HighPeak Energy, Inc. Q4 FY2025 earnings call

Management focuses on protecting profitability, maximizing cash flow, and strengthening the business foundation. Right-sized capital budget, expanded hedging program, suspended dividend. 2026 development plan is conservative with one rig and one completion crew, aiming for 30 wells drilled and 36 - 38 wells online. Focus on production optimization like well workovers, artificial lift enhancements. Operational updates on Flat Top, Northeast Flat Top, Middle Spraberry, and Signal Peak areas.

Right-sized annual capital budget to stay within cash flow. Expanded hedging program. Suspended dividend to increase liquidity. 2026 development plan to drill ~30 wells and bring 36 - 38 wells online, operate within cash flow even in mid - upper $50s oil prices, maximize free cash flow for debt reduction, and maintain cost discipline.

Q: Add color on cost reduction and production optimization efforts.

A: Optimized drilling and completion, completion chemical program, perforation schemes, production base optimization like lower pumps, artificial lift changes.

Q: Split of TILs across development areas.

A: ~70% capital in Flat Top, ~30% in Signal Peak, ~90+% in Wolfcamp A/Lower Spraberry co - development, ~5% - 8% in Middle Spraberry. No new drilling in Northeast Flat Top area in 2026.

Q: Corporate decline curve and capital efficiency.

A: Corporate decline rate was mid - 40% in 2024, ~38% in 2025, expected to be ~36% in 2026 end. CapEx for maintenance decreases as corporate decline rate drops.

Q: Term loan amortization and debt acceleration.

A: Can pay down term loan at par, will accelerate debt reduction with additional free cash flow.

Q: Water handling and CapEx efficiency.

A: Water system is efficient, CapEx has been decreasing, will continue to be more efficient.

Q: Share distributions.

A: Extended partnership distribution for an additional year, can distribute throughout 2026 or start in early 2027