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Financial Data and Key Metrics Changes - The company reported a 30% decrease in capital expenditures (CapEx) from Q2 2025 due to a deliberate reduction in development activity [5] - Production levels remained consistent with Q2 despite reduced development activity, with only one rig operating throughout Q3 [4][5] - The company successfully amended and extended its term loan, pushing out debt maturities until 2028 and materially increasing liquidity [5] Business Line Data and Key Metrics Changes - The company drilled six wells and turned in line only nine wells during Q3, which is about two-thirds of the activity in Q1 and Q2 [4] - The recent simul frac completion on a six-well pad resulted in cost savings of over $400,000 per well compared to traditional methods, with increased efficiencies noted [6] Market Data and Key Metrics Changes - The company is facing continued weakness in commodity prices and overall market volatility, which has influenced operational decisions [5] - The management indicated that the focus will be on operating within cash flow in a low oil price environment, specifically below $60 per barrel [18] Company Strategy and Development Direction - The company is shifting towards a disciplined operation focused on efficiency and sound business practices, with a commitment to managing cash flow and capital [8][12] - A new independent chairman has been appointed, and the company is restructuring its governance to enhance oversight and accountability [15][26] - The company plans to methodically distribute shares from its private equity partnerships over the next two years to address low float issues [16] Management Comments on Operating Environment and Future Outlook - Management acknowledged high debt levels and the need for a clear long-term plan to rebuild market trust through consistent results [9][12] - The company is committed to generating steady cash flow and paying down debt, with a focus on operational efficiency and cost management [12][26] - Management emphasized the importance of not overdeveloping in a weak market and maintaining a long-term view on value creation [18][25] Other Important Information - The company has established fully independent board committees to strengthen governance and oversight [15][26] - Management is aware of the challenges posed by geographical positioning, cost of capital, and the need to rebuild market confidence [20][21] Q&A Session Summary Question: Can you discuss the leverage plan for 2026 under a $65 scenario? - Management indicated that free cash flow generation will be dictated by oil prices, and they plan to pay down debt at par with no penalty as cash flow allows [30][31] Question: How do hedges fit into your goals? - The company plans to implement a systematic hedging program, aiming for 55%-65% hedged at current prices, while protecting capital and dividends [32][36] Question: Will there be changes in drilling focus based on oil price scenarios? - Management confirmed that drilling will focus on co-development in specific zones, with capital deployment split based on inventory [40][41] Question: How will carryover inventory impact production in 2026? - The company expects to have 16-18 wells in some form of completion rolling into 2026, supporting production forecasts for Q1 and Q2 [48][49] Question: What was the reasoning behind the recent S-3 filing? - The filing was to refresh the previous shelf registration statements, with no intention of issuing new shares soon [52] Question: Can you elaborate on the distribution plan for 2026? - The distribution will be methodical, likely starting early in the year and continuing throughout, with a focus on long-term investment mindsets among limited partners [57]

Q3 2025 Highlights - Production averaged 48 MBoe/D [12] - EBITDAX reached $140 million [12] - Capital expenditures decreased by over 30% from Q2, totaling $86.6 million [12] - Lease operating expenses (LOE) remained consistent with the first half of 2025 at $657 per Boe [12] - Liquidity increased by over $170 million due to extended debt maturities [12] Operational Updates - A second rig was added in mid-October [12] - A second successful simul-frac completion was implemented, resulting in an estimated savings of $25 million [12, 33] Financial Position (as of September 30, 2025) - Cash and cash equivalents stood at $165 million [36] - Total debt amounted to $12 billion [36] - Net debt was $1035 billion [36, 47] - Total liquidity, including RBL availability and cash, was $265 million [37] Hedging - 4Q25 average oil hedged is 177 MBO/d [39]

分组1 - HighPeak Energy reported quarterly earnings of $0.03 per share, missing the Zacks Consensus Estimate of $0.08 per share, and down from $0.35 per share a year ago, representing an earnings surprise of -62.50% [1] - The company posted revenues of $188.86 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 8.39%, and down from $271.58 million year-over-year [2] - HighPeak Energy shares have lost about 57.8% since the beginning of the year, contrasting with the S&P 500's gain of 15.1% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.01 on revenues of $192.85 million, and $0.52 on revenues of $844 million for the current fiscal year [7] - The Zacks Industry Rank for Oil and Gas - Exploration and Production - United States is currently in the bottom 16% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8]

Assets and Production - As of September 30, 2025, HighPeak Energy's assets consisted of approximately 154,650 gross (143,496 net) acres, with 70% held by production and an average working interest of 93%[147] - The Company's liquids production accounted for 85% of total production on a Boe basis for the nine months ended September 30, 2025[169] - The Company completed and placed on production 36 gross (35.7 net) horizontal wells during the nine months ended September 30, 2025[171] Financial Performance - The net loss for the three months ended September 30, 2025, was $18.3 million ($(0.15) per diluted share), a decrease of $68.3 million compared to a net income of $49.9 million for the same period in 2024[164] - Total operating revenues for the three months ended September 30, 2025, decreased by 30% to $188,862,000 compared to $271,578,000 in 2024, and for the nine months, revenues decreased by 23% to $646,710,000 from $834,608,000[174] - EBITDAX for the nine months ended September 30, 2025, was $493.2 million, a decrease from $663.4 million for the same period in 2024[204] Sales and Pricing - For the nine months ended September 30, 2025, approximately 85% of sales volumes were attributable to liquids (crude oil and NGL), while 15% were from natural gas[147] - Average realized price per Boe dropped by 25% to $42.91 for the three months ended September 30, 2025, and by 22% to $47.52 for the nine months[174] - Weighted average realized crude oil prices per Bbl decreased to $65.63 for the three months ended September 30, 2025, from $75.99 in 2024, representing a 14% decline[173] Costs and Expenses - Total costs incurred for the nine months ended September 30, 2025, were $399.1 million, including $290.0 million in development costs and $101.9 million in exploration costs[170] - General and administrative expenses increased by 88% to $9,329,000 for the three months ended September 30, 2025, and by 48% to $21,345,000 for the nine months, primarily due to severance and legal costs related to the former CEO's retirement[181] - Exploration and abandonment expenses increased significantly, with plugging and abandonment costs rising by 844% to $1,482,000 for the three months ended September 30, 2025[178] Debt and Liquidity - In August 2025, the Company amended its Term Loan Credit Agreement, upsizing it to $1.2 billion and deferring quarterly amortization payments of $30 million for one year[150] - The company had $1.2 billion outstanding under the Term Loan Credit Agreement as of September 30, 2025[219] - As of September 30, 2025, the company had zero outstanding balance on the Senior Credit Facility Agreement, indicating a strong liquidity position[196] Strategic Alternatives and Future Plans - The Company is evaluating strategic alternatives to maximize shareholder value, including a potential sale, with Texas Capital Securities retained as a financial advisor[163] - The company expects its sources of funding to be adequate to meet its 2025 planned capital expenditures, although future needs cannot be guaranteed[190] - The company's capital budget for 2025 is expected to be approximately $375 to $405 million for drilling and completion, plus $40 to $50 million for field infrastructure, and $33 to $35 million for one-time infrastructure expenditures[191] Market Conditions and Risks - The ongoing geopolitical tensions and tariffs have introduced significant volatility to the crude oil and natural gas sector, impacting operating and capital costs[157] - HighPeak Energy's financial position is heavily dependent on prevailing commodity prices, which are subject to high volatility and uncertainty[159] - The company is subject to interest rate risk, with a potential annual increase in interest expense of approximately $12.0 million for a 1% increase in interest rates[219] Derivative Instruments - The Company recognized a net derivative gain of $25.4 million during the nine months ended September 30, 2025, including a $17.4 million mark-to-market gain[168] - The company reported a noncash loss on derivative instruments of $17.4 million for the nine months ended September 30, 2025, compared to a gain of $11.5 million in 2024[185] - The company uses commodity derivative instruments to hedge price risk associated with anticipated production, providing partial price protection[212]

Financial Performance - The company reported a net loss of $18.3 million, or ($0.15) per diluted share, while EBITDAX was $139.9 million, or $1.01 per diluted share [5]. - Total operating revenues for Q3 2025 were $188.862 million, a decrease of 30.5% compared to $271.578 million in Q3 2024 [29]. - Crude oil sales in Q3 2025 were $190.773 million, down from $270.636 million in Q3 2024, reflecting a decline of 29.5% [29]. - For the three months ended September 30, 2025, HighPeak Energy reported a net loss of $18.335 million compared to a net income of $49.933 million for the same period in 2024, representing a significant decline [35]. - The diluted net loss per share attributable to common shareholders was $0.15 for Q3 2025, compared to earnings of $0.35 per share in Q3 2024 [35]. - EBITDAX for the three months ended September 30, 2025, was $139.852 million, down from $214.341 million in the same period of 2024, indicating a decrease of approximately 34.7% [37]. - Discretionary cash flow for the three months ended September 30, 2025, was $105.376 million, compared to $176.374 million for the same period in 2024, reflecting a decline of about 40.2% [38]. - Net cash provided by operating activities for the three months ended September 30, 2025, was $120.239 million, down from $177.103 million in Q3 2024, a decrease of approximately 32.2% [38]. - The company reported a free cash flow of $1.572 million for Q3 2025, a significant drop from $28.135 million in Q3 2024 [38]. - The company reported a total of $418.504 million in net cash provided by operating activities for the nine months ended September 30, 2025, compared to $550.873 million for the same period in 2024, a decrease of 24% [31]. Operational Highlights - HighPeak's average sales volumes for Q3 2025 were 47.8 MBoe/d, with approximately 66% being crude oil and 83% liquids [3]. - The company drilled 6 gross (6.0 net) horizontal wells and turned-in-line 9 gross (8.9 net) producing wells during Q3 2025 [4]. - The company picked up a second drilling rig in early October and completed its second simul-frac operation on a six well pad [6]. - Lease operating expenses averaged $6.57 per Boe, consistent with the first half of 2025 [5]. Capital Expenditures and Debt Management - Capital expenditures for Q3 2025 totaled $86.6 million, a reduction of over 30% compared to Q2 2025 [5]. - The company extended all debt maturities to September 2028 and increased liquidity by over $170 million [5]. - Interest expense for the three months ended September 30, 2025, was $37.150 million, compared to $42.579 million in the same period of 2024, showing a decrease of about 12.8% [37]. - The company incurred a loss on extinguishment of debt amounting to $25.437 million in Q3 2025, which contributed positively to adjusted net income calculations [40]. Asset and Equity Position - Total assets increased to $3.205 billion as of September 30, 2025, compared to $3.063 billion as of December 31, 2024, representing a growth of 4.6% [27]. - Current liabilities decreased significantly to $152.693 million from $284.630 million, a reduction of 46.3% [27]. - Total stockholders' equity rose to $1.627 billion as of September 30, 2025, compared to $1.602 billion as of December 31, 2024, an increase of 1.6% [27]. - Cash and cash equivalents increased to $164.913 million at the end of Q3 2025, up from $86.649 million at the beginning of the period, an increase of 90% [30]. Management and Strategic Focus - HighPeak appointed Michael Hollis as permanent CEO and Jason Edgeworth as Chairman of the Board in November 2025 [5]. - The company plans to focus on operational efficiencies and cost management strategies to navigate the current market challenges and improve future performance [42]. Pricing and Market Conditions - The average realized price for crude oil was $65.63 per Bbl, resulting in an overall realized price of $42.91 per Boe, or 66% of the weighted average NYMEX crude oil prices [8]. - Average realized price for crude oil per Bbl in Q3 2025 was $65.63, down from $75.99 in Q3 2024, a decrease of 13.1% [33]. - Average daily crude oil sales volumes decreased to 31,594 Bbls in Q3 2025 from 38,710 Bbls in Q3 2024, a drop of 18.5% [33].

Core Viewpoint HighPeak Energy, Inc. reported its financial and operational results for the third quarter of 2025, highlighting a net loss, management changes, and a focus on improving operational efficiency and financial discipline. Financial Results - HighPeak reported a net loss of $18.3 million for Q3 2025, equating to a loss of $0.15 per diluted share [6][29] - EBITDAX for the quarter was $139.9 million, or $1.01 per diluted share [6][39] - Adjusted net income was $2.9 million, or $0.02 per diluted share [6][43] - Capital expenditures totaled $86.6 million, a reduction of over 30% compared to the previous quarter [7][9] - The company extended all debt maturities to September 2028 and increased liquidity by over $170 million [7] Operational Update - Average sales volumes for Q3 2025 were 47.8 MBoe/d, with approximately 66% being crude oil and 83% liquids [4][34] - The company operated one drilling rig and less than one frac crew, drilling 6 gross (6.0 net) horizontal wells and turning in line 9 gross (8.9 net) producing wells [5] - As of September 30, 2025, HighPeak had 19 gross (19.0 net) horizontal wells in various stages of drilling and completion [5] Management Changes - Michael Hollis was appointed as the permanent Chief Executive Officer, with Jason Edgeworth as Chairman of the Board [7][14] - The management emphasized a commitment to rebuilding trust through consistent results and disciplined operations [3] Dividend Declaration - The Board of Directors declared a quarterly dividend of $0.04 per share, amounting to approximately $5.0 million, payable in December 2025 [7][14] Hedging Activities - As of September 30, 2025, HighPeak had various outstanding crude oil and natural gas derivative instruments, with specific prices and volumes outlined for future settlements [10][11]

Core Viewpoint - HighPeak Energy, Inc. (HPK) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling activity that affects stock prices [4]. Recent Performance of HighPeak Energy - For the fiscal year ending December 2025, HighPeak Energy is expected to earn $0.84 per share, unchanged from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for HighPeak Energy has increased by 31.4%, reflecting a positive outlook for the company [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a "Strong Buy" or "Buy" rating [9][10]. - HighPeak Energy's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Core Viewpoint - HighPeak Energy, Inc. is set to release its third quarter financial and operational results for 2025 on November 5, 2025, after market close [1] Group 1: Financial Results Announcement - HighPeak Energy will announce its 2025 third quarter financial and operating results after the close of trading on November 5, 2025 [1] - A conference call and webcast will be held on November 6, 2025, at 11:00 a.m. Central Time to discuss the financial results and operational highlights [2] Group 2: Company Overview - HighPeak Energy is an independent oil and natural gas company based in Fort Worth, Texas, focusing on the acquisition, development, exploration, and exploitation of oil and natural gas reserves in the Midland Basin of West Texas [3]

Company News - HighPeak Energy announced the retirement of founder Jack Hightower, who served as CEO and Board Chairman, and was the majority owner through the HighPeak Funds [1] Analyst Background - Aaron Chow, known as Elephant Analytics, has over 15 years of analytical experience and is a top-rated analyst on TipRanks, previously co-founding a mobile gaming company that was acquired by PENN Entertainment [2] - Chow focuses on value opportunities and distressed plays, particularly in the energy sector, through the investing group Distressed Value Investing [2]