Highpeak Energy, Inc. · NASDAQ:HPK
Highpeak Energy — Investor Presentation (March 2021)
29 slides from Highpeak Energy's investor presentation, Mar 15, 2021
Slide 1: Investor Presentation March 2021
Investor Presentation March 2021
Slide 2: Disclaimer
DISCLAIMER — @nwicupeak omg tres Nan na ain ce nar lenges ok Sp y= his Nea Cae ees aay Shih ater ac nanons mea moe oy ‘Site soma (tng coment ena a etn btm pene ahs arson ae 2 one hahha ome nea baa a rat ty ed mtd te ot ‘i icursad one sau pn pen, sh brea eteaoes mss nd atm tata pce, cae comaeng gat a
Slide 3: Disclaimer (Cont'd)
DISCLAIMER (CONT’D) | @uicxreak
Slide 4: HighPeak History
HIGHPEAK HISTORY Bui ® Starting in 2017, HighPeak acreage was assembled through HighPeak | 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 Ac
Slide 5: HighPeak Energy
HIGHPEAK ENERGY Northern Midland Basin Pure-Play Caj Key Statist, © Market cap “31.2 billion (as of Mar. 1, 2021), ® Production Current production of approximately 7.6MBoe/d = Acteage~33,000 and ~18,000 netacresin Flat Top and Signal Peak ‘areas locatedin the core of the Northern Midland Basin, resp
Slide 6: CGA Year-End 2020 Proved Reserves
CGA YEAR-END 2020 PROVED RESERVES @nuicrpeak "Flat $63.00/8bI and $3.00/MMBtu aa (GA Year-End 2020 Proved Reserves!) Net Proved Reserves oi Gas NGL Total %ot * pv.10 Reserve Category (abt) (MNci)__(MBbI)_—(MBoe)_—Total_—iLiquids (SMM) Proved Developed Producing (POP) aan 1,863 268 5,250 Proved Devel
Slide 7: Operational Update
OPERATIONAL UPDATE Horizontal Wells @ Flat Top Overview 1 Statistics — Well lengths ranging from 8,500 to over 15,000" ~ Horizontal Ellenburger SWD with high volume injection capacity = Producing wells — 12 wells (9 WCA, 3 1S) = Flowback 12 wells (7 WCA, 5 LS) 1m In Progress — 7 wells (6 WCA, 115)
Slide 8: Current Capitalization and Guidance
CURRENT CAPITALIZATION AND GUIDANCE ‘current capitalization [Near TermPOP Reserve Growth AsReported {Sin mitions) 12/31/2020 (Cash and cash equivalents 920 Revolving creitfacility = ighPeakerpects Total debt strong growth in PDP Pv-iDin iH 2021 as Market value of equity as of 03/01/2021 Suzie Total
Slide 9: Evolution of Development in Howard County
EVOLUTION OF DEVELOPMENT IN HOWARD COUNTY @vnicureak Howard County is one of the most active areas of the prolific Permian Basin wi rigs currently running and nearly 2,000 horizontal wells drilled to 2016 Sticks 2020 Sticks 2021 and Beyond HZ Wellsto ate: 176 Hz Wellsto ate: 1,998 ¥ yugnn My "y aA \
Slide 10: Howard County Is the Growth Engine of the Permian
HOWARD COUNTY IS THE GROWTH ENGINE OF THE PERMIAN Howard County: Highest Oil Content Drives Value Midland Basin Oil Production 5 yr CAGR by County |"! ‘om — idan i 809% i ant, ten 5 pon $ cm ; ve i os paves ° .« u 5 Mw » waite. rion, == tnnin) conden isc as es ae a pent mag: tg
Slide 11: Peer-Leading Capital Efficiency and Margins
PEER-LEADING CAPITAL EFFICIENCY AND MARGINS @vnicureak Capital efficiency = Continuous capital improvement ~ Pad development ~ Longer laterals ~ Service company relationships Ongoing operational improvements 00 Ha F225) a compet ft) a Dring) a0 aes) captalcons 8/8) Operating Margin 345 = High oll cu
Slide 12: Historical Midland Basin Peer Benchmarking: Enverus Data
HISTORICAL MIDLAND BASIN PEER BENCHMARKING: ENVERUS DATA @nicupeak (it Eunyfe (Mbs/1000) Average % Oi ‘Average Breakeven (5/861, 20:1) Average Lateral Length ft)
Slide 13: Eastern Howard County... The Next Big Oil Play
EASTERN HOWARD COUNTY... THE NEXT BIG OIL PLAY @vnicureak Eastern Howard County projected wells compare favorably with Western Howard County wells Westernvs. Eastern Howard County (Wolfeams ~ 10,000) Howard County Map UR Bs /.0009 ‘veer TMiciness 200-200" 200-250" ‘a. Neto Goss “2% ~a9% ‘Developed a
Slide 14: Midland Basin Peer Benchmarking
MIDLAND BASIN PEER BENCHMARKING @vnicureak hPeak well results outperform peers in the Midland Basin HighPeak Well Performance vs. Midland Peers! HighPeak Well Performance (First 18 Wells at Flat Top) ®! 300 300 Consistent reservoir quality results in strong well performance 250 20 z $20 é 2 z 2 a 5
Slide 15: CGA Type Curve Economics
CGA TYPE CURVE ECONOMICS @nicupeak WCA and LSBY type curves Overview = WolfcampAandLower Spraberry type curve wells selected from geologically simlarregion "= HighPeak has directly analogous landingzones andoil in pacetohighly developed partsof the play Higher oilcutand shallower decline lative to w
Slide 16: Key Results: Primary Targets
KEY RESULTS: PRIMARY TARGETS @vnicureak
Slide 17: Reservoir Quality Similar Across Howard County
RESERVOIR QUALITY SIMILAR ACROSS HOWARD COUNTY @vnicureak sw NE Key Reservoirs Comparison Across Howard County
Slide 18: Oil-Rich Mixed Lithology Rock Column
OIL-RICH MIXED LITHOLOGY ROCK COLUMN Spraberry and Wolfcamp sections comprised of mmixed-lithology, kerogen-rich reservoirs Interbedded limestones are consistently kerogen- rich, high-porosity reservoir intervals All rock types are hydrocarbon-bearing and contribute to production Jasmine Unit wells
Slide 19: Over a Decade of Inventory
OVER A DECADE OF INVENTORY @vnicureak —— TeveTaf Daneaton > EE Ee eS ee (ee opened se us ws a in in ° i fa) Flat Top Development Design Signal Peak Development Design Ji | Target | Wells persection2 ————F i Target [Wells per section®
Slide 20: Substantial Existing In-Basin Infrastructure with Premier Midstream & Marketing Solutions
SUBSTANTIAL EXISTING IN-BASIN INFRASTRUCTURE WITH PREMIER MIDSTREAM & MARKETING SOLUTIONS AVAILABLE Infrastructure Map “At present, HighPeak incurs trucking costs of"$1 50/81 but anticipates entering intoa transportation agreement that wil Substantialyreducetransportcosts going forvard Very atractiv
Slide 21: HighPeak's Commitment to ESG
HIGHPEAK’S COMMITMENT TO ESG Bui HighPeak Energy continues to keep ESG considerations at the forefront of operations Faring /Emisions Water isposal and Recycle © HighPeak is actively focused on eliminating air emissions through reducing their carbon footprint in the following ways: Decreasing truck
Slide 22: Investment Highlights
INVESTMENT HIGHLIGHTS jonal performance with I HIGHPEAK a 1g well results creates a new leading Permian company ‘Superior and Differentiated ERP Busines Model f= HighPeak’s 20236 oll eut 2F 85%-00% exceeds peer average of 73%) = WolfcampA type curve IRR of su00%" = Mult-year,multi-zone ‘operated inv
Slide 23: Appendix
APPENDIX
Slide 24: Key HighPeak Reservoirs Comparable to W. Howard County
KEY HIGHPEAK RESERVOIRS COMPARABLE TO W. HOWARD COUNTY Lower Spraberry OOIP
Slide 25: HighPeak Acreage Has Most Attractive Lower Wolfcamp
HIGHPEAK ACREAGE HAS MOST ATTRACTIVE LOWER WOLFCAMP p Band D shales have the| Wolfeamp D OOIP 25
Slide 26: Signal Peak Offsets Prolific Wolfcamp C Hutto Field
SIGNAL PEAK OFFSETS PROLIFIC WOLFCAMP C HUTTO FIELD "= The Wolfcamp C Hutto reservoir is a mixed lithology interval that has produced >4.5 million barrels of oil equivalent from 32 vertical wells = Aplanned 2021 horizontal well will establish productivity in this prolific interval away from current
Slide 27: Proven Track Record of Valuation Creation
PROVEN TRACK RECORD OF VALUATION CREATION Jack Hightower has experience developing assets for multiple Jack Hightower Selected Investment Returns @nicupeak classes of oil & gas investors Former CEO of two publicbusinesses, Titan Exploration & Pure Resources that aenerated >6.0x RO to Managed multipl
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Slide 29: SEC Pricing: CGA Year-End 2020 Proved Reserves
SEC PRICING: CGA YEAR-END 2020 PROVED RESERVES (?) @vnicureak (GGA Year-End 2020 Proved Reserves!) Net Proved Reserves Oi Gas ONGL Catal =o % — pva0 Reserve Category (omebiy—_(wavct) (bbl) (Moe) _—_—Total_—_—Liguids__—_(SMM) ‘Proved Developed Producing (POP) 4213 1,660, 440 4923 (22% 94% $73 Proved