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听HighPeak Energy, Inc. Announces Second Quarter 2025 Financial and Operating Results

FORT WORTH, Texas, Aug. 11, 2025 (GLOBE NEWSWIRE) -- HighPeak Energy, Inc. (鈥淗ighPeak鈥� or the 鈥淐ompany鈥�) (NASDAQ: HPK) today announced financial and operating results for the quarter ended June 30, 2025.

Second Quarter 2025 Highlights

• Sales volumes averaged approximately 48.6 thousand barrels of crude oil equivalent per day (鈥淢Boe/d鈥�), remaining essentially flat from the same period a year ago after dropping down to one drilling rig in May 2025.
• Net income was $26.2 million, or $0.19 per diluted share and EBITDAX (a non-GAAP financial measure defined and reconciled below) was $156.0 million, or $1.12 per diluted share.听
• Lease operating expenses averaged $6.55 per Boe, excluding workover expenses, representing a 1% decrease compared with the first quarter of 2025.听听

Recent Events

• On August 4, 2025, the Company announced material amendments to the Term Loan Credit Agreement (鈥淭erm Loan鈥�) and Senior Credit Facility Agreement (鈥淪uper Priority RCF鈥�) including:
  • Extended the maturity dates of both agreements to September 2028.
  • Upsized the borrowings under the Term Loan to $1.2 billion, providing additional liquidity to the Company.
  • Amended certain covenants of the Term Loan including deferring mandatory amortization payments of $30 million per quarter until September 30, 2026.
• Additional key benefits to the amended and extended Term Loan include:
  • The call protection provision remains unchanged, expiring in September 2025, providing the Company with significant flexibility to pay down the Term Loan at par, in whole or in part, at any time.
  • The floating interest rate structure allows the Company to benefit from anticipated lower interest rates over the remaining term of the Term Loan.
• On August 11, 2025, the Company鈥檚 Board of Directors declared a quarterly dividend of $0.04 per common share outstanding payable in September 2025.

Statement from Jack Hightower, Chairman and CEO:

We are deeply grateful for the unwavering support of our investors, whose confidence in our vision has enabled us to execute the strategic initiative of amending and extending our current Term Loan and RCF. This amendment and extension, coupled with our proactive hedging strategy, positions HighPeak to capitalize on future opportunities while maintaining a strong and adaptable financial foundation.

With consensus projections of lower interest rates over the next few years, our term loan provides the Company with substantial flexibility and optionality going forward rather than issuing a high-yield, fixed-rate public bond. The amendment and extension of the term loan significantly increases our capital structure flexibility, increases liquidity, minimizes refinancing costs and provides the ability to pay down the term loan at par. We have also hedged a significant amount of our production for the next 18 months, thus minimizing HighPeak鈥檚 exposure to downside risk if commodity prices decline as we move forward.

Second Quarter 2025 Operational Update

HighPeak鈥檚 sales volumes during the second quarter of 2025 averaged 48.6 MBoe/d. Second quarter sales volumes consisted of approximately 70% crude oil and 85% liquids.

The Company averaged one drilling rig and one frac crew during the second quarter, drilled 13 gross (13.0 net) horizontal wells and turned-in-line 14 gross (14.0 net) producing wells and placed 2 gross (2.0 net) salt-water disposal wells in operation. On June 30, 2025, the Company had 20 gross (20.0 net) horizontal wells in various stages of drilling and completion.

HighPeak President, Michael Hollis, commented, 鈥淎ccording to plan, our capital expenditures were heavily weighted toward the first part of the year, tapering off during the second quarter. Now with several efficiency-based projects complete and our maintenance drilling program in effect, we will continue to operate with capital discipline to preserve financial flexibility in this dynamic economic environment.鈥�

Second Quarter 2025 Financial Results

HighPeak reported net income of $26.2 million for the second quarter of 2025, or $0.19 per diluted share, and听EBITDAX of $156.0 million, or $1.12 per diluted share.听

Second quarter average realized prices were $63.74 per Bbl of crude oil, $20.34 per Bbl of NGL and $1.50 per Mcf of natural gas, resulting in an overall realized price of $45.27 per Boe, or 71% of the weighted average of NYMEX crude oil prices, excluding the effects of derivatives.听Including the effects of derivatives, second quarter average realized prices were $65.27 per Bbl of crude oil, $20.34 per Bbl of NGL and $2.18 per Mcf of natural gas, resulting in an overall realized price of $46.94 per Boe. HighPeak鈥檚 cash costs for the second quarter were $11.69 per Boe, including lease operating expenses of $6.55 per Boe, workover expenses of $1.06 per Boe, production and ad valorem taxes of $2.80 per Boe and G&A expenses of $1.28 per Boe. As a result, the Company鈥檚 unhedged EBITDAX per Boe was $33.58 per Boe, or 74% of the overall realized price per Boe for the quarter.

HighPeak鈥檚 total capital expenditures, excluding acquisitions, for the second quarter of 2025 were $125.4 million, a decrease of over 30% compared with the first quarter of 2025.听

Hedging

Subsequent to quarter end, the Company entered into additional crude oil derivative contracts covering a significant portion of its forecasted production through March 2027.

Crude oil.听Including the derivative instruments entered into to date, HighPeak has the following outstanding crude oil derivative instruments and the weighted average crude oil prices and premiums payable per barrel (鈥淏bl鈥�):

The Company鈥檚 crude oil derivative contracts detailed above are based on reported settlement prices on the New York Mercantile Exchange for West Texas Intermediate (鈥淲TI Cushing鈥�) pricing.

Natural gas. The Company has the following outstanding natural gas derivative instruments and the weighted average natural gas prices payable per MMBtu.

The Company鈥檚 natural gas derivative contracts detailed above are based on reported settlement prices on the New York Mercantile Exchange for Henry Hub (鈥淗H鈥�) pricing.

Dividends

During the second quarter of 2025, HighPeak鈥檚 Board of Directors approved a quarterly dividend of $0.04 per share, or $5.0 million in dividends paid to stockholders during the quarter. In addition, in August 2025, the Company鈥檚 Board of Directors declared a quarterly dividend of $0.04 per share, or approximately $5.0 million in dividends, to be paid on September 25, 2025, to stockholders of record on September 2, 2025.

Warrants

The Company鈥檚 outstanding warrants (NASDAQ: HPKEW) which enable the warrant holders to purchase one share of common stock for $11.50 per share for each warrant are set to expire on August 21, 2025.听

Conference Call

HighPeak will host a conference call and webcast on Tuesday, August 12, 2025, at 10:00 a.m. Central Time for investors and analysts to discuss its results for the second quarter of 2025.听Conference call participants may register for the call .听Access to the live audio-only webcast and replay of the earnings release conference call may be found . A live broadcast of the earnings conference call will also be available on the HighPeak Energy website at 听under the 鈥淚nvestors鈥� section of the website. A replay will also be available on the website following the call.

When available, a copy of the Company鈥檚 earnings release, investor presentation and Quarterly Report on Form 10-Q may be found on its website at .

About HighPeak Energy, Inc.

HighPeak Energy, Inc. is a publicly traded independent crude oil and natural gas company, headquartered in Fort Worth, Texas, focused on the acquisition, development, exploration and exploitation of unconventional crude oil and natural gas reserves in the Midland Basin in West Texas. For more information, please visit our website at听.

Cautionary Note Regarding Forward-Looking Statements

The information in this press release contains forward-looking statements that involve risks and uncertainties. When used in this document, the words 鈥渂elieves,鈥� 鈥減lans,鈥� 鈥渆xpects,鈥� 鈥渁nticipates,鈥� 鈥渇orecasts,鈥� 鈥渋ntends,鈥� 鈥渃ontinue,鈥� 鈥渕ay,鈥� 鈥渨ill,鈥� 鈥渃ould,鈥� 鈥渟hould,鈥� 鈥渇uture,鈥� 鈥減otential,鈥� 鈥渆stimate鈥� or the negative of such terms and similar expressions as they relate to HighPeak Energy, Inc. (鈥淗ighPeak Energy鈥� or the 鈥淐ompany鈥�) are intended to identify forward-looking statements, which are generally not historical in nature. The forward-looking statements are based on the Company's current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates. Although the Company believes that the expectations and assumptions reflected in the forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond the Company's control. For example, the Company鈥檚 review of strategic alternatives may not result in a sale of the Company, a recommendation that a transaction occur or result in a completed transaction, and any transaction that occurs may not increase shareholder value, in each case as a result of such risks and uncertainties.

These risks and uncertainties include, among other things, the results of the strategic review being undertaken by the Company鈥檚 Board and the interest of prospective counterparties, the Company鈥檚 ability to realize the results contemplated by its 2025 guidance, volatility of commodity prices, political instability or armed conflicts in crude or natural gas producing regions such as the ongoing war between Russia and Ukraine or Israel and Hamas, product supply and demand, the impact of a widespread outbreak of an illness, such as the coronavirus disease pandemic, on global and U.S. economic activity, competition, OPEC+ policy decisions, potential new trade policies, such as tariffs, could adversely affect the Company鈥檚 operations, business and profitability, inflationary pressures on costs of oilfield goods, services and personnel, the ability to obtain environmental and other permits and the timing thereof, other government regulation or action, the ability to obtain approvals from third parties and negotiate agreements with third parties on mutually acceptable terms, litigation, the costs and results of drilling and operations, availability of equipment, services, resources and personnel required to perform the Company's drilling and operating activities, access to and availability of transportation, processing, fractionation, refining and storage facilities, HighPeak Energy's ability to replace reserves, implement its business plans or complete its development activities as scheduled, access to and cost of capital, the financial strength of counterparties to any credit facility and derivative contracts entered into by HighPeak Energy, if any, and purchasers of HighPeak Energy's oil, natural gas liquids and natural gas production, uncertainties about estimates of reserves, identification of drilling locations and the ability to add proved reserves in the future, the assumptions underlying forecasts, including forecasts of production, expenses, cash flow from sales of oil and gas and tax rates, quality of technical data, environmental and weather risks, including the possible impacts of climate change, cybersecurity risks and acts of war or terrorism. These and other risks are described in the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K and other filings with the SEC. The Company undertakes no duty to publicly update these statements except as required by law.

Reserve engineering is a process of estimating underground accumulations of hydrocarbons that cannot be measured in an exact way. The accuracy of any reserve estimate depends on the quality of available data, the interpretation of such data and price and cost assumptions made by reserve engineers. Reserves estimates included herein may not be indicative of the level of reserves or PV-10 value of oil and natural gas production in the future. In addition, the results of drilling, testing and production activities may justify revisions of estimates that were made previously. If significant, such revisions could impact HighPeak鈥檚 strategy and change the schedule of any further production and development drilling. Accordingly, reserve estimates may differ significantly from the quantities of oil and natural gas that are ultimately recovered.

Use of Projections

The financial, operational, industry and market projections, estimates and targets in this press release and in the Company鈥檚 guidance (including production, operating expenses and capital expenditures in future periods) are based on assumptions that are inherently subject to significant uncertainties and contingencies, many of which are beyond the Company鈥檚 control. The assumptions and estimates underlying the projected, expected or target results are inherently uncertain and are subject to a wide variety of significant business, economic, regulatory and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the financial, operational, industry and market projections, estimates and targets, including assumptions, risks and uncertainties described in 鈥淐autionary Note Regarding Forward-Looking Statements鈥� above. These projections are speculative by their nature and, accordingly, are subject to significant risk of not being actually realized by the Company. Projected results of the Company for 2025 are particularly speculative and subject to change. Actual results may vary materially from the current projections, including for reasons beyond the Company鈥檚 control. The projections are based on current expectations and available information as of the date of this release. The Company undertakes no duty to publicly update these projections except as required by law.

Drilling Locations

The Company has estimated its drilling locations based on well spacing assumptions and upon the evaluation of its drilling results and those of other operators in its area, combined with its interpretation of available geologic and engineering data. The drilling locations actually drilled on the Company鈥檚 properties will depend on the availability of capital, regulatory approvals, commodity prices, costs, actual drilling results and other factors. Any drilling activities conducted on these identified locations may not be successful and may not result in additional proved reserves. Further, to the extent the drilling locations are associated with acreage that expires, the Company would lose its right to develop the related locations.

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Investor Contact:

Ryan Hightower
Vice President, Business Development
817.850.9204
[email protected]

Source: HighPeak Energy, Inc.