false 0001792849 0001792849 2024-11-04 2024-11-04 0001792849 hpk:CommonStockCustomMember 2024-11-04 2024-11-04 0001792849 hpk:WarrantCustomMember 2024-11-04 2024-11-04
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
 
FORM 8-K
 
 
 
CURRENT REPORT
 
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
 
Date of report (Date of earliest event reported): November 4, 2024
 
 
 
 
HighPeak Energy, Inc.
(Exact name of registrant as specified in its charter)
 
 
 
Delaware
333-235313
84-3533602
(State or other jurisdiction
of incorporation)
(Commission File Number)
(IRS Employer
Identification No.)
     
421 W. 3rd St., Suite 1000
Fort Worth, Texas 76102
(address of principal executive offices) (zip code)
     
(817) 850-9200
(Registrant’s telephone number, including area code)
 
 
 
Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐
Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
☐
Pre-commencements communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of Each Class
  
Trading Symbol(s)
  
Name of Each Exchange on Which Registered
Common Stock
  
HPK
  
The Nasdaq Stock Market LLC
Warrant
  
HPKEW
  
The Nasdaq Stock Market LLC
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company ☒
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 
 
 
 
 
Item 2.02   Results of Operations and Financial Condition.
 
On November 4, 2024, the Company issued a press release announcing its financial and operating results for the third quarter ended September 30, 2024. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference into this Item 2.02 by reference.
 
The information in this Current Report on Form 8-K, including Exhibit 99.1, is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liabilities of that section, and is not incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act unless specifically identified therein as being incorporated therein by reference.
 
Item 7.01   Regulation FD Disclosure.
 
The information set forth under Item 2.02 is incorporated by reference as if fully set forth herein.
 
Item 9.01.  Financial Statements and Exhibits.
 
(d)   Exhibits
 
Exhibit
No.
  
Description
     
99.1
  
104
  
Cover Page Interactive Data File (embedded within the Inline XBRL document)
 
2
 
 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
HIGHPEAK ENERGY, INC.
  
       
Date: November 4, 2024
      
 
By:
/s/ Steven W. Tholen
  
 
Name:
Steven W. Tholen
  
 
Title:
Chief Financial Officer
  
 
3 
 

Exhibit 99.1

 

 

a01.jpg

 

HighPeak Energy, Inc. Announces Third Quarter 2024 Financial and Operating Results

 

Fort Worth, Texas, November 4, 2024 (GLOBE NEWSWIRE) - HighPeak Energy, Inc. (“HighPeak” or the “Company”) (NASDAQ: HPK) today announced financial and operating results for the quarter and nine months ended September 30, 2024, and provided updated 2024 production guidance.

 

 

Highlights

Third Quarter 2024

 

 

●

Sales volumes averaged 51,346 barrels of crude oil equivalent per day (“Boe/d”), consisting of 88% liquids (crude oil and NGL), representing a 6% increase over the second quarter 2024.

 

 

●

Net income was $49.9 million, or $0.35 per diluted share, and EBITDAX (a non-GAAP financial measure defined and reconciled below) was $214.3 million, or $1.51 per diluted share.

 

 

●

Generated free cash flow (a non-GAAP financial measure defined and reconciled below) of $36.1 million, which marks the fifth consecutive quarter of positive free cash flow generation.

 

 

●

The Company reduced long-term debt by $30 million during the third quarter and has reduced long-term debt by $90 million year-to-date, paid a quarterly dividend of $0.04 per share and continued to execute its share buyback plan by repurchasing over 870,000 shares during the third quarter.

 

Recent Events

 

 

●

Increased 2024 average production guidance by more than 5% from the second quarter guidance revision and 10% from our original 2024 guidance to a range of 48,000 to 51,000 Boe/d expected for the full year 2024.

 

 

●

On November 4, 2024, the Company’s Board of Directors declared a quarterly dividend of $0.04 per common share outstanding payable in December 2024.

 

 

Statement from HighPeak Chairman and CEO, Jack Hightower:

 

“We promised this would be a year marked by steady and reliable achievements, and I am proud we have continued to demonstrate that commitment. There are three main takeaways from our third quarter results. First, our current well performance has led us to increase our full year production guidance 10% higher than originally projected. Second, our operations team continues to tighten costs, resulting in more capital and operating efficiencies across the corporate structure. Third, we continue to generate free cash flow, more than $200 million over the last five quarters, which in turn has strengthened our balance sheet and positioned us to take advantage of opportunities that increase shareholder value.

 

“With HighPeak’s core values of maintaining disciplined operations, strengthening our balance sheet and maximizing value for our shareholders, we will finish strong in 2024 and set the course for continued momentum in 2025. Concurrently, we will remain diligent in our strategic alternatives process, with the goal of identifying a line of sight that will realize optimal value of this high quality asset.”

 

1
 

 

Third Quarter 2024 Operational Update

 

HighPeak’s sales volumes during the third quarter of 2024 averaged 51,346 Boe/d, a 6% increase over second quarter of 2024. Third quarter sales volumes consisted of approximately 88% liquids (crude oil and NGL).

 

The Company ran two drilling rigs and one frac crew during the third quarter, drilled 17 gross (16.9 net) horizontal wells and completed 14 gross (10.5 net) producing horizontal wells. At September 30, 2024, the Company had 24 gross (23.9 net) horizontal wells and 1 gross (1.0 net) salt-water disposal well in various stages of drilling and completion.

 

HighPeak President, Michael Hollis, commented,

 

“The third quarter was another operationally disciplined, beat-and-raise quarter for HighPeak Energy. We increased the midpoint of our yearly production guide by an additional 5%, which is up 10% from our original guide. We also have exciting results both in our northern extension areas and our first well in the Middle Spraberry zone. The results of these successful wells bolster our massive runway of over 1,150 sub $50 oil breakeven drilling location inventory. At our current development cadence, that is over two decades of highly economic inventory.

 

“As most are aware, there are structural differences between the Delaware and the Midland Basins that results in the D,C&E cost to be less in the Midland Basin. These structural differences of depth, pressure and horse-power requirements for stimulation can lead to over $3 million of savings per well. HighPeak’s acreage enjoys similar structural differences compared with the more central portions of the Midland Basin. HighPeak’s D,C&E costs are roughly $2 million dollars cheaper per well than average Midland Basin wells. Generating similar oil recoveries for roughly 25% less cost per foot, generates superior returns. Sustaining this for decades will drive significant shareholder value.

 

“The HighPeak team continues to be focused on reducing operational and capital costs. All the hard work and effort over the last few years is now paying off. HighPeak lowered the midpoint of its 2024 LOE guide by 12.5% last quarter and we reaffirm our LOE range and tightened capital expenditure range for 2024. As continuous improvement is in our DNA, we look forward to achieving additional efficiency gains in 2025.”

 

 

Third Quarter 2024 Financial Results

 

HighPeak reported net income of $49.9 million for the third quarter of 2024, or $0.35 per diluted share. The Company reported EBITDAX of $214.3 million, or $1.51 per diluted share.

 

Third quarter average realized prices were $75.99 per barrel (“$/Bbl”) of crude oil, $21.14 per barrel of NGL and $0.42 per Mcf of natural gas, resulting in an overall realized price of $57.49 per Boe, or 76.3% of the weighted average of NYMEX crude oil prices, excluding the effects of derivatives. HighPeak’s cash costs for the third quarter were $11.81 per Boe, including lease operating expenses of $7.12 per Boe, workover expenses of $0.38 per Boe, production and ad valorem taxes of $3.26 per Boe and G&A expenses of $1.05 per Boe. As a result, the Company’s unhedged EBITDAX per Boe was $45.68, or 79.5% of the overall realized price per Boe for the quarter, excluding the effects of derivatives.

 

HighPeak’s third quarter 2024 capital expenditures to drill, complete, equip, provide facilities and for infrastructure were $140.0 million. 

 

 

Dividends

 

During the third 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 November 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 December 23, 2024 to stockholders of record on December 2, 2024.

 

2
 

 

Conference Call

 

HighPeak will host a conference call and webcast on Tuesday, November 5, 2024, at 10:00 a.m. Central Time for investors and analysts to discuss its results for the third 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.

 

 

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.

 

3
 

 

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.

 

4
 

 

HighPeak Energy, Inc.

Unaudited Condensed Consolidated Balance Sheet Data

(In thousands)

 

   

September 30,

2024

    

December 31,

2023

  

Current assets:

                

Cash and cash equivalents

   $ 135,573     $ 194,515  

Accounts receivable

     76,444       94,589  

Derivative instruments

     24,843       31,480  

Inventory

     7,966       7,254  

Prepaid expenses

     3,921       995  

Total current assets

     248,747       328,833  

Crude oil and natural gas properties, using the successful efforts method of accounting:

                

Proved properties

     3,798,128       3,338,107  

Unproved properties

     75,088       72,715  

Accumulated depletion, depreciation and amortization

     (1,079,113 )     (684,179 )

Total crude oil and natural gas properties, net

     2,794,103       2,726,643  

Other property and equipment, net

     3,483       3,572  

Derivative instruments

     —       16,059  

Other noncurrent assets

     15,133       5,684  

Total assets

  $ 3,061,466     $ 3,080,791  
                 

Current liabilities:

                

Current portion of long-term debt, net

   $ 120,000     $ 120,000  

Accounts payable – trade

     52,557       63,583  

Accrued capital expenditures

     30,388       39,231  

Revenues and royalties payable

     28,532       29,724  

Other accrued liabilities

     25,499       19,613  

Derivative instruments

     1,937       13,054  

Advances from joint interest owners

     425       262  

Operating leases

     290       528  

Accrued interest

     —       1,398  

Total current liabilities

     259,628       287,393  

Noncurrent liabilities:

                

Long-term debt, net

     953,825       1,030,299  

Deferred income taxes

     227,966       197,068  

Asset retirement obligations

     14,231       13,245  

Operating leases

     126       —  

Derivative instruments

     —       65  

Commitments and contingencies

                
                 

Stockholders' equity

                

Common stock

     13       13  

Additional paid-in capital

     1,173,231       1,189,424  

Retained earnings

     432,446       363,284  

Total stockholders' equity

     1,605,690       1,552,721  

Total liabilities and stockholders' equity

  $ 3,061,466     $ 3,080,791  

 

 

 

5
 

 

HighPeak Energy, Inc.

Unaudited Condensed Consolidated Statements of Operations

(in thousands, except per share data)

 

   

Three Months Ended September 30,

    

Nine Months Ended September 30,

  
   

2024

    

2023

    

2024

    

2023

  

Operating revenues:

                                

Crude oil sales

   $ 270,636     $ 338,372     $ 827,595     $ 790,458  

NGL and natural gas sales

     942       7,214       7,013       19,682  

Total operating revenues

     271,578       345,586       834,608       810,140  

Operating costs and expenses:

                                

Crude oil and natural gas production

     35,413       39,820       98,482       107,696  

Production and ad valorem taxes

     15,412       18,839       46,410       44,395  

Exploration and abandonments

     362       1,728       1,027       4,372  

Depletion, depreciation and amortization

     136,578       117,420       395,121       291,562  

Accretion of discount

     241       122       722       360  

General and administrative

     4,971       6,934       14,391       11,952  

Stock-based compensation

     3,753       14,057       11,326       22,095  

Total operating costs and expenses

     196,730       198,920       567,479       482,432  

Other expense

     1,404       540       3,405       8,042  

Income from operations

     73,444       146,126       263,724       319,666  

Interest income

     2,172       730       6,964       923  

Interest expense

     (42,579 )     (37,022 )     (129,204 )     (103,278 )

Loss on derivative instruments, net

     32,334       (29,655 )     (23,411 )     (30,898 )

Loss on extinguishment of debt

     —       (27,300 )     —       (27,300 )

Income before income taxes

     65,371       52,879       118,073       159,113  

Income tax expense

     15,438       14,100       31,985       38,251  

Net income

   $ 49,933     $ 38,779     $ 86,088     $ 120,862  
                                 

Earnings per share:

                                

Basic net income

   $ 0.36     $ 0.28     $ 0.62     $ 0.94  

Diluted net income

   $ 0.35     $ 0.28     $ 0.60     $ 0.90  
                                 

Weighted average shares outstanding:

                                

Basic

     124,988       123,159       125,595       115,164  

Diluted

     129,094       127,006       129,581       120,531  
                                 

Dividends declared per share

   $ 0.04     $ 0.025     $ 0.12     $ 0.075  

 

6
 

 

HighPeak Energy, Inc.

Unaudited Condensed Consolidated Statements of Cash Flows

(in thousands)

 

   

Nine Months Ended September 30,

  
   

2024

    

2023

  

CASH FLOWS FROM OPERATING ACTIVITIES:

               

Net income

   $ 86,088     $ 120,862  

Adjustments to reconcile net income to net cash provided by operations:

                

Provision for deferred income taxes

     30,898       38,251  

Loss on extinguishment of debt

     —       27,300  

Loss on derivative instruments

     23,411       30,898  

Cash paid on settlement of derivative instruments

     (11,897 )     (21,032 )

Amortization of debt issuance costs

     6,199       9,352  

Amortization of original issue discounts on long-term debt

     7,385       12,660  

Stock-based compensation expense

     11,326       22,095  

Accretion expense

     722       360  

Depletion, depreciation and amortization expense

     395,121       291,562  

Exploration and abandonment expense

     386       3,747  

Changes in operating assets and liabilities:

                

Accounts receivable

     18,145       (29,385 )

Prepaid expenses, inventory and other assets

     (12,387 )     (1,628 )

Accounts payable, accrued liabilities and other current liabilities

     (4,524 )     16,700  

Net cash provided by operating activities

     550,873       521,742  

CASH FLOWS FROM INVESTING ACTIVITIES:

               

Additions to crude oil and natural gas properties

     (452,148 )     (840,663 )

Changes in working capital associated with crude oil and natural gas property additions

     (13,214 )     (86,468 )

Acquisitions of crude oil and natural gas properties

     (10,367 )     (9,602 )

Proceeds from sales of properties

     118       —  

Deposit and other costs related to pending acquisitions

     —       (409 )

Other property additions

     (216 )     (103 )

Net cash used in investing activities

     (475,827 )     (937,245 )

CASH FLOWS FROM FINANCING ACTIVITIES:

               

Repayments under Term Loan Credit Agreement

     (90,000 )     —  

Repurchased shares under buyback program

     (27,247 )     —  

Dividends paid

     (15,082 )     (8,706 )

Dividend equivalents paid

     (1,602 )     (903 )

Debt issuance costs

     (58 )     (26,401 )

Proceeds from exercises of warrants

     1       1,728  

Borrowings under Term Loan Credit Agreement

     —       1,170,000  

Repayments under Prior Credit Agreement

     —       (525,000 )

Repayments of 10.000% Senior Notes and 10.625% Senior Notes

     —       (475,000 )

Borrowings under Prior Credit Agreement

     —       255,000  

Proceeds from issuance of common stock

     —       155,768  

Stock offering costs

     —       (5,371 )

Premium on extinguishment of debt

     —       (4,457 )

Proceeds from exercises of stock options

     —       148  

Net cash (used in) provided by financing activities

     (133,988 )     536,806  

Net (decrease) increase in cash and cash equivalents

     (58,942 )     121,303  

Cash and cash equivalents, beginning of period

     194,515       30,504  

Cash and cash equivalents, end of period

   $ 135,573     $ 151,807  

 

 

7
 

 

HighPeak Energy, Inc.

 Unaudited Summary Operating Highlights

 

   

Three Months Ended

September 30,

   

Nine Months Ended

September 30,

 
   

2024

    

2023

    

2024

    

2023

  

Average Daily Sales Volumes:

                               

Crude oil (Bbls)

     38,710       44,381       38,581       37,171  

NGLs (Bbls)

     6,497       4,708       5,890       3,895  

Natural gas (Mcf)

     36,831       21,716       32,418       18,221  

Total (Boe)

     51,346       52,708       49,874       44,102  
                                 

Average Realized Prices (excluding effects of derivatives):

                               

Crude oil per Bbl

   $ 75.99     $ 82.87     $ 78.29     $ 77.90  

NGL per Bbl

   $ 21.14     $ 20.08     $ 21.96     $ 22.23  

Natural gas per Mcf

   $ 0.42     $ 1.89     $ 0.58     $ 1.58  

Total per Boe

   $ 57.49     $ 71.27     $ 61.07     $ 67.29  
                                 

Margin Data ($ per Boe):

                               

Average price, excluding effects of derivatives

   $ 57.49     $ 71.27     $ 61.07     $ 67.29  

Lease operating expenses

     (7.12 )     (7.87 )     (6.74 )     (8.23 )

Expense workovers

     (0.38 )     (0.34 )     (0.47 )     (0.71 )

Production and ad valorem taxes

     (3.26 )     (3.89 )     (3.40 )     (3.69 )

General and administrative expenses

     (1.05 )     (1.43 )     (1.05 )     (0.99 )
    $ 45.68     $ 57.74     $ 49.41     $ 53.67  

 

 

HighPeak Energy, Inc.

 Unaudited Earnings Per Share Details

 

   

Three Months Ended

September 30,

   

Nine Months Ended

September 30,

 
   

2024

    

2023

    

2024

    

2023

  

Net income as reported

   $ 49,933     $ 38,779     $ 86,088     $ 120,862  

Participating basic earnings

     (4,835 )     (3,771 )     (8,280 )     (12,413 )

Basic earnings attributable to common shareholders

     45,098       35,008       77,808       108,449  

Reallocation of participating earnings

     66       54       102       192  

Diluted net income attributable to common shareholders

   $ 45,164     $ 35,062     $ 77,910     $ 108,641  
                                 

Basic weighted average shares outstanding

     124,988       123,159       125,595       115,164  

Dilutive warrants and unvested stock options

     1,952       1,688       1,832       3,208  

Dilutive unvested restricted stock

     2,154       2,159       2,154       2,159  

Diluted weighted average shares outstanding

     129,094       127,006       129,581       120,531  
                                 

Net income per share attributable to common shareholders:

                                

Basic

   $ 0.36     $ 0.28     $ 0.62     $ 0.94  

Diluted

   $ 0.35     $ 0.28     $ 0.60     $ 0.90  

 

8
 

 

HighPeak Energy, Inc.

Unaudited Reconciliation of Net Income to EBITDAX, Discretionary Cash Flow and Net Cash Provided by Operations

(in thousands)

 

   

Three Months Ended

September 30,

    

Nine Months Ended

September 30,

  
   

2024

    

2023

    

2024

    

2023

  

Net income

   $ 49,933     $ 38,779     $ 86,088     $ 120,862  

Interest expense

     42,579       37,022       129,204       103,278  

Interest income

     (2,172 )     (730 )     (6,964 )     (923 )

Income tax expense

     15,438       14,100       31,985       38,251  

Depletion, depreciation and amortization

     136,578       117,420       395,121       291,562  

Accretion of discount

     241       122       722       360  

Exploration and abandonment expense

     362       1,728       1,027       4,372  

Stock based compensation

     3,753       14,057       11,326       22,095  

Derivative related noncash activity

     (33,775 )     15,883       11,514       9,866  

Loss on extinguishment of debt

     —       27,300       —       27,300  

Other expense

     1,404       540       3,405       8,042  

EBITDAX

     214,341       266,221       663,428       625,065  

Cash interest expense

     (38,020 )     (33,798 )     (115,620 )     (85,723 )

Other (a)

     53       4,480       1,831       (3,287 )

Discretionary cash flow

     176,374       236,903       549,639       536,055  

Changes in operating assets and liabilities

     729       (78,837 )     1,234       (14,313 )

Net cash provided by operating activities

   $ 177,103     $ 158,066     $ 550,873     $ 521,742  

 

(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 Free Cash Flow Reconciliation

 (in thousands)

 

   

Three Months Ended

September 30, 2024

    

Nine Months Ended

September 30, 2024

  
                 

Net cash provided by operating activities

   $ 177,103     $ 550,873  

Changes in operating assets and liabilities

     (729 )     (1,234 )

Discretionary cash flow

     176,374       549,639  

Less: Additions to crude oil and natural gas properties (excluding acquisitions)

     (140,251 )     (452,148 )

Free cash flow

   $ 36,123     $ 97,491  

 

 

Investor Contact:

 

Ryan Hightower

Vice President, Business Development

817.850.9204

rhightower@highpeakenergy.com

 

Source: HighPeak Energy, Inc.

 

9
v3.24.3
Document And Entity Information
Nov. 04, 2024
Document Information [Line Items]  
Entity, Registrant Name HighPeak Energy, Inc.
Document, Type 8-K
Document, Period End Date Nov. 04, 2024
Entity, Incorporation, State or Country Code DE
Entity, File Number 333-235313
Entity, Tax Identification Number 84-3533602
Entity, Address, Address Line One 421 W. 3rd St., Suite 1000
Entity, Address, City or Town Fort Worth
Entity, Address, State or Province TX
Entity, Address, Postal Zip Code 76102
City Area Code 817
Local Phone Number 850-9200
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity, Emerging Growth Company true
Entity, Ex Transition Period false
Amendment Flag false
Entity, Central Index Key 0001792849
CommonStock Custom [Member]  
Document Information [Line Items]  
Title of 12(b) Security Common Stock
Trading Symbol HPK
Security Exchange Name NASDAQ
Warrant Custom [Member]  
Document Information [Line Items]  
Title of 12(b) Security Warrant
Trading Symbol HPKEW
Security Exchange Name NASDAQ
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