HighPeak Energy Reports Strong Financial Results for 2024
HighPeak Energy Reports Financial Highlights
HighPeak Energy, Inc. (NASDAQ: HPK) recently shared its financial outcomes and operational achievements for the year ended 2024. The results showcase a robust trajectory, displaying a 10% increase in daily sales volumes compared to the previous year, averaging around 50.0 MBoe/d.
Notable Year-End Achievements
The company reported impressive metrics for the year, including an estimated 199 million Boe in proved reserves, indicating a remarkable 29% increase compared to the end of 2023. HighPeak's net income for 2024 reached $95.1 million, equating to $0.67 per diluted share. The adjusted net income was noted at $144.8 million, or $1.05 per diluted share, demonstrating effective cost management and operational efficiency.
Operational Efficiency
HighPeak successfully managed to reduce its lease operating expenses, averaging $7.23 per Boe, a 17% year-over-year decrease. The company also made substantial progress in managing long-term debt, successfully reducing it by $120 million during the year, and returning value to shareholders by way of a $0.16 per share dividend and repurchasing over 2.4 million shares.
Fourth Quarter Insights
For the fourth quarter alone, HighPeak achieved sales volumes of 50.2 MBoe/d, with a significant portion of this figure coming from liquid production. The quarter's net income stood at $9.0 million or $0.06 per diluted share, achieving an EBITDAX of $179.4 million or $1.27 per diluted share.
2025 Commitments and Guidance
Looking ahead, HighPeak plans a disciplined approach for its 2025 drill program. The company expects to maintain an average of two drilling rigs and one frac crew, aiming for steady operations while keeping capital expenditures in check. The capital expenditures are projected to be in the $415 to $455 million range, demonstrating the company's commitment to sustainable growth and shareholder value.
Focus on Sustainable Operations
In 2025, HighPeak aims to continue enhancing its operational efficiency and is focused on increasing its production output while controlling costs. The company believes that by focusing on corporate efficiency, stimulating production growth, and practicing prudent capital management, it will be able to reduce debt and optimize cash flow.
HighPeak Energy Overview
HighPeak Energy, Inc. stands as a dedicated independent crude oil and natural gas enterprise committed to the exploration, acquisition, and development of unconventional reserves, particularly within the Midland Basin of West Texas. With a strong focus on sustainable practices, the company continues to enhance its asset base, ensuring both operational excellence and shareholder satisfaction.
Frequently Asked Questions
What financial results did HighPeak announce for 2024?
HighPeak reported a net income of $95.1 million for 2024 and a 29% increase in proved reserves, totaling 199 million Boe.
How did HighPeak's stock perform in the fourth quarter?
The company's stock had a net income of $9.0 million in Q4 2024, with sales volumes averaging 50.2 MBoe/d.
What is HighPeak's guidance for 2025?
The company plans to maintain two drilling rigs and one frac crew, with projected capital expenditures between $415 million and $455 million.
How does HighPeak manage its operating costs?
HighPeak achieved lease operating expenses averaging $7.23 per Boe in 2024, marking a 17% reduction from the previous year.
What is HighPeak's commitment to shareholders?
The company returned $0.16 per share in dividends in 2024 and repurchased over 2.4 million shares as part of its shareholder value initiatives.
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