Business
HighPeak Energy, Inc. Announces First Quarter 2023 Financial and Operating Results and Updated Development Plan
FORT WORTH, Texas, May 10, 2023 (GLOBE NEWSWIRE) -- HighPeak Energy, Inc. (“HighPeak” or the “Company”) (NASDAQ: HPK) today announced financial and operating
About this update from Highpeak Energy, Inc.
[{"type":"text","content":"FORT WORTH, Texas, May 10, 2023 (GLOBE NEWSWIRE) -- HighPeak Energy, Inc. (“HighPeak” or the “Company”) (NASDAQ: HPK) today announced financial and operating results for the quarter ended March 31, 2023 and provided an updated development plan. Highlights Produced average sales volumes of 37,222 barrels of crude oil equivalent per day (“Boe/d”), consisting of 85% crude oil and 94% liquids.Generated net income of $50.3 million and EBITDAX (a non-GAAP financial measure defined and reconciled below) of $173.9 million.Realized average price of $66.80 per Boe, or approximately 88% of the weighted average of NYMEX WTI crude oil prices, excluding the effects of derivatives.Achieved a cash margin of $52.56 per Boe, or approximately 79% of the first quarter average realized price, excluding the effects of derivatives.Ended the first quarter with 64 gross (61.3 net) horizontal wells in various stages of drilling and completion; and, throughout the quarter, turned in line 32 gross (25.8 net) horizontal wells. Development Outlook and Revised Guidance HighPeak revised its development outlook for 2023 by reducing its drilling rig count from four (4) to two (2) rigs effective June through the remainder of 2023. The Company previously reduced the number of completion crews from four (4) to two (2) and will continue to run an average of two (2) through the remainder of 2023 to complete the operational DUCs generated by the previous six (6) rig program. This revised plan is expected to reduce 2023 capital expenditures by approximately $250 million from the original capital budget. In early 2024, HighPeak expects to increase its drilling activity back to a four (4) rig program and maintain two (2) completion crews while entirely funding all activity through operating cash flow. The Company continues to regularly monitor market conditions and the state of the overall economy and may accelerate drilling activity if commodity prices warrant. 2023 2024Production (Boe/d) • Average production rate 45,000 – 51,000 60,000 – 66,000• Exit production rate55,000 – 61,00068,000 – 76,000 Capex ($MM) • Gross Operated Wells TIL105 – 115105 – 110• Capital Expenditures, D,C,E&F$900 – $975$850 – $900• Capital Expenditures, Infra/Land/Other $50 – $60$20 – $30• Total Capital Expenditures$950 – $1,035 $870 – $930 Unit Measures ($/Boe) • Lease Operating Expenses $6.50 –...