Highpeak Energy, Inc. · NASDAQ:HPK
Highpeak Energy — Q1 2021 Earnings Presentation
24 slides from Highpeak Energy's earnings presentation, May 18, 2021
Slide 1: Investor Presentation May 2021
Investor Presentation May 2021 1
Slide 2: Disclaimer
DISCLAIMER • FORWARD-LOOKING STATEMENTS • The information in this presentation and in any oral statements made in connection herewith contains forward-looking statements that involve risks and uncertainties. When used in • or in connection with this document, the words “believes,” “plans,” “expects,
Slide 3: Disclaimer (Cont'd)
DISCLAIMER (CONT’D) • RESERVE INFORMATION • Reserve engineering is a process of estimating underground accumulations of hydrocarbons that cannot be measured in an exact way. The accuracy of any reserve estimate depends • on the quality of available data, the interpretation of such data and price and
Slide 4: HighPeak Energy
HIGHPEAK ENERGY Northern Midland Basin Pure-Play Positioned for Efficient Oil-Weighted Value Generation • Key Statistics • Acreage Position and Selected Offset Operators • Production Current production of approximately 8.3 MBoe/d (1) at ~90% oil cut – Q1/21 production of 5.3 MBoe/d an increase of
Slide 5: HighPeak Energy Investment Highlights
HighPeak Energy Investment Highlights Generated EBITDAX(1)of $20.1 million Average production of 5,290 Boe/d Q1 Highlights: Zero debt and $9.6 million cash on hand First phase of Company-owned water system fully operational 1 Rig Program 2021 Average Net Production of 10.5 to 12.0 MBoe/d 2021 Guidan
Slide 6: Delivering Capital Efficient Oil Weighted Growth
Delivering Capital Efficient Oil Weighted Growth Q4 2020 • Q1 2021 • Production (Net MBoe/d) 5.3 3.3 Total Debt • • $0 EBITDAX ($ millions) 20.1 7.0 Oil Mix • • ~90% Lateral Feet Drilled 75.9 (000 ft) 46.2 6
Slide 7: First Quarter Key Metrics
First Quarter Key Metrics(1) Production and Pricing Total production (MBoe) 476.1 Total production (MBoe/d) Oil percentage 5.3 90% QoQ LOE/Boe • Liquids percentage Realized Pricing 95% 28% • Oil per Bbl $58.36 NGL per Bbl $27.82 Gas per Mcf $2.23 Total per Boe $54.01 Costs (per Boe) LOE (including t
Slide 8: Operational Update
OPERATIONAL UPDATE(1) Overview • Flat Top • Statistics – Well lengths ranging from ~8,500 to over 15,000’ – Phase 1 produced water system fully operational – Basin’s first high volume horizontal Ellenburger SWD – Signal Peak WC-C & WC-D Signal Peak • wells currently on flowback FLAT TOP SIGNAL PEA
Slide 9: Peer-Leading Capital Efficiency and Margins
PEER-LEADING CAPITAL EFFICIENCY AND MARGINS • Capital Efficiency • Capital Efficiency Through 31 Wells Drilled(1) Continuous capital improvement $700 12,500 20 – Pad development $600 $500 12,000 15 – Longer laterals $400 11,500 10 – Service company relationships $300 – Ongoing operational improvem
Slide 10: Single Well Economics
SINGLE WELL ECONOMICS • Low Cost, High Oil Cut Generates Premium Returns Wolfcamp A 10,000’ well economics (1) • •Lower Spraberry 10,000’ well economics (1) Single well IRR% Single well IRR% DCE&F Costs ($MM) DCE&F Costs ($MM) $4.8 $5.3 $5.8 $4.8 $5.3 $5.8 Single well sensitivities Single well sensi
Slide 11: Midstream & Marketing Update
MIDSTREAM & MARKETING UPDATE Infrastructure Map • Q1 revenue = 97% oil Crude Oil Executed long-term marketing and gathering Gathering and contract for Flat Top crude oil Takeaway – Attractive all-in rates – Gatherer required to install gathering system – Barrel buyback option provides flexibilit
Slide 12: ESG Highlights
ESG HIGHLIGHTS Environmental Social Governance Removed ~11,500 Workforce is 30% Established ESG truckloads(1) during Women Committee Q1 2021 Beginning eco- Zero safety 2 of 7 Board friendly incidents to date members are electrification diverse Expanding gas Flexible work Majority of Board is gatheri
Slide 13: Company Highlights
COMPANY HIGHLIGHTS Responsible Growth – Efficient production growth of over 150%(1) Strong Balance Sheet – No debt, undrawn revolver Operational Success – Focus on capital and operational efficiency Attractive Product Mix – ~90% oil cut drives high margins (1) Based on Q4/20 average production of ~3
Slide 14: Contact Information
HIGHPEAK ENERGY, INC. CUSTOM LAYOUT • Contact Information Corporate Headquarters 421 W. 3rd St., Suite 1000 Fort Worth, TX 76102 www.highpeakenergy.com Ryan Hightower, Vice President - Business Development (817) 850-9204 IR@highpeakenergy.com Unsaved Document / 1/8/2021 / 19:15
Slide 15: Appendix
HIGHPEAK —- a APPENDIX
Slide 16: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Reconciliation of Net Income/Loss to EBITDAX • (in thousands) Three Months Ended 31-Mar-21 31-Dec-20 Net income (loss) attributable to common stockholders $ 4,744 $ (4,913) Income tax expense (benefit) 1,115 (1,914) Depletion, depreciation and amortization 12,963 7,550 Stock
Slide 17: Reservoir Quality Similar Across Howard County
RESERVOIR QUALITY SIMILAR ACROSS HOWARD COUNTY SW NE • Key Reservoirs Comparison •Across Howard County Lower Spraberry Wolfcamp A West East West East Howard Howard Howard Howard Porosity 4.3% 4.7% 4.3% 4.3% Net to gross 89% 91% 82% 89% Wells/section 8 6 10 6 Spraberry Lower NE Wolfcamp A SW HighPeak
Slide 18: Oil-Rich Mixed Lithology Rock Column
OIL-RICH MIXED LITHOLOGY ROCK COLUMN Spraberry and Wolfcamp sections comprised of mixed-lithology, kerogen-rich reservoirs Organic- Interbedded limestones are consistently kerogen- rich, high-porosity reservoir intervals rich shale facies DEAN All rock types are hydrocarbon-bearing and contrib
Slide 19: Over a Decade of Inventory
OVER A DECADE OF INVENTORY3 Level of Delineation Middle Target Wolfcamp A Lower Spraberry Wolfcamp B Wolfcamp D Jo Mill Wolfcamp C Spraberry Flat Top Operated 156 165 173 173 172 172 0 Locations Signal Peak Operated 114 114 114 114 0 0 228 (1) Locations Flat Top Development Design • Signal Peak Deve
Slide 20: HighPeak History
HIGHPEAK HISTORY Starting in 2017, HighPeak acreage was assembled through HighPeak I fund and HighPeak II fund investments over a period of ~3 years – Capital was contributed by management and investors to acquire HighPeak’s current Eastern Howard county position in the Midland Basin Pure Acquis
Slide 21: Original Oil in Place
ORIGINAL OIL IN PLACE(1) Primary reservoirs have comparable rock quality on HighPeak acreage compared to Western Howard Lower Spraberry OOIP Wolfcamp A OOIP LSBY OOIP WC-A OOIP (Mmbo/mi2) (Mmbo/mi2) 0 85 0 60 (1) HighPeak acreage and wells as of Feb. 1, 2021 21
Slide 22: Original Oil in Place
ORIGINAL OIL IN PLACE(1) Wolfcamp D shale on HighPeak’s Signal Peak acreage has the highest OOIP in Howard County Wolfcamp B OOIP Wolfcamp D OOIP WC-B OOIP WC-D OOIP (Mmbo/mi2) (Mmbo/mi2) 0 40 0 44 (1) HighPeak acreage and wells as of Feb. 1, 2021 22
Slide 23: Signal Peak Offsets Prolific Wolfcamp C Hutto Field
SIGNAL PEAK OFFSETS PROLIFIC WOLFCAMP C HUTTO FIELD(1) The Wolfcamp C Hutto reservoir has produced >4.5 WC-C Hutto OOIP million barrels of oil equivalent from vertical wells (Mmbo/mi2) 20 90 The lower target interval exhibits consistently high porosity throughout the Signal Peak acreage position
Slide 24: The End
HIGHPEAK —- a