[Definitions of Certain Terms and Conventions Used Herein](index=4&type=section&id=Definitions%20of%20Certain%20Terms%20and%20Conventions%20Used%20Herein) This section defines technical terms, abbreviations, and conventions specific to the oil and gas industry and the company's financial reporting - This section defines technical terms, abbreviations, and conventions specific to the oil and gas industry and the company's financial reporting used throughout the document[11](index=11&type=chunk) - Key defined terms include **Boe** (Barrel of oil equivalent) for comparing crude oil and natural gas volumes, **Proved reserves** as economically producible quantities, and **PV-10** as a non-GAAP present value measure of future gross revenue[11](index=11&type=chunk)[18](index=18&type=chunk)[20](index=20&type=chunk) [Cautionary Statement Concerning Forward-Looking Statements](index=10&type=section&id=Cautionary%20Statement%20Concerning%20Forward-Looking%20Statements) This section warns that the report contains forward-looking statements subject to significant risks and uncertainties, advising against undue reliance - The report contains forward-looking statements based on current expectations and projections, subject to significant risks and uncertainties, advising readers not to place undue reliance[23](index=23&type=chunk) - Key factors that could cause actual results to differ include the **COVID-19 pandemic's impact**, **geopolitical instability**, **commodity price volatility**, **drilling risks**, and **capital availability**[24](index=24&type=chunk) - Reserve estimates are inherently uncertain and may differ significantly from the quantities of oil and gas ultimately recovered[26](index=26&type=chunk) [PART I. FINANCIAL INFORMATION](index=12&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Condensed Consolidated Financial Statements (Unaudited)](index=12&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for Q1 2022, including balance sheets, operations, equity, and cash flows [Condensed Consolidated Balance Sheets](index=12&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$1,144,718** | **$818,960** | | Total current assets | $101,133 | $86,954 | | Total crude oil and natural gas properties, net | $1,037,433 | $725,615 | | **Total Liabilities** | **$448,444** | **$274,097** | | Total current liabilities | $179,646 | $103,000 | | Long-term debt, net | $203,197 | $97,929 | | **Total Stockholders' Equity** | **$693,881** | **$553,063** | [Condensed Consolidated Statements of Operations](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Account | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | Total operating revenues | $92,229 | $25,717 | | Income from operations | $54,574 | $5,912 | | Derivative loss, net | $(66,394) | $— | | **Net income (loss)** | **$(16,510)** | **$4,744** | | **Diluted earnings (loss) per share** | **$(0.17)** | **$0.05** | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=14&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) - Stockholders' equity increased from **$553.1 million** at year-end 2021 to **$693.9 million** by March 31, 2022, driven by **$156.6 million** in share issuance for an acquisition, partially offset by a **$16.5 million** net loss and **$2.4 million** in dividends[33](index=33&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=15&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $49,947 | $11,373 | | Net cash used in investing activities | $(150,899) | $(31,921) | | Net cash provided by financing activities | $101,933 | $10,634 | | **Net increase (decrease) in cash** | **$981** | **$(9,914)** | [Notes to Condensed Consolidated Financial Statements](index=16&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - **Acquisitions (Note 3):** In Q1 2022, the company incurred **$162.9 million** in acquisition costs for properties, paid with cash and **6.96 million** shares valued at **$156.6 million**[81](index=81&type=chunk) - **Debt (Note 7):** In February 2022, **$225.0 million** of 10.00% senior unsecured notes were issued to repay the Revolving Credit Facility, reducing its borrowing base to **$138.8 million**[98](index=98&type=chunk)[102](index=102&type=chunk) - **Derivatives (Note 5):** As of March 31, 2022, a net derivative liability of **$57.1 million** existed from crude oil swap contracts, resulting in a **$66.4 million** total derivative loss in Q1 2022, including **$41.6 million** non-cash and **$24.8 million** cash settlements[91](index=91&type=chunk)[93](index=93&type=chunk)[154](index=154&type=chunk) - **Subsequent Events (Note 16):** In April 2022, an agreement was signed to acquire Hannathon Petroleum properties for **$255.0 million** in cash and approximately **3.8 million** shares, expected to close in Q3 2022[135](index=135&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2022 performance, including increased sales, derivative-driven net loss, acquisitions, financing, and the revised capital budget - Q1 2022 financial performance resulted in a net loss of **$16.5 million**, down from **$4.7 million** net income in Q1 2021, primarily due to a **$66.4 million** net derivative loss offsetting a **$66.5 million** increase in operating revenues[143](index=143&type=chunk) Production and Price Changes (YoY) | Metric | Q1 2022 | Q1 2021 | % Change | | :--- | :--- | :--- | :--- | | Avg. Daily Sales (Boe/d) | 12,052 | 5,290 | +128% | | Avg. Realized Price ($/Boe) | $85.03 | $54.01 | +57% | - The revised 2022 capital budget is approximately **$790 million to $860 million** for drilling and infrastructure, excluding acquisitions, to be funded by cash, operating cash flow, and debt/equity offerings[173](index=173&type=chunk) Reconciliation of Net Income (Loss) to EBITDAX (Non-GAAP, in thousands) | Metric | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Net income (loss) | $(16,510) | $4,744 | | Adjustments | $67,586 | $15,323 | | **EBITDAX** | **$51,076** | **$20,067** | - As of March 31, 2022, the company had **$35.9 million** in unrestricted cash and **$136.8 million** available under its Revolving Credit Facility, indicating significant liquidity[171](index=171&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=52&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is commodity price volatility, mitigated by derivatives, also managing counterparty and customer credit risks - The company's main market risk is commodity price volatility; a **$1.00** per barrel change in crude oil price would have impacted annualized Q1 2022 revenues by approximately **$3.8 million**[187](index=187&type=chunk)[188](index=188&type=chunk) - To manage price risk, the company uses commodity derivative instruments, primarily hedges, to reduce cash flow variability and support the capital program, not for speculative purposes[189](index=189&type=chunk) Outstanding Crude Oil Swap Contracts as of March 31, 2022 | Period | Volume (MBbls) | Weighted Avg. Swap Price/Bbl | | :--- | :--- | :--- | | Remainder of 2022 | 1,983.6 | $72.25 | | 2023 | 641.2 | $66.04 | [Controls and Procedures](index=54&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2022, with no material changes to internal controls - The principal executive and financial officers concluded that the company's disclosure controls and procedures were effective as of March 31, 2022[195](index=195&type=chunk) - No material changes occurred in the company's internal control over financial reporting during Q1 2022[196](index=196&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 anticipates no material adverse effect on its financial position, liquidity, or operations - The company, while party to various legal proceedings, does not anticipate a material adverse effect on its consolidated financial position, liquidity, or future results[198](index=198&type=chunk) [Risk Factors](index=55&type=section&id=Item%201A.%20Risk%20Factors) This section highlights new material risks related to geopolitical instability, particularly the war in Ukraine, in addition to existing risk factors - No material changes to risk factors from the 2021 Annual Report are noted, except for those related to geopolitical instability[199](index=199&type=chunk) - A new risk factor is the ongoing war between Russia and Ukraine, potentially causing supply chain disruptions, heightened oil and gas price volatility, and negative impacts on capital raising[200](index=200&type=chunk)[201](index=201&type=chunk) [Exhibits](index=56&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate governance, debt instruments, and Sarbanes-Oxley certifications - The report includes a list of filed exhibits, such as amendments to the Credit Agreement, the Indenture for the Senior Notes, and Sarbanes-Oxley Act certifications[204](index=204&type=chunk)[205](index=205&type=chunk) [Signatures](index=59&type=section&id=Signatures) - The report was signed on May 16, 2022, by Steven Tholen, Chief Financial Officer, and Keith Forbes, Vice President and Chief Accounting Officer[209](index=209&type=chunk)

HighPeak Energy, Inc. (NASDAQ:HPK) Q4 2021 Earnings Conference Call March 8, 2022 11:00 AM ET Company Participants Steven Tholen - Chief Financial Officer Jack Hightower - Chief Executive Officer Michael Hollis - President Conference Call Participants John White - ROTH Capital Partners Nicholas Pope - Seaport Research Jeff Robertson - Water Tower Research Operator Thank you for standing by, and welcome to the HighPeak Energy’s Fourth Quarter 2021 Earnings Conference Call. At this time, all participants are ...

| --- | --- | --- | --- | --- | --- | --- | |-------|----------|-------|-------|-------|-------|-------| | | | | | | | | | E | HIGHH N | | R | G | | | 4Q21 Presentation March 2022 DISCLAIMER •FORWARD-LOOKING STATEMENTS •The information in this presentation and in any oral statements made in connection herewith contains forward-looking statements that involve risks and uncertainties. When used in or in connection with this document, the words "believes," "plans," "expects," "anticipates," "forecasts," "inten ...

Part I [Items 1 and 2. Business and Properties](index=15&type=section&id=Items%201%20and%202%2E%20Business%20and%20Properties) HighPeak Energy is an independent oil and gas company focused on Midland Basin reserves, operating two main land positions with a four-rig drilling program, subject to extensive competition and regulation - The company's assets are primarily located in Howard County, Texas, within the Midland Basin, consisting of two main contiguous areas: Flat Top (northern) and Signal Peak (southern)[33](index=33&type=chunk) Acreage and Operational Overview (as of Dec 31, 2021) | Metric | Value | | :--- | :--- | | Gross Acres | 82,023 | | Net Acres | 62,603 | | Average Working Interest | ~76% | | Operated Net Acreage | ~90% | | Held by Production | ~44% | - HighPeak Energy's development strategy focuses on horizontal drilling in the Wolfcamp A and Lower Spraberry formations, utilizing multi-well pads to enhance efficiency and returns[35](index=35&type=chunk) - As of year-end 2021, the company was operating with four drilling rigs and two frac crews to develop its properties[42](index=42&type=chunk) - For the year ended December 31, 2021, Lion Oil Trading and Transportation, LLC accounted for **94%** of the company's revenues, representing a significant customer concentration[77](index=77&type=chunk) [Properties and Reserves](index=16&type=section&id=Properties%20and%20Reserves) The company's Midland Basin properties saw substantial growth in proved reserves to **64,213 MBoe** in 2021, with PV-10 value surging to **$1.34 billion** due to increased drilling and higher commodity prices Proved Reserve Summary | As of Date | Proved Total (MBoe) | % Crude Oil & NGL | % Developed | | :--- | :--- | :--- | :--- | | **December 31, 2021** | 64,213 | 92% | 45% | | **December 31, 2020** | 22,515 | 94% | 46% | Proved Undeveloped Reserves (PUDs) Development | Period | PUDs at Start (MBoe) | Extensions & Discoveries (MBoe) | Conversions to Proved Developed (MBoe) | PUDs at End (MBoe) | | :--- | :--- | :--- | :--- | :--- | | **FY 2021** | 12,233 | 26,806 | (3,186) | 35,628 | PV-10 and Standardized Measure (in thousands) | As of December 31 | PV-10 (Present Value of Estimated Future Net Cash Flows, in thousands) | Standardized Measure (in thousands) | | :--- | :--- | :--- | | **2021** | $1,338,193 | $1,118,809 | | **2020** | $235,490 | $222,192 | [Production and Acreage](index=21&type=section&id=Production%20and%20Acreage) In 2021, average net daily sales volumes significantly increased to **9,304 Boepd**, with the company holding **62,603 net acres** and planning to retain expiring undeveloped acreage through drilling Average Net Daily Sales Volumes | Year | Average Net Daily Sales (Boepd) | | :--- | :--- | | **2021** | 9,304 | | **2020** | 1,925 | Acreage Summary (as of Dec 31, 2021) | Acreage Type | Gross Acres | Net Acres | | :--- | :--- | :--- | | **Developed** | 38,282 | 25,600 | | **Undeveloped** | 43,741 | 37,003 | | **Total** | 82,023 | 62,603 | - The company has **21,155** net undeveloped acres expiring in 2022, which it intends to retain through drilling, completions, and lease renewals/extensions[68](index=68&type=chunk) [Regulation of the Crude Oil and Natural Gas Industry](index=27&type=section&id=Regulation%20of%20the%20Crude%20Oil%20and%20Natural%20Gas%20Industry) Operations are subject to extensive federal, state, and local regulations covering production, environmental protection, and safety, with evolving rules on hydraulic fracturing and emissions posing cost and operational risks - Operations are substantially affected by federal, state, and local laws governing drilling permits, well spacing, surface use, water disposal, and well abandonment[88](index=88&type=chunk)[89](index=89&type=chunk) - The company is subject to stringent environmental laws such as CERCLA (Superfund), RCRA, the Clean Water Act, and the Clean Air Act, which impose significant compliance costs and potential liabilities for pollution[105](index=105&type=chunk)[108](index=108&type=chunk)[111](index=111&type=chunk)[117](index=117&type=chunk) - Federal and state agencies are increasingly regulating methane emissions from oil and gas operations. The EPA has proposed new rules (OOOOb and OOOOc) that would establish stricter standards for both new and existing sources[121](index=121&type=chunk) - State regulators, including the Texas Railroad Commission (TRRC), have imposed new requirements and restrictions on wastewater disposal wells in response to concerns about induced seismicity, which could impact the company's operations[115](index=115&type=chunk)[248](index=248&type=chunk) [Item 1A. Risk Factors](index=39&type=section&id=Item%201A%2E%20Risk%20Factors) The company faces significant risks from volatile commodity prices, capital-intensive operations, uncertain reserve estimates, concentrated asset base, evolving environmental regulations, and substantial influence by the HighPeak Group - The business is highly sensitive to volatile commodity prices. Sustained low prices could adversely affect financial condition, results of operations, and the ability to fund capital expenditures[144](index=144&type=chunk)[148](index=148&type=chunk) - Development projects require substantial capital. The 2022 capital expenditure plan of approximately **$750-$800 million** is dependent on commodity prices and the availability of financing[144](index=144&type=chunk)[153](index=153&type=chunk) - Reserve estimates are based on numerous assumptions that may prove inaccurate, potentially affecting the quantities and value of reserves[147](index=147&type=chunk)[196](index=196&type=chunk) - The company's assets are geographically concentrated in the northeastern Midland Basin, making it vulnerable to regional risks such as transportation constraints, regulatory changes, and localized market conditions[208](index=208&type=chunk) - Increasing attention to ESG matters and climate change presents regulatory, political, litigation, and financial risks, which could increase compliance costs and restrict access to capital[219](index=219&type=chunk)[237](index=237&type=chunk) - The HighPeak Group owns approximately **84%** of the company's common stock, giving it significant influence over corporate actions. The company qualifies as a "controlled company" under Nasdaq rules, exempting it from certain corporate governance requirements[259](index=259&type=chunk)[265](index=265&type=chunk) [Item 1B. Unresolved Staff Comments](index=82&type=section&id=Item%201B%2E%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[299](index=299&type=chunk) [Item 3. Legal Proceedings](index=82&type=section&id=Item%203%2E%20Legal%20Proceedings) The company is not party to any material legal proceedings outside the ordinary course of business - The company states that it is not party to lawsuits that would have a material adverse effect on its assets, other than those arising in the ordinary course of business[140](index=140&type=chunk)[300](index=300&type=chunk) [Item 4. Mine Safety Disclosures](index=82&type=section&id=Item%204%2E%20Mine%20Safety%20Disclosures) This section is not applicable to the company's operations - Not applicable[301](index=301&type=chunk) Part II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=83&type=section&id=Item%205%2E%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) HighPeak Energy's common stock and warrants trade on Nasdaq, with CVRs on OTC, and the company initiated quarterly cash dividends in 2021 - The company's common stock and warrants are listed on Nasdaq under the symbols "HPK" and "HPKEW." The CVRs are quoted on the OTC market under "HPKER"[303](index=303&type=chunk) - The company initiated a quarterly cash dividend of **$0.025** per share in the third quarter of 2021 and paid a special dividend of **$0.075** per share in July 2021[304](index=304&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=84&type=section&id=Item%207%2E%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2021, financial performance dramatically improved with **$55.6 million** net income, driven by increased sales volumes and commodity prices, supporting a **$750-$800 million** 2022 capital budget funded by cash flow and debt - The company's 2022 capital budget is projected to be between **$715 million and $760 million** for drilling and completions, plus **$35 million to $40 million** for infrastructure, assuming a four-rig program[353](index=353&type=chunk) - Net income attributable to common stockholders was **$55.6 million** (**$0.54** per diluted share) for 2021, compared to a combined net loss of $101.5 million for 2020[319](index=319&type=chunk) - The improved financial results were driven by a **383%** increase in average daily sales volumes (to **9,304** Boepd) and an **86%** increase in average realized commodity prices per Boe[319](index=319&type=chunk)[322](index=322&type=chunk) - In February 2022, the company issued **$225.0 million** of **10.00%** senior unsecured notes due 2024 to pay down its revolving credit facility and fund its 2022 capital budget[355](index=355&type=chunk) [Results of Operations](index=92&type=section&id=Results%20of%20Operations) Revenues surged to **$220.1 million** in 2021 due to higher production and prices, while per-unit operating costs decreased, despite a **$26.7 million** derivative loss Revenue and Production Volume Comparison | Metric | 2021 | 2020 (Combined) | | :--- | :--- | :--- | | **Total Revenues** | $220.1M | $24.6M | | **Avg. Daily Sales (Boe/d)** | 9,304 | 1,925 | | **Avg. Realized Price ($/Boe)** | $64.82 | $34.94 | Key Operating Costs per Boe | Expense ($/Boe) | 2021 | 2020 (Combined) | | :--- | :--- | :--- | | **Lease Operating Expense** | $7.38 | $10.68 | | **Production & Ad Valorem Taxes** | $3.16 | $2.06 | | **DD&A Expense** | $19.20 | $23.08 | | **General & Administrative** | $2.62 | $10.68 | - The company recorded a net derivative loss of **$26.7 million** in 2021, consisting of **$11.3 million** in cash settlement payments and a **$15.4 million** non-cash mark-to-market loss[348](index=348&type=chunk) [Liquidity and Capital Resources](index=100&type=section&id=Liquidity%20and%20Capital%20Resources) Primary liquidity sources include **$147.0 million** cash from operations, a revolving credit facility, and capital markets, with a **$225 million** senior notes issuance in 2022 to fund the capital budget Cash Flow Summary (in thousands) | Cash Flow Activity | 2021 (in thousands) | 2020 (Combined, in thousands) | | :--- | :--- | :--- | | **Operating Activities** | $147,015 | $1,311 | | **Investing Activities** | $(250,371) | $(139,825) | | **Financing Activities** | $118,673 | $135,355 | - As of December 31, 2021, the company had **$100.0 million** outstanding on its Revolving Credit Facility and **$93.1 million** available[355](index=355&type=chunk) EBITDAX Reconciliation (Non-GAAP, in thousands) | Line Item | 2021 (in thousands) | 2020 (Combined, in thousands) | | :--- | :--- | :--- | | **Net income (loss)** | $55,559 | $(101,463) | | **Interest expense** | $2,484 | $8 | | **Income tax expense (benefit)** | $16,904 | $(4,223) | | **DD&A & Accretion** | $65,368 | $16,402 | | **Exploration and abandonment** | $1,549 | $5,036 | | **Stock based compensation** | $6,676 | $15,776 | | **Other adjustments** | $15,634 | $76,503 | | **EBITDAX** | **$164,173** | **$8,033** | [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=109&type=section&id=Item%207A%2E%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The primary market risk is commodity price volatility, mitigated by derivative instruments, with a **$1.00/Bbl** crude oil price change impacting 2021 revenues by approximately **$3.1 million** - The company's major market risk is the pricing of its crude oil, NGL, and natural gas production[385](index=385&type=chunk) - A **$1.00** per barrel change in the average crude oil price for 2021 would have changed revenues by approximately **$3.1 million**[386](index=386&type=chunk) - The company uses commodity derivative instruments to hedge price risk, which is a requirement under its Credit Agreement and the indenture for its 2024 Notes[387](index=387&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=111&type=section&id=Item%208%2E%20Financial%20Statements%20and%20Supplementary%20Data) This section presents audited consolidated financial statements, detailing accounting policies, debt, and subsequent events, with supplementary data showing proved reserves increased to **64,213 MBoe** in 2021 Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2021 (in thousands) | Dec 31, 2020 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | $818,960 | $537,930 | | Total crude oil and natural gas properties, net | $725,615 | $502,636 | | **Total Liabilities** | $264,897 | $61,504 | | Long-term debt, net | $97,929 | $0 | | **Total Stockholders' Equity** | $553,063 | $474,226 | Consolidated Statement of Operations Highlights (in thousands) | Account | 2021 (Successor, in thousands) | 2020 (Combined Successor/Predecessor, in thousands) | | :--- | :--- | :--- | | **Total operating revenues** | $220,124 | $24,623 | | **Income (loss) from operations** | $101,847 | $(29,181) | | **Net income (loss)** | $55,559 | $(101,463) | - In February 2022, the company issued **$225.0 million** of **10.00%** Senior Unsecured Notes due 2024 and amended its credit facility, reducing the borrowing base to **$138.8 million**[540](index=540&type=chunk)[541](index=541&type=chunk) Changes in Proved Reserves (MBoe) | Description | 2021 (MBoe) | 2020 (Combined, MBoe) | | :--- | :--- | :--- | | **Beginning Reserves** | 22,515 | 11,497 | | Extensions and discoveries | 44,967 | 15,396 | | Revisions of previous estimates | (1,658) | (3,723) | | Production | (3,396) | (705) | | Purchases / Sales of minerals-in-place | 1,784 | 50 | | **Ending Reserves** | **64,213** | **22,515** | [Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=155&type=section&id=Item%209%2E%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[561](index=561&type=chunk) [Item 9A. Controls and Procedures](index=155&type=section&id=Item%209A%2E%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of December 31, 2021 - The company's principal executive officer and principal financial officer concluded that disclosure controls and procedures were effective as of December 31, 2021[562](index=562&type=chunk) - Management assessed the effectiveness of internal control over financial reporting as of December 31, 2021, and concluded it was effective based on the COSO framework[565](index=565&type=chunk) Part III [Items 10-14](index=155&type=section&id=Items%2010%2C%2011%2C%2012%2C%2013%20and%2014) Information for Items 10-14, covering governance, compensation, and ownership, is incorporated by reference from the company's upcoming Definitive Proxy Statement - Information for Directors, Executive Officers, Corporate Governance (Item 10), Executive Compensation (Item 11), Security Ownership (Item 12), Certain Relationships and Related Transactions (Item 13), and Principal Accountant Fees and Services (Item 14) will be incorporated by reference from the company's upcoming Definitive Proxy Statement[568](index=568&type=chunk)[569](index=569&type=chunk)[570](index=570&type=chunk)[571](index=571&type=chunk)[572](index=572&type=chunk) Part IV [Item 15. Exhibits, Financial Statement Schedules](index=156&type=section&id=Item%2015%2E%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists financial statements included in Item 8 and exhibits filed with the Annual Report, with schedules omitted as not applicable - The consolidated financial statements are included in Item 8 of this report[573](index=573&type=chunk) - A list of exhibits filed with the report is provided, including the Business Combination Agreement, corporate governance documents, credit agreements, and reserve reports[576](index=576&type=chunk)[577](index=577&type=chunk)[578](index=578&type=chunk) [Item 16. Form 10-K Summary](index=159&type=section&id=Item%2016%2E%20Form%2010-K%20Summary) The company has not provided a summary for Form 10-K in this section - None[579](index=579&type=chunk)

| --- | --- | --- | --- | --- | --- | --- | |-------|----------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | E | HIGHH N | | R | G | | | 3Q21 Presentation November 2021 DISCLAIMER 2 •FORWARD-LOOKING STATEMENTS •The information in this presentation and in any oral statements made in connection herewith contains forward-looking statements that involve risks and uncertainties. When used in or in connection with this document, the words "believes," " ...

Financial Data and Key Metrics Changes - The company's earnings decreased from $40 million to $33 million primarily due to having wells offline during the quarter [14] - Capital expenditures (CapEx) in the third quarter were $64 million, excluding acquisitions, with over 124,400 feet of lateral drilled [13] - The company maintained a debt-to-EBITDA ratio of approximately 0.3, indicating a healthy balance sheet [34] Business Line Data and Key Metrics Changes - Average production in the third quarter was 8,200 barrels per day, with a significant increase to approximately 15,500 barrels per day since mid-October, representing an almost 80% increase [10][8] - The company has added a third rig in late October and plans to add a fourth rig by year-end to enhance production capabilities [9] Market Data and Key Metrics Changes - The realized price for oil was $63.18, which is 89% of WTI, higher than any of the company's peers [12] - The company has maintained the highest cash operating margins among peers at $51.88 [10] Company Strategy and Development Direction - The company is focused on drilling margin fill pads in its Flat Top operating area and transitioning to full manufacturing mode for multi-well pad development [20] - HighPeak Energy aims to grow production volumes significantly in 2022, with a target of averaging 28,000 to 29,000 barrels per day and exiting the year at 36,000 to 42,000 barrels per day [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about production growth and the ability to maintain low costs despite inflationary pressures [16] - The company anticipates a significant reduction in operating costs once the new power distribution system is online in May 2022, projecting LOE costs to drop from $8.97 to approximately $4.50 to $5.25 per BOE [55] Other Important Information - The company recycled over 2 million barrels of produced fluids during the third quarter, equating to approximately 60% of its stimulation fluid needs [26] - HighPeak Energy has increased its credit facility to $195 million, providing ample liquidity for future operations [33] Q&A Session Summary Question: Clarification on drilling at Signal Peak - Management confirmed that they are currently drilling a Wolfcamp A well and a lower Spraberry well, with plans to drill a Wolfcamp D in the fourth quarter [39][41] Question: Details on the power project and its financial implications - Management explained that the new power substation and solar farm will significantly reduce operating costs and emissions, with LOE costs expected to decrease as the new system comes online [49][55] Question: Production profile and potential impacts - Management indicated that while there may be some impact from fracking operations, it will not be as significant as experienced in the third quarter due to improved infrastructure [56] Question: Opportunities for infrastructure enhancements in Signal Peak - Management acknowledged that while Signal Peak will require some infrastructure improvements, the focus will be on efficient water handling and gathering systems [60] Question: Update on Wolfcamp D locations and drilling plans - Management provided details on the number of wells planned for Wolfcamp D and the expected average lateral lengths for drilling in 2022 [62] Question: Competitive pressure and capital spending - Management stated that they do not see negative impacts from larger companies maintaining capital spending, as HighPeak Energy is focused on growth and building reserves [74]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number: 333-248898 HighPeak Energy, Inc. (Exact name of Registrant as specified in its charter) (State or other jurisdiction of ...

Financial Data and Key Metrics Changes - The company reported a production increase of 66% quarter-over-quarter, averaging over 8,800 barrels of oil equivalent per day compared to 5,300 barrels in the first quarter [10][16] - EBITDAX increased by 91% to $38.4 million, reflecting strong operational performance [16][47] - The average realized price was $60.40 per barrel equivalent, with an operating cash margin of $51.35 per Boe, both of which are peer-leading figures [15][20] Business Line Data and Key Metrics Changes - The production stream consists of 90% oil and 96% liquids, which drives high profit margins and differentiates the company from peers [7][30] - The company has increased its lateral feet drilled by almost 40% quarter-over-quarter, indicating improved drilling efficiency [18][26] Market Data and Key Metrics Changes - The company realized prices at 92% of the WTI index on an unhedged basis, which is significantly higher than peers [19] - The cash margin for the second quarter was 75% of the oil and gas WTI index, again outperforming competitors [20][32] Company Strategy and Development Direction - The company is focused on growth, having added a second rig to accelerate production into 2022 [8][40] - Recent acquisitions are expected to add approximately 6,200 net acres and contribute nearly 1,400 barrels per day for the remainder of 2021 [13][76] - The company aims to maintain a low leverage situation while balancing growth and shareholder returns, with a 10-year inventory of drilling locations [50][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue growth despite potential lumpiness in production due to multi-pad development [42][43] - The company is optimistic about future profit margins and operational efficiencies, particularly with ongoing infrastructure improvements [88] Other Important Information - The company has a strong balance sheet with net debt of only $1.2 million and a borrowing base of $125 million [18][44] - The company has initiated a dividend project to align with shareholder interests, despite some cash flow challenges [44] Q&A Session Summary Question: Overall philosophy on balancing growth and shareholder return - Management aims to maintain low leverage while balancing growth with acquisitions and internal drilling opportunities, with a focus on effective growth for the next five to ten years [50] Question: Time needed for wells to reach peak production - Typically, it takes about a month from the time wells are put on flow back to reach peak production, with variations based on well type and area [51][52] Question: Status of wells in early stages of flow back - Of the 10 wells completed in the quarter, the first five to six have reached significant production, while the last four to five are in the initial cleanup period [61][62] Question: Expectations for wells in Signal Peak - Management is optimistic about the performance of wells in Signal Peak, with early production rates being encouraging [64][65] Question: Cost savings from operational initiatives - Anticipated savings from local sand and recycled water initiatives are expected to be significant, with electrification projected to reduce lifting costs substantially [70][73] Question: Details on acreage acquisitions - The acquired barrels are expected to be similar in commodity mix to current production, with low operating expenses contributing to favorable profit margins [76][77] Question: Impact of infrastructure work on crude oil price differential - New agreements are expected to significantly reduce transportation costs, improving realized prices for the company [81][82]

| --- | --- | --- | --- | --- | --- | --- | |-------|----------|-------|-------|-------|-------|-------| | | | | | | | | | E | HIGHH N | | R | G | | - Ars | 2Q21 Results August 2021 DISCLAIMER 2 •FORWARD-LOOKING STATEMENTS •The information in this presentation and in any oral statements made in connection herewith contains forward-looking statements that involve risks and uncertainties. When used in or in connection with this document, the words "believes," "plans," "expects," "anticipates," "forecasts," "i ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number: 333-248898 HighPeak Energy, Inc. (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incor ...