HighPeak Energy (HPK) investor relations material

Strategic growth and operational transition

• Production has grown from zero to over 43,000 BOE/day in five years through organic development and infrastructure buildout.

• Current focus is on maintaining production in the mid-40,000 BOE/day range with maintenance CapEx of $260–$270 million annually for the next few years.

• Corporate decline rate has dropped to 39% and is expected to decrease by 1.5% annually with continued maintenance CapEx.

• Production optimization, including artificial lift and chemical treatments, has led to a 10% quarter-to-date production improvement.

• Infrastructure is now largely complete, supporting future efficiency and lower ongoing capital needs.

Capital allocation and financial discipline

• Free cash flow is prioritized for accelerated debt reduction, especially with elevated oil prices.

• Maintenance CapEx is expected to remain stable, with minimal infrastructure spending required after 2026.

• Net debt stood at $1 billion at year-end 2025, with term loan amortization resuming in Q3 2026 at $30 million per quarter.

• The company can pay down the term loan at par, with no prepayment penalties, providing flexibility.

• Every $125 million of debt reduction is estimated to add about $1 per share in equity value.

Inventory, drilling, and future outlook

• Over 650 drilling locations identified in Wolfcamp A and Lower Spraberry, with decades of inventory at current drilling rates.

• Middle Spraberry inventory is being de-risked, with one delineation well planned for 2026.

• Infrastructure is sized for significant future growth, but current plans focus on disciplined development and debt paydown.

• The company aims to maintain operational discipline and transfer value from debt to equity holders over the next several years.

• Management emphasizes accountability to shareholders for executing the stated plan.