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HighPeak Energy, Inc. Announces Preliminary Fourth Quarter 2021 Results and Provides an Operational & Financial Update
FORT WORTH, Texas, Feb. 22, 2022 (GLOBE NEWSWIRE) -- HighPeak Energy, Inc. (“HighPeak” or the “Company”) (NASDAQ: HPK) today announced an operational update,
About this update from Highpeak Energy, Inc.
[{"type":"text","content":"FORT WORTH, Texas, Feb. 22, 2022 (GLOBE NEWSWIRE) -- HighPeak Energy, Inc. (“HighPeak” or the “Company”) (NASDAQ: HPK) today announced an operational update, 2021 year-end proved reserves, 2022 guidance update, the entry into agreements with various sellers to purchase oil and gas assets and the closing of the previously announced private placement of senior unsecured notes. Preliminary Fourth Quarter 2021 Results and Recent Operational & Financial Updates Fourth quarter 2021 average net daily sales volumes are expected to be between 14,500 - 15,500 Boe per day, an increase of approximately 77% - 90% compared with third quarter 2021, consisting of approximately 85% - 90% oil and 94% - 96% liquids.Fourth quarter 2021 sales volume estimates benefitted from a successfully executed fourth quarter drilling campaign and are based primarily on production from approximately 59 gross (47.4 net) horizontal wells. At December 31, 2021, the Company had an additional 27 gross (23.0 net) horizontal wells in various stages of drilling and completion that are expected to come online during the latter part of the first quarter 2022.Fourth quarter 2021 EBITDAX (a non-GAAP financial measure) is expected to range from approximately $70 million to $75 million.Using flat pricing of $72 per barrel of oil and $3.75 per MMBtu of natural gas, before adjustments for price differentials, and an estimated realized price of $32.18 per barrel of natural gas liquids, the Company’s proved PV-10 reserve value (a non-GAAP financial measure) increased to approximately $1.5 billion.Using the SEC pricing, year-end 2021 estimated proved reserves increased 185% to 64.2 MMBoe, compared with year-end 2020 proved reserves. Proved developed reserves increased 178% to 28.6 MMBoe and were 45% of the Company’s total proved reserves.Closed on the previously announced private placement of $225 million principal amount of 10.0% senior unsecured notes due 2024 (the “Notes”). Simultaneously with the Closing of the Notes, the Company paid down its Revolving Credit Facility to zero.During the first quarter 2022, the Company entered into a series of agreements to acquire various oil and gas properties contiguous to its Flat Top operating area, which in the aggregate, consist of approximately 9,500 net acres, associated estimated production of 2,500 Boe per day, approximately 40 addi...