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Water Tower Research

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.

Research from Water Tower Research

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Equity Bottom-Up

<div><ul><li>HighPeak has committed itself to deleveraging the balance sheet to position the company to convert its large undeveloped drilling inventory into asset value. </li><li>To achieve the objective, HighPeak has set a FY26 capex program of $255-285 million, nearly 50% lower than FY25 capex.</li><li>Free cash flow will be used to reduce term loan borrowings. As of December 31, 2025, the term loan balance was $1.2 billion. </li></ul></div>

HighPeak has committed itself to deleveraging the balance sheet to position the company to convert its large undeveloped drilling inventory into asset value. To achieve the objective, HighPeak has set a FY26 capex program of $255-285 million, nearly 50% lower than FY25 capex.Free cash flow will be used to reduce term loan borrowings. As of December 31, 2025, the term loan balance was $1.2 billion. 

HPK: Cash Flow Outlook Supports Objectives to Reduce Term Loan Borrowings

HighPeak Energy Inc

HPK: Cash Flow Outlook Supports Objectives to Reduce Term Loan Borrowings