HighPeak Energy (HPK) Q1 2025 earnings summary

Executive summary

• Q1 2025 production averaged 53,128 Boe/d, up 6–7% sequentially, with 72% oil and 86% liquids, exceeding guidance and consensus.

• Net income for Q1 2025 was $36.3 million ($0.26 per diluted share), with adjusted net income of $42.7 million ($0.31 per diluted share), and free cash flow of $10.7 million.

• EBITDAX reached $197.3 million ($41.90/Boe), up 10% sequentially, reflecting peer-leading margins and operational efficiencies.

• Operational efficiencies, including faster spud-to-spud timing and increased drilling pace, led to more wells drilled and completed than planned.

• Reduced long-term debt by $30 million and paid $0.04/share in dividends, maintaining a strong balance sheet.

Financial highlights

• Q1 2025 operating revenues were $257.4 million, with crude oil sales of $246.4 million and realized oil price at $71.64/Bbl.

• Lease operating expenses averaged $6.61/Boe, down 3% sequentially.

• Q1 capital expenditures totaled $179.8 million, representing 38% of the full-year budget.

• Cash and cash equivalents at quarter-end were $51.6 million, with long-term debt at $902.8 million.

• Free cash flow remained positive despite front-loaded CapEx and accelerated completions.

Outlook and guidance

• 2025 production guidance was raised and narrowed to 48,000–50,500 Boe/d, with the midpoint increased.

• Full-year capex guidance remains $448–490 million, with quarterly capex expected to be lower for the remainder of 2025.

• Plans to maintain original 2025 activity levels and capital budget, with flexibility to adjust rig count as needed.

• Infrastructure investment in 2025 is expected to reduce maintenance CapEx and increase free cash flow in future years.

• The company expects to fund capital expenditures with cash on hand, operating cash flow, and available credit.