HighPeak Energy (HPK) Q4 2024 earnings summary

Executive summary

• 2024 production averaged 50 MBoe/d, a 10% year-over-year increase, with Q1'25 to date exceeding 52 MBoe/d.

• Year-end 2024 proved reserves rose 29% to 199 MMBoe, with proved developed reserves up 36% to 108 MMBoe and a PV-10 of $3.39 billion.

• Reduced long-term debt by $120 million, paid $0.16/share in dividends, and repurchased 2.4 million shares in 2024.

• EBITDAX for FY'24 was $842.9 million; net income was $95.1 million, with adjusted net income of $144.8 million.

• Maintained disciplined operations, focusing on cost reductions and capital efficiency.

Financial highlights

• Lease operating expenses decreased 17% year-over-year to $6.81/Boe; capex was $604.3 million, down 40% from prior year.

• Q4'24 net income was $9.0 million ($0.06/share); Q4 EBITDAX was $179.4 million.

• 2024 operating cash flow was $690.4 million; year-end cash $86.6 million.

• Ended 2024 with net debt/EBITDAX of 1.18x and net debt of $993 million.

• 2024 reserve replacement ratio was 345%.

Outlook and guidance

• 2025 production guidance: 47,000–50,500 Boe/d; capex $448–$490 million, with 30–35% of capex in Q1'25.

• Capital expenditures to be reduced by an additional 20% in 2025, with further reductions anticipated in 2026.

• Plan to average 2 drilling rigs and 1 frac crew, focusing on high-return zones and capital discipline.

• One-time infrastructure projects in 1H'25 to expand gas gathering and electric distribution.

• 2025 lease operating expenses expected at $7.00–$7.50/Boe; G&A at $1.25–$1.35/Boe.