HighPeak Energy, Inc. (“HighPeak” or the “Company”) (NASDAQ: HPK)
today announced financial and operating results for the quarter and
the six months ended June 30, 2024, and provided updated 2024
guidance.
HighlightsSecond Quarter 2024
- Sales volumes averaged 48,531 barrels of crude oil equivalent
per day (“Boe/d”), consisting of 89% liquids (crude oil and NGL),
representing a 15% increase over the second quarter 2023.
- Lease operating expenses were $6.79 per Boe compared with $8.39
per Boe in the second quarter 2023.
- Net income was $29.7 million, or $0.21 per diluted share, and
EBITDAX (a non-GAAP financial measure defined and reconciled below)
was $215.8 million, or $1.51 per diluted share. Adjusted net income
(a non-GAAP financial measure defined and reconciled below) was
$39.4 million, or $0.28 per diluted share.
- Generated free cash flow (a non-GAAP financial measure defined
and reconciled below) of $13.4 million, which marks the fourth
consecutive quarter of positive free cash flow.
- The Company reduced long-term debt by $30 million, paid a
quarterly dividend of $0.04 per share and continued to execute its
share buyback plan by repurchasing over 413,000 shares during the
second quarter.
Recent Events
- Increased 2024 average production guidance by over 4% to a
range of 45,000 to 49,000 Boe/d, up from 43,000 to 47,000
Boe/d.
- Reduced 2024 lease operating expense guidance range to $6.50 to
$7.50 per Boe, down from $7.50 to $8.50 per Boe, a reduction of
12.5% at the midpoint.
- On August 5, 2024, the Company’s Board of Directors declared a
quarterly dividend of $0.04 per common share outstanding payable in
September 2024.
Statement from HighPeak Chairman and CEO, Jack Hightower:
HighPeak continued its steadfast commitment to
its core values – operating with discipline, strengthening the
balance sheet and remaining focused on maximizing value for its
shareholders. Our operations team continues to find ways to
optimize productivity and efficiency, and combined with our
continued strong well performance, we have experienced a meaningful
uptick in production – with current volumes averaging over 52,000
Boe per day thus far in the third quarter. In addition, we have
been able to drive lease operating costs lower than expected,
leading to updating our 2024 development outlook in both areas.
Through our four years as a public company, we
have assembled and continue to add to a great acreage position. We
have 137 thousand acres consisting of undrilled inventory of over
2,600 locations of which more than 1,100 provide a minimum 10%
return at $50 per barrel. We then focused on quickly growing our
production to a material level of scale while delineating a deep
inventory of highly economic locations. In the last year, we
transitioned to a measured degree of growth while optimizing our
field-wide operations and developing life-of-field infrastructure
to sustain efficient and cost-effective operations moving forward.
As we follow the natural progression of realizing value for our
shareholders, we will continue to strive for excellence in all
areas. The scarcity of remaining economic locations amidst the
current market consolidation trend reinforces our belief that we
are sitting in a prime position to maximize the value of our
assets. Our strategic process is progressing nicely, and we remain
very excited about what the future holds for HighPeak.
Updated 2024 Development Outlook
|
|
|
Original |
|
Updated |
Production
(Boe/d) |
|
|
|
|
● |
Average production rate |
43,000 – 47,000 |
|
45,000 – 49,000 |
Unit Measures
($/Boe) |
|
|
|
|
● |
Lease Operating Expenses |
$7.50 - $8.50 |
|
$6.50 - $7.50 |
Capex ($MM) |
|
|
|
|
● |
Total Capital
Expenditures |
$500 - $585 |
|
$540 - $580 |
Second Quarter 2024 Operational
Update
HighPeak’s sales volumes during the second
quarter of 2024 averaged 48,531 Boe/d, a 15% increase over second
quarter of 2023. Second quarter sales volumes consisted of
approximately 89% liquids (crude oil and NGL).
The Company ran two drilling rigs and one frac
crew during the second quarter, drilled 13 gross (13.0 net)
horizontal wells and completed 25 gross (18.6 net) producing
horizontal wells and 1 gross (1.0 net) salt-water disposal well. At
June 30, 2024, the Company had 22 gross (18.5 net) horizontal wells
in various stages of drilling and completion.
HighPeak President, Michael Hollis, commented,
“The HighPeak team beat expectations again and because of their
laser-focus on optimization and cost controls, we are able to raise
production and lower operating cost guidance. As we mentioned last
quarter, our capex burn-rate is first half weighted. This can be
seen in the number of second quarter turn-in-lines and additional
infrastructure projects located in our extension areas. We have
tightened the capex range and expect to exit the year within our
original budget.”
Mr. Hollis continued, “Contributing to this beat
and raise for production, the recent outperformance of our wells to
the east and on our newly added northern acreage further
strengthens our already robust depth of inventory. The scarcity of
sub $50 per barrel breakeven inventory in the lower 48, puts
HighPeak Energy in a lucrative position with the current
consolidation happening across the industry.”
Second Quarter 2024 Financial
Results
HighPeak reported net income of $29.7 million
for the second quarter of 2024, or $0.21 per diluted share,
and adjusted net income of $39.4 million, or $0.28 per diluted
share. The Company reported EBITDAX of $215.8 million, or $1.51 per
diluted share.
Second quarter average realized prices were
$81.39 per barrel (“$/Bbl”) of crude oil, $20.32 per barrel of NGL
and $0.13 per Mcf of natural gas, resulting in an overall realized
price of $62.33 per Boe, or 77.3% of the weighted average of NYMEX
crude oil prices, excluding the effects of
derivatives. HighPeak’s cash costs for the third quarter were
$12.25 per Boe, including lease operating expenses of $6.79 per
Boe, workover expenses of $0.63 per Boe, production and ad valorem
taxes of $3.76 per Boe and G&A expenses of $1.07 per Boe. The
Company’s cash margin was $50.07 per Boe, or 80.3% of the overall
realized price per Boe for the quarter, excluding the effects of
derivatives.
HighPeak’s second quarter 2024 capital
expenditures to drill, complete, equip, provide facilities and for
infrastructure were $164.0 million.
Dividends
During the second 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 August 2024, 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 September
25, 2024 to stockholders of record on September 3,
2024.
Conference Call
HighPeak will host a conference call and webcast
on Tuesday, August 6, 2024, at 10:00 a.m. Central Time for
investors and analysts to discuss its results for the second
quarter of 2024. 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 Quarterly Report on Form 10-Q
may be found on its website at www.highpeakenergy.com.
Conference
ParticipationHighPeak Energy will participate virtually in
the upcoming Seaport Research Partners Annual Summer Investor
Conference on August 20th-21st, 2024. HighPeak will also
participate in-person in the upcoming Pickering Energy Partners
Annual Energy Conference in Austin, Texas, on September 17th-18th,
2024.
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,” the “Company”
or the “Successor”) 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 2024 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. 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 2024 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) |
|
|
|
June 30,2024 |
|
December 31,2023 |
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
157,911 |
|
|
$ |
194,515 |
|
|
Accounts receivable |
|
|
87,561 |
|
|
|
94,589 |
|
|
Inventory |
|
|
7,817 |
|
|
|
7,254 |
|
|
Prepaid expenses |
|
|
3,073 |
|
|
|
995 |
|
|
Derivative instruments |
|
|
2,278 |
|
|
|
31,480 |
|
|
Total current assets |
|
|
258,640 |
|
|
|
328,833 |
|
|
Crude oil and natural gas
properties, using the successful efforts method of accounting: |
|
|
|
|
|
|
|
Proved properties |
|
|
3,654,399 |
|
|
|
3,338,107 |
|
|
Unproved properties |
|
|
75,690 |
|
|
|
72,715 |
|
|
Accumulated depletion, depreciation and amortization |
|
|
(942,594 |
) |
|
|
(684,179 |
) |
|
Total crude oil and natural gas properties, net |
|
|
2,787,495 |
|
|
|
2,726,643 |
|
|
Other property and equipment,
net |
|
|
3,518 |
|
|
|
3,572 |
|
|
Derivative instruments |
|
|
227 |
|
|
|
16,059 |
|
|
Other noncurrent assets |
|
|
6,577 |
|
|
|
5,684 |
|
|
Total
assets |
|
$ |
3,056,457 |
|
|
$ |
3,080,791 |
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Current portion of long-term debt, net |
|
$ |
120,000 |
|
|
$ |
120,000 |
|
|
Accrued capital expenditures |
|
|
48,905 |
|
|
|
39,231 |
|
|
Accounts payable - trade |
|
|
40,452 |
|
|
|
63,583 |
|
|
Revenues and royalties payable |
|
|
27,860 |
|
|
|
29,724 |
|
|
Other accrued liabilities |
|
|
22,490 |
|
|
|
19,613 |
|
|
Derivative instruments |
|
|
12,599 |
|
|
|
13,054 |
|
|
Advances from joint interest owners |
|
|
5,308 |
|
|
|
262 |
|
|
Accrued interest |
|
|
825 |
|
|
|
1,398 |
|
|
Operating leases |
|
|
422 |
|
|
|
528 |
|
|
Total current liabilities |
|
|
278,861 |
|
|
|
287,393 |
|
|
Noncurrent liabilities: |
|
|
|
|
|
|
|
Long-term debt, net |
|
|
979,266 |
|
|
|
1,030,299 |
|
|
Deferred income taxes |
|
|
213,038 |
|
|
|
197,068 |
|
|
Asset retirement
obligations |
|
|
13,911 |
|
|
|
13,245 |
|
|
Derivatives |
|
|
775 |
|
|
|
65 |
|
|
Operating leases |
|
|
165 |
|
|
|
— |
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
|
|
|
|
|
Common stock |
|
|
13 |
|
|
|
13 |
|
|
Additional paid-in capital |
|
|
1,182,302 |
|
|
|
1,189,424 |
|
|
Retained earnings |
|
|
388,126 |
|
|
|
363,284 |
|
|
Total stockholders' equity |
|
|
1,570,441 |
|
|
|
1,552,721 |
|
|
Total liabilities and
stockholders' equity |
|
$ |
3,056,457 |
|
|
$ |
3,080,791 |
|
|
|
|
|
|
|
|
|
|
HighPeak Energy, Inc. |
Unaudited Condensed Consolidated Statements of
Operations |
(in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
Six Months Ended June 30, |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Operating
revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil sales |
|
$ |
274,590 |
|
|
$ |
236,390 |
|
|
$ |
556,959 |
|
|
$ |
452,086 |
|
NGL and natural gas sales |
|
|
676 |
|
|
|
4,370 |
|
|
|
6,071 |
|
|
|
12,468 |
|
Total operating revenues |
|
|
275,266 |
|
|
|
240,760 |
|
|
|
563,030 |
|
|
|
464,554 |
|
Operating costs and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil and natural gas production |
|
|
32,798 |
|
|
|
34,934 |
|
|
|
63,069 |
|
|
|
67,876 |
|
Production and ad valorem taxes |
|
|
16,596 |
|
|
|
13,259 |
|
|
|
30,998 |
|
|
|
25,556 |
|
Exploration and abandonments |
|
|
167 |
|
|
|
480 |
|
|
|
665 |
|
|
|
2,644 |
|
Depletion, depreciation and amortization |
|
|
127,693 |
|
|
|
93,011 |
|
|
|
258,543 |
|
|
|
174,142 |
|
Accretion of discount |
|
|
242 |
|
|
|
120 |
|
|
|
481 |
|
|
|
238 |
|
General and administrative |
|
|
4,735 |
|
|
|
2,516 |
|
|
|
9,420 |
|
|
|
5,018 |
|
Stock-based compensation |
|
|
3,775 |
|
|
|
3,984 |
|
|
|
7,573 |
|
|
|
8,038 |
|
Total operating costs and expenses |
|
|
186,006 |
|
|
|
148,304 |
|
|
|
370,749 |
|
|
|
283,512 |
|
Other expense |
|
|
2,000 |
|
|
|
7,502 |
|
|
|
2,001 |
|
|
|
7,502 |
|
Income from
operations |
|
|
87,260 |
|
|
|
84,954 |
|
|
|
190,280 |
|
|
|
173,540 |
|
Interest income |
|
|
2,400 |
|
|
|
163 |
|
|
|
4,792 |
|
|
|
193 |
|
Interest expense |
|
|
(42,991 |
) |
|
|
(39,284 |
) |
|
|
(86,625 |
) |
|
|
(66,256 |
) |
Derivative loss, net |
|
|
(2,702 |
) |
|
|
(4,363 |
) |
|
|
(55,745 |
) |
|
|
(1,243 |
) |
Income before income
taxes |
|
|
43,967 |
|
|
|
41,470 |
|
|
|
52,702 |
|
|
|
106,234 |
|
Income tax expense |
|
|
14,250 |
|
|
|
9,644 |
|
|
|
16,547 |
|
|
|
24,151 |
|
Net
income |
|
$ |
29,717 |
|
|
$ |
31,826 |
|
|
$ |
36,155 |
|
|
$ |
82,083 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income |
|
$ |
0.21 |
|
|
$ |
0.26 |
|
|
$ |
0.26 |
|
|
$ |
0.67 |
|
Diluted net income |
|
$ |
0.21 |
|
|
$ |
0.25 |
|
|
$ |
0.25 |
|
|
$ |
0.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
125,341 |
|
|
|
111,227 |
|
|
|
125,341 |
|
|
|
111,227 |
|
Diluted |
|
|
129,248 |
|
|
|
115,978 |
|
|
|
129,265 |
|
|
|
117,127 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per
share |
|
$ |
0.04 |
|
|
$ |
0.025 |
|
|
$ |
0.08 |
|
|
$ |
0.05 |
|
HighPeak Energy, Inc. |
|
Unaudited Condensed Consolidated Statements of Cash
Flows |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|
|
2024 |
|
|
2023 |
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
Net income |
|
$ |
37,435 |
|
|
$ |
82,083 |
|
|
Adjustments to reconcile net income to net cash provided by
operations: |
|
|
|
|
|
|
|
Provision for deferred income taxes |
|
|
14,690 |
|
|
|
24,151 |
|
|
Loss on derivative instruments |
|
|
55,745 |
|
|
|
1,244 |
|
|
Cash paid on settlement of derivative instruments |
|
|
(10,456 |
) |
|
|
(7,261 |
) |
|
Amortization of debt issuance costs |
|
|
4,119 |
|
|
|
5,704 |
|
|
Amortization of original issue discounts on long-term debt |
|
|
4,906 |
|
|
|
8,627 |
|
|
Stock-based compensation expense |
|
|
7,573 |
|
|
|
8,038 |
|
|
Accretion expense |
|
|
481 |
|
|
|
238 |
|
|
Depletion, depreciation and amortization expense |
|
|
258,543 |
|
|
|
174,142 |
|
|
Exploration and abandonment expense |
|
|
229 |
|
|
|
2,186 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
Accounts receivable |
|
|
7,038 |
|
|
|
(4,378 |
) |
|
Prepaid expenses, inventory and other assets |
|
|
(2,900 |
) |
|
|
3,941 |
|
|
Accounts payable, accrued liabilities and other current
liabilities |
|
|
(3,633 |
) |
|
|
64,961 |
|
|
Net cash provided by operating activities |
|
|
373,770 |
|
|
|
363,676 |
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
Additions to crude oil and natural gas properties |
|
|
(311,897 |
) |
|
|
(678,968 |
) |
|
Changes in working capital associated with crude oil and natural
gas property additions |
|
|
(5,226 |
) |
|
|
74,736 |
|
|
Acquisitions of crude oil and natural gas properties |
|
|
(7,415 |
) |
|
|
(7,789 |
) |
|
Proceeds from sales of properties |
|
|
48 |
|
|
|
— |
|
|
Deposit and other costs related to pending acquisitions |
|
|
— |
|
|
|
(397 |
) |
|
Other property additions |
|
|
(122 |
) |
|
|
(103 |
) |
|
Net cash used in investing activities |
|
|
(324,612 |
) |
|
|
(612,521 |
) |
|
CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
Repayments under Term Loan Credit Agreement |
|
|
(60,000 |
) |
|
|
— |
|
|
Repurchased shares under buyback program |
|
|
(14,551 |
) |
|
|
— |
|
|
Dividends paid |
|
|
(10,086 |
) |
|
|
(5,554 |
) |
|
Dividend equivalents paid |
|
|
(1,068 |
) |
|
|
(569 |
) |
|
Debt issuance costs |
|
|
(58 |
) |
|
|
(1,399 |
) |
|
Proceeds from exercises of warrants |
|
|
1 |
|
|
|
1,728 |
|
|
Borrowings under Prior Credit Agreement |
|
|
— |
|
|
|
255,000 |
|
|
Proceeds from exercises of stock options |
|
|
— |
|
|
|
148 |
|
|
Stock offering costs |
|
|
— |
|
|
|
(748 |
) |
|
Net cash (used in) provided by financing activities |
|
|
(85,762 |
) |
|
|
248,606 |
|
|
Net decrease in cash and cash equivalents |
|
|
(36,604 |
) |
|
|
(239 |
) |
|
Cash and cash equivalents,
beginning of period |
|
|
194,515 |
|
|
|
30,504 |
|
|
Cash and cash equivalents, end
of period |
|
$ |
157,911 |
|
|
$ |
30,265 |
|
|
|
|
|
|
|
|
|
|
HighPeak Energy, Inc. |
|
Unaudited Summary Operating Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
Average Daily Sales
Volumes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil (Bbls) |
|
|
37,073 |
|
|
|
35,483 |
|
|
|
38,516 |
|
|
|
33,506 |
|
|
NGLs (Bbls) |
|
|
6,018 |
|
|
|
3,681 |
|
|
|
5,583 |
|
|
|
3,482 |
|
|
Natural gas (Mcf) |
|
|
32,640 |
|
|
|
18,256 |
|
|
|
30,187 |
|
|
|
16,444 |
|
|
Total (Boe) |
|
|
48,531 |
|
|
|
42,207 |
|
|
|
49,130 |
|
|
|
39,728 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Realized
Prices (excluding effects of derivatives): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil per Bbl |
|
$ |
81.39 |
|
|
$ |
73.21 |
|
|
$ |
79.45 |
|
|
$ |
74.55 |
|
|
NGL per Bbl |
|
$ |
20.32 |
|
|
$ |
20.77 |
|
|
$ |
22.45 |
|
|
$ |
23.71 |
|
|
Natural gas per Mcf |
|
$ |
0.13 |
|
|
$ |
0.70 |
|
|
$ |
0.68 |
|
|
$ |
1.37 |
|
|
Total per Boe |
|
$ |
62.33 |
|
|
$ |
62.68 |
|
|
$ |
62.97 |
|
|
$ |
64.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Margin Data ($ per
Boe): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average price |
|
$ |
62.33 |
|
|
$ |
62.68 |
|
|
$ |
62.97 |
|
|
$ |
64.60 |
|
|
Lease operating expenses |
|
|
(6.79 |
) |
|
|
(8.39 |
) |
|
|
(6.54 |
) |
|
|
(8.48 |
) |
|
Expense workovers |
|
|
(0.63 |
) |
|
|
(0.71 |
) |
|
|
(0.51 |
) |
|
|
(0.96 |
) |
|
Production and ad valorem
taxes |
|
|
(3.76 |
) |
|
|
(3.45 |
) |
|
|
(3.47 |
) |
|
|
(3.55 |
) |
|
|
|
$ |
51.15 |
|
|
$ |
50.13 |
|
|
$ |
52.45 |
|
|
$ |
51.61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HighPeak Energy, Inc. |
|
Unaudited Earnings Per Share Details |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
Net income as reported |
|
$ |
29,717 |
|
|
$ |
31,826 |
|
|
$ |
36,155 |
|
|
$ |
82,083 |
|
|
Participating basic earnings |
|
|
(2,860 |
) |
|
|
(2,942 |
) |
|
|
(3,466 |
) |
|
|
(7,590 |
) |
|
Basic earnings attributable to
common shareholders |
|
|
26,857 |
|
|
|
28,884 |
|
|
|
32,689 |
|
|
|
74,493 |
|
|
Reallocation of participating earnings |
|
|
36 |
|
|
|
46 |
|
|
|
37 |
|
|
|
123 |
|
|
Diluted net income
attributable to common shareholders |
|
$ |
26,893 |
|
|
$ |
28,930 |
|
|
$ |
32,726 |
|
|
$ |
74,616 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average shares
outstanding |
|
|
125,341 |
|
|
|
111,227 |
|
|
|
125,341 |
|
|
|
111,227 |
|
|
Dilutive warrants and unvested stock options |
|
|
1,753 |
|
|
|
2,592 |
|
|
|
1,770 |
|
|
|
3,741 |
|
|
Dilutive unvested restricted stock |
|
|
2,154 |
|
|
|
2,159 |
|
|
|
2,154 |
|
|
|
2,159 |
|
|
Diluted weighted average
shares outstanding |
|
|
129,248 |
|
|
|
115,978 |
|
|
|
129,265 |
|
|
|
117,127 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share
attributable to common shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.21 |
|
|
$ |
0.26 |
|
|
$ |
0.26 |
|
|
$ |
0.67 |
|
|
Diluted |
|
$ |
0.21 |
|
|
$ |
0.25 |
|
|
$ |
0.25 |
|
|
$ |
0.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HighPeak Energy, Inc. |
|
Unaudited Reconciliation of Net Income to EBITDAX,
Discretionary Cash Flow and Net Cash Provided by
Operations |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
Net income |
|
$ |
29,717 |
|
|
$ |
31,826 |
|
|
$ |
36,155 |
|
|
$ |
82,083 |
|
|
Interest expense |
|
|
42,991 |
|
|
|
39,284 |
|
|
|
86,625 |
|
|
|
66,256 |
|
|
Interest income |
|
|
(2,400 |
) |
|
|
(163 |
) |
|
|
(4,792 |
) |
|
|
(193 |
) |
|
Income tax expense |
|
|
14,250 |
|
|
|
9,644 |
|
|
|
16,547 |
|
|
|
24,151 |
|
|
Depletion, depreciation and
amortization |
|
|
127,693 |
|
|
|
93,011 |
|
|
|
258,543 |
|
|
|
174,142 |
|
|
Accretion of discount |
|
|
242 |
|
|
|
120 |
|
|
|
481 |
|
|
|
238 |
|
|
Exploration and abandonment
expense |
|
|
167 |
|
|
|
480 |
|
|
|
665 |
|
|
|
2,644 |
|
|
Stock based compensation |
|
|
3,775 |
|
|
|
3,984 |
|
|
|
7,573 |
|
|
|
8,038 |
|
|
Derivative related noncash
activity |
|
|
(2,606 |
) |
|
|
(703 |
) |
|
|
45,289 |
|
|
|
(6,017 |
) |
|
Other expense |
|
|
2,000 |
|
|
|
7,502 |
|
|
|
2,001 |
|
|
|
7,502 |
|
|
EBITDAX |
|
|
215,829 |
|
|
|
184,985 |
|
|
|
449,087 |
|
|
|
358,844 |
|
|
Cash interest expense |
|
|
(38,472 |
) |
|
|
(31,911 |
) |
|
|
(77,600 |
) |
|
|
(51,925 |
) |
|
Other (a) |
|
|
220 |
|
|
|
(7,583 |
) |
|
|
1,778 |
|
|
|
(7,767 |
) |
|
Discretionary cash flow |
|
|
177,577 |
|
|
|
145,491 |
|
|
|
373,265 |
|
|
|
299,152 |
|
|
Changes in operating assets
and liabilities |
|
|
24,754 |
|
|
|
28,179 |
|
|
|
505 |
|
|
|
64,524 |
|
|
Net cash provided by operating activities |
|
$ |
202,331 |
|
|
$ |
173,670 |
|
|
$ |
373,770 |
|
|
$ |
363,676 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) includes
interest and other 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 EndedJune 30, 2024 |
|
Six Months EndedJune 30, 2024 |
|
|
|
Amounts |
|
Amounts per Diluted Share |
|
Amounts |
|
Amounts per Diluted Share |
|
Net income |
|
$ |
29,717 |
|
|
$ |
0.21 |
|
|
$ |
36,155 |
|
|
$ |
0.25 |
|
|
Derivative loss, net |
|
|
2,702 |
|
|
|
0.02 |
|
|
|
55,745 |
|
|
|
0.39 |
|
|
Stock-based compensation |
|
|
3,775 |
|
|
|
0.03 |
|
|
|
7,573 |
|
|
|
0.05 |
|
|
Other expense |
|
|
2,000 |
|
|
|
0.01 |
|
|
|
2,001 |
|
|
|
0.01 |
|
|
Deferred tax asset
revision |
|
|
2,999 |
|
|
|
0.02 |
|
|
|
2,999 |
|
|
|
0.02 |
|
|
Income tax adjustment for
above items * |
|
|
(1,780 |
) |
|
|
(0.01 |
) |
|
|
(13,717 |
) |
|
|
(0.10 |
) |
|
Adjusted net income |
|
$ |
39,413 |
|
|
$ |
0.28 |
|
|
$ |
90,756 |
|
|
$ |
0.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Assuming a 21%
tax rate, excluding the deferred tax asset revision item |
|
HighPeak Energy, Inc. |
Unaudited Cash Margin Reconciliation |
(in thousands, except per Boe data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil, NGL and natural gas sales revenue |
|
$ |
275,266 |
|
|
$ |
240,760 |
|
|
$ |
563,030 |
|
|
$ |
464,554 |
|
Less: Lease operating
expenses |
|
|
(29,998 |
) |
|
|
(32,226 |
) |
|
|
(58,509 |
) |
|
|
(60,946 |
) |
Less: Workover expenses |
|
|
(2,800 |
) |
|
|
(2,708 |
) |
|
|
(4,560 |
) |
|
|
(6,930 |
) |
Less: Production and ad
valorem taxes |
|
|
(16,596 |
) |
|
|
(13,259 |
) |
|
|
(30,998 |
) |
|
|
(25,556 |
) |
Less: General and
administrative expenses |
|
|
(4,735 |
) |
|
|
(2,516 |
) |
|
|
(9,420 |
) |
|
|
(5,018 |
) |
Cash Margin |
|
$ |
221,137 |
|
|
$ |
190,051 |
|
|
$ |
459,543 |
|
|
$ |
366,104 |
|
Divide by: Sales volumes
(MBoe) |
|
|
4,416.4 |
|
|
|
3,840.8 |
|
|
|
8,941.7 |
|
|
|
7,190.8 |
|
Cash Margin per Boe, excluding
effects of derivatives |
|
$ |
50.07 |
|
|
$ |
49.48 |
|
|
$ |
51.39 |
|
|
$ |
50.91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Margin |
|
$ |
221,137 |
|
|
$ |
190,051 |
|
|
$ |
459,543 |
|
|
$ |
366,104 |
|
General and administrative
expenses |
|
$ |
4,735 |
|
|
$ |
2,516 |
|
|
$ |
9,420 |
|
|
$ |
5,018 |
|
Cash Operating Margin |
|
$ |
225,872 |
|
|
$ |
192,567 |
|
|
$ |
468,963 |
|
|
$ |
371,122 |
|
Divide by: Sales volumes
(MBoe) |
|
|
4,416.4 |
|
|
|
3,840.8 |
|
|
|
8,941.7 |
|
|
|
7,190.8 |
|
Cash Operating Margin per Boe,
excluding effects of derivatives |
|
$ |
51.14 |
|
|
$ |
50.14 |
|
|
$ |
52.45 |
|
|
$ |
51.61 |
|
HighPeak Energy, Inc. |
|
Unaudited Free Cash Flow Reconciliation |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2024 |
|
Six Months Ended June 30, 2024 |
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
$ |
202,331 |
|
|
$ |
373,770 |
|
|
Changes in operating assets
and liabilities |
|
|
(24,754 |
) |
|
|
(505 |
) |
|
Discretionary cash flow |
|
|
177,577 |
|
|
|
373,265 |
|
|
Less: Additions to crude oil
and natural gas properties (excluding acquisitions) |
|
|
(164,199 |
) |
|
|
(311,897 |
) |
|
Free cash flow |
|
$ |
13,378 |
|
|
$ |
61,368 |
|
|
|
|
|
|
|
|
|
|
Investor Contact:
Ryan HightowerVice President, Business
Development817.850.9204rhightower@highpeakenergy.com
Source: HighPeak Energy, Inc.
HighPeak Energy (NASDAQ:HPK)
Historical Stock Chart
From Jul 2024 to Aug 2024
HighPeak Energy (NASDAQ:HPK)
Historical Stock Chart
From Aug 2023 to Aug 2024