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Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

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<div><ul><li style="list-style-type: square;">We expect HighPeak will continue to balance the company’s development program with its long-term goal of reducing leverage. </li><li style="list-style-type: square;">The FY25 estimated capital program is $448-490 million, including ~$35 million of one-time infrastructure projects that were completed in 1H25. </li><li style="list-style-type: square;">Estimated drilling-related capital is $375-405 million. </li></ul></div>

We expect HighPeak will continue to balance the company’s development program with its long-term goal of reducing leverage. The FY25 estimated capital program is $448-490 million, including ~$35 million of one-time infrastructure projects that were completed in 1H25. Estimated drilling-related capital is $375-405 million. 

Highpeak Energy Inc.: Seeking Balance Between Development and Deleveraging - 28 October 2025

<ul><li>We are updating our estimates to reflect lower NYMEX oil price assumptions for FY25 and FY26. OPEC+’s decision to return 411,000 Bo/d in May and 411,000 Bo/d in June.</li><li>The supply adjustments and global economic uncertainty have increased oil price volatility.</li><li>The front-month WTI contract averaged $62.96/bbl in April, down from $75.15/bbl in January 2025. </li></ul>

We are updating our estimates to reflect lower NYMEX oil price assumptions for FY25 and FY26. OPEC+’s decision to return 411,000 Bo/d in May and 411,000 Bo/d in June.The supply adjustments and global economic uncertainty have increased oil price volatility.The front-month WTI contract averaged $62.96/bbl in April, down from $75.15/bbl in January 2025. 

<ul><li>Management estimates that HighPeak’s D,C,E,&amp;F costs are ~$2 million lower for a well that recovers a similar volume of oil than the average central Midland Basin well.</li><li>The combination highlights the return proposition for HighPeak’s acreage, as recovering similar oil volumes for less than 75% of the D,C,E,&amp;F cost equates to a capital-efficient asset base.</li><li>New wells drilled during 2024 in the northern and northeastern extension areas have expanded Flat Top’s development core, adding new inventory.</li></ul>

Management estimates that HighPeak’s D,C,E,&amp;F costs are ~$2 million lower for a well that recovers a similar volume of oil than the average central Midland Basin well.The combination highlights the return proposition for HighPeak’s acreage, as recovering similar oil volumes for less than 75% of the D,C,E,&amp;F cost equates to a capital-efficient asset base.New wells drilled during 2024 in the northern and northeastern extension areas have expanded Flat Top’s development core, adding new inventory.

HighPeak Energy, Inc.: - New Completions Further Derisk Acreage

<ul><li>Strong production performance in 1H24 contributed to HighPeak raising its FY24 production outlook to 45-49 MBOE/d from management’s initial outlook of 43-47 MBOE/d.</li><li>Total production averaged 49.1 MBOE/d, (78% oil). Production was running above 52 MBOE/d early in 3Q24.</li><li>YTD production has benefited from working down the drilled-but-uncompleted (DUC) well inventory HighPeak carried into 2024 from its three-rig development program in late 2023. </li></ul>

Strong production performance in 1H24 contributed to HighPeak raising its FY24 production outlook to 45-49 MBOE/d from management’s initial outlook of 43-47 MBOE/d.Total production averaged 49.1 MBOE/d, (78% oil). Production was running above 52 MBOE/d early in 3Q24.YTD production has benefited from working down the drilled-but-uncompleted (DUC) well inventory HighPeak carried into 2024 from its three-rig development program in late 2023. 

HighPeak Energy, Inc. - FY24 Production Guidance Raised

<ul><li>We are updating our estimates to reflect actual 2Q24 NYMEX reference prices of $80.66/bbl for oil and $2.32/MMBtu for natural gas.</li><li>Oil accounts for 78% of our 2Q24 oil production estimate and 98% of our 2Q24 revenue estimate.</li><li>Management’s FY24 production outlook is 43.0-47.0 MBOE/d (Figure 1). 1Q24 production averaged 49.7 MBOE/d (80% oil). </li></ul>

We are updating our estimates to reflect actual 2Q24 NYMEX reference prices of $80.66/bbl for oil and $2.32/MMBtu for natural gas.Oil accounts for 78% of our 2Q24 oil production estimate and 98% of our 2Q24 revenue estimate.Management’s FY24 production outlook is 43.0-47.0 MBOE/d (Figure 1). 1Q24 production averaged 49.7 MBOE/d (80% oil). 

HighPeak Energy, Inc. - Free Cash Flow Tailwind

United States

HighPeak Energy, Inc. operates as an exploration company. The Company offers petroleum engineering, geology, geophysics, drilling, and land financing services. HighPeak Energy serves customers in the United States.

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HighPeak Energy Inc (HPK US)

Highpeak Energy Inc.: Seeking Balance Between Development and Deleveraging - 28 October 2025

We expect HighPeak will continue to balance the company’s development program with its long-term goal of reducing leverage. The FY25 estimated...

Water Tower Research

HighPeak Energy, Inc - Estimate Update

We are updating our estimates to reflect lower NYMEX oil price assumptions for FY25 and FY26. OPEC+’s decision to return 411,000 Bo/d in May and...

Water Tower Research

HighPeak Energy, Inc.: - New Completions Further Derisk Acreage

Management estimates that HighPeak’s D,C,E,&F costs are ~$2 million lower for a well that recovers a similar volume of oil than the average central...

Water Tower Research

HighPeak Energy, Inc. - FY24 Production Guidance Raised

Strong production performance in 1H24 contributed to HighPeak raising its FY24 production outlook to 45-49 MBOE/d from management’s initial outlook...

Water Tower Research

HighPeak Energy, Inc. - Free Cash Flow Tailwind

We are updating our estimates to reflect actual 2Q24 NYMEX reference prices of $80.66/bbl for oil and $2.32/MMBtu for natural gas.

Water Tower Research

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