HighPeak Energy, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported a net loss of $55.7 million ($0.44 per diluted share) for the quarter ended September 30, 2026, compared to a net loss of $18.3 million ($0.15 per diluted share) in the same period in 2025.
• Reported adjusted net income of $38.5 million ($0.32 per diluted share) for the quarter.
• Reported EBITDAX of $163.8 million ($1.23 per diluted share) for the quarter.
• Generated free cash flow of $22.4 million for the quarter; free cash flow before changes in working capital was $58.4 million.
• Total operating revenues were $256.8 million for the quarter, up from $208.7 million in the prior year period.
• Average realized prices (excluding derivatives) were $63.18 per Boe for the quarter, compared to $47.43 per Boe in the prior year.
• Average realized prices (including derivatives) were $57.94 per Boe for the quarter.
• Cash costs were $17.64 per Boe for the quarter, including lease operating expenses of $6.70 per Boe.
• Unhedged EBITDAX per Boe was $45.54 for the quarter.
• Total capital expenditures, excluding acquisitions, were $71.1 million for the quarter.
• Reduced debt by $30 million during the quarter.
• Cash and cash equivalents were $117.4 million as of September 30, 2026, down from $162.1 million as of December 31, 2025.
• Long-term debt, net, was $1.04 billion as of September 30, 2026, down from $1.13 billion as of December 31, 2025.

Guidance and Future Outlook:

• Updated 2026 average daily production guidance to a range of 44,500 – 45,500 Boe/d.
• Updated 2026 lease operating expenses guidance to a range of $8.00 – $8.25 per Boe.
• Updated 2026 total capital expenditures guidance to a range of $310 – $320 million.
• Plans to maintain steady drilling activity and reinvest efficiency gains into high-return opportunities rather than releasing rigs.
• Anticipates closing a comprehensive refinancing transaction later in the month of the announcement (October 2026).

Business Segments and Product Lines:

• Sales volumes averaged 44.2 MBoe/d during the third quarter, consisting of approximately 67% crude oil and 84% liquids.
• Drilled 9 gross (8.6 net) company-operated horizontal wells and completed 5 gross (4.8 net) company-operated horizontal wells.
• Turned in line 13 gross (12.8 net) company-operated producing wells.
• Had 18 gross (13.3 net) horizontal wells in progress as of September 30, 2026, including 16 gross (11.4 net) in various stages of completion.
• Average realized crude oil price was $86.86 per Bbl, NGL was $22.20 per Bbl, and natural gas was $1.42 per Mcf (excluding derivatives).

Market and Competitive Landscape:

• The company operates in the Midland Basin in West Texas.
• Derivative contracts are based on WTI Cushing, NYMEX WTI Roll, and Argus WTI Midland pricing indices.
• Natural gas derivative contracts are based on Henry Hub (HH) and WAHA Hub pricing indices.

Risks and Challenges:

• Risks include volatility of commodity prices, political instability, armed conflicts, product supply and demand, and OPEC+ policy decisions.
• Potential impacts from inflationary pressures on oilfield goods, services, and personnel costs.
• Risks related to obtaining environmental permits, regulatory approvals, and third-party agreements.
• Risks associated with the ability to replace reserves, implement business plans, and the quality of reserve estimates.
• Specific risk that the announced comprehensive refinancing (preferred equity investment and new credit facility) may not be completed on terms contemplated or at all.
• Risks regarding the financial strength of counterparties to credit facilities and derivative contracts.

Management Commentary and Tone:

• President and CEO Michael Hollis stated the third quarter was important, with the team executing at a high level, delivering production above expectations, and improving efficiency.
• Management expressed confidence that the pending refinancing dramatically improves the capital structure and strengthens the balance sheet.
• Management emphasized a continued focus on capital discipline, corporate efficiencies, and creating long-term shareholder value.
• The tone indicated a transition from a "finish line" mindset to viewing recent achievements as a "foundation for continued success."

Other Key Points:

• On October 6, 2026, announced a transformational comprehensive refinancing involving a $450 million preferred equity investment and a new $800 million credit facility.
• The refinancing will pay off the existing $1.2 billion term loan upon closing.
• No dividends were declared for the quarter ended September 30, 2026, compared to $0.04 per share in the same period in 2025.
• Conference call and webcast scheduled for November 10, 2026, at 10:00 a.m. Central Time.
• Nine-month 2026 net loss was $100.9 million ($0.80 per diluted share), compared to net income of $44.2 million ($0.32 per diluted share) in the same period in 2025.
• Nine-month 2026 free cash flow was $45.9 million, compared to a negative $30.4 million in the same period in 2025.