HighPeak Energy (HPK) Water Tower Research Virtual Insights Conference summary

Strategic progress and operational focus

• Executed a disciplined operational plan emphasizing maintenance, capital efficiency, and cost reduction, resulting in a strong cash position and enhanced long-term value creation focus.

• Maintained a 70/30 capital allocation between northern and southern acreage blocks, aligning with inventory and acreage distribution, supporting consistent above-guidance performance and lower operating costs.

• Leveraged historical knowledge and technological advancements to unlock value in previously underdeveloped acreage, with industry validation of asset potential.

• Expanded inventory in core zones (Wolfcamp A, Lower Spraberry) and advanced Middle Spraberry development, expecting to increase top-tier well inventory from 650 to nearly 950.

• Ongoing base production optimization and adoption of new technologies have driven higher returns and efficiency from existing wells.

Capital allocation and production management

• Front-loaded 2026 CapEx, spending 69% in the first half by accelerating a four-well pad, resulting in production of 45,500 BOE/day, above guidance.

• Production optimization and efficient completions led to higher output and lower LOE, with fewer completions and frac impacts expected in the second half of 2026.

• Maintenance program aims to keep production flat through 2026, with 2027 expected to mirror 2026 in capital discipline and operational focus.

• Future CapEx will increasingly target direct production rather than infrastructure, enhancing capital efficiency and free cash flow.

Infrastructure and operational efficiency

• Significant prior investment in infrastructure enables efficient handling of higher water/oil ratios and supports low LOE metrics competitive with peers.

• Over 40 central tank batteries in place, with final major infrastructure projects in 2026, reducing future infrastructure spending needs.

• Existing footprint allows for more capital to be directed toward production growth rather than infrastructure expansion.