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]

Financial Performance & Operational Efficiency - HighPeak Energy reported Q1 2025 EBITDAX of $197.3 million[13,41] - Q1 2025 Unhedged EBITDAX per BOE was $41.90[13,35] - Q1 2025 total daily sales volumes were 53.1 MBoe/d, with oil accounting for 72% of production[13,41] - The company achieved faster drilling pace translating to ~33 wells drilled/year/rig[15] Capital Expenditure & Drilling Plan - Total capital expenditure for Q1 2025 was $179.8 million, excluding acquisitions[41] - The company is revising its rig plan, dropping one rig from May through August and planning to return the second rig in September, with no change to 2025 guided TILs and Capex budget[25] Reserves & Profitability - HighPeak Energy has >143,000 net acres and >1,000 sub $50/Bbl break-even locations in primary zones[13,35] - The company highlights a 3-year reserve replacement ratio of >400% driven by drill bit reserve additions[27] - HighPeak Energy emphasizes profitable development at $60/Bbl (WTI)[28] Hedging - The company has hedged a portion of its oil and gas production for 2025 and 2026 using swaps, puts, and collars, with average prices detailed in the hedge profile summary[40]

[PART I. FINANCIAL INFORMATION](index=10&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Condensed Consolidated Financial Statements (Unaudited)](index=10&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20%28Unaudited%29) This section presents HighPeak Energy's unaudited condensed consolidated financial statements, detailing balance sheets, operations, equity changes, and cash flows, alongside notes on key financial positions and programs Condensed Consolidated Balance Sheet Highlights (Unaudited) | (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$3,093,081** | **$3,063,288** | | Cash and cash equivalents | $51,619 | $86,649 | | Total crude oil and natural gas properties, net | $2,918,291 | $2,845,729 | | **Total Liabilities** | **$1,459,687** | **$1,460,832** | | Current maturities of long-term debt | $120,000 | $120,000 | | Long-term debt, net | $902,844 | $928,384 | | **Total Stockholders' Equity** | **$1,633,394** | **$1,602,456** | Condensed Consolidated Statement of Operations Highlights (Unaudited) | (in thousands, except per share data) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total operating revenues | $257,448 | $287,764 | | Income from operations | $90,379 | $103,020 | | Loss on derivative instruments, net | $(7,927) | $(53,043) | | **Net income** | **$36,335** | **$6,438** | | Basic net income per share | $0.26 | $0.05 | | Diluted net income per share | $0.26 | $0.05 | Condensed Consolidated Statement of Cash Flows Highlights (Unaudited) | (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 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) | $(44,351) | | **Net decrease in cash and cash equivalents** | **$(35,030)** | **$(21,135)** | - The company is an independent crude oil and natural gas E&P company focused on the Midland Basin in West Texas, primarily in Howard and Borden Counties, with its two core areas being Flat Top and Signal Peak[36](index=36&type=chunk) - As of March 31, 2025, the company had a **$1.05 billion** outstanding balance on its Term Loan Credit Agreement due 2026 and no outstanding balance on its **$100 million** Senior Credit Facility Agreement[95](index=95&type=chunk)[96](index=96&type=chunk)[101](index=101&type=chunk) - In February 2024, the Board approved a stock repurchase program for up to **$75.0 million**, with approximately **$39.9 million** remaining available as of March 31, 2025[129](index=129&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial and operational performance, noting increased net income driven by lower derivative losses despite reduced commodity prices, alongside production growth, capital program updates, and strategic alternatives evaluation - Net income for Q1 2025 was **$36.3 million**, a **$29.9 million increase** from Q1 2024, primarily due to a **$45.1 million decrease** in derivative losses and a **$21.5 million decrease** in DD&A expense, partially offset by a **$30.3 million decrease** in revenues from lower commodity prices[151](index=151&type=chunk) Average Daily Sales Volumes | Commodity | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Crude Oil (Bbls) | 38,222 | 39,959 | (4)% | | NGL (Bbls) | 7,724 | 5,147 | 50% | | Natural Gas (Mcf) | 43,096 | 27,733 | 55% | | **Total (Boe)** | **53,128** | **49,729** | **7%** | Weighted Average Realized Prices (Excluding Derivatives) | Commodity | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Crude Oil per Bbl | $71.64 | $77.65 | (8)% | | NGL per Bbl | $24.21 | $24.94 | (3)% | | Natural Gas per Mcf | $2.34 | $1.33 | 76% | | **Total per Boe** | **$53.84** | **$63.59** | **(15)%** | Operating Costs per Boe | Cost Category | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Production Costs (ex. workovers) | $6.61 | $6.30 | 5% | | DD&A Expense | $22.86 | $28.92 | (21)% | | G&A Expense | $1.33 | $1.04 | 28% | - The company is developing its properties with **two drilling rigs** and **one frac crew**, drilling **16 gross (16.0 net) horizontal wells** and completing **13 gross (12.9 net) wells** in the Flat Top area during Q1 2025[157](index=157&type=chunk) - The 2025 capital budget is projected to be **$375-$405 million** for drilling and completions, expected to be funded by cash on hand, cash from operations, and available credit[174](index=174&type=chunk) - The company continues to evaluate strategic alternatives to maximize shareholder value, including a potential sale, though the process remains exploratory with no decisions made[150](index=150&type=chunk) EBITDAX Reconciliation (Non-GAAP) | (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net income | $36,335 | $6,438 | | Interest expense | $36,988 | $43,634 | | Provision for income taxes | $9,939 | $2,297 | | Depletion, depreciation and amortization | $109,325 | $130,850 | | Derivative related noncash activity | $4,856 | $47,895 | | Other adjustments | $(205) | $4,536 | | **EBITDAX** | **$197,318** | **$233,258** | [Quantitative and Qualitative Disclosures About Market Risk](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines HighPeak Energy's primary market risks, including commodity price volatility, interest rate fluctuations, and counterparty credit risk, detailing mitigation strategies and sensitivity analysis impacts - The company's main market risk is commodity price volatility, where a **$1.00 per barrel change** in crude oil price would impact annualized revenues by approximately **$14.7 million**, and a **$0.10 per Mcf change** in natural gas price would impact revenues by **$1.6 million**, excluding derivative effects[193](index=193&type=chunk) - The company is exposed to interest rate risk on its variable-rate debt, with **$1.05 billion** outstanding under the Term Loan Credit Agreement, a **1% increase** in interest rates would result in an approximate annual increase in interest expense of **$10.5 million**[201](index=201&type=chunk) - HighPeak uses commodity derivative instruments, such as collars, puts, and swaps, to reduce price risk and ensure cash flow certainty for its capital program, as required by its credit agreements[194](index=194&type=chunk) - Credit risk is concentrated with a few significant customers for crude oil and natural gas sales, mitigated through credit policies and monitoring, while counterparty risk on derivatives is managed by selecting investment-grade counterparties[196](index=196&type=chunk)[198](index=198&type=chunk)[199](index=199&type=chunk) [Controls and Procedures](index=55&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during Q1 2025 - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2025[202](index=202&type=chunk) - **No changes** occurred during Q1 2025 that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[203](index=203&type=chunk) [PART II. OTHER INFORMATION](index=55&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=55&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, but does not anticipate any material adverse effect on its financial position, liquidity, or future operations from these matters - The company believes that the liability from any ongoing legal proceedings will **not have a material adverse effect** on its consolidated financial position, liquidity, or future results of operations[205](index=205&type=chunk) [Risk Factors](index=55&type=section&id=Item%201A.%20Risk%20Factors) This section notes no material changes to risk factors from the Annual Report, specifically highlighting potential adverse effects of new trade policies like tariffs on supply chains and profitability - There has been **no material change** in the company's risk factors from its Annual Report[206](index=206&type=chunk) - A specific risk highlighted is the **uncertainty of future U.S. trade policies**, including tariffs, which could disrupt supply chains, increase costs, and **materially adversely affect** the company's financial condition[207](index=207&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=56&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's stock repurchase activity, noting no repurchases in Q1 2025, with approximately **$39.9 million** remaining in the program extended through December 31, 2025 Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Approximate Dollar Value of Shares that May Yet to Be Purchased | | :--- | :--- | :--- | :--- | | Jan 2025 | — | — | $39,907,000 | | Feb 2025 | — | — | $39,907,000 | | Mar 2025 | — | — | $39,907,000 | | **Total** | **—** | **—** | **$39,907,000** | - The Board of Directors extended the **$75.0 million** stock repurchase program to **December 31, 2025**[210](index=210&type=chunk) [Other Information](index=56&type=section&id=Item%205.%20Other%20Information) During Q1 2025, no director or officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements - **No director or officer** of the Company adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" during Q1 2025[211](index=211&type=chunk) [Exhibits](index=57&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q report, including key corporate documents and required CEO and CFO certifications - The report includes **key corporate documents** and **required certifications** as exhibits, such as CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[213](index=213&type=chunk)

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. Financial Performance - Sales volumes averaged approximately 53.1 MBoe/d, a 6% increase from Q4 2024 [8][10] - Net income was $36.3 million, or $0.26 per diluted share, with adjusted net income of $42.7 million, or $0.31 per diluted share [13][43] - EBITDAX was $197.3 million, or $1.40 per diluted share [13] - Lease operating expenses averaged $6.61 per Boe, a 3% decrease compared to Q4 2024 [8][14] - Free cash flow generated was $10.7 million, with long-term debt reduced by $30 million [8][12] Operational Efficiency - HighPeak drilled over 25% faster than previous expectations, completing four additional wells in Q1 2025 [4][12] - The company maintained capital discipline by laying down one rig for four months while still on track to meet 2025 guidance [5][6] - The majority of 2025 infrastructure capital expenditures were completed in the first quarter, leading to lower expected quarterly capital expenditures for the remainder of the year [6] Capital Structure and Shareholder Value - The company is committed to optimizing its capital structure and is in a healthy financial position with no near-term debt maturities [7] - A quarterly dividend of $0.04 per share was declared, amounting to approximately $5 million [21][39] - Management is aligned with shareholders and focused on long-term value creation despite market volatility [9] Production Guidance - The 2025 production guidance range has been updated to 48,000 – 50,500 Boe/d, with an increased midpoint reflecting strong well performance [11][12]

Core Viewpoint - HighPeak Energy, Inc. is set to release its first quarter financial and operational results for 2025 on May 12, 2025, after market close [1] Group 1: Financial Results Announcement - The company will announce its 2025 first quarter financial and operating results after the close of trading on May 12, 2025 [1] - A conference call and webcast will be held on May 13, 2025, at 10:00 a.m. Central Time to discuss these results [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]

Industry Overview - The Zacks Oil and Gas - Exploration and Production - United States industry is experiencing a mixed outlook, with OPEC revising its 2025 oil demand growth forecast down to 1.3 million barrels per day due to sluggish global consumption and rising U.S. tariffs [1][3] - Natural gas prices have surged, increasing 44% in 2024 and another 13% in Q1 2025, driven by cold weather, tight supply, and strong global demand [1][4] - The clean energy transition poses a long-term risk to fossil fuel demand as renewables and electric vehicles gain traction [1][5] Key Trends - OPEC's downward revision of oil demand growth reflects concerns over slower consumption and trade dynamics affected by U.S. tariffs [3] - Natural gas fundamentals indicate tight supply and strong demand, with prices reaching a two-year high of $4.491 [4] - The shift towards clean energy could lead to a structural decline in traditional oil demand over the next 5 to 10 years [5] Industry Performance - The Zacks Oil and Gas - US E&P industry ranks 192 out of 246 Zacks industries, placing it in the bottom 22% [6] - The industry's earnings estimates for 2025 have decreased by 33.7% over the past year, indicating a negative earnings outlook [7] - Over the past year, the industry has declined by 32.9%, underperforming both the broader Zacks Oil - Energy Sector and the S&P 500 [9] Valuation Metrics - The industry is currently trading at an EV/EBITDA ratio of 10.70X, lower than the S&P 500's 15.58X but above the sector's 4.36X [13] - Historical trading ranges for the industry show a high of 15.45X and a low of 3.56X over the past five years [13] Investment Opportunities - HighPeak Energy is highlighted as a strong investment opportunity, with a projected 92.5% increase in 2025 earnings and a 45% upward revision in earnings estimates over the past 60 days [15][16] - EQT Corporation, the largest natural gas producer in the U.S., has an expected EPS growth rate of 51.2% over the next three to five years, with an 11% increase in earnings estimates recently [18][19] - Antero Resources shows a remarkable projected 1,514.3% year-over-year growth in 2025 earnings, with a strong production outlook from its low-cost drilling inventory [20][21]