HighPeak Energy, Inc. (HPK) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the sto ...

FORT WORTH, Texas, July 28, 2025 (GLOBE NEWSWIRE) -- HighPeak Energy, Inc. (NASDAQ: HPK) ("HighPeak Energy"), today announced that it plans to release its 2025 second quarter financial and operating results after the close of trading on Monday, August 11, 2025. HighPeak Energy 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 2025 sceond quarter financial results and operational highlights. Participants may register for t ...

Core Viewpoint - HighPeak Energy, Inc. (HPK) shares experienced a significant rally of 7.4% due to positive market sentiment and increased trading volume, despite a prior loss of 9.9% over the past month [1][2]. Company Summary - HighPeak Energy is positioned in the oil and gas exploration and production sector, specifically in the Midland Basin of West Texas, which is known for its productive capacity [2]. - The company is expected to report quarterly earnings of $0.12 per share, reflecting a year-over-year decline of 57.1%, with revenues projected at $211.58 million, down 23.1% from the previous year [3]. - The consensus EPS estimate for HighPeak Energy has remained unchanged over the last 30 days, indicating a lack of upward revisions that typically support stock price increases [4]. Industry Summary - The energy sector is currently experiencing a favorable shift, driven by renewed optimism surrounding crude oil prices and robust energy demand, which positively impacts exploration and production companies like HighPeak Energy [2]. - HighPeak Energy holds a Zacks Rank of 2 (Buy), indicating a positive outlook within the oil and gas exploration and production industry in the United States [5].

Group 1 - HighPeak Energy, Inc. (HPK) shares increased by 7.1% to close at $10.44, following a notable trading volume compared to typical sessions, despite a 12.4% loss over the past four weeks [1][2] - The rise in stock price is attributed to optimism regarding crude oil prices, which have approached $70, and strong energy demand, likely leading to increased drilling activity in West Texas' Midland Basin [2] - HighPeak Energy is expected to report quarterly earnings of $0.11 per share, reflecting a year-over-year decline of 60.7%, with revenues projected at $211.58 million, down 23.1% from the previous year [3] Group 2 - The consensus EPS estimate for HighPeak Energy has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] - HighPeak Energy holds a Zacks Rank of 3 (Hold) within the Oil and Gas - Exploration and Production - United States industry, similar to Permian Resources, which also has a Zacks Rank of 3 [5][6] - Permian Resources is expected to report an EPS of $0.26, representing a 33.3% decline from the previous year, and closed the last trading session at $14.42, with a slight return of -0.1% over the past month [6]

HighPeak Energy, Inc. First Quarter 2025 Financial and Operating Results [First Quarter 2025 Highlights](index=1&type=section&id=First%20Quarter%202025%20Highlights) HighPeak Energy reported strong Q1 2025 results with increased sales volumes, $10.7 million free cash flow, $30 million debt reduction, and a $0.04/share dividend, driven by operational efficiencies Q1 2025 Key Financial & Operating Metrics | Metric | Value | Change vs Q4 2024 | | :--- | :--- | :--- | | Sales Volumes | 53.1 MBoe/d | 6% Increase | | Net Income | $36.3 million ($0.26/share) | N/A | | Adjusted Net Income | $42.7 million ($0.31/share) | N/A | | EBITDAX | $197.3 million | N/A | | Lease Operating Expenses (LOE) | $6.61 per Boe | 3% Decrease | | Free Cash Flow | $10.7 million | N/A | | Long-Term Debt Reduction | $30 million | N/A | | Quarterly Dividend | $0.04 per share | Maintained | - Achieved significant drilling and completion efficiency gains, resulting in **four additional wells** being drilled and completed during the quarter[4](index=4&type=chunk)[6](index=6&type=chunk) - The company narrowed its 2025 production guidance range and increased the midpoint[6](index=6&type=chunk)[12](index=12&type=chunk) [CEO Statement on 2025 Strategy](index=1&type=section&id=CEO%20Statement%20on%202025%20Strategy) CEO Jack Hightower outlined HighPeak's 2025 strategy focusing on efficiency, capital discipline, capital structure optimization, and shareholder value, evidenced by exceeding production targets and maintaining a strong balance sheet - The company's strategy for 2025 is based on four pillars: improving corporate efficiency, maintaining capital discipline, optimizing capital structure, and delivering shareholder value[3](index=3&type=chunk) [Improving Corporate Efficiency](index=1&type=section&id=Improving%20Corporate%20Efficiency) HighPeak exceeded production guidance by drilling over 25% faster, enabling four additional Q1 wells while maintaining development cost alignment - Drilling speed was over **25% faster** than previous expectations, enabling the completion of **four additional wells** in Q1[4](index=4&type=chunk) [Maintaining Capital Discipline](index=1&type=section&id=Maintaining%20Capital%20Discipline) HighPeak moderated its development by idling one rig from May-August due to economic uncertainty, yet expects to meet annual well targets, with future quarterly capex anticipated to be materially lower after Q1 front-loading - One drilling rig will be laid down for **four months** (May-August) to moderate the development program due to economic uncertainty[5](index=5&type=chunk) - Despite the temporary rig reduction, the company remains on track to drill and complete the same number of wells as guided for 2025[5](index=5&type=chunk) - Quarterly capital expenditures are expected to be materially lower going forward, as a large portion of the annual budget was spent in Q1[7](index=7&type=chunk) [Optimizing Capital Structure & Shareholder Value](index=2&type=section&id=Optimizing%20Capital%20Structure%20%26%20Shareholder%20Value) HighPeak focuses on optimizing its capital structure, maintaining a healthy financial position with no near-term debt maturities, and aligning management with shareholders for long-term value creation - The company is in a **healthy financial position** with **no near-term debt maturities** and is taking steps to maintain a strong balance sheet[8](index=8&type=chunk) - Management, as large owners, is fully aligned with shareholders and focused on long-term value creation[9](index=9&type=chunk) [Operational and Financial Review](index=2&type=section&id=Operational%20and%20Financial%20Review) HighPeak's Q1 2025 saw sales volumes average 53.1 MBoe/d, with 16 gross wells drilled and 13 turned to production, resulting in $36.3 million net income, $197.3 million EBITDAX, and $179.8 million in capital expenditures, alongside updated 2025 production guidance Q1 2025 Operational & Financial Summary | Metric | Value | | :--- | :--- | | Average Sales Volumes | 53.1 MBoe/d | | Crude Oil / Liquids Mix | 72% / 86% | | Gross Wells Drilled | 16 | | Gross Wells Turned-in-line | 13 | | Net Income | $36.3 million | | EBITDAX | $197.3 million | | Capital Expenditures | $179.8 million | | Updated 2025 Production Guidance | 48,000 – 50,500 Boe/d | Q1 2025 Realized Prices & Costs per Boe | Metric | Value per Boe | | :--- | :--- | | Overall Realized Price | $53.84 | | Lease Operating Expenses | $6.61 | | Workover Expenses | $0.83 | | Production & Ad Valorem Taxes | $3.17 | | G&A Expenses | $1.33 | | **Total Cash Costs** | **$11.94** | | **Unhedged EBITDAX Margin** | **$41.90** | [Hedging](index=3&type=section&id=Hedging) As of March 31, 2025, HighPeak utilized crude oil swaps, collars, and puts, alongside natural gas swaps extending into 2027, to manage commodity price risk [Crude Oil Hedges](index=3&type=section&id=Crude%20Oil%20Hedges) HighPeak's crude oil hedging strategy for Apr-Jun 2025 includes 5,500 Bbls/day in swaps at $76.37/Bbl, complemented by collars and puts to manage price volatility - For Apr-Jun 2025, the company has **5,500 Bbls/day** of WTI crude oil swaps at a fixed price of **$76.37/Bbl**[17](index=17&type=chunk) - For the same period (Apr-Jun 2025), the company also holds collars on **7,989 Bbls/day** with a floor of **$64.38** and a ceiling of **$88.55**, and puts on **9,000 Bbls/day** with a strike price of **$65.78**[17](index=17&type=chunk) [Natural Gas Hedges](index=3&type=section&id=Natural%20Gas%20Hedges) HighPeak hedged natural gas production through 2025 with swaps at $4.43/MMBtu, adding further positions for 2026 and early 2027 at $4.30/MMBtu in April 2025 - As of March 31, 2025, the company had natural gas swaps for **30,000 MMBtu/day** through the end of 2025 at a fixed price of **$4.43/MMBtu**[18](index=18&type=chunk)[19](index=19&type=chunk) - In April 2025, the company added new natural gas swaps for 2026 and Q1 2027 at a fixed price of **$4.30/MMBtu**[20](index=20&type=chunk) [Dividends](index=4&type=section&id=Dividends) HighPeak maintained shareholder returns by paying a $0.04 per share quarterly dividend in Q1 2025, totaling $5.0 million, and declared another $0.04 per share dividend payable in June 2025 - Paid a Q1 2025 dividend of **$0.04 per share**, amounting to **$5.0 million**[21](index=21&type=chunk) - Declared a subsequent quarterly dividend of **$0.04 per share**, payable on June 25, 2025[21](index=21&type=chunk) Financial Statements and Reconciliations [Unaudited Condensed Consolidated Financial Statements](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Unaudited Q1 2025 financial statements show total assets of **$3.09 billion**, net income of **$36.3 million**, and net cash from operating activities of **$157.1 million** Condensed Balance Sheet (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $51,619 | $86,649 | | Total current assets | $152,602 | $195,012 | | Total assets | $3,093,081 | $3,063,288 | | Long-term debt, net | $902,844 | $928,384 | | Total stockholders' equity | $1,633,394 | $1,602,456 | Condensed Statement of Operations (in thousands) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total operating revenues | $257,448 | $287,764 | | Income from operations | $90,379 | $103,020 | | Net income | $36,335 | $6,438 | | Diluted net income per share | $0.26 | $0.05 | Condensed Statement of Cash Flows (in thousands) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $157,052 | $171,439 | | Net cash used in investing activities | ($156,594) | ($148,223) | | Net cash used in financing activities | ($35,488) | ($44,351) | | Net decrease in cash | ($35,030) | ($21,135) | [Unaudited Summary Operating Highlights](index=9&type=section&id=Unaudited%20Summary%20Operating%20Highlights) Q1 2025 operating highlights show total daily production increased to **53,128 Boe**, while the average realized price per Boe decreased to **$53.84** due to lower crude oil prices Average Daily Sales Volumes | Product | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Crude oil (Bbls) | 38,222 | 39,959 | | NGLs (Bbls) | 7,724 | 5,147 | | Natural gas (Mcf) | 43,096 | 27,733 | | **Total (Boe)** | **53,128** | **49,729** | Average Realized Prices | Product | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Crude oil per Bbl | $71.64 | $77.65 | | Natural gas per Mcf | $2.34 | $1.33 | | **Total per Boe** | **$53.84** | **$63.59** | [Non-GAAP Reconciliations](index=10&type=section&id=Non-GAAP%20Reconciliations) This section reconciles GAAP to non-GAAP metrics, showing Q1 2025 Net Income of **$36.3 million** reconciled to **$197.3 million** EBITDAX, **$42.7 million** Adjusted Net Income, and **$10.7 million** Free Cash Flow Reconciliation to EBITDAX (Q1 2025, in thousands) | Line Item | Amount | | :--- | :--- | | Net income | $36,335 | | Interest expense | $36,988 | | Income tax expense | $9,939 | | DD&A | $109,325 | | Other adjustments | $5,741 | | **EBITDAX** | **$197,318** | Reconciliation to Free Cash Flow (Q1 2025, in thousands) | Line Item | Amount | | :--- | :--- | | Net cash provided by operating activities | $157,052 | | Add back: net change in operating assets/liabilities | $8,288 | | Additions to crude oil and natural gas properties | ($179,819) | | Changes in working capital for property additions | $25,172 | | **Free cash flow** | **$10,693** | Reconciliation to Adjusted Net Income (Q1 2025) | Line Item | Amount (in thousands) | Per Diluted Share | | :--- | :--- | :--- | | Net income | $36,335 | $0.26 | | Adjustments (Derivative loss, etc.) | $6,363 | $0.05 | | **Adjusted net income** | **$42,698** | **$0.31** |

Core Viewpoint - HighPeak Energy, Inc. plans to offer $725 million in senior notes due 2030 to repay existing debt and strengthen its financial position [1][2]. Group 1: Offering Details - The company intends to offer $725 million aggregate principal amount of senior notes in a private placement under Rule 144A and Regulation S of the Securities Act [1]. - The notes will not be registered under the Securities Act and will be issued pursuant to an exemption, limiting their sale to qualified institutional buyers and non-U.S. persons [3][4]. Group 2: Use of Proceeds - The net proceeds from the offering, along with borrowings from a new revolving credit facility, will be used to fully repay the existing term loan credit agreement [2]. Group 3: Company Overview - HighPeak Energy, Inc. is an independent crude oil and natural gas company based in Fort Worth, Texas, focusing on the acquisition, development, exploration, and exploitation of unconventional reserves in the Midland Basin [6].

Financial Data and Key Metrics Changes - High Peak Energy reported an average production of over 53,000 BOEs per day, a 6% increase compared to Q4 [6] - The company generated nearly $200 million in EBITDA during the quarter, reflecting a 10% increase from the previous quarter [6] - Cash margins remained healthy, supported by a 3% decrease in lease operating expenses quarter over quarter [7] Business Line Data and Key Metrics Changes - The drilling team spud 20 wells during the quarter, exceeding the initial plan of 12 wells, and rig released 16 wells [9] - The average spud to spud timing improved from 14 days to about 11 days, translating to a single rig drilling over 30 wells per year [8] Market Data and Key Metrics Changes - The company is experiencing a 3% increase in costs for tubular goods due to tariffs, which could raise overall AFE by approximately 2% [16] - Despite the tariff impact, overall well costs are seeing low single-digit declines [18] Company Strategy and Development Direction - High Peak is narrowing its production guidance and raising the bottom end due to strong Q1 performance [8] - The company plans to drop one of its two rigs for four months to manage operational DUCs and maintain capital discipline [13][14] - High Peak is implementing simul frac operations to enhance efficiency and reduce costs further [18] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the current market environment and indicated flexibility to adjust development plans based on market conditions [14][15] - The company remains in a healthy financial position with no near-term debt maturities and is focused on optimizing its capital structure [27][28] Other Important Information - High Peak's reserve replacement ratio over the past three years is 400%, primarily driven by organic growth [20] - The company has a long runway of high-value drilling locations, which is becoming increasingly scarce in the industry [28] Q&A Session Summary Question: Impact of simul frac on costs - Management explained that simul frac could reduce completion time from 25-28 days to 11-14 days, resulting in approximately $1 million savings for a four-well pad [33][34][37] Question: Update on well results in Borden County - Management reported that eight wells in Borden County are performing well, with new wells showing a 20% improvement in production compared to the previous year [40][41] Question: Economic development locations with Middle Spraberry - Management indicated that they have about 200 Middle Spraberry wells in inventory, with expectations to move many into the sub $50 breakeven category over the next year [46][47] Question: Impact of 2025 development plan changes on 2026 - Management noted that maintaining efficiency gains will depend on working closely with vendor partners and market conditions [48][49] Question: Production guidance adjustments - Management confirmed that the raised production guidance is primarily due to strong Q1 performance and efficiencies, with expectations for continued strong production in 2025 [51][52] Question: Balance sheet recapitalization goals - Management emphasized the importance of optimizing capital structure and the potential for significant free cash flow generation in the coming years [56][59]

Financial Data and Key Metrics Changes - The company reported an average production of over 53,000 BOEs per day, a 6% increase compared to Q4 [6] - EBITDA for the quarter reached nearly $200 million, reflecting a 10% increase from the previous quarter [6][13] - Cash margins improved due to a 3% decrease in lease operating expenses quarter over quarter [7] Business Line Data and Key Metrics Changes - The drilling team spud 20 wells during the quarter, exceeding the initial plan of 12 wells [10] - The average spud to spud timing improved from 14 days to about 11 days, representing over a 20% efficiency gain [8] - The company is building additional drilled but uncompleted (DUC) inventory, with a work in progress well count of 28 at the end of the first quarter [11] Market Data and Key Metrics Changes - The cost of tubular goods is expected to rise by approximately 3% due to tariffs, impacting overall AFE by roughly 2% [17] - The company is experiencing low single-digit overall declines in well costs, despite the increased tubular goods prices [19] Company Strategy and Development Direction - The company is narrowing its production guidance and raising the bottom end due to strong Q1 performance [8] - A decision was made to drop one of the two rigs for four months to manage operational DUCs and maintain capital discipline [14][15] - The company plans to implement simul frac operations to further reduce development costs and improve efficiency [20] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the current market environment and indicated flexibility to adjust the development program as needed [15][29] - The company remains in a healthy financial position with no near-term debt maturities and is focused on optimizing its capital structure [28][29] - Management emphasized the importance of maintaining a long-term outlook on value creation despite market volatility [29] Other Important Information - The company has achieved a 400% reserve replacement ratio over the past three years, primarily through organic growth [21] - High Peak's profitability is highlighted as superior compared to peers, driven by a better cost structure [22] Q&A Session Summary Question: Impact of simul frac on per foot D&C cost - Management explained that simul frac could reduce completion time from 25-28 days to 11-14 days, resulting in approximately $250,000 savings per well [32][36][39] Question: Update on well results in Borden County - Management reported positive performance from eight wells in Borden County, with new wells showing a 20% improvement in production compared to the previous year [40][42] Question: Economic development locations with Middle Spraberry - Management indicated that they have about 200 Middle Spraberry wells in inventory, with expectations to move many into the sub $50 breakeven category [47][49] Question: Impact of 2025 development plan changes on 2026 - Management noted that maintaining efficiencies will depend on working closely with vendor partners and market conditions [50][51] Question: Production guidance increase rationale - The increase in production guidance was attributed to strong Q1 performance and the expectation of continued efficiency gains [52][54] Question: Balance sheet recapitalization goals - Management discussed the importance of optimizing capital structure and the potential for significant free cash flow generation in the coming years [56][60]

Core Viewpoint - HighPeak Energy, Inc. reported strong financial and operational results for the first quarter of 2025, exceeding production guidance and consensus estimates, while also providing an updated development outlook and increased production guidance for the year [1][3][4]. Financial Performance - The company achieved a net income of $36.3 million, or $0.26 per diluted share, with EBITDAX of $197.3 million, or $1.40 per diluted share [7][13]. - Adjusted net income for the first quarter was $42.7 million, or $0.31 per diluted share [7][13]. - Sales volumes averaged approximately 53.1 MBoe/d, representing a 6% increase from the fourth quarter of 2024 [10][12]. - Average realized prices were $71.64 per barrel of crude oil, $24.21 per barrel of NGL, and $2.34 per Mcf of natural gas, resulting in an overall realized price of $53.84 per Boe [14][39]. Operational Efficiency - HighPeak drilled over 25% faster than previous expectations, completing four additional wells during the first quarter [4][12]. - The company maintained lease operating expenses at an average of $6.61 per Boe, a 3% decrease compared to the previous quarter [7][14]. - Capital expenditures for the first quarter totaled $179.8 million, with expectations for lower quarterly capital expenditures moving forward [15][6]. Capital Discipline - The company moderated its development program by laying down one rig for four months due to global economic uncertainty impacting oil prices, yet remains on track to meet its 2025 guidance [5][6]. - HighPeak reduced long-term debt by $30 million during the quarter and generated free cash flow of $10.7 million [7][21]. Shareholder Value - The Board of Directors declared a quarterly dividend of $0.04 per share, amounting to approximately $5.0 million, payable in June 2025 [7][21]. - Management emphasized alignment with shareholders and a long-term outlook on value creation despite market volatility [9]. Production Guidance - The company updated its 2025 production guidance range to 48,000 – 50,500 Boe/d, narrowing the range and increasing the midpoint [11][12].

分组1 - HighPeak Energy, Inc. reported quarterly earnings of $0.31 per share, exceeding the Zacks Consensus Estimate of $0.22 per share, but down from $0.37 per share a year ago, representing an earnings surprise of 40.91% [1] - The company posted revenues of $257.45 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.90%, but down from $287.76 million year-over-year [2] - HighPeak Energy shares have declined approximately 37.8% since the beginning of the year, contrasting with the S&P 500's decline of 3.8% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is breakeven on revenues of $216.55 million, while for the current fiscal year, it is $0.32 on revenues of $911.71 million [7] - The Zacks Industry Rank for Oil and Gas - Exploration and Production - United States is currently in the bottom 25% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8]