# HighPeak Energy, Inc. > Clarifo company profile — qualitative business description generated from > the company's filings. Financial statements, charts and ratios are > available on Clarifo (https://www.clarifo.com/en/companies/HighPeak Energy, Inc.). ## Overview 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. ## Products & services • Crude oil exploration, development and production • Natural gas exploration, development and production • NGL production and sales from gas processing • Horizontal drilling and completion of Midland Basin wells • Leasehold and acreage development in West Texas - **Crude oil production** (70%) — Sales of crude oil produced from the company's Midland Basin wells. - **NGL production** (15%) — Natural gas liquids extracted through gathering and processing and sold separately. - **Natural gas production** (15%) — Dry natural gas produced and sold from operated wells. - Crude oil exploration, development and production - Natural gas exploration, development and production - NGL production and sales from gas processing - Horizontal drilling and completion of Midland Basin wells - Leasehold and acreage development in West Texas ## 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. - **Major commodity purchasers** (primary) — Large buyers that purchase most of the company's crude oil, NGL and natural gas production and provide market access. - **Midstream processors and transport counterparties** (primary) — Gathering, processing and transportation partners that enable gas handling and NGL extraction before sale. - **Refiners and industrial end markets** (secondary) — Ultimate end users of the hydrocarbons sold through the company's marketing chain. - Two purchasers accounted for about 90% of 2025 revenue - Buyers lift crude oil, NGL and natural gas production - Counterparties are concentrated, so switching costs matter - Access to suitable markets depends on purchaser relationships - End demand is tied to commodity markets and downstream users ## 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. - **West Texas / Midland Basin** (100%) — All operating assets are located in the Permian Basin, mainly the Midland Basin. - Operations are concentrated in the Midland Basin of West Texas - Core acreage is mainly in Howard and Borden counties - Additional exposure exists in Scurry and Mitchell counties - Geographic concentration increases local infrastructure dependence - Texas regulation and service availability affect execution ## 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. - **Disciplined Midland Basin development** (medium-term) — Concentrated acreage and long-lateral wells support efficient capital deployment and reserve conversion. - **Liquidity and capital flexibility** (short-term) — The business is capital intensive and sensitive to commodity prices, so funding flexibility is essential. - **Operational efficiency and infrastructure buildout** (medium-term) — Infrastructure and processing capacity affect realized prices, throughput and well economics. - Develop contiguous Midland Basin acreage with horizontal wells - Keep drilling and completion activity economically disciplined - Fund capex with operating cash flow and available liquidity - Maintain flexibility in rig and frac crew deployment - Preserve access to markets and covenant compliance ## 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. - **Customer concentration** [high] — Two purchasers accounted for about 90% of 2025 revenue, so losing a major buyer could quickly reduce sales access. - **Commodity price volatility** [high] — Upstream cash flows depend on oil and gas prices, which drive realized revenue and drilling returns. - **Service and labor availability** [high] — The company needs rigs, frac crews, equipment and skilled personnel to execute its capital plan on time and within budget. - **Environmental and regulatory compliance** [medium] — Oil and gas operations are subject to permitting, safety, emissions and hydraulic fracturing rules that can add cost or delay wells. - **Cybersecurity and infrastructure disruption** [medium] — Operations rely on information systems and third-party infrastructure, making outages or attacks potentially disruptive. - **Financing and interest-rate risk** [high] — The business is capital intensive and uses debt facilities, so higher rates or tighter credit can pressure funding. - Revenue is concentrated with a small number of purchasers - Commodity price swings directly affect realized revenue and drilling economics - Rig, frac crew and service shortages can delay development - Environmental and safety rules can raise costs and slow operations - Debt and interest-rate pressure can constrain liquidity and covenant headroom ## Accounting The most important accounting judgments are reserve estimates, impairment testing, asset retirement obligations, derivatives and tax positions, all of which can materially move reported earnings and asset values. Because the company is an upstream producer, small changes in commodity assumptions, well performance or discount rates can change depletion, fair values and impairment conclusions. Revenue is also affected by production timing, purchaser concentration and gathering/processing deductions that influence realized prices. - **Reserve estimation and depletion** — Production profile and depreciation expense - **Long-lived asset impairment** — Non-cash charges and asset base - **Asset retirement obligations** — Liabilities and accretion expense - **Derivative instruments** — Reported gains/losses and cash flow protection - **Income taxes and tax attributes** — Tax expense and deferred tax balances - Reserve estimates drive depletion and asset valuation - Impairment testing can create large non-cash charges - Asset retirement obligations depend on long-dated cost estimates - Derivative valuation affects earnings volatility - Tax attributes and uncertain tax positions affect effective tax rate --- *Last updated: 2026-04-28T20:14:48.741797+00:00*