HighPeak Energy(HPK) - 2024 Q4 - Annual Results

Production and Reserves - HighPeak Energy's 2024 average production was approximately 50.0 MBoe/d, a 10% increase year-over-year[4] - The company's year-end 2024 estimated proved reserves were 199 MMBoe, representing a 29% increase compared to year-end 2023[10] - The company's 2024 reserve replacement ratio was 345%, an increase of 17% compared to 2023[10] - The company reported a reserve replacement ratio of 345% for the year, with proved reserves increasing from 154,162 MBoe in 2023 to 198,998 MBoe in 2024[48] Financial Performance - 2024 net income was $95.1 million, or $0.67 per diluted share, with EBITDAX of $842.9 million, or $6.01 per diluted share[4] - Fourth quarter 2024 net income was $9.0 million, or $0.06 per diluted share, with adjusted net income of $28.2 million, or $0.19 per diluted share[14] - Net income for the year ended December 31, 2024, was $95,069,000, a decrease of 56% from $215,866,000 in 2023[36] - Adjusted net income for the year was $144,807,000, with diluted earnings per share of $1.05, compared to $194,310,000 and $1.58 in 2023[43] Revenue and Expenses - Total operating revenues for Q4 2024 were $234.8 million, a decrease of 22% compared to $301.2 million in Q4 2023[34] - Crude oil sales in Q4 2024 were $232.9 million, down 21% from $296.1 million in Q4 2023[34] - The company’s total operating costs and expenses for the year were $728.2 million, an increase of 8% from $676.6 million in 2023[34] - Total cash provided by operating activities for the year was $690,391,000, down from $756,389,000 in 2023, reflecting a decrease of approximately 8.7%[36] Capital Expenditures and Investments - HighPeak plans to reduce capital expenditures by an additional 20% in 2025, with total capital expenditures expected to be between $448 million and $490 million[7] - Total cash used in investing activities was $620,843,000 for the year, down from $1,125,935,000 in 2023, reflecting a reduction of about 44.8%[36] Shareholder Returns - The Board of Directors declared a quarterly dividend of $0.04 per share, totaling approximately $5.0 million in dividends for the fourth quarter of 2024[20] - The company repurchased shares under its buyback program for a total of $35,166,000 during the year[36] Asset and Liability Management - Total current assets decreased to $195.0 million in 2024 from $328.8 million in 2023, a reduction of approximately 41%[32] - Proved properties increased to $3.96 billion in 2024 from $3.34 billion in 2023, representing a growth of about 19%[32] - Total liabilities decreased to $1.46 billion in 2024 from $1.52 billion in 2023, indicating a reduction of approximately 4%[32] - The company reported a total stockholders' equity of $1.60 billion in 2024, up from $1.55 billion in 2023, an increase of about 3%[32] Operational Strategy - The company aims to maintain production flat while averaging two drilling rigs and one frac crew during 2025[6] - The company plans to continue its strategic review and may explore various alternatives, although outcomes are uncertain[26] Pricing and Sales Volumes - HighPeak's fourth quarter average realized prices were $70.46 per Bbl of crude oil, resulting in an overall realized price of $50.83 per Boe[15] - Average realized price for crude oil per Bbl decreased to $76.42 in 2024 from $78.26 in 2023, a decline of approximately 2.4%[38] - Average daily sales volumes for crude oil decreased to 37,914 Bbls in 2024 from 38,041 Bbls in 2023, while natural gas sales increased to 34,828 Mcf from 19,777 Mcf[38]