HighPeak Energy, Inc. Announces Fourth Quarter and Yearend 2023 Financial and Operating Results and Provides 2024 Guidance

March 6, 2024

FORT WORTH, Texas, March 06, 2024 (GLOBE NEWSWIRE) -- HighPeak Energy, Inc. (“HighPeak” or the “Company”) (NASDAQ: HPK) today announced financial and operating results for the quarter and the year ended December 31, 2023. In addition, HighPeak provided its 2024 guidance and capital budget, as approved by its Board of Directors.

Fourth Quarter 2023

  • The Company surpassed the milestone of $1 billion in revenues in 2023 and generated free cash flow (a non-GAAP financial measure defined and reconciled below) of $33.7 million in the fourth quarter.
  • Sales volumes, consisting of 81% crude oil and 92% liquids, averaged 50.0 thousand barrels of crude oil equivalent per day (“MBoe/d”), representing a 34% increase over fourth quarter 2022. Volumes were approximately 3,300 Boe/d lower than expected due to weather and unscheduled midstream maintenance interruptions.
  • Net income and EBITDAX (a non-GAAP financial measure defined and reconciled below) were $95.0 million and $241.6 million, respectively.
  • The Company significantly increased its net acreage position to approximately 132,000 total net acres primarily through acquisitions in northern Flat Top, where production profiles in the Wolfcamp A and Lower Spraberry zones are expected to resemble its core Flat Top operating area.
  • Realized price averaged $65.53 per Boe, or 83% of the weighted average of NYMEX WTI crude oil prices, excluding the effects of derivatives.
  • Cash operating margin averaged $54.27 per Boe, or 83% of the average realized price per Boe, excluding the effects of derivatives.
  • On November 1st, the Company completed a $100 million super priority revolving credit facility with $75.0 million of initial commitments, which provides the Company with additional liquidity and flexibility. The facility matures in September 2026, simultaneous with the Company’s $1.2 billion term loan.

Recent Events

  • On February 5, 2024, the Company announced both a 60% increase to its quarterly dividend, from $.025 to $0.04 per common share outstanding, and a share repurchase authorization of up to $75.0 million of common stock.

HighPeak Chairman and CEO, Jack Hightower, said, “2023 was a transformational year for HighPeak and we are continuing to carry positive momentum into 2024. We were within the range on our annual production and budget guides while growing our production 86% year over year, which is a testament to the quality of our asset base and the caliber of our operations team.

In 2024, now that HighPeak is an established player in the Permian, our focus shifts to a steadfast commitment of maintaining capital discipline, generating free cash flow and returning value to shareholders. In addition, we have engaged Texas Capital Securities and Wells Fargo Securities to assist us in our pursuit of strategic alternatives. In a market landscape where oily, high-margin production and premier inventory are being pursued aggressively, we consider ourselves extremely fortunate to possess assets that meet these criteria.”

2024 Development Outlook

The Company expects to average two (2) drilling rigs and one (1) frac crew during 2024 under its current development plan, assuming commodity prices and capital costs continue to stay in their current ranges. Given the dynamic nature of the global economy and current geopolitical risks, the Company will remain flexible to increase or decrease its development activity as merited.  

Production (Boe/d)
Average production rate 43,000 – 47,000
Capex ($MM)
Net Operated Wells TIL 55 – 60
Capital Expenditures, D,C,E&F $450 - $525
Capital Expenditures, Infrastructure $50 - $60
Total Capital Expenditures $500 - $585
Unit Measures ($/Boe)
Lease Operating Expenses $7.50 - $8.50
General & Administrative $1.00 - $1.20

Year End 2023 Proved Reserves

  • As of December 31, 2023, HighPeak Energy’s estimated proved reserves, prepared by Cawley, Gillespie & Associates, Inc., increased over 25% from December 31, 2022 to 154.2 MMBoe consisting of approximately 78% crude oil, 13% NGL and 9% natural gas.
  • Proved developed reserves increased 30% to 79.6 MMBoe compared with December 31, 2022 and comprised 52% of the Company’s total proved reserves.
  • The Company’s PV-10 was approximately $2.9 billion at year end 2023 based on pricing guidelines established by the Securities and Exchange Commission (“SEC”). 2023 SEC pricing was $78.22 per barrel of crude oil and $2.637 per MMBtu of natural gas, before adjustments for price differentials.
  • As of December 31, 2023, the average adjusted prices realized over the remaining lives of the Company’s assets were $78.13 per barrel of crude oil, $17.33 per barrel of NGL and $0.198 per Mcf of natural gas, respectively.
  • The Company’s 2023 reserve replacement ratio was 295%.

  Crude Oil (MBbl) NGL (MBbl) Natural Gas (MMcf) Total (Mboe) PV-10 ($M)
Proved developed producing 54,033 11,649 50,782 74,146 $1,921
Proved developed nonproducing 4,598 534 1,889 5,447  141
Total proved developed reserves 58,631 12,183 52,671 79,593  2,061
Proved undeveloped 60,923 7,913 34,400 74,569  823
Total proved reserves 119,554 20,096 87,071 154,162 $2,884

Fourth Quarter 2023 Operational Update

HighPeak’s sales volumes during the fourth quarter of 2023 averaged 50.0 Mboe/d, a 34% increase over fourth quarter of 2022. Fourth quarter sales volumes consisted of approximately 81% crude oil and 92% liquids. Full-year 2023 sales volumes averaged 45.6 thousand Boe/d, an 86% increase over 2022 sales volumes.

The Company averaged three drilling rigs and one and a half frac crews during the fourth quarter, drilled 18 gross (17.9 net) horizontal wells and completed 24 gross (23.8 net) operated producing wells. At December 31, 2023, the Company had 22 gross (22.0 net) operated horizontal wells in various stages of drilling and completion. In February 2024, the Company reduced its development drilling program to two drilling rigs and is currently running one frac crew and may add a second frac crew periodically throughout the year as needed.

HighPeak President, Michael Hollis, commented, “Our 2024 capital budget will be slightly front half weighted as we carried in a higher cadence of activity from 2023. Our infrastructure budget this year includes the expansion of our current system to reach wells drilled on newly acquired acreage. The infrastructure spend in future years is expected to trend downward to approximately half of this year’s budgeted amount.

This year, HighPeak Energy is laser-focused on our commitment to capital and operational efficiency. We are working diligently to reduce both operating and capital costs, resulting in even greater free cash flow generation which is essential for achieving our corporate objectives of funding our operations through cash flow, paying down debt, and returning value to our shareholders. As we move forward, we are committed to navigating this landscape with unwavering capital discipline.”

Fourth Quarter 2023 Financial Results

HighPeak reported net income of $95.0 million for the fourth quarter of 2023, or $0.66 per diluted share, and EBITDAX of $241.6 million, or $1.68 per diluted share. 

Fourth quarter average realized prices were $79.24 per barrel (“$/Bbl”) of crude oil, $19.93 per barrel of NGL and $1.51 per Mcf of natural gas, resulting in an overall realized price of $65.53 per Boe, or 83% of the weighted average of NYMEX crude oil prices, excluding the effects of derivatives. HighPeak’s cash costs for the third quarter were $12.27 per Boe, including lease operating expenses of $7.53 per Boe, workover expenses of $0.66 per Boe, production and ad valorem taxes of $3.06 per Boe and G&A expenses of $1.01 per Boe. The Company’s cash margin was $53.26 per Boe, or 81% of the overall realized price per Boe for the quarter, excluding the effects of derivatives.

HighPeak’s fourth quarter 2023 capital expenditures to drill, complete, equip, provide facilities and for infrastructure were $169.1 million. 


As of December 31, 2023, HighPeak had the following outstanding crude oil derivative instruments and the weighted average crude oil prices and premiums payable per barrel:

                Swaps  Enhanced Collars & Deferred
Premium Puts
  Type of
  Index  Price per Bbl  Floor or
Price per Bbl
Price per Bbl
Payable per Bbl
Crude Oil:                              
Jan - Mar  2024  Swap   4,000  WTI  $84.00  $  $  $ 
Jan - Mar  2024  Collar   6,000  WTI  $  $80.00  $100.00  $3.50 
Jan - Mar  2024  Put   20,000  WTI  $  $66.44  $  $5.00 
Apr - Jun  2024  Swap   4,000  WTI  $84.00  $  $  $ 
Apr - Jun  2024  Collar   5,500  WTI  $  $69.73  $95.00  $0.61 
Apr - Jun  2024  Put   14,000  WTI  $  $60.41  $  $5.00 
Jul - Sep  2024  Swap   4,000  WTI  $84.00  $  $  $ 
Jul - Sep  2024  Collar   1,500  WTI  $  $69.00  $95.00  $0.85 
Jul - Sep  2024  Put   14,000  WTI  $  $60.41  $  $5.00 
Oct - Dec  2024  Swap   5,500  WTI  $76.37  $  $  $ 
Oct - Dec  2024  Collar   10,600  WTI  $  $65.68  $90.32  $1.85 
Oct - Dec  2024  Put   2,000  WTI  $  $58.00  $  $5.00 
Jan - Mar  2025  Swap   5,500  WTI  $76.37  $  $  $ 
Jan - Mar  2025  Collar   8,000  WTI  $  $65.00  $90.00  $2.12 
Jan - Mar  2025  Put   2,000  WTI  $  $58.00  $  $5.00 
Apr - Jun  2025  Swap   5,500  WTI  $76.37  $  $  $ 
Apr - Jun  2025  Collar   7,000  WTI  $  $65.00  $90.08  $2.28 
Apr - Jun  2025  Put   2,000  WTI  $  $58.00  $  $5.00 
Jul - Sep  2025  Swap   3,000  WTI  $75.85  $  $  $ 
Jul - Sep  2025  Collar   7,000  WTI  $  $65.00  $90.08  $2.28 
Jul - Sep  2025  Put   2,000  WTI  $  $58.00  $  $5.00 

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

Subsequent to yearend, the Company entered into fixed price basis swaps for the spread between the Cushing crude oil price and the Midland WTI crude oil price. The weighted average differential represents the amount of premium to the Cushing, Oklahoma crude oil price for the notional volumes covered by the basis swap contracts as shown below.

 Settlement Year Type of
 Bbls Per
  Index Weighted Average Differential per Bbl 
Crude Oil:              
Jan - Mar 2024 Basis Swap  16,484  Argus WTI Midland $1.12 
Apr - Jun 2024 Basis Swap  25,000  Argus WTI Midland $1.12 
Jul - Sep 2024 Basis Swap  25,000  Argus WTI Midland $1.12 
Oct - Dec 2024 Basis Swap  25,000  Argus WTI Midland $1.12 


During the fourth quarter of 2023, HighPeak’s Board of Directors approved a quarterly dividend of $0.025 per share, or $3.2 million in dividends paid to stockholders during the quarter. In addition, in February 2024, the Company’s Board of Directors declared a quarterly dividend of $0.04 per share, or approximately $5.1 million in dividends, to be paid on March 25, 2024 to stockholders of record on March 1, 2024.  

Conference Call

HighPeak will host a conference call and webcast on Thursday, March 7, 2024, at 10:00 a.m. Central Time for investors and analysts to discuss its results for the fourth quarter of 2023 and its 2024 operating plan. Conference call participants may register for the call here. Access to the live audio-only webcast and replay of the earnings release conference call may be found here. A live broadcast of the earnings conference call will also be available on the HighPeak Energy website at under the “Investors” section of the website. A replay will also be available on the website following the call.

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

Conference Participation
HighPeak Energy will participate in-person in the upcoming 36th Annual Roth Conference to be held from March 17-19, 2024. The Company will use its March 2024 investor presentation for this event. The Company’s March investor presentation will be posted to its website before market open on Thursday, March 7, 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

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, as they are based on 2023 SEC prices which are different than current commodity prices. In addition, the results of drilling, testing and production activities may justify revisions of estimates that were made previously. If significant, such revisions could impact HighPeak’s strategy and change the schedule of any further production and development drilling. Accordingly, reserve estimates may differ significantly from the quantities of oil and natural gas that are ultimately recovered.

Use of Projections

The financial, operational, industry and market projections, estimates and targets in this press release and in the Company’s guidance (including production, operating expenses and capital expenditures in future periods) are based on assumptions that are inherently subject to significant uncertainties and contingencies, many of which are beyond the Company’s control. The assumptions and estimates underlying the projected, expected or target results are inherently uncertain and are subject to a wide variety of significant business, economic, regulatory and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the financial, operational, industry and market projections, estimates and targets, including assumptions, risks and uncertainties described in “Cautionary Note Regarding Forward-Looking Statements” above. These projections are speculative by their nature and, accordingly, are subject to significant risk of not being actually realized by the Company. Projected results of the Company for 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)

  December 31,
  2023 2022 
Current assets:       
Cash and cash equivalents $194,515  $30,504  
Accounts receivable  94,589   96,596  
Derivative instruments  31,480   17  
Inventory  7,254   13,275  
Prepaid expenses  995   4,133  
Total current assets  328,833   144,525  
Crude oil and natural gas properties, using the successful efforts method of accounting:       
Proved properties  3,338,107   2,270,236  
Unproved properties  72,715   114,665  
Accumulated depletion, depreciation and amortization  (684,179)  (259,962) 
Total crude oil and natural gas properties, net  2,726,643   2,124,939  
Other property and equipment, net  3,572   3,587  
Derivative instruments  16,059     
Other noncurrent assets  5,684   6,431  
Total assets  $3,080,791  $2,279,482  
Current liabilities:       
Current portion of long-term debt, net $120,000  $  
Accounts payable – trade  63,583   105,565  
Accrued capital expenditures  39,231   91,842  
Revenues and royalties payable  29,724   15,623  
Other accrued liabilities  19,613   15,600  
Derivative instruments  13,054   16,702  
Accrued interest  1,398   13,152  
Operating leases  528   343  
Advances from joint interest owners  262   7,302  
Total current liabilities  287,393   266,129  
Noncurrent liabilities:       
Long-term debt, net  1,030,299   704,349  
Deferred income taxes  197,068   131,164  
Asset retirement obligations  13,245   7,502  
Derivative instruments  65   691  
Commitments and contingencies       
Stockholders’ equity       
Common stock  13   11  
Additional paid-in capital  1,189,424   1,008,896  
Retained earnings  363,284   160,740  
Total stockholders’ equity  1,552,721   1,169,647  
Total liabilities and stockholders’ equity  $3,080,791  $2,279,482  

HighPeak Energy, Inc.
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share data)
  Three Months Ended December 31, Year Ended December 31,
Operating revenues:            
Crude oil sales $296,140  $248,164  $1,086,598  $715,469 
NGL and natural gas sales  5,013   9,751   24,695   40,217 
Total operating revenues  301,153   257,915   1,111,293   755,686 
Operating costs and expenses:            
Crude oil and natural gas production  37,666   23,851   145,362   69,599 
Production and ad valorem taxes  14,077   12,607   58,472   38,440 
Exploration and abandonments  862   466   5,234   1,149 
Depletion, depreciation and amortization  132,862   83,211   424,424   177,742 
Accretion of discount  162   125   522   370 
General and administrative  4,646   6,637   16,598   12,470 
Stock-based compensation  3,862   4,142   25,957   33,352 
Total operating costs and expenses  194,137   131,039   676,569   333,122 
Other expense  220      8,262    
Income from operations  106,796   126,876   426,462   422,564 
Interest and other income  1,985   13   2,908   266 
Interest expense  (44,623)  (21,468)  (147,901)  (50,610)
Gain (loss) on derivative instruments, net  58,500   (17,518)  27,602   (60,005)
Loss on extinguishment of debt        (27,300)   
Income before income taxes  122,658   87,903   281,771   312,215 
Income tax expense  27,654   20,004   65,905   75,361 
Net income $95,004  $67,899  $215,866  $236,854 
Earnings per share:            
Basic net income $0.68  $0.56  $1.64  $2.04 
Diluted net income $0.66  $0.53  $1.58  $1.93 
Weighted average shares outstanding:            
Basic  126,242   111,042   117,956   104,738 
Diluted  130,579   117,249   123,020   111,164 
Dividends declared per share $0.025  $0.025  $0.10  $0.10 


HighPeak Energy, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)
  Year Ended December 31,
  2023  2022 
Net income $215,866  $236,854 
Adjustments to reconcile net income to net cash provided by operations:      
Provision for deferred income taxes  65,905   75,361 
Loss on extinguishment of debt  27,300    
(Gain) loss on derivative instruments  (27,602)  60,005 
Cash paid on settlement of derivative instruments  (24,194)  (58,096)
Amortization of debt issuance costs  11,411   5,635 
Amortization of discounts on long-term debt  15,140   7,735 
Stock-based compensation expense  25,957   33,352 
Accretion expense  522   370 
Depletion, depreciation and amortization  424,424   177,742 
Exploration and abandonment expense  4,242   146 
Changes in operating assets and liabilities:      
Accounts receivable  2,007   (57,218)
Prepaid expenses, inventory and other assets  6,923   (11,959)
Accounts payable, accrued liabilities and other current liabilities  8,488   34,087 
Net cash provided by operating activities  756,389   504,014 
Additions to crude oil and natural gas properties  (1,009,855)  (1,046,739)
Changes in working capital associated with crude oil and natural gas property additions  (100,802)  128,938 
Acquisitions of crude oil and natural gas properties  (15,085)  (262,363)
Other property additions  (193)  (2,244)
Net cash used in investing activities  (1,125,935)  (1,182,408)
Borrowings under Term Loan Credit Agreement, net of discount  1,170,000    
Borrowings under Prior Credit Agreement  255,000   925,000 
Proceeds from issuance of 10.000% Senior Notes, net of discount     440,179 
Repayments under Prior Credit Agreement  (525,000)  (755,000)
Repayments of 10.000% Senior Notes and 10.625% Senior Notes  (475,000)   
Premium on extinguishment of debt  (4,457)   
Proceeds from issuance of common stock  155,768   85,000 
Proceeds from exercises of warrants  4,028   7,805 
Proceeds from exercises of stock options  148   120 
Debt issuance costs  (28,444)  (17,128)
Stock offering costs  (5,371)  (339)
Dividends paid  (11,864   )  (10,412)
Dividend equivalents paid  (1,251  )  (1,196)
Net cash provided by financing activities  533,557   674,029 
Net increase (decrease) in cash and cash equivalents  164,011   (4,365)
Cash and cash equivalents, beginning of period  30,504   34,869 
Cash and cash equivalents, end of period $194,515  $30,504 

HighPeak Energy, Inc.  
Unaudited Summary Operating Highlights  
   Three Months Ended December 31,   Year Ended December 31,  
  2023 2022 2023 2022 
Average Daily Sales Volumes:              
Crude oil (Bbls)  40,624   31,860   38,041   20,718  
NGLs (Bbls)  5,262   3,302   4,239   2,249  
Natural gas (Mcf)  24,395   13,112   19,777   9,105  
Total (Boe)  49,952   37,348   45,577   24,485  
Average Realized Prices (excluding effects of derivatives):              
Crude oil per Bbl $79.24  $84.67  $78.26  $94.61  
NGL per Bbl $19.93  $26.19  $21.51  $35.67  
Natural gas per Mcf $1.51  $3.41  $1.56  $5.36  
Total per Boe $65.53  $75.06  $66.80  $84.56  
Margin Data ($ per Boe):              
Average price $65.53  $75.06  $66.80  $84.56  
Lease operating expenses  (7.53)  (6.86)  (8.04)  (7.49) 
Expense workovers  (0.66)  (0.08)  (0.70)  (0.30) 
Production and ad valorem taxes  (3.06)  (3.67)  (3.51)  (4.30) 
  $54.27  $64.45  $54.55  $72.47  

HighPeak Energy, Inc.  
Unaudited Earnings Per Share Details  
   Three Months Ended December 31,   Year Ended December 31,  
  2023 2022 2023 2022 
Net income as reported $95,004  $67,899  $215,866  $236,854  
Participating basic earnings  (9,103)  (6,130)  (21,890)  (22,991) 
Basic earnings attributable to common shareholders  85,901   61,769   193,976   213,863  
Reallocation of participating earnings  133   103   334   401  
Diluted net income attributable to common shareholders $86,034  $61,872  $194,310  $214,264  
Basic weighted average shares outstanding  126,242   111,042   117,956   104,738  
Dilutive warrants and unvested stock options  2,178   4,085   2,905   4,304  
Dilutive unvested restricted stock  2,159   2,122   2,159   2,122  
Diluted weighted average shares outstanding  130,579   117,249   123,020   111,164  
Net income per share attributable to common shareholders:             
Basic $0.68  $0.56  $1.64  $2.04  
Diluted $0.66  $0.53  $1.58  $1.93  

HighPeak Energy, Inc. 
Unaudited Reconciliation of Net Income to EBITDAX, Discretionary Cash Flow and Net Cash Provided by Operations 
(in thousands) 
  Three Months Ended December 31, Year Ended December 31, 
  2023 2022 2023 2022 
Net income $95,004  $67,899  $215,866  $236,854  
Interest expense  44,623   21,468   147,901   50,610  
Interest and other income  (1,985)  (13)  (2,908)  (266) 
Income tax expense  27,654   20,004   65,905   75,361  
Depletion, depreciation and amortization  132,862   83,211   424,424   177,742  
Accretion of discount  162   125   522   370  
Exploration and abandonment expense  862   466   5,234   1,149  
Stock based compensation  3,862   4,142   25,957   33,352  
Derivative related noncash activity  (61,662)  23,565   (51,796)  1,909  
Loss on extinguishment of debt        27,300     
Other expense  220      8,262     
EBITDAX  241,602   220,867   866,667   577,081  
Cash interest expense  (40,084)  (15,968)  (121,350)  (37,240) 
Other (a)  1,398   (441)  (6,346)  (737) 
Discretionary cash flow  202,916   204,458   738,971   539,104  
Changes in operating assets and liabilities  31,731   (3,250)  17,418   (35,090) 
Net cash provided by operating activities $234,647  $201,208  $756,389  $504,014  
(a) includes interest and other income net of other expense and operating portion of exploration and abandonment expenses. 

HighPeak Energy, Inc.
Unaudited Cash Margin Reconciliation
(in thousands, except per Boe data)
   Three Months Ended December 31,   Year Ended December 31,
  2023 2022 2023 2022
Crude oil, NGL and natural gas sales revenue $301,153  $257,915  $1,111,293  $755,686 
Less: Lease operating expenses  (34,627)  (23,573)  (133,737)  (66,933)
Less: Workover expenses  (3,039)  (278)  (11,625)  (2,666)
Less: Production and ad valorem taxes  (14,077)  (12,607)  (58,472)  (38,440)
Cash Operating Margin       249,410   221,457   907,459   647,647 
Less: General and administrative expenses  (4,646)  (6,637)  (16,598)  (12,470)
Cash Margin $244,764  $214,820  $890,861  $635,177 
Divide by: Sales volumes (MBoe)  4,595.6   3,436.0   16,635.5   8,936.9 
Cash Operating Margin per Boe, excluding effects of derivatives $54.27  $64.45  $54.55  $72.47 
Cash Margin per Boe, excluding effects of derivatives $53.26  $62.52  $53.55  $71.07 

HighPeak Energy, Inc.
Unaudited Free Cash Flow Reconciliation
(in thousands)
  Three Months Ended December 31, 2023
Net cash provided by operating activities $234,647 
Changes in operating assets and liabilities  (31,731)
Capital expenditures paid, excluding acquisitions  (169,192)
Free cash flow $33,724 

HighPeak Energy, Inc. 
Unaudited Reconciliation of PV-10 to Standardized Measure 
(in thousands) 
As of December 31, 2023 Total Proved 
Present value of estimated future cash flows (PV-10) $2,884,067  
Present value of future income taxes and certain abandonment costs  (276,363) 
Standardized measure $2,607,704  

HighPeak Energy, Inc.
Unaudited Reserve Replacement Computations
Proved Reserves on December 31, 2022  122,958 
Extensions, discoveries and revisions  49,055 
Purchase of reserves-in-place  171 
Sales of reserves-in-place  (1,387)
Production  (16,635)
Proved Reserves on December 31, 2023  154,162 
Reserve Replacement:   
With the drill bit  295%
With the drill bit and acquisitions  296%

Investor Contact:

Ryan Hightower
Vice President, Business Development

Source: HighPeak Energy, Inc.


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