**HighPeak Energy, Inc. Reports Fiscal Year 2025 Results**

HighPeak Energy, Inc. (Nasdaq: HPK) reported net income of $19.0 million, or $0.14 per diluted share, for the year ended December 31, 2025, a significant decrease compared to the $95.1 million reported for the previous fiscal year. The company's total operating revenues were $863.4 million, down from $1.12 billion in 2024. This decline was primarily attributed to a 20% decrease in average realized commodity prices per barrel of oil equivalent (Boe) and a 3% decrease in average daily sales volumes, which totaled 48,297 Boe per day. The decrease in sales volumes was due to natural decline and a decrease in the Company’s drilling and completion activities with the lower commodity price environment.

The company experienced a $91.4 million increase in its derivative instruments gain, moving from a loss of $46.5 million in 2024 to a gain of $44.9 million in 2025, largely due to declining commodity prices. Depletion, depreciation, and amortization (DD&A) expenses decreased by $79.0 million, reflecting a lower DD&A rate of $23.93 per Boe compared to $27.39 per Boe in the prior year, and a decrease in sales volumes. Production and ad valorem taxes also decreased by $22.5 million, primarily due to lower operating revenues and a $10.0 million natural gas severance tax refund.

Key operational developments included a focus on multi-well pad development to reduce drilling and completion cycle times. The company drilled 27 gross (26.8 net) productive development wells and 23 gross (23.0 net) productive exploratory/extension wells during the year. Capital expenditures for development totaled $366.1 million, while exploration costs reached $145.7 million. As of December 31, 2025, HighPeak Energy's proved reserves were estimated at 173.9 million Boe, with 83% classified as crude oil and natural gas liquids (NGLs) and 17% as natural gas.

Looking ahead, HighPeak Energy anticipates capital expenditures between $255 million and $285 million for 2026, excluding acquisitions. The company expects to fund these expenditures through a combination of cash on hand, cash generated from operations, and potential borrowings under its Senior Credit Facility Agreement. The company is also evaluating strategic alternatives, including a possible sale of the business. The company expects to average one (1) drilling rig and one (1) frac crew during 2026 under our current development plan, depending on market conditions.

About HighPeak Energy, Inc.

HighPeak Energy, Inc. is an independent oil and natural gas exploration and production company focused on the Permian Basin's Midland region in Texas. It develops and operates horizontal wells in the Wolfcamp and Spraberry formations, utilizing modern drilling and hydraulic fracturing techniques. The company owns and manages extensive acreage, producing hydrocarbons for domestic markets with a competitive edge in efficient, high-quality resource development.

This description was generated via AI from an annual report. Updated 8 months ago.

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