0001437749-21-025683 | 10-Q | XBRL Viewer

Document And Entity Information - shares	9 Months Ended
Document And Entity Information - shares	Sep. 30, 2021	Nov. 04, 2021
Document Information [Line Items]
Entity Central Index Key	0001792849
Entity Registrant Name	HighPeak Energy, Inc.
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2021
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	333-248898
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	84-3533602
Entity Address, Address Line One	421 W. 3rd St., Suite 1000
Entity Address, City or Town	Fort Worth
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	76102
City Area Code	817
Local Phone Number	850-9200
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		95,273,677
Warrant [Member]
Document Information [Line Items]
Title of 12(b) Security	Warrants to purchase Commons Stock
Trading Symbol	HPKEW
Security Exchange Name	NASDAQ
Common Stock [Member]
Document Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	HPK
Security Exchange Name	NASDAQ

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Current Assets:
Cash and cash equivalents	$ 11,966	$ 19,552
Accounts receivable	23,891	7,722
Subscription receivable	0	3,596
Inventory	3,920	121
Prepaid expenses	2,592	2,254
Deposits	50	50
Total current assets	42,419	33,295
Crude oil and natural gas properties, using the successful efforts method of accounting:
Proved properties	602,833	367,372
Unproved properties	123,064	152,741
Accumulated depletion, depreciation and amortization	(61,066)	(17,477)
Total crude oil and natural gas properties, net	664,831	502,636
Other property and equipment, net	1,397	1,092
Other noncurrent assets	4,928	907
Total assets	713,575	537,930
Current liabilities:
Accounts payable - trade	12,347	7,581
Accrued liabilities	29,846	12,374
Derivatives	14,134	0
Advances from joint interest owners	13,463	969
Dividends and dividend equivalents payable	2,683	0
Other current liabilities	4,541	1,511
Total current liabilities	77,014	22,435
Noncurrent liabilities:
Long-term debt, net	93,102	0
Deferred income taxes	43,578	38,898
Derivatives	5,268	0
Asset retirement obligations	4,250	2,293
Other	455	78
Commitments and contingencies (Note 10)
Stockholders' equity:
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, none issued and outstanding at September 30, 2021 and December 31, 2020	0	0
Common stock, $0.0001 par value, 600,000,000 shares authorized, 92,743,677 and 91,967,565 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively	9	9
Additional paid-in capital	591,360	581,426
Accumulated deficit	101,461	107,209
Total stockholders' equity	489,908	474,226
Total liabilities and stockholders' equity	$ 713,575	$ 537,930

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Sep. 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)	92,743,677	91,967,565
Common stock, shares outstanding (in shares)	92,743,677	91,967,565

Condensed Consolidated and Combined Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	1 Months Ended	2 Months Ended	3 Months Ended	8 Months Ended	9 Months Ended
	Sep. 30, 2020	Aug. 21, 2020	Sep. 30, 2021	Aug. 21, 2020	Sep. 30, 2021
Operating Revenues:
Operating revenues	$ 4,834	$ 2,656	$ 47,472	$ 8,223	$ 121,459
Operating Costs and Expenses:
Crude oil and natural gas production	671	667	6,710	4,870	13,629
Production and ad valorem taxes	257	164	1,783	566	5,990
Exploration and abandonments	66	0	488	4	1,142
Depletion, depreciation and amortization	2,327	1,294	13,917	6,385	43,737
Accretion of discount	15	20	44	89	116
General and administrative	816	567	1,666	4,840	5,042
Stock-based compensation	14,508	0	905	0	2,894
Total operating costs and expenses	18,660	2,712	25,513	16,754	72,550
Income (loss) from operations	(13,826)	(56)	21,959	(8,531)	48,909
Interest income	1	0	0	0	1
Interest expense	0	0	(947)	0	(1,153)
Derivative loss, net	0	0	(10,820)	0	(24,416)
Other expense	0	0	0	(76,503)	(127)
Income (loss) before income taxes	(13,825)	(56)	10,192	(85,034)	23,214
Income tax expense (benefit)	(2,309)	0	2,145	0	4,680
Net income (loss)	$ (11,516)	(56)	$ 8,047	(85,034)	$ 18,534
Earnings per share:
Basic net income (loss) (in dollars per share)	$ (0.13)		$ 0.07		$ 0.18
Diluted net income (loss) (in dollars per share)	$ (0.13)		$ 0.08		$ 0.18
Weighted average shares outstanding:
Basic (in shares)	91,592		92,676		92,648
Diluted (in shares)	91,592		92,678		92,715
Dividends declared, per share (in dollars per share)			$ 0.125		$ 0.125
Crude Oil Sales [Member]
Operating Revenues:
Operating revenues	$ 4,787	2,607	$ 44,785	8,069	$ 116,640
Natural Gas and NGL Sales [Member]
Operating Revenues:
Operating revenues	$ 47	$ 49	$ 2,687	$ 154	$ 4,819

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
Compensation costs included in net income					0	14,508	0	14,508
Net income (loss)					$ 0	0	(11,516)	(11,516)
HighPeak business combination with HPK LP (in shares)					81,383,000
HighPeak business combination with HPK LP					$ 8	521,674		430,902
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	(22,035)	0	(22,035)
Deferred income tax liability at HighPeak business combination					$ 0	(40,500)	0	(40,500)
Balance (in shares) at Sep. 30, 2020					91,592,000
Balance at Sep. 30, 2020					$ 9	575,739	(102,296)	473,452
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
Shares issued upon options being 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
Shares issued upon options being exercised (in shares)								154,268
Net income (loss)								$ 18,534
Balance (in shares) at Sep. 30, 2021					92,744,000
Balance at Sep. 30, 2021					$ 9	591,360	(101,461)	489,908
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
Compensation costs included in net income					0	905	0	905
Net income (loss)					$ 0	0	8,047	8,047
Restricted shares issued to outside directors (in shares)					15,000
Restricted shares issued to outside directors					$ 0	0	0	0
Dividends declared					0	0	(11,593)	(11,593)
Dividend equivalents declared on outstanding stock options					$ 0	0	(1,193)	(1,193)
Balance (in shares) at Sep. 30, 2021					92,744,000
Balance at Sep. 30, 2021					$ 9	$ 591,360	$ (101,461)	$ 489,908

Condensed Consolidated Statement of Changes in Stockholders' Equity (Successor) (Unaudited) (Parentheticals)	3 Months Ended
	Sep. 30, 2021 $ / shares
Dividends declared, per share (in dollars per share)	$ 0.125
Dividend equivalents declared, per share (in dollars per share)	$ 0.125

Condensed Consolidated Statement of Changes in Partners' Capital (Predecessor) (Unaudited) - USD ($) $ in Thousands	Total	General Partner [Member]	Limited Partner [Member]
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
Net income (loss)	(4,147)	0	(4,147)
Balance at Jun. 30, 2020	433,738	0	433,738
Net income (loss)	(56)	0	(56)
Distribution to partners	(2,780)	0	(2,780)
Balance at Sep. 30, 2020	$ 430,902	$ 0	$ 430,902

- 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		2 Months Ended	3 Months Ended				8 Months Ended	9 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Aug. 21, 2020	Sep. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Mar. 31, 2020	Aug. 21, 2020	Sep. 30, 2021	Sep. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)		$ (11,516)	$ (56)	$ 8,047	$ 4,744	$ (56)	$ (80,831)	$ (85,034)	$ 18,534
Adjustments to reconcile net income (loss) to net cash provided by (used in) operations:
Exploration and abandonment expense		14						4	698
Depletion, depreciation and amortization expense		2,327	1,294	13,917				6,385	43,737
Accretion expense		15						89	116
Stock-based compensation expense		14,508						0	2,894
Amortization of debt issuance costs		0						0	259
Derivative-related activity		0	0	6,844				0	19,402
Loss on terminated acquisition		0						76,500	0
Deferred income taxes		(3)						0	4,680
Changes in operating assets and liabilities:
Accounts receivable		(3,404)						844	(16,168)
Prepaid expenses, inventory and other assets		(357)						(196)	(7,816)
Accounts payable, accrued liabilities and other current liabilities		9,109						(2,694)	21,401
Net cash provided by (used in) operating activities		10,693						(4,102)	87,737
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to crude oil and natural gas properties		(17,908)						(49,364)	(154,599)
Changes in working capital associated with crude oil and natural gas property additions		(23,421)						7,348	15,995
Acquisitions of crude oil and natural gas properties		(704)						(3,338)	(53,276)
Proceeds from sales of properties		0						0	3,234
Other property additions		0						(50)	(453)
Issuance of notes receivable		0						(7,482)	0
Extension payment on acquisition		0						(15,000)	0
Net cash used in investing activities		(42,033)						(67,886)	(189,099)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit facility		0						0	95,000
Proceeds from exercises of warrants	$ 3,600	0						0	5,466
Proceeds from subscription receivable from exercises of warrants		0						0	3,596
Proceeds from exercises of stock options		0						0	1,574
Debt issuance costs		0						0	(1,757)
Dividends paid		0						0	(9,274)
Dividend equivalents paid		0						0	(829)
Proceeds from stock offering		92,554						0	0
Stock offering costs		(8,383)						0	0
Cash acquired from non-successors in HighPeak business combination		100						0	0
Contributions from partners		0						54,000	0
Distributions to partners		0						(2,780)	0
Net cash provided by financing activities		84,271						51,220	93,776
Net (decrease) increase in cash and cash equivalents		52,931						(20,768)	(7,586)
Cash and cash equivalents, beginning of period		1,943			$ 19,552		$ 22,711	22,711	19,552	$ 22,711
Cash and cash equivalents, end of period	$ 19,552	54,874	$ 1,943	$ 11,966		$ 54,874		1,943	11,966	$ 54,874
Supplemental disclosure of non-cash transactions:
Interest paid		0						0	752
Income taxes paid		0						0	0
Additions to asset retirement obligations		$ 15						$ 97	$ 1,841

Note 1 - Organization and Nature of Operations

9 Months Ended

Sep. 30, 2021

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 crude oil and natural gas exploration and production company that explores for, develops and produces crude oil, NGL and natural gas in the Permian Basin in West Texas, more specifically, the Midland Basin in Eastern Howard County. Our acreage is composed of two core areas, Flat Top in the northern portion of the county and Signal Peak in the southern portion of the county.

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

9 Months Ended

Sep. 30, 2021

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 September 30, 2021 and December 31, 2020 and for the three and nine months ended September 30, 2021 and the period from August 22, 2020 through September 30, 2020 (Successor), and for the periods from July 1, 2020 through August 21, 2020 and January 1, 2020 through August 21, 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 nine months ended September 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 crude oil and natural gas properties and evaluations for impairment of proved and unproved crude oil and natural gas properties, in part, is determined using estimates of proved, probable and possible crude 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 crude 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 crude 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 September 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 $19.6 million and $4.2 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 $3.2 million, respectively, and joint interest receivables of $1.1 million and $345,000, respectively. The Company’s share of crude 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 September 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 September 30, 2021 as all cash related to exercises of warrants was received prior to the balance sheet date.

Inventory. Inventory is comprised primarily of crude oil and natural gas drilling or repair items such as tubing, casing, proppant used to fracture-stimulate crude oil and natural gas wells, water, chemicals, pumps, 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 September 30, 2021 and December 31, 2020 is $3.9 million and $121,000, respectively, and the Company has not recognized any valuation allowance to date.

Crude oil and natural gas properties. The Company utilizes the successful efforts method of accounting for its crude 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 crude 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 are credited to proved or unproved oil and natural gas properties, as the case may be, 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 crude 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 crude 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 $385,000 and $237,000 as of September 30, 2021 and December 31, 2020, respectively, are as follows (in thousands):

September 30,

2021

December 31,

2020

Land
$ 1,122 $ 725

Information technology
167 292

Transportation equipment
86 41

Leasehold improvements
13 24

Field equipment
9 10

Total other property and equipment, net
$ 1,397 $ 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.

Aid-in-construction assets. As of September 30, 2021, the Company has aid-in-construction assets totaling $3.9 million, included in other noncurrent assets. The Company contracted with the natural gas gatherer and processor in its Flat Top area to construct a low-pressure gas gathering system to transport the Company’s gas to its processing facility. The Company agreed to incur the cost to construct the system in return for future payments based on gross throughput through the system, including any other third-party natural gas that is potentially tied into the system in the future. Based on the Company’s current projections of its natural gas reserves in Flat Top, it is anticipated that the full amount will be paid back in less than four years. The contract calls for future aid-in-construction fundings if expansions of the system are necessary at the sole discretion of the Company.

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 nine months ended September 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 $259,000 and zero during the nine months ended September 30, 2021 and 2020, respectively. As of September 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 generally not recorded as lease right-of-use assets and liabilities. See Note 10 for additional information.

Accounts payable, accrued liabilities, derivative liabilities and accrued dividends and dividend equivalents. Accounts payable, accrued liabilities, derivative liabilities and accrued dividends and dividend equivalents included in current liabilities as of September 30, 2021 and December 31, 2020 totaled approximately $77.0 million and $22.4 million, respectively, including trade accounts payable, derivative liabilities, accrued dividends and dividend equivalents, 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 crude 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 crude 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 crude 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 crude oil and natural gas marketing contracts is typically received from the purchaser one to two months after production. As of September 30, 2021 and December 31, 2020, the Company had receivables related to contracts with purchasers of approximately $19.6 million and $4.2 million, respectively.

Crude Oil Contracts. The Company’s crude oil marketing contracts transfer physical custody and title at or near the wellhead, which is generally when control of the crude oil has been transferred to the purchaser. The crude oil produced is sold under contracts using market-based pricing which is then adjusted for the differentials based upon delivery location and crude oil quality. Since the differentials are incurred after the transfer of control of the crude oil, the differentials are included in crude 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 or 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 September 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 outside 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 crude 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 ("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 crude oil throughout the world and when combined with pressures on the global supply-demand balance for crude oil and related products, resulted in significant volatility in crude 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 crude 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 September 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 3 - Acquisitions and Divestitures

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Acquisitions [Text Block]

NOTE 3. Acquisitions and Divestitures

Acquisitions. During the nine months ended September 30, 2021, the Company incurred a total of $53.3 million in multiple bolt-on acquisitions and lease acquisitions to acquire a total of approximately 10,600 net acres in and around the Company’s existing properties for future exploration activities in the Midland Basin and non-operated working interests in approximately 10 gross (3.3 net) horizontal wells and 101 gross (18.6 net) vertical wells plus an interest in 2 gross (0.2 net) salt-water disposal wells and 3 gross (1.5 net) horizontal wells that were in the process of being drilled as of the closing date. During the nine months ended September 30, 2020, the Company incurred a total of $4.0 million to acquire primarily undeveloped acreage, three vertical producing wells and two salt-water disposal wells in and around the Company’s existing properties for future exploration activities in the Midland Basin.

All of the aforementioned individual acquisitions that included producing properties were accounted for as asset acquisitions as substantially all of the gross assets acquired in each individual acquisition are concentrated in a group of similar identifiable assets. The consideration paid was allocated to the individual assets acquired and liabilities assumed based on their relative fair values. All transaction costs associated with the acquisitions were capitalized.

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 crude 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 nine months ended September 30, 2020.

Divestitures. During the nine months ended September 30, 2021, the Company realized net proceeds of $3.2 million, which reduced the Company’s proved properties with no gain or loss recognized when it divested of 1 gross (0.2 net) non-operated horizontal well and acquired 4 gross (3.7 gross) operated vertical wells in a trade with another operator whereby the Company traded an approximate equal number of net mineral acres to increase its working interest in certain areas of Flat Top where it serves as operator and decrease its working interest in other areas of Flat Top where the other party serves as operator.

Note 4 - Fair Value Measurements

9 Months Ended

Sep. 30, 2021

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 September 30, 2021 are as follows (in thousands):

	As of September 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 – current	$	—	$	14,134	$	—	$	14,134
Commodity price derivatives – noncurrent		—		5,268		—		5,268
Commodity price derivatives	$	—	$	19,402	$	—	$	19,402

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 crude 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 crude 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 crude 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 crude oil and natural gas properties as of September 30, 2021 and December 31, 2020 and determined that its proved crude oil and natural gas properties were not impaired. The primary factors that may affect estimates of future cash flows for the Company's proved crude 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 crude oil demand due to the effects of the COVID-19 pandemic. It is reasonably possible that the carrying value of the Company's proved crude 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 crude oil and natural 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

9 Months Ended

Sep. 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 September 30, 2020							Nine Months Ended September 30, 2020
	Three Months Ended September 30, 2021			August 22, 2020 through September 30, 2020		July 1, 2020 through August 21, 2020		Nine Months Ended September 30, 2021			August 22, 2020 through September 30, 2020		January 1, 2020 through August 21, 2020
	Successor			Successor		Predecessor		Successor			Successor		Predecessor
Noncash derivative gain (loss), net	$	(6,844	)	$	—	$	—	$	(19,402	)	$	—	$	—
Cash payments on settled derivatives, net		(3,976	)		—		—		(5,014	)		—		—
Derivative gain (loss), net	$	(10,820	)	$	—	$	—	$	(24,416	)	$	—	$	—

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

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

	2021		2022										2023
	Fourth Quarter		First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Total		First Quarter		Second Quarter		Total
Crude Oil Price Swaps - WTI: (a)
Volume (MBbls)		460.0		450.0		302.5		66.0		202.4		1,020.9		198.0		200.2		398.2
Price per Bbl	$	61.91	$	61.91	$	62.16	$	57.22	$	57.22	$	60.75	$	57.22	$	57.22	$	57.22

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 September 30, 2021.

Note 6 - Exploratory Well Costs

9 Months Ended

Sep. 30, 2021

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):

	Nine Months Ended September 30, 2021
Beginning capitalized exploratory well costs	$	32,592
Additions to exploratory well costs		127,444
Reclassification to proved properties		(155,528	)
Exploratory well costs charged to exploration and abandonment expense		—
Ending capitalized exploratory well costs	$	4,508

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

Note 7 - Long-term Debt

9 Months Ended

Sep. 30, 2021

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):

	September 30,			December 31,
	2021			2020
Revolving Credit Facility due 2024	$	95,000		$	—
Debt issuance costs, net (a)		(1,898	)		—
Total debt		93,102			—
Less current portion of long-term debt		—			—
Long-term debt, net	$	93,102		$	—

(a) Debt issuance costs as of September 30, 2021 consisted of $2.2 million in costs less accumulated amortization of $263,000. 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. In October 2021, the Company entered into the Second Amendment to the Credit Agreement to among other things, (i) complete a semi-annual borrowing base redetermination process, which increased the borrowing base from $125.0 million to $195.0 million and (ii) modified the terms of the Credit Agreement to increase the aggregate elected commitments from $125.0 million to $195.0 million. The syndicate of banks in the credit facility remained the same, although commitment percentages changed slightly 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 stands at $125.0 million as of September 30, 2021, increased to $195.0 million on October 1, 2021), (ii) the aggregate elected commitments (which stand at $125.0 million as of September 30, 2021, increased to $195.0 million on October 1, 2021) and (iii) $500.0 million. As of September 30, 2021 and December 31, 2020, the Company had $95.0 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 4.00 percent as of September 30, 2021, dropping to 3.5 percent on October 1, 2021 and which is 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’ crude 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 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 8 - Asset Retirement Obligations

9 Months Ended

Sep. 30, 2021

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):

	Nine Months Ended September 30, 2021
Beginning asset retirement obligations	$	2,293
Liabilities incurred from new wells		877
Liabilities assumed in acquisitions		980
Liabilities divested		(6	)
Revision of estimates (a)		(10	)
Accretion of discount		116
Ending asset retirement obligations	$	4,250

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

Note 9 - Incentive Plans

9 Months Ended

Sep. 30, 2021

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 nine months ended September 30, 2021 and 2020, the Company contributed $167,000 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:

	September 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 nine months ended September 30, 2021 and 2020 was $2.7 million and $14.5 million, respectively, and as of September 30, 2021 and December 31, 2020 there was $1.2 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 one year.

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
Forfeitures		(10,000	)	$	10.00
Outstanding at September 30, 2021		9,541,227		$	10.00		8.9	$	—

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 September 30, 2021		8,293,903		$	10.00		8.9	$	—
Exercisable at September 30, 2021		8,293,903		$	10.00		8.9	$	—

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. Therefore, stock-based compensation expense of $228,000 was recognized during the nine months ended September 30, 2021, and the remaining $455,000 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 10 - Commitments and Contingencies

9 Months Ended

Sep. 30, 2021

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 September 30, 2021 the Company had right-of-use assets totaling $987,000 included in other noncurrent assets and operating lease liabilities totaling $990,000, $534,000 of which are included in other current liabilities and $456,000 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):

	September 30, 2021
Remainder of 2021	$	562
2022		466
Total lease payments		1,028
Less present value discount		(38	)
Present value of lease liabilities	$	990

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 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 September 30, 2021, the Company has delivered approximately 2.2 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 $367,000 as of September 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 a crude 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 remaining monetary commitment as of September 30, 2021, if the Company never delivers any additional 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. The Company will provide WTG with certain aid-in-construction payments to be reimbursed over time based on throughput through the system. 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 11 - Related Party Transactions

9 Months Ended

Sep. 30, 2021

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 nine months ended September 30, 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 nine months ended September 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 12 - Major Customers

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

NOTE 12. Major Customers

Lion Oil Trading and Transportation, LLC (“Lion”) accounted for approximately 94% of the Company’s revenues during the nine months ended September 30, 2021. Lion and Enlink Crude Purchasing, LLC accounted for approximately 67% and 28%, respectively, of the Company’s revenues during the nine months ended September 30, 2020. Based on the current demand for crude 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

9 Months Ended

Sep. 30, 2021

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):

	Nine Months Ended September 30, 2021
Current tax expense	$	—
Deferred tax expense		4,680
Income tax expense	$	4,680

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):

	Nine Months Ended September 30, 2021
Income tax expense at U.S. federal statutory rate	$	4,875
Limited tax benefit due to stock-based compensation		(61	)
Other		(134	)
Income tax expense	$	4,680
Effective income tax rate	20.2		%

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

	September 30, 2021			December 31, 2020
Deferred tax assets:
Unrecognized derivative losses	$	4,074		$	—
Stock-based compensation		3,589			3,124
Net operating loss carryforwards		51			9,725
Other		79			31
Less: Valuation allowance		—			—
Net deferred tax assets		7,793			12,880
Deferred tax liabilities:
Crude oil and natural gas properties, principally due to differences in basis and depreciation and the deduction of intangible drilling costs for tax purposes		(51,371	)		(51,778	)
Net deferred tax liabilities	$	(43,578	)	$	(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 September 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 $7.8 million and $12.9 million in deferred tax assets it has as of September 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.

- 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
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+ Details

Note 14 - Earnings Per Share

9 Months Ended

Sep. 30, 2021

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 nine months ended September 30, 2021 under the two-class method (in thousands):

	Three			Nine
	Months Ended			Months Ended
	September 30,			September 30,
	2021			2021
Net income as reported	$	8,047		$	18,534
Participating basic earnings (a)		(1,193	)		(1,669	)
Basic earnings attributable to common stockholders		6,854			16,865
Reallocation of participating earnings		392			1
Diluted net income attributable to common stockholders	$	7,246		$	16,866

Basic weighted average shares outstanding		92,676			92,648
Dilutive warrants and unvested stock options		2			67
Diluted weighted average shares outstanding		92,678			92,715

(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 15 - Stockholders' Equity (Successor)

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

NOTE 15. Stockholders’ Equity (Successor)

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 and accrued a dividend equivalent per share to all unvested stock option holders payable upon vesting, which equates to a total payment of $829,000 during the nine months ended September 30, 2021 and up to an additional $125,000 in August 2022, assuming no forfeitures.

In September 2021, the board of directors of the Company approved a quarterly dividend of $0.025 per share of common stock outstanding which resulted in accrued dividends payable included in current liabilities as of September 30, 2021 of $2.3 million to be paid on October 25, 2021. In addition, under terms of the LTIP, the Company accrued a dividend equivalent per share to all vested stock option holders and a dividend equivalent per share to all unvested stock option holders payable upon vesting, which equates to a total of $207,000 to be paid in October 2021 and up to an additional $31,000 in August 2022, assuming no forfeitures.

Outstanding Securities. At September 30, 2021 and December 31, 2020, the Company had 92,743,677 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.

- 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.

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+ Details

Note 16 - Partners' Capital (Predecessor)

9 Months Ended

Sep. 30, 2021

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 period from January 1, 2020 through August 21, 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. The Predecessor made distributions to partners of $2.8 million during the period from January 1, 2020 through August 21, 2020.

Note 17 - Subsequent Events

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Subsequent Events [Text Block]

NOTE 17. Subsequent Events

Dividends and dividend equivalents. As previously discussed, in October 2021, the Company paid a quarterly dividend of $0.025 per share of common stock outstanding which resulted in a total of $2.3 million in dividends being paid on October 25, 2021. In addition, under the terms of the LTIP, the Company paid a dividend equivalent per share to all vested stock option holders of $207,000 in October 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 $31,000 in August 2022, assuming no forfeitures.

Revolving Credit Facility. Also as previously discussed, in October 2021, the Company entered into the Second Amendment to the Credit Agreement to among other things, (i) complete a semi-annual borrowing base redetermination process, which increased the borrowing base from $125.0 million to $195.0 million and (ii) modified the terms of the Credit Agreement to increase the aggregate elected commitments from $125.0 million to $195.0 million. The syndicate of banks in the credit facility remained the same, although commitment percentages changed slightly with Fifth Third remaining the administrative agent.

Public Offering of Common Stock. On October 25, 2021, the Company completed the offering of 2,530,000 shares of its common stock, at a price to the public of $10.00 per share, pursuant to a registration statement on Form S-1 filed with the Securities and Exchange Commission on October 19, 2021. The net proceeds to the Company from the offering, after deducting the underwriting discounts and commissions and other offering expenses, were approximately $23.0 million. The Company intends to use the net proceeds of this offering for general corporate purposes, which may include accelerating its drilling and development activities and funding additional bolt-on acquisitions.

Derivative financial instruments. In October 2021, the Company entered into additional crude oil derivative financial instruments with other counterparties that are included in our syndicate of banks associated with our Revolving Credit Facility. After giving effect to these new contracts, the Company’s outstanding crude oil derivative contracts and the weighted average crude oil prices per barrel for those contracts are as follows:

	2021		2022										2023
	Fourth Quarter		First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Total		First Quarter		Second Quarter		Total
Crude Oil Price Swaps - WTI: (a)
Volume (MBbls)		540.6		684.0		441.5		146.0		239.0		1,510.5		198.0		200.2		398.2
Price per Bbl	$	64.35	$	67.52	$	66.59	$	65.88	$	59.37	$	65.80	$	57.22	$	57.22	$	57.22

Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

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.

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.

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 crude oil and natural gas properties and evaluations for impairment of proved and unproved crude oil and natural gas properties, in part, is determined using estimates of proved, probable and possible crude 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 crude 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 crude 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, 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 September 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 $19.6 million and $4.2 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 $3.2 million, respectively, and joint interest receivables of $1.1 million and $345,000, respectively. The Company’s share of crude 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 September 30, 2021 and December 31, 2020, the Company had no allowance for doubtful accounts.

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 September 30, 2021 as all cash related to exercises of warrants was received prior to the balance sheet date.

Inventory, Policy [Policy Text Block]

Inventory. Inventory is comprised primarily of crude oil and natural gas drilling or repair items such as tubing, casing, proppant used to fracture-stimulate crude oil and natural gas wells, water, chemicals, pumps, 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 September 30, 2021 and December 31, 2020 is $3.9 million and $121,000, respectively, and the Company has not recognized any valuation allowance to date.

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

Crude oil and natural gas properties. The Company utilizes the successful efforts method of accounting for its crude 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 crude 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 are credited to proved or unproved oil and natural gas properties, as the case may be, 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 crude 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 crude 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.

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 $385,000 and $237,000 as of September 30, 2021 and December 31, 2020, respectively, are as follows (in thousands):

	September 30, 2021		December 31, 2020
Land	$	1,122	$	725
Information technology		167		292
Transportation equipment		86		41
Leasehold improvements		13		24
Field equipment		9		10
Total other property and equipment, net	$	1,397	$	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 Non-current Assets, Aid-in-Construction Assets, Policy [Policy Text Block]

Aid-in-construction assets. As of September 30, 2021, the Company has aid-in-construction assets totaling $3.9 million, included in other noncurrent assets. The Company contracted with the natural gas gatherer and processor in its Flat Top area to construct a low-pressure gas gathering system to transport the Company’s gas to its processing facility. The Company agreed to incur the cost to construct the system in return for future payments based on gross throughput through the system, including any other third-party natural gas that is potentially tied into the system in the future. Based on the Company’s current projections of its natural gas reserves in Flat Top, it is anticipated that the full amount will be paid back in less than four years. The contract calls for future aid-in-construction fundings if expansions of the system are necessary at the sole discretion of the Company.

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 nine months ended September 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 $259,000 and zero during the nine months ended September 30, 2021 and 2020, respectively. As of September 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.

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 generally not recorded as lease right-of-use assets and liabilities. See Note 10 for additional information.

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

Accounts payable, accrued liabilities, derivative liabilities and accrued dividends and dividend equivalents. Accounts payable, accrued liabilities, derivative liabilities and accrued dividends and dividend equivalents included in current liabilities as of September 30, 2021 and December 31, 2020 totaled approximately $77.0 million and $22.4 million, respectively, including trade accounts payable, derivative liabilities, accrued dividends and dividend equivalents, 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 crude 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 crude 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 crude 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 crude oil and natural gas marketing contracts is typically received from the purchaser one to two months after production. As of September 30, 2021 and December 31, 2020, the Company had receivables related to contracts with purchasers of approximately $19.6 million and $4.2 million, respectively.

Crude Oil Contracts. The Company’s crude oil marketing contracts transfer physical custody and title at or near the wellhead, which is generally when control of the crude oil has been transferred to the purchaser. The crude oil produced is sold under contracts using market-based pricing which is then adjusted for the differentials based upon delivery location and crude oil quality. Since the differentials are incurred after the transfer of control of the crude oil, the differentials are included in crude 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, 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 or 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 September 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 outside 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.

Segment Reporting, Policy [Policy Text Block]

Segments. Based on the Company’s organizational structure, the Company has one operating segment, which is crude 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 ("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 crude oil throughout the world and when combined with pressures on the global supply-demand balance for crude oil and related products, resulted in significant volatility in crude 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 crude oil demand.

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 September 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 (Tables)

9 Months Ended

Sep. 30, 2021

Notes Tables

Property, Plant and Equipment [Table Text Block]

	September 30, 2021		December 31, 2020
Land	$	1,122	$	725
Information technology		167		292
Transportation equipment		86		41
Leasehold improvements		13		24
Field equipment		9		10
Total other property and equipment, net	$	1,397	$	1,092

Note 4 - Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2021

Notes Tables

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

	As of September 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 – current	$	—	$	14,134	$	—	$	14,134
Commodity price derivatives – noncurrent		—		5,268		—		5,268
Commodity price derivatives	$	—	$	19,402	$	—	$	19,402

Note 5 - Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2021

Notes Tables

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

				Three Months Ended September 30, 2020							Nine Months Ended September 30, 2020
	Three Months Ended September 30, 2021			August 22, 2020 through September 30, 2020		July 1, 2020 through August 21, 2020		Nine Months Ended September 30, 2021			August 22, 2020 through September 30, 2020		January 1, 2020 through August 21, 2020
	Successor			Successor		Predecessor		Successor			Successor		Predecessor
Noncash derivative gain (loss), net	$	(6,844	)	$	—	$	—	$	(19,402	)	$	—	$	—
Cash payments on settled derivatives, net		(3,976	)		—		—		(5,014	)		—		—
Derivative gain (loss), net	$	(10,820	)	$	—	$	—	$	(24,416	)	$	—	$	—

Schedule of Price Risk Derivatives [Table Text Block]

	2021		2022										2023
	Fourth Quarter		First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Total		First Quarter		Second Quarter		Total
Crude Oil Price Swaps - WTI: (a)
Volume (MBbls)		460.0		450.0		302.5		66.0		202.4		1,020.9		198.0		200.2		398.2
Price per Bbl	$	61.91	$	61.91	$	62.16	$	57.22	$	57.22	$	60.75	$	57.22	$	57.22	$	57.22

Note 6 - Exploratory Well Costs (Tables)

9 Months Ended

Sep. 30, 2021

Notes Tables

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

	Nine Months Ended September 30, 2021
Beginning capitalized exploratory well costs	$	32,592
Additions to exploratory well costs		127,444
Reclassification to proved properties		(155,528	)
Exploratory well costs charged to exploration and abandonment expense		—
Ending capitalized exploratory well costs	$	4,508

Note 7 - Long-term Debt (Tables)

9 Months Ended

Sep. 30, 2021

Notes Tables

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

	September 30,			December 31,
	2021			2020
Revolving Credit Facility due 2024	$	95,000		$	—
Debt issuance costs, net (a)		(1,898	)		—
Total debt		93,102			—
Less current portion of long-term debt		—			—
Long-term debt, net	$	93,102		$	—

- 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.

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+ Details

Note 8 - Asset Retirement Obligations (Tables)

9 Months Ended

Sep. 30, 2021

Notes Tables

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

	Nine Months Ended September 30, 2021
Beginning asset retirement obligations	$	2,293
Liabilities incurred from new wells		877
Liabilities assumed in acquisitions		980
Liabilities divested		(6	)
Revision of estimates (a)		(10	)
Accretion of discount		116
Ending asset retirement obligations	$	4,250

Note 9 - Incentive Plans (Tables)

9 Months Ended

Sep. 30, 2021

Notes Tables

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

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

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
Forfeitures		(10,000	)	$	10.00
Outstanding at September 30, 2021		9,541,227		$	10.00		8.9	$	—

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 September 30, 2021		8,293,903		$	10.00		8.9	$	—
Exercisable at September 30, 2021		8,293,903		$	10.00		8.9	$	—

Note 10 - Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2021

Notes Tables

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

	September 30, 2021
Remainder of 2021	$	562
2022		466
Total lease payments		1,028
Less present value discount		(38	)
Present value of lease liabilities	$	990

Note 13 - Income Taxes (Tables)

9 Months Ended

Sep. 30, 2021

Notes Tables

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

	Nine Months Ended September 30, 2021
Current tax expense	$	—
Deferred tax expense		4,680
Income tax expense	$	4,680

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

	Nine Months Ended September 30, 2021
Income tax expense at U.S. federal statutory rate	$	4,875
Limited tax benefit due to stock-based compensation		(61	)
Other		(134	)
Income tax expense	$	4,680
Effective income tax rate	20.2		%

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

	September 30, 2021			December 31, 2020
Deferred tax assets:
Unrecognized derivative losses	$	4,074		$	—
Stock-based compensation		3,589			3,124
Net operating loss carryforwards		51			9,725
Other		79			31
Less: Valuation allowance		—			—
Net deferred tax assets		7,793			12,880
Deferred tax liabilities:
Crude oil and natural gas properties, principally due to differences in basis and depreciation and the deduction of intangible drilling costs for tax purposes		(51,371	)		(51,778	)
Net deferred tax liabilities	$	(43,578	)	$	(38,898	)

Note 14 - Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2021

Notes Tables

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

	Three			Nine
	Months Ended			Months Ended
	September 30,			September 30,
	2021			2021
Net income as reported	$	8,047		$	18,534
Participating basic earnings (a)		(1,193	)		(1,669	)
Basic earnings attributable to common stockholders		6,854			16,865
Reallocation of participating earnings		392			1
Diluted net income attributable to common stockholders	$	7,246		$	16,866

Basic weighted average shares outstanding		92,676			92,648
Dilutive warrants and unvested stock options		2			67
Diluted weighted average shares outstanding		92,678			92,715

Note 17 - Subsequent Events (Tables)

9 Months Ended

Sep. 30, 2021

Notes Tables

Schedule of Derivative Instruments [Table Text Block]

	2021		2022										2023
	Fourth Quarter		First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Total		First Quarter		Second Quarter		Total
Crude Oil Price Swaps - WTI: (a)
Volume (MBbls)		540.6		684.0		441.5		146.0		239.0		1,510.5		198.0		200.2		398.2
Price per Bbl	$	64.35	$	67.52	$	66.59	$	65.88	$	59.37	$	65.80	$	57.22	$	57.22	$	57.22

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

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+ Details

Note 2 - Basis of Presentation and Summary of Significant Accounting Policies (Details Textual)	1 Months Ended		2 Months Ended	3 Months Ended	6 Months Ended	8 Months Ended	9 Months Ended		12 Months Ended	20 Months Ended
	Dec. 31, 2020 USD ($) shares	Sep. 30, 2020 USD ($)	Aug. 21, 2020 USD ($)	Sep. 30, 2021 USD ($)	Jun. 30, 2021 USD ($)	Aug. 21, 2020 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	Dec. 31, 2020 USD ($)	Aug. 21, 2020 USD ($)
Accounts Receivable, after Allowance for Credit Loss, Current, Total	$ 7,722,000			$ 23,891,000			$ 23,891,000		$ 7,722,000
Income Taxes Receivable	3,200,000			3,200,000			3,200,000		3,200,000
Oil and Gas Joint Interest Billing Receivables	345,000			1,100,000			1,100,000		345,000
Accounts Receivable, Allowance for Credit Loss, Current	$ 0			0			0		0
Class of Warrant or Right, Exercised During Period (in shares) \| shares	312,711
Proceeds from Warrant Exercises	$ 3,600,000	$ 0				$ 0	5,466,000
Subscription Receivable, Current	3,596,000			0			0		3,596,000
Inventory, Raw Materials and Supplies, Gross, Total	121,000			3,900,000			3,900,000		121,000
Inventory, LIFO Reserve	0			0			0		0
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment, Ending Balance	237,000			385,000			385,000		237,000
Debt Issuance Costs, Gross				2,200,000			2,200,000
Payments of Debt Issuance Costs		(0)				(0)	1,757,000
Amortization of Debt Issuance Costs		0				0	259,000
Accounts Payable and Accrued Liabilities, Current, Total	22,400,000			77,000,000.0			77,000,000.0		$ 22,400,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total				0			0
Income Tax Expense (Benefit), Total		$ (2,309,000)	$ 0	2,145,000		$ 0	$ 4,680,000			$ 0
Number of Operating Segments							1
Domestic Tax Authority [Member] \| Internal Revenue Service (IRS) [Member]
Open Tax Year							2017 2018 2019 2020		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]
Debt Issuance Costs, Gross					$ 2,200,000
Payments of Debt Issuance Costs					$ 1,800,000
Amortization of Debt Issuance Costs							$ 259,000	$ 0
WTG Gas Processing, L.P. [Member] \| Aid-in-construction Receivables [Member]
Accounts Receivable, after Allowance for Credit Loss, Total				3,900,000			$ 3,900,000
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
Crude Oil, Natural Gas and Natural Gas Liquids [Member]
Accounts Receivable, after Allowance for Credit Loss, Current, Total	$ 4,200,000			$ 19,600,000			$ 19,600,000		$ 4,200,000

Note 2 - Basis of Presentation and Summary of Significant Accounting Policies - Other Property and Equipment, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Other property and equipment, net	$ 1,397	$ 1,092
Land [Member]
Other property and equipment, net	1,122	725
Technology Equipment [Member]
Other property and equipment, net	167	292
Transportation Equipment [Member]
Other property and equipment, net	86	41
Leasehold Improvements [Member]
Other property and equipment, net	13	24
Field Equipment [Member]
Other property and equipment, net	$ 9	$ 10

Note 3 - Acquisitions and Divestitures (Details Textual) $ in Thousands			1 Months Ended	8 Months Ended	9 Months Ended
	Sep. 30, 2021 USD ($) a	Jun. 01, 2019 USD ($)	Sep. 30, 2020 USD ($)	Aug. 21, 2020 USD ($)	Sep. 30, 2021 USD ($) a	Sep. 30, 2020 USD ($)	Dec. 31, 2020 USD ($)	Oct. 31, 2019 USD ($)
Payments to Acquire Oil and Gas Property and Equipment, Total					$ 53,300	$ 4,000
Acquisition, Area of Working Interests in Producing Properties and Salt-water Disposal Wells (Acre) \| a	10,600				10,600
Number of Horizontal Producing Properties Acquired, Gross					10
Number of Horizontal Producing Properties Acquired, Net					3.3
Number of Vertical Producing Properties Acquired, Gross					101	3
Number of Vertical Producing Wells Acquired, Net					18.6
Number of Salt Water Disposal Wells Acquired, Gross					2	2
Number of Salt Water Disposal Wells Acquired, Net					0.2
Number of Horizontal Producing Properties Being Drilled, Gross	3				3
Number of Horizontal Producing Properties Being Drilled, Net	1.5				1.5
Proceeds from Sale of Oil and Gas Property and Equipment			$ 0	$ 0	$ 3,234
Gain (Loss) on Disposition of Oil and Gas and Timber Property, Total	$ 0
Oil and Gas, Non-operated Horizontal Well Divested, Gross, Number					1
Oil and Gas, Horizontal Well Divested, Net Productive, Number					0.2
Oil and Gas, Operated Vertical Wells, Gross, Number					4
Oil and Gas, Operated Vertical Wells, Net Productive, Number					3.7
HighPeak Energy Assets II, LLC [Member] \| Grenadier Acquisition [Member]
Payments to Acquire Businesses, Gross		$ 615,000
Business Combination, Escrow Deposit								$ 61,500
Business Combination, Escrow Deposit Not Credited Toward Purchase Price							$ 15,000
HPK, LP [Member] \| Grenadier Acquisition [Member]
Business Combination Terminated, Charge to Expense						$ 76,500

Note 4 - Fair Value Measurements (Details Textual) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 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) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Derivatives	$ 14,134	$ 0
Commodity price derivatives – noncurrent	5,268	$ 0
Fair Value, Recurring [Member] \| Commodity Contract [Member]
Derivatives	14,134
Commodity price derivatives – noncurrent	5,268
Commodity price derivatives	19,402
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member] \| Commodity Contract [Member]
Derivatives	0
Commodity price derivatives – noncurrent	0
Commodity price derivatives	0
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member] \| Commodity Contract [Member]
Derivatives	14,134
Commodity price derivatives – noncurrent	5,268
Commodity price derivatives	19,402
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 3 [Member] \| Commodity Contract [Member]
Derivatives	0
Commodity price derivatives – noncurrent	0
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	1 Months Ended	2 Months Ended	3 Months Ended	8 Months Ended	9 Months Ended
	Sep. 30, 2020	Aug. 21, 2020	Sep. 30, 2021	Aug. 21, 2020	Sep. 30, 2021
Noncash derivative gain (loss), net	$ (0)	$ 0	$ (6,844)	$ (0)	$ (19,402)
Cash payments on settled derivatives, net	0	0	(3,976)	0	(5,014)
Derivative gain (loss), net	$ 0	$ 0	$ (10,820)	$ 0	$ (24,416)

Note 5 - Derivative Financial Instruments - Commodity Derivative Contracts (Details) - Not Designated as Hedging Instrument [Member]	9 Months Ended
	Sep. 30, 2021 $ / bbl bbl
Crude Oil Derivative Swap Q4 2021 [Member]
Volume (MBbls) (Barrel of Oil) \| bbl	460.0
Price per Bbl (in USD per Barrel of Oil) \| $ / bbl	61.91
Crude Oil Derivative Swap Q1 2022 [Member]
Volume (MBbls) (Barrel of Oil) \| bbl	450.0
Price per Bbl (in USD per Barrel of Oil) \| $ / bbl	61.91
Crude Oil Derivative Swap Q2 2022 [Member]
Volume (MBbls) (Barrel of Oil) \| bbl	302.5
Price per Bbl (in USD per Barrel of Oil) \| $ / bbl	62.16
Crude Oil Derivative Swap Q3 2022 [Member]
Volume (MBbls) (Barrel of Oil) \| bbl	66.0
Price per Bbl (in USD per Barrel of Oil) \| $ / bbl	57.22
Crude Oil Derivative Swap Q4 2022 [Member]
Volume (MBbls) (Barrel of Oil) \| bbl	202.4
Price per Bbl (in USD per Barrel of Oil) \| $ / bbl	57.22
Crude Oil Derivative Swap 2022 [Member]
Volume (MBbls) (Barrel of Oil) \| bbl	1,020.9
Price per Bbl (in USD per Barrel of Oil) \| $ / bbl	60.75
Crude Oil Derivative Swap Q1 2023 [Member]
Volume (MBbls) (Barrel of Oil) \| bbl	198.0
Price per Bbl (in USD per Barrel of Oil) \| $ / bbl	57.22
Crude Oil Derivative Swap Q2 2023 [Member]
Volume (MBbls) (Barrel of Oil) \| bbl	200.2
Price per Bbl (in USD per Barrel of Oil) \| $ / bbl	57.22
Crude Oil Derivative Swap 2023 [Member]
Volume (MBbls) (Barrel of Oil) \| bbl	398.2
Price per Bbl (in USD per Barrel of Oil) \| $ / bbl	57.22

Note 6 - Exploratory Well Costs (Details Textual)	9 Months Ended
Note 6 - Exploratory Well Costs (Details Textual)	Sep. 30, 2021
Capitalized Exploratory Well Costs, Maximum Term (Year)	1 year

Note 6 - Exploratory Well Costs - Exploratory Well Costs (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2021 USD ($)
Beginning capitalized exploratory well costs	$ 32,592
Additions to exploratory well costs	127,444
Reclassification to proved properties	(155,528)
Exploratory well costs charged to exploration and abandonment expense	0
Ending capitalized exploratory well costs	$ 4,508

Note 7 - Long-term Debt (Details Textual) - USD ($)		1 Months Ended	9 Months Ended	12 Months Ended
Note 7 - Long-term Debt (Details Textual) - USD ($)	Oct. 01, 2021	Dec. 31, 2020	Sep. 30, 2021	Dec. 31, 2020	Jun. 30, 2021
Debt Issuance Costs, Gross			$ 2,200,000
Accumulated Amortization, Debt Issuance Costs			263,000
Long-term Debt, Total		$ 0	93,102,000	$ 0
Revolving Credit Facility [Member]
Debt Issuance Costs, Gross					$ 2,200,000
Long-term Debt, Gross		0	95,000,000	0
Revolving Credit Facility [Member] \| Fifth Third Bank, National Association [Member]
Line of Credit Facility, Maximum Borrowing Capacity		40,000,000.0		40,000,000.0	125,000,000.0
Line of Credit Facility, Commitment Fee Amount	$ 195,000,000.0	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	$ 125,000,000.0
Debt Instrument, Face Amount			500,000,000.0
Long-term Debt, Gross		0	$ 95,000,000.0	$ 0
Debt Instrument, Interest Rate, Effective Percentage			4.00%
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage			0.50%
Debt Instrument, Covenant, Minimum Cash Threshold for Prepayment to be Due			$ 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
Revolving Credit Facility [Member] \| Fifth Third Bank, National Association [Member] \| Minimum [Member]
Debt Instrument, Covenant, Minimum Current Ratio			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] \| Subsequent Event [Member]
Line of Credit Facility, Maximum Borrowing Capacity	195,000,000.0
Line of Credit Facility, Current Borrowing Capacity	$ 195,000,000.0
Debt Instrument, Interest Rate, Effective Percentage	3.50%
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%
Other Noncurrent Assets [Member]
Debt Issuance Costs, Gross		401,000		$ 401,000
Accumulated Amortization, Debt Issuance Costs		$ 4,000		$ 4,000

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

Sep. 30, 2021

Dec. 31, 2020

Debt issuance costs, net (a)

^[1]

$ (1,898)

$ 0

Long term debt

93,102

Less current portion of long-term debt

Long-term debt, net

93,102

Revolving Credit Facility [Member]

Revolving Credit Facility due 2024

$ 95,000

$ 0

[1]

Debt issuance costs as of September 30, 2021 consisted of $2.2 million in costs less accumulated amortization of $263,000. 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

1 Months Ended

2 Months Ended

3 Months Ended

8 Months Ended

9 Months Ended

Sep. 30, 2020

Aug. 21, 2020

Sep. 30, 2021

Aug. 21, 2020

Sep. 30, 2021

Beginning asset retirement obligations

$ 2,293

Liabilities incurred from new wells

877

Liabilities assumed in acquisitions

980

Liabilities divested

(6)

Revision of estimates (a)

^[1]

(10)

Accretion of discount

$ 15

$ 20

$ 44

$ 89

116

Ending asset retirement obligations

$ 4,250

[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 and their expected useful lives.

Note 9 - Incentive Plans (Details Textual) - USD ($)			1 Months Ended		2 Months Ended	3 Months Ended	8 Months Ended	9 Months Ended
Note 9 - Incentive Plans (Details Textual) - USD ($)	Sep. 30, 2021	Jun. 01, 2021	Nov. 30, 2020	Sep. 30, 2020	Aug. 21, 2020	Sep. 30, 2021	Aug. 21, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Share-based Payment Arrangement, Expense				$ 14,508,000	$ 0	$ 905,000	$ 0	$ 2,894,000
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								2,700,000	$ 14,500,000
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount	$ 1,200,000					1,200,000		1,200,000		$ 3,800,000
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)	1 year
Restricted Stock [Member] \| Outside Directors [Member]
Share-based Payment Arrangement, Expense								228,000
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
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount	$ 455,000					$ 455,000		$ 455,000
The 401K Plan [Member]
Defined Contribution Plan, Period of Employment for Eligibility (Month)								3 months
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent								80.00%
Defined Contribution Plan, Employer Matching Contribution, Percent of Match								100.00%
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay								4.00%
Defined Contribution Plan, Employer Discretionary Contribution Amount								$ 167,000	$ 0

Note 9 - Incentive Plans - Number of Shares Available for Grant Pursuant to Long-term Incentive Plan (Details) - shares	Sep. 30, 2021	Dec. 31, 2020	Aug. 21, 2020
Awards issued under plan (in shares)	(9,541,227)	(9,705,495)	0
The 2020 Long-term Incentive Plan [Member]
Approved and authorized awards (in shares)	12,047,866
Awards issued under plan (in shares)	(9,681,506)
Awards available for future grant (in shares)	2,366,360

Note 9 - Incentive Plans - Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	4 Months Ended	6 Months Ended	9 Months Ended
	Dec. 31, 2020	Jun. 30, 2021	Sep. 30, 2021
Outstanding balance (in shares)	0	9,705,495	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		8 years 10 months 24 days
Outstanding, intrinsic value	$ 57,942
Exercised (in shares)			(154,268)
Exercised, weighted average exercise price (in dollars per share)			$ 10.00
Forfeitures (in shares)			(10,000)
Forfeitures, weighted average exercise price (in dollars per share)			$ 10.00
Outstanding balance (in shares)	9,705,495		9,541,227
Outstanding, weighted average exercise price (in dollars per share)	$ 10.00		$ 10.00
Vested (in shares)	7,204,163		8,293,903
Vested, weighted average exercise price (in dollars per share)	$ 10.00		$ 10.00
Vested, remaining term (Year)	9 years 8 months 12 days	8 years 10 months 24 days
Vested, intrinsic value	$ 43,009
Exercisable (in shares)	7,204,163		8,293,903
Exercisable, weighted average exercise price (in dollars per share)	$ 10.00		$ 10.00
Exercisable, remaining term (Year)	9 years 8 months 12 days	8 years 10 months 24 days
Exercisable, intrinsic value	$ 43,009

Note 10 - Commitments and Contingencies (Details Textual)	1 Months Ended	9 Months Ended
	May 31, 2021 bbl	Sep. 30, 2021 USD ($) bbl	Jun. 30, 2021 USD ($) a	Dec. 31, 2020 USD ($)	Jan. 01, 2020 USD ($)
Retained Earnings (Accumulated Deficit), Ending Balance		$ (101,461,000)		$ (107,209,000)
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
Number of Barrels, Delivered (Barrel of Oil) \| bbl		2,200,000
Supply Commitment, Remaining Minimum Amount Committed		$ 367,000
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		987,000		506,000
Operating Lease, Liability, Total		990,000		456,000
Operating Lease, Liability, Noncurrent				534,000
Other Liabilities [Member]
Operating Lease, Liability, Total		$ 990,000		508,000
Other Current Liabilities [Member]
Operating Lease, Liability, Noncurrent				430,000
Other Noncurrent Liabilities [Member]
Operating Lease, Liability, Noncurrent				$ 78,000

Note 10 - Commitments and Contingencies - Operating Lease Obligations (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Remainder of 2021	$ 562,000
2022	466,000
Total lease payments	1,028,000
Less present value discount	(38,000)
Other Liabilities [Member]
Operating Lease, Liability, Total	$ 990,000	$ 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	9 Months Ended
	Sep. 30, 2020 USD ($)
Related Party Transaction, Amounts of Transaction	$ 2.4
General and Administrative Expense [Member]
Related Party Transaction, Amounts of Transaction	$ 4.7

Note 12 - Major Customers (Details Textual) - Customer Concentration Risk [Member] - Revenue Benchmark [Member]	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Lion Oil Trading and Transportation, LLC [Member]
Concentration Risk, Percentage	94.00%	67.00%
Enlink Crude Purchasing, LLC [Member]
Concentration Risk, Percentage		28.00%

Note 13 - Income Taxes (Details Textual) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%
Deferred Tax Assets, Valuation Allowance, Total	$ 0	$ 0
Deferred Tax Assets, Net of Valuation Allowance, Total	$ 7,793	$ 12,880
Domestic Tax Authority [Member] \| Internal Revenue Service (IRS) [Member]
Open Tax Year	2017 2018 2019 2020	2017 2018 2019

Note 13 - Income Taxes - Income Tax Benefit and Effective Tax Rate (Details) - USD ($) $ in Thousands	1 Months Ended	2 Months Ended	3 Months Ended	8 Months Ended	9 Months Ended	20 Months Ended
	Sep. 30, 2020	Aug. 21, 2020	Sep. 30, 2021	Aug. 21, 2020	Sep. 30, 2021	Aug. 21, 2020
Current tax expense					$ 0
Deferred tax expense					4,680
Income tax expense	$ (2,309)	$ 0	$ 2,145	$ 0	$ 4,680	$ 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	1 Months Ended	2 Months Ended	3 Months Ended	8 Months Ended	9 Months Ended	20 Months Ended
	Sep. 30, 2020	Aug. 21, 2020	Sep. 30, 2021	Aug. 21, 2020	Sep. 30, 2021	Aug. 21, 2020
Income tax expense at U.S. federal statutory rate					$ 4,875
Limited tax benefit due to stock-based compensation					(61)
Other					(134)
Income tax expense	$ (2,309)	$ 0	$ 2,145	$ 0	$ 4,680	$ 0
Effective income tax rate					20.20%

- 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	Sep. 30, 2021	Dec. 31, 2020
Unrecognized derivative losses	$ 4,074	$ 0
Stock-based compensation	3,589	3,124
Net operating loss carryforwards	51	9,725
Other	79	31
Less: Valuation allowance	0	0
Net deferred tax assets	7,793	12,880
Crude oil and natural gas properties, principally due to differences in basis and depreciation and the deduction of intangible drilling costs for tax purposes	(51,371)	(51,778)
Net deferred tax liabilities	$ (43,578)	$ (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

1 Months Ended

2 Months Ended

3 Months Ended

8 Months Ended

9 Months Ended

Sep. 30, 2020

Aug. 21, 2020

Sep. 30, 2021

Jun. 30, 2021

Mar. 31, 2021

Sep. 30, 2020

Jun. 30, 2020

Mar. 31, 2020

Aug. 21, 2020

Sep. 30, 2021

Net income (loss)

$ (11,516)

$ (56)

$ 8,047

$ 5,743

$ 4,744

$ (56)

$ (4,147)

$ (80,831)

$ (85,034)

$ 18,534

Participating basic earnings (a)

^[1]

(1,193)

(1,669)

Basic earnings attributable to common stockholders

6,854

16,865

Reallocation of participating earnings

392

Diluted net income attributable to common stockholders

$ 7,246

$ 16,866

Basic weighted average shares outstanding (in shares)

91,592

92,676

92,648

Dilutive warrants and unvested stock options (in shares)

Diluted weighted average shares outstanding (in shares)

91,592

92,678

92,715

[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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22595-107794

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=125511455&loc=d3e1448-109256

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=125511455&loc=d3e1377-109256

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=124432515&loc=d3e3550-109257

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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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) - USD ($)							1 Months Ended			3 Months Ended	8 Months Ended	9 Months Ended
	Aug. 31, 2022	Aug. 01, 2022	Oct. 25, 2021	Oct. 01, 2021	Jul. 26, 2021	Jul. 01, 2021	Oct. 30, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Aug. 21, 2020	Sep. 30, 2021	Dec. 31, 2020
Common Stock, Dividends, Per Share, Declared (in dollars per share)										$ 0.125		$ 0.125
Payments of Dividends, Total					$ 9,300,000				$ (0)		$ (0)	$ 9,274,000
Dividends, Total												829,000
Dividends Payable, Current								$ 2,683,000		$ 2,683,000		$ 2,683,000	$ 0
Common Stock, Shares, Outstanding, Ending Balance (in shares)								92,743,677		92,743,677		92,743,677	91,967,565
Class of Warrant or Right, Outstanding (in shares)								9,500,174		9,500,174		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		$ 11.50	$ 11.50
Common Stock, Capital Shares Reserved for Future Issuance (in shares)								21,694,763		21,694,763		21,694,763
Contingent Value Right [Member]
Class of Warrant or Right, Outstanding (in shares)								10,209,300		10,209,300		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		2.125	2.125
Subsequent Event [Member]
Payments of Dividends, Total			$ 2,300,000
Dividends, Total				$ 207,000			$ 207,000
Dividends Payable, Current			$ 2,300,000
Subsequent Event [Member] \| Forecast [Member]
Dividends, Total	$ 31,000	$ 125,000
Quarterly Dividend [Member]
Common Stock, Dividends, Per Share, Declared (in dollars per share)						$ 0.025		$ 0.025
Quarterly Dividend [Member] \| Subsequent Event [Member]
Common Stock, Dividends, Per Share, Declared (in dollars per share)				$ 0.025
Special Dividend [Member]
Common Stock, Dividends, Per Share, Declared (in dollars per share)						$ 0.075

Note 16 - Partners' Capital (Predecessor) (Details Textual) - HPK, LP [Member] $ in Millions	8 Months Ended
	Aug. 21, 2020 USD ($)
Net Income (Loss) Allocated to Limited Partners	$ 85.0
Limited Partners' Capital Account, Distribution Amount	$ 2.8

Note 17 - Subsequent Events (Details Textual) - USD ($)							1 Months Ended			3 Months Ended	8 Months Ended	9 Months Ended
Note 17 - Subsequent Events (Details Textual) - USD ($)	Aug. 31, 2022	Aug. 01, 2022	Oct. 25, 2021	Oct. 01, 2021	Jul. 26, 2021	Jul. 01, 2021	Oct. 30, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Aug. 21, 2020	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Common Stock, Dividends, Per Share, Declared (in dollars per share)										$ 0.125		$ 0.125
Payments of Dividends, Total					$ 9,300,000				$ (0)		$ (0)	$ 9,274,000
Dividends, Total												829,000
Proceeds from Issuance of Common Stock									$ 92,554,000		$ 0	0
Revolving Credit Facility [Member] \| Fifth Third Bank, National Association [Member]
Line of Credit Facility, Maximum Borrowing Capacity													$ 125,000,000.0	$ 40,000,000.0
Line of Credit Facility, Current Borrowing Capacity								$ 125,000,000.0		$ 125,000,000.0		$ 125,000,000.0	$ 125,000,000.0	$ 20,000,000.0
Subsequent Event [Member]
Payments of Dividends, Total			$ 2,300,000
Dividends, Total				$ 207,000			$ 207,000
Stock Issued During Period, Shares, New Issues (in shares)			2,530,000
Shares Issued, Price Per Share (in dollars per share)			$ 10.00
Proceeds from Issuance of Common Stock			$ 23,000,000.0
Subsequent Event [Member] \| Revolving Credit Facility [Member] \| Fifth Third Bank, National Association [Member]
Line of Credit Facility, Maximum Borrowing Capacity				195,000,000.0
Line of Credit Facility, Current Borrowing Capacity				$ 195,000,000.0
Subsequent Event [Member] \| Forecast [Member]
Dividends, Total	$ 31,000	$ 125,000
Quarterly Dividend [Member]
Common Stock, Dividends, Per Share, Declared (in dollars per share)						$ 0.025		$ 0.025
Quarterly Dividend [Member] \| Subsequent Event [Member]
Common Stock, Dividends, Per Share, Declared (in dollars per share)				$ 0.025

Note 17 - Subsequent Events - Commodity Derivative Contracts (Details) - Designated as Hedging Instrument [Member] - Subsequent Event [Member]	Oct. 01, 2021 $ / item
Crude Oil Derivative Swap Q4 2021 [Member]
Volume (MBbls)	540.6
Price per Bbl (in USD per Barrel of Oil)	64.35
Crude Oil Derivative Swap Q1 2022 [Member]
Volume (MBbls)	684.0
Price per Bbl (in USD per Barrel of Oil)	67.52
Crude Oil Derivative Swap Q2 2022 [Member]
Volume (MBbls)	441.5
Price per Bbl (in USD per Barrel of Oil)	66.59
Crude Oil Derivative Swap Q3 2022 [Member]
Volume (MBbls)	146.0
Price per Bbl (in USD per Barrel of Oil)	65.88
Crude Oil Derivative Swap Q4 2022 [Member]
Volume (MBbls)	239.0
Price per Bbl (in USD per Barrel of Oil)	59.37
Crude Oil Derivative Swap 2022 [Member]
Volume (MBbls)	1,510.5
Price per Bbl (in USD per Barrel of Oil)	65.80
Crude Oil Derivative Swap Q1 2023 [Member]
Volume (MBbls)	198.0
Price per Bbl (in USD per Barrel of Oil)	57.22
Crude Oil Derivative Swap Q2 2023 [Member]
Volume (MBbls)	200.2
Price per Bbl (in USD per Barrel of Oil)	57.22
Crude Oil Derivative Swap 2023 [Member]
Volume (MBbls)	398.2
Price per Bbl (in USD per Barrel of Oil)	57.22