Downstream Investors

Drilling Company, HighPeak Energy, Inc. Announces Preliminary 4Q 2021

HighPeak drilling

High Peak Energy, Inc.

HighPeak Energy, Inc. announced an operational update, 2021 year-end proved reserves, 2022 guidance update. The drilling company also informed the entry into agreements with various sellers; to purchase oil and gas assets and the closing of the previously announced private placement of senior unsecured notes.

Firstly, 4Q 2021 average net daily sales volumes eto be between 14,500 – 15,500 Boe per day. An increase of approximately 77% – 90% compared with third-quarter 2021; consisting of approximately 85% – 90% oil and 94% – 96% liquids.

Secondly, the 4Q sales volume estimates benefitted from a successfully executed fourth quarter drilling campaign; and are based primarily on production from approximately 59 gross (47.4 net) horizontal wells.

On December 31, 2021, the Company had an additional 27 gross (23.0 net) horizontal wells; in various stages of drilling and completion; that are expect to come online during the latter part of the first quarter of 2022.

Additionally, fourth quarter 2021 EBITDAX (a non-GAAP financial measure) projects to range from approximately $70 million to $75 million.

Also, using flat pricing of $72 per barrel of oil and $3.75 per MMBtu of natural gas; before adjustments for price differentials, and an estimated realized price of $32.18 per barrel of natural gas liquids; the Company’s proved PV-10 reserve value (a non-GAAP financial measure) increased to approximately $1.5 billion.

By using the SEC pricing, year-end 2021 estimated proved reserves increased 185% to 64.2 MMBoe; compared with year-end 2020 proved reserves. Developed reserves increased 178% to 28.6 MMBoe and were 45% of the Company’s total proved reserves.

Finally, closed on the previously announced private placement of $225 million principal amount of 10.0% senior unsecured notes due 2024 (the “Notes”). Simultaneously with the Closing of the Notes, the Company paid down its Revolving Credit Facility to zero.

Drilling company HighPeak Energy begins 2022 with new acquisitions 

During the first quarter of 2022, the Company entered into a series of agreements to acquire various oil and gas properties contiguous to its Flat Top operating area.

Which in the aggregate, consist of approximately 9,500 net acres, associated estimated production of 2,500 Boe per day; approximately 40 additional horizontal drilling locations, three saltwater disposal (“SWD”) wells, infield produced fluid pipelines, and rights to local non-potable water sourcing of approximately 35,000 barrels per day. 

The combined purchase price for the acquisitions, subject to customary purchase price adjustments; is up to 7.73 million shares of HighPeak common stock and $4 million in cash.

The majority of the acquisitions will close late in the first quarter; and early in the second quarter of 2022.

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Drilling development

In the first place, the Company added a third drilling rig in October 2021; to further delineate its Signal Peak area and to accelerate development drilling in its Flat Top operating area.

Secondly, they added a fourth drilling rig at the beginning of January 2022. Additionally, they will continue the buildout of our field infrastructure to reduce operating costs and advance our ESG objectives.

“We will take advantage of the present environment and our current rates of return by continuing our robust drilling program and potentially adding drilling rig.”

HighPeak Chairman and Chief Executive Officer, Jack Hightower.

At last, the Company currently plans to operate a minimum of four (4) drilling rigs; and an average of two (2) frac fleets during 2022, assuming commodity prices remain attractive. 

“These accretive acquisitions expand our net acreage position to approximately 72,000 net acres; and project to increase our 2022 EBITDAX over fifty million dollars at present commodity prices.”

Jack Hightower.

About HighPeak Energy, Inc.

HighPeak Energy, Inc. is a publicly-traded independent oil and natural gas company; headquartered in Fort Worth, Texas.

The organization focuses on the acquisition, development, exploration; and exploitation of unconventional oil and natural gas reserves in the Midland Basin in West Texas. 

For more information, about HighPeak Energy, visit

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