Highpeak Energy, Inc. · NASDAQ:HPK
Highpeak Energy — Q3 2021 Earnings Presentation
18 slides from Highpeak Energy's earnings presentation, Nov 9, 2021
Slide 1: 3Q21 Presentation
3Q21 Presentation November 2021
Slide 2: Disclaimer
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Slide 3: Disclaimer
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Slide 4: HighPeak Energy Key Highlights
HIGHPEAK ENERGY Norther Mialand Basin Pue-Play Positioned for EMicient Oil: Weighted Value Generation KeyHighlights @nicHreak ‘Acreage Position and Selected Offset Operators Production ~ Averaged~ 8.2 MB0e/d in 3021; 85% oil and 94% liquids ~ Average production ince mid-October of~ 15.5 MBoe/d ~ 2°%
Slide 5: Production Growth
PRODUCTION GROWTH KeyEvents © com:ss-priling halted * Dalig and ang dring 2020 deterred die toll pees 1 Production ramped steady from HPs Inia one ig development program 1 Winter stom Uli “Sues © ortsettracingbexins 1 Facing activity ding 03/2 cased Sigwhcent ose prediction tobe ‘ory shia T0000 tod
Slide 6: Q3 2021 Summary
Q3 2021 SUMMARY @ncHeeak Earnings Q3 2021 ‘Total produ 'Net income (SMM) ‘Total production (MBoe/d) : __ GAAP Earnings (per diluted share) 08 Oil percentage “EBITDAX ($MM) $333 ‘Liquids percentage 94%, __ EBITDAX (per diluted share) $0.33. Oil per Bb | Capex excluding acquisitions (SMM) $64.6 Latera
Slide 7: 2021 Margins
2021 MARGINS: EBITDA margins for the 9 months ended 9/30/21 ($/Boe}"? @dnicHreak LOE ($/80e) ' Strong oil weighted margins ' Positioned to accelerate margin growth with LOE reduction initiatives, and dilution of fixed costs son 1 Transitory increase in LOE in 3/21 — Additional LOE from new wells pri
Slide 8: Operations Update
OPERATIONS UPDATE @dnicHreak Flat Top Signal Peak ne ' Manufacturing mode
Slide 9: Capital Efficiency Drives Returns
CAPITAL EFFICIENCY DRIVES RETURNS @dnicHreak Capital Efficiency Capital Efficiency Through 43 Wells Drilled'®) » Continuous capital improvement Eee ceasdeaboneed eS = : | ~ Longer laterals oe ° a ~ Service company relationships eo — 2 ~ Ongoing operational = aa ‘ improvements = : : ~ D&C Post-Combin
Slide 10: 2021 ESG Highlights
2021 ESG HIGHLIGHTS @dnicHreak Environmental Social Governance Increasing use of fc 1s >30% ‘ the Recycled produced Women Environmental fluids Partnership ‘first ~ Majority of Board is 184 st tm A sm. S{t peomerees ° Progress incidents controlled company = HighPeak substation Flexible work on track
Slide 11: 2022 Preliminary Rig Outlook
2022 PRELIMINARY 4 RIG OUTLOOK Production ‘erage at (Boe/é) ‘EutateBoe/6) ‘capex malons) Capital Expenditures, 0.CE8 F ‘Capital Expenditures, Lare/nta/Other Copia Expenditures, Total Unit Measures ($/80e) ease Operating Expenses Production Taxes ‘General & Administrative Total Gh Costs ‘cross Operat
Slide 12: Rapid Proved Developed Reserve Growth
RAPID PROVED DEVELOPED RESERVE GROWTH Overview = PV10 for YE20 proved developed (0) reserves value increased from $293mm to $390mm due to higher prices = 2021 development increased PD Pv10 by ~$330mm by adding 33, ‘gross horizontal wells through Q3/2a @dnicHreak Significant increase byadding 100 wel
Slide 13: Liquidity/Financial Overview
LIQUIDITY/FINANCIAL OVERVIEW | @\nicHPeak Overview Credit Facility Utilization 1 Substantial increase in credit facility (RBL) to $195mm from continued se productiongrowthandexpansion ot §200 bank group oso 1 aAvaliable ROL * Undraw capacty of approximately | MIRBL Drawn $100mm os 0 ‘= Recently comp
Slide 14: Hedges
HEDGES") Summary ee 28000 ‘= Average volumes of ~4,100 Bo/d eiounijot hedged in 2022 at average price of Seer $65.80/bbI bead Hedged volumes reflect < 20% of Unhedged projected 2022 oil volumes Me Development g Volumes 2 6000 g Gurent Production = “15.500 Boe/d (89% ol 5 seasons abate ahenid Boe 12,
Slide 15: HighPeak Is a Growth Story
HIGHPEAK IS A GROWTH STORY. rAN HIGHPEAK | Responsible Growth — continuing etcent production growth = [Ee-] _ Strong Balance Sheet — increased liquidity from RBL increase and equity offering Operational Excellence — Focus on capital and operational efficiency bea Attractive Product Mix — >90% liquid
Slide 16: Contact Information
Slide 17: Appendix
Appendix
Slide 18: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Reconciliation of Net Income to EBITDAX Bu Calculation of Net Debt IPEAK ‘Three Months Ended fin thousands) 20sept21 Net income S$ 8,047 iaretens o7 Income tax expense 2,145 Dest deorediaton and a7 Accretion on asset retirement obligation 44 Exploration and abandonment expen