HighPeak Energy, Inc.

HighPeak did not give a full income-statement table on the call, but management said first-half 2026 production averaged 45.5 thousand BOEs per day, above the high end of guidance, and unit LOE averaged $7.56 per BOE, about 13% below the midpoint of full-year guidance. The company said it invested $185.9 million in the first six months of 2026 and generated approximately $281 million of EBITDAX in that period. Management also said the quarter absorbed approximately $55 million of net cash hedge losses, while adjusted EBITDA and free cash flow both grew sequentially on stronger realized oil prices and steady production. Looking ahead, the company expects capital spending to decline meaningfully in the second half of 2026, with the full-year plan unchanged; management said it will continue to amortize the term loan at $30 million per quarter and keep enough cash on hand to handle variability.

CEO Michael Hollis struck a confident, disciplined tone throughout the call, emphasizing execution, cost control, and capital efficiency. He said the company accelerated some completions to lock in attractive service pricing and get more work done sooner, and framed the workover program as a high-return way to maximize existing assets. He also said HighPeak is positioned to benefit from stronger commodity prices while still protecting cash flow through a solid hedge program and a disciplined approach to risk.

CFO Steven Tholen mainly handled the opening and governance remarks, noting the company’s use of non-GAAP measures and pointing investors to the release and presentation for reconciliations. In Q&A, management said the balance sheet had $146 million of cash at quarter-end and confirmed the company will amortize the term loan at $30 million per quarter. Hollis added that while cash flow should exceed that amortization at current oil prices, the company wants to be cautious about prepaying too much because excess principal cannot be reborrowed; they also emphasized that hedges on most oil volumes remain in the mid-$60s per barrel and that extra swaps were added to reduce calendar spread and gas-basis risk.

Analysts focused on the impact of accelerating completions, the workover program, gas pricing/takeaway, and balance-sheet liquidity. Management said the pulled-forward completions created more frac-impacted volumes in Q2, but full-year volumes should stay strong and second-half capital spending should fall; they also said 2027 should look a lot like 2026 because the rig program and completion cadence are largely set. On workovers, management said there will always be opportunities, but the first half captured most of the quick wins already banked. On gas, they said Waha differentials improved from the second quarter’s roughly negative $1.50 per MCF and that takeaway is not a problem for the next 12 months, with realizations expected to improve in the second half.