Q3 2024 Highpeak Energy Inc Earnings Call Transcript
Key Points
- HighPeak Energy Inc (HPK) achieved another solid quarter of execution, with production levels outperforming initial expectations.
- The company generated positive free cash flow for the fifth consecutive quarter, utilizing it to pay down debt and execute a share buyback program.
- Production volumes averaged over 51,000 barrels of oil per day, leading to an increase in full-year production guidance.
- HighPeak's EBITDAX per BOE remains significantly higher than peers, driven by a high oil mix and low operating expenses.
- The company has identified approximately 300 Middle Spraberry locations, adding to its inventory of sub-$50 breakeven wells.
- Operations were affected by a major storm, causing some production volumes to be offline and increasing lease operating expenses.
- Despite strong performance, the company faces challenges in convincing the market of its cost structure advantages compared to peers.
- The company's acreage is shallower, which could lead to less natural gas production compared to peers, impacting revenue diversification.
- There is a need for continued infrastructure investment to support field-wide operations and maintain cost efficiencies.
- The strategic alternatives process is ongoing, with no specific details provided, creating uncertainty about future directions.
Good day. And thank you for standing by. Welcome to the HighPeak Energy 2024 third quarter earnings conference call.
(Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Steven Tholen, Chief Financial Officer. Please go ahead.
Good morning, everyone and welcome to HighPeak Energy's third quarter, 2024 earnings call. Representing HighPeak today are Chairman and CEO, Jack Hightower; President Michael Hollis; and I'm Steven Tholen, the Chief Financial Officer. During today's call, we will make reference to our November investor presentation and our third quarter earnings release which can be found on HighPeak's website.
Today's call. Participants may make certain forward-looking statements relating to the company's financial condition, results of operations, expectations, plans, goals, assumptions, and future performance. So please refer to the cautionary information regarding
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