Highpeak Energy, Inc. · NASDAQ:HPK
Highpeak Energy — Q1 2025 Earnings Presentation
17 slides from Highpeak Energy's earnings presentation, May 13, 2025
Slide 1: Investor Presentation May 2025
INVESTOR PRESENTATION MAY 2025 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 connection with this document, the words “believes,” “plans,” “expects,” “anticip
Slide 3: Disclaimer (Cont'd)
Disclaimer (Cont’d) USE OF NON-GAAP FINANCIAL MEASURES • This presentation may include non-GAAP financial measures, including EBITDAX and adjusted EBITDAX, free cash flow, unlevered free cash flow, EBITDAX per Boe and unhedged EBITDAX per Boe, and PV-10. HighPeak believes these non-GAAP measures are
Slide 4: Company Overview
Company Overview Midland Basin Pure Play • 53 MBoe/D $197.3 MM Q1 Production Q1 EBITDAX1 MIDLAND BASIN >143,000 >1,000 $41.90 Net Acres Sub $50 Breakeven Q1 Unhedged Locations EBITDAX/BOE Narrowing & Raising Production Guidance 48–50.5 MBoe/D 1. EBITDAX is a non-GAAP financial measure. See appendix
Slide 5: Q1 2025 Operational Efficiencies
Q1 2025 Operational Efficiencies Spud to Spud3 2025 Guided Pace 2025 Q1 Achieved Pace ~3 fewer days/well Recent activity demonstrating 26% 14 days 11 days increase in average daily footage drilled per rig1 Continued improvements in drilling efficiencies resulting in more wells drilled per rig Output
Slide 6: Q1 2025 Budget Update
Q1 2025 Budget Update Outsized Portion of 2025 Development Activity Accomplished in Q1 • ▪ Spudded 20 wells 2025 Total Capital Guide ▪ Rig released & completed 16 wells (vs 12 $448 - 490 MM 01 initially planned) ▪ Costs in line with 2025 expectations 100% ▪ 2025 Infrastructure projects were Q1 weigh
Slide 7: Go Forward 2025 Development Plan
Go Forward 2025 Development Plan Modifying Drilling Program to Remain Within 2025 Guided Activity Levels • Revised Rig Plan ▪ Dropping one rig from May J F M A through August ▪ Planned return of 2nd rig in M J J A September ▪ No change to 2025 guided TILs and Capex budget S O N D +15 wells/yr Wells
Slide 8: D,C&E Costs Update
D,C&E Costs Update HPK Starting to See Costs Softening in Certain Large Ticket Items Drilling Rig Drilling DR OCTG/Casing ILL ING Equip. / Rentals IONS Stimulation Completions ET L Equip. / Rentals P M CO Artificial Lift Fuel Expect low to mid-single digit decreases in overall costs moving forward C
Slide 9: Profitable Reserve Growth and Development
Profitable Reserve Growth and Development •3-Year Reserve Replacement Ratio 1 ◼3-year reserve replacement ratio of >400% driven by drill bit reserve additions ◼HPK is one of few E&P companies able to deliver profitable development at current oil prices Profitable development @ $60/Bbl (WTI)2,3 • Rea
Slide 10: Ahead of the Curve
Ahead of the Curve HighPeak has consistently been ahead of the industry due to extensive basin experience and specialized geologic research Enverus PF2024 Outline1 355 gross operated wells Enverus PF2025 Outline1 drilled ~80 million BOEs produced2 >4.3 million lateral feet drilled Targeting 6 differ
Slide 11: Positioned for Value Creation
Positioned for Value Creation • ✓ Large contiguous acreage position with oil-weighted, multi-zone inventory >143,000 net acres >1,000 sub $50/Bbl ✓ Long runway of high-value inventory relative to peers break-even in primary zones1 $41.90/BOE ✓ Peer leading margins driven by operational efficiency an
Slide 12: Appendix
HIGHPEAK ENERGY, INC. Appendix 12
Slide 13: HighPeak Well Activity
HighPeak Well Activity Rig Released In Progress Turned in Line Wells 1Q25 As of 3/31/2025 1Q25 Gross Net Gross Net Gross Net OP 16 16.0 OP 28 28.0 OP 13 12.9 Non-Op 0 0.0 Non-Op 0 0.0 Non-Op 0 0.0 Total 16 16.0 Total 28 28.0 Total 13 12.9 SWD 1 1.0 SWD 2 2.0 SWD 0 0.0 . 13
Slide 14: Hedge Profile
Hedge Profile Hedge Profile Summary OIL SWAPS OIL PUTS OIL COLLARS HENRY HUB GAS SWAP VOL (Mbbl) Price VOL (Mbbl) Price VOL (Mbbl) Low High Daily (bopd) VOL (BBtu) Price 2025/Q2 501 $76.37 819 $65.78 727 $64.38 $88.55 2,730 $4.43 2025/Q3 276 $75.85 828 $65.78 644 $65.00 $90.08 2,760 $4.43 2025/Q4 46
Slide 15: Q1 2025 Summary
Q1 2025 Summary Production 1Q’25 Earnings 1Q’25 Total sales volumes (MBoe) 4,781.5 Net Income ($MM) $36.3 Total daily sales volumes (MBoe/d) 53.1 Earnings Per Diluted Share $0.26 Oil percentage 72% EBITDAX ($MM) $197.3 EBITDAX Per Diluted Share $1.40 Liquids percentage 86% Adjusted Net Income ($MM)
Slide 16: Non-GAAP Financial Measures Reconciliations
Non-GAAP Financial Measures Reconciliations Reconciliation of Net Income to EBITDAX • (in thousands) Quarters Ended Q1'25 Q4'24 Q3'24 Q2'24 Q1'24 Net income $36,335 $8,981 $49,933 $29,717 $6,438 Interest expense $36,988 $39,508 $42,579 $42,991 $43,634 Interest and other income ($810) ($1,721) ($2,17
Slide 17: Non-GAAP Financial Measures Reconciliations
Non-GAAP Financial Measures Reconciliations Net Debt Free Cash Flow • ($mm) As of (in thousands) Quarters Ended 31-Mar-25 Q1'25 Q4'24 Q3'24 Q2'24 Q1'24 Long-term debt $ 1,050 Net cash provided by operations $157,052 $139,518 $177,103 $202,331 $171,439 Cash and cash equivalents (52) Add back: net cha