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HighPeak Energy, Inc. Announces Fourth Quarter and Year-End 2024 Financial and Operating Results and Provides 2025 Guidance

1. HighPeak's 2024 sales volumes increased by 10% year-over-year. 2. Net income for 2024 was $95.1 million, with adjusted income at $144.8 million. 3. Debt was reduced by $120 million, dividends increased to $0.04 per share. 4. Proved reserves rose 29% to 199 million Boe, highlighting production efficiency. 5. 2025 guidance maintains discipline with anticipated production rates between 47,000-50,500 Boe/d.

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The significant increase in reserves and net income could drive investor confidence. Historical examples show similar financials lead to price surges in oil companies.

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FORT WORTH, Texas, March 10, 2025 (GLOBE NEWSWIRE) -- HighPeak Energy, Inc. (“HighPeak” or the “Company”) (NASDAQ: HPK) today announced financial and operating results for the quarter and the year ended December 31, 2024. In addition, HighPeak provided its 2025 guidance and capital budget, as approved by its Board of Directors. Highlights 2024 sales volumes averaged approximately 50.0 thousand barrels of crude oil equivalent per day (“MBoe/d”), representing a 10% increase year-over-year.The Company’s year-end 2024 estimated proved reserves were 199 million Boe (“MMBoe”), representing a 29% increase compared to year-end 2023.2024 net income was $95.1 million, or $0.67 per diluted share and EBITDAX (a non-GAAP financial measure defined and reconciled below) was $842.9 million, or $6.01 per diluted share. 2024 adjusted net income (a non-GAAP financial measure defined and reconciled below) was $144.8 million, or $1.05 per diluted share.2024 lease operating expenses averaged $7.23 per Boe, including workover expenses, representing a 17% decrease year-over-year.Reduced long-term debt by $120 million, paid $0.16 per share in dividends and repurchased over 2.4 million shares of common stock during 2024.Increased net acreage over 8%, organically replaced inventory in primary zones and successfully delineated additional sub $50 per barrel (“Bbl”) break-even inventory in the Middle Spraberry formation.Fourth quarter 2024 sales volumes averaged 50.2 MBoe/d, consisting of 86% liquids, representing a 1% increase over fourth quarter 2023.Fourth quarter 2024 net income was $9.0 million, or $0.06 per diluted share, and EBITDAX was $179.4 million, or $1.27 per diluted share.   Fourth quarter 2024 adjusted net income was $28.2 million, or $0.19 per diluted share. Recent Events On February 18, 2025, the Company’s Board of Directors declared a quarterly dividend of $0.04 per common share outstanding payable in March 2025.The Company’s Board of Directors authorized the extension of the repurchase authorization of up to $75.0 million of common stock through December 31, 2025, of which approximately $40 million remains available. HighPeak Chairman and CEO, Jack Hightower, said, “As promised, 2024 was a solid, level-set year for HighPeak. We ran a disciplined and efficient drilling program, reduced our capex budget by 40% from the prior year, increased production by 10%, beat and raised guidance on production, and reduced our operating costs and DC&E costs per foot year over year.  Furthermore, we were successful in improving well results across our acreage and unlocking additional value by delineating new zones, driving total proved reserves 30% higher compared to a year ago. Overall, our team continues to do a fantastic job enhancing the value of our asset base. "As we focus our attention on 2025, we will maintain capital discipline with our two-rig drilling program, ensuring steady operations in a dynamic market. Our focus on corporate efficiency will keep production flat while reducing capital expenditures by an additional 20%. One of our key objectives is to reduce interest expense and boost levered free cash flow by optimizing our capital structure. These efforts underscore our commitment to shareholder value, reflected in our strategy of debt reduction, consistent quarterly dividends, and opportunistic share buybacks." 2025 Development Outlook The Company expects to average two (2) drilling rigs and approximately one (1) frac crew during 2025 under its current development plan, assuming commodity prices and capital costs continue to stay in their current ranges. Production (Boe/d) • Average production rate47,000 – 50,500  Capex ($MM) • Net Operated Wells TIL52 – 56• Capital Expenditures, D,C,E&F$375 - $405• Capital Expenditures, Infrastructure/Other$40 - $50• 2025 HPK Development Capital Expenditures$415 - $455• One-Time Infrastructure Projects$33 - $35• 2025 Total Capital Expenditures$448 - $490  Unit Measures ($/Boe) • Lease Operating Expenses$7.00 - $7.50• General & Administrative$1.25 - $1.35   In addition to the Company’s Development Capital Expenditures, the company will invest approximately $33-$35 million in projects that will expand our field-wide low pressure gas gathering system, extend our in-field overhead electric power distribution system, provide access to additional gas sales outlets with other midstream partners, support lower operating expenses and future life of field development. Year-End 2024 Proved Reserves As of December 31, 2024, HighPeak Energy’s estimated proved reserves, prepared by Cawley, Gillespie & Associates, Inc., increased over 29% from December 31, 2023 to 199 MMBoe consisting of approximately 68% crude oil, 17% NGL and 15% natural gas.Proved developed reserves increased 36% to 108 MMBoe compared with December 31, 2023 and comprised 54% of the Company’s total proved reserves.The Company’s PV-10 (a non-GAAP financial measure defined and reconciled below) was approximately $3.4 billion at year end 2024 based on pricing guidelines established by the Securities and Exchange Commission (“SEC”). 2024 SEC pricing was $75.48 per Bbl of crude oil and $2.130 per MMBtu of natural gas, before adjustments for price differentials.As of December 31, 2024, the average adjusted prices realized over the remaining lives of the Company’s assets were $75.56 per Bbl of crude oil, $20.53 per Bbl of NGL and $0.072 per Mcf of natural gas.The Company’s 2024 reserve replacement ratio was 345%, an increase of 17% compared to the Company’s 2023 reserve replacement ratio.  SEC PRICING Crude Oil (MBbl) NGL (MBbl) Natural Gas (MMcf) Total (Mboe) PV-10 ($M)Proved developed producing59,394 21,709 112,734 99,892 $2,094Proved developed nonproducing6,238 1,044 5,668 8,227  198Total proved developed reserves65,632 22,753 118,402 108,119  2,292Proved undeveloped69,639 11,365 59,252 90,879  1,095Total proved reserves135,271 34,118 177,654 198,998 $3,387            Fourth Quarter 2024 Operational Update HighPeak’s sales volumes during the fourth quarter of 2024 averaged 50.2 MBoe/d, a 1% increase over the fourth quarter of 2023. Fourth quarter sales volumes consisted of approximately 72% crude oil and 86% liquids. Full-year 2024 sales volumes averaged 50.0 MBoe/d, a 10% increase over 2023 sales volumes. The Company averaged two drilling rigs and one frac crew during the fourth quarter, drilled 17 gross (16.9 net) horizontal wells and completed 18 gross (17.8 net) operated producing wells. At December 31, 2024, the Company had 21 gross (20.9 net) operated horizontal wells in various stages of drilling and completion. HighPeak President, Michael Hollis, commented, "HighPeak’s recent well results highlight the robust quality of our inventory, reinforcing confidence in our asset base. By efficiently expanding our consolidated acreage position, we’ve organically replenished our drilling inventory in our primary zones, positioning us for sustained success. Additionally, we are particularly encouraged by the performance of our Middle Spraberry wells, which we plan to build upon throughout 2025. Continued successful delineation of this zone has the potential to add over 200 additional sub-$50/Bbl breakeven locations." Fourth Quarter 2024 Financial Results HighPeak reported net income of $9.0 million for the fourth quarter of 2024, or $0.06 per diluted share, and EBITDAX of $179.4 million, or $1.27 per diluted share. HighPeak reported adjusted net income of $28.2 million for the fourth quarter of 2024, or $0.19 per diluted share. Fourth quarter average realized prices were $70.46 per Bbl of crude oil, $22.30 per Bbl of NGL and $0.29 per Mcf of natural gas, resulting in an overall realized price of $50.83 per Boe, or 72% of the weighted average of NYMEX crude oil prices, excluding the effects of derivatives. HighPeak’s cash costs for the fourth quarter were $11.48 per Boe, including lease operating expenses of $6.81 per Boe, workover expenses of $0.50 per Boe, production and ad valorem taxes of $2.87 per Boe and G&A expenses of $1.30 per Boe. As a result, the Company’s unhedged EBITDAX per Boe was $39.35 per Boe, or 77% of the overall realized price per Boe for the quarter, excluding the effects of derivatives. HighPeak’s fourth quarter 2024 capital expenditures to drill, complete, equip, provide facilities and for infrastructure were $152.5 million.  Hedging Crude oil. As of December 31, 2024, HighPeak had the following outstanding crude oil derivative instruments and the weighted average crude oil prices and premiums payable per Bbl:           Swaps Collars, Enhanced Collars & Deferred Premium PutsSettlement Month Settlement Year Type of Contract Bbls Per Day Index Price per Bbl Floor or Strike Price per Bbl Ceiling Price per Bbl Deferred Premium Payable per BblCrude Oil:                    Jan - Mar 2025 Swap 5,500 WTI $76.37 $— $— $—Jan - Mar 2025 Collar 8,000 WTI $— $65.00 $90.00 $2.12Jan - Mar 2025 Put 2,000 WTI $— $58.00 $— $5.00Apr - Jun 2025 Swap 5,500 WTI $76.37 $— $— $—Apr - Jun 2025 Collar 7,000 WTI $— $65.00 $90.08 $2.28Apr - Jun 2025 Put 2,000 WTI $— $58.00 $— $5.00Jul - Sep 2025 Swap 3,000 WTI $75.85 $— $— $—Jul - Sep 2025 Collar 7,000 WTI $— $65.00 $90.08 $2.28Jul - Sep 2025 Put 2,000 WTI $— $58.00 $— $5.00                      The Company’s crude oil derivative contracts detailed above are based on reported settlement prices on the New York Mercantile Exchange for West Texas Intermediate pricing. Natural gas. In February 2025, the Company entered into the following natural gas derivative instruments, specifically HH fixed price swaps at $4.43 per MMBtu for 30,000 MMBtu per day for March 2025 through February 2026. Settlement Month Settlement Year Type of Contract MMBtu Per Day Index Price per MMBtuNatural Gas:           Jan – Mar 2025 Swap 10,333 HH $4.43Apr – Jun 2025 Swap 30,000 HH $4.43Jul – Sep 2025 Swap 30,000 HH $4.43Oct – Dec 2025 Swap 30,000 HH $4.43Jan – Mar 2026 Swap 19,667 HH $4.43 Dividends During the fourth quarter of 2024, HighPeak’s Board of Directors approved a quarterly dividend of $0.04 per share, or $5.0 million in dividends paid to stockholders during the quarter. In addition, in February 2025, the Company’s Board of Directors declared a quarterly dividend of $0.04 per share, or approximately $5.0 million in dividends, to be paid on March 25, 2025, to stockholders of record on March 3, 2025.   Conference Call HighPeak will host a conference call and webcast on Tuesday, March 11, 2025, at 10:00 a.m. Central Time for investors and analysts to discuss its results for the fourth quarter of 2024 and its 2025 operating plan. Conference call participants may register for the call here. Access to the live audio-only webcast and replay of the earnings release conference call may be found here. A live broadcast of the earnings conference call will also be available on the HighPeak Energy website at www.highpeakenergy.com under the “Investors” section of the website. A replay will also be available on the website following the call. When available, a copy of the Company’s earnings release, investor presentation and Annual Report on Form 10-K may be found on its website at www.highpeakenergy.com. Conference Participation HighPeak Energy will participate in-person at the upcoming 37th Annual Roth Conference to be held from March 16-18, 2025, located in Dana Point, California. About HighPeak Energy, Inc. HighPeak Energy, Inc. is a publicly traded independent crude oil and natural gas company, headquartered in Fort Worth, Texas, focused on the acquisition, development, exploration and exploitation of unconventional crude oil and natural gas reserves in the Midland Basin in West Texas. For more information, please visit our website at www.highpeakenergy.com. Cautionary Note Regarding Forward-Looking Statements The information in this press release contains forward-looking statements that involve risks and uncertainties. When used in this document, the words “believes,” “plans,” “expects,” “anticipates,” “forecasts,” “intends,” “continue,” “may,” “will,” “could,” “should,” “future,” “potential,” “estimate” or the negative of such terms and similar expressions as they relate to HighPeak Energy, Inc. (“HighPeak Energy” or the “Company”) are intended to identify forward-looking statements, which are generally not historical in nature. The forward-looking statements are based on the Company's current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates. Although the Company believes that the expectations and assumptions reflected in the forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond the Company's control. For example, the Company’s review of strategic alternatives may not result in a sale of the Company, a recommendation that a transaction occur or result in a completed transaction, and any transaction that occurs may not increase shareholder value, in each case as a result of such risks and uncertainties. These risks and uncertainties include, among other things, the results of the strategic review being undertaken by the Company’s Board and the interest of prospective counterparties, the Company’s ability to realize the results contemplated by its 2025 guidance, volatility of commodity prices, product supply and demand, the impact of a widespread outbreak of an illness, such as the coronavirus disease pandemic, on global and U.S. economic activity, competition, the ability to obtain environmental and other permits and the timing thereof, other government regulation or action, the ability to obtain approvals from third parties and negotiate agreements with third parties on mutually acceptable terms, litigation, the costs and results of drilling and operations, availability of equipment, services, resources and personnel required to perform the Company's drilling and operating activities, access to and availability of transportation, processing, fractionation, refining and storage facilities, HighPeak Energy's ability to replace reserves, implement its business plans or complete its development activities as scheduled, access to and cost of capital, the financial strength of counterparties to any credit facility and derivative contracts entered into by HighPeak Energy, if any, and purchasers of HighPeak Energy's oil, natural gas liquids and natural gas production, uncertainties about estimates of reserves, identification of drilling locations and the ability to add proved reserves in the future, the assumptions underlying forecasts, including forecasts of production, expenses, cash flow from sales of oil and gas and tax rates, quality of technical data, environmental and weather risks, including the possible impacts of climate change, cybersecurity risks and acts of war or terrorism. These and other risks are described in the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K and other filings with the SEC. The Company undertakes no duty to publicly update these statements except as required by law. Reserve engineering is a process of estimating underground accumulations of hydrocarbons that cannot be measured in an exact way. The accuracy of any reserve estimate depends on the quality of available data, the interpretation of such data and price and cost assumptions made by reserve engineers. Reserves estimates included herein may not be indicative of the level of reserves or PV-10 value of oil and natural gas production in the future, as they are based on 2024 SEC prices which are different than current commodity prices. In addition, the results of drilling, testing and production activities may justify revisions of estimates that were made previously. If significant, such revisions could impact HighPeak’s strategy and change the schedule of any further production and development drilling. Accordingly, reserve estimates may differ significantly from the quantities of oil and natural gas that are ultimately recovered. Use of Projections The financial, operational, industry and market projections, estimates and targets in this press release and in the Company’s guidance (including production, operating expenses and capital expenditures in future periods) are based on assumptions that are inherently subject to significant uncertainties and contingencies, many of which are beyond the Company’s control. The assumptions and estimates underlying the projected, expected or target results are inherently uncertain and are subject to a wide variety of significant business, economic, regulatory and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the financial, operational, industry and market projections, estimates and targets, including assumptions, risks and uncertainties described in “Cautionary Note Regarding Forward-Looking Statements” above. These projections are speculative by their nature and, accordingly, are subject to significant risk of not being actually realized by the Company. Projected results of the Company for 2025 are particularly speculative and subject to change. Actual results may vary materially from the current projections, including for reasons beyond the Company’s control. The projections are based on current expectations and available information as of the date of this release. The Company undertakes no duty to publicly update these projections except as required by law. Drilling Locations The Company has estimated its drilling locations based on well spacing assumptions and upon the evaluation of its drilling results and those of other operators in its area, combined with its interpretation of available geologic and engineering data. The drilling locations actually drilled on the Company’s properties will depend on the availability of capital, regulatory approvals, commodity prices, costs, actual drilling results and other factors. Any drilling activities conducted on these identified locations may not be successful and may not result in additional proved reserves. Further, to the extent the drilling locations are associated with acreage that expires, the Company would lose its right to develop the related locations. HighPeak Energy, Inc.Unaudited Condensed Consolidated Balance Sheet Data(In thousands)  December 31, 2024 2023Current assets:     Cash and cash equivalents$86,649  $194,515 Accounts receivable 85,242   94,589 Inventory 10,952   7,254 Derivative instruments 7,582   31,480 Prepaid expenses 4,587   995 Total current assets 195,012   328,833 Crude oil and natural gas properties, using the successful efforts method of accounting:     Proved properties 3,959,545   3,338,107 Unproved properties 70,868   72,715 Accumulated depletion, depreciation and amortization (1,184,684)  (684,179)Total crude oil and natural gas properties, net 2,845,729   2,726,643 Other property and equipment, net 3,201   3,572 Derivative instruments —   16,059 Other noncurrent assets 19,346   5,684 Total assets$3,063,288  $3,080,791       Current liabilities:     Current portion of long-term debt, net$120,000  $120,000 Accounts payable – trade 74,011   63,583 Accrued capital expenditures 35,170   39,231 Revenues and royalties payable 26,838   29,724 Other accrued liabilities 22,196   19,613 Derivative instruments 5,380   13,054 Operating leases 719   528 Advances from joint interest owners 316   262 Accrued interest —   1,398 Total current liabilities 284,630   287,393 Noncurrent liabilities:     Long-term debt, net 928,384   1,030,299 Deferred income taxes 232,398   197,068 Asset retirement obligations 14,750   13,245 Operating leases 670   — Derivative instruments —   65 Commitments and contingencies           Stockholders’ equity     Common stock 13   13 Additional paid-in capital 1,166,609   1,189,424 Retained earnings 435,834   363,284 Total stockholders’ equity 1,602,456   1,552,721 Total liabilities and stockholders’ equity$3,063,288  $3,080,791        HighPeak Energy, Inc.Unaudited Condensed Consolidated Statements of Operations(in thousands, except per share data)                 Three Months EndedDecember 31, Year EndedDecember 31, 2024 2023 2024 2023Operating revenues:               Crude oil sales$232,881  $296,140  $1,060,476  $1,086,598 NGL and natural gas sales 1,925   5,013   8,938   24,695 Total operating revenues 234,806   301,153   1,069,414   1,111,293 Operating costs and expenses:               Crude oil and natural gas production 33,762   37,666   132,244   145,362 Production and ad valorem taxes 13,267   14,077   59,677   58,472 Exploration and abandonments 449   862   1,476   5,234 Depletion, depreciation and amortization 105,631   132,862   500,752   424,424 Accretion of discount 244   162   966   522 General and administrative 6,001   4,646   20,392   16,598 Stock-based compensation 1,375   3,862   12,701   25,957 Total operating costs and expenses 160,729   194,137   728,208   676,569 Other expense 390   220   3,795   8,262 Income from operations 73,687   106,796   337,411   426,462 Interest income 1,721   1,985   8,685   2,908 Interest expense (39,508)  (44,623)  (168,712)  (147,901)(Loss) gain on derivative instruments, net (23,053)  58,500   (46,464)  27,602 Loss on extinguishment of debt —   —   —   (27,300)Income before income taxes 12,847   122,658   130,920   281,771 Provision for income taxes 3,866   27,654   35,851   65,905 Net income$8,981  $95,004  $95,069  $215,866                 Earnings per share:               Basic net income$0.07  $0.68  $0.69  $1.64 Diluted net income$0.06  $0.66  $0.67  $1.58                 Weighted average shares outstanding:               Basic 124,348   126,242   125,281   117,956 Diluted 128,073   130,579   129,205   123,020                 Dividends declared per share$0.04  $0.025  $0.16  $0.10                  HighPeak Energy, Inc.Unaudited Condensed Consolidated Statements of Cash Flows(in thousands)       Year Ended December 31, 2024 2023CASH FLOWS FROM OPERATING ACTIVITIES:     Net income$95,069  $215,866 Adjustments to reconcile net income to net cash provided by operations:     Provision for deferred income taxes 35,330   65,905 Loss on extinguishment of debt —   27,300 Loss (gain) on derivative instruments 46,464   (27,602)Cash paid on settlement of derivative instruments (14,246)  (24,194)Amortization of debt issuance costs 8,278   11,411 Amortization of discounts on long-term debt 9,865   15,140 Stock-based compensation expense 12,701   25,957 Accretion expense 966   522 Depletion, depreciation and amortization 500,752   424,424 Exploration and abandonment expense 620   4,242 Changes in operating assets and liabilities:     Accounts receivable 9,347   2,007 Prepaid expenses, inventory and other assets (19,474)  6,923 Accounts payable, accrued liabilities and other current liabilities 4,719   8,488 Net cash provided by operating activities 690,391   756,389 CASH FLOWS FROM INVESTING ACTIVITIES:     Additions to crude oil and natural gas properties (604,828)  (1,009,855)Changes in working capital associated with crude oil and natural gas property additions (1,294)  (100,802)Acquisitions of crude oil and natural gas properties (14,844)  (15,085)Proceeds from sales of properties 339   — Other property additions (216)  (193)Net cash used in investing activities (620,843)  (1,125,935)CASH FLOWS FROM FINANCING ACTIVITIES:     Repayments under Term Loan Credit Agreement (120,000)  — Repurchased shares under buyback program (35,166)  — Dividends paid (20,058)  (11,864)Dividend equivalents paid (2,133)  (1,251)Debt issuance costs (58)  (28,444)Proceeds from the exercises of warrants 1   4,028 Borrowings under Term Loan Credit Agreement, net of discount —   1,170,000 Borrowings under Prior Credit Agreement —   255,000 Repayments under Prior Credit Agreement —   (525,000)Repayments of 10.000% Senior Notes and 10.625% Senior Notes —   (475,000)Premium on extinguishment of debt —   (4,457)Proceeds from issuance of common stock —   155,768 Stock offering costs —   (5,371)Proceeds from exercises of stock options —   148 Net cash (used in) provided by financing activities (177,414)  533,557 Net (decrease) increase in cash and cash equivalents (107,866)  164,011 Cash and cash equivalents, beginning of period 194,515   30,504 Cash and cash equivalents, end of period$86,649  $194,515        HighPeak Energy, Inc.Unaudited Summary Operating Highlights             Three Months EndedDecember 31, Year EndedDecember 31, 2024 2023 2024 2023Average Daily Sales Volumes:           Crude oil (Bbls) 35,926   40,624   37,914   38,041 NGLs (Bbls) 7,289   5,262   6,241   4,239 Natural gas (Mcf) 42,007   24,395   34,828   19,777 Total (Boe) 50,216   49,952   49,960   45,577             Average Realized Prices (excluding effects of derivatives):           Crude oil per Bbl$70.46  $79.24  $76.42  $78.26 NGL per Bbl$22.30  $19.93  $22.06  $21.51 Natural gas per Mcf$0.29  $1.51  $0.49  $1.56 Total per Boe$50.83  $65.53  $58.48  $66.80             Margin Data ($ per Boe):           Average price, excluding effects of derivatives$50.83  $65.53  $58.48  $66.80 Lease operating expenses (6.81)  (7.53)  (6.76)  (8.04)Expense workovers (0.50)  (0.66)  (0.47)  (0.70)Production and ad valorem taxes (2.87)  (3.06)  (3.26)  (3.51)General and administrative expenses (1.30)  (1.01)  (1.12)  (1.00) $39.35  $53.27  $46.87  $53.55              HighPeak Energy, Inc.Unaudited Earnings Per Share Details             Three Months EndedDecember 31, Year EndedDecember 31, 2024 2023 2024 2023Net income as reported$8,981  $95,004  $95,069  $215,866 Participating basic earnings (861)  (9,103)  (9,155)  (21,890)Basic earnings attributable to common shareholders 8,120   85,901   85,914   193,976 Reallocation of participating earnings 5   133   108   334 Diluted net income attributable to common shareholders$8,125  $86,034  $86,022  $194,310             Basic weighted average shares outstanding 124,348   126,242   125,281   117,956 Dilutive warrants and unvested stock options 1,571   2,178   1,770   2,905 Dilutive unvested restricted stock 2,154   2,159   2,154   2,159 Diluted weighted average shares outstanding 128,073   130,579   129,205   123,020             Net income per share attributable to common shareholders:           Basic$0.07  $0.68  $0.69  $1.64 Diluted$0.06  $0.66  $0.67  $1.58              HighPeak Energy, Inc.Unaudited Reconciliation of Net Income to EBITDAX, Discretionary Cash Flow and Net Cash Provided by Operations(in thousands)  Three Months EndedDecember 31, Year EndedDecember 31, 2024 2023 2024 2023Net income$8,981  $95,004  $95,069  $215,866 Interest expense 39,508   44,623   168,712   147,901 Interest income (1,721)  (1,985)  (8,685)  (2,908)Income tax expense 3,866   27,654   35,851   65,905 Depletion, depreciation and amortization 105,631   132,862   500,752   424,424 Accretion of discount 244   162   966   522 Exploration and abandonment expense 449   862   1,476   5,234 Stock based compensation 1,375   3,862   12,701   25,957 Derivative related noncash activity 20,704   (61,662)  32,218   (51,796)Other expense 390   220   3,795   8,262 Loss on extinguishment of debt —   —   —   27,300 EBITDAX 179,427   241,602   842,855   866,667 Cash interest expense (34,949)  (40,084)  (150,569)  (125,807)Other (a) 1,682   1,398   3,513   (1,889)Discretionary cash flow 146,160   202,916   695,799   738,971 Changes in operating assets and liabilities (6,642)  31,731   (5,408)  17,418 Net cash provided by operating activities$139,518  $234,647  $690,391  $756,389             (a) includes interest income net of current tax expense, other expense and operating portion of exploration and abandonment expenses.             HighPeak Energy, Inc.Unaudited Reconciliation of Net Income to Adjusted Net Income(in thousands, except per share data)  Three Months Ended December 31, 2024 Year Ended December 31, 2024 Amounts Amounts per Diluted Share Amounts Amounts per Diluted ShareNet income$8,981  $0.06  $95,069  $0.69 Derivative loss, net 23,053   0.15   46,464   0.34 Stock-based compensation 1,375   0.01   12,701   0.09 Other expense 390   0.01   3,795   0.03 Income tax adjustment for above items * (5,584)  (0.04)  (13,222)  (0.10)Adjusted net income$28,215  $0.19  $144,807  $1.05             * Assuming 21% statutory tax rate            HighPeak Energy, Inc.Unaudited Reconciliation of Standardized Measure to PV-10(in thousands)   As of December 31, 2024Total ProvedStandardized measure$2,994,997Present value of future income taxes and certain abandonment costs discounted at 10% 392,077Present value of estimated future cash flows (PV-10)$3,387,074    HighPeak Energy, Inc.Unaudited Reserve Replacement Computations   MBoeProved Reserves on December 31, 2023154,162 Extensions, discoveries and revisions63,121 Production(18,285)Proved Reserves on December 31, 2024198,998   Reserve Replacement with the drill bit345%    Investor Contact: Ryan HightowerVice President, Business Development817.850.9204 rhightower@highpeakenergy.com Source: HighPeak Energy, Inc.

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