HighPeak Energy, Inc.

FORT WORTH, Texas, March 10, 2025 (GLOBE NEWSWIRE) -- HighPeak Energy, Inc. (“HighPeak” or the “Company”) (NASDAQ: HPK) today announced financial and operating results for the quarter and the year ended December 31, 2024. In addition, HighPeak provided its 2025 guidance and capital budget, as approved by its Board of Directors.

Highlights

2024 sales volumes averaged approximately 50.0 thousand barrels of crude oil equivalent per day (“MBoe/d”), representing a 10% increase year-over-year. The Company’s year-end 2024 estimated proved reserves were 199 million Boe (“MMBoe”), representing a 29% increase compared to year-end 2023. 2024 net income was $95.1 million, or $0.67 per diluted share and EBITDAX (a non-GAAP financial measure defined and reconciled below) was $842.9 million, or $6.01 per diluted share. 2024 adjusted net income (a non-GAAP financial measure defined and reconciled below) was $144.8 million, or $1.05 per diluted share. 2024 lease operating expenses averaged $7.23 per Boe, including workover expenses, representing a 17% decrease year-over-year. Reduced long-term debt by $120 million, paid $0.16 per share in dividends and repurchased over 2.4 million shares of common stock during 2024. Increased net acreage over 8%, organically replaced inventory in primary zones and successfully delineated additional sub $50 per barrel (“Bbl”) break-even inventory in the Middle Spraberry formation. Fourth quarter 2024 sales volumes averaged 50.2 MBoe/d, consisting of 86% liquids, representing a 1% increase over fourth quarter 2023. Fourth quarter 2024 net income was $9.0 million, or $0.06 per diluted share, and EBITDAX was $179.4 million, or $1.27 per diluted share.   Fourth quarter 2024 adjusted net income was $28.2 million, or $0.19 per diluted share.

Recent Events

On February 18, 2025, the Company’s Board of Directors declared a quarterly dividend of $0.04 per common share outstanding payable in March 2025. The Company’s Board of Directors authorized the extension of the repurchase authorization of up to $75.0 million of common stock through December 31, 2025, of which approximately $40 million remains available.

HighPeak Chairman and CEO, Jack Hightower, said, “As promised, 2024 was a solid, level-set year for HighPeak. We ran a disciplined and efficient drilling program, reduced our capex budget by 40% from the prior year, increased production by 10%, beat and raised guidance on production, and reduced our operating costs and DC&E costs per foot year over year.  Furthermore, we were successful in improving well results across our acreage and unlocking additional value by delineating new zones, driving total proved reserves 30% higher compared to a year ago. Overall, our team continues to do a fantastic job enhancing the value of our asset base.

Story Continues

"As we focus our attention on 2025, we will maintain capital discipline with our two-rig drilling program, ensuring steady operations in a dynamic market. Our focus on corporate efficiency will keep production flat while reducing capital expenditures by an additional 20%. One of our key objectives is to reduce interest expense and boost levered free cash flow by optimizing our capital structure. These efforts underscore our commitment to shareholder value, reflected in our strategy of debt reduction, consistent quarterly dividends, and opportunistic share buybacks."

2025 Development Outlook

The Company expects to average two (2) drilling rigs and approximately one (1) frac crew during 2025 under its current development plan, assuming commodity prices and capital costs continue to stay in their current ranges.

Production (Boe/d)  • Average production rate 47,000 – 50,500  Capex ($MM)  • Net Operated Wells TIL 52 – 56 • Capital Expenditures, D,C,E&F $375 - $405 • Capital Expenditures, Infrastructure/Other $40 - $50 • 2025 HPK Development Capital Expenditures $415 - $455 • One-Time Infrastructure Projects $33 - $35 • 2025 Total Capital Expenditures $448 - $490  Unit Measures ($/Boe)  • Lease Operating Expenses $7.00 - $7.50 • General & Administrative $1.25 - $1.35

In addition to the Company’s Development Capital Expenditures, the company will invest approximately $33-$35 million in projects that will expand our field-wide low pressure gas gathering system, extend our in-field overhead electric power distribution system, provide access to additional gas sales outlets with other midstream partners, support lower operating expenses and future life of field development.

Year-End 2024 Proved Reserves

As of December 31, 2024, HighPeak Energy’s estimated proved reserves, prepared by Cawley, Gillespie & Associates, Inc., increased over 29% from December 31, 2023 to 199 MMBoe consisting of approximately 68% crude oil, 17% NGL and 15% natural gas. Proved developed reserves increased 36% to 108 MMBoe compared with December 31, 2023 and comprised 54% of the Company’s total proved reserves. The Company’s PV-10 (a non-GAAP financial measure defined and reconciled below) was approximately $3.4 billion at year end 2024 based on pricing guidelines established by the Securities and Exchange Commission (“SEC”). 2024 SEC pricing was $75.48 per Bbl of crude oil and $2.130 per MMBtu of natural gas, before adjustments for price differentials. As of December 31, 2024, the average adjusted prices realized over the remaining lives of the Company’s assets were $75.56 per Bbl of crude oil, $20.53 per Bbl of NGL and $0.072 per Mcf of natural gas. The Company’s 2024 reserve replacement ratio was 345%, an increase of 17% compared to the Company’s 2023 reserve replacement ratio.

SEC PRICING Crude Oil 
(MBbl)  NGL 
(MBbl)  Natural Gas 
(MMcf)  Total 
(Mboe)  PV-10 
($M) Proved developed producing 59,394  21,709  112,734  99,892  $ 2,094 Proved developed nonproducing 6,238  1,044  5,668  8,227   198 Total proved developed reserves 65,632  22,753  118,402  108,119   2,292 Proved undeveloped 69,639  11,365  59,252  90,879   1,095 Total proved reserves 135,271  34,118  177,654  198,998  $ 3,387

Fourth Quarter 2024 Operational Update

HighPeak’s sales volumes during the fourth quarter of 2024 averaged 50.2 MBoe/d, a 1% increase over the fourth quarter of 2023. Fourth quarter sales volumes consisted of approximately 72% crude oil and 86% liquids. Full-year 2024 sales volumes averaged 50.0 MBoe/d, a 10% increase over 2023 sales volumes.

The Company averaged two drilling rigs and one frac crew during the fourth quarter, drilled 17 gross (16.9 net) horizontal wells and completed 18 gross (17.8 net) operated producing wells. At December 31, 2024, the Company had 21 gross (20.9 net) operated horizontal wells in various stages of drilling and completion.

HighPeak President, Michael Hollis, commented, "HighPeak’s recent well results highlight the robust quality of our inventory, reinforcing confidence in our asset base. By efficiently expanding our consolidated acreage position, we’ve organically replenished our drilling inventory in our primary zones, positioning us for sustained success. Additionally, we are particularly encouraged by the performance of our Middle Spraberry wells, which we plan to build upon throughout 2025. Continued successful delineation of this zone has the potential to add over 200 additional sub-$50/Bbl breakeven locations."

Fourth Quarter 2024 Financial Results

HighPeak reported net income of $9.0 million for the fourth quarter of 2024, or $0.06 per diluted share, and EBITDAX of $179.4 million, or $1.27 per diluted share. HighPeak reported adjusted net income of $28.2 million for the fourth quarter of 2024, or $0.19 per diluted share.

Fourth quarter average realized prices were $70.46 per Bbl of crude oil, $22.30 per Bbl of NGL and $0.29 per Mcf of natural gas, resulting in an overall realized price of $50.83 per Boe, or 72% of the weighted average of NYMEX crude oil prices, excluding the effects of derivatives. HighPeak’s cash costs for the fourth quarter were $11.48 per Boe, including lease operating expenses of $6.81 per Boe, workover expenses of $0.50 per Boe, production and ad valorem taxes of $2.87 per Boe and G&A expenses of $1.30 per Boe. As a result, the Company’s unhedged EBITDAX per Boe was $39.35 per Boe, or 77% of the overall realized price per Boe for the quarter, excluding the effects of derivatives.

HighPeak’s fourth quarter 2024 capital expenditures to drill, complete, equip, provide facilities and for infrastructure were $152.5 million.

Hedging

Crude oil. As of December 31, 2024, HighPeak had the following outstanding crude oil derivative instruments and the weighted average crude oil prices and premiums payable per Bbl:

Swaps  Collars, Enhanced Collars & Deferred Premium Puts Settlement Month  Settlement Year  Type of Contract  Bbls Per Day  Index  Price per Bbl  Floor or Strike Price per Bbl  Ceiling Price per Bbl  Deferred Premium Payable per Bbl Crude Oil:  Jan - Mar  2025  Swap  5,500  WTI  $ 76.37  $ —  $ —  $ — Jan - Mar  2025  Collar  8,000  WTI  $ —  $ 65.00  $ 90.00  $ 2.12 Jan - Mar  2025  Put  2,000  WTI  $ —  $ 58.00  $ —  $ 5.00 Apr - Jun  2025  Swap  5,500  WTI  $ 76.37  $ —  $ —  $ — Apr - Jun  2025  Collar  7,000  WTI  $ —  $ 65.00  $ 90.08  $ 2.28 Apr - Jun  2025  Put  2,000  WTI  $ —  $ 58.00  $ —  $ 5.00 Jul - Sep  2025  Swap  3,000  WTI  $ 75.85  $ —  $ —  $ — Jul - Sep  2025  Collar  7,000  WTI  $ —  $ 65.00  $ 90.08  $ 2.28 Jul - Sep  2025  Put  2,000  WTI  $ —  $ 58.00  $ —  $ 5.00

The Company’s crude oil derivative contracts detailed above are based on reported settlement prices on the New York Mercantile Exchange for West Texas Intermediate pricing.

Natural gas. In February 2025, the Company entered into the following natural gas derivative instruments, specifically HH fixed price swaps at $4.43 per MMBtu for 30,000 MMBtu per day for March 2025 through February 2026.

Settlement Month  Settlement Year  Type of Contract  MMBtu Per Day  Index  Price per MMBtu Natural Gas:  Jan – Mar  2025  Swap  10,333  HH  $ 4.43 Apr – Jun  2025  Swap  30,000  HH  $ 4.43 Jul – Sep  2025  Swap  30,000  HH  $ 4.43 Oct – Dec  2025  Swap  30,000  HH  $ 4.43 Jan – Mar  2026  Swap  19,667  HH  $ 4.43

Dividends

During the fourth quarter of 2024, HighPeak’s Board of Directors approved a quarterly dividend of $0.04 per share, or $5.0 million in dividends paid to stockholders during the quarter. In addition, in February 2025, the Company’s Board of Directors declared a quarterly dividend of $0.04 per share, or approximately $5.0 million in dividends, to be paid on March 25, 2025, to stockholders of record on March 3, 2025.

Conference Call

HighPeak will host a conference call and webcast on Tuesday, March 11, 2025, at 10:00 a.m. Central Time for investors and analysts to discuss its results for the fourth quarter of 2024 and its 2025 operating plan. Conference call participants may register for the call here. Access to the live audio-only webcast and replay of the earnings release conference call may be found here. A live broadcast of the earnings conference call will also be available on the HighPeak Energy website at www.highpeakenergy.com under the “Investors” section of the website. A replay will also be available on the website following the call.

When available, a copy of the Company’s earnings release, investor presentation and Annual Report on Form 10-K may be found on its website at www.highpeakenergy.com.

Conference Participation

HighPeak Energy will participate in-person at the upcoming 37th Annual Roth Conference to be held from March 16-18, 2025, located in Dana Point, California.

About HighPeak Energy, Inc.

HighPeak Energy, Inc. is a publicly traded independent crude oil and natural gas company, headquartered in Fort Worth, Texas, focused on the acquisition, development, exploration and exploitation of unconventional crude oil and natural gas reserves in the Midland Basin in West Texas. For more information, please visit our website at www.highpeakenergy.com.

Cautionary Note Regarding Forward-Looking Statements

The information in this press release contains forward-looking statements that involve risks and uncertainties. When used in this document, the words “believes,” “plans,” “expects,” “anticipates,” “forecasts,” “intends,” “continue,” “may,” “will,” “could,” “should,” “future,” “potential,” “estimate” or the negative of such terms and similar expressions as they relate to HighPeak Energy, Inc. (“HighPeak Energy” or the “Company”) are intended to identify forward-looking statements, which are generally not historical in nature. The forward-looking statements are based on the Company's current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates. Although the Company believes that the expectations and assumptions reflected in the forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond the Company's control. For example, the Company’s review of strategic alternatives may not result in a sale of the Company, a recommendation that a transaction occur or result in a completed transaction, and any transaction that occurs may not increase shareholder value, in each case as a result of such risks and uncertainties.

These risks and uncertainties include, among other things, the results of the strategic review being undertaken by the Company’s Board and the interest of prospective counterparties, the Company’s ability to realize the results contemplated by its 2025 guidance, volatility of commodity prices, product supply and demand, the impact of a widespread outbreak of an illness, such as the coronavirus disease pandemic, on global and U.S. economic activity, competition, the ability to obtain environmental and other permits and the timing thereof, other government regulation or action, the ability to obtain approvals from third parties and negotiate agreements with third parties on mutually acceptable terms, litigation, the costs and results of drilling and operations, availability of equipment, services, resources and personnel required to perform the Company's drilling and operating activities, access to and availability of transportation, processing, fractionation, refining and storage facilities, HighPeak Energy's ability to replace reserves, implement its business plans or complete its development activities as scheduled, access to and cost of capital, the financial strength of counterparties to any credit facility and derivative contracts entered into by HighPeak Energy, if any, and purchasers of HighPeak Energy's oil, natural gas liquids and natural gas production, uncertainties about estimates of reserves, identification of drilling locations and the ability to add proved reserves in the future, the assumptions underlying forecasts, including forecasts of production, expenses, cash flow from sales of oil and gas and tax rates, quality of technical data, environmental and weather risks, including the possible impacts of climate change, cybersecurity risks and acts of war or terrorism. These and other risks are described in the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K and other filings with the SEC. The Company undertakes no duty to publicly update these statements except as required by law.

Reserve engineering is a process of estimating underground accumulations of hydrocarbons that cannot be measured in an exact way. The accuracy of any reserve estimate depends on the quality of available data, the interpretation of such data and price and cost assumptions made by reserve engineers. Reserves estimates included herein may not be indicative of the level of reserves or PV-10 value of oil and natural gas production in the future, as they are based on 2024 SEC prices which are different than current commodity prices. In addition, the results of drilling, testing and production activities may justify revisions of estimates that were made previously. If significant, such revisions could impact HighPeak’s strategy and change the schedule of any further production and development drilling. Accordingly, reserve estimates may differ significantly from the quantities of oil and natural gas that are ultimately recovered.

Use of Projections

The financial, operational, industry and market projections, estimates and targets in this press release and in the Company’s guidance (including production, operating expenses and capital expenditures in future periods) are based on assumptions that are inherently subject to significant uncertainties and contingencies, many of which are beyond the Company’s control. The assumptions and estimates underlying the projected, expected or target results are inherently uncertain and are subject to a wide variety of significant business, economic, regulatory and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the financial, operational, industry and market projections, estimates and targets, including assumptions, risks and uncertainties described in “Cautionary Note Regarding Forward-Looking Statements” above. These projections are speculative by their nature and, accordingly, are subject to significant risk of not being actually realized by the Company. Projected results of the Company for 2025 are particularly speculative and subject to change. Actual results may vary materially from the current projections, including for reasons beyond the Company’s control. The projections are based on current expectations and available information as of the date of this release. The Company undertakes no duty to publicly update these projections except as required by law.

Drilling Locations

The Company has estimated its drilling locations based on well spacing assumptions and upon the evaluation of its drilling results and those of other operators in its area, combined with its interpretation of available geologic and engineering data. The drilling locations actually drilled on the Company’s properties will depend on the availability of capital, regulatory approvals, commodity prices, costs, actual drilling results and other factors. Any drilling activities conducted on these identified locations may not be successful and may not result in additional proved reserves. Further, to the extent the drilling locations are associated with acreage that expires, the Company would lose its right to develop the related locations.

HighPeak Energy, Inc. Unaudited Condensed Consolidated Balance Sheet Data (In thousands)  December 31,  2024  2023 Current assets:  Cash and cash equivalents $ 86,649   $ 194,515  Accounts receivable  85,242    94,589  Inventory  10,952    7,254  Derivative instruments  7,582    31,480  Prepaid expenses  4,587    995  Total current assets  195,012    328,833  Crude oil and natural gas properties, using the successful efforts method of accounting:  Proved properties  3,959,545    3,338,107  Unproved properties  70,868    72,715  Accumulated depletion, depreciation and amortization  (1,184,684 )   (684,179 ) Total crude oil and natural gas properties, net  2,845,729    2,726,643  Other property and equipment, net  3,201    3,572  Derivative instruments  —    16,059  Other noncurrent assets  19,346    5,684  Total assets $ 3,063,288   $ 3,080,791   Current liabilities:  Current portion of long-term debt, net $ 120,000   $ 120,000  Accounts payable – trade  74,011    63,583  Accrued capital expenditures  35,170    39,231  Revenues and royalties payable  26,838    29,724  Other accrued liabilities  22,196    19,613  Derivative instruments  5,380    13,054  Operating leases  719    528  Advances from joint interest owners  316    262  Accrued interest  —    1,398  Total current liabilities  284,630    287,393  Noncurrent liabilities:  Long-term debt, net  928,384    1,030,299  Deferred income taxes  232,398    197,068  Asset retirement obligations  14,750    13,245  Operating leases  670    —  Derivative instruments  —    65  Commitments and contingencies   Stockholders’ equity  Common stock  13    13  Additional paid-in capital  1,166,609    1,189,424  Retained earnings  435,834    363,284  Total stockholders’ equity  1,602,456    1,552,721  Total liabilities and stockholders’ equity $ 3,063,288   $ 3,080,791

HighPeak Energy, Inc. Unaudited Condensed Consolidated Statements of Operations (in thousands, except per share data)  Three Months Ended December 31,  Year Ended
December 31, 2024  2023  2024  2023 Operating revenues:  Crude oil sales $ 232,881   $ 296,140   $ 1,060,476   $ 1,086,598  NGL and natural gas sales  1,925    5,013    8,938    24,695  Total operating revenues  234,806    301,153    1,069,414    1,111,293  Operating costs and expenses:  Crude oil and natural gas production  33,762    37,666    132,244    145,362  Production and ad valorem taxes  13,267    14,077    59,677    58,472  Exploration and abandonments  449    862    1,476    5,234  Depletion, depreciation and amortization  105,631    132,862    500,752    424,424  Accretion of discount  244    162    966    522  General and administrative  6,001    4,646    20,392    16,598  Stock-based compensation  1,375    3,862    12,701    25,957  Total operating costs and expenses  160,729    194,137    728,208    676,569  Other expense  390    220    3,795    8,262  Income from operations  73,687    106,796    337,411    426,462  Interest income  1,721    1,985    8,685    2,908  Interest expense  (39,508 )   (44,623 )   (168,712 )   (147,901 ) (Loss) gain on derivative instruments, net  (23,053 )   58,500    (46,464 )   27,602  Loss on extinguishment of debt  —    —    —    (27,300 ) Income before income taxes  12,847    122,658    130,920    281,771  Provision for income taxes  3,866    27,654    35,851    65,905  Net income $ 8,981   $ 95,004   $ 95,069   $ 215,866   Earnings per share:  Basic net income $ 0.07   $ 0.68   $ 0.69   $ 1.64  Diluted net income $ 0.06   $ 0.66   $ 0.67   $ 1.58   Weighted average shares outstanding:  Basic  124,348    126,242    125,281    117,956  Diluted  128,073    130,579    129,205    123,020   Dividends declared per share $ 0.04   $ 0.025   $ 0.16   $ 0.10

HighPeak Energy, Inc.  Unaudited Condensed Consolidated Statements of Cash Flows  (in thousands)   Year Ended December 31, 2024  2023 CASH FLOWS FROM OPERATING ACTIVITIES:  Net income $ 95,069   $ 215,866  Adjustments to reconcile net income to net cash provided by operations:  Provision for deferred income taxes  35,330    65,905  Loss on extinguishment of debt  —    27,300  Loss (gain) on derivative instruments  46,464    (27,602 ) Cash paid on settlement of derivative instruments  (14,246 )   (24,194 ) Amortization of debt issuance costs  8,278    11,411  Amortization of discounts on long-term debt  9,865    15,140  Stock-based compensation expense  12,701    25,957  Accretion expense  966    522  Depletion, depreciation and amortization  500,752    424,424  Exploration and abandonment expense  620    4,242  Changes in operating assets and liabilities:  Accounts receivable  9,347    2,007  Prepaid expenses, inventory and other assets  (19,474 )   6,923  Accounts payable, accrued liabilities and other current liabilities  4,719    8,488  Net cash provided by operating activities  690,391    756,389  CASH FLOWS FROM INVESTING ACTIVITIES:  Additions to crude oil and natural gas properties  (604,828 )   (1,009,855 ) Changes in working capital associated with crude oil and natural gas property additions  (1,294 )   (100,802 ) Acquisitions of crude oil and natural gas properties  (14,844 )   (15,085 ) Proceeds from sales of properties  339    —  Other property additions  (216 )   (193 ) Net cash used in investing activities  (620,843 )   (1,125,935 ) CASH FLOWS FROM FINANCING ACTIVITIES:  Repayments under Term Loan Credit Agreement  (120,000 )   —  Repurchased shares under buyback program  (35,166 )   —  Dividends paid  (20,058 )   (11,864 ) Dividend equivalents paid  (2,133 )   (1,251 ) Debt issuance costs  (58 )   (28,444 ) Proceeds from the exercises of warrants  1    4,028  Borrowings under Term Loan Credit Agreement, net of discount  —    1,170,000  Borrowings under Prior Credit Agreement  —    255,000  Repayments under Prior Credit Agreement  —    (525,000 ) Repayments of 10.000% Senior Notes and 10.625% Senior Notes  —    (475,000 ) Premium on extinguishment of debt  —    (4,457 ) Proceeds from issuance of common stock  —    155,768  Stock offering costs  —    (5,371 ) Proceeds from exercises of stock options  —    148  Net cash (used in) provided by financing activities  (177,414 )   533,557  Net (decrease) increase in cash and cash equivalents  (107,866 )   164,011  Cash and cash equivalents, beginning of period  194,515    30,504  Cash and cash equivalents, end of period $ 86,649   $ 194,515

HighPeak Energy, Inc. Unaudited Summary Operating Highlights  Three Months Ended December 31,  Year Ended December 31, 2024  2023  2024  2023 Average Daily Sales Volumes:  Crude oil (Bbls)  35,926    40,624    37,914    38,041  NGLs (Bbls)  7,289    5,262    6,241    4,239  Natural gas (Mcf)  42,007    24,395    34,828    19,777  Total (Boe)  50,216    49,952    49,960    45,577   Average Realized Prices (excluding effects of derivatives):  Crude oil per Bbl $ 70.46   $ 79.24   $ 76.42   $ 78.26  NGL per Bbl $ 22.30   $ 19.93   $ 22.06   $ 21.51  Natural gas per Mcf $ 0.29   $ 1.51   $ 0.49   $ 1.56  Total per Boe $ 50.83   $ 65.53   $ 58.48   $ 66.80   Margin Data ($ per Boe):  Average price, excluding effects of derivatives $ 50.83   $ 65.53   $ 58.48   $ 66.80  Lease operating expenses  (6.81 )   (7.53 )   (6.76 )   (8.04 ) Expense workovers  (0.50 )   (0.66 )   (0.47 )   (0.70 ) Production and ad valorem taxes  (2.87 )   (3.06 )   (3.26 )   (3.51 ) General and administrative expenses  (1.30 )   (1.01 )   (1.12 )   (1.00 ) $ 39.35   $ 53.27   $ 46.87   $ 53.55

HighPeak Energy, Inc. Unaudited Earnings Per Share Details  Three Months Ended December 31,  Year Ended December 31, 2024   2023   2024   2023  Net income as reported $ 8,981   $ 95,004   $ 95,069   $ 215,866  Participating basic earnings  (861 )   (9,103 )   (9,155 )   (21,890 ) Basic earnings attributable to common shareholders  8,120    85,901    85,914    193,976  Reallocation of participating earnings  5    133    108    334  Diluted net income attributable to common shareholders $ 8,125   $ 86,034   $ 86,022   $ 194,310   Basic weighted average shares outstanding  124,348    126,242    125,281    117,956  Dilutive warrants and unvested stock options  1,571    2,178    1,770    2,905  Dilutive unvested restricted stock  2,154    2,159    2,154    2,159  Diluted weighted average shares outstanding  128,073    130,579    129,205    123,020   Net income per share attributable to common shareholders:  Basic $ 0.07   $ 0.68   $ 0.69   $ 1.64  Diluted $ 0.06   $ 0.66   $ 0.67   $ 1.58

HighPeak Energy, Inc. Unaudited Reconciliation of Net Income to EBITDAX, Discretionary Cash Flow and Net Cash Provided by Operations (in thousands)  Three Months Ended December 31,  Year Ended December 31, 2024   2023   2024   2023  Net income $ 8,981   $ 95,004   $ 95,069   $ 215,866  Interest expense  39,508    44,623    168,712    147,901  Interest income  (1,721 )   (1,985 )   (8,685 )   (2,908 ) Income tax expense  3,866    27,654    35,851    65,905  Depletion, depreciation and amortization  105,631    132,862    500,752    424,424  Accretion of discount  244    162    966    522  Exploration and abandonment expense  449    862    1,476    5,234  Stock based compensation  1,375    3,862    12,701    25,957  Derivative related noncash activity  20,704    (61,662 )   32,218    (51,796 ) Other expense  390    220    3,795    8,262  Loss on extinguishment of debt  —    —    —    27,300  EBITDAX  179,427    241,602    842,855    866,667  Cash interest expense  (34,949 )   (40,084 )   (150,569 )   (125,807 ) Other (a)  1,682    1,398    3,513    (1,889 ) Discretionary cash flow  146,160    202,916    695,799    738,971  Changes in operating assets and liabilities  (6,642 )   31,731    (5,408 )   17,418  Net cash provided by operating activities $ 139,518   $ 234,647   $ 690,391   $ 756,389   (a) includes interest income net of current tax expense, other expense and operating portion of exploration and abandonment expenses.

HighPeak Energy, Inc. Unaudited Reconciliation of Net Income to Adjusted Net Income (in thousands, except per share data)  Three Months Ended December 31, 2024  Year Ended December 31, 2024 Amounts  Amounts per 
Diluted Share  Amounts  Amounts per 
Diluted Share Net income $ 8,981   $ 0.06   $ 95,069   $ 0.69  Derivative loss, net  23,053    0.15    46,464    0.34  Stock-based compensation  1,375    0.01    12,701    0.09  Other expense  390    0.01    3,795    0.03  Income tax adjustment for above items *  (5,584 )   (0.04 )   (13,222 )   (0.10 ) Adjusted net income $ 28,215   $ 0.19   $ 144,807   $ 1.05   * Assuming 21% statutory tax rate

HighPeak Energy, Inc. Unaudited Reconciliation of Standardized Measure to PV-10 (in thousands)  As of December 31, 2024 Total Proved Standardized measure $ 2,994,997 Present value of future income taxes and certain abandonment costs discounted at 10%  392,077 Present value of estimated future cash flows (PV-10) $ 3,387,074

HighPeak Energy, Inc. Unaudited Reserve Replacement Computations  MBoe Proved Reserves on December 31, 2023 154,162  Extensions, discoveries and revisions 63,121  Production (18,285 ) Proved Reserves on December 31, 2024 198,998   Reserve Replacement with the drill bit 345 %

Investor Contact:

Ryan Hightower
Vice President, Business Development
817.850.9204 
[email protected]

Source: HighPeak Energy, Inc.

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