HighPeak Energy, Inc. announced financial and operating results for the fourth quarter 2021 and reaffirmed its 2022 outlook.
Fourth quarter 2021
Firstly, 4Q 2021 sales volumes of 14,881 barrels of crude oil equivalent per day; an increase of approximately 81% compared with third quarter 2021.
Secondly, fourth-quarter 2021 sales volumes benefitted from a successfully executed fourth quarter drilling campaign; and are based primarily on production from approximately 59 gross (47.4 net) horizontal wells.
Also, at December 2021, the Company had an additional 27 gross (23.0 net) horizontal wells; in various stages of drilling and completion; that are expected to come online during the latter part of the first quarter 2022.
We had a great fourth quarter as evidenced by our 81% production growth. Even before the Ukrainian crisis, we recognized massive underinvestment in energy over the past several years, and contrary to industry sentiment we forged ahead and positioned ourselves for responsible growth.
Jack Hightower, HighPeak Chairman, and CEO.
Oil drilling for High Peak
Moreover, EBITDAX of $72.4 million and $164.2 million for the three months and year ended December 31, 2021, respectively.
Fourth quarter 2021 realized price of $72.07 per Boe; and realized cash operating margin of $60.26 per Boe, excluding the effects of derivatives.
Drilled 15 gross (14.0 net) operated horizontal wells; and completed 10 gross (6.0 net) operated horizontal wells during the 4Q.
As well, the year-end 2021 PV-10 reserve value increased to approximately $1.5 billion using flat pricing of $72 per barrel of oil; and $3.75 per MMBtu of natural gas.
Ended 2021 with net debt of $65.1 million (a non-GAAP financial measure as defined and calculated below).
Increased liquidity to approximately $225 million by completing an October public stock offering; recently closing a private senior unsecured notes offering and amending the revolving credit facility.
We are contemplating accelerating our drilling activity in this year’s business which we can accomplish without increasing our near-term outspend. We are a growth company and we want our shareholders to realize that we will lean into all available opportunities, especially given our quick payouts and high returns on investment.
Jack Hightower.
We recommend Oil company Ranger Oil announced 4Q and Full-Year 2021 results.
Company acquisitions
Firstly, during the first quarter of 2022; the Company entered into a series of agreements to acquire various crude oil and natural gas properties.
The acquisition area is contiguous to its Flat Top operating sector in Borden and Howard counties.
Secondly, the properties under contract also include a salt-water disposal system which includes three active disposal wells with current disposal capacity of 12,000 barrels of water per day.
Additional, benefits associated with the acquired properties include local non-potable water sourcing capacity of approximately 35,000 barrels per day from local surface landowners at attractive rates
Finally, the acreage will add approximately 40 additional horizontal drilling locations in the Wolfcamp A formation.
The majority of the acquisitions are expected to close early in the second quarter of 2022.
Oil and gas company dividend
Additionaly, in September 2021, the Company’s Board of Directors approved its second quarterly dividend of $0.025 per share which resulted in a total of $2.3 million in dividends paid to stockholders on October 25, 2021.
Besides, in January 202, the Company’s Board of Directors declared a quarterly dividend of $0.025 per share which resulted in a total of $2.4 million in dividends paid to stockholders on February 25, 2022.
About HighPeak Energy, Inc.
Finally, HighPeak Energy, Inc. is a publicly-traded independent crude oil and natural gas company, headquartered in Fort Worth, Texas.
Also, the company is focus on the acquisition, development, exploration and exploitation of unconventional crude oil and natural gas reserves in the Midland Basin in West Texas.
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