HighPeak Energy Reports Q2 2025 Financial Results with $26.2M Net Income

HighPeak Energy, Inc. reported its financial results for the second quarter of 2025, revealing a net income of $26.2 million, or $0.19 per diluted share, compared to $29.7 million, or $0.21 per diluted share, in the same period of 2024. The decrease in net income was primarily attributed to a $74.9 million decline in revenues from crude oil, NGL, and natural gas sales, driven by a 27% drop in average realized commodity prices per barrel of oil equivalent (Boe). Despite this, the company experienced a slight increase in daily sales volumes, which averaged 48,649 Boepd, up from 48,531 Boepd in the prior year, largely due to increased NGL and natural gas sales volumes.

In terms of operational metrics, HighPeak's total operating revenues for the second quarter of 2025 were $200.4 million, down from $275.3 million in the same quarter of 2024. The company’s crude oil sales accounted for $196.7 million, while NGL and natural gas sales contributed $3.7 million. The total operating costs and expenses for the quarter were $154.5 million, resulting in an operating income of $43.4 million. The company also reported a significant gain of $26.4 million from derivative instruments, a notable improvement from a loss of $2.7 million in the previous year.

HighPeak Energy has made strategic moves to enhance its operational capacity, including the acquisition of additional undeveloped crude oil and natural gas leases at a cost of $3.6 million during the first half of 2025. The company also divested non-core non-operated working interests for proceeds of $570,000. As of June 30, 2025, HighPeak operated approximately 98% of its net acreage, which spans about 154,858 gross acres in the Permian Basin, primarily in Howard and Borden Counties, Texas.

The company’s financial position remains stable, with total assets amounting to $3.09 billion as of June 30, 2025, a slight increase from $3.06 billion at the end of 2024. HighPeak's long-term debt stood at $1.03 billion, reflecting a recent amendment to its Term Loan Credit Agreement that extended the maturity to September 2028 and provided additional liquidity. The company also declared a quarterly dividend of $0.04 per share, totaling approximately $5 million, which is consistent with its previous dividend payments.

Looking ahead, HighPeak Energy anticipates continued volatility in commodity prices, influenced by various geopolitical factors and market conditions. The company plans to maintain flexibility in its capital expenditures, with a budget of approximately $375 to $405 million for 2025, focusing on drilling, completion, and infrastructure development. The management remains cautious about the potential impacts of inflation, trade policies, and geopolitical tensions on its operations and financial performance.