HighPeak Energy, Inc. is a publicly traded independent crude oil and natural gas company based in Fort Worth, Texas. The firm focuses on the acquisition, development, exploration, and exploitation of unconventional crude oil and natural gas reserves in the Midland Basin of West Texas.

For the first quarter of 2025, HighPeak showed a solid performance with continued growth, achieving a sales volume average of approximately 53.1 thousand barrels of oil equivalent per day (MBoe/d), a 6% increase compared to the prior fourth quarter. The company reported a net income of $36.3 million, translating to $0.26 per diluted share. Adjusted net income reached $42.7 million, or $0.31 per diluted share. The company’s EBITDAX was reported at $197.3 million, equating to $1.40 per diluted share.

HighPeak’s lease operating expenses averaged $6.61 per Boe, down 3% from the previous quarter. During the quarter, the company managed to generate free cash flow of $10.7 million and reduced long-term debt by $30 million. The first quarter 2025 capital expenditures totaled $179.8 million, aligned with the company’s annual guidance parameters.

In terms of production guidance, HighPeak revised its 2025 target, now set at 48,000 to 50,500 Boe/d. This range reflects an increased midpoint owing to the strong production results in the first quarter. The operational update from the company highlighted the successful implementation of drilling efficiencies, with the time taken to drill reduced by over 20%, enabling HighPeak to drill four additional wells in the quarter compared to prior plans.

First quarter average realized prices were $71.64 per barrel of crude oil, $24.21 per barrel of NGL, and $2.34 per Mcf of natural gas, resulting in an overall realized price of $53.84 per Boe. The overall cash costs for the first quarter were reported at $11.94 per Boe.

The company is adjusting its development program due to current global economic uncertainties and has decided to lay down one rig from May through August. Despite this, HighPeak anticipates completing the same number of wells this year as initially guided, owing to the efficiencies achieved. The current market conditions have increased costs for tubular goods, but overall well costs are decreasing, reflecting a 2% decline in well costs, excluding the impact of rising prices for tubular goods.

HighPeak’s drilling operations during the first quarter utilized an average of two drilling rigs and one fracture crew, resulting in the completion of 13 gross producing wells. The company reported a work-in-progress well count of 28 by the end of the quarter.

The reported financial results signify an ongoing stability for HighPeak Energy, showcasing solid operational practices and adaptability in a fluctuating market condition.