Highpeak Energy, Inc. · NASDAQ:HPK
Highpeak Energy — Q1 2022 Earnings Presentation
22 slides from Highpeak Energy's earnings presentation, May 17, 2022
Slide 1: Slide 1
Slide 2: Slide 2
Slide 3: Disclaimer Continued
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Slide 4: HighPeak Energy: Core Midland Pure-Play
HIGHPEAK ENERGY: CORE MIDLAND PURE-PLAY @nuicupeak Neen Midland Bain Pre-Pay Coptalzed or Efcen iL: Weighted Valve Generation Overview and Key Statistics Pro Forma Acreage Position and Selected Offset Operators Peden an Potty 1022 verge (43% 0 SH! “as wooed en ae ihe ty eae “2s0Mboe/s . NPR Hanon gr
Slide 5: Pro Forma Production Growth
PRO FORMA PRODUCTION GROWTH @dndicHreak uidace:62 72 els © winterstormun © offset racing ones es @ Production recovery & scceleraton
Slide 6: Oil Weighted Growth to Continue
OIL WEIGHTED GROWTH TO CONTINUE rAN HIGHPEAK FY 2021 Avg. Est. FY 2022 Avg. Est. FY 2023 Avg. 9.3 Mboe/d 32-37.5 Mboe/d 62-72 Mboe/d ‘Average Production (MBOE/A) 3 3375 Car Bit Production Rate (MBOE/A) 148 47-53 5-85 ‘Annualized EBrTDA (Stan) Si64 $750-$860 $1,500-$1,800 Bit Rate EBITOA(SMN r 300" 5
Slide 7: 2022 Acquisitions - Adding Cash Flow, Scale and Development Runway
2022 ACQUISTIONS— ADDING CASH FLOW, SCALE AND DEVELOPMENT RUNWAY Ba HIGHPEAK
Slide 8: Q1/2022 Margins
Q1/2022 MARGINS rAN HIGHPEAK Unhedged EBITDA margins forthe 3 months ended 3/31/22 (S/80e)" = Strong ollweighted margins 2 Positioned to accelerate margin growth with LOE reduction initiatives and dilution of fixed costs | ] il [] | TH All BOES are not c 1 01/2022 margin are 21% above nearest peer w
Slide 9: Flat Top Activity
FLAT TOP ACTIVITY = Drilling erage“ rigs during remainder of 2022, Primary focus ofco-developingtS/WCA Completions 2 fraccrews for remainder of 2022 ~ Greater than 70% of Flat Top stimulation fluid was recycled produced waterin Q1 1 Infrastructure ~ 60 MW Substation commissioned = Removal of rental
Slide 10: Signal Peak Activity
SIGNAL PEAK ACTIVITY Remaining 2022 Outlook ‘Average ~ 1g.0n legacy HighPeak acreage Continuation of 1 rig dling program on annathon sequied sereage Delineation across position n progress ‘New 1S, WA & WD well sults meeting oF caceeding management's expectations ‘New WO well results the area continu
Slide 11: Signal Peak Infrastructure Development
SIGNAL PEAK INFRASTRUCTURE DEVELOPMENT AN HIGHPEAK =HighPeak System — Infrastructure design and implementation in progress —Continue buildout of HighPeak’s water system to provide for increased recycling capabilities —Drill one saltwater disposal well on legacy HighPeak acreage =Hannathon system —3
Slide 12: Signal Peak Wolfcamp D Economics
SIGNAL PEAK WOLFCAMP D ECONOMICS!) ‘0 13 ia ua ” oso i z Bn any z i = 510 040 ss ‘is * ai sm $80 $90 wait price (5/00) EUS PEK OPES ORBASECAPEX —e-CAPEX pe SOS si00 suo Base Capital Economics @vuicupeak $90/bbI__$100/bbI_$110/bbI_ D,GEBF Capital (mm) $10.73 Gross IP365 (Boe/d) 71 %oi 75% i! EUR (Mbo
Slide 13: ESG and Sustainability Strategy
ESG AND SUSTAINABILITY STRATEGY ‘Great forthe environment and forthe Compas bttom Hine a % ca Reeyled> 70m of lat Top sialon ds Substation removes 50 rental generators ¥_Dailling with solar power in~@3 ¥ Local sand mine will reduce total trucked miles Utilization of wet sand will reduce combustion e
Slide 14: Mitigating Capital Cost Escalation
MITIGATING CAPITAL COST ESCALATION Sand Trucking Fuel Sand mine proximity reduces trucking costs Water system provides Increased recycling capability Due to preemptively looking ahead to combat ing inflation & supply chain pressures, HighPeak expects to stay within budgeted capex guidance
Slide 15: Updated Pro Forma Outlook
UPDATED PRO FORMA OUTLOOK Updated Pro Forma Outlook 2008 tow High Production Average Rate (Boe/8) 32000 - 37500 62,000 - 72.000 Est Rate (Boe/é) 7.00 - 53000 75,000 - 85,000 ‘capex milons) Copal Expenditures, O.CE& F $790 - $860 Capital Expenditures, Lanifra/Other $35 = «$40 Capital Expenditures, To
Slide 16: Growth Story Continues
GROWTH STORY CONTINUES @dndicHreak COMPANY OBJECTIVES Responsible — Ey Cea Operational Excellence Peer Leading Margins Strong Balance Sheet
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Slide 18: Appendix
Appendix
Slide 19: Hedges
HEDGES") Summary w Average volumes of ~7,213 Bo/d hedged for remainder of 2022 at average price of $72.25/bbI°) Hedged volumes reflect ~ 25% of remaining projected 2022 oil volumes!) 2022-02 1,038.8 $71.96 2022-03 4564 $75.15 2022-04 ©4874 $70.14 202-01 441.0 $70.05 2023-02 © 2002 $57.22 Daity Olt v
Slide 20: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Reconciliation of Net Income to EBITDAX @vdnuicureeak Unhedged Cash Operating Margin Reconciliation [in thousands) Three Months Ended 31-Mar-22 Net loss (16,664) Interest expense 5,252 Income tax benefit (158) peices aa Accretion of discount 54 Exploration and abandonment ex
Slide 21: Flat Top Development Delivers Top Tier Economics
FLAT TOP DEVELOPMENT DELIVERS TOP TIER ECONOMICS(*) 330 NPvi0 ($m) sm $0 ror ease care $00 $100 Wi 0i Price (5/86) a F0: A es $0.5 70: cE put 0 suo Base Capital Economics @vuicupeak $90/bb|__$100/bbI_$110/bbI_ D,GEBF Capital (Smm) $7.25 Gross IP365 (Boe/d) 509 Hol 92% i! EUR (Mbo) 701 Gas EUR (Mmef)
Slide 22: HighPeak Well Activity
HIGHPEAK WELL ACTIVITY ‘sof March 31,2022 @nuicupeak FLAT TOP SIGNAL PEAK Rig Released Wells ‘Turned In Line In Progress 1Q22 2022 VD T1927 2022 V1) ‘As of March 31, 2022 Gross _Net__Gross__Net Gross Net__ Gross _Net. Gross Net op 2 19.7 2D 19.7 20 16.0 20 16.0 32 29.7 NONOP 3 04 3 04 0 0.0 0 0.0 4