These risks and uncertainties include, among other things, the results of the strategic review being undertaken by the Company’s Board and the interest of prospective counterparties, the Company’s ability to realize the results contemplated by its 2025 guidance, volatility of commodity prices, political instability or armed conflicts in crude or natural gas producing regions such as the ongoing war between Russia and Ukraine or Israel and Hamas, product supply and demand, the impact of a widespread outbreak of an illness, such as the coronavirus disease pandemic, on global and U.S. economic activity, competition, OPEC+ policy decisions, potential new trade policies, such as tariffs, could adversely affect the Company’s operations, business and profitability, inflationary pressures on costs of oilfield goods, services and personnel, the ability to obtain environmental and other permits and the timing thereof, other government regulation or action, the ability to obtain approvals from third parties and negotiate agreements with third parties on mutually acceptable terms, litigation, the costs and results of drilling and operations, availability of equipment, services, resources and personnel required to perform the Company's drilling and operating activities, access to and availability of transportation, processing, fractionation, refining and storage facilities, HighPeak Energy's ability to replace reserves, implement its business plans or complete its development activities as scheduled, access to and cost of capital, the financial strength of counterparties to any credit facility and derivative contracts entered into by HighPeak Energy, if any, and purchasers of HighPeak Energy's oil, natural gas liquids and natural gas production, uncertainties about estimates of reserves, identification of drilling locations and the ability to add proved reserves in the future, the assumptions underlying forecasts, including forecasts of production, expenses, cash flow from sales of oil and gas and tax rates, quality of technical data, environmental and weather risks, including the possible impacts of climate change, cybersecurity risks and acts of war or terrorism. 2024 Current assets: Cash and cash equivalents $ 51,619 $ 86,649 Accounts receivable 78,356 85,242 Inventory 8,706 10,952 Prepaid expenses 8,301 4,587 Derivative instruments 5,620 7,582 Total current assets 152,602 195,012 Crude oil and natural gas properties, using the successful efforts method of accounting: Proved properties 4,140,881 3,959,545 Unproved properties 71,359 70,868 Accumulated depletion, depreciation and amortization (1,293,949 ) (1,184,684 ) Total crude oil and natural gas properties, net 2,918,291 2,845,729 Other property and equipment, net 3,141 3,201 Other noncurrent assets 19,047 19,346 Total assets $ 3,093,081 $ 3,063,288 Current liabilities: Current portion of long-term debt, net $ 120,000 $ 120,000 Accounts payable – trade 66,473 74,011 Accrued capital expenditures 53,240 35,170 Revenues and royalties payable 27,993 26,838 Other accrued liabilities 22,065 22,196 Derivative instruments 8,275 5,380 Operating leases 821 719 Advances from joint interest owners — 316 Total current liabilities 298,867 284,630 Noncurrent liabilities: Long-term debt, net 902,844 928,384 Deferred income taxes 242,337 232,398 Asset retirement obligations 15,058 14,750 Operating leases 581 670 Commitments and contingencies Stockholders’ equity Common stock 13 13 Additional paid-in capital 1,166,786 1,166,609 Retained earnings 466,595 435,834 Total stockholders’ equity 1,633,394 1,602,456 Total liabilities and stockholders’ equity $ 3,093,081 $ 3,063,288 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 36,335 $ 6,438 Adjustments to reconcile net income to net cash provided by operations: Provision for deferred income taxes 9,939 1,688 Loss on derivative instruments 7,927 53,043 Cash paid on settlement of derivative instruments (3,071 ) (5,148 ) Amortization of debt issuance costs 2,034 2,053 Amortization of discounts on long-term debt 2,426 2,453 Stock-based compensation expense 177 3,798 Accretion expense 244 239 Depletion, depreciation and amortization 109,325 130,850 Exploration and abandonment expense 4 274 Changes in operating assets and liabilities: Accounts receivable 6,886 (14,414 ) Prepaid expenses, inventory and other assets (1,314 ) (4,722 ) Accounts payable, accrued liabilities and other current liabilities (13,860 ) (5,113 ) Net cash provided by operating activities 157,052 171,439 CASH FLOWS FROM INVESTING ACTIVITIES: Additions to crude oil and natural gas properties (179,819 ) (147,698 ) Changes in working capital associated with crude oil and natural gas property additions 25,172 1,705 Acquisitions of crude oil and natural gas properties (2,517 ) (2,171 ) Proceeds from sales of properties 570 — Other property additions — (59 ) Net cash used in investing activities (156,594 ) (148,223 ) CASH FLOWS FROM FINANCING ACTIVITIES: Repayments under Term Loan Credit Agreement (30,000 ) (30,000 ) Dividends paid (4,957 ) (5,050 ) Dividend equivalents paid (531 ) (530 ) Repurchased shares under buyback program — (8,764 ) Debt issuance costs — (7 ) Net cash used in financing activities (35,488 ) (44,351 ) Net decrease in cash and cash equivalents (35,030 ) (21,135 ) Cash and cash equivalents, beginning of period 86,649 194,515 Cash and cash equivalents, end of period $ 51,619 $ 173,380
Author: HighPeak Energy, Inc.
Published at: 2025-05-12 22:55:00
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