HighPeak Energy (HPK) Q3 2025 earnings summary

Executive summary

• Q3 2025 production averaged 47.8 MBoe/d, with 66% oil and 83% liquids, consistent with the prior quarter; six wells drilled, nine turned in line, and 19 wells in progress as of September 30, 2025.

• Net loss of $18.3 million, or ($0.15) per diluted share, driven by lower commodity prices, decreased sales volumes, and a $25.4 million loss on extinguishment of debt; adjusted net income was $3.8 million, or $0.03 per diluted share.

• EBITDAX reached $139.9 million, or $1.01 per diluted share; free cash flow was $1.6 million, and capital expenditures totaled $86.6 million, down over 30% from Q2.

• Management changes included Michael Hollis appointed as CEO and Jason Edgeworth as Chairman; board restructured to enhance governance.

• Quarterly dividend of $0.04 per share declared, totaling $5 million for Q3, with continued focus on disciplined capital allocation and deleveraging.

Financial highlights

• Total operating revenues for Q3 2025 were $188.9 million, with EBITDAX per Boe at $30.94 (excluding derivatives); average realized prices: $65.63/Bbl oil, $17.40/Bbl NGL, $1.07/Mcf gas.

• Lease operating expenses averaged $6.57/Boe, with total cash costs at $11.97/Boe; DD&A expense per Boe decreased 21% to $22.87.

• Net cash provided by operating activities was $120.2 million; total assets at September 30, 2025, were $3.2 billion.

• Net debt stood at $1.16 billion, with $164.9 million in cash and $93.1 million in available credit; market capitalization was $839 million.

• EBITDAX for Q3 2025 was $139.9 million, down from $214.3 million in Q3 2024.

Outlook and guidance

• 2026 development program and rig count will be flexed based on oil price scenarios: below $60/bbl (operate within cash flow, less than two rigs), $60–$70/bbl (two rigs, maintain production), above $70/bbl (potential for moderate growth).

• Performance-based compensation and measurable metrics to be implemented in 2026; carryover inventory from Q4 2025 (16–18 DUCs) to support early 2026 production.

• Capital budget for 2025 is $375–405 million for drilling and completions, plus $40–50 million for infrastructure and $33–35 million for one-time projects.

• Company expects to fund capital expenditures with cash, operations, and available credit, maintaining flexibility in drilling activity.

• Ongoing evaluation of strategic alternatives, including a potential sale, with no set timetable for conclusion.