HighPeak Energy, Inc. (HPK) delivered its Q4 and full-year 2025 results, highlighting a shift toward capital discipline amid market volatility. The company reported full-year production of 48,300 barrels of oil equivalent per day (Boe/d), with 68% crude oil, while Q4 averaged 43,700 Boe/d at 64% oil.
Financial Performance
Full-year operating revenues reached $863 million, down from $1.12 billion in 2024. Net income stood at $19 million, or $0.14 per diluted share. In Q4, the company posted a net loss of $25.2 million, or $0.21 per share. EBITDAX totaled $607.1 million for the year ($4.40 per share) and $113.9 million in Q4 ($0.82 per share).
Capital expenditures amounted to $511.8 million annually and $119.9 million in Q4. Realized crude oil prices averaged $65.43 per barrel for the year (excluding derivatives), dropping to $58.95 in Q4. Cash costs remained efficient at $15.33 per Boe full-year and $14.45 in Q4.
Operational Highlights
HighPeak drilled 50 gross horizontal wells (49.8 net) and brought 49 online (48.7 net) during 2025. Q4 saw 15 gross wells drilled and 13 turned in line. As of December 31, 2025, 23 gross wells remained in progress. The company released one drilling rig in late January 2026, transitioning to one rig and one completion crew.
Current production exceeds 46,000 Boe/d, surpassing initial 2026 expectations despite winter impacts.
2026 Guidance and Strategy
HighPeak unveiled a conservative 2026 plan, slashing capital expenditures nearly 50% to $255-285 million. The program targets 28-30 wells drilled and 36-38 turned in line using one rig and one crew. Production guidance sits at 41,000-44,000 Boe/d, with 67-68% oil.
Unit costs project lease operating expenses at $8.50-8.90 per Boe, gathering and transport at $4.25-4.50, and G&A at $1.50-1.75. The plan ensures cash flow neutrality down to mid-$50s oil prices.
Dividend payments cease in Q1 2026, freeing $20-25 million in liquidity. Incremental free cash flow prioritizes debt reduction on the $1.13 billion term loan.
CEO Michael Hollis Comments
“Our priority is clear: protect profitability and maximize free cash flow, not chase production volumes,” Hollis stated. “Any incremental free cash flow generated in a stronger commodity price environment will be directed toward accelerating debt reduction.”
He emphasized inventory depth, with over multiple decades of high-return locations, and a focus on base production optimization.
Reserves and Hedging
Year-end proved reserves totaled 174 million Boe (66% oil), with PV-10 value of $2.1 billion. Proved developed reserves comprise 96 million Boe.
An expanded hedging program covers 2026-2027, including costless collars, swaps, and basis protection on crude oil and natural gas to lock in pricing.
The strategy underscores resilience, preserving premium inventory for sustained value amid geopolitical tensions and price swings.
