HighPeak Energy, Inc.
HighPeak Energy, Inc. is an independent oil and gas exploration and production company focused on developing crude oil, NGL and natural gas reserves in the Midland Basin of West Texas. Its business is centered on operating contiguous acreage positions in Howard, Borden, Scurry and Mitchell counties and converting that acreage into horizontal wells and production volumes.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueSales of crude oil produced from the company's Midland Basin wells.
Natural gas liquids extracted through gathering and processing and sold separately.
Dry natural gas produced and sold from operated wells.
Products
Reported · share of revenue- Crude Oil Sales91.0 %
- Natural Gas and NGL Sales9.0 %
Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
HighPeak sells most of its production to a very small number of crude oil and gas purchasers, which is typical for upstream E&P companies that market through a limited set of counterparties and midstream channels. The company’s end demand is ultimately tied to refiners, processors and commodity markets, but its immediate customers are the purchasers that lift and market its production. Concentration is high: two purchasers accounted for roughly 90% of revenue in 2025, making customer continuity a key operating issue.
Large buyers that purchase most of the company's crude oil, NGL and natural gas production and provide market access.
Gathering, processing and transportation partners that enable gas handling and NGL extraction before sale.
Ultimate end users of the hydrocarbons sold through the company's marketing chain.
Strategy
HighPeak is prioritizing disciplined development of its contiguous Midland Basin acreage, using horizontal drilling and a relatively small rig/frac fleet to convert inventory into production. Management is also focused on funding capital spending with operating cash flow, balance sheet liquidity and credit capacity while maintaining flexibility to adjust activity to market conditions.
Concentrated acreage and long-lateral wells support efficient capital deployment and reserve conversion.
The business is capital intensive and sensitive to commodity prices, so funding flexibility is essential.
Infrastructure and processing capacity affect realized prices, throughput and well economics.
Geography
HighPeak’s operations are concentrated in the Permian Basin, specifically the Midland Basin in West Texas. Its core acreage is primarily in Howard and Borden counties, with additional exposure in Scurry and Mitchell counties, so the business is highly tied to Texas drilling, infrastructure and regulatory conditions.
Risks
HighPeak’s results are highly exposed to commodity prices, customer concentration and the availability of drilling services, equipment and personnel. The company also faces regulatory, environmental, cybersecurity and financing risks that are common in upstream oil and gas, but are amplified by its concentrated asset base and capital-intensive development model.
- Commodity price volatilityImpact: HighLikelihood: High
Upstream cash flows depend on oil and gas prices, which drive realized revenue and drilling returns.
Exposure - Financing and interest-rate riskImpact: HighLikelihood: High
The business is capital intensive and uses debt facilities, so higher rates or tighter credit can pressure funding.
Exposure: Senior Credit Facility and Term Loan
- Customer concentrationImpact: HighLikelihood: Medium
Two purchasers accounted for about 90% of 2025 revenue, so losing a major buyer could quickly reduce sales access.
Exposure - Service and labor availabilityImpact: HighLikelihood: Medium
The company needs rigs, frac crews, equipment and skilled personnel to execute its capital plan on time and within budget.
Exposure: Drilling and completion activity
- Environmental and regulatory complianceImpact: MediumLikelihood: Medium
Oil and gas operations are subject to permitting, safety, emissions and hydraulic fracturing rules that can add cost or delay wells.
Exposure: Texas and federal upstream operations
- Cybersecurity and infrastructure disruptionImpact: MediumLikelihood: Medium
Operations rely on information systems and third-party infrastructure, making outages or attacks potentially disruptive.
Exposure: Operational systems and field infrastructure
Accounting
Judgemental itemsEstimated proved reserves determine DD&A rates and can materially affect earnings if assumptions change.
Impact: Production profile and depreciation expense
Commodity price declines or reserve revisions can trigger write-downs of oil and gas properties.
Impact: Non-cash charges and asset base
Future plugging and abandonment costs require judgment on timing, inflation and discount rates.
Impact: Liabilities and accretion expense
Commodity hedges are measured at fair value and can create earnings swings as prices move.
Impact: Reported gains/losses and cash flow protection
NOLs, depletion and industry tax deductions affect cash taxes and effective tax rate.
Impact: Tax expense and deferred tax balances
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Last updated: 24/09/2026