8-K
HighPeak Energy, Inc. (HPK)
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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): August 7, 2023
| HighPeak Energy, Inc. | ||
|---|---|---|
| (Exact name of registrant as specified in its charter) | ||
| Delaware | 333-235313 | 84-3533602 |
| --- | --- | --- |
| (State or other jurisdiction<br> of incorporation) | (Commission File Number) | (IRS Employer<br> Identification No.) |
| 421 W. 3rd St., Suite 1000<br><br> <br>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 August 7, 2023, the Company issued a press release announcing its financial and operating results for the second quarter ended June 30, 2023. 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<br><br> <br>No. | Description |
| --- | --- |
| 99.1 | Press Release dated August 7, 2023. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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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: August 7, 2023 | ||
| By: | /s/ Steven W. Tholen | |
| Name: | Steven W. Tholen | |
| Title: | Chief Financial Officer |
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ex_555042.htm
Exhibit 99.1
HighPeak Energy, Inc. Announces Second Quarter 2023 Financial and Operating Results
Fort Worth, Texas, August 7, 2023 (GLOBE NEWSWIRE) - HighPeak Energy, Inc. (“HighPeak” or the “Company”) (NASDAQ: HPK) today announced financial and operating results for the quarter ended June 30, 2023.
Highlights
Second Quarter 2023
| ● | Sales volumes, consisting of 84% crude oil and 93% liquids, averaged 42,207 barrels of crude oil equivalent per day (“Boe/d”), representing a 13% increase over first quarter 2023 and a 92% increase over second quarter 2022. Third quarter-to-date production has averaged over 50,000 Boe/d. |
|---|---|
| ● | Net income and EBITDAX (a non-GAAP financial measure defined and reconciled below) were $31.8 million and $185.0 million, respectively. |
| --- | --- |
| ● | Realized price averaged $62.68 per Boe, or 85% of the weighted average of NYMEX WTI crude oil prices, excluding the effects of derivatives. |
| --- | --- |
| ● | Cash operating margin of $50.14 per Boe, or 80% of the average realized price per Boe, excluding the effects of derivatives. |
| --- | --- |
| ● | Horizontal wells turned in line throughout the second quarter numbered 42 gross (40.3 net). At the end of the second quarter, the Company had 42 gross (35.7 net) horizontal wells in various stages of drilling and completion. |
| --- | --- |
Recent Event
| ● | HighPeak completed a public equity offering on July 21, 2023, whereby 14,835,000 shares of common stock, including an over-allotment of 1,935,000 shares, were issued for net proceeds of $151.2 million, enhancing near-term liquidity. |
|---|
HighPeak Chairman and CEO, Jack Hightower, said, “I understand that there were doubts about the productivity of eastern Howard County. However, achieving the impressive milestone of producing 50,000 Boe per day, consisting of 84% oil from just over 200 producing horizontal wells, all while maintaining industry-leading margins, serves as a clear testament to the caliber of our assets. We have now achieved positive cash flow from our operations with our current two-rig program. Our intention moving forward is to finance our drilling program through operational cash flow.
“Our recent equity offering, wherein both our management and significant stakeholders made substantial investments alongside the public, played a crucial role in positioning the Company to effectively execute our comprehensive long-term strategic plan. We are also making notable headway in the refinancing of our near-term debt maturities, with expectations of finalizing this financing within the current quarter. Our primary focus remains on generating free cash flow, fortifying our balance sheet, and consistently delivering incremental value to our shareholders.”
Second Quarter 2023 Operational Update
HighPeak’s sales volumes during the second quarter of 2023 averaged 42,207 Boe/d, an increase of approximately 13% compared with the first quarter of 2023. Second quarter sales volumes consisted of approximately 84% crude oil and 93% liquids.
In accordance with the Company’s updated development outlook, the Company was running five drilling rigs at the beginning of the second quarter and reduced to two drilling rigs by the beginning of June 2023. The Company started and ended the quarter with four and two fracs crews, respectively. During the second quarter of 2023, the Company drilled 24 gross (23.1 net) horizontal wells and completed 42 gross (40.3 net) operated producing wells. At June 30, 2023, the Company had 42 gross (35.7 net) horizontal wells in various stages of drilling and completion. Currently, the Company is running two drilling rigs and one frac crew.
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HighPeak President, Michael Hollis, commented, “Given the high oil cut and increasingly efficient operations, our cash margins are consistently and considerably higher than our peers. Now that both Flat Top and Signal Peak are fully delineated with infrastructure nearly complete, our acreage in eastern Howard County speaks for itself. Over the foreseeable future, we will continue to focus on Wolfcamp A and Lower Spraberry zones within both Flat Top and Signal Peak areas that have proven well results. At our current two-rig program, we have over 12 years of inventory in just these two premium zones.”
Second Quarter 2023 Financial Results
HighPeak reported net income of $31.8 million for the second quarter of 2023, or $0.25 per diluted share, and EBITDAX of $185.0 million, or $1.45 per diluted share.
Second quarter average realized prices were $73.21 per barrel of crude oil, $20.77 per barrel of NGL and $0.70 per Mcf of natural gas, resulting in an overall realized price of $62.68 per Boe, or 85% of the weighted average of NYMEX crude oil prices, excluding the effects of derivatives. HighPeak’s cash costs for the second quarter were $13.21 per Boe, including lease operating expenses of $8.39 per Boe, workover expenses of $0.71 per Boe, production and ad valorem taxes of $3.45 per Boe and cash G&A expenses of $0.66 per Boe. The Company’s cash margin was $49.48 per Boe, or 79% of the overall realized price per Boe for the quarter, excluding the effects of derivatives.
HighPeak’s second quarter 2023 capital expenditures to drill, complete, equip, provide facilities and for infrastructure were $299.6 million. In addition, the Company incurred capital expenditures of approximately $2.3 million primarily related to leasehold acquisitions.
Hedging
As of June 30, 2023, the Company had crude oil swaps in place to hedge 276,000 barrels of its remaining 2023 crude oil production, or 1,500 barrels of oil per day, at an average swap price of $72.30 per barrel. In addition, the Company had deferred premium put options in place for the remainder of 2023 and through September 2024 totaling 1.56 million barrels and 2.74 million barrels, or 8,500 and 10,000 barrels of oil per day, respectively, with deferred premiums of $5.00 per barrel and strike prices averaging $57.82 and $53.83 for the remainder of 2023 and 2024, respectively. In addition, in July 2023, the Company entered into an additional crude oil swap contract for an average of approximately 8,000 barrels of oil per day for the second half of 2023 at a swap price of $74.46 per barrel. The Company’s crude oil derivative contracts are based on reported settlement prices on the New York Mercantile Exchange for West Texas Intermediate pricing.
Dividends
During the second quarter of 2023, the Company’s Board of Directors approved quarterly dividends of $0.025 per share, or $2.8 million in dividends paid to stockholders during the quarter. In addition, in July 2023, the Company’s Board of Directors declared a quarterly dividend of $0.025 per share, or $3.2 million in dividends to be paid to stockholders on August 25, 2023.
Conference Call
HighPeak Energy will host a conference call and webcast on Tuesday, August 8, 2023, at 10:00 a.m. Central Time for investors and analysts to discuss its results for the second quarter of 2023. 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.
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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 the 2023 and 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.
Use of Projections
The financial, operational, industry and market projections, estimates and targets in this press release and in 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.
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| HighPeak Energy, Inc.<br><br> <br>Unaudited Condensed Consolidated Balance Sheet Data<br><br> <br>(In thousands) | ||||||
|---|---|---|---|---|---|---|
| June 30, 2023 | December 31, 2022 | |||||
| --- | --- | --- | --- | --- | --- | --- |
| Current assets: | ||||||
| Cash and cash equivalents | $ | 30,265 | $ | 30,504 | ||
| Accounts receivable | 100,974 | 96,596 | ||||
| Inventory | 9,201 | 13,275 | ||||
| Prepaid expenses | 3,154 | 4,133 | ||||
| Derivatives | 435 | 17 | ||||
| Total current assets | 144,029 | 144,525 | ||||
| Crude oil and natural gas properties, using the successful efforts method of accounting: | ||||||
| Proved properties | 2,977,987 | 2,270,236 | ||||
| Unproved properties | 91,630 | 114,665 | ||||
| Accumulated depletion, depreciation and amortization | (434,006 | ) | (259,962 | ) | ||
| Total crude oil and natural gas properties, net | 2,635,611 | 2,124,939 | ||||
| Other property and equipment, net | 3,592 | 3,587 | ||||
| Other noncurrent assets | 6,771 | 6,431 | ||||
| Total assets | $ | 2,790,003 | $ | 2,279,482 | ||
| Current liabilities: | ||||||
| Current portion of long-term debt, net | $ | 741,155 | $ | — | ||
| Accounts payable - trade | 215,845 | 105,565 | ||||
| Accrued capital expenditures | 102,727 | 91,842 | ||||
| Revenues and royalties payable | 36,480 | 15,623 | ||||
| Other accrued liabilities | 15,815 | 13,152 | ||||
| Accrued interest | 14,049 | 15,600 | ||||
| Derivatives | 10,700 | 16,702 | ||||
| Advances from joint interest owners | 782 | 7,302 | ||||
| Operating leases | 622 | 343 | ||||
| Total current liabilities | 1,138,175 | 266,129 | ||||
| Noncurrent liabilities: | ||||||
| Long-term debt, net | 231,854 | 704,349 | ||||
| Deferred income taxes | 155,315 | 131,164 | ||||
| Asset retirement obligations | 7,886 | 7,502 | ||||
| Derivatives | 1,094 | 691 | ||||
| Operating leases | 269 | — | ||||
| Commitments and contingencies | ||||||
| Stockholders' equity | ||||||
| Common stock | 11 | 11 | ||||
| Additional paid-in capital | 1,018,810 | 1,008,896 | ||||
| Retained earnings | 236,589 | 160,740 | ||||
| Total stockholders' equity | 1,255,410 | 1,169,647 | ||||
| Total liabilities and stockholders' equity | $ | 2,790,003 | $ | 2,279,482 |
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| HighPeak Energy, Inc. | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Unaudited Condensed Consolidated Statements of Operations | ||||||||||||
| (in thousands, except per share data) | ||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2023 | 2022 | 2023 | 2022 | |||||||||
| Operating revenues: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Crude oil sales | $ | 236,390 | $ | 190,926 | $ | 452,086 | $ | 277,864 | ||||
| NGL and natural gas sales | 4,370 | 10,502 | 12,468 | 15,793 | ||||||||
| Total operating revenues | 240,760 | 201,428 | 464,554 | 293,657 | ||||||||
| Operating costs and expenses: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Crude oil and natural gas production | 34,934 | 16,595 | 67,876 | 26,041 | ||||||||
| Production and ad valorem taxes | 13,259 | 10,301 | 25,556 | 15,307 | ||||||||
| Exploration and abandonments | 480 | 184 | 2,644 | 393 | ||||||||
| Depletion, depreciation and amortization | 93,011 | 34,883 | 174,142 | 51,907 | ||||||||
| Accretion of discount | 120 | 66 | 238 | 120 | ||||||||
| General and administrative | 2,516 | 2,016 | 5,018 | 3,956 | ||||||||
| Stock-based compensation | 3,984 | 14,579 | 8,038 | 18,555 | ||||||||
| Total operating costs and expenses | 148,304 | 78,624 | 283,512 | 116,279 | ||||||||
| Other expense | 7,502 | — | 7,502 | — | ||||||||
| Income from operations | 84,954 | 122,804 | 173,540 | 177,378 | ||||||||
| Interest and other income | 163 | 2 | 193 | 252 | ||||||||
| Interest expense | (39,284 | ) | (9,282 | ) | (66,256 | ) | (14,534 | ) | ||||
| Derivative loss, net | (4,363 | ) | (11,891 | ) | (1,243 | ) | (78,285 | ) | ||||
| Income before income taxes | 41,470 | 101,633 | 106,234 | 84,811 | ||||||||
| Income tax expense | 9,644 | 24,072 | 24,151 | 23,760 | ||||||||
| Net income | $ | 31,826 | $ | 77,561 | $ | 82,083 | $ | 61,051 | ||||
| Earnings per share: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Basic net income | $ | 0.26 | $ | 0.69 | $ | 0.67 | $ | 0.56 | ||||
| Diluted net income | $ | 0.25 | $ | 0.64 | $ | 0.64 | $ | 0.52 | ||||
| Weighted average shares outstanding: | ||||||||||||
| Basic | 111,227 | 103,178 | 111,227 | 99,530 | ||||||||
| Diluted | 115,978 | 111,228 | 117,127 | 106,843 | ||||||||
| Dividends declared per share | $ | 0.025 | $ | 0.025 | $ | 0.05 | $ | 0.05 |
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| HighPeak Energy, Inc. | ||||||
|---|---|---|---|---|---|---|
| Unaudited Condensed Consolidated Statements of Cash Flows | ||||||
| (in thousands) | ||||||
| Six Months Ended June 30, | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| 2023 | 2022 | |||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | **** | **** | **** | **** | **** | **** |
| Net income | $ | 82,083 | $ | 61,051 | ||
| Adjustments to reconcile net income to net cash provided by operations: | ||||||
| Exploration and abandonment expense | 2,186 | 32 | ||||
| Depletion, depreciation and amortization expense | 174,142 | 51,907 | ||||
| Accretion expense | 238 | 120 | ||||
| Stock-based compensation expense | 8,038 | 18,555 | ||||
| Amortization of debt issuance costs | 5,704 | 1,781 | ||||
| Amortization of original issue discounts on 10.000% Senior Notes and 10.625% Senior Notes | 8,627 | 2,741 | ||||
| Derivative-related activity | (6,017 | ) | 16,442 | |||
| Deferred income taxes | 24,151 | 23,760 | ||||
| Changes in operating assets and liabilities: | ||||||
| Accounts receivable | (4,378 | ) | (50,857 | ) | ||
| Prepaid expenses, inventory and other assets | 3,941 | (2,571 | ) | |||
| Accounts payable, accrued liabilities and other current liabilities | 64,961 | 25,225 | ||||
| Net cash provided by operating activities | 363,676 | 148,186 | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | **** | **** | **** | **** | **** | **** |
| Additions to crude oil and natural gas properties | (678,968 | ) | (403,177 | ) | ||
| Changes in working capital associated with crude oil and natural gas property additions | 74,736 | 105,476 | ||||
| Acquisitions of crude oil and natural gas properties | (7,789 | ) | (250,448 | ) | ||
| Deposit and other costs on pending acquisition | (397 | ) | — | |||
| Other property additions | (103 | ) | (996 | ) | ||
| Net cash used in investing activities | (612,521 | ) | (549,145 | ) | ||
| CASH FLOWS FROM FINANCING ACTIVITIES: | **** | **** | **** | **** | **** | **** |
| Borrowings under Credit Agreement | 255,000 | 380,000 | ||||
| Proceeds from exercises of stock options | 148 | 120 | ||||
| Proceeds from exercises of warrants | 1,728 | 7,750 | ||||
| Debt issuance costs | (1,399 | ) | (9,098 | ) | ||
| Dividends paid | (5,554 | ) | (4,959 | ) | ||
| Stock offering costs | (748 | ) | (58 | ) | ||
| Dividend equivalents paid | (569 | ) | (427 | ) | ||
| Proceeds from issuance of 10.000% Senior Notes, net of discount | — | 210,179 | ||||
| Repayments under Credit Agreement | — | (195,000 | ) | |||
| Net cash provided by financing activities | 248,606 | 388,507 | ||||
| Net decrease in cash and cash equivalents | (239 | ) | (12,452 | ) | ||
| Cash and cash equivalents, beginning of period | 30,504 | 34,869 | ||||
| Cash and cash equivalents, end of period | $ | 30,265 | $ | 22,417 |
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| HighPeak Energy, Inc. | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Unaudited Summary Operating Highlights | |||||||||||
| Six Months Ended June 30, | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2022 | 2023 | 2022 | |||||||||
| Sales Volumes: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Crude oil (Bbls) | 3,228,942 | 1,716,084 | 6,064,560 | 2,620,296 | |||||||
| NGLs (Bbls) | 334,984 | 176,438 | 630,170 | 284,250 | |||||||
| Natural gas (Mcf) | 1,661,276 | 654,299 | 2,976,310 | 1,090,181 | |||||||
| Total (Boe) | 3,840,805 | 2,001,572 | 7,190,782 | 3,086,243 | |||||||
| Daily Sales Volumes: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Crude oil (Bbls/d) | 35,483 | 18,858 | 33,506 | 14,477 | |||||||
| NGLs (Bbls/d) | 3,681 | 1,939 | 3,482 | 1,570 | |||||||
| Natural gas (Mcf/d) | 18,256 | 7,190 | 16,444 | 6,023 | |||||||
| Total (Boe/d) | 42,207 | 21,995 | 39,728 | 17,051 | |||||||
| Revenues (in thousands): | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Crude oil sales | 236,390 | $ | 190,926 | $ | 452,086 | $ | 277,864 | ||||
| Crude oil derivative settlements | (5,066 | ) | (37,082 | ) | (7,260 | ) | (61,843 | ) | |||
| NGL and natural gas sales | 4,370 | 10,502 | 12,468 | 15,793 | |||||||
| Natural gas derivative settlements | — | — | — | — | |||||||
| Total revenues, including derivative settlements | 235,694 | $ | 164,346 | $ | 457,294 | $ | 231,814 | ||||
| Average sales prices: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Crude oil (per Bbl) | 73.21 | $ | 111.26 | $ | 74.55 | $ | 106.04 | ||||
| Crude oil derivative settlements (per Bbl) | (1.57 | ) | (21.61 | ) | (1.20 | ) | (23.60 | ) | |||
| NGL (per Bbl) | 20.77 | 47.29 | 23.71 | 45.03 | |||||||
| Natural gas (per Mcf) | 0.70 | 6.02 | 1.37 | 5.28 | |||||||
| Natural gas derivative settlements (per Mcf) | — | — | — | — | |||||||
| Total, including derivative contract settlements (per Boe) | 61.37 | $ | 82.11 | $ | 63.59 | $ | 75.11 | ||||
| Weighted Average NYMEX WTI (/Bbl) | 73.59 | $ | 108.77 | $ | 74.78 | $ | 103.93 | ||||
| Weighted Average NYMEX Henry Hub (/Mcf) | 2.10 | 6.99 | 2.67 | 6.15 | |||||||
| Realization to benchmark | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Crude oil | 99 | % | 102 | % | 100 | % | 102 | % | |||
| Natural gas | 33 | % | 86 | % | 51 | % | 86 | % | |||
| Operating Costs and Expenses (in thousands): | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Lease operating expenses | 32,226 | $ | 16,553 | $ | 60,946 | $ | 25,898 | ||||
| Expense workovers | 2,708 | 42 | 6,930 | 143 | |||||||
| Production and ad valorem taxes | 13,259 | 10,301 | 25,556 | 15,307 | |||||||
| General and administrative expenses | 2,516 | 2,016 | 5,018 | 3,956 | |||||||
| Depletion, depreciation and amortization | 93,011 | 34,883 | 174,142 | 51,907 | |||||||
| Operating costs per Boe: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Lease operating expenses | 8.39 | $ | 8.27 | $ | 8.48 | $ | 8.39 | ||||
| Expense workovers | 0.71 | 0.02 | 0.96 | 0.05 | |||||||
| Production and ad valorem taxes | 3.45 | 5.15 | 3.55 | 4.96 | |||||||
| General and administrative expenses | 0.66 | 1.01 | 0.70 | 1.28 | |||||||
| Depletion, depreciation and amortization | 24.22 | 17.43 | 24.22 | 16.82 |
All values are in US Dollars.
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| HighPeak Energy, Inc. | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Unaudited Reconciliation of Net Income to EBITDAX | ||||||||||||
| (in thousands) | ||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2023 | 2022 | 2023 | 2022 | |||||||||
| Net income | $ | 31,826 | $ | 77,561 | $ | 82,083 | $ | 61,051 | ||||
| Interest expense | 39,284 | 9,282 | 66,256 | 14,534 | ||||||||
| Interest and other income | (163 | ) | (2 | ) | (193 | ) | (252 | ) | ||||
| Income tax expense | 9,644 | 24,072 | 24,151 | 23,760 | ||||||||
| Depletion, depreciation and amortization | 93,011 | 34,883 | 174,142 | 51,907 | ||||||||
| Accretion of discount | 120 | 66 | 238 | 120 | ||||||||
| Exploration and abandonment expense | 480 | 184 | 2,644 | 393 | ||||||||
| Stock based compensation | 3,984 | 14,579 | 8,038 | 18,555 | ||||||||
| Derivative related noncash activity | (703 | ) | (25,191 | ) | (6,017 | ) | 16,442 | |||||
| Other expense | 7,502 | — | 7,502 | — | ||||||||
| EBITDAX | $ | 184,985 | $ | 135,434 | $ | 358,844 | $ | 186,510 | ||||
| HighPeak Energy, Inc. | ||||||||||||
| --- | ||||||||||||
| Unaudited Cash Margin Reconciliation | ||||||||||||
| (in thousands, except per Boe data) | ||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2023 | 2022 | 2023 | 2022 | |||||||||
| Crude oil, NGL and natural gas sales revenue | $ | 240,760 | $ | 201,428 | $ | 464,554 | $ | 293,657 | ||||
| Less: Lease operating expenses | (32,226 | ) | (16,553 | ) | (60,946 | ) | (25,898 | ) | ||||
| Less: Workover expenses | (2,708 | ) | (42 | ) | (6,930 | ) | (143 | ) | ||||
| Less: Production and ad valorem taxes | (13,259 | ) | (10,301 | ) | (25,556 | ) | (15,307 | ) | ||||
| Less: General and administrative expenses | (2,516 | ) | (2,016 | ) | (5,018 | ) | (3,956 | ) | ||||
| Cash Margin | $ | 190,051 | $ | 172,516 | $ | 366,104 | $ | 248,353 | ||||
| Divide by: Sales volumes (MBoe) | 3,840.8 | 2,001.6 | 7,190.8 | 3,086.2 | ||||||||
| Cash Margin per Boe, excluding effects of derivatives | $ | 49.48 | $ | 86.19 | $ | 50.91 | $ | 80.47 | ||||
| Cash Margin | $ | 190,051 | $ | 172,516 | $ | 366,104 | $ | 248,353 | ||||
| General and administrative expenses | $ | 2,516 | $ | 2,016 | $ | 5,018 | $ | 3,956 | ||||
| Divide by: Sales volumes (MBoe) | 3,840.8 | 2,001.6 | 7,190.8 | 3,086.2 | ||||||||
| Cash Operating Margin per Boe, excluding effects of derivatives | $ | 50.14 | $ | 87.21 | $ | 51.61 | $ | 81.75 |
Investor Contact:
Ryan Hightower
Vice President, Business Development
817.850.9204
rhightower@highpeakenergy.com
Source: HighPeak Energy, Inc.
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