HighPeak Posts Third-Quarter Loss After Derivative Mark

The Tip Desk · November 12, 2026 · 3 min read

The Midland Basin producer reported a $55.7 million net loss, or $0.44 a share, as unhedged crude prices receded from the second-quarter spike.

HighPeak Energy, Inc. (HPK), a Fort Worth-based independent crude oil and natural gas company focused on the Midland Basin, reported a net loss of $55.7 million, or $0.44 a share, for the quarter ended September 30, 2026, after a $107.5 million loss on derivative instruments.

Adjusted net income was $38.5 million, or $0.32 a share. EBITDAX was $163.8 million, or $1.23 a share. Free cash flow was $22.4 million, and free cash flow before changes in working capital was $58.4 million. The company reduced debt by $30 million.

Sales volumes averaged 44.2 MBoe/d, down from 45.3 MBoe/d in the second quarter. The mix was about 67% crude oil and 84% liquids. Crude oil sales averaged 29,502 barrels a day.

Unhedged realized prices were $86.86 a barrel of crude oil, $22.20 a barrel of NGL and $1.42 a Mcf of natural gas, for an overall $63.18 a Boe, or 73% of the weighted average of NYMEX crude oil prices. Including derivatives, the overall realized price was $57.94 a Boe. Cash costs were $17.64 a Boe, including lease operating costs of $6.70 a Boe. Unhedged EBITDAX was $45.54 a Boe.

The company drilled 9 gross (8.6 net) company-operated horizontal wells, completed 5 gross (4.8 net) and turned in line 13 gross (12.8 net) producing wells. At September 30, it had 18 gross (13.3 net) horizontal wells in progress, including 16 gross (11.4 net) in various stages of completion. Total capital expenditures excluding acquisitions were $71.1 million.

President and Chief Executive Officer Michael Hollis said the team delivered production above expectations and improved efficiency, generated meaningful free cash flow and reduced debt. He said that as drilling efficiencies continue to improve, rather than releasing a rig, the company plans to keep activity steady and reinvest those efficiency gains into additional high-return opportunities, resulting in a modest increase in capital investment while maintaining financial discipline.

HighPeak’s 2026 average daily production range is 44,500–45,500 Boe/d, the lease operating expenses range is $8.00–$8.25 a Boe and the total capital expenditures range is $310 million–$320 million.

On October 6, the company announced a comprehensive refinancing through a $450 million preferred equity investment and a new $800 million credit facility. It will pay off its existing $1.2 billion term loan upon closing, which is expected later in November.

Cash and cash equivalents were $117.4 million at September 30. Long-term debt, net, was $1.04 billion, with a $120 million current portion.

As of September 30, including derivatives entered after quarter-end, HighPeak had crude oil swaps and costless collars covering volumes through May 2028, including a 10,800-barrel-per-day costless collar for October–December 2026 with a $61.67 floor and $68.52 ceiling, and a 9,000-barrel-per-day swap at $74.01. Natural gas swaps covered Henry Hub volumes through the first quarter of 2028, including a 35,000-MMBtu-per-day swap at $4.131 for October–December 2026.