Highpeak Energy, Inc. · NASDAQ:HPK
Highpeak Energy — Q1 2024 Earnings Presentation
19 slides from Highpeak Energy's earnings presentation, May 9, 2024
Slide 1: Slide 1
Slide 2: Disclaimer
Disclaimer @ncHeeak Ec commconeschonerare Sage ns tants Fmanne sk rpc eee SenSatasscaaooo a crate rms tie
Slide 3: Disclaimer (Cont'd)
Disclaimer (Cont'd) @nxicHpeak
Slide 4: Executing on Our 2024 Core Values
Executing on Our 2024 Core Values @nicHreak Disciplined Operations = 2 rig cadence in current pricing environment = Drive down LOE through efficient operations = Maintenance capex to hold 2023 production Bi Strengthen Balance Sheet * Free cash flow generation = Prioritize debt reduction * Increased
Slide 5: First Quarter 2024 Company Highlights
First Quarter 2024 Company Highlights @nicy * Production average: 49.7 MBoe/d Y Flat with a4’23 * Lease Operating Expenses? $6.30/80e Y 16% decrease Q/Q * Unhedged Cash Margin $52.68/80e ¥_ >65% above peer average = EBITDAX'!: $233.3 Million * Free Cash Flow"): $48.0 Million v 42% increase Q/Q * Net
Slide 6: Infrastructure for Life of Field Development
Infrastructure for Life of Field Development Central t scalable Compreh disposal h liability k batt nsive, low-cost produ ourced high quality fr print Flat Top eee J
Slide 7: Peer Leading Margins
Peer Leading Margins @nicHreak os) jeer leading margins High oll cut and low-cost structure lead to HI NYMEX Oil Price & EBITDAX Margin? 10724 ERTDAK Marin! (s/000 . $52.68 atop aoa $6.30 ‘1A Reduction S6MM fl | | [ | _ ie Equivalent Economic rrodcon 0X7) ses a eas 85 MHPKGross Magn OMT Costs ANYHEX
Slide 8: HighPeak Is An Inventory Story
HighPeak Is An Inventory Story Target Zone erry Wolfcamp A Wolfcamp B Wolfcamp D Upside? Total 350 356 477 EES 919 >2,600 14.6 14.8 ao%9) 26.8 38.3 >114
Slide 9: HighPeak's Path to Success
HighPeak’s Path to Success @nicu
Slide 10: Slide 10
Slide 11: HighPeak Well Activity
HighPeak Well Activity @nucwi a Rig Released Wells In Progress 1a | asotesizone Gross Net op a 199 Non-Op 9 06 Total 30 208 swo a 10
Slide 12: Updated Hedge Profile
Updated Hedge Profile @nxicHpeak 25, sad m= COLLAR From =pUuT 4 SWAP 3 & 15000 é % r0000 = & $,000 3 + ° aorsyar ors? 2ensas. 2028/08 02-08 2024 Average 2025 Average 20.3 MBo/d average 10.5 MBo/d average
Slide 13: Updated Hedge Profile
Updated Hedge Profile ou swars VoL (bt) Price norsjar 366 ——$84.00 nozwjas 368 «$84.00 porwjar 506 ——$7637 nom 1238 sa088 porsjan 495. ——«$7637 pors/az_son_—_«$7637 ors/aa 278 =—«s7585, o2s/ae ars 1a 7626 ‘onurs VOL (MbbI) Pri 1274 $6041 1288 $60.41 184 $58.00 2746 $6025 180 $58.00 382 $58.00 184 $5
Slide 14: Q1 2024 Summary
Q1 2024 Summary Gas per Mcf $1.33 7 = ‘Workover expenses $0.39 eee on G&A (Cash) $1.04 ‘Cash margin (excluding derivatives) $52.68, EBITDAX (SMM) Free Cash Flow (SMM) Other Capex (SMM Rig Released / Tur in ine” @®dnicHPeak
Slide 15: Non-GAAP Financial Measures Reconciliations
Non-GAAP Financial Measures Reconciliations @nxicHpeak Reconciliation of Net Income to EBITDAX. Unhedged Cash Operating Margin Reconciliation Prosar cworoetmemere) [oan Se) aLMar28 Pouce seas Oil, NGL and natural gas sales (including deducts) $287,768 a a interes pe pi ‘Less: Lease operating expense
Slide 16: Non-GAAP Financial Measures Reconciliations
Non-GAAP Financial Measures Reconciliations @nxicHpeak Free Cash Flow Reconciliation 2023 Reserve Replacement Computations: LS Cc osep23 00029 attr aber ~ sone SSS 12388 oe ee es pete es a m — ae 24.249 sles of reserves in-place (1,387) Cantal expenduesexciung suns eee ase) casuess) —snase) arse) Fr
Slide 17: Proved Developed Reserves will Continue an Upward Trajectory
Proved Developed Reserves will Continue an Upward Trajectory @nicHreak Year-End 2023 Proved Reserves!) Net rove Reserves oF Gas (NGL Per rary ategany (oreen)___(0tnc)__(WB)_Tota(MBoe) TotalProved_Uiuids _PV.10(SN0 Broved Developed Woaucng POFT S08 OTS Lea KBE Proved Developed NonProduing(PONO) 4388
Slide 18: No Near-Term Debt Maturities
No Near-Term Debt Maturities @nicHreak $1.2B Term Loan = Closed September 12, 2023 $1,400 ~Proceeds paid off prior debt and enhanced liquidity $1,200 —Extended debt maturities to September 2026 $1,000 Strengthened the capital structure. $800 Secured financing certainty and removed risks of $600 1g b
Slide 19: 2024 Outlook
2024 Outlook Production (MBoe/d) 2024 [Average production rate 43-47 Capex (mm) 2024 Net Operated Wells TL 55-60 [Average Lateral Length 712,000" [Capital Expenditures D.C E&F $450 - $525 [Capital Expenditures, Infra/Other $50-$60 [Total Capital Expenditures”) $500- $585 [Average Rigs 2 [Average Fra