HighPeak Energy’s Q2 2024 results showcase a significant increase in production and a reduction in operating costs, highlighting our commitment to operational excellence. We achieved a 15% increase in sales volumes and reduced lease operating expenses by nearly 20% compared to the same quarter last year. Our strategic focus on optimizing productivity and cost efficiency has positioned us for continued growth and shareholder value maximization.
Here are the highlights from HighPeak Energy’s second quarter 2024 financial and operating results:
Financial Performance
- Net Income: $29.7 million, or $0.21 per diluted share.
- Adjusted Net Income: $39.4 million, or $0.28 per diluted share.
- EBITDAX: $215.8 million, or $1.51 per diluted share.
- Free Cash Flow: $13.4 million, marking the fourth consecutive quarter of positive free cash flow.
- Dividend: Declared a quarterly dividend of $0.04 per common share, payable in September 2024.
Operational Performance
- Sales Volumes: Averaged 48,531 barrels of crude oil equivalent per day (Boe/d), a 15% increase over the second quarter of 2023, with 89% consisting of liquids (crude oil and NGL).
- Lease Operating Expenses: $6.79 per Boe, down from $8.39 per Boe in the second quarter of 2023.
- Production Guidance: Increased 2024 average production guidance to a range of 45,000 to 49,000 Boe/d from 43,000 to 47,000 Boe/d.
- Operating Costs Guidance: Reduced 2024 lease operating expense guidance range to $6.50 to $7.50 per Boe, down from $7.50 to $8.50 per Boe.
- Current Production: Averaging over 52,000 Boe per day thus far in the third quarter.
Capital Expenditures and Drilling Activities
- Capex: Second quarter 2024 capital expenditures for drilling, completion, and infrastructure were $164.0 million.
- Drilling and Completions: Ran two drilling rigs and one frac crew, drilled 13 gross (13.0 net) horizontal wells, and completed 25 gross (18.6 net) producing horizontal wells.
- Inventory: 22 gross (18.5 net) horizontal wells in various stages of drilling and completion as of June 30, 2024.
Strategic Positioning and Outlook
- Acreage and Locations: HighPeak has 137,000 acres with an undrilled inventory of over 2,600 locations, with more than 1,100 providing a minimum 10% return at $50 per barrel.
- Market Position: The scarcity of sub-$50 per barrel breakeven inventory in the lower 48 states positions HighPeak Energy favorably amidst ongoing industry consolidation trends.
Conference Call and Participation
- Earnings Call: Scheduled for August 6, 2024, at 10:00 a.m. Central Time.
- Investor Conferences: Participating virtually in the Seaport Research Partners Annual Summer Investor Conference on August 20-21, 2024, and in-person at the Pickering Energy Partners Annual Energy Conference in Austin, Texas, on September 17-18, 2024.
In conclusion, HighPeak Energy’s Q2 2024 results demonstrate our continued dedication to operational excellence and strategic growth. We are confident that our focus on optimizing production, reducing costs, and maximizing shareholder value will position us for sustained success in the future. We appreciate your continued support and look forward to sharing more updates in the coming quarters.
