1Q2 Results: Starting to Scale High-Margin Growth
|52 Week Range||$4.20-$21.82|
|Avg. Daily Vol. (30 day)||69,632|
|Shares Out (MM)||92.7|
|Market Cap (MM)||$836.90|
|Insiders Own %||90%|
|Short Int./% of Float||67.7k / 1.7%|
|Debt to Equity||0%|
|Fiscal Year End||December|
- Total 1Q21 production averaged 5,290 BOE/d (~90% oil), a 59% increase from 4Q20.
- During the first half of May, production averaged approximately 8,300 BOE/d, 57% above 1Q output.
- Full-year average production outlook remains 10,500 – 12,000 BOE/d with an estimated 2021 exit rate of 12,000 – 14,000 BOE/d. First quarter results provide an early indication of HighPeak’s growth potential.
- Growth outlook is underpinned by HighPeak’s Lower Spraberry and Wolfcamp A development in its Flat Top area, a contiguous ~33,000-acre position in northeast Howard County.
- HighPeak’s first two wells targeting the Wolfcamp D and Wolfcamp C zones on the contiguous ~18,000-acre Signal Peak acreage block are flowing back. The Wolfcamp D well has begun to cut oil faster than any other well the company has drilled.
- During 1Q21, HighPeak completed five Wolfcamp A wells and one Lower Spraberry well in Flat Top. Currently four wells are being completed and two are drilling in Flat Top.
- 1Q21 cash margin was $42.14/BOE, an 85% improvement from 4Q20. Higher realized prices and lower cash costs combined to drive the gain.
- 1Q21 EBITDAX was $20.1 million, up 187% from 4Q20.
- Gains in production, cash margin, and EBITDAX reflect the early benefits of HighPeak scaling its Midland Basin development program.
- The balance sheet remains strong. HighPeak ended the quarter with $0 outstanding on its RBL that currently has a $50 million borrowing base and commitment level. The cash balance was $9.6 million on March 31.
- Based on HighPeak’s full-year production outlook and NYMEX oil and natural gas reference prices of $60/bbl and $2.75, respectively, we estimate the company could generate approximately $165 - $197 million of EBITDAX for 2021.
Source: YCharts, *As of May 19, 2021
HighPeak Energy (HPK) is a Midland Basin-focused independent oil and gas exploration and production company that owns approximately 51,000 net acres in the eastern portion of Howard County, Texas. Year-end 2020 proved reserves were 22.5 MMBOE (84% oil/46% proved developed). The company commenced trading on the NASDAQ in August 2020 following the business combination of Pure Acquisition Corp., a special purpose acquisition vehicle, with HighPeak Energy, Inc. and certain affiliates of HighPeak Energy Partners, L.P. Management has a long history building Permian Basin focused exploration and production companies and currently controls about 90% of the voting shares.
Total 1Q21 production averaged 5,290 BOE/d (~90% oil), a 59% increase from 4Q20.
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