Highpeak Energy, Inc. · NASDAQ:HPK
Highpeak Energy — Q3 2022 Earnings Presentation
19 slides from Highpeak Energy's earnings presentation, Nov 15, 2022
Slide 1: 3Q22 Presentation
Slide 2: Disclaimer
Slide 3: Disclaimer Continued
DISCLAIMER CONTINUED ( Ba HIGHPEAK Famers spac shoe niet pe aoe sik anata eae ten aier nner evesrncrasooasrasoncbunsesnponat pst smn sncnenswnson rte ral soveateal noaiaipraetsosearsseeasto sap npventamntaaccare tion eet
Slide 4: HighPeak Energy: Core Midland Pure-Play
HIGHPEAK ENERGY: CORE MIDLAND PURE-PLAY None Midland Basin Pre-Pay Coptalzed or Ecler ik: Weighted Sharcholder Valve Creation Overview and Q3 Highlights @nuicupeak ‘Acreage Position and Selected Offset Operators Production and Profitability 3022 production average (“83% ll, 93% liquids) 4022 qurter
Slide 5: Differentiated Growth Story Continues
DIFFERENTIATED GROWTH STORY CONTINUES ata an ‘a sacoo 2000 10000 ae mk es | Sis a aa ol Fa ng SE sve mes aS NL IL I MR eee) sonar a» _ “° mm x # wa Seetaas a | aaa uh ie) arte eal aan, aaleh aejat as amfod aenyan mare ae
Slide 6: Peer Leading Margins
PEER LEADING MARGINS rAN HIGHPEAK Unhedged EBITDA margins for the 3 months ended 9/30/22 (S/80e)" “84% of realized Q3 price per Boe |
Slide 7: Lease Operating Expenses
LEASE OPERATING EXPENSES rAN HIGHPEAK of $0.93/80e mainly due to bringing { ‘Lense Operating Expense acquired assets up to HPK standards. | RD ators tenting to dacresse in OE * Continued generator removal « Dilution of fixed costsas production scales «Infrastructure bulldout in Signal Peak 1 Tempora
Slide 8: Q3 2022 Costs per Boe
(Q3 2022 COSTS PER BOE ‘Total cash costs for the 3 months ended 9/30/22 ($/B0e)" sunae Peer ‘= Tatwinds for further cath cost reduction * Non-recuring increase in worover expense quanerover quarter duet bvinglng Mannathon and Alamo operations upto MighPeak standards post. scqusion The largest prion
Slide 9: Production Profile and Well Performance
PRODUCTION PROFILE AND WELL PERFORMANCE rAN HIGHPEAK ‘Continue to demonstrate consistent well results as ‘we have expanded development across the acreage position and formations 2022 vintage wells outperforming 2023 & 2020 well 359000 Tesults istent Well Performance by Ye = 2022 vintage wells includ
Slide 10: Operations Update
OPERATIONS UPDATE @nyicHeeak FLAT TOP AREA = Commissioned substation in late-May eal enti = Continue toreduce rental generators ~ Expect to have FT fully energized by Qt 2023, ~ 2 Drilingrig expected to be “Plugged-in” during Dec. 2022 15-75% of crude oil gathered via pipeline & LACT sales 1 Recycli
Slide 11: Environmental Social Governance
HIGHPEAK . xd) CO S Environmental Social Governance >82% Recycled & Non-potable water used for Q3 stimulation fluid in Flat Top >800K Gallons of diesel supplanted in 03 through: Wet Sand Usage") <q =m Dual Fuel A A SB Electrification
Slide 12: Capitalization and Q4'22 Guidance
CAPITALIZATION AND Q4’22 GUIDANCE @bnucupeak Commentaryand Guidance Bo Forma capitalization (§ milions) me Aduned ro Foma "Increased production 63% from Q2'22 to. 4722 Son? Adware 5/2072 ‘quarter to date Gah andes eavatnts Se se s Recent financings increased liquidity over 400% feolng cet ity 355 00
Slide 13: Executing Our Plan
EXECUTING OUR PLAN @nucu Operational Foresig
Slide 14: HighPeak Energy, Inc. Contact Information
Slide 15: Appendix
Appendix
Slide 16: HighPeak Well Activity
HIGHPEAK WELL ACTIVITY @vdnuicureeak Rig Released In Progress Turned in Line Wells 9} sof 9/30/2022 3022 2022110 Net 7 6S 8 753 Se eo [8
Slide 17: Hedges
HEDGES") ( @bnucupeak i ‘OIL HEDGES Average oil volumes of ~11,661 Bo/d hedged for Q4 2022 at average price of $85.85/bbI™) m Average gas volumes of ~$,000 MMBtu/d hedged through Q1/23 at an average price of $9,00/MMBtu 10,000 | 5.000 DALY O1 VOLUME (b/s) aoa sis S67 obEEEE (O02 eyDD OHe22 m3 FDS Ma
Slide 18: Q3 2022 Summary
Q3 2022 SUMMARY Production 932022 “Total sales volumes (MBoe) 2.4147 \Net income(SMM) ™ GAAP Earnings (per dited shore) Liquids percentage (il per Bot [NGL per Bb as per Met {Total per Boe (excluding derivatives) | Rig Released” / Turn in Line Total per Boe (including derivatives) Costs (per Boe) ie
Slide 19: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS rAN HIGHPEAK Reconciliation of Net Income to EBITDAX Unhedged Cash Operating Margin Reconciliation Three Monte Three Months thousands) Ended in thousands) tnded 30-Sept-22 30-Sept-22 $107,908 Bi Reontot esta Interestexpense 40a | ai taaie pe pee (37,462) Income axerpense 325