HighPeak Energy Inc (HPK) Q1 2025 Earnings Call Highlights: Strong Production and Strategic ...

GuruFocus News

Wed, May 14, 2025, 12:14 AM 3 min read

Release Date: May 13, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• HighPeak Energy Inc (NASDAQ:HPK) reported a beardown commencement to 2025 with accumulation averaging implicit 53,000 BOEs a day, exceeding guidance and statement estimates.

• The institution achieved a 10% summation successful IEA procreation compared to the 4th quarter, maintaining steadfast currency margins.

• Operational efficiencies person improved significantly, with spud to spud timing reduced from 14 days to 11 days, allowing for much wells to beryllium drilled annually.

• HighPeak Energy Inc (NASDAQ:HPK) successfully implemented infrastructure projects wrong budget, supporting peer-leading margins and operational flexibility.

• The institution has realized a 400% reserve replacement ratio implicit the past 3 years, driven astir exclusively by integrated growth.

• The existent macro situation has led HighPeak Energy Inc (NASDAQ:HPK) to temporarily driblet 1 of its 2 rigs for 4 months, indicating caution successful expanding drilling activities.

• Tariffs person accrued the outgo of OCTG products by astir 3%, impacting wide AFE costs.

• Despite operational efficiencies, the institution faces a volatile marketplace environment, necessitating a blimpish attack to improvement plans.

• The determination to accelerate the completion of a 4-well pad successful Q1 led to higher CapEx spend, accounting for 38% of the full-year budget.

• HighPeak Energy Inc (NASDAQ:HPK) acknowledges the imaginable request to modify its improvement programme if marketplace conditions worsen oregon commodity prices weaken further.

• Warning! GuruFocus has detected 6 Warning Signs with HPK.

Q: What interaction bash you expect from implementing simul frac, and however volition it impact DNC costs? A: (Michael Hollis, President) Simul frac volition importantly trim the clip and outgo of completing wells. Typically, fracking 4 wells takes 25-28 days, but with simul frac, it volition instrumentality 11-14 days. This results successful astir $250,000 savings per well, oregon $1 cardinal for a four-well pad. Additionally, it reduces the clip accumulation is impacted by adjacent fracs, allowing wells to travel online faster and expanding accumulation efficiency.

Q: Can you supply an update connected the good results successful Borden County and however they comparison to different areas? A: (Michael Hollis, President) We are precise pleased with the show successful Borden County. The caller wells are performing 20% amended than past years wells, with 3 antithetic zones showing beardown results. We are besides preparing to instrumentality our archetypal simul frac pad successful this area, which should further heighten productivity.