HighPeak Energy, Inc. (HighPeak Energy) operates as an independent crude oil and natural gas exploration and production company.
The company explores for, develops and produces crude oil, NGL and natural gas in the Permian Basin in West Texas, more specifically, the Midland Basin primarily in Howard and Borden counties, Texas, and to a lesser extent Scurry and Mitchell counties, which lie within the northeastern part of the crude oil-rich Midland Basin. The company's acreage is composed of two...
HighPeak Energy, Inc. (HighPeak Energy) operates as an independent crude oil and natural gas exploration and production company.
The company explores for, develops and produces crude oil, NGL and natural gas in the Permian Basin in West Texas, more specifically, the Midland Basin primarily in Howard and Borden counties, Texas, and to a lesser extent Scurry and Mitchell counties, which lie within the northeastern part of the crude oil-rich Midland Basin. The company's acreage is composed of two core areas, Flat Top primarily in the northern portion of Howard County extending into southern Borden County, southwest Scurry County and northwest Mitchell County and Signal Peak in the southern portion of Howard County.
HighPeak Energy focuses on the Midland Basin and specifically the Howard and Borden counties area of the Midland Basin. The company's assets include certain rights, title and interests in crude oil and natural gas assets located primarily in Howard and Borden counties, Texas, and to a lesser extent, Scurry and Mitchell counties, Texas.
As of December 31, 2024, the company’s assets consisted of two generally contiguous leasehold positions of approximately 154,368 gross (141,907 net) acres covering various subsurface depths, approximately 64% of which were held by production, with an average working interest of approximately 92%. The company operates approximately 97% of the net acreage across the company’s assets. The majority of HighPeak Energy’s horizontal development drilling plan is currently focused on the Wolfcamp A and Lower Spraberry formations. The company utilizes multi-well pad development to lower drilling and completion cycle times and create infrastructure and facility economies of scale to reduce overall costs, optimize and maximize crude oil and natural gas recoveries, return on investment and value creation.
Properties
The company’s assets are located in the northeastern part of the Midland Basin. The majority of the acreage position is located across the eastern half of Howard and Borden counties recently extending into far southwestern Scurry County and far northwestern Mitchell County in two largely contiguous acreage blocks, the northern position of which is referred to as the Flat Top area and the southern position of which is referred to as the Signal Peak area. The Midland Basin is part of the Permian Basin of West Texas and Eastern New Mexico. The Permian Basin covers an area of about 96,000 square miles and comprises five sub-regions including the Midland Basin, the Central Basin Platform, the Delaware Basin, the Northwest Shelf and the Eastern Shelf. The Central Basin Platform (‘CBP’) is a central uplift, with the Delaware Basin located to the west of the CBP, and the Midland Basin located to the east of the CBP. The bulk of the Permian Basin’s increase in crude oil production since 2007 has come from several target zones including the Spraberry and Wolfcamp formations. The Permian Basin has produced billions of barrels of equivalent crude oil and natural gas and is estimated by the United States Geologic Survey to contain significant remaining hydrocarbon potential.
HighPeak Energy generally developed its properties using two (2) drilling rigs and one (1) frac crew during the year ended December 31, 2024, ending the year using two (2) drilling rigs and one (1) frac crew. The company expects to average two (2) drilling rigs and approximately one (1) frac crew during 2025 under the company’s current development plan.
Facilities
Production facilities related to HighPeak Energy’s properties are located near the producing wells and consist of salt-water disposal wells and related facilities, a salt-water disposal pipeline systems throughout Flat Top and Signal Peak, storage tanks, two-phase and/or three-phase separation equipment, flowlines, metering equipment and safety systems. Predominant artificial lift methods include electrical submersible pumps with some rod pumps, gas lift and plunger lifts. HighPeak Energy’s mostly contiguous acreage position allows for optimized capital expenditures for production facilities and associated water handling infrastructure.
The company's properties are well serviced by existing crude oil, natural gas and water infrastructure and gathering systems. The majority of the company's crude oil production in Flat Top is transported by pipeline while the majority of the company's crude oil in Signal Peak is transported by truck. The natural gas production from the company's properties is gathered by third-party processors with the majority of the natural gas production processed to extract NGL. The extracted liquids and residue natural gas are sold to various intrastate and interstate markets on a competitive pricing basis.
Marketing and Customers
For the year ended December 31, 2024, the company's major customers were DK Trading & Supply, LLC ('Delek') and Energy Transfer Crude Marketing, LLC ('ETC').
Seasonality of Business
Demand for natural gas is typically higher in the fourth and first quarters resulting in higher prices while the demand for crude oil is typically higher during the second and third quarters (year ended December 2024).
Regulation of the Crude Oil and Natural Gas Industry
In addition to the regulation of natural gas pipeline transportation, the FERC has jurisdiction over the purchase or sale of natural gas or the purchase or sale of transportation services subject to the FERC's jurisdiction pursuant to the Energy Policy Act of 2005. Under this law, it is unlawful for 'any entity,' including producers, such as the company, that are otherwise not subject to the FERC's jurisdiction under the Natural Gas Act of 1938 to use any deceptive or manipulative device or contrivance in connection with the purchase or sale of natural gas or the purchase or sale of transportation services subject to regulation by the FERC, in contravention of rules prescribed by the FERC. In addition to the FERC's regulations, the company is required to observe anti-market manipulation laws with regard to the company's physical sales of energy commodities.
History
HighPeak Energy, Inc. was founded in 2019. The company was incorporated in 2019.