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HighPeak Energy, Inc. Insiders Continue To Buy HighPeak Energy NASDAQ: HPK executives said the company is emphasizing production stability, lower operating costs and debt reduction as it seeks to position its Midland Basin asset base for longer-term shareholder value creation.

Speaking at the Water Tower Research Virtual Insights Conference, Chief Executive Officer Mike Hollis said HighPeak has executed its operational plan as intended since he took the CEO role in September 2025. The company’s priorities have included disciplined maintenance spending, improving capital efficiency and reducing operating costs across the business, he said.

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Those efforts have helped HighPeak build a “meaningful and substantial cash position,” Hollis said, providing flexibility to support the company’s broader financial objectives.

Inventory and Midland Basin Position HighPeak’s acreage is concentrated in northeast Howard County and southeast Borden County in the Midland Basin, with two principal blocks known as Flat Top and Signal Peak. The company’s production averaged approximately 45,500 barrels of oil equivalent per day during the first half of 2026, with oil representing about 66% of total production, according to the conference introduction.

Hollis said the company has generally allocated capital on a 70%-30% basis between its northern and southern acreage blocks, closely matching its acreage and inventory distribution. He said results from that development approach—including production above guidance and lower lease operating expenses than budgeted—support management’s confidence in the inventory.

HighPeak has identified about 650 undeveloped locations in its primary Wolfcamp A and Lower Spraberry targets. Hollis said the company has drilled 440 producing wells, with the “high-90%” range located in those two formations, providing substantial data coverage across its acreage.

The Middle Spraberry could expand the company’s higher-priority inventory, he added. HighPeak has drilled at least eight Middle Spraberry wells and has five online. Management estimates roughly 300 locations could move into its top-tier inventory category, potentially increasing that inventory from about 650 locations to between 900 and 950.

Capital Spending and Production Management HighPeak’s 2026 capital program was designed to sustain a stable production base. The company spent 69% of its planned annual capital budget during the first half, above its initial expectation that more than 60% would be spent during that period.

Hollis attributed the higher first-half spending percentage partly to the decision to bring forward a four-well pad from the second half of the year. The total capital budget has not changed, he said. Faster drilling activity also will allow the company to drill additional wells in 2026, setting up its completion program for 2027 while keeping a single drilling rig active.

While fewer completions are expected in the second half, Hollis said HighPeak also expects fewer production interruptions from frac impacts on nearby wells. Combined with continued base-production optimization, he said the company expects to maintain relatively flat production through 2026, albeit at a level somewhat above original guidance.

Hollis said HighPeak has reduced annual capital spending sharply from more than $1 billion several years ago to well under $300 million expected in 2026, while maintaining approximately the same production level. Management has not issued formal 2027 guidance, but he said the company’s drilling and completion approach next year is expected to look “extremely similar” to 2026.

Infrastructure and Operating Efficiency The company has invested heavily in field infrastructure, including more than 40 central tank batteries, which Hollis said has helped support lower operating costs despite HighPeak producing less gas per barrel of oil and more water per barrel of oil than some other Permian operators.

HighPeak plans to build pipelines and a central tank battery for the northern portion of the Flat Top acreage during 2026. After that work, Hollis said the “vast majority” of the infrastructure backbone across its existing footprint will be in place, reducing future infrastructure spending required to connect new wells.

Management also highlighted base-production optimization efforts, including lift and chemical optimization as well as newer approaches such as mini-stimulations and nanosurfactants. Hollis characterized the work as relatively low-cost activity that can produce returns exceeding those of drilling additional wells.

Debt Reduction Remains Central Focus Executive Vice President Ryan Hightower said HighPeak’s desired capital structure would resemble a more traditional exploration-and-production financing model with a materially lower cost of capital. He said every 1 percentage point reduction in the company’s interest coupon would reduce annual interest expense by approximately $12 million.

Hightower said the company is focused on using sustained free cash flow to reduce absolute debt, improve financial flexibility and ultimately refinance its debt. At oil prices near $100 per barrel, he said incremental free cash flow would be directed toward debt reduction rather than a material change in capital-allocation strategy.

Management said investors should watch capital efficiency, lease operating expense trends, free-cash-flow generation through commodity cycles and debt reduction as measures of HighPeak’s progress.

About HighPeak Energy (NASDAQ:HPK)HighPeak Energy, Inc is an independent oil and natural gas exploration and production company focused on developing oil-rich properties in the Midland Basin of the Permian Basin in West Texas. Its operations are concentrated in Howard, Borden, and adjacent counties, where it owns and operates acreage prospective for crude oil, natural gas, and natural gas liquids.

The company's activities include acquiring mineral and leasehold interests, drilling and completing horizontal wells, producing hydrocarbons, and managing related gathering and infrastructure operations.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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HighPeak Energy, Inc. Insiders Continue To Buy HighPeak Energy NASDAQ: HPK reported second-quarter results marked by production above its guidance range, lower-than-guided lease operating expenses and sequential growth in adjusted EBITDA and free cash flow, according to management’s earnings call.

President and CEO Michael Hollis said production was essentially flat from the first quarter and again exceeded the high end of the company’s guidance. For the first six months of 2026, production averaged 45,500 barrels of oil equivalent per day, while unit lease operating expense averaged $7.56 per BOE, approximately 13% below the midpoint of full-year guidance.

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“Our team went out and executed,” Hollis said, citing production performance, cost control and capital discipline. The company generated approximately $281 million of EBITDAX in the first half, he said.

Completion Activity Accelerated, Second-Half Spending Expected to Fall HighPeak said it accelerated a portion of completion activity into the second quarter to take advantage of favorable frac pricing and continue work with a simul-frac crew that management said had delivered improved efficiencies, faster cycle times and lower costs.

The company drilled 17 of its planned 29 wells during the first half of the year and completed 24 of its planned 33 wells. It also turned 20 wells in line, putting it on track toward its full-year target of 37 wells turned in line.

Hollis said the acceleration caused first-half capital spending to reach the mid- to upper-60% range of the annual budget, compared with an original expectation that about 60% of annual capital would be spent during the first half. HighPeak invested $185.9 million during the first six months, according to management.

Management characterized the spending shift as a timing decision rather than an increase to the budget. With more development activity completed earlier in the year, HighPeak expects capital spending to decline materially in the second half while production remains strong.

During the question-and-answer session, Hollis said the company completed 69% of its planned completion work in the first half. He added that HighPeak expects fewer frac-related production impacts during the remainder of the year.

“We think volumes will stay strong throughout the last half of the year,” Hollis said, adding that the company expects to generate significant free cash flow at reasonable oil prices.

Workover Program Supported Production Management highlighted its workover program as a contributor to second-quarter production. Hollis said HighPeak evaluated wells across its asset base and deployed relatively modest capital to return production to service and improve well productivity.

The company said workovers can offer quick paybacks and capital-efficient returns compared with drilling new wells. Workover costs are generally recorded in lease operating expenses when they involve required well interventions, while mini-stimulation work intended to increase reserves is captured as capital spending, Hollis said.

Hollis told analysts that the company had addressed much of the inventory of wells that could be quickly brought forward for workovers during the first half. However, he said workover opportunities will continue as wells require maintenance and interventions over time.

The workover activity also affected the company’s production mix in the second quarter. HighPeak’s oil percentage declined to 64%, below its guided 67% to 68% range, as completion activity temporarily affected higher-oil-cut wells and workovers brought back older wells with higher gas content.

For the remainder of the year, Hollis said he expects the oil cut to move closer to 67%.

Hedging and Balance Sheet Approach Stronger realized oil prices and stable production supported sequential increases in adjusted EBITDA and free cash flow, despite approximately $55 million of net cash hedge losses during the second quarter, Hollis said.

The company said a larger percentage of expected production is exposed to spot commodity prices. At the same time, it retains oil hedges primarily in the mid-$60-per-barrel range to provide downside protection.

HighPeak also added NYMEX WTI roll swaps to manage calendar-spread exposure and Waha basis swaps to reduce exposure to West Texas natural-gas pricing volatility, management said.

Hollis said the company had $146 million of cash at quarter-end and plans to make scheduled term-loan amortization payments of $30 million per quarter beginning at the end of the third quarter. While HighPeak expects to generate more than enough cash at current oil prices to meet that requirement, he said management will be cautious about accelerating repayments because prepayments cannot be reborrowed.

“We will definitely do the $30 million a quarter,” Hollis said. “We will have enough cash on hand to be able to weather any kind of variability over the next year or so.”

Gas Realizations Improve Following Weak Second Quarter HighPeak said it experienced a negative $1.50-per-Mcf gas realization in the second quarter amid weak Waha pricing, though Hollis described that result as comparatively favorable versus many public peers.

Looking ahead, he said the Gulf Coast Express expansion had helped narrow Waha differentials closer to negative $1 per Mcf, compared with negative $3 to negative $5 per Mcf previously. HighPeak expects better gas realizations during the rest of 2026 and at least through the first half of 2027.

Management said gas takeaway capacity has not constrained its operations. “We have not had one Mcf that we wasn’t able to put into a pipe,” Hollis said, though he noted the company had at times effectively paid for gas transportation because of depressed pricing.

For 2027, Hollis said the company’s setup should resemble 2026 in terms of capital requirements and production volumes. He said drilling efficiencies could result in two additional drilled-but-uncompleted wells moving into next year.

About HighPeak Energy (NASDAQ:HPK)HighPeak Energy, Inc NASDAQ: HPK is a Delaware‐incorporated independent oil and natural gas exploration and production company. The firm focuses on the acquisition, development and exploitation of onshore petroleum assets in the continental United States. Its operations encompass the full upstream value chain, including exploration, drilling, completion and production activities aimed at maximizing hydrocarbon recovery and operational efficiency.

The company’s primary business activities include identifying and acquiring conventional and unconventional oil and gas properties, applying advanced drilling and completion technologies, and managing midstream logistics to optimize product flow.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Should You Invest $1,000 in HighPeak Energy Right Now?Before you consider HighPeak Energy, you'll want to hear this.

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