Q2 2026 Highpeak Energy Inc Earnings Call Transcript
Key Points
- Production exceeded the high end of guidance for the first half of 2026, averaging 45,500 BOEs per day.
- Unit LOE came in approximately 13% below the midpoint of full-year guidance, reflecting durable cost efficiencies.
- The company accelerated completion activity to lock in attractive frac pricing and improve capital efficiency, positioning for stronger second-half free cash flow.
- A successful workover program brought production back online with high returns and quick payback, complementing the development plan.
- Adjusted EBITDA and free cash flow grew sequentially despite $55 million in net cash hedge losses, supported by stronger realized oil prices.
- Second-quarter oil cut fell to 64% from the guided 67%-68% due to frac-impacted oil volumes and workovers on higher gas-cut wells.
- The company absorbed approximately $55 million in net cash hedge losses during the quarter.
- Capital spending in the first half was higher than planned, reaching the mid-to-upper 60% range of the annual budget due to accelerated completions.
- The company faced significant negative Waha natural gas differentials in the second quarter, impacting realizations.
- Management remains cautious about prepaying the term loan above the scheduled $30 million per quarter, limiting near-term debt reduction flexibility.
Good day and welcome to HighPeak Energy 2026 second quarter earnings conference call. At this time all participants are in listen-only mode. After the speaker's presentation there will be a question-and-answer session. (Operator Instructions)
I would now like to turn the call over to Stephen Tholen, CFO. Please go ahead.
Good morning, everyone, and welcome to High Peak Energy second-quarter 2026 earnings call.
Representing High Peak today are President and CEO, Michael Hollis, Executive Vice President, Daniel M. Silver, Senior Vice President, Christopher M. Mundy, and I am Stephen Tholen, the Chief Financial Officer.
During today's call, we may refer to our August investor presentation and press release, which can be found on Highpeak website. Today's call participants may make certain forward-looking statements relating to the company's financial condition, results of operations, Expectations, plans, goals, assumptions, and future performance. So please refer to the
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