Highpeak Energy, Inc. · NASDAQ:HPK
Highpeak Energy — Q4 2022 Earnings Presentation
25 slides from Highpeak Energy's earnings presentation, Mar 7, 2023
Slide 1: HighPeak Energy Investor Presentation March 2023
cee - ENERGY HighPeak Energy | Investor Presentation March 2023
Slide 2: Disclaimer
Disclaimer @dnHicHreak {htioascnnpemetr niyo arrancones cinoma ards Wha iain rai it art an Maar apes” ‘Sith peterson tea etntopnersnara seein ctorouteet cous ere sate aay cinpraiuyesoar atrsopeasnalassttn neler unig Haare: Raia cases ‘Spice dcrcaneotoaneenrgaanst cha ano ete bond a conpemsssceanroni
Slide 3: Disclaimer (Cont'd)
Disclaimer (Cont’d) ( @wicureak pra aneastontena caret eer npr atm Sct pr dae en ides npr ar pn ech ats cab cape ee Dooiatetiees matnstomtnran eee cose smanng seers eaeoonree spares tp aden sons tnt ostongen Gate pens Ne asnmageen teat ea lneacaacleonea ewcamenvegmdt arpa apenas ok cinemas nesta Acn
Slide 4: HighPeak Overview
HighPeak Overview gap& HIGHPEAK Norther Midland Basin Pure Play Capitalized For Profitable Ol: Weighted Value Crestion <a Key Highlights, ‘Acreage Position and Select Offset Operators. + 082 production average “37.3 MBoe/d * Increased “42% QoQ and™151% YoY + YE22 exttproduction "399 MBoe/d + YE2 pro
Slide 5: Differentiated Growth Story Now Shifting to FCF Harvest
Differentiated Growth Story Now Shifting to FCF Harvest Q@nxicHreak Value Creation Over Time Ti Gxt RateProuctin (08/8) @ Lar Ag, corTONE Production growth demonstrates high rock quality and posi company for free cash flow generation projected in2H'28 onwards S136 ° sist 7 . a seas $307 $306 * od 76
Slide 6: HighPeak Has Peer Leading Margins
HighPeak Has Peer Leading Margins QnuicHeeak High oil cut, low-cost structure, and continued scaling of production lead to HPI peer leading margins 1 4 margins are 24% above nearest per with continued expansion expected as production scale uther nearterm margin Improvements expected from Company pow
Slide 7: Q4'22 Costs Per BOE
Q4’22 Costs Per BOE VAN HIGHPEAK LOE mProduction Taxes m G&A ued Optimization Gains: $14.45 Continued generator removal and solar farm integration $13.30 Volume dilution of fixed costs Infrastructure buildout in Signal Peak and Borden County 9O9 a2'22 93°22 04'22 20236 Exit
Slide 8: Current ESG Update
Current ESG Update @uicwi Fluid Sand Recycling Environmental simulation ftor2 foe Grew afiatTop,carterty condingreeylecapaitee Infrastructure Energy Savings Continuing our efficiency and environmental stewardship
Slide 9: Operations - Flat Top
Operations - Flat Top summary 1 Key Pads/Areas @onrad pad 2 well LS/WCA pad ~ online Extended L5/WCA~4 miles northeast ‘of development area @Fleeman pad 4 well stacked lateral pad — online WCD- 3 finger test (1 well WCB test (1) LS/WCA development (2) Qsriffin 48-378 pad 5 well unit~ online LS wells
Slide 10: Operations - Signal Peak
Operations - Signal Peak summary 1 Key Pads/Wwells @Marchbanks/Powell/Partee pad 4 well pad ~ Running ESPs/Gas-ift WCD-3 Finger test (1 wel) WoC Hutto test (1) WCD-Base development (2) OS. Rta pad ~ 5 well pad finishing fracs WCD-3 Finger test (1) = WCD-Base development (4) @Alsobrooks pad 2 well pa
Slide 11: Year-End Proved Reserves Summary
Year-End Proved Reserves Summary (2) @dnHicHreak 2022 SEC Pricing -$93.67/8bI & $6.358/MMIBLU meine Pu0(smm) Yea Proved Reserves by Category = Multi-year drilling program has driven significant reserves additions and PV10 growth = 2022 Replacement Ratio”) soe —Drill Bit: 546% —Drill Bit + Acquisitio
Slide 12: HighPeak Exhibiting Leading Results in Howard and South Borden Counties
@vnicHpeak HighPeak Exhibiting Leading Results in Howard and South Borden Counties (EUR Distributions per Enverus Relative to HPK Results East Howard & South Borden Oil EUR Distribution Delineation and Laterals to Date West Howard & South Borden OII EUR Distribution ost 017 Non Hx we sering
Slide 13: Substantial Inventory
Substantial Inventory!) @dnHicHreak Results Driven By Excellent Reservoir Performance Across Multile Targets A Remaining Inventory (Gross Locations) a SienalPeak antsrrbEe inary Upside | Pimary —Upeide | Pimary —Upede | all = Approximately 1,300 delineated primary locations booth Ay 7 2 7 ay 7 oS eu
Slide 14: 2023 and 2024 Development Outlook
2023 and 2024 Development Outlook | @\nicHPeak ECF inflection Point in 2023 ~Entering FCF Growth Mode Thereafter") 1006 : L oo sn noo. n0m2= none nmaetnaeae Illustrative 20246 FCF at Various WTI Oil Prices" average production rate 47-53 70-76 lst production rate 58-66 72-80 Icapex(Smm) 2024 r08s Ope
Slide 15: Attractive Value Proposition
Attractive Value Proposition Contiguous Acreage + "112,500 netacres located in two highly contiguous blocks * Optimal large-scale development provides for maximum capital efficiency Inventory Depth = 2,500 gross locations across multiple benches (~30% at > 15,000'laterallength) + -1,300 primary deli
Slide 16: Contact Information
Slide 17: Appendix
Slide 18: HighPeak Well Activity
HighPeak Well Activity Rig Released Wells 2022 FY Gross Net 113 1065 10 04 123° 106.8 440 a& HIGHPEAK Turned in Line Gross Net Gross_—_Net op 2 224 8778.0 Nonop 2 ot 5 02 Total 7 224 92 78.2
Slide 19: HighPeak Inventory Analysis
HighPeak Inventory Analysis Fat wri sa0rse Remaining Locations Flat Top 190% Signal Peak 10% 5 750 400 1250 1500 1750 2.000 @nicue Net Remaining Resource (MMBoe) Flat Top 10% Signal Peak 10% 10% 120% eto) wet esos a a a TD Tatres Toss ae ase 1098 Tatophasace “oat a
Slide 20: HighPeak's Position Poised For Optimal Development
HighPeak’s Position Poised For Optimal Development ‘Optimal Acreage To Maximize Deep Inventory Development HighPeak Poised for Optimal Development on Proven Inventory @dnicHreak = ~88% of HPK acreage has 6 or less wells/DSU makingit one of the least densely populated acreage of any mid-cap Permian p
Slide 21: 4Q2022 Summary
42022 Summary | @nicHpeak Production 042022 Earnings 042022 ‘Total sales volumes (MBoe) 3,436.0 [Net Income (SMM) $67.9 “Total daily sales volumes (MBoe/d) 37.35 GAAP Earnings (per diluted share) $053 loipeteainags = EBITDAX (SMM) $220.9 EBITDAX (per diluted share) ‘$1.71 ie il per BbI $84.67 S2oee
Slide 22: Hedges
Hedges! ( @wicureak summa a ‘o1swars 1 Average oil volumes of ~4,718 Bo/d 25000 hedged in 2023 using swaps at an - I I | ill 5 nnn PPP 2 average price of $71.59/bbI PEL LEE IEP EEE PEPE PEPE P EOE ‘= Average oil volumes of ~5,282 Bo/d hedged through 2023 using puts at an average price of $58.43/bb|
Slide 23: SEC Pricing: Year-End 2022 Proved Reserves
SEC Pricing: Year-End 2022 Proved Reserves") rN HIGHPEAK Year-End 2022 Proved Reserves Net Proved Reserves oO Gas NGL %of % Reserve Category (wpb) (uinet) (wBbI) Total (MBoe) TotalProved Liquids __PV-10(SMM) Proved Developed Producing (POP) 40,428 29028 7,082 52308 43% 31% «$1,987 2417 3641 $373 32,
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation | @XHiGHPeak Reconciliation of Net Income to EBITDAX Unhe Cash rating Margin Reconciliation ing {in thousands Qtr. Qtr. Qtr. in the ae Ended Ended Ended ot todd seDee2s | somerd2 | souun22 | so-Sep-2 | 8408622 | Gi: Not and natal gas sales (incoding $ 257915 |Net income $37,0
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of Proved Reserves PV-10 to Standardized Measure ‘Asof of of 12/31/: 12/31/21_|__ 12/31/22 $235,490 | $1,338,193 | $3,872,045 Present value of future income taxes/abandonment costs, ($13,298) | ($219,384) |_($455,537) standardized measure $222,192 $1,118,809 |