Highpeak Energy, Inc. · NASDAQ:HPK
Highpeak Energy — Q1 2023 Earnings Presentation
24 slides from Highpeak Energy's earnings presentation, May 11, 2023
Slide 1: HighPeak Energy Investor Presentation May 2023
HighPeak Energy Investor Presentation May 2023
Slide 2: Disclaimer
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Slide 3: Disclaimer (Cont'd)
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Slide 4: Updated Development Plan Accelerates Transition to Free Cash Flow
Updated Development Plan Accelerates Transition to Free Cash Flow rN HIGHPEAK Updated Development Plan 2023 & 2024 Outlook 2023 Production (MBoe/d) * Intentionally moderated development plan to accelerate freecash R sind Se 45-51 60-66 fowinfectonpontwtitedelwenresriteantproduciongrowen avezae reduc
Slide 5: HighPeak Overview
HighPeak Overview GQuxicHPeeak Northern Midland Basin Pure-Play Capitalized For Profitable Oil-Weighted Value Creation — oe eee KeyHighlights ‘Acreage Position and Select Offset Operators = Q1’23 production average 37.2 MBoe/d * Increased 209% Year Over Year = 113,600net acres (63.2k Flat Top, 50.4k
Slide 6: Differentiated Growth Story Now Shifting to FCF Harvest
IGHPEAK Differentiated Growth Story Now Shifting to FCF Harvest Bui Value Creation Over Time, eae tection (09) Production growth demonstrates high rock quality and p< © 1a carte company for significant free cash flow generation | Positive and inereasing FCF projected in 2H'23 onwards $4550 = $4200 a
Slide 7: HighPeak's Margins Continue to Outpace Peers
HighPeak’s Margins Continue to Outpace Peers @nxicHreak High oil cut low-cost structure, and continued scaling of production lead to HPK’s peer leading margins = Qi margins are 33% above nearest peer = HPK Q1’23 margin ($52.56/Boe) is “55% igher vs. Q1'23 peer average Unhedged EBITDAX Margins for th
Slide 8: Enhancing Well Results Across Multiple Benches
Enhancing Well Results Across Multiple Benches @nxicHreak = Continue to demonstrate consistent well results as we Improving Well Performance Year Over Year have expanded developmentacross the acreage 200 —201 —2002 position and formations eal = 2022 wells have outpaced 2021's improvements over sae 2
Slide 9: Operations — Flat Top
Operations — Flat Top Summary a HIGHPEAK Q1’23 activity areas = key Pads/Areas |— Conrad pad — Extended L5/WCA~4 miles northeast of development area Q- sriffins.37 8 pad ~ LSwells producing similar to WCA = Southeast Flat Top ~ Demonstrated well performance | ~ Offset operator 2 well WCA pad; cor po
Slide 10: Operations — Signal Peak
Operations — Signal Peak Summary = Lower Spraberry / Wolfcamp A @ Delineation in advance of development OO hnitial development pads T Lower Spraberry / Wolfcamp A ~ Phase 1 Devel t is = Wolfcamp D - 3F © @ resting additional stacked bench —Wells in various stages of completion or initial flowback In
Slide 11: Current ESG Update
Current ESG Update @bdnhicw Fluid Sand Environmental Energy Savings Continuing our efficiency and environmental stewardship
Slide 12: Asset Ready for Full Development
Asset Ready for Full Development HIGHPEAK 1) = Central Tank Battery configuration— Electrical infrastructure m Large Scalable Efficient = Low emissions Alll electrical, SWD and recycle systemsin place for full development Water infrastructure
Slide 13: HighPeak Exhibiting Leading Results in Howard and South Borden Counties
HighPeak Exhibiting Leading Results in Howard and South Borden Counties OIL EUR Distributions per Enverus Relative to HPK Results HIGHPEAK 1) East Howard & South Borden Oil EUR Distribution Delineation and Laterals to Date Flat Top 1000 EE Dowson en ° rr a a, a West Howard & South Borden Oil EUR Dis
Slide 14: HighPeak Checks All the Boxes
HighPeak Checks All the Boxes @nicHreak Operational Scale Inventory Quality and Depth PeerLeading Margins Sustainable Free Cash Flow Generation 113,600 net acres in two highly contiguous blocks in the Midland Basin First quarter year over year production growth of > 200% 2,500 total gross locations;
Slide 15: Appendix
Slide 16: HighPeak Well Activity
HighPeak Well Activity QndicHPreak Rig Released (1) in Li Wells In Progress Turned in Line 1023 Asof 03/31/2023 |
Slide 17: Substantial Inventory
Substantial Inventory) Results Driven By Excellent Reservoir Performance Across Multiple Targets Inventory Details = Approximately 1,300 delineated primary locations from current producing intervals = >14 years of anticipated primary at 4-rig cadence; > 58 rig-years of primary = Approximately 1,200
Slide 18: Year-End Proved Reserves Summary
Year-End Proved Reserves Summary ')(2) ama HIGHPEAK 2022 SEC Pricing -$93.67/86I & $6.358/MMBtu Stee puso (sem) aa ProvedResetesy caer = Multi-year drilling program has driven significant reserves additionsand PV10 growth 2022 Replacement Ratio) snteoe —Drill Bit: 546% —Drill Bit + Acquisitions: 757
Slide 19: SEC Pricing: Year-End 2022 Proved Reserves
SEC Pricing: Year-End 2022 Proved Reserves") ama HIGHPEAK ‘Year-End 2022 Proved Reserves Net Proved Reserves oi Gas NGL %ot % Reserve Category (web) (amet) (web!) Total (MBoe) Total Proved Liquids _PV-10(SMM) Proved Developed Producing (POP) 40,428 29,028 7,042 52,308 43% 91% «$1,947 8.950 7% 93% $3
Slide 20: Improving Costs Per BOE
Improving Costs Per BOE vA HIGHPEAK LOE Production Taxes GRA Continued Optimization Gains: Continued generator removal ‘and solar farm integration Volume dilution of fixed costs Infrastructure buildout in Signal Peak and Borden County Fy22 20236 Exit
Slide 21: Hedges
Hedges) Summary = Average oil volumes of ~4,492 Bo/d hedged from Q2'23 ~ 03'23 using swaps at an average price of $69.32/bb1 = Average oil volumes of ~7,011 Bo/d hedged from Q2'23 ~ 0423 using putsat an average price of $58.43/bbl = Average oil volumes of ~7,486 Bo/d hedged for 2024 using puts at an
Slide 22: Q1 2023 Summary
Q12023 summary | @\vHiGHPeak earings 2003 ‘Total sales volumes (MBoe) 3,350.0 Net Income (SMM) $50.3 ‘Total daily sales volumes (MBoe/d) 37.22 GAAP Earnings (per diluted share) $0.39 on percents oor EBITDAX (SMM) $173.9 Liquids percentage EBITDAX (per diluted share) $1.34 Cl per BbI $76.07 = - FR NG
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of Net Income to EB! ITDAX @ncHPeak Unhedged Cash Operating Margin Reconciliation ‘Quarter Ended (in thousands) ee ‘31-Dec-21 ‘31-Dec-22 31 23 = Ended |Net income $37,028 S_ 67,899) $50,257 31-Mar-23 terest expense 133 2aed__—__2637 “pana eve ales nc per |Oil,
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of Proved Reserves PV-10 to Standardized Measure of f 12/31/20 12/31/21 eserves PV-10 $235,490) $1,338,193 $3,872,045 Present value of future income taxes/abandonment costs, (813,298) | ($219,384) |__ ($455,537) Standardized measure $222,192) $1,118,809 $3,416,