HighPeak Energy, Inc. (NASDAQ: HPK) is an independent crude oil and natural gas company based in Fort Worth, Texas. The company focuses on the acquisition, development, exploration, and exploitation of unconventional crude oil and natural gas reserves primarily in the Midland Basin of West Texas.

HighPeak reported a rise in its financial performance for the fourth quarter of 2024. Production averaged approximately 50,216 barrels of oil equivalent per day (Boe/d), representing a 10% year-over-year increase. The company’s total sales volumes for 2024 also averaged about 50,000 Boe/d, reflecting a 10% increase from 2023. Additionally, HighPeak’s estimated proved reserves at year-end 2024 stood at 199 million Boe, a 29% increase compared to year-end 2023.

For the fourth quarter of 2024, net income was $9 million, or $0.06 per diluted share, with EBITDAX reaching $179.4 million, or $1.27 per diluted share. The adjusted net income for the same quarter was $28.2 million, or $0.19 per diluted share. For the full year, net income amounted to $95.1 million, equivalent to $0.67 per diluted share, while adjusted net income for 2024 reached $144.8 million, or $1.05 per diluted share.

HighPeak showed significant operational efficiency in 2024, with lease operating expenses averaging $7.23 per Boe, which was a 17% decrease year-over-year. The company’s capital expenditures for the fourth quarter totaled $152.5 million, which was influenced by efficiency gains realized during drilling and completion activities. Throughout 2024, HighPeak reduced its long-term debt by $120 million and repurchased approximately 2.4 million shares of stock, with a total shareholder-friendly initiative valued at about $177 million, including approximately $22 million in dividends paid.

Looking ahead to 2025, HighPeak has provided guidance indicating an expected average production rate of between 47,000 and 50,500 Boe/d. The capital expenditure budget for the year is projected to be between $415 million and $455 million, including dedicated infrastructure projects from $40 million to $50 million. The company anticipates lease operating expenses will range from $7.00 to $7.50 per Boe, with general and administrative expenses between $1.25 and $1.35 per Boe.

HighPeak’s 2024 performance reflects its strategic focus on corporate efficiency, maintaining steady production volumes while reducing capital expenditures. The company’s overall financial health is bolstered by its reduced debt levels and ongoing efforts to optimize its capital structure, which are projected to enhance its levered free cash flow moving forward.