HighPeak Energy, Inc. Announces Fourth Quarter and Year-End 2025 Financial and Operating Results and Provides 2026 Guidance

Core Viewpoint HighPeak Energy, Inc. has announced its financial and operational results for the year ended December 31, 2025, along with its guidance and capital budget for 2026, emphasizing a focus on profitability and free cash flow generation amid geopolitical uncertainties and commodity price volatility. Financial Performance - HighPeak reported a net income of $19.0 million for full-year 2025, translating to $0.14 per diluted share, while experiencing a net loss of $25.2 million in Q4 2025, or ($0.21) per diluted share [17] - The company's EBITDAX for 2025 was $607.1 million, or $4.40 per diluted share, with a Q4 EBITDAX of $113.9 million, or $0.82 per diluted share [17] - Total operating revenues for 2025 were $863.4 million, down from $1.1 billion in 2024, with crude oil sales contributing $786.0 million [38] Production and Operational Highlights - Average daily production for 2025 was 48.3 MBoe/d, with Q4 production averaging 43.7 MBoe/d [12] - The company plans to operate one drilling rig and one completion crew in 2026, targeting the drilling of approximately 30 wells and bringing 36-38 wells online [4][6] - The average realized price for crude oil in 2025 was $65.43 per barrel, while the overall realized price per Boe was $48.98 [18] Capital Expenditures and Financial Strategy - HighPeak's total capital expenditures for 2025 were $511.8 million, with a planned reduction of nearly 50% for 2026 [19][4] - The company aims to strengthen its balance sheet by directing incremental free cash flow towards debt reduction and suspending its dividend to increase liquidity by an estimated $20-$25 million [3][25] - The 2026 capital expenditure budget is projected to be between $255 million and $285 million [7] Reserves and Hedging - As of December 31, 2025, HighPeak's total proved reserves were estimated at 174 million Boe, with a PV-10 value of approximately $2.1 billion [16] - The company has implemented a hedging program to mitigate commodity price volatility, with various derivative instruments in place for crude oil and natural gas [20][23] Market Outlook and Strategic Focus - HighPeak's development plan for 2026 is conservative, reflecting a cautious approach to capital investment in light of market volatility [5] - The company emphasizes maintaining a disciplined approach to production and capital expenditures, focusing on long-term value creation rather than short-term production volume increases [2][5]