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]

Cash and Cash Equivalents - Cash and cash equivalents decreased to $135.573 million as of September 30, 2024, from $194.515 million as of December 31, 2023[13] - The company's cash and cash equivalents as of September 30, 2024, are $135.573 million, down 10.7% from $151.807 million at the end of 2023[19] - Cash and cash equivalents at the end of the period decreased to $135,573 in 2024 from $151,807 in 2023, a decline of 10.7%[19] Accounts Receivable - Accounts receivable decreased to $76.444 million as of September 30, 2024, from $94.589 million as of December 31, 2023[13] - Accounts receivable as of September 30, 2024, are $67.5 million, down 18.2% from $82.5 million at the end of 2023[26] - The company's accounts receivables primarily consist of amounts due from the sale of crude oil, NGL, and natural gas, totaling $67.5 million as of September 30, 2024[26] - Receivables related to contracts with purchasers were approximately $67.5 million as of September 30, 2024, down from $82.5 million as of December 31, 2023[46] Proved Properties - Proved properties increased to $3.798 billion as of September 30, 2024, from $3.338 billion as of December 31, 2023[13] - Capitalized exploratory/extension well costs increased by $103.7 million, with a reclassification of $126.2 million to proved properties, resulting in an ending balance of $18.1 million[77] Retained Earnings - Retained earnings increased to $432.446 million as of September 30, 2024, from $363.284 million as of December 31, 2023[13] - Retained earnings grew to $432.446 million as of September 30, 2024, compared to $271.827 million in the same period in 2023[15][17] Long-term Debt - Long-term debt decreased to $953.825 million as of September 30, 2024, from $1.030 billion as of December 31, 2023[13] - Long-term debt decreased from $1.15 billion as of December 31, 2023, to $1.07 billion as of September 30, 2024, with current maturities of $120 million[78] - The Term Loan Credit Agreement totals $1.2 billion with a 2.5% original issue discount of $30 million and $24 million in debt issuance costs, maturing on September 30, 2026[80] - The company had a $1.11 billion outstanding balance on the Term Loan Credit Agreement as of September 30, 2024[186] Total Current Liabilities - Total current liabilities decreased to $259.628 million as of September 30, 2024, from $287.393 million as of December 31, 2023[13] - Current liabilities totaled approximately $259.6 million as of September 30, 2024, down from $287.4 million as of December 31, 2023[42] Total Assets - Total assets slightly decreased to $3.061 billion as of September 30, 2024, from $3.081 billion as of December 31, 2023[13] - Total assets decreased from $3,080.79 million in December 2023 to $3,061.47 million in September 2024, a decline of 0.63%[13] Inventory - Inventory increased to $7.966 million as of September 30, 2024, from $7.254 million as of December 31, 2023[13] - Inventory as of September 30, 2024, is $8.0 million, up 9.6% from $7.3 million at the end of 2023[29] - The company's materials and supplies inventory as of September 30, 2024, is $8.0 million, with no valuation allowance recognized[29] Prepaid Expenses - Prepaid expenses increased to $3.921 million as of September 30, 2024, from $995,000 as of December 31, 2023[13] - Prepaid expenses as of September 30, 2024, are $3.9 million, a 290% increase from $1.0 million at the end of 2023[30] Total Stockholders' Equity - Total stockholders' equity increased to $1.606 billion as of September 30, 2024, from $1.553 billion as of December 31, 2023[13] - Stockholders' equity as of September 30, 2024, was $1,605.69 million, up from $1,455.10 million as of September 30, 2023[15][17] - The company's stockholders' equity increased to $1.60569 billion as of September 30, 2024, up from $1.455102 billion in the same period in 2023[15][17] Operating Revenues - Total operating revenues for the three months ended September 30, 2024, were $271.58 million, compared to $345.59 million in the same period in 2023[14] - Total operating revenues for the nine months ended September 2024 were $834.61 million, a 3.02% increase from $810.14 million in the same period in 2023[14] - Total operating revenues decreased by 21% to $271.58 million in Q3 2024 compared to $345.59 million in Q3 2023[161] Net Income - Net income for the three months ended September 30, 2024, was $49.93 million, up from $38.78 million in the same period in 2023[14] - Net income for 2024 is $86.088 million, compared to $120.862 million in 2023, representing a decrease of 28.8%[19] - Net income for the nine months ended September 2024 was $86.09 million, compared to $120.86 million in the same period in 2023, a decrease of 28.76%[14] - HighPeak Energy's net income for the nine months ended September 30, 2024, was $49.933 million, compared to $38.779 million for the same period in 2023[15][17] - Net income increased to $49.9 million ($0.35 per diluted share) for Q3 2024, up from $38.8 million in Q3 2023, driven by a $62.0 million gain in derivative instruments and a $27.3 million decrease in debt extinguishment loss[148] - Net income for the three months ended September 30, 2024, was $49.9 million, up from $38.8 million in the same period in 2023[194] Crude Oil Sales - Crude oil sales for the three months ended September 30, 2024, were $270.64 million, down from $338.37 million in the same period in 2023[14] - Crude oil sales for the nine months ended September 2024 were $827.60 million, up 4.70% from $790.46 million in the same period in 2023[14] - Crude oil realized price decreased by 8% to $75.99 per Bbl in Q3 2024 compared to $82.87 in Q3 2023[160] NGL and Natural Gas Sales - NGL and natural gas sales for the three months ended September 30, 2024, were $0.94 million, significantly lower than $7.21 million in the same period in 2023[14] - NGL sales volumes increased by 38% to 6,497 Bbls per day in Q3 2024, while natural gas sales volumes rose by 70% to 36,831 Mcf per day, driven by third-party midstream expansions[159] - Natural gas realized price dropped by 78% to $0.42 per Mcf in Q3 2024 from $1.89 in Q3 2023[160] Depletion, Depreciation, and Amortization (DD&A) - Depletion, depreciation, and amortization expenses for the three months ended September 30, 2024, were $136.58 million, up from $117.42 million in the same period in 2023[14] - Depletion, depreciation, and amortization expenses for the nine months ended September 2024 were $395.12 million, up 35.52% from $291.56 million in the same period in 2023[14] - DD&A expense increased by 16% to $136.58 million in Q3 2024 from $117.42 million in Q3 2023, driven by increased production and inflationary pressures[169] - The Company's DD&A expense increased by 19% to $28.91 per Boe in Q3 2024 due to inflationary pressures on capital costs, partially offset by a 3% decrease in daily sales volumes[149] Dividends - Dividends declared per share for the three months ended September 30, 2024, were $0.04, compared to $0.025 in the same period in 2023[14] - Dividends declared per share for the nine months ended September 2024 were $0.12, a 60.00% increase from $0.075 in the same period in 2023[14] - Quarterly dividend of $0.04 per share declared in August 2024, resulting in $5.0 million paid in September 2024[126] - Total of $5.0 million in dividends paid in June 2024 from a $0.04 per share dividend declared in May 2024[127] - $5.1 million in dividends paid in March 2024 from a $0.04 per share dividend declared in February 2024[128] - $3.2 million in dividends paid in August 2023 from a $0.025 per share dividend declared in July 2023[129] - $2.8 million in dividends paid in May 2023 from a $0.025 per share dividend declared in April 2023[130] - $2.8 million in dividends paid in February 2023 from a $0.025 per share dividend declared in January 2023[131] - HighPeak Energy declared dividends of $0.04 per share in Q3 2024, resulting in a total dividend payout of $5.082 million[15] Stock-based Compensation - Stock-based compensation costs for the three months ended September 30, 2024, were $3.75 million, down from $14.06 million in the same period in 2023[14] - Stock-based compensation expense for stock option awards was $86,000 for the nine months ended September 30, 2024, compared to $10.9 million in the same period in 2023[96] - Stock-based compensation expense decreased by 73% to $3.75 million in Q3 2024 from $14.06 million in Q3 2023[171] - Stock-based compensation costs included in net income for Q3 2024 were $3.753 million[15] Weighted Average Shares Outstanding - Weighted average shares outstanding (diluted) for the three months ended September 30, 2024, were 129.09 million, compared to 127.01 million in the same period in 2023[14] - The company's diluted weighted average shares outstanding for the nine months ended September 30, 2024, were 129.581 million, compared to 120.531 million for the same period in 2023[122] Net Cash Provided by Operating Activities - Net cash provided by operating activities in 2024 is $550.873 million, up 5.6% from $521.742 million in 2023[19] - Net cash provided by operating activities increased to $550.873 million for the nine months ended September 2024, a 6% rise from $521.742 million in 2023[183] - Cash provided by operating activities increased to $177.1 million in Q3 2024, up from $158.1 million in Q3 2023[153] Additions to Crude Oil and Natural Gas Properties - Additions to crude oil and natural gas properties in 2024 total $452.148 million, a 46.2% decrease from $840.663 million in 2023[19] - Additions to crude oil and natural gas properties decreased to $452,148 in 2024 from $840,663 in 2023, a reduction of 46.2%[19] Net Cash Used in Investing Activities - Net cash used in investing activities decreased to $(475.827) million for the nine months ended September 2024, a 49% reduction from $(937.245) million in 2023[183] - Net cash used in investing activities decreased to $475,827 in 2024 from $937,245 in 2023, a reduction of 49.2%[19] Net Cash Used in Financing Activities - Net cash used in financing activities was $133,988 in 2024, compared to net cash provided by financing activities of $536,806 in 2023[19] Cash Paid for Interest - Cash paid for interest increased to $117,018 in 2024 from $93,549 in 2023, a rise of 25.1%[19] Major Customers - Sales to the largest purchaser account for 76% of total crude oil, NGL, and natural gas sales revenues for the nine months ended September 30, 2024[28] - The company's major customers, Delek and Energy Transfer Crude Marketing, LLC (ETC), accounted for 76% and 19% of revenues respectively for the nine months ended September 30, 2024, and 73% and 23% for the same period in 2023[112] Other Property and Equipment - The company's other property and equipment, net of accumulated depreciation, was $3.483 million as of September 30, 2024, compared to $3.572 million as of December 31, 2023[38] Aid-in-Construction Assets - The company had aid-in-construction assets totaling $14.7 million as of September 30, 2024, up from $5.2 million as of December 31, 2023[40] Debt Issuance Costs - The company incurred $25.1 million in debt issuance costs, with $58,000 incurred during the nine months ended September 30, 2024[43] - The company realized $64.8 million in original issue discounts on the issuance of its Term Loan Credit Agreement, 10.000% Senior Notes, and 10.625% Senior Notes[43] Texas Margin Tax - The company recognized $519,000 in current Texas Margin Tax during the nine months ended September 30, 2024, compared to zero in the same period in 2023[56] - The company recognized a net deferred Texas margin tax liability of $8.3 million as of September 30, 2024, compared to $6.0 million as of December 31, 2023[119] Crude Oil Marketing Contracts - The company's crude oil marketing contracts transfer physical custody and title at or near the wellhead, with revenue recognized based on market-based pricing adjusted for delivery location and crude oil quality[47] Natural Gas Sales Contracts - The majority of the company's natural gas is sold at the lease location, with revenue recognized as the net amount received from the purchaser under percentage of proceeds or hybrid contracts[48] Derivatives - The company's derivatives are accounted for as non-hedge derivatives and are recorded at estimated fair value, with changes in fair value recorded as gains or losses in the periods they occur[50] - As of September 30, 2024, the company's recurring fair value measurements for commodity price derivatives totaled $22.9 million, with $24.8 million in assets and $1.9 million in liabilities[68] - The company recorded a noncash derivative gain of $33.8 million for the three months ended September 30, 2024, compared to a loss of $15.9 million in the same period of 2023[73] - The company's outstanding NYMEX WTI Cushing crude oil derivative contracts for October-December 2024 include 8,500 barrels per day at a swap price of $74.12 per barrel[74] - Net derivative assets associated with the company's open commodity derivative instruments totaled $22.9 million as of September 30, 2024, with Mercuria Energy Trading SA holding the largest share at $11.8 million[75] - The company's crude oil production derivatives are tied to NYMEX WTI Cushing and Argus WTI Midland prices, with Argus WTI Midland basis swaps used to manage price volatility[73] - The company's fair value measurements are based on a three-level hierarchy, with Level 1 using quoted prices in active markets and Level 3 relying on unobservable inputs and model-based techniques[67] - The Company's derivative financial instruments had a net asset value of $22.9 million as of September 30, 2024, with a net derivative loss of $23.4 million recognized during the nine months ended September 30, 2024[154] - Noncash gain on derivative instruments, net, was $33.775 million for the three months ended September 2024, a 313% increase from $(15.883) million in 2023[174] Acquisition Costs - The company incurred $10.4 million in acquisition costs for the nine months ended September 30, 2024, primarily for undeveloped crude oil and natural gas leases[65] - $10.4 million incurred in acquisition costs for lease extensions and additional acreage during the nine months ended September 30, 2024[140] FASB Standards and SEC Climate Rules - The company is evaluating the impact of new FASB standards on income tax disclosures (ASU 2023-09) and segment reporting (ASU 2023-07), which will be effective for annual periods beginning after December 15, 2024 and December 15, 2023, respectively[61][62] - The company is assessing the potential impact of the SEC's

FORT WORTH, Texas, Nov. 04, 2024 (GLOBE NEWSWIRE) -- HighPeak Energy, Inc. (“HighPeak” or the “Company”) (NASDAQ: HPK) today announced financial and operating results for the quarter and nine months ended September 30, 2024, and provided updated 2024 production guidance. Highlights Third Quarter 2024 Sales volumes averaged 51,346 barrels of crude oil equivalent per day (“Boe/d”), consisting of 88% liquids (crude oil and NGL), representing a 6% increase over the second quarter 2024.Net income was $49.9 mill ...

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 September 2024. 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 earnings report, which is expected to be released on November 4, 2024, might help the stock move higher if these key numbers are b ...

FORT WORTH, Texas, Oct. 15, 2024 (GLOBE NEWSWIRE) -- HighPeak Energy, Inc. (NASDAQ: HPK) ("HighPeak Energy"), today announced that it plans to release its 2024 third quarter financial and operating results after the close of trading on Monday, November 4, 2024. HighPeak Energy will host a conference call and webcast on Tuesday, November 5, 2024 at 10:00 a.m. Central Time for investors and analysts to discuss its 2024 third quarter financial results and operational highlights. Participants may register for t ...

Core Viewpoint - HighPeak Energy, Inc. is expected to report a year-over-year increase in earnings and revenues for the quarter ended June 2024, with a consensus EPS estimate of $0.50, reflecting a 78.6% increase from the previous year, and revenues projected at $281.49 million, up 16.9% [1][3][4]. Earnings Expectations - The upcoming earnings report is anticipated to be released on August 5, and the stock price may rise if actual results exceed expectations, while a miss could lead to a decline [2]. - The consensus EPS estimate has been revised 8.16% higher in the last 30 days, indicating a positive reassessment by analysts [5]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for HighPeak Energy matches the consensus estimate, resulting in an Earnings ESP of 0% [11]. - The stock currently holds a Zacks Rank of 4, suggesting a less favorable outlook for beating the consensus EPS estimate [12][13]. Historical Performance - In the last reported quarter, HighPeak Energy was expected to post earnings of $0.39 per share but delivered $0.37, resulting in a surprise of -5.13% [14]. - Over the past four quarters, the company has only beaten consensus EPS estimates once [15]. Industry Context - In comparison, Coterra Energy is expected to report earnings of $0.40 per share for the same quarter, indicating a year-over-year change of +2.6%, with revenues projected at $1.35 billion, up 13.6% [21].

Company Overview - HighPeak Energy is a publicly traded independent oil and natural gas company headquartered in Fort Worth, Texas [2] - The company focuses on the acquisition, development, exploration, and exploitation of oil and natural gas reserves in the Midland Basin in West Texas [2] Upcoming Events - HighPeak Energy plans to release its 2024 second quarter financial and operating results after the close of trading on Monday, August 5, 2024 [2] - A conference call and webcast will be hosted on Tuesday, August 6, 2024, at 10:00 a.m. Central Time for investors and analysts to discuss the financial results and operational highlights [1] Investor Information - Participants can register for the conference call and access the live audio-only webcast and replay through HighPeak Energy's website [1] - The live broadcast of the earnings conference call will also be available on the company's website under the "Investors" section [1]

Company Overview - HighPeak Energy, Inc. is a publicly traded independent oil and natural gas company headquartered in Fort Worth, Texas [3] - The company focuses on the acquisition, development, exploration, and exploitation of oil and natural gas reserves in the Midland Basin in West Texas [3] Upcoming Financial Results - HighPeak Energy plans to release its 2024 second quarter financial and operating results after the close of trading on August 5, 2024 [2] - A conference call and webcast will be hosted on August 6, 2024, at 10:00 a.m. Central Time to discuss the financial results and operational highlights [3]

Group 1: Core Insights - The article highlights three low-beta energy stocks that are recommended for investment, specifically HighPeak Energy Inc, Vitesse Energy Inc, and Transportadora de Gas del Sur SA, all of which have a Zacks Rank of 1 or 2 and a beta lower than 1 [2][4] - The energy market has shown extreme volatility, particularly since the onset of the coronavirus pandemic, with oil prices fluctuating significantly, including a drop to negative $36.98 per barrel in April 2020 and a rise to $123.64 per barrel in March 2022 [5][9] - The importance of low-beta stocks is emphasized as they can provide robust returns while mitigating risks associated with market turbulence, making them suitable for building a resilient investment portfolio [8] Group 2: Company-Specific Insights - HighPeak Energy is positioned to benefit from favorable crude pricing, with an expected earnings growth of nearly 21% this year, indicating strong performance potential [7] - Transportadora de Gas del Sur SA has a significant midstream asset portfolio, featuring the largest natural gas pipeline network in Latin America, which generates stable fee-based revenues by transporting over 60% of the gas consumed in Argentina [11] - Vitesse Energy holds interests in 6,932 productive wells primarily in the Bakken region of North Dakota, providing a solid production outlook, contingent on favorable crude pricing [13]