 24,176 | 22,196 | |||||
| Accrued capital expenditures | 22,443 | 35,170 | |||||
| Derivative instruments | 1,364 | 5,380 | |||||
| Operating leases | 912 | 719 | |||||
| Advances from joint interest owners | — | 316 | |||||
| Total current liabilities | 140,685 | 284,630 | |||||
| Noncurrent liabilities: | |||||||
| Long-term debt, net | 1,027,354 | 928,384 | |||||
| Deferred income taxes | 250,000 | 232,398 | |||||
| Asset retirement obligations | 15,414 | 14,750 | |||||
| Derivative instruments | 1,392 | — | |||||
| Operating leases | 522 | 670 | |||||
| Stockholders’ equity | |||||||
| Common stock | 13 | 13 | |||||
| Additional paid-in capital | 1,166,875 | 1,166,609 | |||||
| Retained earnings | 487,198 | 435,834 | |||||
| Total stockholders’ equity | 1,654,086 | 1,602,456 | |||||
| Total liabilities and stockholders’ equity | $ | 3,089,453 | $ | 3,063,288 | |||
| HighPeak Energy, Inc. | |||||||||||||||
| Unaudited Condensed Consolidated Statements of Operations | |||||||||||||||
| (in thousands) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Operating revenues: | |||||||||||||||
| Crude oil sales | $ | 196,723 | $ | 274,590 | $ | 443,147 | $ | 556,959 | |||||||
| NGL and natural gas sales | 3,677 | 676 | 14,701 | 6,071 | |||||||||||
| Total operating revenues | 200,400 | 275,266 | 457,848 | 563,030 | |||||||||||
| Operating costs and expenses: | |||||||||||||||
| Crude oil and natural gas production | 33,726 | 32,798 | 69,288 | 63,069 | |||||||||||
| Production and ad valorem taxes | 12,391 | 16,596 | 27,543 | 30,998 | |||||||||||
| Exploration and abandonments | 1,109 | 167 | 1,373 | 665 | |||||||||||
| Depletion, depreciation and amortization | 101,226 | 127,693 | 210,551 | 258,543 | |||||||||||
| Accretion of discount | 256 | 242 | 500 | 481 | |||||||||||
| General and administrative | 5,671 | 4,735 | 12,016 | 9,420 | |||||||||||
| Stock-based compensation | 88 | 3,775 | 265 | 7,573 | |||||||||||
| Total operating costs and expenses | 154,467 | 186,006 | 321,536 | 370,749 | |||||||||||
| Other expense | 2,489 | 2,000 | 2,489 | 2,001 | |||||||||||
| Income from operations | 43,444 | 87,260 | 133,823 | 190,280 | |||||||||||
| Interest and other income | 361 | 2,400 | 1,171 | 4,792 | |||||||||||
| Interest expense | (36,412 | ) | (42,991 | ) | (73,400 | ) | (86,625 | ) | |||||||
| Gain (loss) on derivative instruments, net | 26,446 | (2,702 | ) | 18,519 | (55,745 | ) | |||||||||
| Income before income taxes | 33,839 | 43,967 | 80,113 | 52,702 | |||||||||||
| Provision for income taxes | 7,663 | 14,250 | 17,602 | 16,547 | |||||||||||
| Net income | $ | 26,176 | $ | 29,717 | $ | 62,511 | $ | 36,155 | |||||||
| Earnings per share: | |||||||||||||||
| Basic net income | $ | 0.19 | $ | 0.21 | $ | 0.46 | $ | 0.26 | |||||||
| Diluted net income | $ | 0.19 | $ | 0.21 | $ | 0.45 | $ | 0.25 | |||||||
| Weighted average shares outstanding: | |||||||||||||||
| Basic | 123,930 | 125,341 | 123,922 | 125,341 | |||||||||||
| Diluted | 126,095 | 129,248 | 126,169 | 129,265 | |||||||||||
| Dividends declared per share | $ | 0.04 | $ | 0.04 | $ | 0.08 | $ | 0.08 | |||||||
| HighPeak Energy, Inc. | |||||||
| Unaudited Condensed Consolidated Statements of Cash Flows | |||||||
| (in thousands) | |||||||
| Six Months Ended June 30, | |||||||
| 2025 | 2024 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
| Net income | $ | 62,511 | $ | 36,155 | |||
| Adjustments to reconcile net income to net cash provided by operations: | |||||||
| Provision for deferred income taxes | 17,602 | 15,970 | |||||
| (Gain) loss on derivative instruments | (18,519 | ) | 55,745 | ||||
| Cash received (paid) on settlement of derivative instruments | 4,341 | (10,456 | ) | ||||
| Amortization of debt issuance costs | 4,091 | 4,119 | |||||
| Amortization of discounts on long-term debt | 4,879 | 4,906 | |||||
| Stock-based compensation expense | 265 | 7,573 | |||||
| Accretion expense | 500 | 481 | |||||
| Depletion, depreciation and amortization | 210,551 | 258,543 | |||||
| Exploration and abandonment expense | 859 | 229 | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | 13,817 | 7,038 | |||||
| Prepaid expenses, inventory and other assets | 4,977 | (2,900 | ) | ||||
| Accounts payable, accrued liabilities and other current liabilities | (7,609 | ) | (3,633 | ) | |||
| Net cash provided by operating activities | 298,265 | 373,770 | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
| Additions to crude oil and natural gas properties | (306,157 | ) | (311,897 | ) | |||
| Changes in working capital associated with crude oil and natural gas property additions | (12,907 | ) | (5,226 | ) | |||
| Acquisitions of crude oil and natural gas properties | (3,584 | ) | (7,415 | ) | |||
| Proceeds from sales of properties | 570 | 48 | |||||
| Other property additions | — | (122 | ) | ||||
| Net cash used in investing activities | (322,078 | ) | (324,612 | ) | |||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
| Borrowings under Senior Credit Facility Agreement | 30,000 | — | |||||
| Repayments under Term Loan Credit Agreement | (60,000 | ) | (60,000 | ) | |||
| Dividends paid | (9,922 | ) | (10,086 | ) | |||
| Dividend equivalents paid | (1,062 | ) | (1,068 | ) | |||
| Proceeds from exercise of warrants | 1 | 1 | |||||
| Repurchased shares under buyback program | — | (14,551 | ) | ||||
| Debt issuance costs | — | (58 | ) | ||||
| Net cash used in financing activities | (40,983 | ) | (85,762 | ) | |||
| Net decrease in cash and cash equivalents | (64,796 | ) | (36,604 | ) | |||
| Cash and cash equivalents, beginning of period | 86,649 | 194,515 | |||||
| Cash and cash equivalents, end of period | $ | 21,853 | $ | 157,911 | |||
| HighPeak Energy, Inc. | |||||||||||||||
| Unaudited Summary Operating Highlights | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Average Daily Sales Volumes: | |||||||||||||||
| Crude oil (Bbls) | 33,913 | 37,073 | 36,056 | 38,516 | |||||||||||
| NGLs (Bbls) | 7,462 | 6,018 | 7,592 | 5,583 | |||||||||||
| Natural gas (Mcf) | 43,642 | 32,640 | 43,371 | 30,187 | |||||||||||
| Total (Boe) | 48,649 | 48,531 | 50,876 | 49,130 | |||||||||||
| Average Realized Prices (excluding effects of derivatives): | |||||||||||||||
| Crude oil per Bbl | $ | 63.74 | $ | 81.39 | $ | 67.90 | $ | 79.45 | |||||||
| NGL per Bbl | $ | 20.34 | $ | 20.32 | $ | 22.30 | $ | 22.45 | |||||||
| Natural gas per Mcf | $ | 1.50 | $ | 0.13 | $ | 1.91 | $ | 0.68 | |||||||
| Total per Boe | $ | 45.27 | $ | 62.33 | $ | 49.72 | $ | 62.97 | |||||||
| Margin Data ($ per Boe): | |||||||||||||||
| Average price | $ | 45.27 | $ | 62.33 | $ | 49.72 | $ | 62.97 | |||||||
| Lease operating expenses | (6.55 | ) | (6.79 | ) | (6.58 | ) | (6.54 | ) | |||||||
| Expense workovers | (1.06 | ) | (0.63 | ) | (0.94 | ) | (0.51 | ) | |||||||
| Production and ad valorem taxes | (2.80 | ) | (3.76 | ) | (2.99 | ) | (3.47 | ) | |||||||
| $ | 34.86 | $ | 51.15 | $ | 39.21 | $ | 52.45 | ||||||||
| HighPeak Energy, Inc. | |||||||||||||||
| Unaudited Earnings Per Share Details | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net income as reported | $ | 26,176 | $ | 29,717 | $ | 62,511 | $ | 36,155 | |||||||
| Participating basic earnings | (2,546 | ) | (2,860 | ) | (6,086 | ) | (3,466 | ) | |||||||
| Basic earnings attributable to common shareholders | 23,630 | 26,857 | 56,425 | 32,689 | |||||||||||
| Reallocation of participating earnings | 32 | 36 | 78 | 37 | |||||||||||
| Diluted net income attributable to common shareholders | $ | 23,662 | $ | 26,893 | $ | 56,503 | $ | 32,726 | |||||||
| Basic weighted average shares outstanding | 123,930 | 125,341 | 123,922 | 125,341 | |||||||||||
| Dilutive warrants and unvested stock options | — | 1,753 | 82 | 1,770 | |||||||||||
| Dilutive unvested restricted stock | 2,165 | 2,154 | 2,165 | 2,154 | |||||||||||
| Diluted weighted average shares outstanding | 126,095 | 129,248 | 126,169 | 129,265 | |||||||||||
| Net income per share attributable to common shareholders: | |||||||||||||||
| Basic | $ | 0.19 | $ | 0.21 | $ | 0.46 | $ | 0.26 | |||||||
| Diluted | $ | 0.19 | $ | 0.21 | $ | 0.45 | $ | 0.25 | |||||||
| HighPeak Energy, Inc. | |||||||||||||||
| Unaudited Reconciliation of Net Income to EBITDAX, Discretionary Cash Flow and Net Cash Provided by Operations | |||||||||||||||
| (in thousands) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net income | $ | 26,176 | $ | 29,717 | $ | 62,511 | $ | 36,155 | |||||||
| Interest expense | 36,412 | 42,991 | 73,400 | 86,625 | |||||||||||
| Interest and other income | (361 | ) | (2,400 | ) | (1,171 | ) | (4,792 | ) | |||||||
| Income tax expense | 7,663 | 14,250 | 17,602 | 16,547 | |||||||||||
| Depletion, depreciation and amortization | 101,226 | 127,693 | 210,551 | 258,543 | |||||||||||
| Accretion of discount | 256 | 242 | 500 | 481 | |||||||||||
| Exploration and abandonment expense | 1,109 | 167 | 1,373 | 665 | |||||||||||
| Stock based compensation | 88 | 3,775 | 265 | 7,573 | |||||||||||
| Derivative related noncash activity | (19,034 | ) | (2,606 | ) | (14,178 | ) | 45,289 | ||||||||
| Other expense | 2,489 | 2,000 | 2,489 | 2,001 | |||||||||||
| EBITDAX | 156,024 | 215,829 | 353,342 | 449,087 | |||||||||||
| Cash interest expense | (31,902 | ) | (38,472 | ) | (64,430 | ) | (77,600 | ) | |||||||
| Other (a) | (2,382 | ) | 220 | (1,832 | ) | 1,778 | |||||||||
| Discretionary cash flow | 121,740 | 177,577 | 287,080 | 373,265 | |||||||||||
| Changes in operating assets and liabilities | 19,473 | 24,754 | 11,185 | 505 | |||||||||||
| Net cash provided by operating activities | $ | 141,213 | $ | 202,331 | $ | 298,265 | $ | 373,770 | |||||||
| (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 June 30, | Six Months Ended June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net cash provided by operating activities | $ | 141,213 | $ | 202,331 | $ | 298,265 | $ | 373,770 | |||||||
| Add back net change in operating assets and liabilities | (19,473 | ) | (24,754 | ) | (11,185 | ) | (505 | ) | |||||||
| Operating cash flow before working capital changes | 121,740 | 177,577 | 287,080 | 373,265 | |||||||||||
| Additions to crude oil and natural gas properties | (126,338 | ) | (164,199 | ) | (306,157 | ) | (311,897 | ) | |||||||
| Changes in working capital associated with crude oil and natural gas property additions | (38,079 | ) | (6,931 | ) | (12,907 | ) | (5,226 | ) | |||||||
| Free cash flow | $ | (42,677 | ) | $ | 6,447 | $ | (31,984 | ) | $ | 56,142 | |||||
| HighPeak Energy, Inc. | |||||||||||||||
| Unaudited Reconciliation of Net Income to Adjusted Net Income | |||||||||||||||
| (in thousands, except per share data) | |||||||||||||||
| Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | ||||||||||||||
| Amounts | Amounts per Diluted Share | Amounts | Amounts per Diluted Share | ||||||||||||
| Net income | $ | 26,176 | $ | 0.19 | $ | 62,511 | $ | 0.45 | |||||||
| Noncash derivative gain, net | (19,034 | ) | (0.14 | ) | (14,178 | ) | (0.10 | ) | |||||||
| Other expense | 2,489 | 0.02 | 2,489 | 0.02 | |||||||||||
| Abandoned leasehold and plugging and abandonment expenses | 856 | 0.01 | 860 | 0.01 | |||||||||||
| Stock-based compensation | 88 | 0.00 | 265 | 0.00 | |||||||||||
| Income tax adjustment for above items * | 3,276 | 0.02 | 2,218 | 0.01 | |||||||||||
| Adjusted net income | $ | 13,851 | $ | 0.10 | $ | 54,165 | $ | 0.39 | |||||||
| * Assuming a | |||||||||||||||
Investor Contact:
Ryan Hightower
Vice President, Business Development
817.850.9204
rhightower@highpeakenergy.com
Source: HighPeak Energy, Inc.
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