0001437749-21-023824 | S-1/A | XBRL Viewer

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Document And Entity Information	6 Months Ended
Document And Entity Information	Jun. 30, 2021
Document Information [Line Items]
Entity Central Index Key	0001792849
Entity Registrant Name	HighPeak Energy, Inc.
Amendment Flag	true
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2021
Document Type	S-1/A
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	84-3533602
Entity Address, Address Line One	421 W. 3rd Street, 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
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Amendment Description	The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act or until the registration statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current Assets:
Cash and cash equivalents	$ 12,842	$ 19,552
Accounts receivable	23,786	7,722
Subscription receivable	0	3,596
Prepaid expenses	1,062	2,254
Inventory	217	121
Deposits	50	50
Total current assets	37,957	33,295
Oil and natural gas properties, using the successful efforts method of accounting:
Proved properties	497,938	367,372
Unproved properties	114,435	152,741
Accumulated depletion, depreciation and amortization	(47,200)	(17,477)
Total oil and natural gas properties, net	565,173	502,636
Other property and equipment, net	1,057	1,092
Other noncurrent assets	236	907
Total assets	604,423	537,930
Current liabilities:
Accounts payable - trade	18,018	7,581
Accrued liabilities	20,727	12,374
Derivatives	12,558	0
Other current liabilities	3,037	2,480
Total current liabilities	54,340	22,435
Noncurrent liabilities:
Long-term debt, net	11,918	0
Deferred income taxes	41,432	38,898
Asset retirement obligations	2,965	2,293
Other	26	78
Commitments and contingencies (Note 10)
Stockholders' equity:
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, none issued and outstanding at June 30, 2021 and December 31, 2020	0	0
Common stock, $0.0001 par value, 600,000,000 shares authorized, 92,728,781 and 91,967,565 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively	9	9
Additional paid-in capital	590,455	581,426
Accumulated deficit	96,722	107,209
Total stockholders' equity	493,742	474,226
Total liabilities and stockholders' equity	$ 604,423	$ 537,930

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	600,000,000	600,000,000
Common stock, shares issued (in shares)	92,728,781	91,967,565
Common stock, shares outstanding (in shares)	92,728,781	91,967,565

Condensed Consolidated and Combined Statements of Operations (Unaudited) - USD ($) shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Operating Revenues:
Operating revenues	$ 48,270,000	$ 944,000	$ 73,987,000	$ 5,567,000
Operating Costs and Expenses:
Oil and natural gas production	4,692,000	1,814,000	6,919,000	4,203,000
Production and ad valorem taxes	2,543,000	94,000	4,207,000	402,000
Exploration and abandonments	463,000	1,000	654,000	4,000
Depletion, depreciation and amortization	16,857,000	1,735,000	29,820,000	5,091,000
Accretion of discount on asset retirement obligations	37,000	35,000	72,000	69,000
General and administrative	1,617,000	1,412,000	3,376,000	4,273,000
Stock-based compensation	1,023,000	0	1,989,000	0
Total operating costs and expenses	27,232,000	5,091,000	47,037,000	14,042,000
Income (loss) from operations	21,038,000	(4,147,000)	26,950,000	(8,475,000)
Interest income	0	0	1,000	0
Interest expense	(152,000)	0	(206,000)	0
Derivative loss, net	(13,596,000)	0	(13,596,000)	0
Other expense	(127,000)	0	(127,000)	(76,503,000)
Income (loss) before income taxes	7,163,000	(4,147,000)	13,022,000	(84,978,000)
Income tax expense	1,420,000	0	2,535,000	0
Net income (loss)	$ 5,743,000	$ (4,147,000)	$ 10,487,000	$ (84,978,000)
Earnings per share:
Basic net income (in dollars per share)	$ 0.06		$ 0.11
Diluted net income (in dollars per share)	$ 0.06		$ 0.10
Weighted average shares outstanding:
Basic (in shares)	92,676		92,634
Diluted (in shares)	92,676		92,830
Crude Oil Sales [Member]
Operating Revenues:
Operating revenues	$ 46,985,000	$ 938,000	$ 71,855,000	$ 5,462,000
Natural Gas and NGL Sales [Member]
Operating Revenues:
Operating revenues	$ 1,285,000	$ 6,000	$ 2,132,000	$ 105,000

Condensed Consolidated Statement of Changes in Stockholders' Equity (Successor) (Unaudited) - USD ($) $ in Thousands	Outside Directors [Member] Common Stock [Member]	Outside Directors [Member] Additional Paid-in Capital [Member]	Outside Directors [Member] Retained Earnings [Member]	Outside Directors [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Aug. 21, 2020					0
Balance at Aug. 21, 2020					$ 0	$ 0	$ 0	$ 0
Exercise of warrants (in shares)					313,000
Exercise of warrants					$ 0	3,596	0	$ 3,596
Exercised (in shares)					0			0
Shares issued upon options being exercised					$ 0	0	0	$ 0
Compensation costs included in net income					0	15,776	0	15,776
Net income (loss)					$ 0	0	(16,429)	(16,429)
Balance (in shares) at Dec. 31, 2020					91,968,000
Balance at Dec. 31, 2020					$ 9	581,426	(107,209)	474,226
Exercise of warrants (in shares)					554,000
Exercise of warrants					$ 0	5,466	0	5,466
Exercised (in shares)					154,000
Shares issued upon options being exercised					$ 0	1,574	0	1,574
Compensation costs included in net income					0	966	0	966
Net income (loss)					$ 0	0	4,744	4,744
Balance (in shares) at Mar. 31, 2021					92,676,000
Balance at Mar. 31, 2021					$ 9	589,432	(102,465)	486,976
Balance (in shares) at Dec. 31, 2020					91,968,000
Balance at Dec. 31, 2020					$ 9	581,426	(107,209)	$ 474,226
Exercised (in shares)								154,268
Net income (loss)								$ 10,487
Balance (in shares) at Jun. 30, 2021					92,729,000
Balance at Jun. 30, 2021					$ 9	590,455	(96,722)	493,742
Balance (in shares) at Mar. 31, 2021					92,676,000
Balance at Mar. 31, 2021					$ 9	589,432	(102,465)	486,976
Compensation costs included in net income					0	1,023	0	1,023
Net income (loss)					$ 0	0	5,743	5,743
Restricted shares issued to outside directors (in shares)	53,000
Restricted shares issued to outside directors	$ 0	$ 0	$ 0	$ 0
Balance (in shares) at Jun. 30, 2021					92,729,000
Balance at Jun. 30, 2021					$ 9	$ 590,455	$ (96,722)	$ 493,742

Condensed Consolidated Statement of Changes in Partners' Capital (Predecessor) (Unaudited) - USD ($) $ in Thousands	Total	General Partner [Member]	Limited Partner [Member]
Balance at Dec. 31, 2018	$ 84,057	$ 0	$ 84,057
Cash capital contributions	73,543	0	73,543
Net income (loss)	(11,579)	0	(11,579)
Balance at Dec. 31, 2019	464,716	0	464,716
Cash capital contributions	54,000	0	54,000
Net income (loss)	(80,831)	0	(80,831)
Balance at Mar. 31, 2020	437,885	0	437,885
Balance at Dec. 31, 2019	464,716	0	464,716
Net income (loss)	(84,978)
Balance at Jun. 30, 2020	433,738	0	433,738
Balance at Dec. 31, 2019	464,716	0	464,716
Cash capital contributions	54,000	0	54,000
Net income (loss)	(85,034)	0	(85,034)
Balance at Aug. 21, 2020	430,902	0	430,902
Balance at Mar. 31, 2020	437,885	0	437,885
Net income (loss)	(4,147)	0	(4,147)
Balance at Jun. 30, 2020	$ 433,738	$ 0	$ 433,738

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Condensed Consolidated and Combined Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended				4 Months Ended	6 Months Ended		8 Months Ended	12 Months Ended
	Dec. 31, 2020	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2020	Jun. 30, 2021	Jun. 30, 2020	Aug. 21, 2020	Dec. 31, 2020	Dec. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)		$ 5,743	$ 4,744	$ (4,147)	$ (80,831)	$ (16,429)	$ 10,487	$ (84,978)	$ (85,034)		$ (11,579)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operations:
Exploration and abandonment expense						4,854	369	4	4		2,850
Depletion, depreciation and amortization		16,857		1,735		9,877	29,820	5,091	6,385		4,269
Accretion expense						51	72	69	89		72
Stock-based compensation expense						15,776	1,989	0	0		0
Amortization of debt issuance costs						4	77	0	0		0
Derivative-related activity		12,558		0			12,558	0
Loss on terminated acquisition						0	0	76,500	76,500		0
Deferred income taxes						(1,047)	2,535	0	0		0
Changes in operating assets and liabilities:
Accounts receivable						(5,177)	(16,064)	2,886	844		70
Prepaid expenses, inventory and other current assets						(506)	(366)	(3,621)	(196)		(209)
Accounts payable and accrued liabilities						(1,990)	5,803	(763)	(2,694)		3,755
Net cash provided by (used in) operating activities						5,413	47,280	(4,812)	(4,102)		(772)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and natural gas properties						(64,947)	(89,959)	(49,016)	(49,364)		(60,998)
Changes in working capital associated with oil and natural gas property additions						(5,666)	15,223	7,652	7,348		24,682
Acquisitions of oil and natural gas properties						(1,181)	(2,070)	(3,298)	(3,338)		(10,918)
Other property additions						(145)	(61)	(50)	(50)		(7)
Issuance of notes receivable						0	0	(5,907)	(7,482)		(4,193)
Extension payment on acquisition						0	0	(15,000)	(15,000)		0
Net cash used in investing activities						(71,939)	(76,867)	(65,619)	(67,886)		(51,434)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit facility							14,000	0
Proceeds from exercises of warrants	$ 3,600						5,466	0
Proceeds from subscription receivable from exercises of warrants							3,596	0
Proceeds from exercises of stock options							1,574	0
Debt issuance costs						(405)	(1,759)	0	0		0
Contributions from partners						0	0	54,000	54,000		74,023
Net cash provided by financing activities						84,135	22,877	54,000	51,220		74,023
Net decrease in cash and cash equivalents						17,609	(6,710)	(16,431)	(20,768)		21,817
Cash and cash equivalents, beginning of period			$ 19,552		$ 22,711		19,552	22,711	22,711	$ 22,711
Cash and cash equivalents, end of period	$ 19,552	$ 12,842		$ 6,280		19,552	12,842	6,280		$ 19,552	22,711
Supplemental disclosure of certain cash and non-cash transactions:
Cash paid for interest							133	0
Cash paid (received) for income taxes							0	0
Non-cash additions to asset retirement obligations						$ (142)	$ 600	$ 97	$ 112		$ 312

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Current Assets:
Cash and cash equivalents	$ 19,552	$ 22,711
Accounts receivable	7,722	3,363
Subscription receivable	3,596	0
Prepaid expenses	2,254	25
Inventory	121	184
Deposits	50	61,550
Notes receivable	0	4,193
Total current assets	33,295	92,026
Oil and natural gas properties, using the successful efforts method of accounting:
Proved properties	367,372	178,835
Unproved properties	152,741	227,525
Accumulated depletion, depreciation and amortization	(17,477)	(1,566)
Total oil and natural gas properties, net	502,636	404,794
Other property and equipment, net	1,092	1,088
Other noncurrent assets	907	0
Total assets	537,930	497,908
Current liabilities:
Accounts payable - trade	7,581	11,118
Accrued liabilities	12,374	19,678
Other current liabilities	2,480	184
Total current liabilities	22,435	30,980
Noncurrent liabilities:
Deferred income taxes	38,898	0
Asset retirement obligations	2,293	2,212
Other	78	0
Commitments and contingencies (Note 10)
Stockholders' equity / partners' capital:
Partners' capital	0	458,970
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, none issued and outstanding at June 30, 2021 and December 31, 2020	0	0
Common stock, $0.0001 par value, 600,000,000 shares authorized, 92,728,781 and 91,967,565 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively	9	0
Additional paid-in capital	581,426	0
Accumulated deficit	107,209	5,746
Total stockholders' equity / partners' capital	474,226	464,716
Total liabilities and stockholders' equity	$ 537,930	$ 497,908

Consolidated Balance Sheets (Parentheticals) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	600,000,000	600,000,000
Common stock, shares issued (in shares)	92,728,781	91,967,565
Common stock, shares outstanding (in shares)	92,728,781	91,967,565

Consolidated and Combined Statements of Operations - USD ($) shares in Thousands	4 Months Ended	8 Months Ended	12 Months Ended
	Dec. 31, 2020	Aug. 21, 2020	Dec. 31, 2019
Operating Revenues:
Operating revenues	$ 16,400,000	$ 8,223,000	$ 8,115,000
Operating Costs and Expenses:
Oil and natural gas production	2,653,000	4,870,000	3,372,000
Production and ad valorem taxes	886,000	566,000	449,000
Exploration and abandonments	5,032,000	4,000	2,850,000
Depletion, depreciation and amortization	9,877,000	6,385,000	4,269,000
Accretion of discount on asset retirement obligations	51,000	89,000	72,000
General and administrative	2,775,000	4,840,000	8,682,000
Stock-based compensation	15,776,000	0	0
Total operating costs and expenses	37,050,000	16,754,000	19,694,000
Income (loss) from operations	(20,650,000)	(8,531,000)	(11,579,000)
Interest income	6,000	0	0
Interest expense	(8,000)	0	0
Other expense	0	(76,503,000)	0
Loss before income taxes	(20,652,000)	(85,034,000)	(11,579,000)
Income tax expense	(4,223,000)	0	0
Net income (loss)	$ (16,429,000)	$ (85,034,000)	$ (11,579,000)
Earnings per share:
Basic net income (in dollars per share)	$ (0.18)
Diluted net income (in dollars per share)	$ (0.18)
Weighted average shares outstanding:
Basic (in shares)	91,629
Diluted (in shares)	91,629
Crude Oil Sales [Member]
Operating Revenues:
Operating revenues	$ 15,988,000	$ 8,069,000	$ 7,849,000
Natural Gas and NGL Sales [Member]
Operating Revenues:
Operating revenues	$ 412,000	$ 154,000	$ 266,000

Consolidated and Combined Statement of Changes in Partners' Capital (Predecessors) - USD ($) $ in Thousands	Total	General Partner [Member]	Limited Partner [Member]
Balance at Dec. 31, 2018	$ 84,057	$ 0	$ 84,057
Cash capital contributions	73,543	0	73,543
Net income (loss)	(11,579)	0	(11,579)
Noncash capital contributions	232,394	0	232,394
Step up in basis from contributions	86,301	0	86,301
Balance at Dec. 31, 2019	464,716	0	464,716
Cash capital contributions	54,000	0	54,000
Net income (loss)	(80,831)	0	(80,831)
Balance at Mar. 31, 2020	437,885	0	437,885
Balance at Dec. 31, 2019	464,716	0	464,716
Net income (loss)	(84,978)
Balance at Jun. 30, 2020	433,738	0	433,738
Balance at Dec. 31, 2019	464,716	0	464,716
Cash capital contributions	54,000	0	54,000
Distribution to partners	(2,780)	0	(2,780)
Net income (loss)	(85,034)	0	(85,034)
Balance at Aug. 21, 2020	430,902	0	430,902
Balance at Mar. 31, 2020	437,885	0	437,885
Net income (loss)	(4,147)	0	(4,147)
Balance at Jun. 30, 2020	$ 433,738	$ 0	$ 433,738

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Aug. 21, 2020	0
Balance at Aug. 21, 2020	$ 0	$ 0	$ 0	$ 0
HighPeak business combination with HPK LP (in shares)	81,383,000			430,902,000
HighPeak business combination with HPK LP	$ 8	521,674
HighPeak business combination with HPK LP			(90,780)
Conversion of Pure Common Stock (in shares)	1,232,000
Conversion of Pure Common Stock	$ 0	12,324	0	$ 12,324
Forward Purchases (in shares)	8,977,000
Forward Purchases	$ 1	89,768	0	89,769
Offering costs (including costs incurred at Pure prior to HighPeak business combination)	0	(21,766)	0	(21,766)
Deferred income tax liability at HighPeak business combination	$ 0	(39,946)	0	(39,946)
Exercise of warrants (in shares)	313,000
Exercise of warrants	$ 0	3,596	0	$ 3,596
Exercised (in shares)	0			0
Shares issued upon options being exercised	$ 0	0	0	$ 0
Compensation costs included in net income	0	15,776	0	15,776
Net income (loss)	$ 0	0	(16,429)	(16,429)
Balance (in shares) at Dec. 31, 2020	91,968,000
Balance at Dec. 31, 2020	$ 9	581,426	(107,209)	474,226
Exercise of warrants (in shares)	554,000
Exercise of warrants	$ 0	5,466	0	5,466
Exercised (in shares)	154,000
Shares issued upon options being exercised	$ 0	1,574	0	1,574
Compensation costs included in net income	0	966	0	966
Net income (loss)	$ 0	0	4,744	4,744
Balance (in shares) at Mar. 31, 2021	92,676,000
Balance at Mar. 31, 2021	$ 9	589,432	(102,465)	486,976
Balance (in shares) at Dec. 31, 2020	91,968,000
Balance at Dec. 31, 2020	$ 9	581,426	(107,209)	$ 474,226
Exercised (in shares)				154,268
Net income (loss)				$ 10,487
Balance (in shares) at Jun. 30, 2021	92,729,000
Balance at Jun. 30, 2021	$ 9	590,455	(96,722)	493,742
Balance (in shares) at Mar. 31, 2021	92,676,000
Balance at Mar. 31, 2021	$ 9	589,432	(102,465)	486,976
Compensation costs included in net income	0	1,023	0	1,023
Net income (loss)	$ 0	0	5,743	5,743
Balance (in shares) at Jun. 30, 2021	92,729,000
Balance at Jun. 30, 2021	$ 9	$ 590,455	$ (96,722)	$ 493,742

Consolidated and Combined Statements of Cash Flows - USD ($) $ in Thousands	4 Months Ended	8 Months Ended	12 Months Ended
	Dec. 31, 2020	Aug. 21, 2020	Dec. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ (16,429)	$ (85,034)	$ (11,579)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operations:
Exploration and abandonment expense	4,854	4	2,850
Depletion, depreciation and amortization	9,877	6,385	4,269
Accretion expense	51	89	72
Stock-based compensation expense	15,776	0	0
Amortization of debt issuance costs	4	0	0
Loss on terminated acquisition	0	76,500	0
Deferred income taxes	(1,047)	0	0
Changes in operating assets and liabilities:
Accounts receivable	(5,177)	844	70
Prepaid expenses, inventory and other current assets	(506)	(196)	(209)
Accounts payable and accrued liabilities	(1,990)	(2,694)	3,755
Net cash provided by (used in) operating activities	5,413	(4,102)	(772)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and natural gas properties	(64,947)	(49,364)	(60,998)
Changes in working capital associated with oil and natural gas property additions	(5,666)	7,348	24,682
Acquisitions of oil and natural gas properties	(1,181)	(3,338)	(10,918)
Issuance of notes receivable	0	(7,482)	(4,193)
Other property additions	(145)	(50)	(7)
Extension payment on acquisition	0	(15,000)	0
Net cash used in investing activities	(71,939)	(67,886)	(51,434)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from stock offering	92,554	0	0
Stock offering costs	(8,114)	0	0
Cash acquired from non-successors in HighPeak business combination	100	0	0
Debt issuance costs	(405)	0	0
Contributions from partners	0	54,000	74,023
Distributions to partners	0	(2,780)	0
Net cash provided by financing activities	84,135	51,220	74,023
Net decrease in cash and cash equivalents	17,609	(20,768)	21,817
Cash and cash equivalents, beginning of period	1,943	22,711	894
Cash and cash equivalents, end of period	19,552	1,943	22,711
Supplemental disclosure of certain cash and non-cash transactions:
Subscription receivable from exercise of warrants	3,596	0	0
Noncash contributions from Limited Partners (see Note 9 for more detail)	0	0	232,394
Step up in basis of oil and gas properties	0	0	86,301
Non-cash additions to asset retirement obligations	(142)	112	312
Stock offering costs of accounting acquiree	$ (13,652)	$ 0	$ 0

Note 1 - Organization and Nature of Operations

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes to Financial Statements

Business Description and Basis of Presentation [Text Block]

NOTE 1. Organization and Nature of Operations

HighPeak Energy, Inc. ("HighPeak Energy" the "Company," or the “Successor”) is a Delaware corporation, initially formed in October 2019 as a wholly owned subsidiary of Pure Acquisition Corp (“Pure”), a Delaware corporation, formed in November 2017, which was a special purpose acquisition company for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination involving Pure and one or more businesses. See the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 regarding the business combination which resulted in the Company becoming the parent company and Pure becoming a wholly owned subsidiary along with the businesses acquired.

HighPeak Energy’s common stock and warrants are listed and traded on the Nasdaq Global Market (the "Nasdaq") under the ticker symbols “HPK” and “HPKEW,” respectively. HighPeak Energy’s Contingent Value Rights (“CVRs”) are currently traded on the Over-The-Counter market under the ticker symbol “HPKER,” although the Company has applied for listing on the Nasdaq. The Company is an independent oil and natural gas exploration and production company that explores for, develops and produces oil, NGL and natural gas in the Permian Basin in West Texas, more specifically, the Midland Basin. Our acreage is composed of two core areas, Flat Top to the north and Signal Peak to the south.

NOTE 1. Organization and Nature of Operations

HighPeak Energy, Inc. ("HighPeak Energy" the "Company," or the “Successor”) is a Delaware corporation, initially formed in October 2019 as a wholly owned subsidiary of Pure Acquisition Corp (“Pure”), a Delaware corporation, formed in November 2017, which was a special purpose acquisition company for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination involving Pure and one or more businesses. See Note 10 regarding the business combination which resulted in the Company becoming the parent company and Pure to become a wholly owned subsidiary along with the businesses acquired.

HighPeak Energy’s common stock and warrants are listed and traded on the Nasdaq Global Market (the "Nasdaq") under the ticker symbols “HPK” and “HPKEW,” respectively. HighPeak Energy’s Contingent Value Rights (“CVRs”) are currently traded on the Over-The-Counter market, although the Company has applied for listing on the Nasdaq as well. The Company is an independent oil and gas exploration and production company that explores for, develops and produces oil, natural gas liquids and natural gas in the Permian Basin in West Texas.

Note 2 - Basis of Presentation and Summary of Significant Accounting Policies

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes to Financial Statements

Basis of Presentation and Significant Accounting Policies [Text Block]

NOTE 2. Basis of Presentation and Summary of Significant Accounting Policies

Presentation. In the opinion of management, the unaudited interim condensed consolidated and combined financial statements of the Company as of June 30, 2021 and December 31, 2020 and for the three and six months ended June 30, 2021 (Successor), and for the three and six months ended June 30, 2020 (Predecessor) include all adjustments and accruals, consisting only of normal, recurring adjustments and accruals necessary for a fair presentation of the results for the interim periods in conformity with generally accepted accounting principles in the United States ("GAAP"). The operating results for the three and six months ended June 30, 2021 are not indicative of results for a full year.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with the rules and regulations of the United States Securities and Exchange Commission (the "SEC"). These unaudited interim condensed consolidated and combined financial statements should be read together with the consolidated and combined financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

Principles of consolidation. The condensed consolidated and combined financial statements include the accounts of the Company and its wholly owned subsidiaries since August 22, 2020, and its Predecessors and their wholly owned subsidiaries since their acquisition or formation for all periods prior to and including August 21, 2020. All material intercompany balances and transactions have been eliminated. Certain reclassifications have been made to prior period amounts to conform to the current period’s presentation.

Use of estimates in the preparation of financial statements. Preparation of the Company's unaudited interim condensed consolidated and combined financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Depletion of oil and natural gas properties and evaluations for impairment of proved and unproved oil and natural gas properties, in part, is determined using estimates of proved, probable and possible oil, NGL and natural gas reserves. There are numerous uncertainties inherent in the estimation of quantities of proved, probable and possible reserves and in the projection of future rates of production and the timing of development expenditures. Similarly, evaluations for impairment of proved and unproved oil and natural gas properties are subject to numerous uncertainties including, among others, estimates of future recoverable reserves, commodity price outlooks and future undiscounted and discounted net cash flows. Other items subject to such estimates and assumptions include, but are not limited to, the carrying value of oil and natural gas properties, asset retirement obligations, equity-based compensation, fair value of derivatives and estimates of income taxes. Actual results could differ from the estimates and assumptions utilized.

Cash and cash equivalents. The Company’s cash and cash equivalents include depository accounts held by banks with original issuance maturities of 90 days or less. The Company’s cash and cash equivalents are generally held in financial institutions in amounts that may exceed the insurance limits of the Federal Deposit Insurance Corporation. However, management believes that the Company’s counterparty risks are minimal based on the reputation and history of the institutions selected.

Accounts receivable. As of June 30, 2021 and December 31, 2020, the Company’s accounts receivables primarily consist of amounts due from the sale of crude oil, NGL and natural gas of $16.3 million and $4.2 million, respectively, and are based on estimates of sales volumes and realized prices the Company anticipates it will receive, joint interest receivables of $4.2 million and $345,000, respectively, a current U.S. federal income tax receivable of $3.2 million and $3.2 million, respectively, and other receivables of $123,000 and zero, respectively. The Company’s share of oil, NGL and natural gas production is sold to various purchasers who must be prequalified under the Company’s credit risk policies and procedures. The Company’s credit risk related to collecting accounts receivables is mitigated by using credit and other financial criteria to evaluate the credit standing of the entity obligated to make payment on the accounts receivable, and where appropriate, the Company obtains assurances of payment, such as a guarantee by the parent company of the counterparty or other credit support. The Company routinely reviews outstanding balances and establishes allowances for bad debts equal to the estimable portions of accounts receivable for which failure to collect is considered probable. As of June 30, 2021 and December 31, 2020, the Company had no allowance for doubtful accounts.

Subscription receivable. In accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification (“ASC”) 505-10-45-2, “Receivables for Issuance of Equity,” the Company recorded a subscription receivable as of December 31, 2020 related to the exercise of warrants prior to December 31, 2020 as the cash was collected before the financial statements were issued or available to be issued. Prior to December 31, 2020, a total of 312,711 warrants were exercised for cash proceeds of $3.6 million. Due to the timing of the exercises, the shares underlying the warrants were issued in December 2020 and the proceeds were received subsequent to December 31, 2020. The outstanding proceeds were recorded as a subscription receivable in the accompanying balance sheets as of December 31, 2020. There is no subscription receivable as of June 30, 2021 as all cash related to exercises of warrants was received prior to the balance sheet date.

Inventory. Inventory is comprised primarily of oil and natural gas drilling or repair items such as tubing, casing, proppant used to fracture-stimulate oil and natural gas wells, water, chemicals, operating supplies and ordinary maintenance materials and parts. The materials and supplies inventory is primarily acquired for use in future drilling or repair operations and is carried at the lower of cost or net realizable value, on a weighted average cost basis. Valuation allowances for materials and supplies inventories are recorded as reductions to the carrying values of the materials and supplies inventories in the Company’s condensed consolidated balance sheet and as charges to other expense in the condensed consolidated statements of operations. The Company’s materials and supplies inventory as of June 30, 2021 and December 31, 2020 is $217,000 and $121,000, respectively, and the Company has not recognized any valuation allowance to date.

Oil and natural gas properties. The Company utilizes the successful efforts method of accounting for its oil and natural gas properties. Under this method, all costs associated with productive wells and nonproductive development wells are capitalized while nonproductive exploration costs and geological and geophysical expenditures are expensed.

The Company does not carry the costs of drilling an exploratory well as an asset in its consolidated balance sheet following the completion of drilling unless both of the following conditions are met: (i) the well has found a sufficient quantity of reserves to justify its completion as a producing well and (ii) the Company is making sufficient progress assessing the reserves and the economic and operating viability of the project.

Due to the capital-intensive nature and the geographical location of certain projects, it may take an extended period of time to evaluate the future potential of an exploration project and the economics associated with making a determination on its commercial viability. In these instances, the project’s feasibility is not contingent upon price improvements or advances in technology, but rather the Company’s ongoing efforts and expenditures related to accurately predict the hydrocarbon recoverability based on well information, gaining access to other companies’ production data in the area, transportation or processing facilities and/or getting partner approval to drill additional appraisal wells. These activities are ongoing and are being pursued constantly. Consequently, the Company’s assessment of suspended exploratory well costs is continuous until a decision can be made that the project has found sufficient proved reserves to sanction the project or is noncommercial and is charged to exploration and abandonment expense. See Note 6 for additional information.

The capitalized costs of proved properties are depleted using the unit-of-production method based on proved reserves for leasehold costs and proved reserves for drilling, completion and other oil and natural gas property costs. Costs of unproved leasehold costs are excluded from depletion until proved reserves are established or, if unsuccessful, impairment is determined.

Proceeds from the sales of individual properties and the capitalized costs of individual properties sold or abandoned are credited and charged, respectively, to accumulated depletion, depreciation and amortization, if doing so does not materially impact the depletion rate of an amortization base. Generally, no gain or loss is recorded until an entire amortization base is sold. However, gain or loss is recorded from the sale of less than an entire amortization base if the disposition is significant enough to materially impact the depletion rate of the remaining properties in the amortization base.

The Company performs assessments of its long-lived assets to be held and used, including proved oil and natural gas properties accounted for under the successful efforts method of accounting, whenever events or circumstances indicate that the carrying value of those assets may not be recoverable. An impairment loss is indicated if the sum of the expected future cash flows is less than the carrying amount of the assets. In these circumstances, the Company recognizes an impairment charge for the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets.

Unproved oil and natural gas properties are periodically assessed for impairment on a project-by-project basis. These impairment assessments are affected by the results of exploration activities, commodity price outlooks, planned future sales or expirations of all or a portion of such projects. If the estimated future net cash flows attributable to such projects are not expected to be sufficient to fully recover the costs invested in each project, the Company will recognize an impairment charge at that time.

Other property and equipment, net. Other property and equipment is recorded at cost. The carrying values of other property and equipment, net of accumulated depreciation of $334,000 and $237,000 as of June 30, 2021 and December 31, 2020, respectively, are as follows (in thousands):

June 30,

2021

December 31,

2020

Land
$ 731 $ 725

Information technology
208 292

Transportation equipment
92 41

Leasehold improvements
17 24

Field equipment
9 10

Total other property and equipment, net
$ 1,057 $ 1,092

Other property and equipment is depreciated over its estimated useful life on a straight-line basis. Land is not depreciated. Information technology is generally depreciated over three years, transportation equipment is generally depreciated over five years and field equipment is generally depreciated over seven years. Leasehold improvements are amortized over the lesser of their estimated useful lives or the underlying terms of the associated leases.

The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If such assets are considered to be impaired, the impairment to be recorded is measured by the amount by which the carrying amount of the asset exceeds its estimated fair value. The estimated fair value is determined using either a discounted future cash flow model or another appropriate fair value method.

Debt issuance costs. The Company has paid a total of $2.2 million in debt issuance costs, $1.8 million of which was incurred during the six months ended June 30, 2021, related to its revolving credit facility. Amortization based on the straight-line method over the term of the revolving credit facility which approximates the effective interest method was $77,000 and zero during the six months ended June 30, 2021 and 2020, respectively. As of June 30, 2021, the net debt issuance costs are netted against the outstanding long-term debt on the accompanying balance sheet in accordance with GAAP. As of December 31, 2020, the net debt issuance costs are included in noncurrent assets on the accompanying consolidated balance sheet due to the fact that the revolving credit facility was undrawn at the time. See Note 7 for additional information regarding the Company’s revolving credit facility.

Leases. The Company enters into leases for drilling rigs, storage tanks, equipment and buildings and recognizes lease expense on a straight-line basis over the lease term. Lease right-of-use assets and liabilities are initially recorded on the lease commencement date based on the present value of lease payments over the lease term. As most of the Company’s lease contracts do not provide an implicit discount rate, the Company uses its incremental borrowing rate, which is determined based on information available at the commencement date of a lease. Leases may include renewal, purchase or termination options that can extend or shorten the term of a lease. The exercise of those options is at the Company’s sole discretion and is evaluated at inception and throughout the contract to determine if a modification of the lease term is required. Leases with an initial term of 12 months or less are not recorded as lease right-of-use assets and liability. See Note 10 for additional information.

Accounts payable, accrued liabilities and derivative liabilities. Accounts payable, accrued liabilities and derivative liabilities as of June 30, 2021 and December 31, 2020 totaled approximately $54.3 million and $22.4 million, respectively, including trade accounts payable, derivative liabilities, revenues payable and accruals for capital expenditures, operating and general and administrative expenses, operating leases and other miscellaneous items.

Asset retirement obligations. The Company records a liability for the fair value of an asset retirement obligation in the period in which the associated asset is acquired or placed into service, if a reasonable estimate of fair value can be made. Asset retirement obligations are generally capitalized as part of the carrying value of the long-lived asset to which it relates. Conditional asset retirement obligations meet the definition of liabilities and are recorded when incurred and when fair value can be reasonably estimated. See Note 8 for additional information.

Revenue recognition. The Company follows FASB ASC 606, “Revenue from Contracts with Customers,” (“ASC 606”) whereby the Company recognizes revenues from the sales of oil and natural gas to its purchasers and presents them disaggregated on the Company’s condensed consolidated and combined statements of operations.

The Company enters into contracts with purchasers to sell its oil and natural gas production. Revenue on these contracts is recognized in accordance with the five-step revenue recognition model prescribed in ASC 606. Specifically, revenue is recognized when the Company’s performance obligations under these contracts are satisfied, which generally occurs with the transfer of control of the oil and natural gas to the purchaser. Control is generally considered transferred when the following criteria are met: (i) transfer of physical custody, (ii) transfer of title, (iii) transfer of risk of loss and (iv) relinquishment of any repurchase rights or other similar rights. Given the nature of the products sold, revenue is recognized at a point in time based on the amount of consideration the Company expects to receive in accordance with the price specified in the contract. Consideration under the oil and natural gas marketing contracts is typically received from the purchaser one to two months after production. As of June 30, 2021 and December 31, 2020, the Company had receivables related to contracts with purchasers of approximately $16.3 million and $4.2 million, respectively.

Oil Contracts. The Company’s oil marketing contracts transfer physical custody and title at or near the wellhead, which is generally when control of the oil has been transferred to the purchaser. The oil produced is sold under contracts using market-based pricing which is then adjusted for the differentials based upon delivery location and oil quality. Since the differentials are incurred after the transfer of control of the oil, the differentials are included in oil sales on the consolidated and combined statements of operations as they represent part of the transaction price of the contract.

Natural Gas Contracts. The majority of the Company’s natural gas is sold at the lease location, which is generally when control of the natural gas has been transferred to the purchaser. The natural gas is sold under (i) percentage of proceeds processing contracts or (ii) a hybrid of percentage of proceeds and fee-based contracts. Under the majority of the Company’s contracts, the purchaser gathers the natural gas in the field where it is produced and transports it to natural gas processing plants where NGL products are extracted. The NGL products and remaining residue natural gas are then sold by the purchaser. Under percentage of proceeds and hybrid percentage of proceeds and fee-based contracts, the Company receives a percentage of the value for the extracted liquids and the residue natural gas. Since control of the natural gas transfers upstream of the transportation and processing activities, revenue is recognized as the net amount received from the purchaser.

The Company does not disclose the value of unsatisfied performance obligations under its contracts with customers as it applies the practical exemption in accordance with ASC 606. The exemption, as described in ASC 606-10-50-14(a), applies to variable consideration that is recognized as control of the product is transferred to the customer. Since each unit of product represents a separate performance obligation, future volumes are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required.

Derivatives. All of the Company’s derivatives are accounted for as non-hedge derivatives and are recorded at estimated fair value in the condensed consolidated balance sheets. All changes in the fair values of its derivative contracts are recorded as gains or losses in the earnings of the periods in which they occur. The Company enters into derivatives under master netting arrangements, which, in an event of default, allows the Company to offset payables to and receivables from the defaulting counterparty. The Company classifies the fair value amounts of derivative assets and liabilities executed under master netting arrangements as net current or noncurrent derivative assets or net current of noncurrent derivative liabilities, whichever the case may be, by commodity and counterparty.

The Company’s credit risk related to derivatives is a counterparties’ failure to perform under derivative contracts owed to the Company. The Company uses credit and other financial criteria to evaluate the credit standing of, and to select, counterparties to its derivative instruments. Although the Company does not obtain collateral or otherwise secure the fair value of its derivative instruments, associated credit risk is mitigated by the Company’s credit risk policies and procedures.

The Company has entered into International Swap Dealers Association Master Agreements (“ISDA Agreements”) with each of its derivative counterparties. The terms of the ISDA Agreements provide the Company and the counterparties with rights of set off upon the occurrence of defined acts of default by either the Company or a counterparty to a derivative, whereby the party not in default may set off all derivative liabilities owed to the defaulting party against all derivative asset receivables from the defaulting party. See Note 5 for additional information.

Income taxes. The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the carrying amounts for income tax purposes and net operating loss and tax credit carryforwards. The amount of deferred taxes on these temporary differences is determined using the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, as applicable, based on tax rates and laws in the respective tax jurisdiction enacted as of the balance sheet date.

The Company reviews its deferred tax assets for recoverability and establishes a valuation allowance based on projected future taxable income, applicable tax strategies and the expected timing of the reversals of existing temporary differences. A valuation allowance is provided when it is more likely than not (likelihood of greater than 50 percent) that some portion or all the deferred tax assets will not be realized. The Company has not established a valuation allowance as of June 30, 2021 and December 31, 2020.

The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based upon the technical merits of the position. If all or a portion of the unrecognized tax benefit is sustained upon examination by the taxing authorities, the tax benefit will be recognized as a reduction to the Company’s deferred tax liability and will affect the Company’s effective tax rate in the period it is recognized. See Note 13 for addition information.

The Company records any tax-related interest charges as interest expense and any tax-related penalties as other expense in the condensed consolidated and combined statements of operations of which there have been none to date.

Prior to August 21, 2020, the Predecessors did not record a provision for U.S. federal income tax because the Predecessors were treated as partnerships for U.S. federal income tax purposes and, as such, the partners of the Predecessors reported their share of the Company’s income or loss on their respective income tax returns. The Predecessors were required to file tax returns on Form 1065 with the Internal Revenue Service (“IRS”). The 2017 to 2019 tax years remain open to examination.

The Predecessors recognize in their condensed consolidated and combined financial statements the effect of a tax position, if that position is more likely than not to be sustained upon examination, including resolution of any appeals or litigation processes, based upon the technical merits of the position. Tax positions taken related to the Predecessors’ status as limited partnerships, and state filing requirements have been reviewed, and management is of the opinion that they would more likely than not be sustained by examination. Accordingly, the Company has not recorded an income tax liability for uncertain tax benefits for periods prior to August 21, 2020. Under the new centralized partnership audit rules effective for tax years beginning after 2017, the IRS assesses and collects underpayments of tax from the partnership instead of from each partner. The partnership may be able to pass the adjustments through to its partners by making a push-out election or, if eligible, by electing out of the centralized partnership audit rules. The collection of tax from the partnership is only an administrative convenience for the IRS to collect any underpayment of income taxes including interest and penalties. Income taxes on partnership income, regardless of who pays the tax or when the tax is paid, is attributed to the partners. Any payment made by the Company as a result of an IRS examination will be treated as an expense from the Company in the condensed consolidated and combined financial statements.

The Company is also subject to Texas Margin Tax. The Company realized no Texas Margin Tax in the accompanying condensed consolidated and combined financial statements as we do not anticipate owing any Texas Margin Tax for the periods presented.

Stock-based compensation. Stock-based compensation expense for stock option awards is measured at the grant date or modification date, as applicable, using the fair value of the award, and is recorded, net of forfeitures, on a straight-line basis over the requisite service period of the respective award. The fair value of stock option awards is determined on the grant date or modification date, as applicable, using a Black-Scholes option valuation model with the following inputs; (i) the grant date’s closing stock price, (ii) the exercise price of the stock options, (iii) the expected term of the stock option, (iv) the estimated risk-free adjusted interest rate for the duration of the option’s expected term, (v) the expected annual dividend yield on the underlying stock and (vi) the expected volatility over the option’s expected term.

Stock-based compensation for HighPeak Energy common stock issued to directors with no restrictions thereon, is measured at the grant date using the fair value of the award and is recognized as stock-based compensation in the accompanying financial statements immediately. Stock-based compensation for restricted stock awarded to outside directors is measured at the grant date using the fair value of the award and is recognized on a straight-line basis over the requisite service period of the respective award.

Segments. Based on the Company’s organizational structure, the Company has one operating segment, which is oil and natural gas development, exploration and production. In addition, the Company has a single, company-wide management team that allocates capital resources to maximize profitability and measures financial performance as a single enterprise.

Impact of the COVID-19 Pandemic. A novel strain of the coronavirus disease 2019 ("COVID-19") surfaced in late 2019 and spread around the world, including to the United States. In March 2020, the World Health Organization declared COVID-19 a pandemic, and the President of the United States declared the COVID-19 outbreak a national emergency. The COVID-19 pandemic significantly affected the global economy, disrupted global supply chains and created significant volatility in the financial markets. In addition, the COVID-19 pandemic resulted in travel restrictions, business closures and other restrictions that have disrupted the demand for oil throughout the world and when combined with pressures on the global supply-demand balance for oil and related products, resulted in significant volatility in oil prices beginning late February 2020. The length of this demand disruption is unknown, and there is significant uncertainty regarding the long-term impact of the effects of the COVID-19 pandemic to global oil demand.

Adoption of new accounting standards. In December 2019, the FASB issued Accounting Standards Update (“ASU”) No. 2019-12, “Simplifying the Accounting for Income Taxes (Topic 740).” The new guidance simplifies the accounting for income taxes by eliminating certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period, hybrid taxes, and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes. Amendments are to be applied prospectively, except for certain amendments that are to be applied either retrospectively or with a modified retrospective approach through a cumulative effect adjustment recorded to retained earnings. The Company adopted ASU 2019-12 on January 1, 2021, which did not have a material impact on the Company's condensed consolidated and combined financial statements.

New accounting pronouncements. In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”), and in January 2021, issued ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope (“ASU 2021-01”), to provide clarifying guidance regarding the scope of Topic 848. ASU 2020-04 was issued to provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. Generally, the guidance is to be applied as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. ASU 2020-04 and ASU 2021-01 are effective for all entities through December 31, 2022. As of June 30, 2021, the Company has not elected to use the optional guidance and continues to evaluate the options provided by ASU 2020-04 and ASU 2021-01. See Note 7 for discussion of the use of the London Interbank Offered Rate (“LIBOR”) in connection with borrowings under the Credit Agreement.

The Company has evaluated other recently issued, but not yet effective, accounting pronouncements and does not believe they would have a material effect on the Company’s condensed consolidated and combined financial statements.

NOTE 2. Basis of Presentation and Summary of Significant Accounting Policies

Presentation. The accompanying consolidated and combined financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, all adjustments, consisting of normal and recurring accruals considered necessary for a fair presentation, have been included. Certain prior period amounts have been reclassified to conform to the current presentation on the accompanying consolidated and combined financial statements. In connection with the preparation of the consolidated and combined financial statements, the Company evaluated subsequent events after the balance sheet date of December 31, 2020, through the date of this report.

The accompanying consolidated and combined statement of operations and the consolidated and combined statement of cash flows for the period from January 1, 2020 through August 21, 2020 are those of HPK Energy, LP, a Delaware limited partnership ("HPK LP") which is the predecessor to HighPeak Energy prior to the HighPeak business combination between the Company, Pure and HPK LP that closed on August 21, 2020 (the “HighPeak business combination”). The accompanying consolidated and combined statement of operations and consolidated and combined statement of cash flows for the year ended December 31, 2019 are those of HighPeak Energy, LP, a Delaware limited partnership ("HighPeak I") which is the predecessor to HPK LP prior to the HPK LP business combination that closed on October 1, 2019 (the “HPK LP business combination”) and those of HPK LP from October 1, 2019 through December 31, 2019. HPK LP and HighPeak I are individually and collectively referred to as the "Predecessors" herein. However, if we refer to the "Company" for a date or activity prior to August 21, 2020, we are also referring to the Predecessors. See Note 10 for further information regarding the two aforementioned business combinations. The following table details the year ended December 31, 2019 and its components of individual line items and how they were combined for presentation on the face of the accompanying financial statements.

Predecessors for the Year Ended December 31, 2019

(in thousands)

HPK LP from

August 28, 2019

(Inception) through

December 31, 2019

HighPeak I

for the

Year

Ended

December

31, 2019

Eliminations

Combined

Year

Ended

December

31, 2019

Operating Revenues:

Crude oil sales
$ 3,695 $ 4,154 $ 7,849

Natural gas and NGL sales
163 103 266

Total operating revenues
3,858 4,257 8,115

Operating Costs and Expenses:

Oil and natural gas production
1,578 1,794 3,372

Production and ad valorem taxes
188 261 449

Exploration and abandonments
33 2,817 2,850

Depletion, depreciation and amortization
1,612 2,657 4,269

Accretion of discount on asset retirement obligations
34 38 72

General and administrative
6,159 2,523 8,682

Total operating costs and expenses
9,604 10,090 19,694

Loss from operations
(5,746 ) (5,833 ) (11,579 )

Equity in losses of affiliate
- (3,175 ) 3,175 -

Net loss
$ (5,746 ) $ (9,008 ) $ 3,175 $ (11,579 )

CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss
$ (5,746 ) $ (9,008 ) $ 3,175 $ (11,579 )

Adjustments to reconcile net loss to net cash provided by (used in) operations:

Exploration and abandonment expense
33 2,817 - 2,850

Depletion, depreciation and amortization expense
1,612 2,657 - 4,269

Accretion expense
34 38 - 72

Equity in loss off affiliate
- 3,175 (3,175 ) -

Changes in operating assets and liabilities:

Accounts receivable
(1,355 ) 1,425 - 70

Inventory and other current assets
(88 ) (121 ) - (209 )

Accounts payable and accrued liabilities
3,010 745 - 3,755

Net cash provided by (used in) operating activities
(2,500 ) 1,728 - (772 )

CASH FLOWS FROM INVESTING ACTIVITIES:

Additions to oil and natural gas properties
(45,318 ) (15,687 ) - (61,005 )

Changes in working capital associated with oil and natural gas property additions
19,097 5,585 - 24,682

Acquisitions of oil and natural gas properties
(2,456 ) (8,462 ) - (10,918 )

Investment in affiliate
- (7,796 ) 7,796 -

Issuance of notes receivable
(4,193 ) - - (4,193 )

Net cash used in investing activities
(32,870 ) (26,360 ) 7,796 (51,434 )

CASH FLOWS FROM FINANCING ACTIVITIES:

Contributions from partners
58,081 23,738 (7,796 ) 74,023

Net cash provided by financing activities
58,081 23,738 (7,796 ) 74,023

Net increase (decrease) in cash and cash equivalents
22,711 (894 ) - 21,817

Cash and cash equivalents, beginning of period
- 894 - 894

Cash and cash equivalents, end of period
$ 22,711 $ - $ - $ 22,711

See Note 10 for information regarding the HighPeak business combination and the HPK LP business combination and how they were accounted for in the accompanying financial statements.

Principles of consolidation. The condensed consolidated and combined financial statements include the accounts of the Company and its wholly owned subsidiaries since August 22, 2020, and its Predecessors and their wholly owned subsidiaries since their acquisition or formation for all periods prior to August 21, 2020. All material intercompany balances and transactions have been eliminated. Certain reclassifications have been made to prior period amounts to conform to the current period’s presentation.

Use of estimates in the preparation of financial statements. Preparation of the Company's consolidated and combined financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Depletion of oil and gas properties and evaluations for impairment of proved and unproved oil and gas properties, in part, is determined using estimates of proved, probable and possible oil and gas reserves. There are numerous uncertainties inherent in the estimation of quantities of proved, probable and possible reserves and in the projection of future rates of production and the timing of development expenditures. Similarly, evaluations for impairment of proved and unproved oil and natural gas properties are subject to numerous uncertainties including, among others, estimates of future recoverable reserves, commodity price outlooks and future undiscounted and discounted net cash flows. Other items subject to such estimates and assumptions include, but are not limited to, the carrying value of oil and natural gas properties, asset retirement obligations, equity-based compensation and estimates of income taxes. Actual results could differ from the estimates and assumptions utilized.

Cash and cash equivalents. The Company’s cash and cash equivalents include depository accounts held by banks with original issuance maturities of 90 days or less. The Company’s cash and cash equivalents are generally held in financial institutions in amounts that may exceed the insurance limits of the Federal Deposit Insurance Corporation. However, management believes that the Company’s counterparty risks are minimal based on the reputation and history of the institutions selected.

Accounts receivable. The Company’s accounts receivable are primarily comprised of oil and gas sales receivables, a current U.S. federal income tax receivable, joint interest receivables and other receivables for which the Company does not require collateral security. The Company’s share of oil and gas production is sold to various purchasers who must be prequalified under the Company’s credit risk policies and procedures. The Company records allowances for doubtful accounts based on the age of accounts receivables and the financial condition of its purchasers. The Company’s credit risk related to collecting accounts receivables is mitigated by using credit and other financial criteria to evaluate the credit standing of the entity obligated to make payment on the accounts receivable, and where appropriate, the Company obtains assurances of payment, such as a guarantee by the parent company of the counterparty or other credit support.

As of December 31, 2020 and 2019, the Company’s accounts receivables primarily consist of amounts due from the sale of crude oil, natural gas and natural gas liquids of $4.2 million and $2.9 million, respectively, and are based on estimates of sales volumes and realized prices the Company anticipates it will receive, a current U.S. federal income tax receivable of $3.2 million and zero, respectively, related to U.S. federal income taxes paid prior to the HighPeak business combination that will be received by carrying back and utilizing the net operating losses generated from August 22, 2020 through December 31, 2020, and joint interest receivables of $345,000 and $440,000, respectively. The Company routinely reviews outstanding balances and establishes allowances for bad debts equal to the estimable portions of accounts receivable for which failure to collect is considered probable. As of December 31, 2020 and 2019, the Company had no allowance for doubtful accounts recorded.

Subscription receivable. In accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification (“ASC”) 505-10-45-2, “Receivables for Issuance of Equity,” the Company recorded a subscription receivable as of December 31, 2020 related to the exercise of warrants prior to December 31, 2020 as the cash was collected before the financial statements are issued or available to be issued. Prior to December 31, 2020, 312,711 warrants were exercised for cash proceeds of $3.6 million. Due to the timing of the exercises, the shares underlying the warrants were issued in December 2020 and the proceeds were received subsequent to December 31, 2020. The outstanding proceeds were recorded as a subscription receivable in the accompanying balance sheets as of December 31, 2020.

Notes receivable. Pursuant to an agreement between HPK LP and Pure, whereby Pure obtained extensions to complete its initial business combination to August 21, 2020, HPK LP made loans to Pure totaling $11.7 million and $4.2 million as of August 21, 2020 and December 31, 2019, respectively. The Company routinely reviews outstanding balances and establishes allowances for bad debts equal to the estimable portions of notes receivable for which failure to collect is considered probable. As of December 31, 2019, the Company had no allowance for doubtful accounts recorded. See additional information regarding Pure and the notes receivable cancellations in relations to the HighPeak business combination in Note 10.

Deposits. During 2019, HPK LP paid $61.5 million to Grenadier Energy Partners II, LLC (“Grenadier”) as a non-refundable deposit for an acquisition (the “Grenadier Acquisition”) and an additional $15.0 million extension payment was paid in 2020 that was to be accounted for as additional consideration for the Grenadier Acquisition upon closing. The Grenadier Acquisition was terminated in April 2020 and the $76.5 million in deposits and extension payments were charged to expense. In addition, the Company has paid the Texas Railroad Commission $50,000 in lieu of a plugging bond as statutorily required.

Inventory. Inventory is comprised primarily of oil and gas drilling or repair items such as tubing, casing, proppant used to fracture-stimulate oil and gas wells, water, chemicals, operating supplies and ordinary maintenance materials and parts. The materials and supplies inventory is primarily acquired for use in future drilling operations or repair operations and is carried at the lower of cost or net realizable value, on a weighted average cost basis. Valuation allowances for materials and supplies inventories are recorded as reductions to the carrying values of the materials and supplies inventories in the Company’s condensed consolidated balance sheet and as charges to other expense in the condensed consolidated statements of operations. The Company’s materials and supplies inventory as of December 31, 2020 and 2019 is $120,000 and $184,000, respectively, and the Company has not recognized any valuation allowance to date.

Oil and gas properties. The Company utilizes the successful efforts method of accounting for its oil and gas properties. Under this method, all costs associated with productive wells and nonproductive development wells are capitalized while nonproductive exploration costs and geological and geophysical expenditures are expensed.

The Company does not carry the costs of drilling an exploratory well as an asset in its consolidated balance sheet following the completion of drilling unless both of the following conditions are met: (i) the well has found a sufficient quantity of reserves to justify its completion as a producing well and (ii) the Company is making sufficient progress assessing the reserves and the economic and operating viability of the project.

Due to the capital-intensive nature and the geographical location of certain projects, it may take an extended period of time to evaluate the future potential of an exploration project and the economics associated with making a determination on its commercial viability. In these instances, the project’s feasibility is not contingent upon price improvements or advances in technology, but rather the Company’s ongoing efforts and expenditures related to accurately predict the hydrocarbon recoverability based on well information, gaining access to other companies’ production data in the area, transportation or processing facilities and/or getting partner approval to drill additional appraisal wells. These activities are ongoing and are being pursued constantly. Consequently, the Company’s assessment of suspended exploratory well costs is continuous until a decision can be made that the project has found sufficient proved reserves to sanction the project or is noncommercial and is charged to exploration and abandonment expense. See Note 5 for additional information.

The capitalized costs of proved properties are depleted using the unit-of-production method based on proved reserves for leasehold costs and proved reserves for drilling, completion and other oil and natural gas property costs. Costs of unproved leasehold costs are excluded from depletion until proved reserves are established or, if unsuccessful, impairment is determined.

Proceeds from the sales of individual properties and the capitalized costs of individual properties sold or abandoned are credited and charged, respectively, to accumulated depletion, depreciation and amortization, if doing so does not materially impact the depletion rate of an amortization base. Generally, no gain or loss is recorded until an entire amortization base is sold. However, gain or loss is recorded from the sale of less than an entire amortization base if the disposition is significant enough to materially impact the depletion rate of the remaining properties in the amortization base.

The Company performs assessments of its long-lived assets to be held and used, including proved oil and gas properties accounted for under the successful efforts method of accounting, whenever events or circumstances indicate that the carrying value of those assets may not be recoverable. An impairment loss is indicated if the sum of the expected future cash flows is less than the carrying amount of the assets. In these circumstances, the Company recognizes an impairment charge for the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets.

Unproved oil and gas properties are periodically assessed for impairment on a project-by-project basis. These impairment assessments are affected by the results of exploration activities, commodity price outlooks, planned future sales or expirations of all or a portion of such projects. If the estimated future net cash flows attributable to such projects are not expected to be sufficient to fully recover the costs invested in each project, the Company will recognize an impairment charge at that time. During the period from August 22, 2020 to December 31, 2020, the Company recognized an impairment of $4.8 million related to various leasehold costs that the Company was not successful in obtaining extensions on that is included in exploration and abandonment expenses in the accompanying consolidated and combined financial statements.

Other property and equipment, net. Other property and equipment is recorded at cost. The carrying values of other property and equipment, net of accumulated depreciation of $237,000 and $46,000 as of December 31, 2020 and 2019, respectively, are as follows:

Successor

Predecessors

December 31,

2020

December 31,

2019

(in thousands)

Land
$ 725 $ 580

Information technology
292 459

Transportation equipment
41 -

Leasehold improvements
24 37

Field equipment
10 12

Total other property and equipment, net
$ 1,092 $ 1,088

Other property and equipment is depreciated over its estimated useful life on a straight-line basis. Land is not depreciated. Information technology is generally depreciated over three years, transportation equipment is generally depreciated over five years and field equipment is generally depreciated over seven years. Leasehold improvements are amortized over the lesser of their estimated useful lives or the underlying terms of the associated leases.

The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If such assets are considered to be impaired, the impairment to be recorded is measured by the amount by which the carrying amount of the asset exceeds its estimated fair value. The estimated fair value is determined using either a discounted future cash flow model or another appropriate fair value method.

Debt issuance costs. In December 2020, the Company paid $405,000 in debt issuance costs related to its new revolving credit facility. Amortization of $4,000 based on the straight-line method over the term of the credit facility which approximates the interest rate method was recognized in 2020 and included in interest expense on the accompanying statement of operations. As of December 31, 2020, the net debt issuance costs are included in noncurrent assets on the accompanying consolidated balance sheet due to the fact that the credit facility was undrawn at the time. In the future, these net costs will be included with long-term debt, if any, in accordance with GAAP. See Note 6 for additional information regarding the Company’s new revolving credit facility.

Leases. The Company enters into leases for drilling rigs, storage tanks, equipment and buildings and recognizes lease expense on a straight-line basis over the lease term. Lease right-of-use assets and liabilities are initially recorded on the lease commencement date based on the present value of lease payments over the lease term. As most of the Company’s lease contracts do not provide an implicit discount rate, the Company uses its incremental borrowing rate, which is determined based on information available at the commencement date of a lease. Leases may include renewal, purchase or termination options that can extend or shorten the term of a lease. The exercise of those options is at the Company’s sole discretion and is evaluated at inception and throughout the contract to determine if a modification of the lease term is required. Leases with an initial term of 12 months or less are not recorded as lease right-of-use assets and liability. See Note 9 for additional information.

Accounts payable and accrued liabilities. Accounts payable and accrued liabilities as of December 31, 2020 and 2019 totaled approximately $22.4 million and $31.0 million, respectively, including trade accounts payable, revenues payable and accruals for capital expenditures, operating and general and administrative expenses, operating leases and other miscellaneous items.

Asset retirement obligations. The Company records a liability for the fair value of an asset retirement obligation in the period in which the associated asset is acquired or placed into service, if a reasonable estimate of fair value can be made. Asset retirement obligations are generally capitalized as part of the carrying value of the long-lived asset to which it relates. Conditional asset retirement obligations meet the definition of liabilities and are recorded when incurred and when fair value can be reasonably estimated. See Note 7 for additional information.

Revenue recognition. The Company follows FASB ASC 606, “Revenue from Contracts with Customers,” (“ASC 606”) whereby the Company recognizes revenues from the sales of oil and natural gas to its purchasers and presents them disaggregated on the Company’s condensed consolidated and combined statements of operations.

The Company enters into contracts with purchasers to sell its oil and natural gas production. Revenue on these contracts is recognized in accordance with the five-step revenue recognition model prescribed in ASC 606. Specifically, revenue is recognized when the Company’s performance obligations under these contracts are satisfied, which generally occurs with the transfer of control of the oil and natural gas to the purchaser. Control is generally considered transferred when the following criteria are met: (i) transfer of physical custody, (ii) transfer of title, (iii) transfer of risk of loss and (iv) relinquishment of any repurchase rights or other similar rights. Given the nature of the products sold, revenue is recognized at a point in time based on the amount of consideration the Company expects to receive in accordance with the price specified in the contract. Consideration under the oil and natural gas marketing contracts is typically received from the purchaser one to two months after production. At December 31, 2020 and 2019, the Company had receivables related to contracts with purchasers of approximately $4.2 million and $2.9 million, respectively.

Oil Contracts. The Company’s oil marketing contracts transfer physical custody and title at or near the wellhead, which is generally when control of the oil has been transferred to the purchaser. The oil produced is sold under contracts using market-based pricing which is then adjusted for the differentials based upon delivery location and oil quality. Since the differentials are incurred after the transfer of control of the oil, the differentials are included in oil sales on the consolidated and combined statements of operations as they represent part of the transaction price of the contract.

Natural Gas Contracts. The majority of the Company’s natural gas is sold at the lease location, which is generally when control of the natural gas has been transferred to the purchaser. The natural gas is sold under (i) percentage of proceeds processing contracts or (ii) a hybrid of percentage of proceeds and fee-based contracts. Under the majority of the Company’s contracts, the purchaser gathers the natural gas in the field where it is produced and transports it to natural gas processing plants where natural gas liquid products are extracted. The natural gas liquid products and remaining residue gas are then sold by the purchaser. Under percentage of proceeds and hybrid percentage of proceeds and fee-based contracts, the Company receives a percentage of the value for the extracted liquids and the residue gas. Since control of the natural gas transfers upstream of the transportation and processing activities, revenue is recognized as the net amount received from the purchaser.

The Company does not disclose the value of unsatisfied performance obligations under its contracts with customers as it applies the practical exemption in accordance with ASC 606. The exemption, as described in ASC 606-10-50-14(a), applies to variable consideration that is recognized as control of the product is transferred to the customer. Since each unit of product represents a separate performance obligation, future volumes are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required.

Income taxes. The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the carrying amounts for income tax purposes and net operating loss and tax credit carryforwards. The amount of deferred taxes on these temporary differences is determined using the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, as applicable, based on tax rates and laws in the respective tax jurisdiction enacted as of the balance sheet date.

The Company reviews its deferred tax assets for recoverability and establishes a valuation allowance based on projected future taxable income, applicable tax strategies and the expected timing of the reversals of existing temporary differences. A valuation allowance is provided when it is more likely than not (likelihood of greater than 50 percent) that some portion or all the deferred tax assets will not be realized. The Company has not established a valuation allowance as of December 31, 2020.

The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based upon the technical merits of the position. If all or a portion of the unrecognized tax benefit is sustained upon examination by the taxing authorities, the tax benefit will be recognized as a reduction to the Company’s deferred tax liability and will affect the Company’s effective tax rate in the period it is recognized. See Note 12 for addition information.

The Company records any tax-related interest charges as interest expense and any tax-related penalties as other expense in the condensed consolidated and combined statements of operations of which there have been none to date.

Prior to August 21, 2020, the Predecessors did not record a provision for U.S. federal income tax because the Predecessors were treated as partnerships for U.S. federal income tax purposes and, as such, the partners of the Predecessors reported their share of the Company’s income or loss on their respective income tax returns. The Predecessors were required to file tax returns on Form 1065 with the Internal Revenue Service (“IRS”). The 2017 to 2019 tax years remain open to examination.

The Predecessors recognize in their condensed consolidated and combined financial statements the effect of a tax position, if that position is more likely than not to be sustained upon examination, including resolution of any appeals or litigation processes, based upon the technical merits of the position. Tax positions taken related to the Predecessors’ status as limited partnerships, and state filing requirements have been reviewed, and management is of the opinion that they would more likely than not be sustained by examination. Accordingly, the Company has not recorded an income tax liability for uncertain tax benefits for periods prior to August 21, 2020. Under the new centralized partnership audit rules effective for tax years beginning after 2017, the IRS assesses and collects underpayments of tax from the partnership instead of from each partner. The partnership may be able to pass the adjustments through to its partners by making a push-out election or, if eligible, by electing out of the centralized partnership audit rules. The collection of tax from the partnership is only an administrative convenience for the IRS to collect any underpayment of income taxes including interest and penalties. Income taxes on partnership income, regardless of who pays the tax or when the tax is paid, is attributed to the partners. Any payment made by the Company as a result of an IRS examination will be treated as an expense from the Company in the condensed consolidated and combined financial statements.

The Company is also subject to Texas Margin Tax. The Company realized no Texas Margin Tax in the accompanying condensed consolidated and combined financial statements as we do not anticipate owing any Texas Margin Tax for the periods presented.

Stock-based compensation. Stock-based compensation expense for stock options (“Equity Awards”) is measured at the grant date or modification date, as applicable, using the fair value of the award, and is recorded, net of forfeitures, on a straight-line basis over the requisite service period of the respective award. The fair value of Equity Awards is determined on the grant date or modification date, as applicable, using a Black-Scholes option valuation model with the following inputs; (i) the grant date’s closing stock price, (ii) the exercise price of the stock options, (iii) the expected term of the stock option, (iv) the estimated risk-free adjusted interest rate for the duration of the option’s expected term, (v) the expected annual dividend yield on the underlying stock and (vi) the expected volatility over the option’s expected term.

Stock-based compensation for HighPeak Energy common stock issued to directors with no restrictions thereon, as was the case with the 62,500 shares issued in November 2020 to the non-management directors, is measured at the grant date using the fair value of the award and is recorded as stock-based compensation in the accompanying financial statements immediately. If restricted stock is awarded to employees or directors in the future, as the case may be, stock-based compensation will be recognized on a straight-line basis over the requisite service period of the respective award.

Segments. Based on the Company’s organizational structure, the Company has one operating segment, which is oil and natural gas development, exploration and production. In addition, the Company has a single, company-wide management team that allocates capital resources to maximize profitability and measures financial performance as a single enterprise.

Impact of the COVID-19 Pandemic. A novel strain of the coronavirus disease 2019 ("COVID-19") surfaced in late 2019 and spread around the world, including to the United States. In March 2020, the World Health Organization declared COVID-19 a pandemic, and the President of the United States declared the COVID-19 outbreak a national emergency. The COVID-19 pandemic significantly affected the global economy, disrupted global supply chains and created significant volatility in the financial markets. In addition, the COVID-19 pandemic resulted in travel restrictions, business closures and other restrictions that have disrupted the demand for oil throughout the world and when combined with pressures on the global supply-demand balance for oil and related products, resulted in significant volatility in oil prices beginning late February 2020. The length of this demand disruption is unknown, and there is significant uncertainty regarding the long-term impact of the effects of the COVID-19 pandemic to global oil demand, which negatively impacted the Company's results of operations and led to a significant reduction in the Company's 2020 capital activities.

Adoption of new accounting standards. In February 2016, the FASB issued Accounting Standards Update ("ASU") 2016-02, "Leases (Topic 842)" ("ASC 842"), which supersedes the lease recognition requirements in ASC 840, "Leases" ("ASC 840"), and requires lessees to recognize lease assets and lease liabilities for those leases previously classified as operating leases. The Company adopted ASC 842 as of August 22, 2020 using the modified retrospective transition method. The Company elected to apply the transition guidance under ASU 2018-11, "Leases (Topic 842) Targeted Improvements," in which ASC 842 is applied at the adoption date, while the comparative periods will continue to be reported in accordance with historic accounting under ASC 840. This standard does not apply to leases to explore for or use minerals, oil or natural gas resources, including the right to explore for those natural resources and rights to use the land in which those natural resources are contained.

ASC 842 allowed for the election of certain practical expedients at adoption to ease the burden of implementation. At implementation, the Company elected to (i) maintain the historical lease classification for leases prior to August 22, 2020, (ii) maintain the historical accounting treatment for land easements that existed at adoption, (iii) use historical practices in assessing the lease term of existing contracts at adoption, (iv) combine lease and non-lease components of a contract as a single lease and (v) not record short-term leases in the consolidated balance sheet, all in accordance with ASC 842.

The adoption of ASC 842 did not have a material impact on the consolidated statements of operations and had no impact on the Company's cash flows. The Company did not record a change to its opening retained earnings as of August 22, 2020, as there was no material change to the timing or pattern of recognition of lease costs due to the adoption of ASC 842.

New accounting pronouncements. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"). ASU 2016-13 replaces the incurred loss impairment model with an expected credit loss impairment model for financial instruments, including trade receivables. The amendment requires entities to consider forward-looking information to estimate expected credit losses, resulting in earlier recognition of losses for receivables that are current or not yet due, which were not considered under the previous accounting guidance. The Company has evaluated the ASU 2016-03 and does not believe its adoption will have a material impact on the Company’s consolidated financial statements.

In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”). The amendments in this update remove certain exceptions of Topic 740 including: exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or gain from other items; exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment; exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary; exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. There are also additional areas of guidance in regards to franchise and other taxes partially based on income and the interim recognition of enactment of tax laws and rate changes. The provisions of this ASU are effective for years beginning after December 15, 2020.

In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (ASC 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”). This ASU provides temporary optional expedients and exceptions to GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as the SOFR. Entities can elect not to apply certain modification accounting requirements to contracts affected by reference rate reform if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification rate date or reassess a previous accounting determination. Entities can also elect various optional expedients that would allow them to continue applying hedge accounting relationships affected by reference rate reform if certain criteria are met.

In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848): Scope” (“ASU 2021-01”). This ASU clarifies that all derivative instruments affected by changes to the interest rates used for discounting, margining or contract price alignment (“The Discounting Transition”) are in the scope of ASC 848 and therefore qualify for the available temporary optional expedients and exceptions. As such, entities that employ derivatives that are the designated hedged item in a hedge relationship where perfect effectiveness is assumed can continue to apply hedge accounting without de-designating the hedging relationship to the extent such derivatives are impacted by the Discounting Transition.

The Company has evaluated recently issued, but not yet adopted, accounting pronouncements and does not believe they would have a material effect on the Company’s condensed consolidated and combined financial statements.

Note 3 - Acquisitions

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes to Financial Statements

Acquisitions [Text Block]

NOTE 3. Acquisitions

During the six months ended June 30, 2021 and 2020, the Company incurred a total of $2.1 million and $3.3 million, respectively, to acquire primarily undeveloped acreage, and in the case of the 2020 period, three vertical producing properties and two salt-water disposal wells in and around the Company’s existing properties for future exploration activities in the Midland Basin.

Grenadier Acquisition. In June 2019, HighPeak Energy Assets II, LLC (“HighPeak Assets II”) signed a purchase and sale agreement with Grenadier Energy Partners II, LLC (“Grenadier”) to acquire substantially all the oil and natural gas assets of Grenadier, effective June 1, 2019, subject to certain customary closing adjustments for a total purchase price of $615.0 million. Since HighPeak Assets II was contributed to the Predecessor in the HPK LP business combination, this purchase and sale agreement became part of the Predecessor effective October 1, 2019. A nonrefundable deposit of $61.5 million was paid to Grenadier in 2019 in addition to a $15.0 million nonrefundable extension payment in 2020 to extend the potential closing to May 2020. The Grenadier Acquisition was terminated in April 2020 and was not consummated and therefore a charge to expense of $76.5 million was recognized during the six months ended June 30, 2020.

NOTE 3. Acquisitions

During the period from August 22, 2020 to December 31, 2020 and the period from January 1, 2020 to August 21, 2020, the Company spent a total of $1.2 million and $3.3 million, respectively, to acquire primarily undeveloped acreage, three vertical producing properties and two salt-water disposal wells in and around the Company’s existing properties for future exploration activities in the Midland Basin.

Grenadier Acquisition. In June 2019, HighPeak Energy Assets II, LLC (“HighPeak Assets II”) signed a purchase and sale agreement with Grenadier to acquire substantially all the oil and gas assets of Grenadier, effective June 1, 2019, subject to certain customary closing adjustments for a total purchase price of $615.0 million. Since HighPeak Assets II was contributed to the Predecessors in the HPK LP business combination discussed in Note 10, this purchase and sale agreement became part of the Predecessors effective October 1, 2019. The Grenadier Acquisition was originally scheduled to close no later than October 2019 but was extended twice to May 2020. In consideration for the initial extension, HPK LP: (i) released the then existing $30.75 million deposit from escrow and (ii) paid directly to Grenadier an additional $30.75 million and (iii) agreed to treat the collective sum as a nonrefundable deposit to Grenadier. In consideration for the second extension, HPK LP agreed to pay Grenadier an additional $15.0 million that was also nonrefundable but, unlike the $61.5 million deposit, was not to be credited toward the purchase price. The Grenadier Acquisition was terminated in April 2020 and was not consummated and therefore a charge to expense of $76.5 million was recognized.

Note 4 - Fair Value Measurements

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes to Financial Statements

Fair Value Disclosures [Text Block]

NOTE 4. Fair Value Measurements

The Company determines fair value based on the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are based upon inputs that market participants use in pricing an asset or liability, which are characterized according to a hierarchy that prioritizes those inputs based on the degree to which they are observable. Observable inputs represent market data obtained from independent sources, whereas unobservable inputs reflect a company's own market assumptions, which are used if observable inputs are not reasonably available without undue cost and effort. The fair value input hierarchy level to which an asset or liability measurement in its entirety falls is determined based on the lowest level input that is significant to the measurement in its entirety.

The three input levels of the fair value hierarchy are as follows:

	●	Level 1 – quoted prices for identical assets or liabilities in active markets.
	●	Level 2 – quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates) and inputs derived principally from or corroborated by observable market data by correlation or other means.
	●	Level 3 – unobservable inputs for the asset or liability, typically reflecting management’s estimate of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore, determined using model-based techniques, including discounted cash flow models.

Assets and liabilities measured at fair value on a recurring basis. Assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 are as follows (in thousands):

	As of June 30, 2021
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Liabilities:
Commodity price derivatives	$	-	$	12,558	$	-	$	12,558

The Company did not have any assets or liabilities that are measured at fair value on a recurring basis as of December 31, 2020.

Commodity price derivatives. The Company’s commodity price derivatives are currently made up entirely of crude oil swap contracts. The Company measures derivatives using an industry-standard pricing model that is provided by a third party. The inputs utilized in the third-party discounted cash flow and option-pricing models for valuing commodity price derivatives include forward prices for crude oil, contracted volumes, volatility factors and time to maturity, which are considered Level 2 inputs.

Assets and liabilities measured at fair value on a nonrecurring basis. Certain assets and liabilities are measured at fair value on a nonrecurring basis. These assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances. Specifically, (i) stock-based compensation is measured at fair value on the date of grant based on Level 1 inputs for restricted stock awards or Level 2 inputs for stock option awards based upon market data, and (ii) the estimates and fair value measurements used for the evaluation of proved property for potential impairment using Level 3 inputs based upon market conditions in the area. The Company assesses the recoverability of the carrying amount of certain assets and liabilities whenever events or changes in circumstances indicate the carrying amount of an asset or liability may not be recoverable. These assets and liabilities can include inventories, proved and unproved oil and natural gas properties and other long-lived assets that are written down to fair value when they are impaired or held for sale. The Company did not record any impairments to proved or unproved oil and natural gas properties for the periods presented in the accompanying condensed consolidated and combined financial statements.

The Company has other financial instruments consisting primarily of cash equivalents, accounts receivable, accounts payable, long-term debt and other current assets and liabilities that approximate fair value due to the nature of the instrument and their relatively short maturities.

Impact of the COVID-19 pandemic on certain assets and liabilities measured at fair value on a nonrecurring basis.

Proved Properties. The Company performs assessments of its proved oil and natural gas properties accounted for under the successful efforts method of accounting whenever events or circumstances indicate that the carrying value of those assets may not be recoverable. An impairment loss is indicated if the sum of the expected future cash flows is less than the carrying amount of the assets. In these circumstances, the Company recognizes an impairment charge for the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets.

The Company performed an impairment assessment of its proved oil and natural gas properties as of June 30, 2021 and December 31, 2020 and determined that its proved oil and natural gas properties were not impaired. The primary factors that may affect estimates of future cash flows for the Company's proved oil and natural gas properties are (i) future reserve adjustments, both positive and negative, to proved reserves and risk-adjusted probable and possible reserves, (ii) results of future drilling activities, (iii) management's price outlooks and (iv) increases or decreases in production and capital costs.

There is significant uncertainty surrounding the long-term impact to global oil demand due to the effects of the COVID-19 pandemic. It is reasonably possible that the carrying value of the Company's proved oil and natural gas properties could exceed their estimated fair value resulting in the need to impair their carrying values in the future. If incurred, an impairment of the Company's proved oil and natural gas properties could have a material adverse effect on the Company's financial condition and results of operations.

NOTE 4. Fair Value Measurements

The three input levels of the fair value hierarchy are as follows:

	●	Level 1 – quoted prices for identical assets or liabilities in active markets.
	●	Level 2 – quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g. interest rates) and inputs derived principally from or corroborated by observable market data by correlation or other means.
	●	Level 3 – unobservable inputs for the asset or liability, typically reflecting management’s estimate of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore, determined using model-based techniques, including discounted cash flow models.

Assets and liabilities measured at fair value on a recurring basis. The fair value input hierarchy level to which an asset or liability measurement in its entirety falls is determined based on the lowest level of input that is significant to the measurement in its entirety.

The Company did not have any assets or liabilities that are measured at fair value on a recurring basis as of December 31, 2020 or 2019.

Assets and liabilities measured at fair value on a nonrecurring basis. Certain assets and liabilities are measured at fair value on a nonrecurring basis. These assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances. Specifically, (i) stock-based compensation is measured at fair value on the date of grant based on Level 2 inputs based upon market data, (ii) the oil and gas properties of HighPeak Assets II that were contributed to one of the Predecessors discussed further and in more detail in Note 10 were measured at current estimated fair value using Level 3 inputs based upon market conditions in the area, and (iii) the estimates and fair value measurements used for the evaluation of proved property for potential impairment using Level 3 inputs based upon market conditions in the area. The Company assesses the recoverability of the carrying amount of certain assets and liabilities whenever events or changes in circumstances indicate the carrying amount of an asset or liability may not be recoverable. These assets and liabilities can include inventories, proved and unproved oil and gas properties and other long-lived assets that are written down to fair value when they are impaired or held for sale. The Company did not record any impairments to proved or unproved oil and gas properties for the periods presented in the accompanying condensed consolidated and combined financial statements.

Concentrations of credit risk. As of December 31, 2020 and 2019, management concluded there are no concentrations of credit risk, based on the nature of the assets held by the Company.

Impact of the COVID-19 pandemic on certain assets and liabilities measured at fair value on a nonrecurring basis.

Proved Properties. The Company performs assessments of its proved oil and gas properties accounted for under the successful efforts method of accounting whenever events or circumstances indicate that the carrying value of those assets may not be recoverable. An impairment loss is indicated if the sum of the expected future cash flows is less than the carrying amount of the assets. In these circumstances, the Company recognizes an impairment charge for the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets.

Due to the decrease in management's commodity price outlooks ("Management's Price Outlooks"), the Company performed an impairment assessment of its proved oil and gas properties as of December 31, 2020 and determined that its proved oil and gas properties were not impaired. The primary factors that may affect estimates of future cash flows for the Company's proved oil and gas properties are (i) future reserve adjustments, both positive and negative, to proved reserves and risk-adjusted probable and possible reserves, (ii) results of future drilling activities, (iii) management's price outlooks and (iv) increases or decreases in production and capital costs.

There is significant uncertainty surrounding the long-term impact to global oil demand due to the effects of the COVID-19 pandemic. These conditions negatively impacted the Company's 2020 capital activities and production levels. It is reasonably possible that the carrying value of the Company's proved oil and gas properties could exceed their estimated fair value resulting in the need to impair their carrying values in the future. If incurred, an impairment of the Company's proved oil and gas properties could have a material adverse effect on the Company's financial condition and results of operations.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Note 5 - Derivative Financial Instruments

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Derivative Instruments and Hedging Activities Disclosure [Text Block]

NOTE 5. Derivative Financial Instruments

The Company primarily utilizes commodity swap contracts to (i) reduce the effect of price volatility on the commodities the Company produces and sells, and (ii) support the Company’s capital budgeting and expenditure plans and (iii) support the payment of contractual obligations.

The following table summarizes the effect of derivatives on the Company’s condensed consolidated statements of operations:

	Three Months Ended June 30,					Six Months Ended June 30,
	2021			2020		2021			2020
	Successor			Predecessor		Successor			Predecessor
Noncash derivative gain (loss), net	$	(12,558	)	$	-	$	(12,558	)	$	-
Cash payments on settled derivative instruments, net		(1,038	)		-		(1,038	)		-
Derivative gain (loss), net	$	(13,596	)	$	-	$	(13,596	)	$	-

Crude oil production derivatives. The Company sells its oil production at the lease and the sales contracts governing such oil production are tied directly to, or are correlated with, NYMEX WTI oil prices. As such, the Company uses NYMEX WTI derivative contracts to manage future oil price volatility.

The Company’s outstanding crude oil derivative contracts as of June 30, 2021 and the weighted average oil prices per barrel for those contracts are as follows:

	2021						2022
	Third Quarter		Fourth Quarter		Total		First Quarter		Second Quarter		Total
Oil Price Swaps
Volume (Bbls)		460,000		460,000		920,000		450,000		302,500		752,500
Price per Bbl	$	61.91	$	61.91	$	61.91	$	61.91	$	62.16	$	61.95

The Company uses credit and other financial criteria to evaluate the credit standings of, and to select, counterparties to its derivative financial instruments. Although the Company does not obtain collateral or otherwise secure the fair value of its derivative financial instruments, associated credit risk is mitigated by the Company’s credit risk policies and procedures.

Net derivative liabilities associated with the Company’s open commodity derivatives are all with Fifth Third Bank, National Association (“Fifth Third”) as of June 30, 2021.

Note 6 - Exploratory Well Costs

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes to Financial Statements

Exploratory Well Costs [Text Block]

NOTE 6. Exploratory Well Costs

The Company capitalizes exploratory well and project costs until a determination is made that the well or project has either found proved reserves, is impaired or is sold. The Company's capitalized exploratory well and project costs are included in proved properties in the condensed consolidated balance sheets. If the exploratory well or project is determined to be impaired, the impaired costs are charged to exploration and abandonments expense.

The changes in capitalized exploratory well costs are as follows (in thousands):

	Six Months Ended June 30, 2021
Beginning capitalized exploratory well costs	$	32,592
Additions to exploratory well costs		75,289
Reclassification to proved properties		(106,749	)
Exploratory well costs charged to exploration and abandonment expense		-
Ending capitalized exploratory well costs	$	1,132

All capitalized exploratory well costs have been capitalized for less than one year based on the date of drilling.

NOTE 5. Exploratory Well Costs

The changes in capitalized exploratory well costs are as follows (in thousands):

	Year Ended December 31, 2020
	Successor			Predecessors
	August 22, through December 31, 2020			January 1, through August 21, 2020			Year Ended December 31, 2019

Beginning capitalized exploratory well costs	$	41,524		$	11,427		$	-
Additions to exploratory well costs pending the determination of proved reserves		53,462			48,169			58,435
Reclassification due to determination of proved reserves		(62,394	)		(18,072	)		(47,008	)
Exploratory well costs charged to exploration and abandonment expense		-			-			-
Ending capitalized exploratory well costs	$	32,592		$	41,524		$	11,427

All capitalized exploratory well costs have been capitalized for less than one year based on the date of drilling.

Note 7 - Long-term Debt

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes to Financial Statements

Long-term Debt [Text Block]

Note 7. Long-Term Debt

The components of long-term debt, including the effects of debt issuance costs, are as follows (in thousands):

	June 30,			December 31,
	2021			2020
Revolving Credit Facility due 2024	$	14,000		$	-
Debt issuance costs, net (a)		(2,082	)		-
Total debt		11,918			-
Less current portion of long-term debt		-			-
Long-term debt, net	$	11,918		$	-

(a) Debt issuance costs as of June 30, 2021 consisted of $2.2 million in costs less accumulated amortization of $81,000. Debt issuance costs as of December 31, 2020 of $401,000, net of accumulated amortization of $4,000, were classified in other noncurrent assets on the accompanying balance sheet due to the fact that the Company had no outstanding debt at that time.

Revolving Credit Facility. In December 2020, the Company entered into a Credit Agreement with Fifth Third as the administrative agent and sole lender to establish a revolving credit facility (“Revolving Credit Facility”) that matures on June 17, 2024. The Revolving Credit Facility had an initial borrowing base of $40.0 million. However, the Company elected to reduce the aggregate elected commitments under the Revolving Credit Facility to $20.0 million. In June 2021, the Company entered into the First Amendment to the Credit Agreement to among other things, (i) complete the semi-annual borrowing base redetermination process which increased the borrowing base from $40.0 million to $125,0 million and (ii) modify the terms of the Credit Agreement to increase the aggregate elected commitments from $20.0 million to $125.0 million. A syndicate of banks joined the credit facility at differing levels of commitments with Fifth Third remaining the administrative agent.

The borrowing capacity under the Revolving Credit Facility is equal to the lowest of (i) the borrowing base (which currently stands at $125.0 million), (ii) the aggregate elected commitments (which currently stand at $125.0 million) and (iii) $500.0 million. As of June 30, 2021 and December 31, 2020, the Company had $14.0 million and zero, respectively, outstanding borrowings under the Revolving Credit Facility. Borrowings under the Revolving Credit Facility bear interest, at the option of the Company, based on (a) a rate per annum equal to the higher of (i) the prime rate announced from time to time by Fifth Third, (ii) the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System during the last preceding business day plus 0.5 percent or (iii) the Adjusted LIBOR Rate, plus a margin (the “Applicable Margin”), which is currently 3.25 percent and is also determined by the Borrowing Base Utilization Percentage as defined in the Revolving Credit Facility. Letters of credit outstanding under the Revolving Credit Facility are subject to a per annum fee, representing the Applicable Margin plus 0.125 percent. The Company also pays commitment fees on undrawn amounts under the Revolving Credit Facility equal to 0.50 percent. Borrowings under the Revolving Credit Facility are secured by a first lien security interest on substantially all assets of the Company and its restricted subsidiaries, including mortgages on the Company’s and its restricted subsidiaries’ oil and natural gas properties. The Revolving Credit Facility is scheduled to have the borrowing base redetermined semiannually in April and October. Additionally, the Company and Fifth Third each have the option for a wild card evaluation between redeterminations.

The Credit Agreement specifies that if LIBOR is no longer a widely used benchmark rate, or if it is no longer used for determining interest rates for loans in the United States, a replacement interest rate that fairly reflects the cost to the lenders of funding loans shall be established by the Administrative Agent, as defined in the Credit Agreement, in consultation with the Company. See Note 2 for reference rate reform.

The Revolving Credit Facility requires the maintenance of a ratio of total debt to EBITDAX, subject to certain adjustments, not to exceed 3.00 to 1.00 as of the last day of any fiscal quarter (commencing with the fiscal quarter ending June 30, 2021) and a current ratio, subject to certain adjustments, of at least 1.00 to 1.00 as of the last day of any fiscal quarter.

The Company has limited equity cure rights for a breach of the above-listed financial covenants. Additionally, the Revolving Credit Facility contains additional restrictive covenants that limit the ability of the Company and its restricted subsidiaries to, among other things, incur additional indebtedness, incur additional liens, make investments and loans, enter into mergers and acquisitions, make or declare dividends and other payments, enter into certain hedging transactions, sell assets and engage in transactions with affiliates. The Revolving Credit Facility contains customary mandatory prepayments, including a monthly mandatory prepayment if the Consolidated Cash Balance (as defined in the Revolving Credit Agreement) is in excess of $20.0 million. In addition, the Revolving Credit Agreement is subject to customary events of default, including a change in control. If an event of default occurs and is continuing, the administrative agent or the majority of the lenders may accelerate any amounts outstanding and terminate lender commitments.

Note 6. Long-Term Debt

Revolving Credit Facility. In December 2020, the Company entered into a revolving credit facility with Fifth Third Bank, National Association (“Fifth Third”) as the administrative agent and sole lender (“Revolving Credit Facility”) that matures on June 17, 2024. The Revolving Credit Facility has an initial borrowing base of $40 million. The Company elected to reduce the aggregate elected commitments under the Revolving Credit Facility to $20 million. The borrowing capacity under the Revolving Credit Facility is equal to the lowest of (i) the borrowing base (which currently stands at $40.0 million), (ii) the aggregate elected commitments (which currently stand at $20.0 million) and (iii) $500.0 million. As of December 31, 2020, the Company had no outstanding borrowings under the Revolving Credit Facility. Borrowings under the Revolving Credit Facility bear interest, at the option of the Company, based on (a) a rate per annum equal to the higher of (i) the prime rate announced from time to time by Fifth Third, (ii) the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System during the last preceding business day plus 0.5 percent or (iii) the Adjusted LIBOR Rate, plus a margin (the “Applicable Margin”), which is currently 3.25 percent and is also determined by the Borrowing Base Utilization Percentage as defined in the Revolving Credit Facility. Letters of credit outstanding under the Revolving Credit Facility are subject to a per annum fee, representing the Applicable Margin plus 0.125 percent. The Company also pays commitment fees on undrawn amounts under the Revolving Credit Facility equal to 0.50 percent. Borrowings under the Revolving Credit Facility are secured by a first lien security interest on substantially all assets of the Company and its restricted subsidiaries, including mortgages on the Company’s and its restricted subsidiaries’ oil and gas properties. The Revolving Credit Facility is scheduled to have the borrowing base redetermined semiannually in April and October. Additionally, the Company and Fifth Third each have the option for a wild card evaluation between redeterminations.

The Revolving Credit Facility requires the maintenance of a ratio of total debt to EBITDAX, subject to certain adjustments, not to exceed 3.00 to 1.00 as of the last day of any fiscal quarter (commencing with the fiscal quarter ending March 31, 2021) and a current ratio, subject to certain adjustments of at least 1.00 to 1.00 as of the last day of any fiscal quarter (commencing with the fiscal quarter ending March 31, 2021).

The Company has limited equity cure rights for a breach of the above-listed financial covenants. Additionally, the Revolving Credit Agreement contains additional restrictive covenants that limit the ability of the Company and its restricted subsidiaries to, among other things, incur additional indebtedness, incur additional liens, make investments and loans, enter into mergers and acquisitions, make or declare dividends and other payments, enter into certain hedging transactions, sell assets and engage in transactions with affiliates. The Revolving Credit Facility contains customary mandatory prepayments, including a monthly mandatory prepayment if the Consolidated Cash Balance (as defined in the Revolving Credit Agreement) is in excess of $20.0 million. In addition, the Revolving Credit Agreement is subject to customary events of default, including a change in control. If an event of default occurs and is continuing, the administrative agent or the majority may accelerate any amounts outstanding and terminate lender commitments.

Note 8 - Asset Retirement Obligations

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes to Financial Statements

Asset Retirement Obligation Disclosure [Text Block]

Note 8. Asset Retirement Obligations

The Company’s asset retirement obligations primarily relate to the future plugging and abandonment of wells and related facilities. Market risk premiums associated with asset retirement obligations are estimated to represent a component of the Company’s credit-adjusted risk-free rate that is utilized in the calculations of asset retirement obligations.

Asset retirement obligations activity is as follows (in thousands):

	Six Months Ended June 30, 2021
Beginning asset retirement obligations	$	2,293
Liabilities incurred from new wells		610
Revision of estimates (a)		(10	)
Accretion of discount		72
Ending asset retirement obligations	$	2,965

(a) The revisions to the Company’s asset retirement obligation estimates are primarily due to changes in estimated costs based on experience with the properties and their expected useful lives.

As of June 30, 2021 and December 31, 2020, all asset retirement obligations are considered noncurrent and classified as such in the accompanying consolidated balance sheet.

Note 7. Asset Retirement Obligations

Asset retirement obligations activity is as follows (in thousands):

	Year Ended December 31, 2020
	Successor			Predecessors
	August 22, 2020 through December 31, 2020			January 1, 2020 through August 21, 2020		Year Ended December 31, 2019
Beginning asset retirement obligations	$	2,398		$	2,212	$	520
Liabilities incurred from new wells		84			97		1,511
Liabilities settled upon plugging and abandoning wells		(29	)		-		(51	)
Revision of estimates (a)		(211	)		-		160
Accretion of discount		51			89		72
Ending asset retirement obligations	$	2,293		$	2,398	$	2,212

(a) The revisions to the Company’s asset retirement obligation estimates are primarily due to changes in estimated costs based on experience with the properties.

As of December 31, 2020 and 2019, all asset retirement obligations are considered noncurrent and classified as such in the accompanying consolidated balance sheet.

Note 9 - Incentive Plans

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

NOTE 9. Incentive Plans

401(k) Plan. The HighPeak Energy Employees, Inc 401(k) Plan (the “401(k) Plan”) is a defined contribution plan established under Section 401 of the Internal Revenue Code of 1986, as amended (the "Code"). As of October 1, 2020, all regular full-time and part-time employees of the Company are eligible to participate in the 401(k) Plan after three continuous months of employment with the Company. Participants may contribute up to 80 percent of their annual base salary into the 401(k) Plan. Matching contributions are made to the 401(k) Plan in cash by the Company in amounts equal to 100 percent of a participant’s contributions to the 401(k) Plan up to four percent of the participant’s annual base salary (the “Matching Contribution”). Each participant’s account is credited with the participant’s contributions, Matching Contributions and allocations of the 401(k) Plan’s earnings. Participants are fully vested in their account balances at their eligibility date. During the six months ended June 30, 2021 and 2020, the Company contributed $111,000 and zero to the 401(k) Plan, respectively.

Long-Term Incentive Plan. The Company’s Long-Term Incentive Plan (“LTIP”) provides for the granting of stock awards, stock options, dividend equivalents and substitute awards to directors, officers and employees of the Company. The number of shares available for grant pursuant to awards under the LTIP are as follows:

	June 30, 2021
Approved and authorized awards		12,047,866
Awards issued under plan		(9,681,506	)
Awards available for future grant		2,366,360

Stock Options. Stock option awards were granted to employees on August 24, 2020. Stock-based compensation expense related to the Company’s stock option awards for the six months ended June 30, 2021 and 2020 was $1.9 million and zero, respectively, and as of June 30, 2021 and December 31, 2020 there was $1.9 million and $3.8 million, respectively, of unrecognized stock-based compensation expense related to unvested stock option awards. The unrecognized compensation expense will be recognized on a straight-line basis over the remaining vesting periods of the awards, which is a period of less than two years.

The Company estimates the fair values of stock options granted on the grant date using a Black-Scholes option valuation model, which requires the Company to make several assumptions. The expected term of options granted was determined based on the simplified method of the midpoint between the vesting dates and the contractual term of the options. The risk-free interest rate is based on the U.S. treasury yield curve rate for the expected term of the option at the date of grant and the volatility was based on the volatility of a peer group of companies with similar characteristics of the Company on the date of grant since the Company did not have any trading history. More detailed stock options activity and details are as follows:

	Stock Options			Exercise Price		Remaining Term in Years		Intrinsic Value (in thousands)
Outstanding at August 22, 2020		-
Awards granted		9,705,495		$	10.00
Outstanding at December 31, 2020		9,705,495		$	10.00		9.7	$	57,942
Exercised		(154,268	)	$	10.00
Outstanding at June 30, 2021		9,551,227		$	10.00		9.2	$	-

Vested at December 31, 2020		7,204,163		$	10.00		9.7	$	43,009
Exercisable at December 31, 2020		7,204,163		$	10.00		9.7	$	43,009

Vested at June 30, 2021		7,049,895		$	10.00		9.2	$	2,232
Exercisable at June 30, 2021		7,049,895		$	10.00		9.2	$	2,232

Stock Issued to Directors. A total of 67,779 shares of restricted stock was approved by the board of directors to be granted to the outside directors of the Company on June 1, 2021, which vest on the one-year anniversary of such grant assuming the director remains in his or her position as of the anniversary date. Out of the 67,779 shares of restricted stock granted, 52,883 were issued during June 2021 and 14,896 shares were issued in July 2021. Therefore, stock-based compensation expense of $57,000 was recognized during the six months ended June 30, 2021, and the remaining $626,000 will be recognized over the remaining restricted period, which was based upon the closing price of the stock on the date of the restricted stock issuance.

Stock was issued to the outside directors of the Company in November 2020 in the amount of 12,500 shares for each outside director, totaling 62,500 shares. There were no restrictions of these shares. Therefore stock-based compensation expense was recognized immediately upon the issuance of these shares in the amount of $302,000 which was based upon the closing price of the stock on the date the stock issuance was approved by the board of directors of the Company.

NOTE 8. Incentive Plans

401(k) Plan. The HighPeak Energy Employees, Inc 401(k) Plan (the “401(k) Plan”) is a defined contribution plan established under Section 401 of the Internal Revenue Code of 1986, as amended (the "Code"). As of October 1, 2020, all regular full-time and part-time employees of the Company are eligible to participate in the 401(k) Plan after three continuous months of employment with the Company. Participants may contribute up to 80 percent of their annual base salary into the 401(k) Plan. Matching contributions are made to the 401(k) Plan in cash by the Company in amounts equal to 100 percent of a participant’s contributions to the 401(k) Plan that are not in excess of four percent of the participant’s annual base salary (the “Matching Contribution”). Each participant’s account is credited with the participant’s contributions, Matching Contributions and allocations of the 401(k) Plan’s earnings. Participants are fully vested in their account balances at their eligibility date. During the period from August 24, 2020 through December 31, 2020, the Company contributed $49,000 to the 401(k) Plan.

Long-Term Incentive Plan. The Company’s 2020 Long-Term Incentive Plan (“LTIP”) provides for the granting of stock awards, stock options, dividend equivalents and substitute awards to directors, officers and employees of the Company. The number of shares available for grant pursuant to awards under the LTIP are as follows:

	December 31, 2020
Approved and authorized awards		11,907,006
Awards granted under plan		(9,767,995	)
Awards available for future grant		2,139,011

Stock Options. Stock options were granted to employees on August 24, 2020. Stock-based compensation expense related to stock options for the period from August 22, 2020 to December 31, 2020 for the Company was $15.5 million, and as of December 31, 2020 there was $3.8 million of unrecognized stock-based compensation expense related to unvested stock-based compensation awards. The unrecognized compensation expense will be recognized on a straight-line basis over the remaining vesting periods of the awards, which is a period of less than two years.

The Company estimates the fair values of stock options granted using a Black-Scholes option valuation model, which requires the Company to make several assumptions. The expected term of options granted was determined based on the simplified method of the midpoint between the vesting dates and the contractual term of the options. The risk-free interest rate is based on the U.S. treasury yield curve rate for the expected term of the option at the date of grant and the volatility was based on the volatility of a peer group of companies with similar characteristics of the Company on the date of grant since the Company did not have any trading history. More detailed stock options activity and details are as follows:

	Stock Options		Exercise Price		Remaining Term in Years		Intrinsic Value (in thousands)
Outstanding at August 22, 2020		-
Awards granted		9,705,495	$	10.00
Awards forfeited		-
Exercised		-
Outstanding at December 31, 2020		9,705,495	$	10.00		9.7	$	57,942

Vested at December 31, 2020		7,204,163	$	10.00		9.7	$	43,009
Exercisable at December 31, 2020		7,204,163	$	10.00		9.7	$	43,009

Stock Issued to Directors. Stock was issued to the outside directors of the Company in November 2020 in the amount of 12,500 shares each totaling 62,500 shares in total. There were no restrictions of these shares. Therefore stock-based compensation expense was recognized immediately upon the issuance of these shares in the amount of $302,000 which was based upon the closing price of the stock on the date the stock issuance was approved by the board of directors of the Company.

Note 10 - Commitments and Contingencies

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

NOTE 10. Commitments and Contingencies

Leases. The Company adopted ASC Topic 842, “Leases” electing the transition method which permits entities to change the date of initial application to the beginning of the year of adoption and to recognize the effects of applying the new standard as a cumulative-effect adjustment to the opening balance of retained earnings. The Company elected this transition approach, however the cumulative impact of adoption in the opening balance of retained earnings as of January 1, 2020 was zero. Therefore, as of June 30, 2021 the Company had right-of-use assets totaling $236,000 included in other noncurrent assets and operating lease liabilities totaling $239,000, $213,000 of which are included in other current liabilities and $26,000 of which are included in other noncurrent liabilities, and as of December 31, 2020 the Company had right-of-use assets totaling $506,000 included in other noncurrent assets and operating lease liabilities totaling $508,000, $430,000 of which are included in other current liabilities and $78,000 of which are included in other noncurrent liabilities on the accompanying condensed consolidated balance sheets. The Company does not currently have any finance right-of-use leases. Maturities of the operating lease obligations are as follows (in thousands):

	June 30, 2021
Remainder of 2021	$	164
2022		79
Total lease payments		243
Less present value discount		(4	)
Present value of lease liabilities	$	239

Legal actions. From time to time, the Company may be a party to various proceedings and claims incidental to its business. While many of these matters involve inherent uncertainty, the Company believes that the amount of the liability, if any, ultimately incurred with respect to these proceedings and claims will not have a material adverse effect on the Company's consolidated financial position as a whole or on its liquidity, capital resources or future annual results of operations. The Company records reserves for contingencies when information available indicates that a loss is probable, and the amount of the loss can be reasonably estimated.

Indemnifications. The Company has agreed to indemnify its directors, officers and certain employees and agents with respect to claims and damages arising from acts or omissions taken in such capacity, as well as with respect to certain litigation.

Environmental. Environmental expenditures that relate to an existing condition caused by past operations and that have no future economic benefits are expensed. Environmental expenditures that extend the life of the related property or mitigate or prevent future environmental contamination are capitalized. Liabilities for expenditures that will not qualify for capitalization are recorded when environmental assessment and/or remediation is probable, and the costs can be reasonably estimated. Such liabilities are undiscounted unless the timing of cash payments for the liability is fixed or reliably determinable. Environmental liabilities normally involve estimates that are subject to revision until settlement or remediation occurs.

Salt-Water Disposal Commitments. The Company has committed to deliver a total of 3.0 MMBbl of produced water for disposal with a third-party salt-water disposal company between July 24, 2020 and July 24, 2022. As of June 30, 2021, the Company has delivered approximately 1.7 MMBbl under the agreement. The agreement requires a payment for any volumes not delivered should the Company not perform under the agreement, indicating a remaining monetary commitment of approximately $603,000 as of June 30, 2021.

Crude Oil Delivery Commitments. In May 2021, the Company entered into a crude oil marketing contract with Lion as the purchaser and DKL Permian Gathering, LLC (“DKL”) as the gatherer and transporter. The contract includes the Company’s current and future crude oil production from its horizontal wells in Flat Top where DKL will construct an oil gathering system and custody transfer meters to all the Company’s central tank batteries. The contract contains a minimum volume commitment commencing October 2021 based on the gross barrels delivered at the Company’s central tank battery facilities and is 5,000 Bopd for the first year, 7,500 Bopd for the second year and 10,000 Bopd for the remaining eight years of the contract. However, the Company has the ability under the contract to cumulatively bank excess volumes delivered to offset future minimum volume commitments. The monetary commitment as of June 30, 2021, if the Company never delivers any volumes under the agreement, is approximately $25.4 million.

Natural gas purchasing replacement contract. In May 2021, the Company entered into a replacement natural gas purchase contract with WTG Gas Processing, L.P. (“WTG”) as the gatherer, processor and purchaser of the Company’s current and future gross natural gas production in Flat Top. The replacement contract provides the Company with improved natural gas and NGL pricing and requires WTG to expand its current low-pressure gathering system, which eliminates the need for in-field compression in Flat Top to accommodate the Company’s increased natural gas production volumes based on the current plan of development. In exchange for the improved pricing terms and expansion of the gathering system, the Company will provide WTG with certain aid-in-construction payments. The replacement contract does not contain any minimum volume commitments.

Power contracts. In June 2021, the Company entered into a contract with Priority Power Management, LLC (“Priority Power”) whereby Priority Power will develop an electric high-voltage (“EHV”) substation, medium voltage distribution systems and a 13-megawatt direct current solar photovoltaic facility located on approximately 80 acres of land owned by the Company north of Big Spring, Texas in Howard County to provide for the Company’s electrical power needs in its Flat Top operating area including powering drilling rigs and day-to-day operations. The EHV substation will be interconnected with the ERCOT transmission grid via the local electric utility, have an initial capacity of up to 50 megavolt amperes and be designed for future expansion capability. The solar generation facility will be interconnected with the medium voltage distribution system that will be energized from the new EHV substation. Priority Power will develop, finance, engineer, construct, operate and maintain the project facilities.

Also in June 2021, the Company entered into a contract with Oncor Electric Delivery Company, LLC (“Oncor”) to construct certain facilities to deliver electricity to the aforementioned substation. In conjunction with this contract, the Company issued a $1.9 million letter of credit to Oncor until such time as the Company’s load meets or exceeds 12 megawatts as measured during any fifteen (15) minute interval on or before May 20, 2023.

NOTE 9. Commitments and Contingencies

Leases. The Company adopted ASC Topic 842, “Leases” electing the transition method which permits entities to change the date of initial application to the beginning of the year of adoption and to recognize the effects of applying the new standard as a cumulative-effect adjustment to the opening balance of retained earnings. The Company elected this transition approach, however the cumulative impact of adoption in the opening balance of retained earnings as of January 1, 2020 was zero. Therefore, as of December 31, 2020 the Company had operating right-of-use assets totaling $506,000 included in other noncurrent assets and operating lease liabilities totaling $508,000, $430,000 of which is included in other current liabilities and $78,000 is included in other noncurrent liabilities on the accompanying consolidated balance sheet. The Company does not currently have any finance right-of-use leases. Maturities of the operating lease obligations are as follows (in thousands):

	Successor
	December 31, 2020
2021	$	439
2022		79
Total lease payments		518
Less present value discount		(10	)
Present value of lease liabilities	$	508

Indemnifications. The Company has agreed to indemnify its directors and certain of its officers, employees and agents with respect to claims and damages arising from acts or omissions taken in such capacity, as well as with respect to certain litigation.

Salt-Water Disposal Commitments. The Company has committed to deliver a total of 5.5 MMBbl of produced water for disposal with two different third-party salt-water disposal companies, including 2.5 MMBbl between September 30, 2020 and September 30, 2021 and 3.0 MMBbl between July 24, 2020 and July 24, 2022. As of December 31, 2020, the Company delivered approximately 0.7 MMBbl and 0.7 MMBbl, respectively under the two agreements. Both agreements require a payment for any volumes not delivered should the Company not perform under the agreements, indicating a monetary commitment of approximately $1.8 million as of December 31, 2020. Given the current production levels coupled with the wells planned to come on production in 2021, the Company expects to meet the volume commitments under these agreements.

Note 11 - Related Party Transactions

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes to Financial Statements

NOTE 11. Related Party Transactions

General and Administrative Expenses. The general partner of HPK LP utilized HighPeak Energy Management, LLC (the “Management Company”) to provide services and assistance to conduct, direct and exercise full control over the activities of HPK LP per its Partnership Agreement. However, the Management Company is funded via payments from the parent companies of HighPeak I and HighPeak II pursuant to their respective Limited Partnership Agreements, as amended. Therefore, HPK LP reimbursed the parent companies of HighPeak I and HighPeak II for actual costs incurred by the Management Company. During the six months ended June 30, 2020, HPK LP paid $3.8 million each to the parent companies of HighPeak I and HighPeak II of which $4.1 million is included in general and administrative expenses in the accompanying results of operations for the six months ended June 30, 2020. Effective upon closing of the HighPeak business combination, the Management Company is no longer being paid by the Company as all costs directly attributable to the Company are paid by the Company going forward.

NOTE 10. Related Party Transactions

HPK LP Business Combination. Effective October 1, 2019, HighPeak I and HighPeak Energy II, LP (“HighPeak II”) contributed cash and wholly owned subsidiaries, HighPeak Energy Assets, LLC, HighPeak Assets II, LLC and HighPeak Energy Holdings, LLC to HPK LP in return for limited partnership interest in HPK LP. Subsequent to the HPK LP business combination referenced in the preceding sentence and in 2019, HighPeak I contributed an additional $805,000 and HighPeak II contributed an additional $25.8 million in cash to HPK LP. During the period from January 1, 2020 through August 21, 2020, HighPeak II contributed an additional $54.0 million in cash to HPK LP. Also, during the period from January 1, 2020 through August 21, 2020, HPK LP made distributions to HighPeak I and HighPeak II of $2.8 million in total. Therefore, just prior to the HighPeak business combination which closed on August 21, 2020, HighPeak I and HighPeak II owned approximately 51.9% and 48.1% of HPK LP, respectively.

Since HighPeak I is the predecessor to HPK LP, its consolidated statement of operations and consolidated statement of cash flows for the nine months ended September 30, 2019 have been included in the accompanying financial statements for comparative purposes. However, HighPeak II’s results of operations are significant and as such HighPeak II’s consolidated statement of operations is shown below for additional comparative and informational purposes (in thousands).

	Nine Months Ended September 30, 2019
Operating Revenues:
Crude oil sales	$	719
Natural gas and natural gas liquid sales		223
Total operating revenues		942
Operating costs and expenses:
Oil and natural gas production		1,190
Production and ad valorem taxes		59
Exploration and abandonment		756
Depletion, depreciation and amortization		650
Accretion of discount on asset retirement obligations		86
General and administrative		2,891
Abandoned project		1,122
Total operating costs and expenses		6,754
Loss from operations		(5,812	)
Interest income		107
Net loss	$	(5,705	)

HighPeak Business Combination. On August 21, 2020, the Company completed the HighPeak business combination between the Company, Pure, HPK LP, HighPeak I, and HighPeak II. HighPeak I and HighPeak II contributed their partnership interests in HPK LP to the Company in return for 76,383,054 shares of publicly traded common stock of the Company. The table below shows the construction of the beginning balance sheet of the Company on August 22, 2020 upon the closing of the HighPeak business combination (in thousands).

	(a)			(b)			(c)		(d)			(e)			(f)
	HPK LP			Pure			HighPeak Employees, Inc.		Issuance of HighPeak Energy Common Stock			Cash Offering Costs			Deferred Tax Liability			Beginning Balance Sheet on August 22, 2020
Cash and cash equivalents	$	1,943		$	1		$	99	$	92,554		$	(8,114	)	$	-		$	86,483
Accounts receivable		3,001			-			26		-			-			-			3,027
Total current assets		4,944			1			125		92,554			(8,114	)		-			89,510
Total oil and gas properties, net		452,039			-			-		-			-			-			452,039
Other property and equipment, net		436			-			-		-			-			-			436
Total assets	$	457,419		$	1		$	125	$	92,554		$	(8,114	)	$	-		$	541,985
Current liabilities	$	35,794		$	2,025		$	77	$	(9,538	)	$	-		$	-		$	28,358
Deferred income tax liability		-			-			-		-			-			39,946			39,946
Notes payable (receivable)		(11,675	)		11,675			-		-			-			-			-
Asset retirement obligations		2,398			-			-		-			-			-			2,398
Partners' capital		521,682			-			-		(521,682	)		-			-			-
Common stock		-			-			-		9			-			-			9
Additional paid-in capital		-			(13,699	)		48		623,765			(8,114	)		(39,946	)		562,054
Accumulated deficit		(90,780	)		-			-		-			-			-			(90,780	)
Total stockholders' equity/partner's capital		430,902			(13,699	)		48		102,092			(8,114	)		(39,946	)		471,283
Total liabilities and stockholders' equity/partners' capital	$	457,419		$	1		$	125	$	92,554		$	(8,114	)	$	-		$	541,985

	(a)	Represents HPK LP’s condensed consolidated balance sheet estimated as of August 21, 2020.
	(b)	Represents Pure’s condensed consolidated balance sheet estimated as of August 21, 2020 after taking into account: (i) the closing of its trust account, (ii) the redemption of Pure’s Class A Common Stock by the former public stockholders of Pure that elected to redeem, (iii) paying out the cash consideration to those former public stockholders of Pure who elected to remain and (iv) the conversion of the remaining shares of Pure’s Class A Common Stock to HighPeak Energy common stock upon the closing of the HighPeak business combination. The $13.7 million reduction to equity is considered noncash offering costs on the condensed consolidated statement of changes in stockholders’ equity.
	(c)	Represents the balance sheet of HighPeak Energy Employees, Inc which was acquired by the Company for $10.00 upon the closing of the HighPeak business combination.
	(d)	Represents the issuance by the Company of 91,592,354 shares of common stock, 10,538,183 warrants and 10,209,300 Contingent Value Rights upon the closing of the HighPeak business combination. The reduction to accounts payable of $9.5 million represents those vendors of HPK LP that purchased shares under the Forward Purchase Agreement Amendment in the HighPeak business combination in lieu of being paid cash for the majority of their outstanding balances.
	(e)	Represents the cash costs paid for the offering of the aforementioned shares in addition to the cash costs that had previously been incurred by Pure of $13.7 million in column (b).
	(f)	Represents the beginning deferred tax liability of the Company given the combination of all the entities, most of which originated from HPK LP which was a partnership for U.S. federal income tax purposes and therefore did not record a deferred tax liability.

Pursuant to the Business Combination Agreement, among other things, (a) MergerSub merged with and into Pure, with Pure surviving as a wholly owned subsidiary of the Company, (b) each outstanding share of Pure’s Class A Common Stock and Pure’s Class B Common Stock (other than certain shares of Pure’s Class B Common Stock that were surrendered for cancellation by Pure’s Sponsor) were converted into the right to receive (A) one share of HighPeak Energy common stock (and cash in lieu of fractional shares), and (B) solely with respect to each outstanding share of Pure’s Class A Common Stock, (i) a cash amount, without interest, equal to $0.62, which represented the amount by which the per-share redemption value of Pure’s Class A Common Stock that exceeded $10.00 per share at the closing, without interest, in each case, totaling approximately $767,902, (ii) one CVR for each one whole share of HighPeak Energy common stock (excluding fractional shares) issued to holders of Pure’s Class A Common Stock pursuant to clause (A), representing the right to receive additional shares of HighPeak Energy common stock (or such other specified consideration as is specified with respect to certain events) under certain circumstances, if necessary, to satisfy a 10% preferred simple annual return, subject to a floor downside per-share price of $4.00, as measured at the applicable maturity, which will occur on a date to be specified and which may be any date occurring during the period beginning on (and including) August 21, 2022 and ending on (and including) February 21, 2023, or in certain circumstances after the occurrence of certain change of control events with respect to the Company’s business, including certain mergers, consolidations and asset sales (with an equivalent number of shares of HighPeak Energy common stock held by HighPeak I and HighPeak II being collectively forfeited) and (iii) one warrant to purchase HighPeak Energy common stock for each one whole share of HighPeak Energy common stock (excluding fractional shares) issued to holders of Pure’s Class A Common Stock pursuant to clause (A), (c) the HPK Contributors (A) contributed their limited partner interests in HPK LP to the Company in exchange for HighPeak Energy common stock and the general partner interests in HPK LP to a wholly owned subsidiary of the Company in exchange for no consideration, and (B) contributed the outstanding Sponsor Loans (as defined in the Business Combination Agreement) in exchange for HighPeak Energy common stock and such Sponsor Loans were cancelled in connection with the closing of the HighPeak business combination and (d) following the consummation of the foregoing transactions, the Company caused HPK LP to merge with and into the Surviving Corporation (as successor to Pure) and all interests in HPK LP were cancelled in exchange for no consideration.

HighPeak I and HighPeak II collectively received 76,383,054 shares of HighPeak Energy common stock pursuant to the Business Combination Agreement. Further, certain of the Company’s executive officers and directors received the consideration provided by the HighPeak business combination through their ownership of Pure’s Class A Common Stock. Steven W. Tholen, the Company’s Chief Financial Officer received 5,000 shares of HighPeak Energy common stock, 5,000 CVRs and 5,000 warrants in exchange for shares of Pure’s Class A Common Stock owned by him prior to the HighPeak business combination. Michael L. Hollis, the Company’s President and member of the Company’s board of directors (the “Board”), received 16,802 shares of HighPeak Energy common stock, 16,802 CVRs and 20,382 warrants in exchange for shares of Pure’s Class A Common Stock and Pure’s warrants, respectively, owned by him prior to the HighPeak business combination. Further, Rodney L. Woodard, the Chief Operating Officer of the Company, received 14,000 shares of HighPeak Energy common stock, 14,000 CVRs and 14,000 warrants in exchange for shares of Pure’s Class A Common Stock and Pure’s warrants, respectively, owned by him prior to the HighPeak business combination.

Unaudited Pro Forma Operating Results. The following unaudited pro forma combined financial information has been prepared as if the HighPeak business combination and the HPK LP business combination had taken place on January 1, 2019. The unaudited pro forma consolidated financial information has been prepared using the reverse merger business combination method of accounting in accordance with GAAP. The information reflects pro forma adjustments based on available information and certain assumptions that the Company believes are reasonable and the estimated tax impacts of the pro forma adjustments.

The pro forma condensed combined financial information has been included for comparative purposes and is not necessarily indicative of the results that might have actually occurred had the business combinations taken place on January 1, 2019; furthermore, the financial information is not intended to be a projection of future results (in thousands, except per share amounts).

	(Unaudited Pro Forma) Year Ended December 31,
	2020			2019
Total revenues	$	24,623		$	9,057
Net income attributable to Common Stock		(23,310	)		(8,838	)
Basic and diluted net loss per share		(0.25	)		(0.10	)

Contingent Value Rights. At the closing of the HighPeak business combination, the Company entered into the Contingent Value Rights Agreement (the “CVR Agreement”) by and among, the Company, Pure’s Sponsor, HighPeak I, HighPeak II (together with HighPeak I, the “CVR Sponsors”) and Continental Stock Transfer & Trust Company, in its capacity as Rights Agent (the “Rights Agent”) whereby it issued 10,209,300 CVRs. The CVR Agreement provides for, among other things, the CVRs, which represent contractual rights to receive a contingent payment (in the form of additional shares of HighPeak Energy common stock, or as otherwise specified in the CVR Agreement) in certain circumstances that were issued to the holders of shares of Pure’s Class A Common Stock that participated in the HighPeak business combination and certain qualified institutional buyers and accredited investors, including certain affiliates and officers of the Company, that purchased forward purchase units of the Company pursuant to the Forward Purchase Agreement Amendment (as defined below). Pursuant to the CVR Agreement, holders of CVRs in whose name a CVR is registered in the CVR registrar maintained by the Rights Agent at any date of determination are being provided with a significant valuation protection through the opportunity to obtain additional contingent consideration in the form of additional shares of HighPeak Energy common stock if the trading price of HighPeak Energy’s common stock is below the price that would provide the holders of CVRs with a 10% preferred simple annual return on their shares of common stock held at Closing (based on a $10.00 per share price at the closing of the HighPeak business combination), subject to a floor downside per-share price of $4.00 (the “Preferred Returns”), either at (i) the date to be specified by the CVR Sponsors, which may be any date occurring during the period beginning on (and including) August 21, 2022 and ending on (and including) February 21, 2023, or (ii) in certain circumstances, the occurrence of certain change of control events with respect to the Company’s business, including certain mergers, consolidation and asset sales. If any additional shares of HighPeak Energy common stock are issued to Qualifying CVR Holders (as defined in the CVR Agreement) pursuant to the CVR Agreement, the CVR Sponsors will collectively forfeit an equivalent number of shares they own that are currently in escrow to the Company for cancellation. The Preferred Returns could entitle a Qualifying CVR Holder to receive up to 2.125 shares of HighPeak Energy common stock per CVR. Following the closing, the CVR Sponsors collectively placed 21,694,763 shares in escrow, which equaled the maximum number of additional shares of HighPeak Energy common stock issuable pursuant to the CVR Agreement, which such shares will be released either to the Company for cancellation in connection with the satisfaction of any Preferred Returns or back to the CVR Sponsors, collectively, as applicable, following the maturity date under the CVR Agreement.

Stockholders’ Agreement. At the closing of the HighPeak business combination, Pure’s Sponsor, HighPeak I, HighPeak II, HighPeak III and Jack Hightower (collectively, with each of their respective affiliates and permitted transferees, the “Principal Stockholder Group”), on the one hand, and the Company, on the other hand, entered into a Stockholders’ Agreement (the “Stockholders’ Agreement”), which governs certain rights and obligations following the HighPeak business combination. Under the Stockholders’ Agreement, the Principal Stockholder Group will be entitled, based on its percentage ownership of the total amount of HighPeak Energy common stock issued and outstanding immediately following the closing (the “Original Shares”) and provided that the Original Shares constitute not less than the percentage of the then outstanding total voting securities of the Company set forth below, to nominate a number of directors for appointment to the Board as follows:

●

for so long as (i) the Principal Stockholder Group beneficially owns at least 35% of the Original Shares and (ii) the Original Shares constitute at least 30% of the Company’s then-outstanding voting securities, the Principal Stockholder Group can designate up to four (4) nominees, and if the Principal Stockholder Group owns less than 50% of the total outstanding voting securities, at least one nominee shall be independent as defined by applicable listing standards;

	●	for so long as (i) the Principal Stockholder Group beneficially owns less than 35% but at least 25% of the Original Shares and (ii) the Original Shares constitute at least 25% of the Company’s then-outstanding voting securities, the Principal Stockholder Group can designate up to three (3) nominees;
	●	for so long as (i) the Principal Stockholder Group beneficially owns less than 25% but at least 15% of the Original Shares and (ii) the Original Shares constitute at least 15% of the Company’s then-outstanding voting securities, the Principal Stockholder Group can designate up to two (2) nominees; and
	●	if (i) the Principal Stockholder Group beneficially owns less than 15% but at least 5% of the Original Shares and (ii) the Original Shares constitute at least 7.5% of the Company’s then-outstanding voting securities, the Principal Stockholder Group can designate one (1) nominee.

If at any time the Principal Stockholder Group owns less than 5% of the Original Shares or the Original Shares constitute less than 7.5% of the Company’s then-outstanding voting securities, it will cease to have any rights to designate individuals for nomination to the Board.

For so long as the Principal Stockholder Group has the right to designate at least one director for nomination under the Stockholders’ Agreement, the Company will take all Necessary Action (as defined therein) to ensure that the number of directors serving on the Board shall not exceed seven (7). For so long as the Principal Stockholder Group owns a number of shares of HighPeak Energy common stock equal to at least (i) 20% of the Original Shares and (ii) 7.5% of the then-outstanding voting securities of the Company, the Company and the Principal Stockholder Group shall have the right to have a representative appointed to serve on each committee of the Board (other than the audit committee) for which any such representative is eligible pursuant to applicable laws and the Nasdaq. For so long as the Principal Stockholder Group has the right to designate one or more individuals for nomination to the Board, the Principal Stockholder Group shall have the right to appoint one (1) non-voting observer to the Board.

The Stockholders’ Agreement also includes customary restrictions on the transfer of equity securities to certain persons acquiring beneficial ownership. Pursuant to the Stockholders’ Agreement, the Principal Stockholder Group will agree not to transfer, directly or indirectly, any equity securities of the Company for a period of 180 days after the Closing, subject to certain customary exceptions. The Stockholders’ Agreement will terminate as to each stockholder upon the time at which the Principal Stockholder Group no longer has the right to designate an individual for nomination to the Board under the Stockholders’ Agreement and as to a member of the Principal Stockholder Group that no longer owns any of the Original Shares.

Registration Rights Agreement. At the closing of the HighPeak business combination, the Company entered into the Registration Rights Agreement (the “Registration Rights Agreement”), by and among the Principal Stockholder Group and certain other security holders named therein, pursuant to which the Company will be obligated, subject to the terms thereof and in the manner contemplated thereby, to register for resale under the Securities Act of 1933, as amended (the “Securities Act”) all or any portion of the shares of HighPeak Energy common stock that the holders named thereto hold as of the date of such agreement and that they may acquire thereafter, including upon the conversion, exchange or redemption of any other security therefor (the “Registrable Securities”). The Company has agreed to file and cause to become effective a registration statement covering the Registrable Securities held by such holder making a demand for registration, provided that no fewer than the amount of Registrable Securities representing the lesser of (i) $25 million or (ii) all Registrable Securities owned by such holder, as applicable, are covered under the holder’s demand for registration. The holders can submit a request beginning immediately after the HighPeak business combination. Under the Registration Rights Agreement, the holders also have “piggyback” registration rights exercisable at any time that allow them to include the shares of HighPeak Energy common stock that they own in certain registrations initiated by the Company, provided that such holder elects to include its Registrable Securities in an amount not less than $5 million. Subject to customary exceptions, holders will also have the right to request one or more underwritten offerings of Registrable Securities, provided, that, they hold at least $5 million in Registrable Securities and each such offering include a number of Registrable Securities equal to the lesser of (i) $25 million and (ii) all of the Registrable Securities owned by such holders as of the date of the request. In the event that the sale of registered securities under a registration statement would require disclosure of certain material non-public information not otherwise required to be disclosed, the Company may postpone the effectiveness of the applicable registration statement or require the suspension of sales thereunder. The Company may not delay or suspend a registration statement on more than two (2) occasions for more than sixty (60) consecutive calendar days or more than ninety (90) total calendar days, in each case, during any twelve (12) month period.

Forward Purchases. In connection with the closing of the HighPeak business combination, the Company also issued shares of HighPeak Energy common stock, warrants and CVRs (the “Forward Purchases”) to certain qualified institutional buyers and accredited investors (the “Forward Purchase Investors”) pursuant to that certain Amended & Restated Forward Purchase Agreement, dated as of July 24, 2020 (the “Forward Purchase Agreement Amendment”), by and among the Company, each party designated as a purchaser therein (including purchasers that subsequently joined prior to the closing of the HighPeak business combination as parties thereto), HighPeak Energy Partners, LP, and, solely for the limited purposes specified therein, Pure.

Prior to the closing of the HighPeak business combination, and subsequent to the Company’s entry into the Forward Purchase Agreement Amendment, an aggregate of 8,976,875 forward purchase units (with each forward purchase unit consisting of one share of HighPeak Energy common stock, one warrant and one CVR), for aggregate consideration of approximately $89.8 million in a private placement pursuant to the Assignment and Joinder agreements under and pursuant to the Forward Purchase Agreement Amendment. The proceeds from the Forward Purchases were used to fund a portion of the minimum equity consideration condition to closing required to effect the HighPeak business combination pursuant to the Business Combination Agreement.

General and Administrative Expenses. The general partner of HPK LP utilized HighPeak Energy Management, LLC (the “Management Company”) to provide services and assistance to conduct, direct and exercise full control over the activities of HPK LP per its Partnership Agreement. However, the Management Company is funded via payments from the parent companies of HighPeak I and HighPeak II pursuant to their respective Limited Partnership Agreements, as amended. Therefore, HPK LP reimbursed the parent companies of HighPeak I and HighPeak II for actual costs incurred by the Management Company. During the period from January 1, 2020 through August 21, 2020, HPK LP paid $2.4 million each to the parent companies of HighPeak I and HighPeak II of which $4.7 million is included in general and administrative expenses in the accompanying results of operations for the period from January 1, 2020 through August 21, 2020. Effective upon closing of the HighPeak business combination, the Management Company will no longer be paid by the Company as all costs directly attributable to the Company will be paid by the Company going forward.

In October 2020, the Company paid G4 Companies, LLC, a company wholly owned by a director of the Company, $1.5 million for the design of a full-scale model for a water recycle and purification treatment facility that the Company plans to construct in our development area to handle produced water in an environmentally friendly manner. Phase I and II water testing has already been completed to ascertain the viability of such a system. The timing of the construction of the facility is still under review and consideration.

Note 12 - Major Customers

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

NOTE 12. Major Customers

Lion Oil Trading and Transportation, LLC (“Lion”) accounted for approximately 95% of the Company’s revenues during the six months ended June 30, 2021. Enlink Crude Purchasing, LLC and Lion accounted for approximately 76% and 16%, respectively, of the Company’s revenues during the six months ended June 30, 2020. Based on the current demand for oil and natural gas and the availability of other purchasers, management believes the loss of these major purchasers would not have a material adverse effect on our financial condition and results of operations because crude oil and natural gas are fungible products with well-established markets and numerous purchasers.

NOTE 11. Major Customers

Lion Oil Trading and Transportation, LLC purchased approximately 98% of the Company’s crude oil, natural gas and natural gas liquids during the period from August 22, 2020 through December 31, 2020. Lion Oil Trading and Transportation, LLC and Enlink Crude Purchasing, LLC purchased approximately 49% and 44%, respectively, of the Company’s crude oil, natural gas and natural gas liquids during the period from January 1, 2020 through August 21, 2020. Based on the current demand for oil and natural gas and the availability of other purchasers, management believes the loss of these major purchasers would not have a material adverse effect on our financial condition and results of operations because crude oil and natural gas are fungible products with well-established markets and numerous purchasers.

Note 13 - Income Taxes

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE 13. Income Taxes

The Company’s income tax expense attributable to income from operations consisted of the following (in thousands):

	Six Months Ended June 30, 2021
Current tax expense	$	-
Deferred tax expense		2,535
Income tax expense	$	2,535

The reconciliation between the income tax expense computed by multiplying pre-tax income by the U.S. federal statutory rate and the reported amounts of income tax expense is as follows (in thousands, except rate):

	Six Months Ended June 30, 2021
Income tax expense at U.S. federal statutory rate	$	2,735
Limited tax benefit due to stock-based compensation		(81	)
Other		(119	)
Income tax expense	$	2,535
Effective income tax rate		19.5	%

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities were as follows as of June 30, 2021 and December 31, 2020 (in thousands):

	June 30, 2021			December 31, 2020
Deferred tax assets:
Net operating loss carryforwards	$	16,770		$	9,725
Stock-based compensation		3,419			3,124
Unrecognized derivative losses		2,637			-
Other		107			31
Less: Valuation allowance		-			-
Net deferred tax assets		22,933			12,880
Deferred tax liabilities:
Oil and natural gas properties, principally due to differences in basis and depreciation and the deduction of intangible drilling costs for tax purposes		(64,365	)		(51,778	)
Net deferred tax liabilities	$	(41,432	)	$	(38,898	)

The effective income tax rate differs from the U.S. statutory rate of 21 percent primarily due to permanent differences between GAAP income and taxable income. Periods prior to August 22, 2020 are not shown because the Predecessors were treated as partnerships for U.S. federal income tax purposes and therefore do not record a provision for U.S. federal income tax because the partners of the Predecessors report their share of the Predecessors’ income or loss on their respective income tax returns. The Predecessors are required to file tax returns on Form 1065 with the IRS. The 2017 through 2020 tax years remain open to examination.

As required by ASC Topic 740, “Income Taxes,” (“ASC 740”) the Company uses reasonable judgments and makes estimates and assumptions related to evaluating the probability of uncertain tax positions. The Company bases its estimates and assumptions on the potential liability related to an assessment of whether the income tax position will “more likely than not” be sustained in an income tax audit. Based on that analysis, the Company believes the Company has not taken any material uncertain tax positions, and therefore has not recorded an income tax liability related to uncertain tax positions. However, if actual results materially differ, the Company’s effective income tax rate and cash flows could be affected in the period of discovery or resolution. The Company also reviews the estimates and assumptions used in evaluating the probability of realizing the future benefits of the Company’s deferred tax assets and records a valuation allowance when the Company believes that a portion or all the deferred tax assets may not be realized. If the Company is unable to realize the expected future benefits of its deferred tax assets, the Company is required to provide a valuation allowance. The Company uses its history and experience, overall profitability, future management plans, tax planning strategies, and current economic information to evaluate the amount of valuation allowance to record. As of June 30, 2021 and December 31, 2020, the Company has not recorded a valuation allowance for deferred tax assets arising from its operations because the Company believes they meet the “more likely than not” criteria as defined by the recognition and measurement provisions of ASC 740. However, the Company may not realize the $22.9 million and $12.9 million in deferred tax assets it has as of June 30, 2021 and December 31, 2020, respectively, if the estimates and assumptions used in evaluating the probability of realizing the future benefits of the Company's deferred tax assets change, which would affect the Company’s effective income tax rate and cash flows in the period of discovery or resolution.

The Company is also subject to Texas Margin Tax. The Company realized no Texas Margin Tax in the accompanying condensed consolidated and combined financial statements as we do not anticipate owing any Texas Margin Tax for any 2021.

NOTE 12. Income Taxes

On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief and Economic Security Act ("CARES Act"). The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. The Company continues to examine how the CARES Act may impact its business, results of operations, financial condition and liquidity.

The Company’s income tax expense (benefit) attributable to income (loss) from operations consisted of the following(in thousands):

	August 22, 2020 through December 31, 2020
Current tax benefit	$	(3,176	)
Deferred tax benefit		(1,047	)
Income tax benefit	$	(4,223	)

The reconciliation between the income tax expense (benefit) computed by multiplying pre-tax income (loss) by the U.S. federal statutory rate and the reported amounts of income tax expense (benefit) is as follows (in thousands, except rate):

	August 22, 2020 through December 31, 2020
Income tax expense (benefit) at U.S. federal statutory rate	$	(4,337	)
Limited tax benefit due to stock-based compensation		127
Other		(13	)
Income tax expense (benefit)	$	(4,223	)
Effective income tax rate		20.4	%

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities were as follows as of December 31, 2020 (in thousands):

	December 31, 2020
Deferred tax assets:
Net operating loss carryforwards	$	9,725
Stock-based compensation		3,124
Other		31
Less: Valuation allowance		-
Net deferred tax assets		12,880

Deferred tax liabilities:
Oil and natural gas properties, principally due to differences in basis and depreciation and the deduction of intangible drilling costs for tax purposes		(51,778	)
Net deferred tax liabilities	$	(38,898	)

As required by ASC Topic 740, “Income Taxes,” (“ASC 740”) the Company uses reasonable judgments and makes estimates and assumptions related to evaluating the probability of uncertain tax positions. The Company bases its estimates and assumptions on the potential liability related to an assessment of whether the income tax position will “more likely than not” be sustained in an income tax audit. Based on that analysis, the Company believes the Company has not taken any material uncertain tax positions, and therefore has not recorded an income tax liability related to uncertain tax positions. However, if actual results materially differ, the Company’s effective income tax rate and cash flows could be affected in the period of discovery or resolution. The Company also reviews the estimates and assumptions used in evaluating the probability of realizing the future benefits of the Company’s deferred tax assets and records a valuation allowance when the Company believes that a portion or all the deferred tax assets may not be realized. If the Company is unable to realize the expected future benefits of its deferred tax assets, the Company is required to provide a valuation allowance. The Company uses its history and experience, overall profitability, future management plans, tax planning strategies, and current economic information to evaluate the amount of valuation allowance to record. As of December 31, 2020, the Company has not recorded a valuation allowance for deferred tax assets arising from its operations because the Company believes they meet the “more likely than not” criteria as defined by the recognition and measurement provisions of ASC 740. However, the Company may not realize the $12.9 million in deferred tax assets it has as of December 31, 2020 if the estimates and assumptions used in evaluating the probability of realizing the future benefits of the Company's deferred tax assets change, which would affect the Company’s effective income tax rate and cash flows in the period of discovery or resolution.

On December 27, 2020, President Trump signed into law the Consolidated Appropriations Act, an omnibus spending bill to fund the federal government that also includes an array of COVID-related tax relief for individuals and businesses. The tax-related measures contained in the Act revise and expand provisions enacted earlier in the year by the Families First Coronavirus Response Act and the CARES Act. The Act also extends a number of expiring tax provisions. Additionally, the Act provides for a 100% deduction for certain business meals incurred in calendar years 2021 and 2022, which are currently deductible at 50% for years ending December 31, 2020. The Company determined that income tax effects related to the passage of the Consolidated Appropriations Act were not material to the financial statements for the year ended December 31, 2020.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

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-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Note 14 - Earnings Per Share

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE 14. Earnings Per Share

The Company uses the two-class method of calculating earnings per share because certain of the Company’s stock-based awards qualify as participating securities.

The Company’s basic earnings per share attributable to common stockholders is computed as (i) net income as reported, (ii) less participating basic earnings (iii) divided by weighted average basic common shares outstanding. The Company’s diluted earnings per share attributable to common stockholders is computed as (i) basic earnings attributable to common stockholders, (ii) plus reallocation of participating earnings (iii) divided by weighted average diluted common shares outstanding.

The following table reconciles the Company’s earnings from operations and earnings attributable to common stockholders to the basic and diluted earnings used to determine the Company’s earnings per share amounts for the three and six months ended June 30, 2021 under the two-class method (in thousands):

	Three			Six
	Months Ended			Months Ended
	June 30,			June 30,
	2021			2021
Net income as reported	$	5,743		$	10,487
Participating basic earnings (a)		(407	)		(743	)
Basic earnings attributable to common stockholders		5,336			9,744
Reallocation of participating earnings		-			1
Diluted net income attributable to common stockholders	$	5,336		$	9,745

Basic weighted average shares outstanding		92,676			92,634
Dilutive warrants and unvested stock options		-			196
Diluted weighted average shares outstanding		92,676			92,830

(a)

Unvested restricted stock awards represent participating securities because they participate in nonforfeitable dividends with the common equity holders of the Company. Vested stock options represent participating securities because they participate in dividend equivalents with the common equity holders of the Company. Participating earnings represent the distributed and undistributed earnings of the Company attributable to the participating securities. Unvested stock options do not represent participating securities because, while they participate in dividend equivalents with the common equity holders of the Company, the dividend equivalents associated with unvested stock options are forfeitable in connection with the forfeitability of the underlying stock options.

The calculation for weighted average shares reflects shares outstanding over the reporting period based on the actual number of days the shares were outstanding.

NOTE 13. Earnings (Loss) Per Share

The Company uses the two-class method of calculating earnings (loss) per share because certain of the Company’s unvested stock-based awards qualify as participating securities.

The Company’s basic earnings (loss) per share attributable to common stockholders is computed as (i) net income (loss) as reported attributable to common stockholders, (ii) less participating basic earnings (iii) divided by weighted average basic common shares outstanding. The Company’s diluted earnings (loss) per share attributable to common stockholders is computed as (i) basic earnings (loss) attributable to common stockholders, (ii) plus reallocation of participating earnings (iii) divided by weighted average diluted shares outstanding. The components of basic and diluted earnings (loss) per share attributable to common stockholders are as follows (in thousands):

	Successor
	August 22, through December 31, 2020
Net income (loss) attributable to common stockholders	$	(16,429	)
Participating share-based earnings (a)		-
Basic and diluted net income (loss) attributable to common stockholders	$	(16,429	)

Basic weighted average shares outstanding		91,629
Dilution attributable to stock-based compensation awards		-
Diluted weighted average shares outstanding		91,629

(a)

Participating earnings represent the distributed and undistributed earnings of the Company attributable to the participating securities. Unexercised stock option awards do not participate in undistributed net losses as they are not contractually obligated to do so.

The calculation for weighted average shares reflects shares outstanding over the reporting period based on the actual number of days the shares were outstanding. The Company excluded 10,225,472 of weighted average shares of common stock issuable upon the conversion of the warrants for the period from August 22, 2020 through December 31, 2020 as the effect was anti-dilutive.

Note 15 - Stockholders' Equity (Successor)

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

NOTE 15. Stockholders’ Equity (Successor)

At June 30, 2021 and December 31, 2020, the Company had 92,728,781 and 91,967,565 shares of common stock outstanding, respectively, 9,500,174 and 10,225,472 warrants outstanding, respectively, with an exercise price of $11.50 per share that expire on August 21, 2025 and 10,209,300 and 10,209,300 CVRs outstanding, respectively that give the holders a right to receive up to 2.125 shares of HighPeak Energy common stock per CVR to satisfy the Preferred Returns (with an equivalent number of shares of Company common stock held by HighPeak I and HighPeak II being collectively forfeited in connection therewith). As such, HighPeak I and HighPeak II have placed a total of 21,694,763 shares of common stock of the Company in escrow.

NOTE 14. Stockholders’ Equity (Successor)

At December 31, 2020, the Company has 91,967,565 shares of common stock outstanding, 10,225,472 warrants outstanding with an exercise price of $11.50 per share that expire on August 21, 2025 and 10,209,300 CVRs outstanding that give the holders a right to receive up to 2.125 shares of HighPeak Energy common stock per CVR in order to satisfy the Preferred Returns (with an equivalent number of shares of Company common stock held by HighPeak I and HighPeak II being collectively forfeited in connection therewith). As such, HighPeak I and HighPeak II have placed a total of 21,694,763 shares of common stock of the Company in escrow.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

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-Section 50
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-Name Accounting Standards Codification
-Topic 505
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-Section 50
-Paragraph 18
-Subparagraph (d)
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 505
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-Section 50
-Paragraph 18
-Subparagraph (a)
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-Name Accounting Standards Codification
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+ Details

Note 16 - Partners' Capital (Predecessor)

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes to Financial Statements

Partners' Capital Notes Disclosure [Text Block]

NOTE 16. Partners’ Capital (Predecessor)

Allocation of partner’s net profits and losses. Net income or loss and net gain or loss on investments of the Predecessor for the period are allocated among its partners in proportion to the relative capital contributions made to the Predecessor. The Predecessor realized a net loss of $85.0 million for the six months ended June 30, 2020.

Partner’s distributions. The proceeds distributable by the Predecessor (which shall include all proceeds attributable to the disposition of investments, net of expenses) is distributable in accordance with their respective Partnership Agreements.

NOTE 15. Partners’ Capital (Predecessors)

Allocation of partner’s net profits and losses. Net income or loss and net gain or loss on investments of the Predecessors for the period are allocated among its partners in proportion to the relative capital contributions made to the Predecessors. The Predecessors realized a net loss of $85.0 million for the period from January 1, 2020 through August 21, 2020.

Partner’s distributions. The proceeds distributable by the Predecessors (which shall include all proceeds attributable to the disposition of investments, net of expenses) is distributable in accordance with their respective Partnership Agreements. As of August 21, 2020, the Predecessor had made distributions of $2.8 million prior to closing of the HighPeak business combination.

Note 17 - Subsequent Events

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes to Financial Statements

Subsequent Events [Text Block]

NOTE 17. Subsequent Events

WTG aid-in-construction. In July 2021, the Company paid $3.9 million to WTG related to an aid-in-construction payment pursuant to the aforementioned replacement natural gas purchase contract for WTG to construct a low-pressure natural gas gathering system throughout the Company’s Flat Top area.

Acquisitions. In July 2021, the Company signed multiple unrelated purchase and sale agreements to effect certain bolt-on acquisitions from various third parties. In the aggregate, the assets being acquired represent approximately 6,200 net acres and working interests in producing properties and salt-water disposal wells. The Company expects to close these acquisitions later in the third quarter of 2021.

Dividends and dividend equivalents. In July 2021, the board of directors of the Company approved a quarterly dividend of $0.025 and a special dividend of $0.075 per share of common stock outstanding which resulted in a total of $9.3 million in dividends being paid on July 26, 2021. In addition, under the terms of the LTIP, the Company paid a dividend equivalent per share to all vested stock option holders of $705,000 in July 2021 and will accrue a dividend equivalent per share to all unvested stock option holders which is payable upon vesting of up to an additional $125,000 in each of August 2021 and August 2022, assuming no forfeitures.

NOTE 16. Subsequent Events

Exercises of warrants. Subsequent to December 31, 2020, the Company received proceeds of $9.1 million as a result of the exercise of 788,009 warrants, 312,711 of which were exercised prior to and 475,298 that were exercised subsequent to December 31, 2020. Of the $9.1 million, $3.6 million was the receipt of the subscription receivable recorded as of December 31, 2020. In addition, there were cashless exercises of 250,000 warrants subsequent to December 31, 2020 whereby, the holder converted their 250,000 warrants into 78,767 shares of common stock in accordance with the terms of the warrant agreement, as amended. Therefore, as of March 15, 2020, the Company has 92,675,898 common stock, 9,500,174 warrants and 10,209,300 CVRs issued and outstanding.

Revolving Credit Facility commitment. In March 2021, the Company’s borrowing base and bank commitments under the Revolving Credit Facility were increased to $50 million, subject to finalization of customary documentation.

Note 1 - Organization and Nature of Operations

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes to Financial Statements

Business Description and Basis of Presentation [Text Block]

NOTE 1. Organization and Nature of Operations

HighPeak Energy, Inc. ("HighPeak Energy" the "Company," or the “Successor”) is a Delaware corporation, initially formed in October 2019 as a wholly owned subsidiary of Pure Acquisition Corp (“Pure”), a Delaware corporation, formed in November 2017, which was a special purpose acquisition company for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination involving Pure and one or more businesses. See Note 10 regarding the business combination which resulted in the Company becoming the parent company and Pure to become a wholly owned subsidiary along with the businesses acquired.

HighPeak Energy’s common stock and warrants are listed and traded on the Nasdaq Global Market (the "Nasdaq") under the ticker symbols “HPK” and “HPKEW,” respectively. HighPeak Energy’s Contingent Value Rights (“CVRs”) are currently traded on the Over-The-Counter market, although the Company has applied for listing on the Nasdaq as well. The Company is an independent oil and gas exploration and production company that explores for, develops and produces oil, natural gas liquids and natural gas in the Permian Basin in West Texas.

Note 2 - Basis of Presentation and Summary of Significant Accounting Policy

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes to Financial Statements

Basis of Presentation and Significant Accounting Policies [Text Block]

NOTE 2. Basis of Presentation and Summary of Significant Accounting Policies

Note 3 - Acquisitions

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes to Financial Statements

Acquisitions [Text Block]

NOTE 3. Acquisitions

Note 4 - Fair Value Measurements

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes to Financial Statements

Fair Value Disclosures [Text Block]

NOTE 4. Fair Value Measurements

The three input levels of the fair value hierarchy are as follows:

	●	Level 1 – quoted prices for identical assets or liabilities in active markets.
	●	Level 2 – quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates) and inputs derived principally from or corroborated by observable market data by correlation or other means.
	●	Level 3 – unobservable inputs for the asset or liability, typically reflecting management’s estimate of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore, determined using model-based techniques, including discounted cash flow models.

Assets and liabilities measured at fair value on a recurring basis. Assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 are as follows (in thousands):

	As of June 30, 2021
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Liabilities:
Commodity price derivatives	$	-	$	12,558	$	-	$	12,558

The Company did not have any assets or liabilities that are measured at fair value on a recurring basis as of December 31, 2020.

Impact of the COVID-19 pandemic on certain assets and liabilities measured at fair value on a nonrecurring basis.

NOTE 4. Fair Value Measurements

The three input levels of the fair value hierarchy are as follows:

	●	Level 1 – quoted prices for identical assets or liabilities in active markets.
	●	Level 2 – quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g. interest rates) and inputs derived principally from or corroborated by observable market data by correlation or other means.
	●	Level 3 – unobservable inputs for the asset or liability, typically reflecting management’s estimate of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore, determined using model-based techniques, including discounted cash flow models.

The Company did not have any assets or liabilities that are measured at fair value on a recurring basis as of December 31, 2020 or 2019.

Assets and liabilities measured at fair value on a nonrecurring basis. Certain assets and liabilities are measured at fair value on a nonrecurring basis. These assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances. Specifically, (i) stock-based compensation is measured at fair value on the date of grant based on Level 2 inputs based upon market data, (ii) the oil and gas properties of HighPeak Assets II that were contributed to one of the Predecessors discussed further and in more detail in Note 10 were measured at current estimated fair value using Level 3 inputs based upon market conditions in the area, and (iii) the estimates and fair value measurements used for the evaluation of proved property for potential impairment using Level 3 inputs based upon market conditions in the area. The Company assesses the recoverability of the carrying amount of certain assets and liabilities whenever events or changes in circumstances indicate the carrying amount of an asset or liability may not be recoverable. These assets and liabilities can include inventories, proved and unproved oil and gas properties and other long-lived assets that are written down to fair value when they are impaired or held for sale. The Company did not record any impairments to proved or unproved oil and gas properties for the periods presented in the accompanying condensed consolidated and combined financial statements.

Concentrations of credit risk. As of December 31, 2020 and 2019, management concluded there are no concentrations of credit risk, based on the nature of the assets held by the Company.

Impact of the COVID-19 pandemic on certain assets and liabilities measured at fair value on a nonrecurring basis.

- Definition

+ References + Details

Note 5 - Exploratory Well Costs

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes to Financial Statements

Exploratory Well Costs [Text Block]

NOTE 6. Exploratory Well Costs

The changes in capitalized exploratory well costs are as follows (in thousands):

	Six Months Ended June 30, 2021
Beginning capitalized exploratory well costs	$	32,592
Additions to exploratory well costs		75,289
Reclassification to proved properties		(106,749	)
Exploratory well costs charged to exploration and abandonment expense		-
Ending capitalized exploratory well costs	$	1,132

All capitalized exploratory well costs have been capitalized for less than one year based on the date of drilling.

NOTE 5. Exploratory Well Costs

The changes in capitalized exploratory well costs are as follows (in thousands):

	Year Ended December 31, 2020
	Successor			Predecessors
	August 22, through December 31, 2020			January 1, through August 21, 2020			Year Ended December 31, 2019

Beginning capitalized exploratory well costs	$	41,524		$	11,427		$	-
Additions to exploratory well costs pending the determination of proved reserves		53,462			48,169			58,435
Reclassification due to determination of proved reserves		(62,394	)		(18,072	)		(47,008	)
Exploratory well costs charged to exploration and abandonment expense		-			-			-
Ending capitalized exploratory well costs	$	32,592		$	41,524		$	11,427

All capitalized exploratory well costs have been capitalized for less than one year based on the date of drilling.

Note 6 - Long-term Debt

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes to Financial Statements

Long-term Debt [Text Block]

Note 7. Long-Term Debt

The components of long-term debt, including the effects of debt issuance costs, are as follows (in thousands):

	June 30,			December 31,
	2021			2020
Revolving Credit Facility due 2024	$	14,000		$	-
Debt issuance costs, net (a)		(2,082	)		-
Total debt		11,918			-
Less current portion of long-term debt		-			-
Long-term debt, net	$	11,918		$	-

Note 6. Long-Term Debt

The Revolving Credit Facility requires the maintenance of a ratio of total debt to EBITDAX, subject to certain adjustments, not to exceed 3.00 to 1.00 as of the last day of any fiscal quarter (commencing with the fiscal quarter ending March 31, 2021) and a current ratio, subject to certain adjustments of at least 1.00 to 1.00 as of the last day of any fiscal quarter (commencing with the fiscal quarter ending March 31, 2021).

Note 7 - Asset Retirement Obligations

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes to Financial Statements

Asset Retirement Obligation Disclosure [Text Block]

Note 8. Asset Retirement Obligations

Asset retirement obligations activity is as follows (in thousands):

	Six Months Ended June 30, 2021
Beginning asset retirement obligations	$	2,293
Liabilities incurred from new wells		610
Revision of estimates (a)		(10	)
Accretion of discount		72
Ending asset retirement obligations	$	2,965

(a) The revisions to the Company’s asset retirement obligation estimates are primarily due to changes in estimated costs based on experience with the properties and their expected useful lives.

As of June 30, 2021 and December 31, 2020, all asset retirement obligations are considered noncurrent and classified as such in the accompanying consolidated balance sheet.

Note 7. Asset Retirement Obligations

Asset retirement obligations activity is as follows (in thousands):

	Year Ended December 31, 2020
	Successor			Predecessors
	August 22, 2020 through December 31, 2020			January 1, 2020 through August 21, 2020		Year Ended December 31, 2019
Beginning asset retirement obligations	$	2,398		$	2,212	$	520
Liabilities incurred from new wells		84			97		1,511
Liabilities settled upon plugging and abandoning wells		(29	)		-		(51	)
Revision of estimates (a)		(211	)		-		160
Accretion of discount		51			89		72
Ending asset retirement obligations	$	2,293		$	2,398	$	2,212

(a) The revisions to the Company’s asset retirement obligation estimates are primarily due to changes in estimated costs based on experience with the properties.

As of December 31, 2020 and 2019, all asset retirement obligations are considered noncurrent and classified as such in the accompanying consolidated balance sheet.

Note 8 - Incentive Plans

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

NOTE 9. Incentive Plans

	June 30, 2021
Approved and authorized awards		12,047,866
Awards issued under plan		(9,681,506	)
Awards available for future grant		2,366,360

	Stock Options			Exercise Price		Remaining Term in Years		Intrinsic Value (in thousands)
Outstanding at August 22, 2020		-
Awards granted		9,705,495		$	10.00
Outstanding at December 31, 2020		9,705,495		$	10.00		9.7	$	57,942
Exercised		(154,268	)	$	10.00
Outstanding at June 30, 2021		9,551,227		$	10.00		9.2	$	-

Vested at December 31, 2020		7,204,163		$	10.00		9.7	$	43,009
Exercisable at December 31, 2020		7,204,163		$	10.00		9.7	$	43,009

Vested at June 30, 2021		7,049,895		$	10.00		9.2	$	2,232
Exercisable at June 30, 2021		7,049,895		$	10.00		9.2	$	2,232

NOTE 8. Incentive Plans

401(k) Plan. The HighPeak Energy Employees, Inc 401(k) Plan (the “401(k) Plan”) is a defined contribution plan established under Section 401 of the Internal Revenue Code of 1986, as amended (the "Code"). As of October 1, 2020, all regular full-time and part-time employees of the Company are eligible to participate in the 401(k) Plan after three continuous months of employment with the Company. Participants may contribute up to 80 percent of their annual base salary into the 401(k) Plan. Matching contributions are made to the 401(k) Plan in cash by the Company in amounts equal to 100 percent of a participant’s contributions to the 401(k) Plan that are not in excess of four percent of the participant’s annual base salary (the “Matching Contribution”). Each participant’s account is credited with the participant’s contributions, Matching Contributions and allocations of the 401(k) Plan’s earnings. Participants are fully vested in their account balances at their eligibility date. During the period from August 24, 2020 through December 31, 2020, the Company contributed $49,000 to the 401(k) Plan.

	December 31, 2020
Approved and authorized awards		11,907,006
Awards granted under plan		(9,767,995	)
Awards available for future grant		2,139,011

	Stock Options		Exercise Price		Remaining Term in Years		Intrinsic Value (in thousands)
Outstanding at August 22, 2020		-
Awards granted		9,705,495	$	10.00
Awards forfeited		-
Exercised		-
Outstanding at December 31, 2020		9,705,495	$	10.00		9.7	$	57,942

Vested at December 31, 2020		7,204,163	$	10.00		9.7	$	43,009
Exercisable at December 31, 2020		7,204,163	$	10.00		9.7	$	43,009

Note 9 - Commitments and Contingencies

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

NOTE 10. Commitments and Contingencies

	June 30, 2021
Remainder of 2021	$	164
2022		79
Total lease payments		243
Less present value discount		(4	)
Present value of lease liabilities	$	239

NOTE 9. Commitments and Contingencies

	Successor
	December 31, 2020
2021	$	439
2022		79
Total lease payments		518
Less present value discount		(10	)
Present value of lease liabilities	$	508

Note 10 - Related Party Transactions

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes to Financial Statements

NOTE 11. Related Party Transactions

NOTE 10. Related Party Transactions

	Nine Months Ended September 30, 2019
Operating Revenues:
Crude oil sales	$	719
Natural gas and natural gas liquid sales		223
Total operating revenues		942
Operating costs and expenses:
Oil and natural gas production		1,190
Production and ad valorem taxes		59
Exploration and abandonment		756
Depletion, depreciation and amortization		650
Accretion of discount on asset retirement obligations		86
General and administrative		2,891
Abandoned project		1,122
Total operating costs and expenses		6,754
Loss from operations		(5,812	)
Interest income		107
Net loss	$	(5,705	)

	(a)			(b)			(c)		(d)			(e)			(f)
	HPK LP			Pure			HighPeak Employees, Inc.		Issuance of HighPeak Energy Common Stock			Cash Offering Costs			Deferred Tax Liability			Beginning Balance Sheet on August 22, 2020
Cash and cash equivalents	$	1,943		$	1		$	99	$	92,554		$	(8,114	)	$	-		$	86,483
Accounts receivable		3,001			-			26		-			-			-			3,027
Total current assets		4,944			1			125		92,554			(8,114	)		-			89,510
Total oil and gas properties, net		452,039			-			-		-			-			-			452,039
Other property and equipment, net		436			-			-		-			-			-			436
Total assets	$	457,419		$	1		$	125	$	92,554		$	(8,114	)	$	-		$	541,985
Current liabilities	$	35,794		$	2,025		$	77	$	(9,538	)	$	-		$	-		$	28,358
Deferred income tax liability		-			-			-		-			-			39,946			39,946
Notes payable (receivable)		(11,675	)		11,675			-		-			-			-			-
Asset retirement obligations		2,398			-			-		-			-			-			2,398
Partners' capital		521,682			-			-		(521,682	)		-			-			-
Common stock		-			-			-		9			-			-			9
Additional paid-in capital		-			(13,699	)		48		623,765			(8,114	)		(39,946	)		562,054
Accumulated deficit		(90,780	)		-			-		-			-			-			(90,780	)
Total stockholders' equity/partner's capital		430,902			(13,699	)		48		102,092			(8,114	)		(39,946	)		471,283
Total liabilities and stockholders' equity/partners' capital	$	457,419		$	1		$	125	$	92,554		$	(8,114	)	$	-		$	541,985

	(a)	Represents HPK LP’s condensed consolidated balance sheet estimated as of August 21, 2020.
	(b)	Represents Pure’s condensed consolidated balance sheet estimated as of August 21, 2020 after taking into account: (i) the closing of its trust account, (ii) the redemption of Pure’s Class A Common Stock by the former public stockholders of Pure that elected to redeem, (iii) paying out the cash consideration to those former public stockholders of Pure who elected to remain and (iv) the conversion of the remaining shares of Pure’s Class A Common Stock to HighPeak Energy common stock upon the closing of the HighPeak business combination. The $13.7 million reduction to equity is considered noncash offering costs on the condensed consolidated statement of changes in stockholders’ equity.
	(c)	Represents the balance sheet of HighPeak Energy Employees, Inc which was acquired by the Company for $10.00 upon the closing of the HighPeak business combination.
	(d)	Represents the issuance by the Company of 91,592,354 shares of common stock, 10,538,183 warrants and 10,209,300 Contingent Value Rights upon the closing of the HighPeak business combination. The reduction to accounts payable of $9.5 million represents those vendors of HPK LP that purchased shares under the Forward Purchase Agreement Amendment in the HighPeak business combination in lieu of being paid cash for the majority of their outstanding balances.
	(e)	Represents the cash costs paid for the offering of the aforementioned shares in addition to the cash costs that had previously been incurred by Pure of $13.7 million in column (b).
	(f)	Represents the beginning deferred tax liability of the Company given the combination of all the entities, most of which originated from HPK LP which was a partnership for U.S. federal income tax purposes and therefore did not record a deferred tax liability.

	(Unaudited Pro Forma) Year Ended December 31,
	2020			2019
Total revenues	$	24,623		$	9,057
Net income attributable to Common Stock		(23,310	)		(8,838	)
Basic and diluted net loss per share		(0.25	)		(0.10	)

●

	●	for so long as (i) the Principal Stockholder Group beneficially owns less than 35% but at least 25% of the Original Shares and (ii) the Original Shares constitute at least 25% of the Company’s then-outstanding voting securities, the Principal Stockholder Group can designate up to three (3) nominees;
	●	for so long as (i) the Principal Stockholder Group beneficially owns less than 25% but at least 15% of the Original Shares and (ii) the Original Shares constitute at least 15% of the Company’s then-outstanding voting securities, the Principal Stockholder Group can designate up to two (2) nominees; and
	●	if (i) the Principal Stockholder Group beneficially owns less than 15% but at least 5% of the Original Shares and (ii) the Original Shares constitute at least 7.5% of the Company’s then-outstanding voting securities, the Principal Stockholder Group can designate one (1) nominee.

General and Administrative Expenses. The general partner of HPK LP utilized HighPeak Energy Management, LLC (the “Management Company”) to provide services and assistance to conduct, direct and exercise full control over the activities of HPK LP per its Partnership Agreement. However, the Management Company is funded via payments from the parent companies of HighPeak I and HighPeak II pursuant to their respective Limited Partnership Agreements, as amended. Therefore, HPK LP reimbursed the parent companies of HighPeak I and HighPeak II for actual costs incurred by the Management Company. During the period from January 1, 2020 through August 21, 2020, HPK LP paid $2.4 million each to the parent companies of HighPeak I and HighPeak II of which $4.7 million is included in general and administrative expenses in the accompanying results of operations for the period from January 1, 2020 through August 21, 2020. Effective upon closing of the HighPeak business combination, the Management Company will no longer be paid by the Company as all costs directly attributable to the Company will be paid by the Company going forward.

Note 11 - Major Customers

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

NOTE 12. Major Customers

NOTE 11. Major Customers

Note 12 - Income Taxes

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE 13. Income Taxes

The Company’s income tax expense attributable to income from operations consisted of the following (in thousands):

	Six Months Ended June 30, 2021
Current tax expense	$	-
Deferred tax expense		2,535
Income tax expense	$	2,535

	Six Months Ended June 30, 2021
Income tax expense at U.S. federal statutory rate	$	2,735
Limited tax benefit due to stock-based compensation		(81	)
Other		(119	)
Income tax expense	$	2,535
Effective income tax rate		19.5	%

	June 30, 2021			December 31, 2020
Deferred tax assets:
Net operating loss carryforwards	$	16,770		$	9,725
Stock-based compensation		3,419			3,124
Unrecognized derivative losses		2,637			-
Other		107			31
Less: Valuation allowance		-			-
Net deferred tax assets		22,933			12,880
Deferred tax liabilities:
Oil and natural gas properties, principally due to differences in basis and depreciation and the deduction of intangible drilling costs for tax purposes		(64,365	)		(51,778	)
Net deferred tax liabilities	$	(41,432	)	$	(38,898	)

NOTE 12. Income Taxes

The Company’s income tax expense (benefit) attributable to income (loss) from operations consisted of the following(in thousands):

	August 22, 2020 through December 31, 2020
Current tax benefit	$	(3,176	)
Deferred tax benefit		(1,047	)
Income tax benefit	$	(4,223	)

	August 22, 2020 through December 31, 2020
Income tax expense (benefit) at U.S. federal statutory rate	$	(4,337	)
Limited tax benefit due to stock-based compensation		127
Other		(13	)
Income tax expense (benefit)	$	(4,223	)
Effective income tax rate		20.4	%

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities were as follows as of December 31, 2020 (in thousands):

	December 31, 2020
Deferred tax assets:
Net operating loss carryforwards	$	9,725
Stock-based compensation		3,124
Other		31
Less: Valuation allowance		-
Net deferred tax assets		12,880

Deferred tax liabilities:
Oil and natural gas properties, principally due to differences in basis and depreciation and the deduction of intangible drilling costs for tax purposes		(51,778	)
Net deferred tax liabilities	$	(38,898	)

As required by ASC Topic 740, “Income Taxes,” (“ASC 740”) the Company uses reasonable judgments and makes estimates and assumptions related to evaluating the probability of uncertain tax positions. The Company bases its estimates and assumptions on the potential liability related to an assessment of whether the income tax position will “more likely than not” be sustained in an income tax audit. Based on that analysis, the Company believes the Company has not taken any material uncertain tax positions, and therefore has not recorded an income tax liability related to uncertain tax positions. However, if actual results materially differ, the Company’s effective income tax rate and cash flows could be affected in the period of discovery or resolution. The Company also reviews the estimates and assumptions used in evaluating the probability of realizing the future benefits of the Company’s deferred tax assets and records a valuation allowance when the Company believes that a portion or all the deferred tax assets may not be realized. If the Company is unable to realize the expected future benefits of its deferred tax assets, the Company is required to provide a valuation allowance. The Company uses its history and experience, overall profitability, future management plans, tax planning strategies, and current economic information to evaluate the amount of valuation allowance to record. As of December 31, 2020, the Company has not recorded a valuation allowance for deferred tax assets arising from its operations because the Company believes they meet the “more likely than not” criteria as defined by the recognition and measurement provisions of ASC 740. However, the Company may not realize the $12.9 million in deferred tax assets it has as of December 31, 2020 if the estimates and assumptions used in evaluating the probability of realizing the future benefits of the Company's deferred tax assets change, which would affect the Company’s effective income tax rate and cash flows in the period of discovery or resolution.

- Definition

+ References

+ Details

Note 13 - Earnings (Loss) Per Share

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE 14. Earnings Per Share

The Company uses the two-class method of calculating earnings per share because certain of the Company’s stock-based awards qualify as participating securities.

	Three			Six
	Months Ended			Months Ended
	June 30,			June 30,
	2021			2021
Net income as reported	$	5,743		$	10,487
Participating basic earnings (a)		(407	)		(743	)
Basic earnings attributable to common stockholders		5,336			9,744
Reallocation of participating earnings		-			1
Diluted net income attributable to common stockholders	$	5,336		$	9,745

Basic weighted average shares outstanding		92,676			92,634
Dilutive warrants and unvested stock options		-			196
Diluted weighted average shares outstanding		92,676			92,830

(a)

The calculation for weighted average shares reflects shares outstanding over the reporting period based on the actual number of days the shares were outstanding.

NOTE 13. Earnings (Loss) Per Share

The Company uses the two-class method of calculating earnings (loss) per share because certain of the Company’s unvested stock-based awards qualify as participating securities.

	Successor
	August 22, through December 31, 2020
Net income (loss) attributable to common stockholders	$	(16,429	)
Participating share-based earnings (a)		-
Basic and diluted net income (loss) attributable to common stockholders	$	(16,429	)

Basic weighted average shares outstanding		91,629
Dilution attributable to stock-based compensation awards		-
Diluted weighted average shares outstanding		91,629

(a)

Note 14 - Stockholders' Equity (Successor)

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

NOTE 15. Stockholders’ Equity (Successor)

NOTE 14. Stockholders’ Equity (Successor)

- Definition

+ References

+ Details

Note 15 - Partners' Capital (Predecessors)

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes to Financial Statements

Partners' Capital Notes Disclosure [Text Block]

NOTE 16. Partners’ Capital (Predecessor)

NOTE 15. Partners’ Capital (Predecessors)

Note 16 - Subsequent Events

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes to Financial Statements

Subsequent Events [Text Block]

NOTE 17. Subsequent Events

NOTE 16. Subsequent Events

Note 17 - Supplemental Oil and Gas Disclosures (Unaudited)

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Oil and Gas Exploration and Production Industries Disclosures [Text Block]

Note 17 – Supplemental Oil and Gas Disclosures (Unaudited)

Net Capitalized Costs

The following table reflects the capitalized costs of natural gas and oil properties and the related accumulated depletion (in thousands):

	Successor			Predecessors
	December 31, 2020			December 31, 2019
	(in thousands)
Proved properties	$	367,372		$	178,835
Unproved properties		152,741			227,525
Total capitalized costs		520,113			406,360
Less: accumulated depletion		(17,477	)		(1,566	)
Net capitalized costs	$	502,636		$	404,794

Cost Incurred in Oil and Natural Gas Property Acquisition, Exploration and Development

The following table reflects costs incurred in oil, natural gas and NGL property acquisition, development and exploratory activities (in thousands):

	Year Ended December 31, 2020
	Successor			Predecessors
	August 22, 2020 through December 31, 2020			January 1, 2020 through August 21, 2020		Year Ended December 31, 2019
Acquisition costs:
Proved properties	$	-		$	585	$	4,635
Unproved properties		1,181			2,753		6,288
Total acquisition costs		1,181			3,338		10,923
Exploration costs		52,837			48,801		59,349
Development costs		11,757			863		54
Oil and gas expenditures		65,775			53,002		70,326
Asset retirement obligations, net		(105	)		98		316
Total costs incurred	$	65,670		$	53,100	$	70,642

Results of Operations for Oil, Natural Gas and NGL Producing Activities

The following table reflects the Partnership’s results of operations for oil, natural gas and natural gas liquids producing activities (in thousands):

	Year Ended December 31, 2020
	Successor			Predecessors
	August 22, 2020 through December 31, 2020			January 1, 2020 through August 21, 2020			Year Ended December 31, 2019
Oil, NGL and natural gas sales	$	16,400		$	8,223		$	8,115
Lease operating expenses		2,653			4,870			3,372
Production and ad valorem taxes		886			566			449
Exploration and abandonment expense		5,032			4			2,850
Depletion, depreciation and amortization expense		9,877			6,385			4,269
Accretion of discount on asset retirement obligations		51			89			72
Results of operations from oil and gas production activities	$	(2,099	)	$	(3,691	)	$	(2,897	)

Oil, Natural Gas and NGL Reserves

Proved reserves were estimated in accordance with guidelines established by the SEC, which require that reserve estimates be prepared under existing economic and operating conditions based upon the 12-month unweighted average of the first day of the month spot prices prior to the end of the reporting period. These prices as of December 31, 2020 and 2019 were $39.57 and $55.69 per barrel for crude oil and $1.985 and $2.578 per MMBtu for natural gas, respectively. The estimated realized prices used in computing the Company’s reserves as of December 31, 2020 were as follows: (i) oil - $38.08 per barrel, (ii) natural gas - ($1.304) per Mcf, and (iii) NGL - $12.27 per barrel. The estimated realized prices used in computing the Partnership’s reserves as of December 31, 2019 were as follows: (i) oil - $50.57 per barrel, (ii) natural gas - $0.10 per Mcf, and (iii) NGL - $21.17 per barrel. All prices are net of adjustments for regional basis differentials, treating costs, transportation, gas shrinkage, gas heating vale (BTU content) and/or crude quality and gravity adjustments.

The proved reserve estimates as of December 31, 2020 and 2019 were prepared by Cawley, Gillespie & Associates, Inc. (“CG&A”), independent reserve engineers, and reflect the Company’s current development plans. All estimates of proved reserves are determined according to the rules prescribed by the SEC in existence at the time estimates were made. These rules require that the standard of “reasonable certainty” be applied to proved reserve estimates, which is defined as having a high degree of confidence that the quantities will be recovered. A high degree of confidence exists if the quantity is much more likely to be achieved than not, and, as more technical and economic data becomes available, a positive or upward revision or no revision is much more likely than a negative or downward revision. Estimates are subject to revision based upon a number of factors, including many factors beyond the Company’s control, such as reservoir performance, prices, economic conditions, and government restrictions. In addition, results of drilling, testing, and production subsequent to the date of an estimate may justify revision of that estimate.

Reserve estimates are often different from the quantities of oil and natural gas that are ultimately recovered. Estimating quantities of proved oil and natural gas reserves is a complex process that involves significant interpretations and assumptions and cannot be measured in an exact manner. It requires interpretations and judgment of available technical data, including the evaluation of available geological, geophysical and engineering data. The accuracy of any reserve estimate is highly dependent on the quality of available data, the accuracy of the assumptions on which they are based upon, economic factors, such as oil and natural gas prices, production costs, severance and excise taxes, capital expenditures, workover and remedial costs, and the assumed effects of governmental regulation. In addition, due to the lack of substantial, if any, production data, there are greater uncertainties in estimating PUD reserves, proved developed non-producing reserves and proved developed reserves that are early in their production life. As a result, the Company’s reserve estimates are inherently imprecise.

The meaningfulness of reserve estimates is highly dependent on the accuracy of the assumptions on which they were based. In general, the volume of production from oil and natural gas properties the Company owns declines as reserves are depleted. Except to the extent the Company conducts successful exploration and development activities or acquires additional properties containing proved reserves, or both, the Company’s proved reserves will decline as reserves are produced.

The following table reflects changes in proved reserves during the periods indicated:

	Crude Oil (MBbl)			Natural Gas (MMcf)			NGL (MBbl)			Total (MBoe)
*Predecessors*
Proved Reserves at January 1, 2019		2,914			809			222			3,271
Contribution from HighPeak II		973			569			78			1,146
Extensions and discoveries		5,413			2,528			759			6,593
Revisions of previous estimates		217			887			290			655
Production		(145	)		(139	)		-			(168	)
Proved Reserves at December 31, 2019		9,372			4,654			1,349			11,497
Purchase of minerals in place		44			36			-			50
Extensions and discoveries		1,008			252			67			1,117
Revisions of previous estimates		(1,555	)		(1,144	)		(374	)		(2,120	)
Production		(236	)		(87	)		(20	)		(270	)
Proved Reserves at August 21, 2020		8,633			3,711			1,022			10,274

*Successor*
Proved Reserves at August 22, 2020		8,633			3,711			1,022			10,274
Extensions and discoveries		11,977			5,215			1,433			14,279
Revisions of previous estimates		(1,180	)		(875	)		(277	)		(1,603	)
Production		(398	)		(112	)		(18	)		(435	)
Proved Reserves at December 31, 2020		19,032			7,939			2,160			22,515

At December 31, 2020, the Company had approximately 22,515 MBoe of proved reserves. Effective August 21, 2020, the HighPeak business combination included estimated proved reserves totaling 10,274 MBoe. For the period from August 22, 2020 to December 31, 2020, extensions and discoveries increased proved reserves by 14,279 MBoe as a result of: (i) drilling 3 gross (3.0 net) exploratory wells that were on production as of December 31, 2020, (ii) 9 gross (8.9 net) exploratory wells that were in the final stages of completion as of December 31, 2020, and (iii) the addition of 15 gross (12.4 net) PUDs. Downward revisions of previous estimates of 1,603 MBoe for the period from August 22, 2020 to December 31, 2020 were primarily the result of: (i) negative revisions of 1,112 MBoe due to technical revisions attributable to decreased well performance and adjustments to our PUD estimates, (ii) negative revisions of 409 MBoe related to PUDs removed from the development program, (iii) negative revisions of approximately 98 MBoe primarily due to decreases in oil, natural gas and NGL prices and increased price differentials, (iv) partially offset by positive revisions of approximately 16 MBoe related to decreased forecasted operating expenses. The net increase in proved reserves was partially offset by 435 MBoe in production during the period from August 22, 2020 to December 31, 2020. The Company’s current development plan reflects allocation of capital with a focus on efficiencies, recoveries and rates of return.

At August 21, 2020, the Company had approximately 10,274 MBoe of proved reserves. During the period from January 1, 2020 to August 21, 2020, the Company acquired interests in three (3) producing vertical wells near its area of operation which included estimated proved reserves totaling 50 MBoe. For the period from January 1, 2020 to August 21, 2020, extensions and discoveries increased proved reserves by 1,117 MBoe as a result of: (i) drilling 3 gross (3.0 net) exploratory wells that were on production as of August 21, 2020. Revisions of previous estimates of 2,120 MBoe for the period from January 1, 2020 to August 21, 2020 were primarily the result of: (i) negative revisions totaling approximately 1,975 MBoe due to technical revisions attributable to decreased well performance of offset horizontal wells resulting in lessoned projected performance and adjustments to PUD estimates, (ii) negative revisions of approximately 173 MBoe primarily due to decreases in oil, natural gas and NGL prices and increased price differentials, and (iii) partially offset by positive revisions of 28 MBoe due to decreased forecasted operating expenses. Adding to the net decrease in proved reserves was 270 MBoe in production during the period from January 1, 20202 to August 21, 2020.

At December 31, 2019, the Predecessors had approximately 11,497 MBoe of proved reserves. Effective October 1, 2019, the contribution of a subsidiary to the Predecessors by HighPeak II included estimated proved reserves totaling 1,146 MBoe. For the year ended December 31, 2019, extensions and discoveries increased proved reserves by 6,593 MBoe as a result of: (i) drilling or participating in the drilling of 2 gross (1.8 net) exploratory wells that were on production as of December 31, 2019, (ii) 5 gross (5.0 net) exploratory wells that were being drilled or pending completion as of December 31, 2019, and (iii) the addition of 13 gross (4.4 net) PUDs. Revisions of previous estimates of 655 MBoe for the year ended December 31, 2019 were primarily the result of: (i) negative revisions totaling approximately 80 MBoe due to reductions in pricing and increases in pricing differentials, (ii) negative revisions of approximately 54 MBoe primarily due to increased forecasted operating expenses, and (iii) positive revisions of 789 MBoe due to improvements in well performance attributable to improved well performance of offset horizontal wells resulting in improved projected performance of these PUDs. The net increase in proved reserves was offset by 168 MBoe in production during the year ended December 31, 2019.

The following table sets forth the Partnership’s estimated quantities of proved developed and proved undeveloped oil, natural gas and natural gas liquid reserves:

	Successor December 31, 2020		Predecessors December 31, 2019
Proved Developed Reserves ⁽¹⁾
Oil (MBbl)		8,730		4,091
Natural gas (MMcf)		3,572		1,952
Natural gas liquids (MBbl)		957		548
Total (MBoe)		10,282		4,964
Proved Undeveloped Reserves
Oil (MBbl)		10,302		5,281
Natural gas (MMcf)		4,367		2,702
Natural gas liquids (MBbl)		1,203		801
Total (MBoe)		12,233		6,533
Total Proved Reserves
Oil (MBbl)		19,032		9,372
Natural gas (MMcf)		7,939		4,654
Natural gas liquids (MBbl)		2,160		1,349
Total (MBoe)		22,515		11,497

⁽¹⁾

As of December 31, 2020 and 2019, proved developed reserves includes proved developed non-producing reserves of 4,517 and 3,101 MBbl of crude oil, 1,912 and 1,454 MMcf of natural gas and 517 and 447 MBbl of natural gas liquids, respectively.

Standardized Measure of Discounted Future Net Cash Flows

The following table reflects the Partnership’s standardized measure of discounted future net cash flows relating from its proved crude oil, natural gas and natural gas liquids reserves (in thousands):

	Successor December 31, 2020			Predecessors December 31, 2019
Future cash inflows	$	740,859		$	502,961
Future production costs		(217,025	)		(127,897	)
Future development costs		(117,887	)		(78,360	)
Future income tax expense		(25,824	)		(2,640	)
Future net cash flows		380,123			294,064
Discount to present value at 10% annual rate		(157,931	)		(154,043	)
Standardized measure of discounted future net cash flows	$	222,192		$	140,021

⁽¹⁾

Effective beginning on August 22, 2020 and as of December 31, 2020, the Company is treated as a corporation for U.S. federal income tax purposes. Accordingly, “future income tax expense” above includes estimates of future federal income taxes and margin / franchise taxes in Texas that may be incurred by the Company. As of December 31, 2019, the Predecessors were each treated as a partnership for U.S. federal income tax purposes. Accordingly, federal taxable income and losses were reported on the income tax returns of the Predecessor’s partners. The Predecessors were subject to margin / franchise taxes in Texas, which is reflected as “Future income tax expense”.

The following table reflects the principal changes in the standardized measure of discounted future net cash flows attributable to the Partnership’s proved reserves (in thousands):

	Year Ended December 31, 2020 (2)			Year Ended December 31, 2019 (2)
Standardized measure of discounted future net cash flows, beginning of year	$	140,021		$	31,118
Contribution of HighPeak II to Predecessors		-			10,488
Sales of oil and natural gas, net of production costs		(15,648	)		(4,294	)
Extensions and discoveries, net of future development costs		172,478			85,626
Net changes in prices and production costs		(50,728	)		(6,755	)
Changes in estimated future development costs		6,466			9,483
Purchases of minerals in place		600			14
Revisions of previous quantity estimates		(41,646	)		8,232
Accretion of discount		14,134			3,165
Net changes in income taxes ⁽¹⁾		(10,675	)		(857	)
Net changes in timing of production and other		7,190			3,801
Standardized measure of discounted future net cash flows, end of year	$	222,192		$	140,021

⁽¹⁾

Effective with the HighPeak business combination that closed on August 21, 2020, the oil and gas properties became owned by HighPeak Energy, which is treated as a corporation for U.S. federal income tax purposes. As such, the “Net change in income taxes” in the table above for the year ended December 31, 2020 reflects the change in tax status applicable to the operations of the oil and gas properties. Prior to the HighPeak business combination, the Predecessors were each treated as a partnership for U.S. federal income tax purposes. Accordingly, federal taxable income and losses relating to the operation of the oil and gas properties were reported on the income tax returns of the Predecessors’ partners. The Predecessors were subject to margin / franchise taxes in Texas, which is reflected as “Net change in income taxes” in the table above for the year ended December 31, 2019.

⁽²⁾

The year ended December 31, 2020 in the table above reflects the change in standardized measure from that of HPK LP, our Predecessor, as of December 31, 2019 to that of the Company as of December 31, 2020 and amounts are combined for the period from January 1, 2020 to August 21, 2020 of HPK LP and from August 22, 2020 to December 31, 2020 of the Company. There was no third-party reserve report prepared as of August 21, 2020 from which to compute a standardized measure from as of that date. The year ended December 31, 2019 in the table above reflects the change in standardized measure from that of HighPeak I, HPK LP’s Predecessor, as of December 31, 2018 to that of HPK LP as of December 31, 2019 and amounts are combined for the period from January 1, 2019 to September 30, 2019 of HighPeak I and from October 1, 2019 to December 31, 2019 of HPK LP. There was no third-party reserve report prepared for HighPeak I as of October 1, 2019 from which to compute a standardized measure from as of that date. We believe the table above accurately reflects the change in standardized measure for the Predecessors and Successor in a meaningful context.

Significant Accounting Policies (Policies)

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

	Predecessors for the Year Ended December 31, 2019
(in thousands)	HPK LP from August 28, 2019 (Inception) through December 31, 2019			HighPeak I for the Year Ended December 31, 2019			Eliminations			Combined Year Ended December 31, 2019
Operating Revenues:
Crude oil sales	$	3,695		$	4,154					$	7,849
Natural gas and NGL sales		163			103						266
Total operating revenues		3,858			4,257						8,115
Operating Costs and Expenses:
Oil and natural gas production		1,578			1,794						3,372
Production and ad valorem taxes		188			261						449
Exploration and abandonments		33			2,817						2,850
Depletion, depreciation and amortization		1,612			2,657						4,269
Accretion of discount on asset retirement obligations		34			38						72
General and administrative		6,159			2,523						8,682
Total operating costs and expenses		9,604			10,090						19,694
Loss from operations		(5,746	)		(5,833	)					(11,579	)
Equity in losses of affiliate		-			(3,175	)		3,175			-
Net loss	$	(5,746	)	$	(9,008	)	$	3,175		$	(11,579	)



CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(5,746	)	$	(9,008	)	$	3,175		$	(11,579	)
Adjustments to reconcile net loss to net cash provided by (used in) operations:
Exploration and abandonment expense		33			2,817			-			2,850
Depletion, depreciation and amortization expense		1,612			2,657			-			4,269
Accretion expense		34			38			-			72
Equity in loss off affiliate		-			3,175			(3,175	)		-
Changes in operating assets and liabilities:
Accounts receivable		(1,355	)		1,425			-			70
Inventory and other current assets		(88	)		(121	)		-			(209	)
Accounts payable and accrued liabilities		3,010			745			-			3,755
Net cash provided by (used in) operating activities		(2,500	)		1,728			-			(772	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and natural gas properties		(45,318	)		(15,687	)		-			(61,005	)
Changes in working capital associated with oil and natural gas property additions		19,097			5,585			-			24,682
Acquisitions of oil and natural gas properties		(2,456	)		(8,462	)		-			(10,918	)
Investment in affiliate		-			(7,796	)		7,796			-
Issuance of notes receivable		(4,193	)		-			-			(4,193	)
Net cash used in investing activities		(32,870	)		(26,360	)		7,796			(51,434	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Contributions from partners		58,081			23,738			(7,796	)		74,023
Net cash provided by financing activities		58,081			23,738			(7,796	)		74,023
Net increase (decrease) in cash and cash equivalents		22,711			(894	)		-			21,817
Cash and cash equivalents, beginning of period		-			894			-			894
Cash and cash equivalents, end of period	$	22,711		$	-		$	-		$	22,711

See Note 10 for information regarding the HighPeak business combination and the HPK LP business combination and how they were accounted for in the accompanying financial statements.

Consolidation, Policy [Policy Text Block]

Principles of consolidation. The condensed consolidated and combined financial statements include the accounts of the Company and its wholly owned subsidiaries since August 22, 2020, and its Predecessors and their wholly owned subsidiaries since their acquisition or formation for all periods prior to and including August 21, 2020. All material intercompany balances and transactions have been eliminated. Certain reclassifications have been made to prior period amounts to conform to the current period’s presentation.

Principles of consolidation. The condensed consolidated and combined financial statements include the accounts of the Company and its wholly owned subsidiaries since August 22, 2020, and its Predecessors and their wholly owned subsidiaries since their acquisition or formation for all periods prior to August 21, 2020. All material intercompany balances and transactions have been eliminated. Certain reclassifications have been made to prior period amounts to conform to the current period’s presentation.

Use of Estimates, Policy [Policy Text Block]

Use of estimates in the preparation of financial statements. Preparation of the Company's unaudited interim condensed consolidated and combined financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Depletion of oil and natural gas properties and evaluations for impairment of proved and unproved oil and natural gas properties, in part, is determined using estimates of proved, probable and possible oil, NGL and natural gas reserves. There are numerous uncertainties inherent in the estimation of quantities of proved, probable and possible reserves and in the projection of future rates of production and the timing of development expenditures. Similarly, evaluations for impairment of proved and unproved oil and natural gas properties are subject to numerous uncertainties including, among others, estimates of future recoverable reserves, commodity price outlooks and future undiscounted and discounted net cash flows. Other items subject to such estimates and assumptions include, but are not limited to, the carrying value of oil and natural gas properties, asset retirement obligations, equity-based compensation, fair value of derivatives and estimates of income taxes. Actual results could differ from the estimates and assumptions utilized.

Use of estimates in the preparation of financial statements. Preparation of the Company's consolidated and combined financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Depletion of oil and gas properties and evaluations for impairment of proved and unproved oil and gas properties, in part, is determined using estimates of proved, probable and possible oil and gas reserves. There are numerous uncertainties inherent in the estimation of quantities of proved, probable and possible reserves and in the projection of future rates of production and the timing of development expenditures. Similarly, evaluations for impairment of proved and unproved oil and natural gas properties are subject to numerous uncertainties including, among others, estimates of future recoverable reserves, commodity price outlooks and future undiscounted and discounted net cash flows. Other items subject to such estimates and assumptions include, but are not limited to, the carrying value of oil and natural gas properties, asset retirement obligations, equity-based compensation and estimates of income taxes. Actual results could differ from the estimates and assumptions utilized.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and cash equivalents. The Company’s cash and cash equivalents include depository accounts held by banks with original issuance maturities of 90 days or less. The Company’s cash and cash equivalents are generally held in financial institutions in amounts that may exceed the insurance limits of the Federal Deposit Insurance Corporation. However, management believes that the Company’s counterparty risks are minimal based on the reputation and history of the institutions selected.

Accounts Receivable [Policy Text Block]

Accounts receivable. As of June 30, 2021 and December 31, 2020, the Company’s accounts receivables primarily consist of amounts due from the sale of crude oil, NGL and natural gas of $16.3 million and $4.2 million, respectively, and are based on estimates of sales volumes and realized prices the Company anticipates it will receive, joint interest receivables of $4.2 million and $345,000, respectively, a current U.S. federal income tax receivable of $3.2 million and $3.2 million, respectively, and other receivables of $123,000 and zero, respectively. The Company’s share of oil, NGL and natural gas production is sold to various purchasers who must be prequalified under the Company’s credit risk policies and procedures. The Company’s credit risk related to collecting accounts receivables is mitigated by using credit and other financial criteria to evaluate the credit standing of the entity obligated to make payment on the accounts receivable, and where appropriate, the Company obtains assurances of payment, such as a guarantee by the parent company of the counterparty or other credit support. The Company routinely reviews outstanding balances and establishes allowances for bad debts equal to the estimable portions of accounts receivable for which failure to collect is considered probable. As of June 30, 2021 and December 31, 2020, the Company had no allowance for doubtful accounts.

Accounts receivable. The Company’s accounts receivable are primarily comprised of oil and gas sales receivables, a current U.S. federal income tax receivable, joint interest receivables and other receivables for which the Company does not require collateral security. The Company’s share of oil and gas production is sold to various purchasers who must be prequalified under the Company’s credit risk policies and procedures. The Company records allowances for doubtful accounts based on the age of accounts receivables and the financial condition of its purchasers. The Company’s credit risk related to collecting accounts receivables is mitigated by using credit and other financial criteria to evaluate the credit standing of the entity obligated to make payment on the accounts receivable, and where appropriate, the Company obtains assurances of payment, such as a guarantee by the parent company of the counterparty or other credit support.

As of December 31, 2020 and 2019, the Company’s accounts receivables primarily consist of amounts due from the sale of crude oil, natural gas and natural gas liquids of $4.2 million and $2.9 million, respectively, and are based on estimates of sales volumes and realized prices the Company anticipates it will receive, a current U.S. federal income tax receivable of $3.2 million and zero, respectively, related to U.S. federal income taxes paid prior to the HighPeak business combination that will be received by carrying back and utilizing the net operating losses generated from August 22, 2020 through December 31, 2020, and joint interest receivables of $345,000 and $440,000, respectively. The Company routinely reviews outstanding balances and establishes allowances for bad debts equal to the estimable portions of accounts receivable for which failure to collect is considered probable. As of December 31, 2020 and 2019, the Company had no allowance for doubtful accounts recorded.

Subscription Receivable [Policy Text Block]

Subscription receivable. In accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification (“ASC”) 505-10-45-2, “Receivables for Issuance of Equity,” the Company recorded a subscription receivable as of December 31, 2020 related to the exercise of warrants prior to December 31, 2020 as the cash was collected before the financial statements were issued or available to be issued. Prior to December 31, 2020, a total of 312,711 warrants were exercised for cash proceeds of $3.6 million. Due to the timing of the exercises, the shares underlying the warrants were issued in December 2020 and the proceeds were received subsequent to December 31, 2020. The outstanding proceeds were recorded as a subscription receivable in the accompanying balance sheets as of December 31, 2020. There is no subscription receivable as of June 30, 2021 as all cash related to exercises of warrants was received prior to the balance sheet date.

Subscription receivable. In accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification (“ASC”) 505-10-45-2, “Receivables for Issuance of Equity,” the Company recorded a subscription receivable as of December 31, 2020 related to the exercise of warrants prior to December 31, 2020 as the cash was collected before the financial statements are issued or available to be issued. Prior to December 31, 2020, 312,711 warrants were exercised for cash proceeds of $3.6 million. Due to the timing of the exercises, the shares underlying the warrants were issued in December 2020 and the proceeds were received subsequent to December 31, 2020. The outstanding proceeds were recorded as a subscription receivable in the accompanying balance sheets as of December 31, 2020.

Inventory, Policy [Policy Text Block]

Inventory. Inventory is comprised primarily of oil and natural gas drilling or repair items such as tubing, casing, proppant used to fracture-stimulate oil and natural gas wells, water, chemicals, operating supplies and ordinary maintenance materials and parts. The materials and supplies inventory is primarily acquired for use in future drilling or repair operations and is carried at the lower of cost or net realizable value, on a weighted average cost basis. Valuation allowances for materials and supplies inventories are recorded as reductions to the carrying values of the materials and supplies inventories in the Company’s condensed consolidated balance sheet and as charges to other expense in the condensed consolidated statements of operations. The Company’s materials and supplies inventory as of June 30, 2021 and December 31, 2020 is $217,000 and $121,000, respectively, and the Company has not recognized any valuation allowance to date.

Inventory. Inventory is comprised primarily of oil and gas drilling or repair items such as tubing, casing, proppant used to fracture-stimulate oil and gas wells, water, chemicals, operating supplies and ordinary maintenance materials and parts. The materials and supplies inventory is primarily acquired for use in future drilling operations or repair operations and is carried at the lower of cost or net realizable value, on a weighted average cost basis. Valuation allowances for materials and supplies inventories are recorded as reductions to the carrying values of the materials and supplies inventories in the Company’s condensed consolidated balance sheet and as charges to other expense in the condensed consolidated statements of operations. The Company’s materials and supplies inventory as of December 31, 2020 and 2019 is $120,000 and $184,000, respectively, and the Company has not recognized any valuation allowance to date.

Industry Specific Policies, Oil and Gas [Policy Text Block]

Oil and natural gas properties. The Company utilizes the successful efforts method of accounting for its oil and natural gas properties. Under this method, all costs associated with productive wells and nonproductive development wells are capitalized while nonproductive exploration costs and geological and geophysical expenditures are expensed.

The Company does not carry the costs of drilling an exploratory well as an asset in its consolidated balance sheet following the completion of drilling unless both of the following conditions are met: (i) the well has found a sufficient quantity of reserves to justify its completion as a producing well and (ii) the Company is making sufficient progress assessing the reserves and the economic and operating viability of the project.

Due to the capital-intensive nature and the geographical location of certain projects, it may take an extended period of time to evaluate the future potential of an exploration project and the economics associated with making a determination on its commercial viability. In these instances, the project’s feasibility is not contingent upon price improvements or advances in technology, but rather the Company’s ongoing efforts and expenditures related to accurately predict the hydrocarbon recoverability based on well information, gaining access to other companies’ production data in the area, transportation or processing facilities and/or getting partner approval to drill additional appraisal wells. These activities are ongoing and are being pursued constantly. Consequently, the Company’s assessment of suspended exploratory well costs is continuous until a decision can be made that the project has found sufficient proved reserves to sanction the project or is noncommercial and is charged to exploration and abandonment expense. See Note 6 for additional information.

The capitalized costs of proved properties are depleted using the unit-of-production method based on proved reserves for leasehold costs and proved reserves for drilling, completion and other oil and natural gas property costs. Costs of unproved leasehold costs are excluded from depletion until proved reserves are established or, if unsuccessful, impairment is determined.

Proceeds from the sales of individual properties and the capitalized costs of individual properties sold or abandoned are credited and charged, respectively, to accumulated depletion, depreciation and amortization, if doing so does not materially impact the depletion rate of an amortization base. Generally, no gain or loss is recorded until an entire amortization base is sold. However, gain or loss is recorded from the sale of less than an entire amortization base if the disposition is significant enough to materially impact the depletion rate of the remaining properties in the amortization base.

The Company performs assessments of its long-lived assets to be held and used, including proved oil and natural gas properties accounted for under the successful efforts method of accounting, whenever events or circumstances indicate that the carrying value of those assets may not be recoverable. An impairment loss is indicated if the sum of the expected future cash flows is less than the carrying amount of the assets. In these circumstances, the Company recognizes an impairment charge for the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets.

Unproved oil and natural gas properties are periodically assessed for impairment on a project-by-project basis. These impairment assessments are affected by the results of exploration activities, commodity price outlooks, planned future sales or expirations of all or a portion of such projects. If the estimated future net cash flows attributable to such projects are not expected to be sufficient to fully recover the costs invested in each project, the Company will recognize an impairment charge at that time.

Oil and gas properties. The Company utilizes the successful efforts method of accounting for its oil and gas properties. Under this method, all costs associated with productive wells and nonproductive development wells are capitalized while nonproductive exploration costs and geological and geophysical expenditures are expensed.

The Company performs assessments of its long-lived assets to be held and used, including proved oil and gas properties accounted for under the successful efforts method of accounting, whenever events or circumstances indicate that the carrying value of those assets may not be recoverable. An impairment loss is indicated if the sum of the expected future cash flows is less than the carrying amount of the assets. In these circumstances, the Company recognizes an impairment charge for the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets.

Unproved oil and gas properties are periodically assessed for impairment on a project-by-project basis. These impairment assessments are affected by the results of exploration activities, commodity price outlooks, planned future sales or expirations of all or a portion of such projects. If the estimated future net cash flows attributable to such projects are not expected to be sufficient to fully recover the costs invested in each project, the Company will recognize an impairment charge at that time. During the period from August 22, 2020 to December 31, 2020, the Company recognized an impairment of $4.8 million related to various leasehold costs that the Company was not successful in obtaining extensions on that is included in exploration and abandonment expenses in the accompanying consolidated and combined financial statements.

Property, Plant and Equipment, Policy [Policy Text Block]

Other property and equipment, net. Other property and equipment is recorded at cost. The carrying values of other property and equipment, net of accumulated depreciation of $334,000 and $237,000 as of June 30, 2021 and December 31, 2020, respectively, are as follows (in thousands):

	June 30, 2021		December 31, 2020
Land	$	731	$	725
Information technology		208		292
Transportation equipment		92		41
Leasehold improvements		17		24
Field equipment		9		10
Total other property and equipment, net	$	1,057	$	1,092

Other property and equipment is depreciated over its estimated useful life on a straight-line basis. Land is not depreciated. Information technology is generally depreciated over three years, transportation equipment is generally depreciated over five years and field equipment is generally depreciated over seven years. Leasehold improvements are amortized over the lesser of their estimated useful lives or the underlying terms of the associated leases.

The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If such assets are considered to be impaired, the impairment to be recorded is measured by the amount by which the carrying amount of the asset exceeds its estimated fair value. The estimated fair value is determined using either a discounted future cash flow model or another appropriate fair value method.

Other property and equipment, net. Other property and equipment is recorded at cost. The carrying values of other property and equipment, net of accumulated depreciation of $237,000 and $46,000 as of December 31, 2020 and 2019, respectively, are as follows:

	Successor		Predecessors
	December 31, 2020		December 31, 2019
	(in thousands)
Land	$	725	$	580
Information technology		292		459
Transportation equipment		41		-
Leasehold improvements		24		37
Field equipment		10		12
Total other property and equipment, net	$	1,092	$	1,088

Debt, Policy [Policy Text Block]

Debt issuance costs. The Company has paid a total of $2.2 million in debt issuance costs, $1.8 million of which was incurred during the six months ended June 30, 2021, related to its revolving credit facility. Amortization based on the straight-line method over the term of the revolving credit facility which approximates the effective interest method was $77,000 and zero during the six months ended June 30, 2021 and 2020, respectively. As of June 30, 2021, the net debt issuance costs are netted against the outstanding long-term debt on the accompanying balance sheet in accordance with GAAP. As of December 31, 2020, the net debt issuance costs are included in noncurrent assets on the accompanying consolidated balance sheet due to the fact that the revolving credit facility was undrawn at the time. See Note 7 for additional information regarding the Company’s revolving credit facility.

Debt issuance costs. In December 2020, the Company paid $405,000 in debt issuance costs related to its new revolving credit facility. Amortization of $4,000 based on the straight-line method over the term of the credit facility which approximates the interest rate method was recognized in 2020 and included in interest expense on the accompanying statement of operations. As of December 31, 2020, the net debt issuance costs are included in noncurrent assets on the accompanying consolidated balance sheet due to the fact that the credit facility was undrawn at the time. In the future, these net costs will be included with long-term debt, if any, in accordance with GAAP. See Note 6 for additional information regarding the Company’s new revolving credit facility.

Lessee, Leases [Policy Text Block]

Leases. The Company enters into leases for drilling rigs, storage tanks, equipment and buildings and recognizes lease expense on a straight-line basis over the lease term. Lease right-of-use assets and liabilities are initially recorded on the lease commencement date based on the present value of lease payments over the lease term. As most of the Company’s lease contracts do not provide an implicit discount rate, the Company uses its incremental borrowing rate, which is determined based on information available at the commencement date of a lease. Leases may include renewal, purchase or termination options that can extend or shorten the term of a lease. The exercise of those options is at the Company’s sole discretion and is evaluated at inception and throughout the contract to determine if a modification of the lease term is required. Leases with an initial term of 12 months or less are not recorded as lease right-of-use assets and liability. See Note 10 for additional information.

Accounts Payable and Accrued Liabilities, Policy [Policy Text Block]

Accounts payable, accrued liabilities and derivative liabilities. Accounts payable, accrued liabilities and derivative liabilities as of June 30, 2021 and December 31, 2020 totaled approximately $54.3 million and $22.4 million, respectively, including trade accounts payable, derivative liabilities, revenues payable and accruals for capital expenditures, operating and general and administrative expenses, operating leases and other miscellaneous items.

Accounts payable and accrued liabilities. Accounts payable and accrued liabilities as of December 31, 2020 and 2019 totaled approximately $22.4 million and $31.0 million, respectively, including trade accounts payable, revenues payable and accruals for capital expenditures, operating and general and administrative expenses, operating leases and other miscellaneous items.

Asset Retirement Obligation [Policy Text Block]

Asset retirement obligations. The Company records a liability for the fair value of an asset retirement obligation in the period in which the associated asset is acquired or placed into service, if a reasonable estimate of fair value can be made. Asset retirement obligations are generally capitalized as part of the carrying value of the long-lived asset to which it relates. Conditional asset retirement obligations meet the definition of liabilities and are recorded when incurred and when fair value can be reasonably estimated. See Note 8 for additional information.

Revenue from Contract with Customer [Policy Text Block]

Revenue recognition. The Company follows FASB ASC 606, “Revenue from Contracts with Customers,” (“ASC 606”) whereby the Company recognizes revenues from the sales of oil and natural gas to its purchasers and presents them disaggregated on the Company’s condensed consolidated and combined statements of operations.

The Company enters into contracts with purchasers to sell its oil and natural gas production. Revenue on these contracts is recognized in accordance with the five-step revenue recognition model prescribed in ASC 606. Specifically, revenue is recognized when the Company’s performance obligations under these contracts are satisfied, which generally occurs with the transfer of control of the oil and natural gas to the purchaser. Control is generally considered transferred when the following criteria are met: (i) transfer of physical custody, (ii) transfer of title, (iii) transfer of risk of loss and (iv) relinquishment of any repurchase rights or other similar rights. Given the nature of the products sold, revenue is recognized at a point in time based on the amount of consideration the Company expects to receive in accordance with the price specified in the contract. Consideration under the oil and natural gas marketing contracts is typically received from the purchaser one to two months after production. As of June 30, 2021 and December 31, 2020, the Company had receivables related to contracts with purchasers of approximately $16.3 million and $4.2 million, respectively.

Oil Contracts. The Company’s oil marketing contracts transfer physical custody and title at or near the wellhead, which is generally when control of the oil has been transferred to the purchaser. The oil produced is sold under contracts using market-based pricing which is then adjusted for the differentials based upon delivery location and oil quality. Since the differentials are incurred after the transfer of control of the oil, the differentials are included in oil sales on the consolidated and combined statements of operations as they represent part of the transaction price of the contract.

Natural Gas Contracts. The majority of the Company’s natural gas is sold at the lease location, which is generally when control of the natural gas has been transferred to the purchaser. The natural gas is sold under (i) percentage of proceeds processing contracts or (ii) a hybrid of percentage of proceeds and fee-based contracts. Under the majority of the Company’s contracts, the purchaser gathers the natural gas in the field where it is produced and transports it to natural gas processing plants where NGL products are extracted. The NGL products and remaining residue natural gas are then sold by the purchaser. Under percentage of proceeds and hybrid percentage of proceeds and fee-based contracts, the Company receives a percentage of the value for the extracted liquids and the residue natural gas. Since control of the natural gas transfers upstream of the transportation and processing activities, revenue is recognized as the net amount received from the purchaser.

The Company does not disclose the value of unsatisfied performance obligations under its contracts with customers as it applies the practical exemption in accordance with ASC 606. The exemption, as described in ASC 606-10-50-14(a), applies to variable consideration that is recognized as control of the product is transferred to the customer. Since each unit of product represents a separate performance obligation, future volumes are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required.

The Company enters into contracts with purchasers to sell its oil and natural gas production. Revenue on these contracts is recognized in accordance with the five-step revenue recognition model prescribed in ASC 606. Specifically, revenue is recognized when the Company’s performance obligations under these contracts are satisfied, which generally occurs with the transfer of control of the oil and natural gas to the purchaser. Control is generally considered transferred when the following criteria are met: (i) transfer of physical custody, (ii) transfer of title, (iii) transfer of risk of loss and (iv) relinquishment of any repurchase rights or other similar rights. Given the nature of the products sold, revenue is recognized at a point in time based on the amount of consideration the Company expects to receive in accordance with the price specified in the contract. Consideration under the oil and natural gas marketing contracts is typically received from the purchaser one to two months after production. At December 31, 2020 and 2019, the Company had receivables related to contracts with purchasers of approximately $4.2 million and $2.9 million, respectively.

Natural Gas Contracts. The majority of the Company’s natural gas is sold at the lease location, which is generally when control of the natural gas has been transferred to the purchaser. The natural gas is sold under (i) percentage of proceeds processing contracts or (ii) a hybrid of percentage of proceeds and fee-based contracts. Under the majority of the Company’s contracts, the purchaser gathers the natural gas in the field where it is produced and transports it to natural gas processing plants where natural gas liquid products are extracted. The natural gas liquid products and remaining residue gas are then sold by the purchaser. Under percentage of proceeds and hybrid percentage of proceeds and fee-based contracts, the Company receives a percentage of the value for the extracted liquids and the residue gas. Since control of the natural gas transfers upstream of the transportation and processing activities, revenue is recognized as the net amount received from the purchaser.

Derivatives, Policy [Policy Text Block]

Derivatives. All of the Company’s derivatives are accounted for as non-hedge derivatives and are recorded at estimated fair value in the condensed consolidated balance sheets. All changes in the fair values of its derivative contracts are recorded as gains or losses in the earnings of the periods in which they occur. The Company enters into derivatives under master netting arrangements, which, in an event of default, allows the Company to offset payables to and receivables from the defaulting counterparty. The Company classifies the fair value amounts of derivative assets and liabilities executed under master netting arrangements as net current or noncurrent derivative assets or net current of noncurrent derivative liabilities, whichever the case may be, by commodity and counterparty.

The Company’s credit risk related to derivatives is a counterparties’ failure to perform under derivative contracts owed to the Company. The Company uses credit and other financial criteria to evaluate the credit standing of, and to select, counterparties to its derivative instruments. Although the Company does not obtain collateral or otherwise secure the fair value of its derivative instruments, associated credit risk is mitigated by the Company’s credit risk policies and procedures.

The Company has entered into International Swap Dealers Association Master Agreements (“ISDA Agreements”) with each of its derivative counterparties. The terms of the ISDA Agreements provide the Company and the counterparties with rights of set off upon the occurrence of defined acts of default by either the Company or a counterparty to a derivative, whereby the party not in default may set off all derivative liabilities owed to the defaulting party against all derivative asset receivables from the defaulting party. See Note 5 for additional information.

Income Tax, Policy [Policy Text Block]

Income taxes. The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the carrying amounts for income tax purposes and net operating loss and tax credit carryforwards. The amount of deferred taxes on these temporary differences is determined using the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, as applicable, based on tax rates and laws in the respective tax jurisdiction enacted as of the balance sheet date.

The Company reviews its deferred tax assets for recoverability and establishes a valuation allowance based on projected future taxable income, applicable tax strategies and the expected timing of the reversals of existing temporary differences. A valuation allowance is provided when it is more likely than not (likelihood of greater than 50 percent) that some portion or all the deferred tax assets will not be realized. The Company has not established a valuation allowance as of June 30, 2021 and December 31, 2020.

The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based upon the technical merits of the position. If all or a portion of the unrecognized tax benefit is sustained upon examination by the taxing authorities, the tax benefit will be recognized as a reduction to the Company’s deferred tax liability and will affect the Company’s effective tax rate in the period it is recognized. See Note 13 for addition information.

The Company records any tax-related interest charges as interest expense and any tax-related penalties as other expense in the condensed consolidated and combined statements of operations of which there have been none to date.

Prior to August 21, 2020, the Predecessors did not record a provision for U.S. federal income tax because the Predecessors were treated as partnerships for U.S. federal income tax purposes and, as such, the partners of the Predecessors reported their share of the Company’s income or loss on their respective income tax returns. The Predecessors were required to file tax returns on Form 1065 with the Internal Revenue Service (“IRS”). The 2017 to 2019 tax years remain open to examination.

The Predecessors recognize in their condensed consolidated and combined financial statements the effect of a tax position, if that position is more likely than not to be sustained upon examination, including resolution of any appeals or litigation processes, based upon the technical merits of the position. Tax positions taken related to the Predecessors’ status as limited partnerships, and state filing requirements have been reviewed, and management is of the opinion that they would more likely than not be sustained by examination. Accordingly, the Company has not recorded an income tax liability for uncertain tax benefits for periods prior to August 21, 2020. Under the new centralized partnership audit rules effective for tax years beginning after 2017, the IRS assesses and collects underpayments of tax from the partnership instead of from each partner. The partnership may be able to pass the adjustments through to its partners by making a push-out election or, if eligible, by electing out of the centralized partnership audit rules. The collection of tax from the partnership is only an administrative convenience for the IRS to collect any underpayment of income taxes including interest and penalties. Income taxes on partnership income, regardless of who pays the tax or when the tax is paid, is attributed to the partners. Any payment made by the Company as a result of an IRS examination will be treated as an expense from the Company in the condensed consolidated and combined financial statements.

Share-based Payment Arrangement [Policy Text Block]

Stock-based compensation. Stock-based compensation expense for stock option awards is measured at the grant date or modification date, as applicable, using the fair value of the award, and is recorded, net of forfeitures, on a straight-line basis over the requisite service period of the respective award. The fair value of stock option awards is determined on the grant date or modification date, as applicable, using a Black-Scholes option valuation model with the following inputs; (i) the grant date’s closing stock price, (ii) the exercise price of the stock options, (iii) the expected term of the stock option, (iv) the estimated risk-free adjusted interest rate for the duration of the option’s expected term, (v) the expected annual dividend yield on the underlying stock and (vi) the expected volatility over the option’s expected term.

Stock-based compensation for HighPeak Energy common stock issued to directors with no restrictions thereon, is measured at the grant date using the fair value of the award and is recognized as stock-based compensation in the accompanying financial statements immediately. Stock-based compensation for restricted stock awarded to outside directors is measured at the grant date using the fair value of the award and is recognized on a straight-line basis over the requisite service period of the respective award.

Stock-based compensation. Stock-based compensation expense for stock options (“Equity Awards”) is measured at the grant date or modification date, as applicable, using the fair value of the award, and is recorded, net of forfeitures, on a straight-line basis over the requisite service period of the respective award. The fair value of Equity Awards is determined on the grant date or modification date, as applicable, using a Black-Scholes option valuation model with the following inputs; (i) the grant date’s closing stock price, (ii) the exercise price of the stock options, (iii) the expected term of the stock option, (iv) the estimated risk-free adjusted interest rate for the duration of the option’s expected term, (v) the expected annual dividend yield on the underlying stock and (vi) the expected volatility over the option’s expected term.

Stock-based compensation for HighPeak Energy common stock issued to directors with no restrictions thereon, as was the case with the 62,500 shares issued in November 2020 to the non-management directors, is measured at the grant date using the fair value of the award and is recorded as stock-based compensation in the accompanying financial statements immediately. If restricted stock is awarded to employees or directors in the future, as the case may be, stock-based compensation will be recognized on a straight-line basis over the requisite service period of the respective award.

Segment Reporting, Policy [Policy Text Block]

Segments. Based on the Company’s organizational structure, the Company has one operating segment, which is oil and natural gas development, exploration and production. In addition, the Company has a single, company-wide management team that allocates capital resources to maximize profitability and measures financial performance as a single enterprise.

Effect of Covid-19 Pandemic [Policy Text Block]

Impact of the COVID-19 Pandemic. A novel strain of the coronavirus disease 2019 ("COVID-19") surfaced in late 2019 and spread around the world, including to the United States. In March 2020, the World Health Organization declared COVID-19 a pandemic, and the President of the United States declared the COVID-19 outbreak a national emergency. The COVID-19 pandemic significantly affected the global economy, disrupted global supply chains and created significant volatility in the financial markets. In addition, the COVID-19 pandemic resulted in travel restrictions, business closures and other restrictions that have disrupted the demand for oil throughout the world and when combined with pressures on the global supply-demand balance for oil and related products, resulted in significant volatility in oil prices beginning late February 2020. The length of this demand disruption is unknown, and there is significant uncertainty regarding the long-term impact of the effects of the COVID-19 pandemic to global oil demand.

Impact of the COVID-19 Pandemic. A novel strain of the coronavirus disease 2019 ("COVID-19") surfaced in late 2019 and spread around the world, including to the United States. In March 2020, the World Health Organization declared COVID-19 a pandemic, and the President of the United States declared the COVID-19 outbreak a national emergency. The COVID-19 pandemic significantly affected the global economy, disrupted global supply chains and created significant volatility in the financial markets. In addition, the COVID-19 pandemic resulted in travel restrictions, business closures and other restrictions that have disrupted the demand for oil throughout the world and when combined with pressures on the global supply-demand balance for oil and related products, resulted in significant volatility in oil prices beginning late February 2020. The length of this demand disruption is unknown, and there is significant uncertainty regarding the long-term impact of the effects of the COVID-19 pandemic to global oil demand, which negatively impacted the Company's results of operations and led to a significant reduction in the Company's 2020 capital activities.

New Accounting Pronouncements, Policy [Policy Text Block]

Adoption of new accounting standards. In December 2019, the FASB issued Accounting Standards Update (“ASU”) No. 2019-12, “Simplifying the Accounting for Income Taxes (Topic 740).” The new guidance simplifies the accounting for income taxes by eliminating certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period, hybrid taxes, and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes. Amendments are to be applied prospectively, except for certain amendments that are to be applied either retrospectively or with a modified retrospective approach through a cumulative effect adjustment recorded to retained earnings. The Company adopted ASU 2019-12 on January 1, 2021, which did not have a material impact on the Company's condensed consolidated and combined financial statements.

New accounting pronouncements. In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”), and in January 2021, issued ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope (“ASU 2021-01”), to provide clarifying guidance regarding the scope of Topic 848. ASU 2020-04 was issued to provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. Generally, the guidance is to be applied as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. ASU 2020-04 and ASU 2021-01 are effective for all entities through December 31, 2022. As of June 30, 2021, the Company has not elected to use the optional guidance and continues to evaluate the options provided by ASU 2020-04 and ASU 2021-01. See Note 7 for discussion of the use of the London Interbank Offered Rate (“LIBOR”) in connection with borrowings under the Credit Agreement.

The Company has evaluated other recently issued, but not yet effective, accounting pronouncements and does not believe they would have a material effect on the Company’s condensed consolidated and combined financial statements.

Adoption of new accounting standards. In February 2016, the FASB issued Accounting Standards Update ("ASU") 2016-02, "Leases (Topic 842)" ("ASC 842"), which supersedes the lease recognition requirements in ASC 840, "Leases" ("ASC 840"), and requires lessees to recognize lease assets and lease liabilities for those leases previously classified as operating leases. The Company adopted ASC 842 as of August 22, 2020 using the modified retrospective transition method. The Company elected to apply the transition guidance under ASU 2018-11, "Leases (Topic 842) Targeted Improvements," in which ASC 842 is applied at the adoption date, while the comparative periods will continue to be reported in accordance with historic accounting under ASC 840. This standard does not apply to leases to explore for or use minerals, oil or natural gas resources, including the right to explore for those natural resources and rights to use the land in which those natural resources are contained.

ASC 842 allowed for the election of certain practical expedients at adoption to ease the burden of implementation. At implementation, the Company elected to (i) maintain the historical lease classification for leases prior to August 22, 2020, (ii) maintain the historical accounting treatment for land easements that existed at adoption, (iii) use historical practices in assessing the lease term of existing contracts at adoption, (iv) combine lease and non-lease components of a contract as a single lease and (v) not record short-term leases in the consolidated balance sheet, all in accordance with ASC 842.

The adoption of ASC 842 did not have a material impact on the consolidated statements of operations and had no impact on the Company's cash flows. The Company did not record a change to its opening retained earnings as of August 22, 2020, as there was no material change to the timing or pattern of recognition of lease costs due to the adoption of ASC 842.

New accounting pronouncements. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"). ASU 2016-13 replaces the incurred loss impairment model with an expected credit loss impairment model for financial instruments, including trade receivables. The amendment requires entities to consider forward-looking information to estimate expected credit losses, resulting in earlier recognition of losses for receivables that are current or not yet due, which were not considered under the previous accounting guidance. The Company has evaluated the ASU 2016-03 and does not believe its adoption will have a material impact on the Company’s consolidated financial statements.

In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”). The amendments in this update remove certain exceptions of Topic 740 including: exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or gain from other items; exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment; exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary; exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. There are also additional areas of guidance in regards to franchise and other taxes partially based on income and the interim recognition of enactment of tax laws and rate changes. The provisions of this ASU are effective for years beginning after December 15, 2020.

In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (ASC 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”). This ASU provides temporary optional expedients and exceptions to GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as the SOFR. Entities can elect not to apply certain modification accounting requirements to contracts affected by reference rate reform if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification rate date or reassess a previous accounting determination. Entities can also elect various optional expedients that would allow them to continue applying hedge accounting relationships affected by reference rate reform if certain criteria are met.

In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848): Scope” (“ASU 2021-01”). This ASU clarifies that all derivative instruments affected by changes to the interest rates used for discounting, margining or contract price alignment (“The Discounting Transition”) are in the scope of ASC 848 and therefore qualify for the available temporary optional expedients and exceptions. As such, entities that employ derivatives that are the designated hedged item in a hedge relationship where perfect effectiveness is assumed can continue to apply hedge accounting without de-designating the hedging relationship to the extent such derivatives are impacted by the Discounting Transition.

The Company has evaluated recently issued, but not yet adopted, accounting pronouncements and does not believe they would have a material effect on the Company’s condensed consolidated and combined financial statements.

Receivable [Policy Text Block]

Notes receivable. Pursuant to an agreement between HPK LP and Pure, whereby Pure obtained extensions to complete its initial business combination to August 21, 2020, HPK LP made loans to Pure totaling $11.7 million and $4.2 million as of August 21, 2020 and December 31, 2019, respectively. The Company routinely reviews outstanding balances and establishes allowances for bad debts equal to the estimable portions of notes receivable for which failure to collect is considered probable. As of December 31, 2019, the Company had no allowance for doubtful accounts recorded. See additional information regarding Pure and the notes receivable cancellations in relations to the HighPeak business combination in Note 10.

Deposits, Policy [Policy Text Block]

Deposits. During 2019, HPK LP paid $61.5 million to Grenadier Energy Partners II, LLC (“Grenadier”) as a non-refundable deposit for an acquisition (the “Grenadier Acquisition”) and an additional $15.0 million extension payment was paid in 2020 that was to be accounted for as additional consideration for the Grenadier Acquisition upon closing. The Grenadier Acquisition was terminated in April 2020 and the $76.5 million in deposits and extension payments were charged to expense. In addition, the Company has paid the Texas Railroad Commission $50,000 in lieu of a plugging bond as statutorily required.

Note 2 - Basis of Presentation and Summary of Significant Accounting Policies (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes Tables

Property, Plant and Equipment [Table Text Block]

	June 30, 2021		December 31, 2020
Land	$	731	$	725
Information technology		208		292
Transportation equipment		92		41
Leasehold improvements		17		24
Field equipment		9		10
Total other property and equipment, net	$	1,057	$	1,092

	Successor		Predecessors
	December 31, 2020		December 31, 2019
	(in thousands)
Land	$	725	$	580
Information technology		292		459
Transportation equipment		41		-
Leasehold improvements		24		37
Field equipment		10		12
Total other property and equipment, net	$	1,092	$	1,088

Note 4 - Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2021

Notes Tables

Fair Value, Liabilities Measured on Recurring Basis [Table Text Block]

	As of June 30, 2021
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Liabilities:
Commodity price derivatives	$	-	$	12,558	$	-	$	12,558

Note 5 - Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2021

Notes Tables

Derivative Instruments, Gain (Loss) [Table Text Block]

	Three Months Ended June 30,					Six Months Ended June 30,
	2021			2020		2021			2020
	Successor			Predecessor		Successor			Predecessor
Noncash derivative gain (loss), net	$	(12,558	)	$	-	$	(12,558	)	$	-
Cash payments on settled derivative instruments, net		(1,038	)		-		(1,038	)		-
Derivative gain (loss), net	$	(13,596	)	$	-	$	(13,596	)	$	-

Schedule of Price Risk Derivatives [Table Text Block]

	2021						2022
	Third Quarter		Fourth Quarter		Total		First Quarter		Second Quarter		Total
Oil Price Swaps
Volume (Bbls)		460,000		460,000		920,000		450,000		302,500		752,500
Price per Bbl	$	61.91	$	61.91	$	61.91	$	61.91	$	62.16	$	61.95

Note 6 - Exploratory Well Costs (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes Tables

Capitalized Exploratory Well Costs, Roll Forward [Table Text Block]

	Six Months Ended June 30, 2021
Beginning capitalized exploratory well costs	$	32,592
Additions to exploratory well costs		75,289
Reclassification to proved properties		(106,749	)
Exploratory well costs charged to exploration and abandonment expense		-
Ending capitalized exploratory well costs	$	1,132

	Year Ended December 31, 2020
	Successor			Predecessors
	August 22, through December 31, 2020			January 1, through August 21, 2020			Year Ended December 31, 2019

Beginning capitalized exploratory well costs	$	41,524		$	11,427		$	-
Additions to exploratory well costs pending the determination of proved reserves		53,462			48,169			58,435
Reclassification due to determination of proved reserves		(62,394	)		(18,072	)		(47,008	)
Exploratory well costs charged to exploration and abandonment expense		-			-			-
Ending capitalized exploratory well costs	$	32,592		$	41,524		$	11,427

Note 7 - Long-term Debt (Tables)

6 Months Ended

Jun. 30, 2021

Notes Tables

Schedule of Long-term Debt Instruments [Table Text Block]

	June 30,			December 31,
	2021			2020
Revolving Credit Facility due 2024	$	14,000		$	-
Debt issuance costs, net (a)		(2,082	)		-
Total debt		11,918			-
Less current portion of long-term debt		-			-
Long-term debt, net	$	11,918		$	-

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
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Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04(a))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e24072-122690

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-Name Accounting Standards Codification
-Topic 835
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-Section 45
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
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Reference 5: http://www.xbrl.org/2003/role/exampleRef
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-Name Accounting Standards Codification
-Topic 470
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-Section 55
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-URI http://asc.fasb.org/extlink&oid=123466577&loc=SL123495735-112612

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
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Reference 7: http://www.xbrl.org/2003/role/exampleRef
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-Name Accounting Standards Codification
-Topic 470
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-Paragraph 69E
-URI http://asc.fasb.org/extlink&oid=123466577&loc=SL123495743-112612

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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-Topic 505
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
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-Topic 505
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=123599511&loc=d3e64711-112823

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-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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+ Details

Note 8 - Asset Retirement Obligations (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes Tables

Schedule of Change in Asset Retirement Obligation [Table Text Block]

	Six Months Ended June 30, 2021
Beginning asset retirement obligations	$	2,293
Liabilities incurred from new wells		610
Revision of estimates (a)		(10	)
Accretion of discount		72
Ending asset retirement obligations	$	2,965

	Year Ended December 31, 2020
	Successor			Predecessors
	August 22, 2020 through December 31, 2020			January 1, 2020 through August 21, 2020		Year Ended December 31, 2019
Beginning asset retirement obligations	$	2,398		$	2,212	$	520
Liabilities incurred from new wells		84			97		1,511
Liabilities settled upon plugging and abandoning wells		(29	)		-		(51	)
Revision of estimates (a)		(211	)		-		160
Accretion of discount		51			89		72
Ending asset retirement obligations	$	2,293		$	2,398	$	2,212

Note 9 - Incentive Plans (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes Tables

Shares Available Under Long-term Incentive Plan [Table Text Block]

	June 30, 2021
Approved and authorized awards		12,047,866
Awards issued under plan		(9,681,506	)
Awards available for future grant		2,366,360

	December 31, 2020
Approved and authorized awards		11,907,006
Awards granted under plan		(9,767,995	)
Awards available for future grant		2,139,011

Share-based Payment Arrangement, Option, Activity [Table Text Block]

	Stock Options			Exercise Price		Remaining Term in Years		Intrinsic Value (in thousands)
Outstanding at August 22, 2020		-
Awards granted		9,705,495		$	10.00
Outstanding at December 31, 2020		9,705,495		$	10.00		9.7	$	57,942
Exercised		(154,268	)	$	10.00
Outstanding at June 30, 2021		9,551,227		$	10.00		9.2	$	-

Vested at December 31, 2020		7,204,163		$	10.00		9.7	$	43,009
Exercisable at December 31, 2020		7,204,163		$	10.00		9.7	$	43,009

Vested at June 30, 2021		7,049,895		$	10.00		9.2	$	2,232
Exercisable at June 30, 2021		7,049,895		$	10.00		9.2	$	2,232

	Stock Options		Exercise Price		Remaining Term in Years		Intrinsic Value (in thousands)
Outstanding at August 22, 2020		-
Awards granted		9,705,495	$	10.00
Awards forfeited		-
Exercised		-
Outstanding at December 31, 2020		9,705,495	$	10.00		9.7	$	57,942

Vested at December 31, 2020		7,204,163	$	10.00		9.7	$	43,009
Exercisable at December 31, 2020		7,204,163	$	10.00		9.7	$	43,009

Note 10 - Commitments and Contingencies (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes Tables

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

	June 30, 2021
Remainder of 2021	$	164
2022		79
Total lease payments		243
Less present value discount		(4	)
Present value of lease liabilities	$	239

	Successor
	December 31, 2020
2021	$	439
2022		79
Total lease payments		518
Less present value discount		(10	)
Present value of lease liabilities	$	508

Note 13 - Income Taxes (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes Tables

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	Six Months Ended June 30, 2021
Current tax expense	$	-
Deferred tax expense		2,535
Income tax expense	$	2,535

	August 22, 2020 through December 31, 2020
Current tax benefit	$	(3,176	)
Deferred tax benefit		(1,047	)
Income tax benefit	$	(4,223	)

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	Six Months Ended June 30, 2021
Income tax expense at U.S. federal statutory rate	$	2,735
Limited tax benefit due to stock-based compensation		(81	)
Other		(119	)
Income tax expense	$	2,535
Effective income tax rate		19.5	%

	August 22, 2020 through December 31, 2020
Income tax expense (benefit) at U.S. federal statutory rate	$	(4,337	)
Limited tax benefit due to stock-based compensation		127
Other		(13	)
Income tax expense (benefit)	$	(4,223	)
Effective income tax rate		20.4	%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	June 30, 2021			December 31, 2020
Deferred tax assets:
Net operating loss carryforwards	$	16,770		$	9,725
Stock-based compensation		3,419			3,124
Unrecognized derivative losses		2,637			-
Other		107			31
Less: Valuation allowance		-			-
Net deferred tax assets		22,933			12,880
Deferred tax liabilities:
Oil and natural gas properties, principally due to differences in basis and depreciation and the deduction of intangible drilling costs for tax purposes		(64,365	)		(51,778	)
Net deferred tax liabilities	$	(41,432	)	$	(38,898	)

	December 31, 2020
Deferred tax assets:
Net operating loss carryforwards	$	9,725
Stock-based compensation		3,124
Other		31
Less: Valuation allowance		-
Net deferred tax assets		12,880

Deferred tax liabilities:
Oil and natural gas properties, principally due to differences in basis and depreciation and the deduction of intangible drilling costs for tax purposes		(51,778	)
Net deferred tax liabilities	$	(38,898	)

Note 14 - Earnings Per Share (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three			Six
	Months Ended			Months Ended
	June 30,			June 30,
	2021			2021
Net income as reported	$	5,743		$	10,487
Participating basic earnings (a)		(407	)		(743	)
Basic earnings attributable to common stockholders		5,336			9,744
Reallocation of participating earnings		-			1
Diluted net income attributable to common stockholders	$	5,336		$	9,745

Basic weighted average shares outstanding		92,676			92,634
Dilutive warrants and unvested stock options		-			196
Diluted weighted average shares outstanding		92,676			92,830

	Successor
	August 22, through December 31, 2020
Net income (loss) attributable to common stockholders	$	(16,429	)
Participating share-based earnings (a)		-
Basic and diluted net income (loss) attributable to common stockholders	$	(16,429	)

Basic weighted average shares outstanding		91,629
Dilution attributable to stock-based compensation awards		-
Diluted weighted average shares outstanding		91,629

Note 2 - Basis of Presentation and Summary of Significant Accounting Policy (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes Tables

Condensed Financial Statements [Table Text Block]

	Predecessors for the Year Ended December 31, 2019
(in thousands)	HPK LP from August 28, 2019 (Inception) through December 31, 2019			HighPeak I for the Year Ended December 31, 2019			Eliminations			Combined Year Ended December 31, 2019
Operating Revenues:
Crude oil sales	$	3,695		$	4,154					$	7,849
Natural gas and NGL sales		163			103						266
Total operating revenues		3,858			4,257						8,115
Operating Costs and Expenses:
Oil and natural gas production		1,578			1,794						3,372
Production and ad valorem taxes		188			261						449
Exploration and abandonments		33			2,817						2,850
Depletion, depreciation and amortization		1,612			2,657						4,269
Accretion of discount on asset retirement obligations		34			38						72
General and administrative		6,159			2,523						8,682
Total operating costs and expenses		9,604			10,090						19,694
Loss from operations		(5,746	)		(5,833	)					(11,579	)
Equity in losses of affiliate		-			(3,175	)		3,175			-
Net loss	$	(5,746	)	$	(9,008	)	$	3,175		$	(11,579	)



CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(5,746	)	$	(9,008	)	$	3,175		$	(11,579	)
Adjustments to reconcile net loss to net cash provided by (used in) operations:
Exploration and abandonment expense		33			2,817			-			2,850
Depletion, depreciation and amortization expense		1,612			2,657			-			4,269
Accretion expense		34			38			-			72
Equity in loss off affiliate		-			3,175			(3,175	)		-
Changes in operating assets and liabilities:
Accounts receivable		(1,355	)		1,425			-			70
Inventory and other current assets		(88	)		(121	)		-			(209	)
Accounts payable and accrued liabilities		3,010			745			-			3,755
Net cash provided by (used in) operating activities		(2,500	)		1,728			-			(772	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and natural gas properties		(45,318	)		(15,687	)		-			(61,005	)
Changes in working capital associated with oil and natural gas property additions		19,097			5,585			-			24,682
Acquisitions of oil and natural gas properties		(2,456	)		(8,462	)		-			(10,918	)
Investment in affiliate		-			(7,796	)		7,796			-
Issuance of notes receivable		(4,193	)		-			-			(4,193	)
Net cash used in investing activities		(32,870	)		(26,360	)		7,796			(51,434	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Contributions from partners		58,081			23,738			(7,796	)		74,023
Net cash provided by financing activities		58,081			23,738			(7,796	)		74,023
Net increase (decrease) in cash and cash equivalents		22,711			(894	)		-			21,817
Cash and cash equivalents, beginning of period		-			894			-			894
Cash and cash equivalents, end of period	$	22,711		$	-		$	-		$	22,711

Property, Plant and Equipment [Table Text Block]

	June 30, 2021		December 31, 2020
Land	$	731	$	725
Information technology		208		292
Transportation equipment		92		41
Leasehold improvements		17		24
Field equipment		9		10
Total other property and equipment, net	$	1,057	$	1,092

	Successor		Predecessors
	December 31, 2020		December 31, 2019
	(in thousands)
Land	$	725	$	580
Information technology		292		459
Transportation equipment		41		-
Leasehold improvements		24		37
Field equipment		10		12
Total other property and equipment, net	$	1,092	$	1,088

Note 5 - Exploratory Well Costs (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes Tables

Capitalized Exploratory Well Costs, Roll Forward [Table Text Block]

	Six Months Ended June 30, 2021
Beginning capitalized exploratory well costs	$	32,592
Additions to exploratory well costs		75,289
Reclassification to proved properties		(106,749	)
Exploratory well costs charged to exploration and abandonment expense		-
Ending capitalized exploratory well costs	$	1,132

	Year Ended December 31, 2020
	Successor			Predecessors
	August 22, through December 31, 2020			January 1, through August 21, 2020			Year Ended December 31, 2019

Beginning capitalized exploratory well costs	$	41,524		$	11,427		$	-
Additions to exploratory well costs pending the determination of proved reserves		53,462			48,169			58,435
Reclassification due to determination of proved reserves		(62,394	)		(18,072	)		(47,008	)
Exploratory well costs charged to exploration and abandonment expense		-			-			-
Ending capitalized exploratory well costs	$	32,592		$	41,524		$	11,427

Note 7 - Asset Retirement Obligations (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes Tables

Schedule of Change in Asset Retirement Obligation [Table Text Block]

	Six Months Ended June 30, 2021
Beginning asset retirement obligations	$	2,293
Liabilities incurred from new wells		610
Revision of estimates (a)		(10	)
Accretion of discount		72
Ending asset retirement obligations	$	2,965

	Year Ended December 31, 2020
	Successor			Predecessors
	August 22, 2020 through December 31, 2020			January 1, 2020 through August 21, 2020		Year Ended December 31, 2019
Beginning asset retirement obligations	$	2,398		$	2,212	$	520
Liabilities incurred from new wells		84			97		1,511
Liabilities settled upon plugging and abandoning wells		(29	)		-		(51	)
Revision of estimates (a)		(211	)		-		160
Accretion of discount		51			89		72
Ending asset retirement obligations	$	2,293		$	2,398	$	2,212

Note 8 - Incentive Plans (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes Tables

Shares Available Under Long-term Incentive Plan [Table Text Block]

	June 30, 2021
Approved and authorized awards		12,047,866
Awards issued under plan		(9,681,506	)
Awards available for future grant		2,366,360

	December 31, 2020
Approved and authorized awards		11,907,006
Awards granted under plan		(9,767,995	)
Awards available for future grant		2,139,011

Share-based Payment Arrangement, Option, Activity [Table Text Block]

	Stock Options			Exercise Price		Remaining Term in Years		Intrinsic Value (in thousands)
Outstanding at August 22, 2020		-
Awards granted		9,705,495		$	10.00
Outstanding at December 31, 2020		9,705,495		$	10.00		9.7	$	57,942
Exercised		(154,268	)	$	10.00
Outstanding at June 30, 2021		9,551,227		$	10.00		9.2	$	-

Vested at December 31, 2020		7,204,163		$	10.00		9.7	$	43,009
Exercisable at December 31, 2020		7,204,163		$	10.00		9.7	$	43,009

Vested at June 30, 2021		7,049,895		$	10.00		9.2	$	2,232
Exercisable at June 30, 2021		7,049,895		$	10.00		9.2	$	2,232

	Stock Options		Exercise Price		Remaining Term in Years		Intrinsic Value (in thousands)
Outstanding at August 22, 2020		-
Awards granted		9,705,495	$	10.00
Awards forfeited		-
Exercised		-
Outstanding at December 31, 2020		9,705,495	$	10.00		9.7	$	57,942

Vested at December 31, 2020		7,204,163	$	10.00		9.7	$	43,009
Exercisable at December 31, 2020		7,204,163	$	10.00		9.7	$	43,009

Note 9 - Commitments and Contingencies (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes Tables

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

	June 30, 2021
Remainder of 2021	$	164
2022		79
Total lease payments		243
Less present value discount		(4	)
Present value of lease liabilities	$	239

	Successor
	December 31, 2020
2021	$	439
2022		79
Total lease payments		518
Less present value discount		(10	)
Present value of lease liabilities	$	508

Note 10 - Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2020

Notes Tables

Condensed Income Statement [Table Text Block]

	Nine Months Ended September 30, 2019
Operating Revenues:
Crude oil sales	$	719
Natural gas and natural gas liquid sales		223
Total operating revenues		942
Operating costs and expenses:
Oil and natural gas production		1,190
Production and ad valorem taxes		59
Exploration and abandonment		756
Depletion, depreciation and amortization		650
Accretion of discount on asset retirement obligations		86
General and administrative		2,891
Abandoned project		1,122
Total operating costs and expenses		6,754
Loss from operations		(5,812	)
Interest income		107
Net loss	$	(5,705	)

Condensed Balance Sheet [Table Text Block]

	(a)			(b)			(c)		(d)			(e)			(f)
	HPK LP			Pure			HighPeak Employees, Inc.		Issuance of HighPeak Energy Common Stock			Cash Offering Costs			Deferred Tax Liability			Beginning Balance Sheet on August 22, 2020
Cash and cash equivalents	$	1,943		$	1		$	99	$	92,554		$	(8,114	)	$	-		$	86,483
Accounts receivable		3,001			-			26		-			-			-			3,027
Total current assets		4,944			1			125		92,554			(8,114	)		-			89,510
Total oil and gas properties, net		452,039			-			-		-			-			-			452,039
Other property and equipment, net		436			-			-		-			-			-			436
Total assets	$	457,419		$	1		$	125	$	92,554		$	(8,114	)	$	-		$	541,985
Current liabilities	$	35,794		$	2,025		$	77	$	(9,538	)	$	-		$	-		$	28,358
Deferred income tax liability		-			-			-		-			-			39,946			39,946
Notes payable (receivable)		(11,675	)		11,675			-		-			-			-			-
Asset retirement obligations		2,398			-			-		-			-			-			2,398
Partners' capital		521,682			-			-		(521,682	)		-			-			-
Common stock		-			-			-		9			-			-			9
Additional paid-in capital		-			(13,699	)		48		623,765			(8,114	)		(39,946	)		562,054
Accumulated deficit		(90,780	)		-			-		-			-			-			(90,780	)
Total stockholders' equity/partner's capital		430,902			(13,699	)		48		102,092			(8,114	)		(39,946	)		471,283
Total liabilities and stockholders' equity/partners' capital	$	457,419		$	1		$	125	$	92,554		$	(8,114	)	$	-		$	541,985

Business Acquisition, Pro Forma Information [Table Text Block]

	(Unaudited Pro Forma) Year Ended December 31,
	2020			2019
Total revenues	$	24,623		$	9,057
Net income attributable to Common Stock		(23,310	)		(8,838	)
Basic and diluted net loss per share		(0.25	)		(0.10	)

Note 12 - Income Taxes (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes Tables

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	Six Months Ended June 30, 2021
Current tax expense	$	-
Deferred tax expense		2,535
Income tax expense	$	2,535

	August 22, 2020 through December 31, 2020
Current tax benefit	$	(3,176	)
Deferred tax benefit		(1,047	)
Income tax benefit	$	(4,223	)

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	Six Months Ended June 30, 2021
Income tax expense at U.S. federal statutory rate	$	2,735
Limited tax benefit due to stock-based compensation		(81	)
Other		(119	)
Income tax expense	$	2,535
Effective income tax rate		19.5	%

	August 22, 2020 through December 31, 2020
Income tax expense (benefit) at U.S. federal statutory rate	$	(4,337	)
Limited tax benefit due to stock-based compensation		127
Other		(13	)
Income tax expense (benefit)	$	(4,223	)
Effective income tax rate		20.4	%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	June 30, 2021			December 31, 2020
Deferred tax assets:
Net operating loss carryforwards	$	16,770		$	9,725
Stock-based compensation		3,419			3,124
Unrecognized derivative losses		2,637			-
Other		107			31
Less: Valuation allowance		-			-
Net deferred tax assets		22,933			12,880
Deferred tax liabilities:
Oil and natural gas properties, principally due to differences in basis and depreciation and the deduction of intangible drilling costs for tax purposes		(64,365	)		(51,778	)
Net deferred tax liabilities	$	(41,432	)	$	(38,898	)

	December 31, 2020
Deferred tax assets:
Net operating loss carryforwards	$	9,725
Stock-based compensation		3,124
Other		31
Less: Valuation allowance		-
Net deferred tax assets		12,880

Deferred tax liabilities:
Oil and natural gas properties, principally due to differences in basis and depreciation and the deduction of intangible drilling costs for tax purposes		(51,778	)
Net deferred tax liabilities	$	(38,898	)

Note 13 - Earnings (Loss) Per Share (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three			Six
	Months Ended			Months Ended
	June 30,			June 30,
	2021			2021
Net income as reported	$	5,743		$	10,487
Participating basic earnings (a)		(407	)		(743	)
Basic earnings attributable to common stockholders		5,336			9,744
Reallocation of participating earnings		-			1
Diluted net income attributable to common stockholders	$	5,336		$	9,745

Basic weighted average shares outstanding		92,676			92,634
Dilutive warrants and unvested stock options		-			196
Diluted weighted average shares outstanding		92,676			92,830

	Successor
	August 22, through December 31, 2020
Net income (loss) attributable to common stockholders	$	(16,429	)
Participating share-based earnings (a)		-
Basic and diluted net income (loss) attributable to common stockholders	$	(16,429	)

Basic weighted average shares outstanding		91,629
Dilution attributable to stock-based compensation awards		-
Diluted weighted average shares outstanding		91,629

Note 17 - Supplemental Oil and Gas Disclosures (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2020

Notes Tables

Capitalized Costs Relating to Oil and Gas Producing Activities Disclosure [Table Text Block]

	Successor			Predecessors
	December 31, 2020			December 31, 2019
	(in thousands)
Proved properties	$	367,372		$	178,835
Unproved properties		152,741			227,525
Total capitalized costs		520,113			406,360
Less: accumulated depletion		(17,477	)		(1,566	)
Net capitalized costs	$	502,636		$	404,794

Cost Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities Disclosure [Table Text Block]

	Year Ended December 31, 2020
	Successor			Predecessors
	August 22, 2020 through December 31, 2020			January 1, 2020 through August 21, 2020		Year Ended December 31, 2019
Acquisition costs:
Proved properties	$	-		$	585	$	4,635
Unproved properties		1,181			2,753		6,288
Total acquisition costs		1,181			3,338		10,923
Exploration costs		52,837			48,801		59,349
Development costs		11,757			863		54
Oil and gas expenditures		65,775			53,002		70,326
Asset retirement obligations, net		(105	)		98		316
Total costs incurred	$	65,670		$	53,100	$	70,642

Results of Operations for Oil and Gas Producing Activities Disclosure [Table Text Block]

	Year Ended December 31, 2020
	Successor			Predecessors
	August 22, 2020 through December 31, 2020			January 1, 2020 through August 21, 2020			Year Ended December 31, 2019
Oil, NGL and natural gas sales	$	16,400		$	8,223		$	8,115
Lease operating expenses		2,653			4,870			3,372
Production and ad valorem taxes		886			566			449
Exploration and abandonment expense		5,032			4			2,850
Depletion, depreciation and amortization expense		9,877			6,385			4,269
Accretion of discount on asset retirement obligations		51			89			72
Results of operations from oil and gas production activities	$	(2,099	)	$	(3,691	)	$	(2,897	)

Schedule of Proved Developed and Undeveloped Reserve [Table Text Block]

	Crude Oil (MBbl)			Natural Gas (MMcf)			NGL (MBbl)			Total (MBoe)
*Predecessors*
Proved Reserves at January 1, 2019		2,914			809			222			3,271
Contribution from HighPeak II		973			569			78			1,146
Extensions and discoveries		5,413			2,528			759			6,593
Revisions of previous estimates		217			887			290			655
Production		(145	)		(139	)		-			(168	)
Proved Reserves at December 31, 2019		9,372			4,654			1,349			11,497
Purchase of minerals in place		44			36			-			50
Extensions and discoveries		1,008			252			67			1,117
Revisions of previous estimates		(1,555	)		(1,144	)		(374	)		(2,120	)
Production		(236	)		(87	)		(20	)		(270	)
Proved Reserves at August 21, 2020		8,633			3,711			1,022			10,274

*Successor*
Proved Reserves at August 22, 2020		8,633			3,711			1,022			10,274
Extensions and discoveries		11,977			5,215			1,433			14,279
Revisions of previous estimates		(1,180	)		(875	)		(277	)		(1,603	)
Production		(398	)		(112	)		(18	)		(435	)
Proved Reserves at December 31, 2020		19,032			7,939			2,160			22,515

Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities [Table Text Block]

	Successor December 31, 2020		Predecessors December 31, 2019
Proved Developed Reserves ⁽¹⁾
Oil (MBbl)		8,730		4,091
Natural gas (MMcf)		3,572		1,952
Natural gas liquids (MBbl)		957		548
Total (MBoe)		10,282		4,964
Proved Undeveloped Reserves
Oil (MBbl)		10,302		5,281
Natural gas (MMcf)		4,367		2,702
Natural gas liquids (MBbl)		1,203		801
Total (MBoe)		12,233		6,533
Total Proved Reserves
Oil (MBbl)		19,032		9,372
Natural gas (MMcf)		7,939		4,654
Natural gas liquids (MBbl)		2,160		1,349
Total (MBoe)		22,515		11,497

Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves Disclosure [Table Text Block]

	Successor December 31, 2020			Predecessors December 31, 2019
Future cash inflows	$	740,859		$	502,961
Future production costs		(217,025	)		(127,897	)
Future development costs		(117,887	)		(78,360	)
Future income tax expense		(25,824	)		(2,640	)
Future net cash flows		380,123			294,064
Discount to present value at 10% annual rate		(157,931	)		(154,043	)
Standardized measure of discounted future net cash flows	$	222,192		$	140,021

Schedule of Changes in Standardized Measure of Discounted Future Net Cash Flows [Table Text Block]

	Year Ended December 31, 2020 (2)			Year Ended December 31, 2019 (2)
Standardized measure of discounted future net cash flows, beginning of year	$	140,021		$	31,118
Contribution of HighPeak II to Predecessors		-			10,488
Sales of oil and natural gas, net of production costs		(15,648	)		(4,294	)
Extensions and discoveries, net of future development costs		172,478			85,626
Net changes in prices and production costs		(50,728	)		(6,755	)
Changes in estimated future development costs		6,466			9,483
Purchases of minerals in place		600			14
Revisions of previous quantity estimates		(41,646	)		8,232
Accretion of discount		14,134			3,165
Net changes in income taxes ⁽¹⁾		(10,675	)		(857	)
Net changes in timing of production and other		7,190			3,801
Standardized measure of discounted future net cash flows, end of year	$	222,192		$	140,021

- Definition

Tabular disclosure of the net quantities of an enterprise's interests in proved developed and undeveloped reserves of (a) crude oil (including condensate and natural gas liquids), (b) natural gas (including coal bed methane), (c) synthetic oil, (d) synthetic gas, and (e) other nonrenewable natural resources that are intended to be upgraded during the period as of the beginning of the period, changes in quantities during the period, and as of the end of the period.

+ References + Details

- Definition

Tabular disclosure of the future net cash flows relating to proved oil and gas reserves and oil and gas subject to purchase under long-term agreements in which the enterprise participates in the operation of the properties on which the oil and gas is located or otherwise serves as the producer. This information is presented in aggregate and for each geographic area for which reserve quantities are disclosed.

+ References + Details

Note 2 - Basis of Presentation and Summary of Significant Accounting Policies (Details Textual)	1 Months Ended	3 Months Ended		4 Months Ended	6 Months Ended		8 Months Ended	12 Months Ended		20 Months Ended
	Dec. 31, 2020 USD ($) shares	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Dec. 31, 2020 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Aug. 21, 2020 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Aug. 21, 2020 USD ($)	Aug. 22, 2020 USD ($)
Accounts Receivable, after Allowance for Credit Loss, Current, Total	$ 7,722,000	$ 23,786,000		$ 7,722,000	$ 23,786,000			$ 7,722,000	$ 3,363,000		$ 3,027,000
Oil and Gas Joint Interest Billing Receivables	345,000	4,200,000		345,000	4,200,000			345,000	440,000
Income Taxes Receivable	3,200,000	3,200,000		3,200,000	3,200,000			3,200,000
Other Receivables	0	123,000		0	123,000			0
Accounts Receivable, Allowance for Credit Loss, Current	$ 0	0		0	0			0	0
Class of Warrant or Right, Exercised During Period (in shares) \| shares	312,711
Proceeds from Warrant Exercises	$ 3,600,000				5,466,000	$ 0
Subscription Receivable, Current	3,596,000	0		3,596,000	0			3,596,000	0
Inventory, Raw Materials and Supplies, Gross, Total	121,000	217,000		121,000	217,000			121,000	184,000
Inventory, LIFO Reserve	0	0		0	0			0	0
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment, Ending Balance	237,000	334,000		237,000	334,000			237,000	46,000
Debt Issuance Costs, Gross	401,000	2,200,000		401,000	2,200,000			401,000
Payments of Debt Issuance Costs				405,000	1,759,000	(0)	$ (0)		(0)
Amortization of Debt Issuance Costs				4,000	77,000	0	0		0
Accounts Payable and Accrued Liabilities, Current, Total	22,400,000	54,300,000		22,400,000	54,300,000			22,400,000	31,000,000.0
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total	0	0		0	0			$ 0
Income Tax Expense (Benefit), Total		1,420,000	$ 0	(4,223,000)	$ 2,535,000	0	$ 0		0	$ 0
Number of Operating Segments					1			1
Domestic Tax Authority [Member] \| Internal Revenue Service (IRS) [Member]
Open Tax Year					2017			2017 2018 2019
Minimum [Member]
Oil and Natural Gas Marketing Contracts, Term Over Which Consideration is Received from Purchaser (Month)					1 month			1 month
Maximum [Member]
Oil and Natural Gas Marketing Contracts, Term Over Which Consideration is Received from Purchaser (Month)					2 months			2 months
Revolving Credit Facility [Member]
Debt Issuance Costs, Gross		2,200,000			$ 2,200,000
Payments of Debt Issuance Costs					1,800,000			$ 405,000
Amortization of Debt Issuance Costs					$ 77,000	$ 0		$ 4,000
Technology Equipment [Member]
Property, Plant and Equipment, Useful Life (Year)					3 years			3 years
Transportation Equipment [Member]
Property, Plant and Equipment, Useful Life (Year)					5 years			5 years
Field Equipment [Member]
Property, Plant and Equipment, Useful Life (Year)					7 years			7 years
Crude Oil, Natural Gas and Natural Gas Liquids [Member]
Accounts Receivable, after Allowance for Credit Loss, Current, Total	$ 4,200,000	$ 16,300,000		$ 4,200,000	$ 16,300,000			$ 4,200,000	$ 2,900,000

Note 2 - Basis of Presentation and Summary of Significant Accounting Policies - Other Property and Equipment, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020	Aug. 22, 2020	Dec. 31, 2019
Other property and equipment, net	$ 1,057	$ 1,092	$ 436	$ 1,088
Land [Member]
Other property and equipment, net	731	725		580
Technology Equipment [Member]
Other property and equipment, net	208	292		459
Transportation Equipment [Member]
Other property and equipment, net	92	41		0
Leasehold Improvements [Member]
Other property and equipment, net	17	24		37
Field Equipment [Member]
Other property and equipment, net	$ 9	$ 10		$ 12

Note 3 - Acquisitions (Details Textual) $ in Thousands		1 Months Ended		4 Months Ended		6 Months Ended		8 Months Ended	9 Months Ended	12 Months Ended
Note 3 - Acquisitions (Details Textual) $ in Thousands	Jun. 01, 2019 USD ($)	Oct. 31, 2019 USD ($)	Jun. 30, 2019 USD ($)	Dec. 31, 2020 USD ($)	Apr. 30, 2020 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Aug. 21, 2020 USD ($)	Sep. 30, 2020	Dec. 31, 2020 USD ($)
Payments to Acquire Oil and Gas Property and Equipment, Total				$ 1,200		$ 2,100	$ 3,300	$ 3,300
Number of Vertical Producing Properties Acquired									3	3
Number of Salt Water Disposal Wells Acquired									2	2
HighPeak Energy Assets II, LLC [Member] \| Grenadier Acquisition [Member]
Payments to Acquire Businesses, Gross	$ 615,000		$ 615,000
Business Combination, Escrow Deposit		$ 61,500
Business Combination, Escrow Deposit Not Credited Toward Purchase Price				$ 15,000						$ 15,000
HPK, LP [Member] \| Grenadier Acquisition [Member]
Payments to Acquire Businesses, Gross		30,750
Business Combination, Escrow Deposit Not Credited Toward Purchase Price		$ 15,000
Business Combination Terminated, Charge to Expense					$ 76,500		$ 76,500

Note 4 - Fair Value Measurements (Details Textual) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Impairment of Oil and Gas Properties	$ 0	$ 0
Fair Value, Recurring [Member]
Assets, Fair Value Disclosure		0
Financial and Nonfinancial Liabilities, Fair Value Disclosure		$ 0

Note 4 - Fair Value Measurements - Assets and Liabilities Measured On Recurring Basis (Details) - Commodity Contract [Member] - Fair Value, Recurring [Member] $ in Thousands	Jun. 30, 2021 USD ($)
Commodity price derivatives	$ 12,558
Fair Value, Inputs, Level 1 [Member]
Commodity price derivatives	0
Fair Value, Inputs, Level 2 [Member]
Commodity price derivatives	12,558
Fair Value, Inputs, Level 3 [Member]
Commodity price derivatives	$ 0

Note 5 - Derivative Financial Instruments - Summary of the Effect of Derivatives on the Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Noncash derivative gain (loss), net	$ (12,558)	$ 0	$ (12,558)	$ (0)
Cash payments on settled derivative instruments, net	(1,038)	0	(1,038)	0
Derivative gain (loss), net	$ (13,596)	$ 0	$ (13,596)	$ 0

Note 5 - Derivative Financial Instruments - Commodity Derivative Contracts (Details) - Not Designated as Hedging Instrument [Member]	6 Months Ended
	Jun. 30, 2021 $ / bbl bbl
Crude Oil Derivative Swap Q3 2021 [Member]
Volume (Bbls) (Barrel of Oil) \| bbl	460,000
Price per Bbl (in USD per Barrel of Oil) \| $ / bbl	61.91
Crude Oil Derivative Swap Q4 2021 [Member]
Volume (Bbls) (Barrel of Oil) \| bbl	460,000
Price per Bbl (in USD per Barrel of Oil) \| $ / bbl	61.91
Crude Oil Derivative Swap 2021 [Member]
Volume (Bbls) (Barrel of Oil) \| bbl	920,000
Price per Bbl (in USD per Barrel of Oil) \| $ / bbl	61.91
Crude Oil Derivative Swap Q1 2022 [Member]
Volume (Bbls) (Barrel of Oil) \| bbl	450,000
Price per Bbl (in USD per Barrel of Oil) \| $ / bbl	61.91
Crude Oil Derivative Swap Q2 2022 [Member]
Volume (Bbls) (Barrel of Oil) \| bbl	302,500
Price per Bbl (in USD per Barrel of Oil) \| $ / bbl	62.16
Crude Oil Derivative Swap 2022 [Member]
Volume (Bbls) (Barrel of Oil) \| bbl	752,500
Price per Bbl (in USD per Barrel of Oil) \| $ / bbl	61.95

Note 6 - Exploratory Well Costs (Details Textual)	6 Months Ended	12 Months Ended
Note 6 - Exploratory Well Costs (Details Textual)	Jun. 30, 2021	Dec. 31, 2020
Capitalized Exploratory Well Costs, Maximum Term (Year)	1 year	1 year

Note 6 - Exploratory Well Costs - Exploratory Well Costs (Details) - USD ($) $ in Thousands	4 Months Ended	6 Months Ended	8 Months Ended	12 Months Ended
	Dec. 31, 2020	Jun. 30, 2021	Aug. 21, 2020	Dec. 31, 2019
Beginning capitalized exploratory well costs	$ 41,524	$ 32,592	$ 11,427	$ 0
Additions to exploratory well costs	53,462	75,289	48,169	58,435
Reclassification to proved properties	(62,394)	(106,749)	(18,072)	(47,008)
Exploratory well costs charged to exploration and abandonment expense	0	0	0	0
Ending capitalized exploratory well costs	$ 32,592	$ 1,132	$ 41,524	$ 11,427

Note 7 - Long-term Debt (Details Textual) - USD ($)	1 Months Ended	6 Months Ended	12 Months Ended
Note 7 - Long-term Debt (Details Textual) - USD ($)	Dec. 31, 2020	Jun. 30, 2021	Dec. 31, 2020
Debt Issuance Costs, Gross	$ 401,000	$ 2,200,000	$ 401,000
Accumulated Amortization, Debt Issuance Costs		81,000
Long-term Debt, Total	0	11,918,000	0
Revolving Credit Facility [Member]
Debt Issuance Costs, Gross		2,200,000
Long-term Debt, Gross	0	14,000,000	0
Revolving Credit Facility [Member] \| Fifth Third Bank, National Association [Member]
Line of Credit Facility, Maximum Borrowing Capacity	40,000,000.0	125,000,000	40,000,000.0
Line of Credit Facility, Commitment Fee Amount	20,000,000.0	125,000,000.0
Line of Credit Facility, Current Borrowing Capacity	20,000,000.0	125,000,000.0	20,000,000.0
Debt Instrument, Face Amount	500,000,000.0	500,000,000.0	500,000,000.0
Long-term Debt, Gross	0	$ 14,000,000.0	$ 0
Debt Instrument, Interest Rate, Effective Percentage		3.25%
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage		0.50%	0.50%
Debt Instrument, Covenant, Minimum Cash Threshold for Prepayment to be Due	20,000,000.0	$ 20,000,000.0	$ 20,000,000.0
Revolving Credit Facility [Member] \| Fifth Third Bank, National Association [Member] \| Maximum [Member]
Debt Instrument, Covenant, Maximum Total Debt to EBITDAX Ratio		3.00	3.00
Revolving Credit Facility [Member] \| Fifth Third Bank, National Association [Member] \| Minimum [Member]
Debt Instrument, Covenant, Minimum Current Ratio		1.00	1.00
Revolving Credit Facility [Member] \| Fifth Third Bank, National Association [Member] \| Fed Funds Effective Rate Overnight Index Swap Rate [Member]
Debt Instrument, Basis Spread on Variable Rate			0.50%
Letter of Credit [Member] \| Fifth Third Bank, National Association [Member] \| London Interbank Offered Rate (LIBOR), Applicable Margin [Member]
Debt Instrument, Basis Spread on Variable Rate		0.125%	0.125%
Other Noncurrent Assets [Member]
Accumulated Amortization, Debt Issuance Costs	$ 4,000		$ 4,000

Note 7 - Long-term Debt - Long-term Debt (Details) - USD ($)
$ in Thousands

Jun. 30, 2021

Dec. 31, 2020

Debt issuance costs, net (a)

^[1]

$ (2,082)

$ 0

Long term debt

11,918

Less current portion of long-term debt

Long-term debt, net

11,918

Revolving Credit Facility [Member]

Revolving Credit Facility due 2024

$ 14,000

$ 0

[1]

Debt issuance costs as of June 30, 2021 consisted of $2.2 million in costs less accumulated amortization of $81,000. Debt issuance costs as of December 31, 2020 of $401,000, net of accumulated amortization of $4,000, were classified in other noncurrent assets on the accompanying balance sheet due to the fact that the Company had no outstanding debt at that time.

- Definition

Amount, after unamortized (discount) premium and debt issuance costs, of long-term debt. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ References + Details

Note 8 - Asset Retirement Obligations - Asset Retirement Obligations Activity (Details) - USD ($)
$ in Thousands

3 Months Ended

4 Months Ended

6 Months Ended

8 Months Ended

12 Months Ended

Jun. 30, 2021

Jun. 30, 2020

Dec. 31, 2020

Jun. 30, 2021

Jun. 30, 2020

Aug. 21, 2020

Dec. 31, 2019

Beginning asset retirement obligations

$ 2,398

$ 2,293

$ 2,212

$ 520

Liabilities incurred from new wells

610

1,511

Revision of estimates (a)

(211)

^[1]

(10)

^[2]

^[1]

160

^[1]

Accretion of discount

$ 37

$ 35

$ 69

Ending asset retirement obligations

$ 2,965

$ 2,293

$ 2,965

$ 2,398

$ 2,212

[1]	The revisions to the Company’s asset retirement obligation estimates are primarily due to changes in estimated costs based on experience with the properties.
[2]	The revisions to the Company’s asset retirement obligation estimates are primarily due to changes in estimated costs based on experience with the properties and their expected useful lives.

Note 9 - Incentive Plans (Details Textual) - USD ($)		1 Months Ended				3 Months Ended		4 Months Ended		6 Months Ended		8 Months Ended	12 Months Ended
Note 9 - Incentive Plans (Details Textual) - USD ($)	Jun. 01, 2021	Jul. 31, 2021	Jun. 30, 2021	Nov. 30, 2020	Sep. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Dec. 31, 2020	Jun. 30, 2021	Jun. 30, 2020	Aug. 21, 2020	Dec. 31, 2020	Dec. 31, 2019
Share-based Payment Arrangement, Expense				$ 302,000		$ 1,023,000	$ 0		$ 15,776,000	$ 1,989,000	$ 0	$ 0		$ 0
Outside Directors [Member]
Share-based Payment Arrangement, Expense				$ 302,000
Stock Issued During Period, Shares, Issued for Services (in shares)				62,500
Each Outside Director [Member]
Stock Issued During Period, Shares, Issued for Services (in shares)				12,500
Share-based Payment Arrangement, Option [Member]
Share-based Payment Arrangement, Expense									15,500,000	1,900,000	0
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount			$ 1,900,000			1,900,000		$ 3,800,000	$ 3,800,000	$ 1,900,000			$ 3,800,000
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)					2 years
Share-based Payment Arrangement, Option [Member] \| Maximum [Member]
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)										2 years
Restricted Stock [Member] \| Outside Directors [Member]
Share-based Payment Arrangement, Expense										$ 57,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)	67,779
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)	1 year
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in shares)			52,883
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount			$ 626,000			$ 626,000				$ 626,000
Restricted Stock [Member] \| Outside Directors [Member] \| Subsequent Event [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in shares)		14,896
The 401K Plan [Member]
Defined Contribution Plan, Period of Employment for Eligibility (Month)										3 months			3 months
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent										80.00%			80.00%
Defined Contribution Plan, Employer Matching Contribution, Percent of Match										100.00%			100.00%
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay										4.00%			4.00%
Defined Contribution Plan, Employer Discretionary Contribution Amount								$ 49,000		$ 111,000	$ 0

Note 9 - Incentive Plans - Number of Shares Available for Grant Pursuant to Long-term Incentive Plan (Details) - shares	Jun. 30, 2021	Dec. 31, 2020	Aug. 21, 2020
Awards issued under plan (in shares)	(9,551,227)	(9,705,495)	0
The 2020 Long-term Incentive Plan [Member]
Approved and authorized awards (in shares)	12,047,866	11,907,006
Awards issued under plan (in shares)	(9,681,506)	(9,767,995)
Awards available for future grant (in shares)	2,366,360	2,139,011

Note 9 - Incentive Plans - Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	4 Months Ended	6 Months Ended
	Dec. 31, 2020	Jun. 30, 2021
Outstanding balance (in shares)	0	9,705,495
Awards granted (in shares)	9,705,495
Awards granted, weighted average exercise price (in dollars per share)	$ 10.00
Outstanding, remaining term (Year)	9 years 8 months 12 days	9 years 2 months 12 days
Outstanding, intrinsic value	$ 57,942	$ 0
Exercised (in shares)	0	(154,268)
Exercised, weighted average exercise price (in dollars per share)		$ 10.00
Outstanding balance (in shares)	9,705,495	9,551,227
Outstanding, weighted average exercise price (in dollars per share)	$ 10.00	$ 10.00
Vested (in shares)	7,204,163	7,049,895
Vested, weighted average exercise price (in dollars per share)	$ 10.00	$ 10.00
Vested, remaining term (Year)	9 years 8 months 12 days	9 years 2 months 12 days
Vested, intrinsic value	$ 43,009	$ 2,232
Exercisable (in shares)	7,204,163	7,049,895
Exercisable, weighted average exercise price (in dollars per share)	$ 10.00	$ 10.00
Exercisable, remaining term (Year)	9 years 8 months 12 days	9 years 2 months 12 days
Exercisable, intrinsic value	$ 43,009	$ 2,232

Note 10 - Commitments and Contingencies (Details Textual)	1 Months Ended	6 Months Ended	12 Months Ended
	May 31, 2021 bbl	Jun. 30, 2021 USD ($) a bbl	Dec. 31, 2020 USD ($) bbl	Aug. 22, 2020 USD ($)	Jan. 01, 2020 USD ($)	Dec. 31, 2019 USD ($)
Retained Earnings (Accumulated Deficit), Ending Balance		$ (96,722,000)	$ (107,209,000)	$ (90,780,000)		$ (5,746,000)
Accounting Standards Update 2016-02 [Member] \| Cumulative Effect, Period of Adoption, Adjustment [Member]
Retained Earnings (Accumulated Deficit), Ending Balance					$ 0
Oncor [Member]
Letters of Credit Outstanding, Amount		$ 1,900,000
TEXAS
Area of Land (Acre) \| a		80
The Salt-Water Disposal Agreement Due on July 24, 2022 [Member]
Number of Barrels to be Delivered (Barrel of Oil) \| bbl		3,000,000.0	3,000,000.0
Number of Barrels, Delivered (Barrel of Oil) \| bbl		1,700,000	700,000
Supply Commitment, Remaining Minimum Amount Committed		$ 603,000
Crude Oil Delivery Commitments [Member]
Supply Commitment, Gross Barrels of Oil Delivered Per Day, Year One (Barrel of Oil) \| bbl	5,000
Supply Commitment, Gross Barrels of Oil Delivered Per Day, Year Two (Barrel of Oil) \| bbl	7,500
Supply Commitment, Gross Barrels of Oil Delivered Per Day, Remaining Term of Contract (Barrel of Oil) \| bbl	10,000
Supply Commitment, Remaining Term of Contract (Year)	8 years
Supply Commitment, Amount Committed		25,400,000
Other Noncurrent Assets [Member]
Operating Lease, Right-of-Use Asset		236,000	$ 506,000
Other Liabilities [Member]
Operating Lease, Liability, Total		239,000	508,000
Other Current Liabilities [Member]
Operating Lease, Liability, Noncurrent		213,000	430,000
Other Noncurrent Liabilities [Member]
Operating Lease, Liability, Total		$ 26,000
Operating Lease, Liability, Noncurrent			$ 78,000

Note 10 - Commitments and Contingencies - Operating Lease Obligations (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Remainder of 2021	$ 164,000
2022	79,000	$ 439,000
Total lease payments	243,000	518,000
Less present value discount	(4,000)	(10,000)
Other Liabilities [Member]
Operating Lease, Liability, Total	$ 239,000	$ 508,000

Note 11 - Related Party Transactions (Details Textual) - HPK, LP [Member] - HighPeak II [Member] - Reimbursement of Costs Incurred by Management Company [Member] $ in Millions	6 Months Ended
	Jun. 30, 2020 USD ($)
Related Party Transaction, Amounts of Transaction	$ 3.8
General and Administrative Expense [Member]
Related Party Transaction, Amounts of Transaction	$ 4.1

Note 12 - Major Customers (Details Textual) - Customer Concentration Risk [Member] - Revenue Benchmark [Member]	4 Months Ended	6 Months Ended		8 Months Ended
	Dec. 31, 2020	Jun. 30, 2021	Jun. 30, 2020	Aug. 21, 2020
Lion Oil Trading and Transportation, LLC [Member]
Concentration Risk, Percentage	98.00%	95.00%	16.00%	49.00%
Enlink Crude Purchasing, LLC [Member]
Concentration Risk, Percentage			76.00%	44.00%

Note 13 - Income Taxes (Details Textual) - USD ($) $ in Thousands	4 Months Ended	6 Months Ended	12 Months Ended
	Dec. 31, 2020	Jun. 30, 2021	Dec. 31, 2020
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	21.00%
Deferred Tax Assets, Valuation Allowance, Total	$ 0	$ 0	$ 0
Deferred Tax Assets, Net of Valuation Allowance, Total	$ 12,880	$ 22,933	$ 12,880
Domestic Tax Authority [Member] \| Internal Revenue Service (IRS) [Member]
Open Tax Year		2017	2017 2018 2019

Note 13 - Income Taxes - Income Tax Benefit and Effective Tax Rate (Details) - USD ($) $ in Thousands	3 Months Ended		4 Months Ended	6 Months Ended		8 Months Ended	12 Months Ended	20 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Jun. 30, 2021	Jun. 30, 2020	Aug. 21, 2020	Dec. 31, 2019	Aug. 21, 2020
Current tax expense			$ (3,176)	$ 0
Deferred tax expense			(1,047)	2,535
Income tax expense	$ 1,420	$ 0	$ (4,223)	$ 2,535	$ 0	$ 0	$ 0	$ 0

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Note 13 - Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended		4 Months Ended	6 Months Ended		8 Months Ended	12 Months Ended	20 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Jun. 30, 2021	Jun. 30, 2020	Aug. 21, 2020	Dec. 31, 2019	Aug. 21, 2020
Income tax expense at U.S. federal statutory rate			$ (4,337)	$ 2,735
Limited tax benefit due to stock-based compensation			127	(81)
Other			(13)	(119)
Income tax expense	$ 1,420	$ 0	$ (4,223)	$ 2,535	$ 0	$ 0	$ 0	$ 0
Effective income tax rate			20.40%	19.50%

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Note 13 - Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Net operating loss carryforwards	$ 16,770	$ 9,725
Stock-based compensation	3,419	3,124
Unrecognized derivative losses	2,637	0
Other	107	31
Less: Valuation allowance	0	0
Net deferred tax assets	22,933	12,880
Oil and natural gas properties, principally due to differences in basis and depreciation and the deduction of intangible drilling costs for tax purposes	(64,365)	(51,778)
Net deferred tax liabilities	$ (41,432)	$ (38,898)

Note 14 - Earnings Per Share - Basic and Diluted Net Income (Loss) Per Share Attributable to Common Stockholders (Details) - USD ($)
shares in Thousands, $ in Thousands

3 Months Ended

4 Months Ended

6 Months Ended

8 Months Ended

12 Months Ended

Jun. 30, 2021

Mar. 31, 2021

Jun. 30, 2020

Mar. 31, 2020

Dec. 31, 2020

Jun. 30, 2021

Jun. 30, 2020

Aug. 21, 2020

Dec. 31, 2019

Net income (loss)

$ 5,743

$ 4,744

$ (4,147)

$ (80,831)

$ (16,429)

$ 10,487

$ (84,978)

$ (85,034)

$ (11,579)

Participating basic earnings (a)

^[1]

(407)

(743)

Basic and diluted net income (loss) attributable to common stockholders

5,336

$ (16,429)

9,744

Reallocation of participating earnings

Diluted net income attributable to common stockholders

$ 5,336

$ 9,745

Basic weighted average shares outstanding (in shares)

92,676

91,629

92,634

Dilutive warrants and unvested stock options (in shares)

196

Diluted weighted average shares outstanding (in shares)

92,676

91,629

92,830

[1]

Unvested restricted stock awards represent participating securities because they participate in nonforfeitable dividends with the common equity holders of the Company. Vested stock options represent participating securities because they participate in dividend equivalents with the common equity holders of the Company. Participating earnings represent the distributed and undistributed earnings of the Company attributable to the participating securities. Unvested stock options do not represent participating securities because, while they participate in dividend equivalents with the common equity holders of the Company, the dividend equivalents associated with unvested stock options are forfeitable in connection with the forfeitability of the underlying stock options.

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

+ References

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+ Details

- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities, and addition from assumption of issuance of common shares for dilutive potential common shares; of income (loss) available to common shareholders.

+ References + Details

Note 15 - Stockholders' Equity (Successor) (Details Textual) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
Common Stock, Shares, Outstanding, Ending Balance (in shares)	92,728,781	91,967,565
Class of Warrant or Right, Outstanding (in shares)	9,500,174	10,225,472
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)	$ 11.50	$ 11.50
Common Stock, Capital Shares Reserved for Future Issuance (in shares)	21,694,763	21,694,763
Contingent Value Right [Member]
Class of Warrant or Right, Outstanding (in shares)	10,209,300	10,209,300
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right (in shares)	2.125	2.125

Note 16 - Partners' Capital (Predecessor) (Details Textual) - USD ($) $ in Millions	6 Months Ended	8 Months Ended
	Jun. 30, 2020	Aug. 21, 2020
HPK, LP [Member]
Net Income (Loss) Allocated to Limited Partners	$ 85	$ 85

Note 17 - Subsequent Events (Details Textual) - Subsequent Event [Member]		1 Months Ended
	Jul. 26, 2021 USD ($)	Jul. 31, 2021 USD ($) a $ / shares	Jul. 30, 2021 USD ($)
Acquisition, Area of Working Interests in Producing Properties and Salt-water Disposal Wells (Acre) \| a		6,200
Payments of Dividends, Total	$ 9,300,000
Quarterly Dividend [Member]
Common Stock, Dividends, Per Share, Declared (in dollars per share) \| $ / shares		$ 0.025
Special Dividend [Member]
Common Stock, Dividends, Per Share, Declared (in dollars per share) \| $ / shares		$ 0.075
WTG Gas Processing, L.P. [Member]
Payments for Aid-in-construction		$ 3,900,000
Vested Stock Option Holders [Member]
Dividends, Total			$ 705,000
Unvested Stock Option Holders, One [Member]
Dividends, Total			125,000
Unvested Stock Option Holders, Two [Member]
Dividends, Total			$ 125,000

Note 2 - Basis of Presentation and Summary of Significant Accounting Policy (Details Textual)

1 Months Ended

3 Months Ended

4 Months Ended

6 Months Ended

8 Months Ended

12 Months Ended

20 Months Ended

Dec. 31, 2020

USD ($)

Nov. 30, 2020

Jun. 30, 2021

USD ($)

Jun. 30, 2020

USD ($)

Dec. 31, 2020

USD ($)

Jun. 30, 2021

USD ($)

Jun. 30, 2020

USD ($)

Aug. 21, 2020

USD ($)

Dec. 31, 2020

USD ($)

Dec. 31, 2019

USD ($)

Aug. 21, 2020

USD ($)

Aug. 22, 2020

USD ($)

Accounts Receivable, after Allowance for Credit Loss, Current, Total

$ 7,722,000

$ 23,786,000

$ 7,722,000

$ 23,786,000

$ 7,722,000

$ 3,363,000

$ 3,027,000

Income Taxes Receivable

3,200,000

Oil and Gas Joint Interest Billing Receivables

345,000

4,200,000

345,000

4,200,000

345,000

440,000

Accounts Receivable, Allowance for Credit Loss, Current

$ 0

Class of Warrant or Right, Exercised During Period (in shares) | shares

312,711

Proceeds from Warrant Exercises

$ 3,600,000

5,466,000

$ 0

Other Payments to Acquire Businesses

(0)

15,000,000

$ 15,000,000

(0)

Inventory, Raw Materials and Supplies, Gross, Total

121,000

217,000

121,000

217,000

121,000

184,000

Inventory, LIFO Reserve

Impairment of Leasehold

4,800,000

Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment, Ending Balance

237,000

334,000

237,000

334,000

237,000

46,000

Payments of Debt Issuance Costs

405,000

1,759,000

(0)

Amortization of Debt Issuance Costs

4,000

77,000

Accounts Payable and Accrued Liabilities, Current, Total

22,400,000

54,300,000

22,400,000

54,300,000

22,400,000

31,000,000.0

Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total

$ 0

Income Tax Expense (Benefit), Total

1,420,000

$ 0

(4,223,000)

$ 2,535,000

$ 0

Number of Operating Segments

Outside Directors [Member]

Stock Issued During Period, Shares, Issued for Services (in shares) | shares

62,500

Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member]

Open Tax Year

2017

2017 2018 2019

Minimum [Member]

Oil and Natural Gas Marketing Contracts, Term Over Which Consideration is Received from Purchaser (Month)

1 month

Maximum [Member]

Oil and Natural Gas Marketing Contracts, Term Over Which Consideration is Received from Purchaser (Month)

2 months

Revolving Credit Facility [Member]

Payments of Debt Issuance Costs

$ 1,800,000

$ 405,000

Amortization of Debt Issuance Costs

$ 77,000

$ 0

$ 4,000

Technology Equipment [Member]

Property, Plant and Equipment, Useful Life (Year)

3 years

Transportation Equipment [Member]

Property, Plant and Equipment, Useful Life (Year)

5 years

Field Equipment [Member]

Property, Plant and Equipment, Useful Life (Year)

7 years

HPK, LP [Member]

Accounts Receivable, after Allowance for Credit Loss, Current, Total

^[1]

3,001,000

Grenadier [Member] | HPK, LP [Member]

Payments of Deposits for Acquisition

61,500,000

Other Payments to Acquire Businesses

$ 15,000,000.0

76,500,000

Texas Railroad Commission [Member] | HPK, LP [Member]

Payments Made in Lieu of Plugging Bond

50,000

Pure Acquisition [Member]

Financing Receivable, before Allowance for Credit Loss, Current

$ 11,700,000

4,200,000

$ 11,700,000

Financing Receivable, Allowance for Credit Loss, Current

Crude Oil, Natural Gas and Natural Gas Liquids [Member]

Accounts Receivable, after Allowance for Credit Loss, Current, Total

$ 4,200,000

$ 16,300,000

$ 4,200,000

$ 16,300,000

$ 4,200,000

$ 2,900,000

[1]	Represents HPK LP’s condensed consolidated balance sheet estimated as of August 21, 2020.

Note 2 - Basis of Presentation and Summary of Significant Accounting Policies - Condensed Financial Statements (Details) - USD ($) $ in Thousands	3 Months Ended				4 Months Ended		6 Months Ended		8 Months Ended	9 Months Ended	12 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2020	Dec. 31, 2019	Jun. 30, 2021	Jun. 30, 2020	Aug. 21, 2020	Sep. 30, 2019	Dec. 31, 2019
Operating revenues	$ 48,270		$ 944		$ 16,400		$ 73,987	$ 5,567	$ 8,223		$ 8,115
Oil and natural gas production	4,692		1,814		2,653		6,919	4,203	4,870		3,372
Production and ad valorem taxes	2,543		94		886		4,207	402	566		449
Exploration and abandonments	463		1		5,032		654	4	4		2,850
Depletion, depreciation and amortization	16,857		1,735		9,877		29,820	5,091	6,385		4,269
Accretion of discount on asset retirement obligations	37		35		51		72	69	89		72
General and administrative	1,617		1,412		2,775		3,376	4,273	4,840		8,682
Total operating costs and expenses	27,232		5,091		37,050		47,037	14,042	16,754		19,694
Income (loss) from operations	21,038		(4,147)		(20,650)		26,950	(8,475)	(8,531)		(11,579)
Net income (loss)	5,743	$ 4,744	(4,147)	$ (80,831)	(16,429)		10,487	(84,978)	(85,034)		(11,579)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	5,743	4,744	(4,147)	(80,831)	(16,429)		10,487	(84,978)	(85,034)		(11,579)
Exploration and abandonment expense					4,854		369	4	4		2,850
Depletion, depreciation and amortization	16,857		1,735		9,877		29,820	5,091	6,385		4,269
Accretion expense					51		72	69	89		72
Accounts receivable					(5,177)		(16,064)	2,886	844		70
Prepaid expenses, inventory and other current assets					(506)		(366)	(3,621)	(196)		(209)
Accounts payable and accrued liabilities					(1,990)		5,803	(763)	(2,694)		3,755
Net cash provided by (used in) operating activities					5,413		47,280	(4,812)	(4,102)		(772)
Additions to oil and natural gas properties					(64,947)		(89,959)	(49,016)	(49,364)		(60,998)
Changes in working capital associated with oil and natural gas property additions					(5,666)		15,223	7,652	7,348		24,682
Acquisitions of oil and natural gas properties					(1,181)		(2,070)	(3,298)	(3,338)		(10,918)
Issuance of notes receivable					0		0	(5,907)	(7,482)		(4,193)
Net cash used in investing activities					(71,939)		(76,867)	(65,619)	(67,886)		(51,434)
Contributions from partners					0		0	54,000	54,000		74,023
Net cash provided by financing activities					84,135		22,877	54,000	51,220		74,023
Net decrease in cash and cash equivalents					17,609		(6,710)	(16,431)	(20,768)		21,817
Cash and cash equivalents, beginning of period		$ 19,552		22,711	1,943		19,552	22,711	22,711	$ 894	894
Cash and cash equivalents, end of period					19,552	$ 22,711			1,943		22,711
HighPeak II [Member]
Operating revenues						3,858				942
Oil and natural gas production						1,578				1,190
Production and ad valorem taxes						188				59
Exploration and abandonments						33				756
Depletion, depreciation and amortization						1,612				650
Accretion of discount on asset retirement obligations						34				86
General and administrative						6,159
Total operating costs and expenses						9,604				6,754
Income (loss) from operations						(5,746)				(5,812)
Equity in losses of affiliate						0
Net income (loss)						(5,746)				(5,705)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)						(5,746)				(5,705)
Exploration and abandonment expense						33
Depletion, depreciation and amortization						1,612				650
Accretion expense						34
Equity in loss off affiliate						0
Accounts receivable						(1,355)
Prepaid expenses, inventory and other current assets						(88)
Accounts payable and accrued liabilities						3,010
Net cash provided by (used in) operating activities						(2,500)
Additions to oil and natural gas properties						(45,318)
Changes in working capital associated with oil and natural gas property additions						19,097
Acquisitions of oil and natural gas properties						(2,456)
Investment in affiliate						0
Issuance of notes receivable						(4,193)
Net cash used in investing activities						(32,870)
Contributions from partners						58,081
Net cash provided by financing activities						58,081
Net decrease in cash and cash equivalents						22,711
Cash and cash equivalents, beginning of period				22,711		0		22,711	22,711
Cash and cash equivalents, end of period						22,711					22,711
HighPeak I [Member]
Operating revenues											4,257
Oil and natural gas production											1,794
Production and ad valorem taxes											261
Exploration and abandonments											2,817
Depletion, depreciation and amortization											2,657
Accretion of discount on asset retirement obligations											38
General and administrative											2,523
Total operating costs and expenses											10,090
Income (loss) from operations											(5,833)
Equity in losses of affiliate											(3,175)
Net income (loss)											(9,008)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)											(9,008)
Exploration and abandonment expense											2,817
Depletion, depreciation and amortization											2,657
Accretion expense											38
Equity in loss off affiliate											3,175
Accounts receivable											1,425
Prepaid expenses, inventory and other current assets											(121)
Accounts payable and accrued liabilities											745
Net cash provided by (used in) operating activities											1,728
Additions to oil and natural gas properties											(15,687)
Changes in working capital associated with oil and natural gas property additions											5,585
Acquisitions of oil and natural gas properties											(8,462)
Investment in affiliate											(7,796)
Issuance of notes receivable											0
Net cash used in investing activities											(26,360)
Contributions from partners											23,738
Net cash provided by financing activities											23,738
Net decrease in cash and cash equivalents											(894)
Cash and cash equivalents, beginning of period				0				0	0	894	894
Cash and cash equivalents, end of period						0					0
HighPeak I and HighPeak II [Member]
Operating revenues											8,115
Oil and natural gas production											3,372
Production and ad valorem taxes											449
Exploration and abandonments											2,850
Depletion, depreciation and amortization											4,269
Accretion of discount on asset retirement obligations											72
General and administrative											8,682
Total operating costs and expenses											19,694
Income (loss) from operations											(11,579)
Equity in losses of affiliate											0
Net income (loss)											(11,579)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)											(11,579)
Exploration and abandonment expense											2,850
Depletion, depreciation and amortization											4,269
Accretion expense											72
Equity in loss off affiliate											0
Accounts receivable											70
Prepaid expenses, inventory and other current assets											(209)
Accounts payable and accrued liabilities											3,755
Net cash provided by (used in) operating activities											(772)
Additions to oil and natural gas properties											(61,005)
Changes in working capital associated with oil and natural gas property additions											24,682
Acquisitions of oil and natural gas properties											(10,918)
Investment in affiliate											0
Issuance of notes receivable											(4,193)
Net cash used in investing activities											(51,434)
Contributions from partners											74,023
Net cash provided by financing activities											74,023
Net decrease in cash and cash equivalents											21,817
Cash and cash equivalents, beginning of period				22,711				22,711	22,711	894	894
Cash and cash equivalents, end of period						22,711					22,711
HighPeak I and HighPeak II [Member] \| Consolidation, Eliminations [Member]
Depletion, depreciation and amortization											0
Equity in losses of affiliate											3,175
Net income (loss)											3,175
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)											3,175
Exploration and abandonment expense											0
Depletion, depreciation and amortization											0
Accretion expense											0
Equity in loss off affiliate											(3,175)
Accounts receivable											0
Prepaid expenses, inventory and other current assets											0
Accounts payable and accrued liabilities											0
Net cash provided by (used in) operating activities											0
Additions to oil and natural gas properties											0
Changes in working capital associated with oil and natural gas property additions											0
Acquisitions of oil and natural gas properties											0
Investment in affiliate											7,796
Issuance of notes receivable											0
Net cash used in investing activities											7,796
Contributions from partners											(7,796)
Net cash provided by financing activities											(7,796)
Net decrease in cash and cash equivalents											0
Cash and cash equivalents, beginning of period				$ 0				0	0	0	0
Cash and cash equivalents, end of period						0					0
Crude Oil Sales [Member]
Operating revenues	46,985		938		15,988		71,855	5,462	8,069		7,849
Crude Oil Sales [Member] \| HighPeak II [Member]
Operating revenues						3,695				719
Crude Oil Sales [Member] \| HighPeak I [Member]
Operating revenues											4,154
Crude Oil Sales [Member] \| HighPeak I and HighPeak II [Member]
Operating revenues											7,849
Natural Gas and NGL Sales [Member]
Operating revenues	$ 1,285		$ 6		$ 412		$ 2,132	$ 105	$ 154		266
Natural Gas and NGL Sales [Member] \| HighPeak II [Member]
Operating revenues						$ 163				$ 223
Natural Gas and NGL Sales [Member] \| HighPeak I [Member]
Operating revenues											103
Natural Gas and NGL Sales [Member] \| HighPeak I and HighPeak II [Member]
Operating revenues											$ 266

Note 2 - Basis of Presentation and Summary of Significant Accounting Policies - Other Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020	Aug. 22, 2020	Dec. 31, 2019
Other property and equipment, net	$ 1,057	$ 1,092	$ 436	$ 1,088
Land [Member]
Other property and equipment, net	731	725		580
Technology Equipment [Member]
Other property and equipment, net	208	292		459
Transportation Equipment [Member]
Other property and equipment, net	92	41		0
Leasehold Improvements [Member]
Other property and equipment, net	17	24		37
Field Equipment [Member]
Other property and equipment, net	$ 9	$ 10		$ 12

Note 3 - Acquisitions (Details Textual) $ in Thousands		1 Months Ended		4 Months Ended		6 Months Ended		8 Months Ended	9 Months Ended	12 Months Ended
Note 3 - Acquisitions (Details Textual) $ in Thousands	Jun. 01, 2019 USD ($)	Oct. 31, 2019 USD ($)	Jun. 30, 2019 USD ($)	Dec. 31, 2020 USD ($)	Apr. 30, 2020 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Aug. 21, 2020 USD ($)	Sep. 30, 2020	Dec. 31, 2020 USD ($)
Payments to Acquire Oil and Gas Property and Equipment, Total				$ 1,200		$ 2,100	$ 3,300	$ 3,300
Number of Vertical Producing Properties Acquired									3	3
Number of Salt Water Disposal Wells Acquired									2	2
HighPeak Energy Assets II, LLC [Member] \| Grenadier Acquisition [Member]
Payments to Acquire Businesses, Gross	$ 615,000		$ 615,000
Business Combination, Escrow Deposit Not Credited Toward Purchase Price				$ 15,000						$ 15,000
Business Combination, Escrow Deposit		$ 61,500
HPK, LP [Member] \| Grenadier Acquisition [Member]
Payments to Acquire Businesses, Gross		30,750
Business Combination, Amount of Deposit Released from Escrow		30,750
Business Combination, Escrow Deposit Not Credited Toward Purchase Price		$ 15,000
Business Combination Terminated, Charge to Expense					$ 76,500		$ 76,500

Note 4 - Fair Value Measurements (Details Textual) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Impairment of Oil and Gas Properties	$ 0	$ 0
Fair Value, Recurring [Member]
Assets, Fair Value Disclosure		$ 0

Note 5 - Exploratory Well Costs (Details Textual)	6 Months Ended	12 Months Ended
Note 5 - Exploratory Well Costs (Details Textual)	Jun. 30, 2021	Dec. 31, 2020
Capitalized Exploratory Well Costs, Maximum Term (Year)	1 year	1 year

Note 5 - Exploratory Well Costs (Details) - USD ($) $ in Thousands	4 Months Ended	6 Months Ended	8 Months Ended	12 Months Ended
	Dec. 31, 2020	Jun. 30, 2021	Aug. 21, 2020	Dec. 31, 2019
Beginning capitalized exploratory well costs	$ 41,524	$ 32,592	$ 11,427	$ 0
Additions to exploratory well costs	53,462	75,289	48,169	58,435
Reclassification to proved properties	(62,394)	(106,749)	(18,072)	(47,008)
Exploratory well costs charged to exploration and abandonment expense	0	0	0	0
Ending capitalized exploratory well costs	$ 32,592	$ 1,132	$ 41,524	$ 11,427

Note 6 - Long-term Debt (Details Textual) - USD ($) $ in Thousands	1 Months Ended	6 Months Ended	12 Months Ended
	Dec. 31, 2020	Jun. 30, 2021	Dec. 31, 2020
Revolving Credit Facility [Member]
Long-term Debt, Gross	$ 0	$ 14,000	$ 0
Revolving Credit Facility [Member] \| Fifth Third Bank, National Association [Member]
Line of Credit Facility, Maximum Borrowing Capacity	40,000	125,000	40,000
Line of Credit Facility, Commitment Fee Amount	20,000	125,000
Debt Instrument, Face Amount	500,000	500,000	500,000
Long-term Debt, Gross	0	$ 14,000	$ 0
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage		0.50%	0.50%
Debt Instrument, Covenant, Minimum Cash Threshold for Prepayment to be Due	$ 20,000	$ 20,000	$ 20,000
Revolving Credit Facility [Member] \| Fifth Third Bank, National Association [Member] \| Maximum [Member]
Debt Instrument, Covenant, Maximum Total Debt to EBITDAX Ratio		3.00	3.00
Revolving Credit Facility [Member] \| Fifth Third Bank, National Association [Member] \| Minimum [Member]
Debt Instrument, Covenant, Minimum Current Ratio		1.00	1.00
Revolving Credit Facility [Member] \| Fifth Third Bank, National Association [Member] \| Fed Funds Effective Rate Overnight Index Swap Rate [Member]
Debt Instrument, Basis Spread on Variable Rate			0.50%
Revolving Credit Facility [Member] \| Fifth Third Bank, National Association [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate			3.25%
Letter of Credit [Member] \| Fifth Third Bank, National Association [Member] \| London Interbank Offered Rate (LIBOR), Applicable Margin [Member]
Debt Instrument, Basis Spread on Variable Rate		0.125%	0.125%

Note 7 - Asset Retirement Obligations - Asset Retirement Obligations Activity (Details) - USD ($)
$ in Thousands

3 Months Ended

4 Months Ended

6 Months Ended

8 Months Ended

12 Months Ended

Jun. 30, 2021

Jun. 30, 2020

Dec. 31, 2020

Jun. 30, 2021

Jun. 30, 2020

Aug. 21, 2020

Dec. 31, 2019

Beginning asset retirement obligations

$ 2,398

$ 2,293

$ 2,212

$ 520

Liabilities incurred from new wells

610

1,511

Liabilities settled upon plugging and abandoning wells

(29)

(51)

Revision of estimates (a)

(211)

^[1]

(10)

^[2]

^[1]

160

^[1]

Accretion of discount on asset retirement obligations

$ 37

$ 35

$ 69

Ending asset retirement obligations

$ 2,965

$ 2,293

$ 2,965

$ 2,398

$ 2,212

[1]	The revisions to the Company’s asset retirement obligation estimates are primarily due to changes in estimated costs based on experience with the properties.
[2]	The revisions to the Company’s asset retirement obligation estimates are primarily due to changes in estimated costs based on experience with the properties and their expected useful lives.

Note 8 - Incentive Plans (Details Textual) - USD ($)	1 Months Ended		3 Months Ended		4 Months Ended		6 Months Ended		8 Months Ended	12 Months Ended
Note 8 - Incentive Plans (Details Textual) - USD ($)	Nov. 30, 2020	Sep. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Dec. 31, 2020	Jun. 30, 2021	Jun. 30, 2020	Aug. 21, 2020	Dec. 31, 2020	Dec. 31, 2019
Share-based Payment Arrangement, Expense	$ 302,000		$ 1,023,000	$ 0		$ 15,776,000	$ 1,989,000	$ 0	$ 0		$ 0
Each Outside Director [Member]
Stock Issued During Period, Shares, Issued for Services (in shares)	12,500
Outside Directors [Member]
Share-based Payment Arrangement, Expense	$ 302,000
Stock Issued During Period, Shares, Issued for Services (in shares)	62,500
Share-based Payment Arrangement, Option [Member]
Share-based Payment Arrangement, Expense						15,500,000	1,900,000	0
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount			$ 1,900,000		$ 3,800,000	$ 3,800,000	$ 1,900,000			$ 3,800,000
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)		2 years
The 401K Plan [Member]
Defined Contribution Plan, Period of Employment for Eligibility (Month)							3 months			3 months
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent							80.00%			80.00%
Defined Contribution Plan, Employer Matching Contribution, Percent of Match							100.00%			100.00%
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay							4.00%			4.00%
Defined Contribution Plan, Employer Discretionary Contribution Amount					$ 49,000		$ 111,000	$ 0

Note 8 - Incentive Plans - Number of Shares Available for Grant Pursuant to Long-term Incentive Plan (Details) - shares	Jun. 30, 2021	Dec. 31, 2020	Aug. 21, 2020
Awards issued under plan (in shares)	(9,551,227)	(9,705,495)	0
The 2020 Long-term Incentive Plan [Member]
Approved and authorized awards (in shares)	12,047,866	11,907,006
Awards issued under plan (in shares)	(9,681,506)	(9,767,995)
Awards available for future grant (in shares)	2,366,360	2,139,011

Note 8 - Incentive Plans - Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	4 Months Ended	6 Months Ended
	Dec. 31, 2020	Jun. 30, 2021
Outstanding balance (in shares)	0	9,705,495
Awards granted (in shares)	9,705,495
Awards granted, weighted average exercise price (in dollars per share)	$ 10.00
Awards forfeited (in shares)	0
Exercised (in shares)	0	154,268
Outstanding balance (in shares)	9,705,495	9,551,227
Outstanding, weighted average exercise price (in dollars per share)	$ 10.00	$ 10.00
Outstanding, remaining term (Year)	9 years 8 months 12 days	9 years 2 months 12 days
Outstanding, intrinsic value	$ 57,942	$ 0
Vested (in shares)	7,204,163	7,049,895
Vested, weighted average exercise price (in dollars per share)	$ 10.00	$ 10.00
Vested, remaining term (Year)	9 years 8 months 12 days	9 years 2 months 12 days
Vested, intrinsic value	$ 43,009	$ 2,232
Exercisable (in shares)	7,204,163	7,049,895
Exercisable, weighted average exercise price (in dollars per share)	$ 10.00	$ 10.00
Exercisable, remaining term (Year)	9 years 8 months 12 days	9 years 2 months 12 days
Exercisable, intrinsic value	$ 43,009	$ 2,232

Note 9 - Commitments and Contingencies (Details Textual) bbl in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2021 USD ($) bbl	Dec. 31, 2020 USD ($) bbl
The Salt-Water Disposal Supply Agreement [Member]
Number of Barrels to be Delivered (Barrel of Oil) \| bbl		5.5
Contractual Obligation, Total		$ 1,800,000
The Salt-Water Disposal Supply Agreement Due on September 30, 2021
Number of Barrels to be Delivered (Barrel of Oil) \| bbl		2.5
Number of Barrels, Delivered (Barrel of Oil) \| bbl		0.7
The Salt-Water Disposal Agreement Due on July 24, 2022 [Member]
Number of Barrels to be Delivered (Barrel of Oil) \| bbl	3.0	3.0
Number of Barrels, Delivered (Barrel of Oil) \| bbl	1.7	0.7
Other Noncurrent Assets [Member]
Operating Lease, Right-of-Use Asset	$ 236,000	$ 506,000
Other Liabilities [Member]
Operating Lease, Liability, Total	239,000	508,000
Other Current Liabilities [Member]
Operating Lease, Liability, Noncurrent	213,000	430,000
Other Noncurrent Liabilities [Member]
Operating Lease, Liability, Total	$ 26,000
Operating Lease, Liability, Noncurrent		$ 78,000

Note 9 - Commitments and Contingencies - Operating Lease Obligations (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
2022	$ 79,000	$ 439,000
2022		79,000
Total lease payments	243,000	518,000
Less present value discount	(4,000)	(10,000)
Other Liabilities [Member]
Operating Lease, Liability, Total	$ 239,000	$ 508,000

Note 10 - Related Party Transactions (Details Textual)

1 Months Ended

3 Months Ended

6 Months Ended

8 Months Ended

12 Months Ended

Aug. 21, 2020

USD ($)

$ / shares

Oct. 31, 2020

USD ($)

Mar. 31, 2020

USD ($)

Dec. 31, 2019

USD ($)

Jun. 30, 2020

USD ($)

Aug. 21, 2020

USD ($)

$ / shares

Dec. 31, 2019

USD ($)

Jun. 30, 2021

USD ($)

Dec. 31, 2020

USD ($)

Aug. 22, 2020

USD ($)

Partners' Capital Account, Contributions

$ 54,000,000

$ 73,543,000

Additional Paid in Capital, Ending Balance

$ 0

$ 590,455,000

$ 581,426,000

$ 562,054,000

Contingent Value Rights Agreement, Additional Shares, Preferred Simple Annual Return

10.00%

Contingent Value Rights Agreement, Floor Downside Per Share (in dollars per share) | $ / shares

$ 4.00

Share Price (in dollars per share) | $ / shares

$ 10.00

Contingent Value Rights Agreement, Preferred Returns, Maximum Common Stock per CVR

2.125

Common Stock, Capital Shares Reserved for Future Issuance (in shares) | shares

21,694,763

Stockholders' Agreement, Maximum Number of Board Members

Stockholders' Agreement, Number of Non-voting Observers to the Board

Registration Rights Agreement, Minimum Registrable Securities, If Not All Registratable

$ 25,000,000

Registration Rights Agreement, Minimum Demand of Registration

$ 5,000,000

Registration Rights Agreement, Maximum Number of Suspensions In Twelve Month Period

Private Placement [Member]

Forward Purchase Units Issued During the Period

8,976,875

Number of Common Stock Shares Per Forward Purchase Unit

Number of Warrants Per Forward Purchase Unit

Number of CVR Per Forward Purchase Unit

Proceeds from Issuance of Private Placement

$ 89,800,000

Principal Stockholders Group Owns At Least Thirty Five Percent Original Shares [Member]

Stockholders' Agreement, Board Nomination, Minimum Percentage of Original Shares Owned

35.00%

Stockholders' Agreement, Board Nomination, Original Shares, Outstanding Voting Securities

30.00%

Stockholders' Agreement, Maximum Number of Board Nominations

Stockholders' Agreement, Number of Independent Board Nominations, Less Than 50% Ownership

Principal Stockholders Group Owns At Least Twenty Five Percent Original Shares [Member]

Stockholders' Agreement, Board Nomination, Minimum Percentage of Original Shares Owned

25.00%

Stockholders' Agreement, Board Nomination, Original Shares, Outstanding Voting Securities

25.00%

Stockholders' Agreement, Maximum Number of Board Nominations

Principal Stockholders Group Owns at Least Fifteen Percent Original Shares [Member]

Stockholders' Agreement, Board Nomination, Minimum Percentage of Original Shares Owned

15.00%

Stockholders' Agreement, Board Nomination, Original Shares, Outstanding Voting Securities

15.00%

Stockholders' Agreement, Maximum Number of Board Nominations

Principal Stockholders Group Owns At Least Five Percent Original Shares [Member]

Stockholders' Agreement, Board Nomination, Minimum Percentage of Original Shares Owned

5.00%

Stockholders' Agreement, Board Nomination, Original Shares, Outstanding Voting Securities

7.50%

Stockholders' Agreement, Maximum Number of Board Nominations

Right to Appoint Representative to Serve On Each Committee, Excluding Audit Committee [Member]

Stockholders' Agreement, Board Nomination, Minimum Percentage of Original Shares Owned

20.00%

Stockholders' Agreement, Board Nomination, Original Shares, Outstanding Voting Securities

7.50%

Conversion of Accounts Payable to Common Stock [Member]

Debt Conversion, Original Debt, Amount

$ 9,500,000

High Peak Business Combination [Member] | Common Stock [Member]

Business Combination, Consideration Transferred, Equity Interests Issued and Issuable

91,592,354

High Peak Business Combination [Member] | Common Stock [Member] | Chief Financial Officer [Member]

Business Combination, Consideration Transferred, Equity Interests Issued and Issuable

5,000

High Peak Business Combination [Member] | Common Stock [Member] | President [Member]

Business Combination, Consideration Transferred, Equity Interests Issued and Issuable

16,802

High Peak Business Combination [Member] | Common Stock [Member] | Chief Operating Officer [Member]

Business Combination, Consideration Transferred, Equity Interests Issued and Issuable

14,000

High Peak Business Combination [Member] | Warrants [Member]

Business Combination, Consideration Transferred, Equity Interests Issued and Issuable

10,538,183

High Peak Business Combination [Member] | Warrants [Member] | Chief Financial Officer [Member]

Business Combination, Consideration Transferred, Equity Interests Issued and Issuable

5,000

High Peak Business Combination [Member] | Warrants [Member] | President [Member]

Business Combination, Consideration Transferred, Equity Interests Issued and Issuable

20,382

High Peak Business Combination [Member] | Warrants [Member] | Chief Operating Officer [Member]

Business Combination, Consideration Transferred, Equity Interests Issued and Issuable

14,000

High Peak Business Combination [Member] | Contingent Value Right [Member]

Business Combination, Consideration Transferred, Equity Interests Issued and Issuable

10,209,300

High Peak Business Combination [Member] | Contingent Value Right [Member] | Chief Financial Officer [Member]

Business Combination, Consideration Transferred, Equity Interests Issued and Issuable

5,000

High Peak Business Combination [Member] | Contingent Value Right [Member] | President [Member]

Business Combination, Consideration Transferred, Equity Interests Issued and Issuable

16,802

High Peak Business Combination [Member] | Contingent Value Right [Member] | Chief Operating Officer [Member]

Business Combination, Consideration Transferred, Equity Interests Issued and Issuable

14,000

HighPeak Energy Employees, Inc [Member]

Business Combination, Consideration Transferred, Total

$ 10.00

Pure Acquisition [Member] | Conversion of Pure's Class A Common Stock Into HighPeak Energy Common Stock [Member]

Business Combination, Conversion of Stock, Conversion Ratio

Business Combination, Conversion of Stock, Cash Issued (in dollars per share) | $ / shares

$ 0.62

Business Combination, Conversion of Stock, Minimum Redemption Value for Cash Issuance (in dollars per share) | $ / shares

$ 10.00

Business Combination, Conversion of Stock, Cash Issued Total

$ 767,902

HPK, LP [Member]

Limited Partners' Capital Account, Distribution Amount

$ 2,800,000

Additional Paid in Capital, Ending Balance

^[1]

Pure [Member]

Additional Paid in Capital, Ending Balance

^[2]

(13,699,000)

HighPeak I [Member] | HPK, LP [Member] | Reimbursement of Costs Incurred by Management Company [Member]

2,400,000

HighPeak II [Member] | HPK, LP [Member] | Reimbursement of Costs Incurred by Management Company [Member]

$ 3,800,000

HighPeak II [Member] | HPK, LP [Member] | Reimbursement of Costs Incurred by Management Company [Member] | General and Administrative Expense [Member]

$ 4,100,000

HighPeak I and HighPeak II [Member] | High Peak Business Combination [Member] | Common Stock [Member]

Business Combination, Consideration Transferred, Equity Interests Issued and Issuable

$ 76,383,054

HighPeak I and HighPeak II [Member] | HPK, LP [Member]

Limited Partners' Capital Account, Distribution Amount

2,800,000

HighPeak I and HighPeak II [Member] | HPK, LP [Member] | Reimbursement of Costs Incurred by Management Company [Member] | General and Administrative Expense [Member]

4,700,000

Pure [Member] | High Peak Business Combination [Member] | Contingent Value Right [Member]

Business Acquisition, Contingent Value, Right Issuable, Per Share Of Common Stock (in shares) | shares

Pure [Member] | High Peak Business Combination [Member] | Contingent Value Right [Member] | Warrant In Connection With Common Stock, Excluding Fraction Shares [Member]

Business Acquisition, Number Of Warrants Per Unit (in shares) | shares

G4 Companies, LLC [Member]

$ 1,500,000

Limited Partner [Member]

Partners' Capital Account, Contributions

$ 54,000,000

54,000,000

$ 73,543,000

Limited Partner [Member] | HighPeak I [Member] | HPK, LP [Member]

Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest

51.90%

Limited Partner [Member] | HighPeak II [Member] | HPK, LP [Member]

Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest

48.10%

Limited Partner [Member] | HighPeak I [Member] | HPK, LP [Member]

Partners' Capital Account, Contributions

805,000

Limited Partner [Member] | HighPeak II [Member] | HPK, LP [Member]

Partners' Capital Account, Contributions

$ 25,800,000

$ 54,000,000.0

[1]

Represents HPK LP’s condensed consolidated balance sheet estimated as of August 21, 2020.

[2]

Represents Pure's condensed consolidated balance sheet estimated as of August 21, 2020 after taking into account: (i) the closing of its trust account, (ii) the redemption of Pure's Class A Common Stock by the former public stockholders of Pure that elected to redeem, (iii) paying out the cash consideration to those former public stockholders of Pure who elected to remain and (iv) the conversion of the remaining shares of Pure's Class A Common Stock to HighPeak Energy common stock upon the closing of the HighPeak business combination. The $13.7 million reduction to equity is considered noncash offering costs on the condensed consolidated statement of changes in stockholders’ equity.

Note 10 - Related Party Transactions - HighPeak II Results of Operations (Details) - USD ($) $ in Thousands	3 Months Ended				4 Months Ended		6 Months Ended		8 Months Ended	9 Months Ended	12 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2020	Dec. 31, 2019	Jun. 30, 2021	Jun. 30, 2020	Aug. 21, 2020	Sep. 30, 2019	Dec. 31, 2019
Total operating revenues	$ 48,270		$ 944		$ 16,400		$ 73,987	$ 5,567	$ 8,223		$ 8,115
Oil and natural gas production	4,692		1,814		2,653		6,919	4,203	4,870		3,372
Production and ad valorem taxes	2,543		94		886		4,207	402	566		449
Exploration and abandonment	463		1		5,032		654	4	4		2,850
Depletion, depreciation and amortization	16,857		1,735		9,877		29,820	5,091	6,385		4,269
Accretion of discount on asset retirement obligations	37		35		51		72	69	89		72
Total operating costs and expenses	27,232		5,091		37,050		47,037	14,042	16,754		19,694
Loss from operations	21,038		(4,147)		(20,650)		26,950	(8,475)	(8,531)		(11,579)
Net loss	5,743	$ 4,744	(4,147)	$ (80,831)	(16,429)		10,487	(84,978)	(85,034)		(11,579)
Crude Oil Sales [Member]
Total operating revenues	46,985		938		15,988		71,855	5,462	8,069		7,849
Natural Gas and NGL Sales [Member]
Total operating revenues	$ 1,285		$ 6		$ 412		$ 2,132	$ 105	$ 154		$ 266
HighPeak II [Member]
Total operating revenues						$ 3,858				$ 942
Oil and natural gas production						1,578				1,190
Production and ad valorem taxes						188				59
Exploration and abandonment						33				756
Depletion, depreciation and amortization						1,612				650
Accretion of discount on asset retirement obligations						34				86
General and administrative										2,891
Total operating costs and expenses						9,604				6,754
Loss from operations						(5,746)				(5,812)
Interest income										107
Net loss						(5,746)				(5,705)
HighPeak II [Member] \| Discontinued Operations, Disposed of by Means Other than Sale, Abandonment [Member]
Abandoned project										1,122
HighPeak II [Member] \| Crude Oil Sales [Member]
Total operating revenues						3,695				719
HighPeak II [Member] \| Natural Gas and NGL Sales [Member]
Total operating revenues						$ 163				$ 223

Note 10 - Related Party Transactions - Construction of Beginning Balance of the Company (Details) - USD ($)
$ in Thousands

Jun. 30, 2021

Mar. 31, 2021

Dec. 31, 2020

Aug. 22, 2020

Aug. 21, 2020

Jun. 30, 2020

Mar. 31, 2020

Dec. 31, 2019

Dec. 31, 2018

Cash and cash equivalents

$ 12,842

$ 19,552

$ 86,483

$ 22,711

Cash and cash equivalents

(12,842)

(19,552)

(86,483)

(22,711)

Accounts Receivable, after Allowance for Credit Loss, Current, Total

23,786

7,722

3,027

3,363

Accounts receivable

(23,786)

(7,722)

(3,027)

(3,363)

Total current assets

37,957

33,295

89,510

92,026

Total current assets

(37,957)

(33,295)

(89,510)

(92,026)

Total oil and gas properties, net

565,173

502,636

452,039

404,794

Total oil and gas properties, net

(565,173)

(502,636)

(452,039)

(404,794)

Other property and equipment, net

1,057

1,092

436

1,088

Other property and equipment, net

(1,057)

(1,092)

(436)

(1,088)

Total assets

604,423

537,930

541,985

497,908

Total assets

(604,423)

(537,930)

(541,985)

(497,908)

Current liabilities

54,340

22,435

28,358

30,980

Current liabilities

(54,340)

(22,435)

(28,358)

(30,980)

Deferred income tax liability

41,432

38,898

39,946

Deferred income tax liability

(41,432)

(38,898)

(39,946)

Notes payable (receivable)

Asset retirement obligations

2,965

2,293

2,398

2,212

Asset retirement obligations

(2,965)

(2,293)

(2,398)

(2,212)

Partners' capital

$ 430,902

$ 433,738

$ 437,885

464,716

$ 84,057

Partners' capital

(430,902)

$ (433,738)

$ (437,885)

(464,716)

$ (84,057)

Common stock

(9)

Additional Paid in Capital, Ending Balance

590,455

581,426

562,054

Additional paid-in capital

(590,455)

(581,426)

(562,054)

Retained Earnings (Accumulated Deficit), Ending Balance

(96,722)

(107,209)

(90,780)

(5,746)

Accumulated deficit

96,722

107,209

90,780

5,746

Total stockholders' equity/partner's capital

493,742

$ 486,976

474,226

471,283

Total stockholders' equity/partner's capital

(493,742)

$ (486,976)

(474,226)

(471,283)

Total liabilities and stockholders' equity/partners' capital

604,423

537,930

541,985

497,908

Total liabilities and stockholders' equity/partners' capital

$ (604,423)

$ (537,930)

$ (541,985)

$ (497,908)

High Peak Business Combination [Member] | Issuance of HighPeak Energy Common Stock [Member]

Cash and cash equivalents

^[1]

92,554

Cash and cash equivalents

^[1]

(92,554)

Accounts Receivable, after Allowance for Credit Loss, Current, Total

^[1]

Accounts receivable

^[1]

Total current assets

^[1]

92,554

Total current assets

^[1]

(92,554)

Total oil and gas properties, net

^[1]

Total oil and gas properties, net

^[1]

Other property and equipment, net

^[1]

Other property and equipment, net

^[1]

Total assets

^[1]

92,554

Total assets

^[1]

(92,554)

Current liabilities

^[1]

9,538

Current liabilities

^[1]

(9,538)

Deferred income tax liability

^[1]

Deferred income tax liability

^[1]

Notes payable (receivable)

^[1]

Notes payable (receivable)

^[1]

Asset retirement obligations

^[1]

Asset retirement obligations

^[1]

Partners' capital

^[1]

(521,682)

Partners' capital

^[1]

521,682

Common stock

^[1]

Common stock

^[1]

(9)

Additional Paid in Capital, Ending Balance

^[1]

623,765

Additional paid-in capital

^[1]

(623,765)

Retained Earnings (Accumulated Deficit), Ending Balance

^[1]

Accumulated deficit

^[1]

Total stockholders' equity/partner's capital

^[1]

102,092

Total stockholders' equity/partner's capital

^[1]

(102,092)

Total liabilities and stockholders' equity/partners' capital

^[1]

92,554

Total liabilities and stockholders' equity/partners' capital

^[1]

(92,554)

High Peak Business Combination [Member] | Offering Costs [Member]

Cash and cash equivalents

^[2]

8,114

Cash and cash equivalents

^[2]

(8,114)

Accounts Receivable, after Allowance for Credit Loss, Current, Total

^[2]

(0)

Accounts receivable

^[2]

Total current assets

^[2]

8,114

Total current assets

^[2]

(8,114)

Total oil and gas properties, net

^[2]

(0)

Total oil and gas properties, net

^[2]

Other property and equipment, net

^[2]

(0)

Other property and equipment, net

^[2]

Total assets

^[2]

8,114

Total assets

^[2]

(8,114)

Current liabilities

^[2]

(0)

Current liabilities

^[2]

Deferred income tax liability

^[2]

(0)

Deferred income tax liability

^[2]

Notes payable (receivable)

^[2]

(0)

Notes payable (receivable)

^[2]

Asset retirement obligations

^[2]

(0)

Asset retirement obligations

^[2]

Partners' capital

^[2]

(0)

Partners' capital

^[2]

Common stock

^[2]

(0)

Common stock

^[2]

Additional Paid in Capital, Ending Balance

^[2]

8,114

Additional paid-in capital

^[2]

(8,114)

Retained Earnings (Accumulated Deficit), Ending Balance

^[2]

(0)

Accumulated deficit

^[2]

Total stockholders' equity/partner's capital

^[2]

8,114

Total stockholders' equity/partner's capital

^[2]

(8,114)

Total liabilities and stockholders' equity/partners' capital

^[2]

8,114

Total liabilities and stockholders' equity/partners' capital

^[2]

(8,114)

High Peak Business Combination [Member] | Deferred Tax Liability [Member]

Cash and cash equivalents

^[3]

Cash and cash equivalents

^[3]

Accounts Receivable, after Allowance for Credit Loss, Current, Total

^[3]

Accounts receivable

^[3]

Total current assets

^[3]

Total current assets

^[3]

Total oil and gas properties, net

^[3]

Total oil and gas properties, net

^[3]

Other property and equipment, net

^[3]

Other property and equipment, net

^[3]

^[3]

^[3]

^[3]

^[3]

Deferred income tax liability

^[3]

39,946

Deferred income tax liability

^[3]

(39,946)

Notes payable (receivable)

^[3]

Notes payable (receivable)

^[3]

Asset retirement obligations

^[3]

Asset retirement obligations

^[3]

^[3]

^[3]

^[3]

^[3]

Additional Paid in Capital, Ending Balance

^[3]

(39,946)

Additional paid-in capital

^[3]

39,946

Retained Earnings (Accumulated Deficit), Ending Balance

^[3]

Accumulated deficit

^[3]

Total stockholders' equity/partner's capital

^[3]

(39,946)

Total stockholders' equity/partner's capital

^[3]

39,946

Total liabilities and stockholders' equity/partners' capital

^[3]

Total liabilities and stockholders' equity/partners' capital

^[3]

HPK, LP [Member]

Cash and cash equivalents

^[4]

1,943

Cash and cash equivalents

^[4]

(1,943)

Accounts Receivable, after Allowance for Credit Loss, Current, Total

^[4]

3,001

Accounts receivable

^[4]

(3,001)

Total current assets

^[4]

4,944

Total current assets

^[4]

(4,944)

Total oil and gas properties, net

^[4]

452,039

Total oil and gas properties, net

^[4]

(452,039)

Other property and equipment, net

^[4]

436

Other property and equipment, net

^[4]

(436)

Total assets

^[4]

457,419

Total assets

^[4]

(457,419)

Current liabilities

^[4]

35,794

Current liabilities

^[4]

(35,794)

Deferred income tax liability

^[4]

Deferred income tax liability

^[4]

Notes payable (receivable)

^[4]

(11,675)

Notes payable (receivable)

^[4]

11,675

Asset retirement obligations

^[4]

2,398

Asset retirement obligations

^[4]

(2,398)

Partners' capital

^[4]

521,682

Partners' capital

^[4]

(521,682)

Common stock

^[4]

Common stock

^[4]

Additional Paid in Capital, Ending Balance

^[4]

Additional paid-in capital

^[4]

Retained Earnings (Accumulated Deficit), Ending Balance

^[4]

(90,780)

Accumulated deficit

^[4]

90,780

Total stockholders' equity/partner's capital

^[4]

430,902

Total stockholders' equity/partner's capital

^[4]

(430,902)

Total liabilities and stockholders' equity/partners' capital

^[4]

457,419

Total liabilities and stockholders' equity/partners' capital

^[4]

(457,419)

Pure [Member]

Cash and cash equivalents

^[5]

Cash and cash equivalents

^[5]

(1)

Accounts Receivable, after Allowance for Credit Loss, Current, Total

^[5]

Accounts receivable

^[5]

Total current assets

^[5]

Total current assets

^[5]

(1)

Total oil and gas properties, net

^[5]

Total oil and gas properties, net

^[5]

Other property and equipment, net

^[5]

Other property and equipment, net

^[5]

Total assets

^[5]

Total assets

^[5]

(1)

Current liabilities

^[5]

2,025

Current liabilities

^[5]

(2,025)

Deferred income tax liability

^[5]

Deferred income tax liability

^[5]

Notes payable (receivable)

^[5]

11,675

Notes payable (receivable)

^[5]

(11,675)

Asset retirement obligations

^[5]

Asset retirement obligations

^[5]

^[5]

^[5]

^[5]

^[5]

Additional Paid in Capital, Ending Balance

^[5]

(13,699)

Additional paid-in capital

^[5]

13,699

Retained Earnings (Accumulated Deficit), Ending Balance

^[5]

Accumulated deficit

^[5]

Total stockholders' equity/partner's capital

^[5]

(13,699)

Total stockholders' equity/partner's capital

^[5]

13,699

Total liabilities and stockholders' equity/partners' capital

^[5]

Total liabilities and stockholders' equity/partners' capital

^[5]

(1)

HighPeak Energy Employees, Inc [Member]

Cash and cash equivalents

^[6]

Cash and cash equivalents

^[6]

(99)

Accounts Receivable, after Allowance for Credit Loss, Current, Total

^[6]

Accounts receivable

^[6]

(26)

Total current assets

^[6]

125

Total current assets

^[6]

(125)

Total oil and gas properties, net

^[6]

Total oil and gas properties, net

^[6]

Other property and equipment, net

^[6]

Other property and equipment, net

^[6]

Total assets

^[6]

125

Total assets

^[6]

(125)

Current liabilities

^[6]

Current liabilities

^[6]

(77)

Deferred income tax liability

^[6]

Deferred income tax liability

^[6]

Notes payable (receivable)

^[6]

Notes payable (receivable)

^[6]

Asset retirement obligations

^[6]

Asset retirement obligations

^[6]

^[6]

^[6]

^[6]

^[6]

Additional Paid in Capital, Ending Balance

^[6]

Additional paid-in capital

^[6]

(48)

Retained Earnings (Accumulated Deficit), Ending Balance

^[6]

Accumulated deficit

^[6]

Total stockholders' equity/partner's capital

^[6]

Total stockholders' equity/partner's capital

^[6]

(48)

Total liabilities and stockholders' equity/partners' capital

^[6]

125

Total liabilities and stockholders' equity/partners' capital

^[6]

$ (125)

[1]	Represents the issuance by the Company of 91,592,354 shares of common stock, 10,538,183 warrants and 10,209,300 Contingent Value Rights upon the closing of the HighPeak business combination. The reduction to accounts payable of $9.5 million represents those vendors of HPK LP that purchased shares under the Forward Purchase Agreement Amendment in the HighPeak business combination in lieu of being paid cash for the majority of their outstanding balances.
[2]	Represents the cash costs paid for the offering of the aforementioned shares in addition to the cash costs that had previously been incurred by Pure of $13.7 million in column (b).
[3]	Represents the beginning deferred tax liability of the Company given the combination of all the entities, most of which originated from HPK LP which was a partnership for U.S. federal income tax purposes and therefore did not record a deferred tax liability.
[4]	Represents HPK LP’s condensed consolidated balance sheet estimated as of August 21, 2020.
[5]	Represents Pure's condensed consolidated balance sheet estimated as of August 21, 2020 after taking into account: (i) the closing of its trust account, (ii) the redemption of Pure's Class A Common Stock by the former public stockholders of Pure that elected to redeem, (iii) paying out the cash consideration to those former public stockholders of Pure who elected to remain and (iv) the conversion of the remaining shares of Pure's Class A Common Stock to HighPeak Energy common stock upon the closing of the HighPeak business combination. The $13.7 million reduction to equity is considered noncash offering costs on the condensed consolidated statement of changes in stockholders’ equity.
[6]	Represents the balance sheet of HighPeak Energy Employees, Inc which was acquired by the Company for $10.00 upon the closing of the HighPeak business combination.

Note 10 - Related Party Transactions - Pro Forma Condensed Combined Financial Information (Details) - High Peak Business Combination [Member] - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Total revenues	$ 24,623	$ 9,057
Net income attributable to Common Stock	$ (23,310)	$ (8,838)
Basic and diluted net loss per share (in dollars per share)	$ (0.25)	$ (0.10)

Note 11 - Major Customers (Details Textual) - Customer Concentration Risk [Member] - Revenue Benchmark [Member]	4 Months Ended	6 Months Ended		8 Months Ended
	Dec. 31, 2020	Jun. 30, 2021	Jun. 30, 2020	Aug. 21, 2020
Lion Oil Trading and Transportation, LLC [Member]
Concentration Risk, Percentage	98.00%	95.00%	16.00%	49.00%
Enlink Crude Purchasing, LLC [Member]
Concentration Risk, Percentage			76.00%	44.00%

Note 12 - Income Taxes (Details Textual) - USD ($) $ in Thousands	4 Months Ended	6 Months Ended	12 Months Ended
	Dec. 31, 2020	Jun. 30, 2021	Dec. 31, 2020
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	21.00%
Deferred Tax Assets, Valuation Allowance, Total	$ 0	$ 0	$ 0
Deferred Tax Assets, Net of Valuation Allowance, Total	$ 12,880	$ 22,933	$ 12,880
Domestic Tax Authority [Member] \| Internal Revenue Service (IRS) [Member]
Open Tax Year		2017	2017 2018 2019

Note 12 - Income Taxes - Income Tax Benefit and Effective Tax Rate (Details) - USD ($) $ in Thousands	3 Months Ended		4 Months Ended	6 Months Ended		8 Months Ended	12 Months Ended	20 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Jun. 30, 2021	Jun. 30, 2020	Aug. 21, 2020	Dec. 31, 2019	Aug. 21, 2020
Current tax expense			$ (3,176)	$ 0
Deferred tax expense			(1,047)	2,535
Income tax expense	$ 1,420	$ 0	$ (4,223)	$ 2,535	$ 0	$ 0	$ 0	$ 0

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Note 12 - Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended		4 Months Ended	6 Months Ended		8 Months Ended	12 Months Ended	20 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Jun. 30, 2021	Jun. 30, 2020	Aug. 21, 2020	Dec. 31, 2019	Aug. 21, 2020
Income tax expense at U.S. federal statutory rate			$ (4,337)	$ 2,735
Limited tax benefit due to stock-based compensation			127	(81)
Other			(13)	(119)
Income tax expense	$ 1,420	$ 0	$ (4,223)	$ 2,535	$ 0	$ 0	$ 0	$ 0
Effective income tax rate			20.40%	19.50%

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Note 12 - Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Net operating loss carryforwards	$ 16,770	$ 9,725
Stock-based compensation	3,419	3,124
Other	107	31
Less: Valuation allowance	0	0
Net deferred tax assets	22,933	12,880
Oil and natural gas properties, principally due to differences in basis and depreciation and the deduction of intangible drilling costs for tax purposes	(64,365)	(51,778)
Net deferred tax liabilities	$ (41,432)	$ (38,898)

Note 13 - Earnings (Loss) Per Share (Details Textual)	4 Months Ended
Note 13 - Earnings (Loss) Per Share (Details Textual)	Dec. 31, 2020 shares
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)	10,225,472

Note 13 - Earnings (Loss) Per Share - Basic and Diluted Net Income (Loss) Per Share Attributable to Common Stockholders (Details) - USD ($)
shares in Thousands, $ in Thousands

3 Months Ended

4 Months Ended

6 Months Ended

8 Months Ended

12 Months Ended

Jun. 30, 2021

Mar. 31, 2021

Jun. 30, 2020

Mar. 31, 2020

Dec. 31, 2020

Jun. 30, 2021

Jun. 30, 2020

Aug. 21, 2020

Dec. 31, 2019

Net income (loss)

$ 5,743

$ 4,744

$ (4,147)

$ (80,831)

$ (16,429)

$ 10,487

$ (84,978)

$ (85,034)

$ (11,579)

Participating share-based earnings (a)

^[1]

Basic and diluted net income (loss) attributable to common stockholders

$ 5,336

$ (16,429)

$ 9,744

Basic weighted average shares outstanding (in shares)

92,676

91,629

92,634

Dilution attributable to stock-based compensation awards (in shares)

Diluted weighted average shares outstanding (in shares)

92,676

91,629

92,830

[1]	Participating earnings represent the distributed and undistributed earnings of the Company attributable to the participating securities. Unexercised stock option awards do not participate in undistributed net losses as they are not contractually obligated to do so.

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

+ References

+ Details

Note 14 - Stockholders' Equity (Successor) (Details Textual) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
Common Stock, Shares, Outstanding, Ending Balance (in shares)	92,728,781	91,967,565
Class of Warrant or Right, Outstanding (in shares)	9,500,174	10,225,472
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)	$ 11.50	$ 11.50
Common Stock, Capital Shares Reserved for Future Issuance (in shares)	21,694,763	21,694,763
Contingent Value Right [Member]
Class of Warrant or Right, Outstanding (in shares)	10,209,300	10,209,300
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right (in shares)	2.125	2.125

Note 15 - Partners' Capital (Predecessors) (Details Textual) - HPK, LP [Member] - USD ($) $ in Millions	6 Months Ended	8 Months Ended
	Jun. 30, 2020	Aug. 21, 2020
Net Income (Loss) Allocated to Limited Partners	$ 85.0	$ 85.0
Limited Partners' Capital Account, Distribution Amount		$ 2.8

Note 16 - Subsequent Events (Details Textual) - USD ($) $ in Thousands	1 Months Ended	2 Months Ended	3 Months Ended	4 Months Ended	6 Months Ended		8 Months Ended	12 Months Ended
	Dec. 31, 2020	Mar. 15, 2021	Mar. 15, 2021	Dec. 31, 2020	Jun. 30, 2021	Jun. 30, 2020	Aug. 21, 2020	Dec. 31, 2020	Dec. 31, 2019	Mar. 12, 2021
Proceeds from Warrant Exercises	$ 3,600				$ 5,466	$ 0
Class of Warrant or Right, Exercised During Period (in shares)	312,711
Subscription Receivable from Exercise of Warrants				$ 3,596			$ 0	$ 3,600	$ 0
Common Stock, Shares, Outstanding, Ending Balance (in shares)	91,967,565			91,967,565	92,728,781			91,967,565
Class of Warrant or Right, Outstanding (in shares)	10,225,472			10,225,472	9,500,174			10,225,472
Subsequent Event [Member]
Proceeds from Warrant Exercises		$ 9,100
Class of Warrant or Right, Exercised During Period (in shares)		475,298	788,009
Class of Warrant or Right, Exercised During Period, Cashless (in shares)		250,000
Stock Issued During Period, Shares, Cashless Exercise of Warrants (in shares)		78,767
Common Stock, Shares, Outstanding, Ending Balance (in shares)		92,675,898	92,675,898
Class of Warrant or Right, Outstanding (in shares)		9,500,174	9,500,174
Contingent Value Rights, Outstanding (in shares)		10,209,300	10,209,300
Subsequent Event [Member] \| Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity										$ 50,000

Note 17 - Supplemental Oil and Gas Disclosures (Unaudited) (Details Textual)
Mcfe in Thousands

4 Months Ended

8 Months Ended

12 Months Ended

Oct. 01, 2019

MMBoe

Dec. 31, 2020

MMBoe

Mcfe

Aug. 21, 2020

MMBoe

Mcfe

Dec. 31, 2020

MMBoe

Mcfe

$ / bbl

$ / MMBTU

$ / MMcf

$ / Boe

Dec. 31, 2019

MMBoe

Mcfe

$ / bbl

$ / MMBTU

$ / MMcf

$ / Boe

Dec. 31, 2018

MMBoe

Mcfe

Proved Developed and Undeveloped Reserve, Net (Energy), Ending Balance (Millions of Barrels of Oil Equivalent)

22,515

10,274

22,515

11,497

3,271

Proved Developed and Undeveloped Reserve, Net (Energy), Period Increase (Decrease), Total (Millions of Barrels of Oil Equivalent)

14,279

Oil and Gas, Exploratory Well Drilled, Production, Gross, Number

Oil and Gas, Exploratory Well Drilled, Production, Net, Number

3.0

1.8

Oil and Gas, Exploratory Well Drilled, Completion, Gross, Number

Oil and Gas, Exploratory Well Drilled, Completion, Net, Number

8.9

5.0

Oil and Gas, Proved Undeveloped Reserves, Well Drilled, Gross, Number

Oil and Gas, Proved Undeveloped Reserves, Well Drilled, Net Productive, Number

12.4

4.4

Proved Developed and Undeveloped Reserve, Revision of Previous Estimate (Energy) (Millions of Barrels of Oil Equivalent)

(1,603)

(2,120)

655

Proved Developed and Undeveloped Reserve, Revision of Previous Estimate (Energy), Well Performance (Millions of Barrels of Oil Equivalent)

(1,112)

(1,975)

789

Proved Developed and Undeveloped Reserve, Revision of Previous Estimate (Energy), Proved Undeveloped Removed (Millions of Barrels of Oil Equivalent)

(409)

Proved Developed and Undeveloped Reserve, Revision of Previous Estimate (Energy), Price Differentials (Millions of Barrels of Oil Equivalent)

(98)

(173)

(80)

Proved Developed and Undeveloped Reserve, Revision of Previous Estimate (Energy), Forecast Operating Expenses (Millions of Barrels of Oil Equivalent)

(54)

Proved Developed and Undeveloped Reserve, Production (Energy) (Millions of Barrels of Oil Equivalent)

435

270

168

Oil and Gas, Well Acquired

Proved Developed and Undeveloped Reserve, Purchase of Mineral in Place (Energy) (Millions of Barrels of Oil Equivalent)

Proved Developed and Undeveloped Reserve, Extension and Discovery (Energy) (Millions of Barrels of Oil Equivalent)

14,279

1,117

6,593

Proved Developed and Undeveloped Reserve, Contribution from Subsidiary (Energy) (Millions of Barrels of Oil Equivalent)

1,146

Proved Developed Reserves (Energy) (Millions of Barrels of Oil Equivalent)

^[1]

10,282

4,964

Oil [Member]

Oil and Gas, Average Sale Price (in USD per Barrel of Oil) | $ / bbl

39.57

55.69

Oil and Gas, Estimated Realized Price (in USD per Barrel of Oil) | $ / bbl

38.08

50.57

Proved Developed and Undeveloped Reserve, Net (Energy), Ending Balance (Millions of Barrels of Oil Equivalent)

19,032

8,633

19,032

9,372

2,914

Proved Developed and Undeveloped Reserve, Revision of Previous Estimate (Energy) (Millions of Barrels of Oil Equivalent)

(1,180)

(1,555)

217

Proved Developed and Undeveloped Reserve, Production (Energy) (Millions of Barrels of Oil Equivalent)

398

236

145

Proved Developed and Undeveloped Reserve, Purchase of Mineral in Place (Energy) (Millions of Barrels of Oil Equivalent)

Proved Developed and Undeveloped Reserve, Extension and Discovery (Energy) (Millions of Barrels of Oil Equivalent)

11,977

1,008

5,413

Proved Developed and Undeveloped Reserve, Contribution from Subsidiary (Energy) (Millions of Barrels of Oil Equivalent)

973

Proved Developed Reserves (Energy) (Millions of Barrels of Oil Equivalent)

^[1]

8,730

4,091

Natural Gas [Member]

Oil and Gas, Average Sale Price (in USD per Barrel of Oil) | $ / MMBTU

1.985

2.578

Oil and Gas, Estimated Realized Price (in USD per Barrel of Oil) | $ / MMcf

1.304

0.10

Proved Developed and Undeveloped Reserve, Net (Energy), Ending Balance (Millions of Barrels of Oil Equivalent) | Mcfe

7,939

3,711

7,939

4,654

809

Proved Developed and Undeveloped Reserve, Revision of Previous Estimate (Energy) (Millions of Barrels of Oil Equivalent) | Mcfe

(875)

(1,144)

887

Proved Developed and Undeveloped Reserve, Production (Energy) (Millions of Barrels of Oil Equivalent) | Mcfe

112

139

Proved Developed and Undeveloped Reserve, Purchase of Mineral in Place (Energy) (Millions of Barrels of Oil Equivalent) | Mcfe

Proved Developed and Undeveloped Reserve, Extension and Discovery (Energy) (Millions of Barrels of Oil Equivalent) | Mcfe

5,215

252

2,528

Proved Developed and Undeveloped Reserve, Contribution from Subsidiary (Energy) (Millions of Barrels of Oil Equivalent) | Mcfe

569

Proved Developed Reserves (Energy) (Millions of Barrels of Oil Equivalent) | Mcfe

^[1]

3,572

1,952

Natural Gas Liquids [Member]

Oil and Gas, Estimated Realized Price (in USD per Barrel of Oil) | $ / Boe

12.27

21.17

Proved Developed and Undeveloped Reserve, Net (Energy), Ending Balance (Millions of Barrels of Oil Equivalent)

2,160

1,022

2,160

1,349

222

Proved Developed and Undeveloped Reserve, Revision of Previous Estimate (Energy) (Millions of Barrels of Oil Equivalent)

(277)

(374)

290

Proved Developed and Undeveloped Reserve, Production (Energy) (Millions of Barrels of Oil Equivalent)

(0)

Proved Developed and Undeveloped Reserve, Purchase of Mineral in Place (Energy) (Millions of Barrels of Oil Equivalent)

Proved Developed and Undeveloped Reserve, Extension and Discovery (Energy) (Millions of Barrels of Oil Equivalent)

1,433

759

Proved Developed and Undeveloped Reserve, Contribution from Subsidiary (Energy) (Millions of Barrels of Oil Equivalent)

Proved Developed Reserves (Energy) (Millions of Barrels of Oil Equivalent)

^[1]

957

548

Oil Reserves, Non-producing [Member]

Proved Developed Reserves (Energy) (Millions of Barrels of Oil Equivalent)

4,517

3,101

Natural Gas Reserves, Non-producing [Member]

Proved Developed Reserves (Energy) (Millions of Barrels of Oil Equivalent) | Mcfe

1,912

1,454

Natural Gas Liquids Reserves, Non-producing [Member]

Proved Developed Reserves (Energy) (Millions of Barrels of Oil Equivalent)

517

447

[1]	As of December 31, 2020 and 2019, proved developed reserves includes proved developed non-producing reserves of 4,517 and 3,101 MBbl of crude oil, 1,912 and 1,454 MMcf of natural gas and 517 and 447 MBbl of natural gas liquids, respectively.

Note 17 - Supplemental Oil and Gas Disclosures (Unaudited) - Net Capitalized Costs (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Proved properties	$ 367,372	$ 178,835
Unproved properties	152,741	227,525
Total capitalized costs	520,113	406,360
Less: accumulated depletion	(17,477)	(1,566)
Net capitalized costs	$ 502,636	$ 404,794

Note 17 - Supplemental Oil and Gas Disclosures (Unaudited) - Cost Incurred in Oil and Natural Gas Property Acquisition, Exploration and Development (Details) - USD ($) $ in Thousands	4 Months Ended	8 Months Ended	12 Months Ended
	Dec. 31, 2020	Aug. 21, 2020	Dec. 31, 2019
Proved properties	$ 0	$ 585	$ 4,635
Unproved properties	1,181	2,753	6,288
Total acquisition costs	1,181	3,338	10,923
Exploration costs	52,837	48,801	59,349
Development costs	11,757	863	54
Oil and gas expenditures	65,775	53,002	70,326
Asset retirement obligations, net	105	(98)	(316)
Total costs incurred	$ 65,670	$ 53,100	$ 70,642

Note 17 - Supplemental Oil and Gas Disclosures (Unaudited) - Results of Operating for Oil, Natural Gas and NGL Producing Activities (Details) - USD ($) $ in Thousands	3 Months Ended		4 Months Ended	6 Months Ended		8 Months Ended	12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Jun. 30, 2021	Jun. 30, 2020	Aug. 21, 2020	Dec. 31, 2019
Oil, NGL and natural gas sales			$ 16,400			$ 8,223	$ 8,115
Lease operating expenses			2,653			4,870	3,372
Production and ad valorem taxes	$ 2,543	$ 94	886	$ 4,207	$ 402	566	449
Exploration and abandonment expense			5,032			4	2,850
Depletion, depreciation and amortization expense			9,877			6,385	4,269
Accretion of discount on asset retirement obligations			51			89	72
Results of operations from oil and gas production activities			$ (2,099)			$ (3,691)	$ (2,897)

Note 17 - Supplemental Oil and Gas Disclosures (Unaudited) - Changes in Proved Reserves (Details) Mcfe in Thousands		4 Months Ended	8 Months Ended	12 Months Ended
	Oct. 01, 2019 MMBoe	Dec. 31, 2020 MMBoe Mcfe	Aug. 21, 2020 MMBoe Mcfe	Dec. 31, 2019 MMBoe Mcfe
Proved Reserves (Millions of Barrels of Oil Equivalent)		10,274	11,497	3,271
Contribution from HighPeak II (Millions of Barrels of Oil Equivalent)	1,146			1,146
Extensions and discoveries (Millions of Barrels of Oil Equivalent)		14,279	1,117	6,593
Revisions of previous estimates (Millions of Barrels of Oil Equivalent)		(1,603)	(2,120)	655
Production (Millions of Barrels of Oil Equivalent)		(435)	(270)	(168)
Purchase of minerals in place (Millions of Barrels of Oil Equivalent)			50
Proved Reserves (Millions of Barrels of Oil Equivalent)		22,515	10,274	11,497
Oil [Member]
Proved Reserves (Millions of Barrels of Oil Equivalent)		8,633	9,372	2,914
Contribution from HighPeak II (Millions of Barrels of Oil Equivalent)				973
Extensions and discoveries (Millions of Barrels of Oil Equivalent)		11,977	1,008	5,413
Revisions of previous estimates (Millions of Barrels of Oil Equivalent)		(1,180)	(1,555)	217
Production (Millions of Barrels of Oil Equivalent)		(398)	(236)	(145)
Purchase of minerals in place (Millions of Barrels of Oil Equivalent)			44
Proved Reserves (Millions of Barrels of Oil Equivalent)		19,032	8,633	9,372
Natural Gas [Member]
Proved Reserves (Millions of Barrels of Oil Equivalent) \| Mcfe		3,711	4,654	809
Contribution from HighPeak II (Millions of Barrels of Oil Equivalent) \| Mcfe				569
Extensions and discoveries (Millions of Barrels of Oil Equivalent) \| Mcfe		5,215	252	2,528
Revisions of previous estimates (Millions of Barrels of Oil Equivalent) \| Mcfe		(875)	(1,144)	887
Production (Millions of Barrels of Oil Equivalent) \| Mcfe		(112)	(87)	(139)
Purchase of minerals in place (Millions of Barrels of Oil Equivalent) \| Mcfe			36
Proved Reserves (Millions of Barrels of Oil Equivalent) \| Mcfe		7,939	3,711	4,654
Natural Gas Liquids [Member]
Proved Reserves (Millions of Barrels of Oil Equivalent)		1,022	1,349	222
Contribution from HighPeak II (Millions of Barrels of Oil Equivalent)				78
Extensions and discoveries (Millions of Barrels of Oil Equivalent)		1,433	67	759
Revisions of previous estimates (Millions of Barrels of Oil Equivalent)		(277)	(374)	290
Production (Millions of Barrels of Oil Equivalent)		(18)	(20)	0
Purchase of minerals in place (Millions of Barrels of Oil Equivalent)			0
Proved Reserves (Millions of Barrels of Oil Equivalent)		2,160	1,022	1,349

Note 17 - Supplemental Oil and Gas Disclosures (Unaudited) - Quantities of Proved Developed and Undeveloped Reserves (Details)
Mcfe in Thousands

Dec. 31, 2020

MMBoe

Mcfe

Aug. 21, 2020

MMBoe

Mcfe

Dec. 31, 2019

MMBoe

Mcfe

Dec. 31, 2018

MMBoe

Mcfe

Proved Developed Reserves (Millions of Barrels of Oil Equivalent)

^[1]

10,282

4,964

Proved Undeveloped Reserves (Millions of Barrels of Oil Equivalent)

12,233

6,533

Total Proved Reserves (Millions of Barrels of Oil Equivalent)

22,515

10,274

11,497

3,271

Oil [Member]

Proved Developed Reserves (Millions of Barrels of Oil Equivalent)

^[1]

8,730

4,091

Proved Undeveloped Reserves (Millions of Barrels of Oil Equivalent)

10,302

5,281

Total Proved Reserves (Millions of Barrels of Oil Equivalent)

19,032

8,633

9,372

2,914

Natural Gas [Member]

Proved Developed Reserves (Millions of Barrels of Oil Equivalent) | Mcfe

^[1]

3,572

1,952

Proved Undeveloped Reserves (Millions of Barrels of Oil Equivalent) | Mcfe

4,367

2,702

Total Proved Reserves (Millions of Barrels of Oil Equivalent) | Mcfe

7,939

3,711

4,654

809

Natural Gas Liquids [Member]

Proved Developed Reserves (Millions of Barrels of Oil Equivalent)

^[1]

957

548

Proved Undeveloped Reserves (Millions of Barrels of Oil Equivalent)

1,203

801

Total Proved Reserves (Millions of Barrels of Oil Equivalent)

2,160

1,022

1,349

222

[1]	As of December 31, 2020 and 2019, proved developed reserves includes proved developed non-producing reserves of 4,517 and 3,101 MBbl of crude oil, 1,912 and 1,454 MMcf of natural gas and 517 and 447 MBbl of natural gas liquids, respectively.

Note 17 - Supplemental Oil and Gas Disclosures (Unaudited) - Standardized Measure of Discounted Future of Net Cash Flows (Details) - USD ($)
$ in Thousands

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2018

Future cash inflows

$ 740,859

$ 502,961

Future production costs

(217,025)

(127,897)

Future development costs

(117,887)

(78,360)

Future income tax expense

(25,824)

(2,640)

Future net cash flows

380,123

294,064

Discount to present value at 10% annual rate

(157,931)

(154,043)

Standardized measure of discounted future net cash flows

^[1]

$ 222,192

$ 140,021

$ 31,118

[1]

The year ended December 31, 2020 in the table above reflects the change in standardized measure from that of HPK LP, our Predecessor, as of December 31, 2019 to that of the Company as of December 31, 2020 and amounts are combined for the period from January 1, 2020 to August 21, 2020 of HPK LP and from August 22, 2020 to December 31, 2020 of the Company. There was no third-party reserve report prepared as of August 21, 2020 from which to compute a standardized measure from as of that date. The year ended December 31, 2019 in the table above reflects the change in standardized measure from that of HighPeak I, HPK LP's Predecessor, as of December 31, 2018 to that of HPK LP as of December 31, 2019 and amounts are combined for the period from January 1, 2019 to September 30, 2019 of HighPeak I and from October 1, 2019 to December 31, 2019 of HPK LP. There was no third-party reserve report prepared for HighPeak I as of October 1, 2019 from which to compute a standardized measure from as of that date. We believe the table above accurately reflects the change in standardized measure for the Predecessors and Successor in a meaningful context.

Note 17 - Supplemental Oil and Gas Disclosures (Unaudited) - Changes in Standardized Measure of Discounted Future (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2020

Dec. 31, 2019

Standardized measure of discounted future net cash flows, beginning of year

^[1]

$ 140,021

$ 31,118

Contribution of HighPeak II to Predecessors

^[1]

10,488

Sales of oil and natural gas, net of production costs

^[1]

(15,648)

(4,294)

Extensions and discoveries, net of future development costs

^[1]

172,478

85,626

Net changes in prices and production costs

^[1]

(50,728)

(6,755)

Changes in estimated future development costs

^[1]

6,466

9,483

Purchases of minerals in place

^[1]

600

Revisions of previous quantity estimates

^[1]

(41,646)

8,232

Accretion of discount

^[1]

14,134

3,165

Net changes in income taxes (1)

^[1],[2]

(10,675)

(857)

Net changes in timing of production and other

^[1]

7,190

3,801

Standardized measure of discounted future net cash flows, end of year

^[1]

$ 222,192

$ 140,021

[1]

[2]

Effective with the HighPeak business combination that closed on August 21, 2020, the Company became a corporation for tax purposes. As such, the "Net change in income taxes" in the table above for the year ended December 31, 2020 reflects that change in tax status. Prior to the HighPeak business combination, the Predecessors had elected to be treated as a partnership for income tax purposes. Accordingly, federal taxable income and losses are reported on the income tax returns of the Predecessor's partners. The Predecessors were subject to margin / franchise taxes in Texas, which is reflected as "Net change in income taxes" in the table above for the year ended December 31, 2019.