HighPeak Energy (HPK) Q2 2025 earnings summary

Executive summary

• Q2 2025 production averaged 48.6 MBoe/d, with 70% oil and 85% liquids, reflecting a strong oil-weighted portfolio and flat year-over-year output after reducing to one rig in May.

• Net income for Q2 2025 was $26.2 million ($0.19 per diluted share), with adjusted net income at $13.9 million and EBITDAX of $156 million ($1.12 per diluted share).

• Capital expenditures for Q2 2025 were $125.4 million, down over 30% from Q1 2025, reflecting disciplined capital deployment.

• Maintained robust margins and operational efficiencies, including simulfrac completions saving ~$400,000 per well and using 80% recycled fluids.

• Quarterly dividend of $0.04 per share declared, payable in September 2025.

Financial highlights

• Q2 2025 operating revenues were $200.4 million, down from $275.3 million in Q2 2024, with realized oil pricing at $63.74/Bbl.

• EBITDAX for Q2 2025 was $156 million, with EBITDAX per Boe at $33.58 and cash costs at $11.69 per Boe.

• CapEx for Q2 2025 was $125.4 million, with 13 wells released and 14 turned in line.

• Net debt as of June 30, 2025, was $1.03 billion, with a net debt/TTM EBITDAX ratio of 1.4x and liquidity of $268 million.

• Free cash flow for Q2 2025 was negative $42.7 million.

Outlook and guidance

• 2025 capital budget set at $375–$405 million for drilling/completion, $40–$50 million for field infrastructure, and $33–$35 million for one-time infrastructure expenditures.

• Plans to average 1–2 drilling rigs and 1 frac crew for the remainder of 2025, maintaining flexibility in response to market conditions.

• Significant portion of production hedged through March 2027 to mitigate commodity price risk.

• Positioned for sustainable long-term success with a large, contiguous acreage base and over 1,000 sub-$50/Bbl breakeven locations.

• Yearly production guidance remains unchanged; no quarterly guidance provided due to production lumpiness.