HighPeak Energy (HPK) Q4 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Thu, March 12, 2026 astatine 11:25 AM CDT 24 min read

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Thursday, March 12, 2026 astatine 11 a.m. ET

• President — Michael L. Hollis

• Operator — [Not named, but delivered worldly statements facilitating the call]

Michael L. Hollis: Thank you, Steve. Good morning, everyone, and convey you for joining us. I thought astir kicking disconnected things contiguous by walking done our 2025 results and the execution of our concern plan, but that feels similar a full antithetic satellite today. I americium acold much energized by what lies up than by revisiting what is already down america and implemented. For anyone funny successful a deeper look astatine the changes that brought america to this point, our anterior quarter’s capitalist presumption and net telephone transcript connection a broad overview. So with that, fto america crook the leafage and speech astir 2026 and however we are positioning the institution to determination guardant with purpose, confidence, and a full batch of momentum.

In today’s fast-moving geopolitical and commodity landscape, we are approaching 2026 with absorption and discipline. Our absorption is clear: support profitability, maximize currency flow, and fortify the instauration of our business, not prosecute maturation for its ain sake. Over the past respective quarters, we person taken a hard, honorable look astatine each portion of our business, and that enactment continues today. It has fixed america a steadfast grip grounded connected fiscal subject and operational excellence. This means a program we tin afloat and confidently execute wrong currency flow, sustaining unchangeable accumulation with minimal superior intensity, and driving further ratio gains to grow margins.

Our apical fiscal precedence is strengthening the equilibrium sheet. As commodity prices rise, incremental currency travel volition beryllium directed archetypal toward indebtedness simplification and liquidity improvement. To enactment that objective, we are taking respective decisive steps. First, we right-sized our yearly superior fund to guarantee our improvement programme stays wrong currency travel adjacent successful a overmuch softer terms environment. Second, we expanded our hedging programme to trim vulnerability to volatility and unafraid pricing that supports continued concern and indebtedness reduction. Third, we suspended our dividend, which volition summation yearly liquidity by an estimated $20 cardinal to $25 million.

The world is the marketplace was not giving america recognition for the dividend, and astir of the investors we talk with regularly person shared that aforesaid perspective. We judge that superior is acold amended deployed strengthening the equilibrium expanse and gathering semipermanent worth for our shareholders. We are positioning the institution to thrive not conscionable for the adjacent mates quarters, but for years to come.