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]

Group 1 - The article focuses on analyzing oil and gas companies, specifically highlighting HighPeak Energy and its valuation within the industry [1] - The analysis includes a breakdown of essential factors such as balance sheets, competitive positioning, and development prospects of the companies [1] - The service provided offers exclusive insights and analysis to members, which are not available on the free site [1] Group 2 - The oil and gas industry is characterized as a boom-bust, cyclical sector, requiring patience and experience for successful investment [2] - The author has extensive experience in the industry, holding qualifications such as an MBA and MA, along with a background as a CPA [2]

Company Overview - HighPeak Energy, Inc. (HPK) is an independent oil and natural gas company focused on the exploration and development of unconventional oil reserves [2] - The company’s stock price increased by 19.7% to close at $9.80, following a significant trading volume [1] Market Conditions - The rise in HighPeak Energy's stock price is part of a broader rally in the energy sector, influenced by President Trump's announcement to reduce tariffs and delay hikes for most countries [2] - Natural gas prices closed significantly higher, positively impacting companies like HighPeak Energy [2] Financial Performance - HighPeak Energy is expected to report quarterly earnings of $0.33 per share, reflecting a year-over-year decline of 10.8% [3] - Revenues are projected to be $257.96 million, down 10.4% from the same quarter last year [3] Earnings Estimates - The consensus EPS estimate for HighPeak Energy has been revised 90.5% higher over the last 30 days, indicating a positive trend in earnings estimate revisions [4] - A positive trend in earnings estimate revisions is typically associated with price appreciation, suggesting potential for further stock strength [4] Industry Context - HighPeak Energy is part of the Zacks Oil and Gas - Exploration and Production - United States industry [4] - Another company in the same industry, Range Resources (RRC), saw a 7.7% increase in its stock price, closing at $34.56, but has returned -14.3% over the past month [4]

Core Viewpoint - The article emphasizes the importance of value investing and highlights HighPeak Energy (HPK) as a strong value stock based on its metrics and Zacks Rank [2][4][6] Company Summary - HighPeak Energy (HPK) has a Zacks Rank of 1 (Strong Buy) and an A grade for Value, indicating strong potential for value investors [4] - The stock is currently trading at a P/E ratio of 7.11, significantly lower than the industry average of 10.80 [4] - HPK's Forward P/E has fluctuated between a high of 20.01 and a low of 6.70 over the past year, with a median of 10.25 [4] - The P/S ratio for HPK is 1.53, compared to the industry's average P/S of 2.04, suggesting that HPK may be undervalued [5] - Overall, the combination of these metrics indicates that HPK is likely undervalued and presents an impressive value opportunity at the moment [6]

Core Viewpoint - HighPeak Energy, Inc. (HPK) shows potential as a strong investment opportunity due to significant upward revisions in earnings estimates, indicating a positive earnings outlook and potential for continued stock price appreciation [1][2]. Earnings Estimate Revisions - Analysts have shown growing optimism regarding HighPeak Energy's earnings prospects, reflected in the upward trend of earnings estimate revisions, which historically correlate with stock price movements [2]. - For the current quarter, the earnings estimate is $0.37 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 45.83% over the last 30 days due to one upward revision and no negative revisions [5]. - For the full year, the expected earnings are $1.72 per share, representing a year-over-year increase of 156.72%, with a positive trend in estimate revisions as one estimate has moved up without any negative changes [6]. Zacks Rank and Performance - HighPeak Energy currently holds a Zacks Rank 1 (Strong Buy), indicating strong agreement among analysts on the positive earnings revisions, which historically lead to outperformance compared to the S&P 500 [3][7]. - Stocks with a Zacks Rank 1 have generated an average annual return of +25% since 2008, suggesting a favorable investment environment for HighPeak Energy [3]. Investment Outlook - The stock has appreciated by 5.9% over the past four weeks due to strong estimate revisions, and further upside potential remains, making it a candidate for portfolio addition [8].

Core Viewpoint - HighPeak Energy, Inc. reported quarterly earnings of $0.06 per share, missing the Zacks Consensus Estimate of $0.13 per share, and a significant decline from $0.66 per share a year ago [1][2] Financial Performance - The company experienced an earnings surprise of -53.85% for the quarter, having previously exceeded expectations in the prior quarter with earnings of $0.35 per share against an estimate of $0.23 per share, resulting in a positive surprise of 52.17% [2] - HighPeak Energy's revenues for the quarter were $234.81 million, falling short of the Zacks Consensus Estimate by 4.90%, and down from $301.15 million year-over-year [3] - Over the last four quarters, the company has surpassed consensus revenue estimates twice [3] 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% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.24 on revenues of $257.96 million, and for the current fiscal year, it is $1.01 on revenues of $1.05 billion [8] - The outlook for the industry, specifically the Oil and Gas - Exploration and Production - United States sector, is favorable, ranking in the top 13% of over 250 Zacks industries [9]