UBS cuts Brent crude oil forecasts
FORT WORTH - HighPeak Energy, Inc. (NASDAQ:HPK) announced Monday its intention to offer $725 million in senior notes due 2030 through a private placement to qualified institutional buyers and non-U.S. persons. The company, currently valued at $1.25 billion by market capitalization, is trading below its Fair Value according to InvestingPro analysis.
The offering, subject to market and customary conditions, will be conducted under Rule 144A and Regulation S of the Securities Act of 1933. The company plans to use the proceeds, along with borrowings from a new revolving credit facility it expects to establish, to fully repay its existing term loan credit agreement. With current total debt of $1.02 billion and a current ratio of 0.51, this refinancing comes at a crucial time. InvestingPro analysis reveals that short-term obligations currently exceed liquid assets.
The notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold within the United States except under applicable exemptions from registration requirements.
HighPeak Energy is an independent crude oil and natural gas company headquartered in Fort Worth, Texas. The company focuses on acquisition, development, exploration and exploitation of unconventional crude oil and natural gas reserves in the Midland Basin in West Texas. The company maintains an impressive 81% gross profit margin and generated $805 million in EBITDA over the last twelve months.
The announcement contains forward-looking statements regarding the offering and use of proceeds. The company noted there is no assurance that it will be able to complete the offering as market conditions and customary closing conditions must be satisfied.
This information is based on a company press release statement.
In other recent news, Highpeak Energy reported its first-quarter 2025 earnings, with an earnings per share (EPS) of $0.31, surpassing analysts’ expectations of $0.29. However, the company’s revenue slightly missed projections, coming in at $257.45 million compared to the anticipated $258.63 million. Highpeak Energy demonstrated strong operational performance, with EBITDA reaching nearly $200 million, a 10% increase from the previous quarter. The company achieved a production average of 53,000 barrels of oil equivalent per day, marking a 6% increase quarter-over-quarter. Analysts noted the company’s significant improvements in drilling efficiencies and reduced operating expenses. Highpeak Energy has raised its production guidance floor to 48,000 barrels per day for the year, maintaining its 2025 capital budget and development activity levels. The company plans to continue leveraging simul-frac operations to drive further cost efficiencies. President Michael Hollis highlighted Highpeak’s operational flexibility and competitive edge in having a "long runway of high-value drilling locations."
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.