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HighPeak Energy Inc. (HPK-12.22%) has filed its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing details HighPeak Energy's operations in the Permian Basin, focusing on crude oil and natural gas exploration and production. The company operates primarily in Howard, Borden, Scurry, and Mitchell Counties, Texas, with approximately 154,368 gross acres under lease.
HighPeak Energy reported net income of $95.1 million for 2024, a decrease from $215.9 million in 2023. This decline is attributed to several factors, including increased depreciation, depletion, and amortization expenses, a significant loss on derivative instruments, and increased interest expenses.
The company's revenue was impacted by a 12% decrease in average realized commodity prices per barrel of oil equivalent, despite a 10% increase in daily sales volumes.
HighPeak Energy's capital expenditures for 2024 were primarily allocated to drilling, completion, and infrastructure projects, with a focus on the Wolfcamp A and Lower Spraberry formations.
The company continues to face challenges from volatile commodity prices, supply chain constraints, and regulatory changes. HighPeak Energy emphasizes its strategic focus on maintaining operational efficiency and financial stability.
HighPeak Energy's board has extended the company's stock repurchase program through December 31, 2025, allowing for the repurchase of up to $75 million in common stock.
The company announced quarterly dividends of $0.04 per share throughout 2024, reflecting its commitment to returning value to shareholders.
HighPeak Energy is evaluating strategic alternatives, including a potential sale of the company, to maximize shareholder value. The process remains in preliminary stages, with no decisions made regarding potential transactions.
The filing also highlights the company's focus on cybersecurity and environmental, social, and governance (ESG) initiatives, addressing risks and opportunities in these areas.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the HighPeak Energy Inc. annual 10-K report dated March 10, 2025. To report an error, please email earnings@qz.com.