HighPeak Energy, Inc. Announces First Quarter 2026 Financial and Operating Results

FORT WORTH, Texas, May 06, 2026 (GLOBE NEWSWIRE) -- HighPeak Energy, Inc. (“HighPeak” or the “Company”) (NASDAQ: HPK) today announced financial and operating results for the quarter ended March 31, 2026.

A statement from our President and CEO, Michael Hollis:

The current geopolitical uncertainty and commodity price volatility has encouraged us to remain resolute in delivering on our 2026 core objectives of achieving financial resilience, continuing our maintenance capital program and prioritizing corporate efficiency.

We are starting the year strong, with first quarter operating results outperforming guidance across the board, and I am proud of how our team executed in every area of the business. I would like to point out a few items:

• Production averaged approximately 46,000 BOE/d, roughly 7.5% above the midpoint of our guided range, with daily oil production 10% higher quarter over quarter. Both strong performance from new wells and continued optimization of our base production contributed to the increase.
• Lease operating expenses were 17% below our guided range and approximately 22% below fourth quarter levels.
• Drilling and turn-in-line activity represented about one-third of our planned 2026 program, and capital expenditures were held in line with expectations of less than 30% of full-year capital. We exited the quarter with 18 wells in progress, positioning us well to execute the balance of our annual plan.
• Generated free cash flow, excluding changes in working capital, of more than $20 million.
  
  

We plan to build on the momentum of the first quarter since these results reflect less than one month of elevated oil prices tied to the current situation in the Middle East. While the current situation has created what could become one of the most significant crude oil supply shocks the world has ever seen, HighPeak intends to use every dollar of incremental free cash flow the right way by strengthening our financial foundation. I am confident that the HighPeak team will continue to make steady progress in achieving our core objectives through pursuing a fiscally responsible and disciplined development plan. These stronger prices are helpful, but disciplined execution is what will create lasting value for our stakeholders.

First Quarter 2026 Operational Update

HighPeak’s sales volumes averaged 45.6 MBoe/d during the first quarter of 2026 consisting of approximately 68% crude oil and 84% liquids.

The Company averaged one (1) drilling rig and (1) one frac crew throughout the first quarter, drilled 9 gross (8.9 net) horizontal wells and turned-in-line 12 gross (12.0 net) producing wells. On March 31, 2026, the Company had 18 gross (17.8 net) horizontal wells in progress, including 16 gross (15.9 net) horizontal wells in various stages of completion.

The Company released a drilling rig in late January bringing us to one drilling rig and one frac crew that we plan to run for the majority of 2026.

First Quarter 2026 Financial Results

HighPeak reported a net loss of $127.4 million for the first quarter 2026, or $1.02 per diluted share, and EBITDAX (a non-GAAP financial measure defined and reconciled below) of $133.5 million, or $0.96 per diluted share. Adjusted net loss (a non-GAAP financial measure defined and reconciled below) was $2.7 million, or $0.02 per diluted share.

First quarter 2026 average realized prices were $71.79 per Bbl of crude oil, $17.22 per Bbl of NGL and $1.32 per Mcf of natural gas, resulting in an overall realized price of $52.57 per Boe, or 73% of the weighted average of NYMEX crude oil prices, excluding the effects of derivatives. Including the effects of derivatives, first quarter 2026 average realized prices were $66.06 per Bbl of crude oil, $17.22 per Bbl of NGL and $0.92 per Mcf of natural gas, resulting in an overall realized price of $48.32 per Boe. HighPeak’s cash costs for the first quarter 2026 were $15.81 per Boe, including lease operating costs of $6.53 per Boe, expense workovers of $0.66 per Boe, gathering, processing and transportation expenses of $4.32 per Boe, production and ad valorem taxes of $2.90 per Boe and G&A expenses of $1.40 per Boe. As a result, the Company’s unhedged EBITDAX per Boe was $36.76 per Boe.

HighPeak’s total capital expenditures, excluding acquisitions, for the first quarter were $78.4 million. 

Hedging

Crude oil. As of March 31, 2026 and factoring in derivative instruments entered into subsequent to quarter end, HighPeak had the following outstanding crude oil derivative instruments and the weighted average crude oil prices per barrel (“Bbl”):

Settlement
Month Settlement
Year Type of
Contract Bbls
Per Day Index Swap
Price per
Bbl  Costless
Collar
Floor
Price per
Bbl  Costless
Collar
Ceiling
Price per
Bbl Crude Oil:                     Apr – Jun 2026 Costless Collar  12,350 WTI Cushing $—  $59.87  $66.82 Apr – Jun 2026 Swap  10,000 WTI Cushing $64.91  $—  $— Apr – Jun 2026 Roll Swap  21,725 NYMEX WTI Roll $4.37  $—  $— Apr – Jun 2026 Basis Swap  18,011 Argus WTI Midland $1.25  $—  $— Jul – Sep 2026 Costless Collar  12,000 WTI Cushing $—  $59.83  $66.84 Jul – Sep 2026 Swap  5,000 WTI Cushing $63.45  $—  $— Jul – Sep 2026 Roll Swap  26,011 NYMEX WTI Roll $4.30  $   $— Jul – Sep 2026 Basis Swap  23,000 Argus WTI Midland $1.37  $—  $— Oct – Dec 2026 Costless Collar  9,800 WTI Cushing $—  $59.80  $65.31 Oct – Dec 2026 Swap  5,000 WTI Cushing $63.45  $—  $— Oct – Dec 2026 Roll Swap  25,000 NYMEX WTI Roll $4.23  $—  $— Oct – Dec 2026 Basis Swap  23,000 Argus WTI Midland $1.37  $—  $— Jan – Mar 2027 Costless Collar  8,900 WTI Cushing $—  $59.78  $65.24 Jan – Mar 2027 Swap  4,400 WTI Cushing $62.14  $—  $— Jan – Mar 2027 Basis Swap  10,000 Argus WTI Midland $1.00  $—  $— Apr – Jun 2027 Costless Collar  4,000 WTI Cushing $—  $52.00  $62.85 Apr – Jun 2027 Swap  6,470 WTI Cushing $59.61  $—  $— Apr – Jun 2027 Basis Swap  10,000 Argus WTI Midland $1.00  $—  $— Jul – Sep 2027 Swap  8,950 WTI Cushing $61.46  $—  $— Jul – Sep 2027 Basis Swap  10,000 Argus WTI Midland $1.00  $—  $— Oct – Dec 2027 Swap  1,000 WTI Cushing $72.25  $—  $— Oct – Dec 2027 Basis Swap  10,000 Argus WTI Midland $1.00  $—  $— 

The Company’s crude oil derivative contracts detailed above are based on reported settlement prices on the New York Mercantile Exchange for West Texas Intermediate (“WTI Cushing”) pricing or the basis differential between that and Argus WTI Midland pricing which represents the premium to WTI Cushing.

Natural gas. As of March 31, 2026, the Company had the following outstanding natural gas derivative instruments and the weighted average natural gas prices payable per MMBtu.

Settlement Month Settlement
Year Type of
Contract MMBtu
Per Day Index Price per
MMBtu Natural Gas:             Apr – Jun 2026 Swap  30,000 HH $4.30 Jul – Sep 2026 Swap  30,000 HH $4.30 Oct – Dec 2026 Swap  30,000 HH $4.30 Jan – Mar 2027 Swap  19,667 HH $4.30 

The Company’s natural gas derivative contracts detailed above are based on reported settlement prices on the New York Mercantile Exchange for Henry Hub (“HH”) pricing.

Conference Call

HighPeak will host a conference call and webcast on Thursday, May 7, 2026, at 10:00 a.m. Central Time for investors and analysts to discuss its results for the first quarter of 2026. Conference call participants may register for the call here. Access to the live audio-only webcast and replay of the earnings release conference call may be found here. A live broadcast of the earnings conference call will also be available on the HighPeak Energy website at www.highpeakenergy.com under the “Investors” section of the website. A replay will also be available on the website following the call.

When available, a copy of the Company’s earnings release, investor presentation and Quarterly Report on Form 10-Q may be found on its website at www.highpeakenergy.com.

Conference Participation

HighPeak Energy will participate in-person at the upcoming Louisiana Energy Conference, located in New Orleans, Louisiana, from May 26th - May 28th, 2026.

About HighPeak Energy, Inc.

HighPeak Energy, Inc. is a publicly traded independent crude oil and natural gas company, headquartered in Fort Worth, Texas, focused on the acquisition, development, exploration and exploitation of unconventional crude oil and natural gas reserves in the Midland Basin in West Texas. For more information, please visit our website at www.highpeakenergy.com.

Cautionary Note Regarding Forward-Looking Statements

The information in this press release contains forward-looking statements that involve risks and uncertainties. When used in this document, the words “believes,” “plans,” “expects,” “anticipates,” “forecasts,” “intends,” “continue,” “may,” “will,” “could,” “should,” “future,” “potential,” “estimate” or the negative of such terms and similar expressions as they relate to HighPeak Energy, Inc. (“HighPeak Energy” or the “Company”) are intended to identify forward-looking statements, which are generally not historical in nature. The forward-looking statements are based on the Company's current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates. Although the Company believes that the expectations and assumptions reflected in the forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond the Company's control. For example, the Company’s review of strategic alternatives may not result in a sale of the Company, a recommendation that a transaction occur or result in a completed transaction, and any transaction that occurs may not increase shareholder value, in each case as a result of such risks and uncertainties.

These risks and uncertainties include, among other things, the results of the strategic review being undertaken by the Company’s Board and the interest of prospective counterparties, the Company’s ability to realize the results contemplated by its 2026 guidance, volatility of commodity prices, political instability or armed conflicts in crude or natural gas producing regions such as the ongoing war between Russia and Ukraine and conflicts in the Middle East, product supply and demand, the impact of a widespread outbreak of an illness, such as the coronavirus disease pandemic, on global and U.S. economic activity, competition, OPEC+ policy decisions, potential new trade policies, such as tariffs, could adversely affect the Company’s operations, business and profitability, inflationary pressures on costs of oilfield goods, services and personnel, the ability to obtain environmental and other permits and the timing thereof, other government regulation or action, the ability to obtain approvals from third parties and negotiate agreements with third parties on mutually acceptable terms, litigation, the costs and results of drilling and operations, availability of equipment, services, resources and personnel required to perform the Company's drilling and operating activities, access to and availability of transportation, processing, fractionation, refining and storage facilities, HighPeak Energy's ability to replace reserves, implement its business plans or complete its development activities as scheduled, access to and cost of capital, the financial strength of counterparties to any credit facility and derivative contracts entered into by HighPeak Energy, if any, and purchasers of HighPeak Energy's oil, natural gas liquids and natural gas production, uncertainties about estimates of reserves, identification of drilling locations and the ability to add proved reserves in the future, the assumptions underlying forecasts, including forecasts of production, expenses, cash flow from sales of oil and gas and tax rates, quality of technical data, environmental and weather risks, including the possible impacts of climate change, cybersecurity risks and acts of war or terrorism. These and other risks are described in the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K and other filings with the SEC. The Company undertakes no duty to publicly update these statements except as required by law.

Reserve engineering is a process of estimating underground accumulations of hydrocarbons that cannot be measured in an exact way. The accuracy of any reserve estimate depends on the quality of available data, the interpretation of such data and price and cost assumptions made by reserve engineers. Reserves estimates included herein may not be indicative of the level of reserves or PV-10 value of oil and natural gas production in the future. In addition, the results of drilling, testing and production activities may justify revisions of estimates that were made previously. If significant, such revisions could impact HighPeak’s strategy and change the schedule of any further production and development drilling. Accordingly, reserve estimates may differ significantly from the quantities of oil and natural gas that are ultimately recovered.

Use of Projections

The financial, operational, industry and market projections, estimates and targets in this press release and in the Company’s guidance (including production, operating expenses and capital expenditures in future periods) are based on assumptions that are inherently subject to significant uncertainties and contingencies, many of which are beyond the Company’s control. The assumptions and estimates underlying the projected, expected or target results are inherently uncertain and are subject to a wide variety of significant business, economic, regulatory and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the financial, operational, industry and market projections, estimates and targets, including assumptions, risks and uncertainties described in “Cautionary Note Regarding Forward-Looking Statements” above. These projections are speculative by their nature and, accordingly, are subject to significant risk of not being actually realized by the Company. Projected results of the Company for 2026 are particularly speculative and subject to change. Actual results may vary materially from the current projections, including for reasons beyond the Company’s control. The projections are based on current expectations and available information as of the date of this release. The Company undertakes no duty to publicly update these projections except as required by law.

Drilling Locations

The Company has estimated its drilling locations based on well spacing assumptions and upon the evaluation of its drilling results and those of other operators in its area, combined with its interpretation of available geologic and engineering data. The drilling locations actually drilled on the Company’s properties will depend on the availability of capital, regulatory approvals, commodity prices, costs, actual drilling results and other factors. Any drilling activities conducted on these identified locations may not be successful and may not result in additional proved reserves. Further, to the extent the drilling locations are associated with acreage that expires, the Company would lose its right to develop the related locations.

HighPeak Energy, Inc.Unaudited Condensed Consolidated Balance Sheet Data(In thousands)       March 31, 2026 December 31, 2025Current assets:      Cash and cash equivalents $95,827  $162,075 Accounts receivable  98,503   55,546 Derivative instruments  7,808   29,574 Prepaid expenses  5,596   5,054 Inventory  4,362   7,648 Total current assets  212,096   259,897 Crude oil and natural gas properties, using the successful efforts method of accounting:      Proved properties  4,555,956   4,477,368 Unproved properties  59,242   59,285 Accumulated depletion, depreciation and amortization  (1,719,167)  (1,606,217)Total crude oil and natural gas properties, net  2,896,031   2,930,436 Other property and equipment, net  3,070   3,012 Derivative instruments  —   4,197 Other noncurrent assets  15,423   16,172 Total assets $3,126,620  $3,213,714        Current liabilities:      Current portion of long-term debt $90,000  $60,000 Derivative instruments  98,795   380 Accounts payable – trade  51,198   84,313 Revenues and royalties payable  30,771   30,665 Accrued capital expenditures  16,660   30,921 Derivative settlements payable  16,022   — Other accrued liabilities  12,621   20,927 Operating leases  661   845 Advances from joint interest owners  357   2,205 Total current liabilities  317,085   230,256 Noncurrent liabilities:      Long-term debt, net  1,097,596   1,132,807 Deferred income taxes  211,985   239,636 Asset retirement obligations  16,336   15,944 Derivative instruments  15,536   360 Operating leases  96   142        Stockholders’ equity      Common stock  13   13 Additional paid-in capital  1,162,872   1,162,007 Retained earnings  305,101   432,549 Total stockholders’ equity  1,467,986   1,594,569 Total liabilities and stockholders’ equity $3,126,620  $3,213,714        

HighPeak Energy, Inc.
Unaudited Condensed Consolidated Statements of Operations
(in thousands)
     Three Months Ended
March 31,
  2026
 2025
Operating revenues:        Crude oil sales $199,155  $246,424 NGL and natural gas sales  16,730   25,887 Total operating revenues  215,885   272,311 Operating costs and expenses:        Crude oil and natural gas production  29,524   35,562 Gathering, processing and transportation  17,733   14,863 Production and ad valorem taxes  11,900   15,152 Exploration and abandonments  742   264 Depletion, depreciation and amortization  113,014   109,325 Accretion of discount  295   244 General and administrative  5,745   6,345 Stock-based compensation  865   177 Total operating costs and expenses  179,818   181,932 Other expense  50   — Income from operations  36,017   90,379 Interest and other income  949   810 Interest expense  (35,038)  (36,988)Loss on derivative instruments, net  (157,027)  (7,927)(Loss) income before income taxes  (155,099)  46,274 Provision for income taxes  (27,651)  9,939 Net (loss) income $(127,448) $36,335 (Loss) earnings per share:        Basic net (loss) income $(1.02) $0.26 Diluted net (loss) income $(1.02) $0.26          Weighted average shares outstanding:        Basic  125,265   123,913 Diluted  125,265   127,213          Dividends declared per share $—  $0.04          

HighPeak Energy, Inc.Unaudited Condensed Consolidated Statements of Cash Flows(in thousands)         Three Months Ended March 31,  2026 2025CASH FLOWS FROM OPERATING ACTIVITIES:      Net (loss) income $(127,448) $36,335 Adjustments to reconcile net (loss) income to net cash provided by operations:      Provision for deferred income taxes  (27,651)  9,939 Loss on derivative instruments  157,027   7,927 Cash paid on settlement of derivative instruments  (17,473)  (3,071)Amortization of debt issuance costs  884   2,034 Amortization of discounts on long-term debt  —   2,426 Stock-based compensation expense  865   177 Accretion expense  295   244 Depletion, depreciation and amortization  113,014   109,325 Exploration and abandonment expense  457   4 Changes in operating assets and liabilities:      Accounts receivable  (42,957)  6,886 Prepaid expenses, inventory and other assets  2,594   (1,314)Accounts payable, accrued liabilities and other current liabilities  (5,406)  (13,860)Net cash provided by operating activities  54,201   157,052 CASH FLOWS FROM INVESTING ACTIVITIES:      Additions to crude oil and natural gas properties  (78,779)  (179,819)Changes in working capital associated with crude oil and natural gas property additions  (35,326)  25,172 Acquisitions of crude oil and natural gas properties  (127)  (2,517)Proceeds from sales of properties  —   570 Other property additions  (122)  — Net cash used in investing activities  (114,354)  (156,594)CASH FLOWS FROM FINANCING ACTIVITIES:      Borrowings under Term Loan Credit Agreement  (6,095)  — Repayments under Term Loan Credit Agreement  —   (30,000)Dividends paid  —   (4,957)Dividend equivalents paid  —   (531)Net cash used in financing activities  (6,095)  (35,488)Net decrease in cash and cash equivalents  (66,248)  (35,030)Cash and cash equivalents, beginning of period  162,075   86,649 Cash and cash equivalents, end of period $95,827  $51,619        

HighPeak Energy, Inc.Unaudited Summary Operating Highlights   Three Months Ended March 31,
  2026 2025Average Daily Sales Volumes:      Crude oil (Bbls)  30,826   38,222 NGLs (Bbls)  7,403   7,724 Natural gas (Mcf)  44,402   43,096 Total (Boe)  45,629   53,128        Average Realized Prices (excluding effects of derivatives):      Crude oil per Bbl $71.79  $71.64 NGL per Bbl $17.22  $24.21 Natural gas per Mcf $1.32  $2.34 Total per Boe $52.57  $56.95        Margin Data ($ per Boe, excluding effects of derivatives):      Average price $52.57  $56.95 Lease operating costs  (6.53)  (6.61)Expense workovers  (0.66)  (0.83)Gathering, processing & transportation expenses  (4.32)  (3.11)Production and ad valorem taxes  (2.90)  (3.17)General & administrative expenses  (1.40)  (1.33)  $36.76  $41.90        

HighPeak Energy, Inc.Unaudited Earnings Per Share Details(in thousands, except per share amounts)   Three Months Ended March 31,  2026 2025Net (loss) income as reported $(127,448) $36,335 Participating basic earnings  —   (3,542)Basic (losses) earnings attributable to common shareholders  (127,448)  32,793 Reallocation of participating earnings  —   47 Diluted net (loss) income attributable to common shareholders $(127,448) $32,840        Basic weighted average shares outstanding  125,265   123,913 Dilutive warrants and unvested stock options  —   1,146 Dilutive unvested restricted stock  —   2,154 Diluted weighted average shares outstanding  125,265   127,213        Net (loss) income per share attributable to common shareholders:      Basic $(1.02) $0.26 Diluted $(1.02) $0.26        

HighPeak Energy, Inc.Unaudited Reconciliation of Net Income to EBITDAX, Discretionary Cash Flow and Net Cash Provided by Operations(in thousands)        Three Months Ended March 31,
  2026 2025Net (loss) income $(127,448) $36,335 Interest expense  35,038   36,988 Interest and other income  (949)  (810)Provision for income taxes  (27,651)  9,939 Depletion, depreciation and amortization  113,014   109,325 Accretion of discount  295   244 Exploration and abandonment expense  742   264 Stock based compensation  865   177 Derivative related noncash activity  139,554   4,856 Other expense  50   — EBITDAX  133,510   197,318 Cash interest expense  (34,154)  (32,528)Other (a)  614   550 Discretionary cash flow  99,970   165,340 Changes in operating assets and liabilities  (45,769)  (8,288)Net cash provided by operating activities $54,201  $157,052        (a) includes interest and other income net of current tax expense, other expense and operating portion of exploration and abandonment expenses. 

HighPeak Energy, Inc.Unaudited Reconciliation of Net Cash Provided by Operations and Free Cash Flow(in thousands)     Three Months Ended March 31,
  2026  2025 Net cash provided by operating activities $54,201  $157,052 Add back net change in operating assets and liabilities  45,769   8,288 Discretionary cash flow  99,970   165,340 Additions to crude oil and natural gas properties  (78,779)  (179,819)Free cash flow before changes in working capital associated with oil and gas property additions  21,191   (14,479)Changes in working capital associated with oil and gas property additions  (35,326)  25,172 Free cash flow $(14,135) $10,693          

HighPeak Energy, Inc.Unaudited Reconciliation of Net Loss to Adjusted Net Loss(in thousands, except per share data)     Three Months Ended March 31, 2026  Amounts Amounts per Diluted ShareNet loss $(127,448) $(1.02)Noncash derivative loss, net  157,027   1.26 Stock-based compensation  865   0.01 Other expense  50   0.00 Income tax adjustment for above items*  (33,168)  (0.27)Adjusted net loss $(2,674) $(0.02)       * Assuming a 21% tax rate      

Investor Contact:
Ryan Hightower
Executive Vice President
817.850.9204
[email protected]

Source: HighPeak Energy, Inc.