HighPeak Energy | 10-Q: FY2025 Q3 Revenue Misses Estimate at USD 188.86 M

Revenue: As of FY2025 Q3, the actual value is USD 188.86 M, missing the estimate of USD 209.02 M.

EPS: As of FY2025 Q3, the actual value is USD -0.15, missing the estimate of USD 0.09.

EBIT: As of FY2025 Q3, the actual value is USD 68.59 M.

Segment Revenue

• Total operating revenues for the three months ended September 30, 2025, were $188.9 million, a decrease of 30% compared to $271.6 million for the same period in 2024.
• For the nine months ended September 30, 2025, total operating revenues were $646.7 million, a decrease of 23% compared to $834.6 million for the same period in 2024.

Operational Metrics

• Net loss for the three months ended September 30, 2025, was -$18.3 million, compared to net income of $49.9 million for the same period in 2024.
• Net income for the nine months ended September 30, 2025, was $44.2 million, compared to $86.1 million for the same period in 2024.
• Depletion, depreciation, and amortization (DD&A) expense for the three months ended September 30, 2025, was $100.6 million, a decrease of 26% compared to $136.6 million for the same period in 2024.
• DD&A expense for the nine months ended September 30, 2025, was $311.2 million, a decrease of 21% compared to $395.1 million for the same period in 2024.

Cash Flow

• Net cash provided by operating activities for the nine months ended September 30, 2025, was $418.5 million, compared to $550.9 million for the same period in 2024.
• Net cash used in investing activities for the nine months ended September 30, 2025, was -$426.8 million, compared to -$475.8 million for the same period in 2024.
• Net cash provided by financing activities for the nine months ended September 30, 2025, was $86.6 million, compared to net cash used of -$134.0 million for the same period in 2024.

Unique Metrics

• Average daily sales volumes for the three months ended September 30, 2025, were 47,839 Boepd, a decrease of 7% compared to 51,346 Boepd for the same period in 2024.
• Weighted average realized crude oil prices per Bbl for the three months ended September 30, 2025, were $65.63, compared to $75.99 for the same period in 2024.

Future Outlook and Strategy

• HighPeak Energy plans to average one to two drilling rigs and approximately one frac crew during the remainder of 2025 under its current development plan.
• The company is maintaining flexibility in its capital plan and will continue to evaluate drilling and completion activity on an economic basis, with future activity levels assessed monthly.
• The company announced the intention of its Board to initiate a process to evaluate certain strategic alternatives to maximize shareholder value, including a potential sale of the company.