HighPeak Energy(HPK) - 2025 Q3 - Quarterly Results

Financial Performance - The company reported a net loss of $18.3 million, or ($0.15) per diluted share, while EBITDAX was $139.9 million, or $1.01 per diluted share [5]. - Total operating revenues for Q3 2025 were $188.862 million, a decrease of 30.5% compared to $271.578 million in Q3 2024 [29]. - Crude oil sales in Q3 2025 were $190.773 million, down from $270.636 million in Q3 2024, reflecting a decline of 29.5% [29]. - For the three months ended September 30, 2025, HighPeak Energy reported a net loss of $18.335 million compared to a net income of $49.933 million for the same period in 2024, representing a significant decline [35]. - The diluted net loss per share attributable to common shareholders was $0.15 for Q3 2025, compared to earnings of $0.35 per share in Q3 2024 [35]. - EBITDAX for the three months ended September 30, 2025, was $139.852 million, down from $214.341 million in the same period of 2024, indicating a decrease of approximately 34.7% [37]. - Discretionary cash flow for the three months ended September 30, 2025, was $105.376 million, compared to $176.374 million for the same period in 2024, reflecting a decline of about 40.2% [38]. - Net cash provided by operating activities for the three months ended September 30, 2025, was $120.239 million, down from $177.103 million in Q3 2024, a decrease of approximately 32.2% [38]. - The company reported a free cash flow of $1.572 million for Q3 2025, a significant drop from $28.135 million in Q3 2024 [38]. - The company reported a total of $418.504 million in net cash provided by operating activities for the nine months ended September 30, 2025, compared to $550.873 million for the same period in 2024, a decrease of 24% [31]. Operational Highlights - HighPeak's average sales volumes for Q3 2025 were 47.8 MBoe/d, with approximately 66% being crude oil and 83% liquids [3]. - The company drilled 6 gross (6.0 net) horizontal wells and turned-in-line 9 gross (8.9 net) producing wells during Q3 2025 [4]. - The company picked up a second drilling rig in early October and completed its second simul-frac operation on a six well pad [6]. - Lease operating expenses averaged $6.57 per Boe, consistent with the first half of 2025 [5]. Capital Expenditures and Debt Management - Capital expenditures for Q3 2025 totaled $86.6 million, a reduction of over 30% compared to Q2 2025 [5]. - The company extended all debt maturities to September 2028 and increased liquidity by over $170 million [5]. - Interest expense for the three months ended September 30, 2025, was $37.150 million, compared to $42.579 million in the same period of 2024, showing a decrease of about 12.8% [37]. - The company incurred a loss on extinguishment of debt amounting to $25.437 million in Q3 2025, which contributed positively to adjusted net income calculations [40]. Asset and Equity Position - Total assets increased to $3.205 billion as of September 30, 2025, compared to $3.063 billion as of December 31, 2024, representing a growth of 4.6% [27]. - Current liabilities decreased significantly to $152.693 million from $284.630 million, a reduction of 46.3% [27]. - Total stockholders' equity rose to $1.627 billion as of September 30, 2025, compared to $1.602 billion as of December 31, 2024, an increase of 1.6% [27]. - Cash and cash equivalents increased to $164.913 million at the end of Q3 2025, up from $86.649 million at the beginning of the period, an increase of 90% [30]. Management and Strategic Focus - HighPeak appointed Michael Hollis as permanent CEO and Jason Edgeworth as Chairman of the Board in November 2025 [5]. - The company plans to focus on operational efficiencies and cost management strategies to navigate the current market challenges and improve future performance [42]. Pricing and Market Conditions - The average realized price for crude oil was $65.63 per Bbl, resulting in an overall realized price of $42.91 per Boe, or 66% of the weighted average NYMEX crude oil prices [8]. - Average realized price for crude oil per Bbl in Q3 2025 was $65.63, down from $75.99 in Q3 2024, a decrease of 13.1% [33]. - Average daily crude oil sales volumes decreased to 31,594 Bbls in Q3 2025 from 38,710 Bbls in Q3 2024, a drop of 18.5% [33].