Core Insights - HighPeak Energy, Inc. reported solid financial and operational results for 2024, with a focus on disciplined capital management and production growth [3][4][7]. Financial Performance - The company achieved a net income of $95.1 million for 2024, translating to $0.67 per diluted share, with EBITDAX of $842.9 million or $6.01 per diluted share [7][15]. - Adjusted net income for 2024 was $144.8 million, or $1.05 per diluted share [7]. - Fourth quarter 2024 net income was $9.0 million, or $0.06 per diluted share, with EBITDAX of $179.4 million, or $1.27 per diluted share [15][16]. Production and Reserves - Average production for 2024 was approximately 50.0 MBoe/d, a 10% increase year-over-year, with fourth quarter production averaging 50.2 MBoe/d [11][7]. - Estimated proved reserves at year-end 2024 were 199 million Boe, a 29% increase from 2023, with proved developed reserves increasing by 36% to 108 million Boe [7][13]. Capital Expenditures and Guidance - The company reduced its capital expenditures by 40% in 2024 and plans to further reduce them by 20% in 2025, with a capital budget of $448 - $490 million for 2025 [3][4][8]. - HighPeak plans to maintain a two-rig drilling program in 2025, with an average production guidance of 47,000 – 50,500 Boe/d [5][6]. Operational Efficiency - Lease operating expenses for 2024 averaged $7.23 per Boe, a 17% decrease year-over-year [7]. - The company successfully reduced long-term debt by $120 million and paid dividends of $0.16 per share in 2024 [7][22]. Shareholder Returns - HighPeak's Board of Directors declared a quarterly dividend of $0.04 per share for the fourth quarter of 2024 and for March 2025, totaling approximately $5.0 million in dividends [22][4]. - The company authorized a share repurchase program of up to $75 million, with approximately $40 million remaining available [7][4].

Financial Data and Key Metrics Changes - The bank reported adjusted earnings of $2.2 billion or $1.76 per share, reflecting a 15% year-over-year growth in noninterest revenue [9][40] - Return on equity improved to 11.8% from 10.6% in the previous quarter, with return on tangible common equity at 14.3% [41][112] - Revenues increased by 11% year-over-year, driven by both net interest and non-interest income [41][112] - The provision for credit losses was approximately $1.2 billion, with a PCL ratio of 60 basis points, up 6 basis points quarter-over-quarter [42][64] Business Line Data and Key Metrics Changes - Canadian Banking reported earnings of $914 million, down 6% year-over-year due to higher loan loss provisions and expenses [47] - Global Wealth Management delivered earnings of $414 million, up 23% year-over-year, driven by higher mutual fund fees and wealth advisory revenues [50][91] - Global Banking and Markets had earnings of $517 million, up 33% year-over-year, with capital markets revenue increasing by 41% [53][94] - International Banking delivered earnings of $657 million, down 7% year-over-year, with a PCL ratio of 146 basis points [57][70] Market Data and Key Metrics Changes - The bank's overall funding profile strengthened with year-over-year deposit growth of 4%, reducing the loan-to-deposit ratio to 105% [85] - Retail deposit growth was up 4% year-over-year, with commercial business generating over $10 billion in deposit growth [98][99] - Digital active clients at Tangerine reached an all-time high of 1.4 million [100] Company Strategy and Development Direction - The bank is focused on allocating incremental capital and resources to priority markets, including a recent investment in KeyCorp [12][84] - The strategy emphasizes value over volume, with initiatives like Mortgage+ and Scene+ to enhance client acquisition [15][86] - The bank aims to improve operational excellence and return discipline, targeting stronger ROE performance across business lines [18][89] Management's Comments on Operating Environment and Future Outlook - Management acknowledged heightened geopolitical uncertainty and a less certain economic outlook, particularly in the U.S. and Mexico [35][106] - The bank is taking a conservative approach to navigate potential economic disruptions and is well-positioned to fund organic growth while resuming dividend growth [34][72] - Confidence remains in the bank's ability to manage through challenging periods while supporting clients [72][108] Other Important Information - The bank's CET1 capital ratio remained strong at 12.9%, with total risk-weighted assets at $468 billion [45][116] - The bank generated positive operating leverage of 2.8%, with a productivity ratio of 54.5% [44][114] - The effective tax rate increased to 23.8% due to changes in earnings mix and the implementation of the global minimum tax [44][112] Q&A Session Summary Question: What are the expectations regarding the impact of potential tariffs? - Management indicated that PCLs would remain elevated due to macroeconomic uncertainty and potential tariffs, with a base case scenario including modest tariff risks [63][70] Question: How is the bank addressing client acquisition and retention? - The bank is enhancing client acquisition strategies through initiatives like Mortgage+ and Scene+, with significant growth in primary clients [15][87] Question: What is the outlook for earnings growth in 2025? - The bank is on track to deliver earnings growth towards the higher end of the 5% to 7% range, excluding potential tariff impacts [104][106]