Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, particularly in the financial sector, to achieve exceptional returns [1] Group 1: Growth Metrics - HighPeak Energy has a historical EPS growth rate of 81.9%, with projected EPS growth of 20.7% this year, significantly outperforming the industry average of -5.4% [4] - The company's annualized cash flow growth rate over the past 3-5 years is 176.7%, compared to the industry average of 11.6% [12] - Current-year earnings estimates for HighPeak Energy have increased by 24.4% over the past month [13] Group 2: Cash Flow Analysis - Year-over-year cash flow growth for HighPeak Energy stands at 41.6%, which is notably higher than the industry average of -19.1% [15] - Higher-than-average cash flow growth is crucial for growth-oriented companies, allowing them to expand without relying on external funding [5] Group 3: Investment Recommendation - HighPeak Energy is recommended as a potential outperformer for growth investors, supported by a favorable Growth Score and a Zacks Rank of 2 (Buy) [7][17] - The combination of strong earnings growth, significant cash flow growth, and positive earnings estimate revisions positions HighPeak Energy as a compelling growth stock [10][16]

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers. Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional va ...

Core Insights - HighPeak Energy has launched the WildHorse Solar Farm, a 9.9 MW solar facility aimed at reducing greenhouse gas emissions and lowering operational costs [1][2][4]. Company Overview - HighPeak Energy, Inc. is an independent oil and natural gas company based in Fort Worth, Texas, focusing on unconventional crude oil and natural gas reserves in the Midland Basin [6]. Project Details - The WildHorse Solar Farm will generate 26,806 MWs of electricity annually, sufficient to power nearly 3,700 homes, while reducing over 18 million metric tons of carbon dioxide emissions [2]. - The project is designed to minimize capital costs for shareholders, as it is developed and operated by Priority Power Management [4]. Market Context - Power prices in Texas are expected to rise significantly over the next decade, with competition among various energy users intensifying [3]. - The value of power has already increased by $100 million for 100 megawatts over the next 10 years, indicating a trend of escalating energy costs [3]. Environmental Commitment - HighPeak Energy emphasizes its commitment to environmental stewardship through the development of renewable energy infrastructure, which will also help in reducing operational expenses [5].

Core Insights - HighPeak Energy has launched the WildHorse Solar Farm, a 9.9 MW solar facility aimed at reducing greenhouse gas emissions and lowering operational costs [1][2][4]. Company Overview - HighPeak Energy, Inc. is an independent oil and natural gas company based in Fort Worth, Texas, focusing on unconventional crude oil and natural gas reserves in the Midland Basin [6]. Project Details - The WildHorse Solar Farm will generate 26,806 MWs of electricity annually, sufficient to power nearly 3,700 homes and reduce over 18 million metric tons of carbon dioxide emissions [2]. - The project is developed and managed by Priority Power Management, which handled the entire process from design to construction [4][8]. Economic Impact - The solar facility is expected to significantly reduce HighPeak's power costs and protect the company from volatile summer power prices [5]. - The value of power in Texas is projected to increase, with a notable rise of $100 million for 100 MW over the next decade [3]. Environmental Commitment - HighPeak Energy emphasizes its commitment to sustainability and reducing its carbon footprint through renewable energy initiatives [5].

Shares of HighPeak Energy, Inc. (HPK) have gained 3% over the past four weeks to close the last trading session at $15.71, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $22.17 indicates a potential upside of 41.1%.The mean estimate comprises three short-term price targets with a standard deviation of $11.03. While the lowest estimate of $10 indicates a 36.4% decline from the c ...

Financial Data and Key Metrics Changes - The company generated positive free cash flow from operations for the third consecutive quarter, with a free cash flow increase of 42% compared to the last quarter, totaling over $150 million in the last three quarters [16][46]. - The unhedged first quarter EBITDAX margin was $52.68 per BOE, approximately 70% higher than the public peer average and over 30% higher than the closest peer [11][12]. - Operating expenses saw a 16% decrease in LOE per BOE, down to $6.30, while absolute dollars spent on LOE were roughly $200,000 lower than Q1 2023 despite increased production [17][20]. Business Line Data and Key Metrics Changes - The company maintained average production levels at approximately 50,000 barrels per day, consistent with the previous quarter [17]. - The capital investment in infrastructure is expected to yield significant dividends, improving EBITDAX margins and lowering well breakeven costs [21]. Market Data and Key Metrics Changes - The company’s focus on high oil cut production, with only 1% of revenue from gas, positions it competitively in the market, especially as gas prices remain low [38][99]. - The company anticipates moving more locations into the sub-$50 per barrel breakeven category as costs are driven down [26]. Company Strategy and Development Direction - The company is committed to disciplined operations, strengthening its balance sheet, and maximizing shareholder value through increased dividends and share buybacks [15][6]. - The strategic focus includes maintaining capital discipline while exploring opportunities for increased drilling activity if oil prices stabilize [65][66]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational performance and the ability to generate free cash flow, emphasizing the importance of maintaining capital discipline [29][57]. - The company is optimistic about its extensive inventory of oil-rich, low-cost locations, which will be converted into free cash flow for shareholders [55][93]. Other Important Information - The company has invested in a solar farm to enhance its electrical system, which is expected to reduce power costs significantly [10][96]. - The infrastructure built is designed for the life of the field, allowing for scalability and efficiency in operations [42][89]. Q&A Session Summary Question: Can you provide more detail on the chemical program's efficiency? - The chemical program has seen improvements due to infrastructure investments, reducing treatment costs for recycled water by about half compared to six months ago [34][35]. Question: What is the company's approach to increasing drilling activity? - The company plans to be cautious and slow in increasing activity, ensuring that any additional rigs are supported by free cash flow [66][86]. Question: Is there flexibility in the term loan repayment? - The company has the ability to accelerate repayments under the term loan without penalties after 15 months, depending on free cash flow and market conditions [73][75]. Question: How does the company view its inventory and potential for future production? - The company believes it can significantly increase production with its existing inventory and infrastructure, potentially doubling production levels in the right market conditions [30][74].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported): May 9, 2024 HighPeak Energy, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation) Delaware 001-39464 84-3533602 (Commission File Number) (IRS Employer Identification No.) ☐ Written communication pursuant to Rule 425 under the Securities Act ...

[PART I. FINANCIAL INFORMATION](index=10&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=10&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Unaudited Q1 2024 financials reflect a decline in total assets, a sharp drop in net income, and reduced operating cash flow [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows a slight decrease in total assets to **$3.05 billion**, stable liabilities, and a minor reduction in equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $298,975 | $328,833 | | **Total Crude Oil and Natural Gas Properties, net** | $2,745,658 | $2,726,643 | | **Total Assets** | **$3,054,692** | **$3,080,791** | | **Total Current Liabilities** | $287,961 | $287,393 | | **Long-term Debt, net** | $1,004,798 | $1,030,299 | | **Total Liabilities** | $1,506,255 | $1,528,070 | | **Total Stockholders' Equity** | $1,548,437 | $1,552,721 | [Condensed Consolidated Statements of Operations](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2024 operating revenues increased to **$287.8 million**, but net income plummeted to **$6.4 million** due to derivative losses Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Total Operating Revenues** | $287,764 | $223,794 | | **Income from Operations** | $103,020 | $88,586 | | **Gain (loss) on derivative instruments, net** | $(53,043) | $3,120 | | **Net Income** | **$6,438** | **$50,257** | | **Basic Net Income per Share** | $0.05 | $0.41 | | **Diluted Net Income per Share** | $0.05 | $0.39 | [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2024 saw net cash from operations decrease to **$171.4 million**, while investing outflows significantly reduced to **$148.2 million** Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $171,439 | $190,006 | | **Net cash used in investing activities** | $(148,223) | $(319,522) | | **Net cash (used in) provided by financing activities** | $(44,351) | $146,548 | | **Net (decrease) increase in cash** | $(21,135) | $17,032 | | **Cash and cash equivalents, end of period** | $173,380 | $47,536 | [Notes to Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, derivative losses, **$1.2 billion** long-term debt, commodity commitments, and a **$75 million** stock repurchase program - The company utilizes commodity swaps, deferred premium put options, and enhanced collars to manage price volatility. As of March 31, 2024, the fair value of these instruments was a net liability of **$13.5 million**[85](index=85&type=chunk)[154](index=154&type=chunk) - The company's long-term debt is primarily composed of a **$1.2 billion** Term Loan Credit Agreement entered into in September 2023, which matures in September 2026 and requires quarterly principal payments of **$30.0 million** starting March 31, 2024[91](index=91&type=chunk)[93](index=93&type=chunk)[95](index=95&type=chunk) - In February 2024, the Board approved a stock repurchase program to acquire up to **$75.0 million** of common stock. During Q1 2024, the company repurchased approximately **$8.8 million** of its common stock[133](index=133&type=chunk) - The company has a crude oil marketing contract with a minimum volume commitment, which increases to **10,000 Bopd** for the final eight years of the contract. As of March 31, 2024, the company has delivered approximately **81%** of the total contracted volume for the life of the contract[116](index=116&type=chunk) [Item 2. 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 2024 production growth, revenue increase, and sharp net income decline due to derivative losses and higher expenses - The Board initiated a process to evaluate strategic alternatives, including a potential sale of the company, on January 23, 2023. The process remains in a preliminary, exploratory stage[151](index=151&type=chunk) - The 2024 capital budget is projected to be between **$450 million** and **$525 million** for drilling and completions, plus **$50 million** to **$60 million** for infrastructure. This will be funded by cash on hand, operating cash flow, and borrowings[174](index=174&type=chunk) EBITDAX Reconciliation (Non-GAAP, in thousands) | Line Item | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Net Income** | $6,438 | $50,257 | | Interest Expense | $43,634 | $26,972 | | Income Tax Expense | $2,297 | $14,507 | | Depletion, Depreciation and Amortization | $130,850 | $81,131 | | Derivative related noncash activity | $47,895 | $(5,314) | | **EBITDAX** | **$233,258** | **$173,859** | [Operations and Drilling Highlights](index=42&type=section&id=Operations%20and%20Drilling%20Highlights) Q1 2024 average daily sales volumes increased **34%** to **49,729 Boe/d**, with **91%** liquids, supported by active drilling and completion programs Average Daily Sales Volumes | Product | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Crude Oil (Bbls) | 39,959 | 31,507 | 27% | | NGL (Bbls) | 5,147 | 3,280 | 57% | | Natural Gas (Mcf) | 27,733 | 14,611 | 90% | | **Total (Boe)** | **49,729** | **37,222** | **34%** | - During Q1 2024, the company drilled **25 gross (18.1 net)** wells and completed **12 gross (12.0 net)** horizontal wells. As of quarter-end, **28 gross** wells were in various stages of completion[156](index=156&type=chunk)[158](index=158&type=chunk) [Results of Operations Analysis](index=43&type=section&id=Results%20of%20Operations%20Analysis) Q1 2024 operating revenues rose due to higher volumes, while production costs decreased, but DD&A, G&A, and interest expenses increased Key Operating Metrics per Boe | Metric per Boe | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | **Average Realized Price (ex-derivatives)** | $63.59 | $66.80 | (5)% | | **Production Costs (ex-workovers)** | $6.30 | $8.57 | (26)% | | **DD&A Expense** | $28.92 | $24.22 | 19% | | **General & Administrative Expense** | $1.04 | $0.75 | 39% | - Interest expense increased by **62%** to **$43.6 million** in Q1 2024, driven by a higher debt balance from the new Term Loan Credit Agreement and higher prevailing interest rates[168](index=168&type=chunk)[169](index=169&type=chunk) - The company recorded a net loss on derivative instruments of **$53.0 million** in Q1 2024, compared to a **$3.1 million** gain in Q1 2023, marking a significant negative impact on net income[170](index=170&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=52&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from commodity price volatility and interest rate fluctuations, using derivatives to mitigate price risk - A **$1.00/Bbl** change in crude oil price would impact annualized revenues by approximately **$15.1 million**, excluding derivative effects[193](index=193&type=chunk) - A **1%** increase in interest rates would increase annual interest expense by approximately **$11.7 million** based on debt levels at March 31, 2024[201](index=201&type=chunk) - The company uses derivative instruments to hedge a portion of its production to reduce cash flow volatility and support its capital program, as required by its credit agreements[194](index=194&type=chunk) [Item 4. Controls and Procedures](index=54&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls in Q1 2024 - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[202](index=202&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls[203](index=203&type=chunk) [PART II. OTHER INFORMATION](index=54&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=54&type=section&id=Item%201.%20Legal%20Proceedings) The company is not party to any legal proceedings expected to materially adversely affect its financial position or operations - The company believes that the liability from any current incidental proceedings and claims will not have a material adverse effect on its consolidated financial position[205](index=205&type=chunk) [Item 1A. Risk Factors](index=54&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have occurred since the last Annual Report on Form 10-K - The report states there has been no material change in the Company's risk factors from those described in its Annual Report[206](index=206&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=55&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details of the company's stock repurchase activity, including the **$75.0 million** program approved in February 2024 Issuer Purchases of Equity Securities (March 2024) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Approximate Dollar Value of Shares that May Yet to Be Purchased (in thousands) | | :--- | :--- | :--- | :--- | | March 1, 2024 - March 31, 2024 | 565,540 | $15.50 | $66,236 | - The board of directors approved a stock repurchase program for up to **$75.0 million** in February 2024, which expires on December 31, 2024[208](index=208&type=chunk) [Item 5. Other Information](index=55&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated Rule 10b5-1 trading arrangements during Q1 2024 - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended March 31, 2024[209](index=209&type=chunk) [Item 6. Exhibits](index=56&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate governance documents and material contracts

Wall Street expects flat earnings compared to the year-ago quarter on higher revenues when HighPeak Energy, Inc. (HPK) reports results for the quarter ended March 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on May 8, 2024, might help the stock move higher if these key numbers are be ...

FORT WORTH, Texas, April 24, 2024 (GLOBE NEWSWIRE) -- HighPeak Energy, Inc. (NASDAQ: HPK) (“HighPeak Energy”), today announced that it plans to release its 2024 first quarter financial and operating results after the close of trading on Wednesday, May 8, 2024. HighPeak Energy will host a conference call and webcast on Thursday, May 9, 2024 at 10:00 a.m. Central Time for investors and analysts to discuss its 2024 first quarter financial results and operational highlights. Participants may register for the ca ...