Core Viewpoint - HighPeak Energy, Inc. reported quarterly earnings of $0.06 per share, missing the Zacks Consensus Estimate of $0.13 per share, and showing a significant decline from $0.66 per share a year ago, indicating a -53.85% earnings surprise [1][2] Financial Performance - The company posted revenues of $234.81 million for the quarter ended December 2024, which was 4.90% below the Zacks Consensus Estimate and down from $301.15 million year-over-year [2] - Over the last four quarters, HighPeak Energy has surpassed consensus EPS estimates only once and topped consensus revenue estimates two times [2] Stock Performance - HighPeak Energy shares have declined approximately 18.7% since the beginning of the year, contrasting with the S&P 500's decline of -1.9% [3] Future Outlook - The company's earnings outlook is mixed, with current consensus EPS estimates at $0.24 for the coming quarter and $1.01 for the current fiscal year, with revenues expected to be $257.96 million and $1.05 billion respectively [7] - The Zacks Rank for HighPeak Energy is currently 3 (Hold), suggesting that shares are expected to perform in line with the market in the near future [6] Industry Context - The Oil and Gas - Exploration and Production - United States industry is currently in the top 13% of Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Reserves and Production - As of December 31, 2024, HighPeak Energy's estimated proved reserves were 198,998 MBoe, with 85% being crude oil and NGL, and 54% developed[40]. - The estimated proved reserves increased from 122,958 MBoe in 2022 to 198,998 MBoe in 2024, reflecting a growth of 61.6%[40]. - As of December 31, 2024, HighPeak Energy's total proved reserves reached 198,998 MBoe, a significant increase from 154,162 MBoe in 2023, representing a growth of approximately 29%[50]. - The company's proved undeveloped reserves increased to 90,879 MBoe as of December 31, 2024, up from 74,569 MBoe in 2023, marking a growth of about 22%[52]. - Extensions and discoveries added 33,540 MBoe of new proved undeveloped locations in 2024, contributing to the overall increase in reserves[55]. - The company plans to develop all proved undeveloped reserves within five years from their initial recording date as of December 31, 2024[54]. - Average net sales volumes for crude oil in 2024 were 13,877 MBbl with an average sales price of $76.42/Bbl, while total average daily sales volumes reached 49,960 Boepd[60]. - Average net sales volumes for natural gas in 2024 were 12,747 MMcf with an average sales price of $0.49/Mcf[60]. - The company drilled 51 productive development wells in 2024, compared to 57 in 2023[68]. - The company drilled 18 exploratory/extension productive wells in 2024, with a net of 14.6, compared to 70 gross and 63.3 net in 2023[68]. Financial Performance - HighPeak Energy plans to fund its anticipated capital expenditures of $448 to $490 million for 2025 through cash on hand, operational cash flow, and potential borrowings[38]. - Estimated future net cash flows from proved reserves as of December 31, 2024, are projected at $6,159,303,000, an increase from $5,277,582,000 in 2023[58]. - The present value of estimated future net cash flows (PV-10) for total proved reserves as of December 31, 2024, is $3,387,074,000, compared to $2,884,067,000 in 2023[58]. - The average adjusted price realized for crude oil as of December 31, 2024, was $75.56 per barrel, reflecting a decrease from $78.13 per barrel in 2023[58]. - Total average production costs for 2024 were $58.48 per Boe, reflecting an increase from $66.80 per Boe in 2023[60]. - Major customers accounted for 76% of revenues in 2024 from DK Trading & Supply, LLC and 18% from Energy Transfer Crude Marketing, LLC[74]. Operational Strategy - The company operates approximately 97% of its net acreage, which consists of 154,368 gross (141,907 net) acres, with 64% held by production[32]. - HighPeak Energy's drilling plan for 2025 includes averaging two drilling rigs and one frac crew[38]. - The company utilizes multi-well pad development to optimize drilling and completion cycle times, aiming to reduce overall costs[32]. - HighPeak Energy's assets are primarily located in the Midland Basin, specifically in Howard and Borden Counties, Texas[30]. - The company plans to retain substantially all of its undeveloped acreage through its development plan, with 28,584 net acres expiring in 2025[65]. Market and Competition - The company faces various risks including market price volatility for crude oil and natural gas, political instability, and regulatory changes[6]. - HighPeak Energy's crude oil and natural gas operations face intense competition from larger companies with greater resources, which may limit its ability to acquire properties and discover reserves[77]. - The company faces indirect competition from alternative energy sources, including wind and solar, which may affect its market position[78]. - Seasonal demand fluctuations affect natural gas prices, typically higher in Q4 and Q1, while crude oil demand peaks in Q2 and Q3[79]. Regulatory Environment - HighPeak Energy believes it is in substantial compliance with applicable laws and regulations, but the regulatory burden increases operational costs and affects profitability[85]. - The company operates under various federal, state, and local regulations that govern drilling, production, and environmental compliance, which may change and impact operations[87]. - The FERC regulates interstate natural gas pipeline transportation rates and service conditions, which may affect the marketing of crude oil and natural gas produced[94]. - The company is subject to strict liability under CERCLA for hazardous substance releases, which could lead to significant cleanup costs and liabilities[108]. - New regulations in Texas may restrict the ability to use hydraulic fracturing or dispose of produced water, potentially adversely affecting the Company's operations[117]. Human Resources and Corporate Governance - As of December 31, 2024, the company employed 47 full-time employees, with no employees covered by collective bargaining agreements, indicating good employee relations[135]. - The company is committed to equal employment opportunities and aims to attract a multitalented workforce[138]. - The company values talent development and offers cross-training and leadership learning opportunities to enhance employee skills[140]. - The company has a diverse board of directors with extensive experience in the oil and gas industry, including the CEO who has over 50 years of experience[144]. - The Chief Financial Officer has over 30 years of experience in corporate finance and has been with the company since its inception in October 2019[148].

Core Insights - HighPeak Energy, Inc. reported solid financial and operational results for 2024, with a focus on disciplined capital management and production growth [3][4][7]. Financial Performance - The company achieved a net income of $95.1 million for 2024, translating to $0.67 per diluted share, with EBITDAX of $842.9 million or $6.01 per diluted share [7][15]. - Adjusted net income for 2024 was $144.8 million, or $1.05 per diluted share [7]. - Fourth quarter 2024 net income was $9.0 million, or $0.06 per diluted share, with EBITDAX of $179.4 million, or $1.27 per diluted share [15][16]. Production and Reserves - Average production for 2024 was approximately 50.0 MBoe/d, a 10% increase year-over-year, with fourth quarter production averaging 50.2 MBoe/d [11][7]. - Estimated proved reserves at year-end 2024 were 199 million Boe, a 29% increase from 2023, with proved developed reserves increasing by 36% to 108 million Boe [7][13]. Capital Expenditures and Guidance - The company reduced its capital expenditures by 40% in 2024 and plans to further reduce them by 20% in 2025, with a capital budget of $448 - $490 million for 2025 [3][4][8]. - HighPeak plans to maintain a two-rig drilling program in 2025, with an average production guidance of 47,000 – 50,500 Boe/d [5][6]. Operational Efficiency - Lease operating expenses for 2024 averaged $7.23 per Boe, a 17% decrease year-over-year [7]. - The company successfully reduced long-term debt by $120 million and paid dividends of $0.16 per share in 2024 [7][22]. Shareholder Returns - HighPeak's Board of Directors declared a quarterly dividend of $0.04 per share for the fourth quarter of 2024 and for March 2025, totaling approximately $5.0 million in dividends [22][4]. - The company authorized a share repurchase program of up to $75 million, with approximately $40 million remaining available [7][4].

Production and Reserves - HighPeak Energy's 2024 average production was approximately 50.0 MBoe/d, a 10% increase year-over-year[4] - The company's year-end 2024 estimated proved reserves were 199 MMBoe, representing a 29% increase compared to year-end 2023[10] - The company's 2024 reserve replacement ratio was 345%, an increase of 17% compared to 2023[10] - The company reported a reserve replacement ratio of 345% for the year, with proved reserves increasing from 154,162 MBoe in 2023 to 198,998 MBoe in 2024[48] Financial Performance - 2024 net income was $95.1 million, or $0.67 per diluted share, with EBITDAX of $842.9 million, or $6.01 per diluted share[4] - Fourth quarter 2024 net income was $9.0 million, or $0.06 per diluted share, with adjusted net income of $28.2 million, or $0.19 per diluted share[14] - Net income for the year ended December 31, 2024, was $95,069,000, a decrease of 56% from $215,866,000 in 2023[36] - Adjusted net income for the year was $144,807,000, with diluted earnings per share of $1.05, compared to $194,310,000 and $1.58 in 2023[43] Revenue and Expenses - Total operating revenues for Q4 2024 were $234.8 million, a decrease of 22% compared to $301.2 million in Q4 2023[34] - Crude oil sales in Q4 2024 were $232.9 million, down 21% from $296.1 million in Q4 2023[34] - The company’s total operating costs and expenses for the year were $728.2 million, an increase of 8% from $676.6 million in 2023[34] - Total cash provided by operating activities for the year was $690,391,000, down from $756,389,000 in 2023, reflecting a decrease of approximately 8.7%[36] Capital Expenditures and Investments - HighPeak plans to reduce capital expenditures by an additional 20% in 2025, with total capital expenditures expected to be between $448 million and $490 million[7] - Total cash used in investing activities was $620,843,000 for the year, down from $1,125,935,000 in 2023, reflecting a reduction of about 44.8%[36] Shareholder Returns - The Board of Directors declared a quarterly dividend of $0.04 per share, totaling approximately $5.0 million in dividends for the fourth quarter of 2024[20] - The company repurchased shares under its buyback program for a total of $35,166,000 during the year[36] Asset and Liability Management - Total current assets decreased to $195.0 million in 2024 from $328.8 million in 2023, a reduction of approximately 41%[32] - Proved properties increased to $3.96 billion in 2024 from $3.34 billion in 2023, representing a growth of about 19%[32] - Total liabilities decreased to $1.46 billion in 2024 from $1.52 billion in 2023, indicating a reduction of approximately 4%[32] - The company reported a total stockholders' equity of $1.60 billion in 2024, up from $1.55 billion in 2023, an increase of about 3%[32] Operational Strategy - The company aims to maintain production flat while averaging two drilling rigs and one frac crew during 2025[6] - The company plans to continue its strategic review and may explore various alternatives, although outcomes are uncertain[26] Pricing and Sales Volumes - HighPeak's fourth quarter average realized prices were $70.46 per Bbl of crude oil, resulting in an overall realized price of $50.83 per Boe[15] - Average realized price for crude oil per Bbl decreased to $76.42 in 2024 from $78.26 in 2023, a decline of approximately 2.4%[38] - Average daily sales volumes for crude oil decreased to 37,914 Bbls in 2024 from 38,041 Bbls in 2023, while natural gas sales increased to 34,828 Mcf from 19,777 Mcf[38]

Core Viewpoint - HighPeak Energy, Inc. is expected to report a year-over-year decline in earnings and revenues for the quarter ended December 2024, with significant implications for its stock price depending on the actual results compared to estimates [1][3]. Earnings Expectations - The consensus estimate for HighPeak Energy's quarterly earnings is $0.13 per share, reflecting a year-over-year decrease of 80.3% [3]. - Expected revenues are $246.92 million, which is an 18% decline from the same quarter last year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 17.07% higher, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for HighPeak Energy is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -20%, suggesting a bearish outlook from analysts [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, with positive readings being more reliable [7][8]. - HighPeak Energy's current Zacks Rank is 3 (Hold), complicating predictions of an earnings beat [11]. Historical Performance - In the last reported quarter, HighPeak Energy exceeded expectations with earnings of $0.35 per share against an estimate of $0.23, resulting in a surprise of +52.17% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates two times [13]. Industry Comparison - Riley Exploration Permian, Inc., another player in the oil and gas sector, is expected to report earnings of $1.61 per share, indicating a year-over-year increase of 130% [17]. - Riley Exploration's revenues are projected to be $104.77 million, up 5% from the previous year, with a consensus EPS estimate revised 4.9% higher in the last 30 days [18].

Core Viewpoint - HighPeak Energy, Inc. is set to release its 2024 fourth quarter and year-end financial and operational results on March 10, 2025, after market close [1] Group 1: Financial Results Announcement - HighPeak Energy will host a conference call and webcast on March 11, 2025, at 10:00 a.m. Central Time to discuss its financial results and operational highlights for the fourth quarter and year-end of 2024 [2] - Participants can register for the call and access the live audio-only webcast and replay through HighPeak Energy's website [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]

Core Viewpoint - HighPeak Energy, Inc. has declared a quarterly cash dividend of $0.04 per share on its common stock, which will be paid on March 25, 2025, to stockholders of record on March 3, 2025 [1]. Company Overview - HighPeak Energy, Inc. is a publicly traded independent crude oil and natural gas company based in Fort Worth, Texas [2]. - The company focuses on the acquisition, development, exploration, and exploitation of unconventional crude oil and natural gas reserves in the Midland Basin in West Texas [2].

A HIGHPEAK N NEW ENR GEY E PRESENTATION VEMBER 2024 Disclaimer 2 •FORWARD-LOOKING STATEMENTS •The information in this presentation and in any oral statements made in connection herewith contains forward-looking statements that involve risks and uncertainties. When used in or in connection with this document, the words "believes," "plans," "expects," "anticipates," "forecasts," "intends," "projects," "continue," "may," "will," "could," "should," "future," "potential," "estimate" or the negative of such terms ...

Financial Data and Key Metrics Changes - HighPeak Energy reported a production average of over 51,000 barrels of oil per day in Q3 2024, exceeding previous quarter averages [11][12] - The company achieved positive free cash flow for the fifth consecutive quarter and utilized a significant portion to pay down debt and execute a share buyback program [9][10] - The EBITDAX per BOE for Q3 was $45.68, which is over 65% higher than the peer group average [23][24] Business Line Data and Key Metrics Changes - The drilling program has continued to deliver strong well results, leading to an increase in production guidance for the full year 2024 to a range of 48,000 to 51,000 BOEs per day, a 10% increase from the initial guidance [16][17] - The company has identified approximately 300 Middle Spraberry locations across its acreage, with the Kallus well achieving a Max Oil IP of roughly 1,500 barrels of oil per day [26][29] Market Data and Key Metrics Changes - HighPeak's operations were impacted by a major storm in September, which caused some production volumes to be offline, but the overall impact was minimal due to the robustness of the infrastructure [12][25] - The company continues to maintain a competitive cost structure, with drilling and completion costs running 9% below Q1 levels [34] Company Strategy and Development Direction - HighPeak is focused on maximizing shareholder value through disciplined operations, strengthening the balance sheet, and optimizing production [7][10] - The company is expanding its infrastructure to support life-of-field development and maintain peer-leading profit margins [48][80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued strong performance of wells and the potential for significant resource recovery, estimating upwards of 1 billion barrels of oil equivalents of net recoverable resource in place [80] - The company remains optimistic about achieving further cost savings and operational efficiencies [17][19] Other Important Information - HighPeak's ESG initiatives are integrated into operational and strategic planning, including the use of recycled stimulation fluid and a solar farm that reduces CO2 emissions [41][42] Q&A Session Summary Question: Plans for offsetting the Kallus well - Management indicated plans to delineate and offset the Kallus well in the future, likely within the next quarter or two [50][53] Question: Performance of the Judith well and expansion confidence - Management confirmed strong early performance from the Judith well and expressed confidence in the overall inventory across the acreage [56][58] Question: Data from log penetrations and de-risking locations - Management highlighted the consistency of performance across wells and the importance of commercial viability in assessing inventory [63][64] Question: Cost differences versus the central Midland Basin - Management explained that the eastern side of the basin is shallower, leading to lower drilling costs compared to deeper areas [73][74] Question: Opportunities for acquiring additional acreage - Management stated that the land department is actively seeking to acquire additional acreage around successful wells [76][77]

Core Viewpoint - HighPeak Energy, Inc. reported quarterly earnings of $0.35 per share, exceeding the Zacks Consensus Estimate of $0.23 per share, but down from $0.46 per share a year ago, indicating a 52.17% earnings surprise [1][2] Financial Performance - The company posted revenues of $271.58 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.56%, but down from $345.59 million year-over-year [2] - Over the last four quarters, HighPeak Energy has surpassed consensus EPS estimates two times and topped consensus revenue estimates twice [2] Stock Performance - HighPeak Energy shares have declined approximately 12% since the beginning of the year, contrasting with the S&P 500's gain of 20.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.15 on revenues of $245.54 million, and for the current fiscal year, it is $0.65 on revenues of $1.08 billion [7] Industry Outlook - The Oil and Gas - Exploration and Production - United States industry is currently ranked in the bottom 18% of over 250 Zacks industries, indicating potential challenges for stocks in this sector [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact HighPeak Energy's stock performance [5][6]