HighPeak Energy(HPK) - 2025 Q4 - Annual Results

Financial Performance - HighPeak Energy reported a net income of $19.0 million for full-year 2025, or $0.14 per diluted share, while the fourth quarter net loss was $25.2 million, or ($0.21) per diluted share[15]. - HighPeak Energy's total operating revenues for the year ended December 31, 2025, were $863.4 million, a decrease of 22.8% from $1.12 billion in 2024[36]. - The company reported a net loss of $25.2 million for the three months ended December 31, 2025, compared to a net income of $9.0 million in the same period of 2024[36]. - Net income for the year ended December 31, 2025, was $18,963,000, a significant decrease from $95,069,000 in 2024[38]. - Total cash provided by operating activities for the year was $511,597,000, down from $690,391,000 in 2024, reflecting a decline of approximately 26%[38]. - Free cash flow for the year ended December 31, 2025, was negative at $(37,841,000), compared to positive free cash flow of $89,677,000 in 2024[45]. - EBITDAX for the year ended December 31, 2025, was $607,056,000, down from $842,855,000 in 2024, indicating a decline of approximately 28%[44]. - The company reported a net loss of $(25,213,000) for Q4 2025, compared to a net income of $8,981,000 in Q4 2024[42]. Production and Reserves - Average daily production for 2026 is projected to be between 41,000 and 44,000 Boe/d, with oil comprising 67% to 68% of the production mix[8]. - HighPeak's total proved reserves as of December 31, 2025, were estimated at 174 million Boe, with 66% being crude oil[11]. - Average daily crude oil sales volumes decreased to 28,039 Bbls in Q4 2025 from 35,926 Bbls in Q4 2024, representing a decline of approximately 22%[40]. - Total proved reserves as of December 31, 2024, were 198,998 MBoe, with a decrease due to production and revisions[49]. Costs and Expenses - The company's cash costs for full-year 2025 were $15.33 per Boe, including lease operating costs of $6.78 per Boe[16]. - HighPeak Energy's total operating costs and expenses for the year ended December 31, 2025, were $710.5 million, a decrease of 8.4% from $776.0 million in 2024[36]. - The average realized price for crude oil in 2025 was $65.43 per Bbl, resulting in an overall realized price of $48.98 per Boe, or 75% of the weighted average of NYMEX crude oil prices[16]. - Average realized price for crude oil per Bbl dropped to $58.95 in Q4 2025 from $70.46 in Q4 2024, a decrease of about 16%[40]. Capital Expenditure and Future Plans - The company plans to average one drilling rig and one completion crew in 2026, with a capital expenditure budget reduced by nearly 50% year-over-year, totaling $255 - $285 million[4][8]. - The company has multiple decades of high-return inventory supported by a life-of-field infrastructure system designed to maximize returns for shareholders[6]. - HighPeak suspended its dividend to increase annual liquidity by an estimated $20-$25 million[3]. - The company is expanding its hedging program to mitigate commodity price volatility and capture attractive pricing[3]. - The company plans to participate in the 38th Annual Roth Conference from March 23-25, 2026, to discuss its strategic initiatives and market outlook[24]. - HighPeak's guidance for 2026 remains subject to significant uncertainties, including commodity price volatility and regulatory risks[30]. Assets and Liabilities - HighPeak's current assets increased to $259.9 million as of December 31, 2025, from $195.0 million in 2024, primarily due to an increase in cash and cash equivalents[34]. - The company's proved properties increased to $4.48 billion in 2025, up from $3.96 billion in 2024, reflecting ongoing development efforts[34]. - HighPeak's total liabilities decreased to $1.36 billion in 2025 from $1.46 billion in 2024, indicating improved financial management[34]. - Cash and cash equivalents at the end of the period increased to $162,075,000 from $86,649,000 at the beginning of the period[38].