HighPeak Energy 2025 Q3 Earnings Net Loss Widens 136.7% Amid Revenue Decline

HighPeak Energy reported a 30.5% revenue drop to $188.86 million in Q3 2025, missing estimates and reflecting weaker crude oil and NGL sales. The company swung to a $0.15 EPS loss, a 141.7% deterioration from a year ago. Management outlined capital discipline and debt restructuring plans, but analysts remain cautious, with a Zacks Rank #4 (Sell) assigned due to unfavorable earnings estimate trends.

Revenue

Crude oil sales accounted for the majority of revenue at $190.77 million, while NGL and natural gas sales incurred a $1.91 million loss, contributing to the $188.86 million total operating revenue. This marked a 30.5% year-over-year decline, driven by reduced production activity and volatile commodity pricing.

Earnings/Net Income

HighPeak Energy reported a net loss of $18.34 million ($0.15 EPS) in Q3 2025, a 136.7% deterioration from the $49.93 million profit ($0.36 EPS) in Q3 2024. The significant shift underscores operational and market challenges, with the company failing to meet earnings expectations and delivering a -62.5% surprise.

Post-Earnings Price Action Review

The stock price of HighPeak Energy has edged down 0.65% during the latest trading day, has edged down 1.45% during the most recent full trading week, and has plummeted 16.62% month-to-date.

CEO Commentary

Interim CEO Michael Hollis emphasized operational efficiency gains, including $400,000 per well cost savings via simul-frac completions and extended debt maturities to 2028. He acknowledged overleveraging and a “growth-at-all-costs” legacy, pledging to prioritize debt reduction and governance reforms. Strategic guidance tied to oil prices outlines a 2-rig program for $60–$70/barrel ranges, with accelerated debt paydown above $70/barrel.

Guidance

Management outlined activity scenarios based on oil prices: below $60/barrel (operate within cash flow), $60–$70/barrel (2-rig program and free cash flow for debt reduction), and >$70/barrel (accelerated debt reduction and modest production growth). Hedging targets 55–65% coverage, with 16–18 DUCs to carryover into 2026.

Additional News

HighPeak Energy announced a CEO transition, with Michael Hollis assuming the role from Jason Edgeworth, who became chairman. The company also declared a $0.04-per-share quarterly dividend, signaling a commitment to shareholder returns. Additionally, HighPeak extended all debt maturities to September 2028, increasing liquidity by over $170 million. These moves aim to stabilize the firm’s balance sheet amid ongoing operational and market challenges.