HighPeak Energy, Inc. (HPK): Business Model Canvas [Dec-2025 Updated]

You're looking to see the engine room of a pure-play Midland Basin operator, and for HighPeak Energy, Inc. (HPK), it's all about disciplined drilling on their $\mathbf{154,650}$ gross acres. Honestly, their near-term success hinges on hitting production guidance between $\mathbf{48,000}$ and $\mathbf{50,500}$ Boe/d while keeping capital discipline, with 2025 CapEx budgeted between $\mathbf{\$375}$ million and $\mathbf{\$405}$ million. The real win is maintaining those low cash costs-they hit just $\mathbf{\$11.69}$ per Boe in Q2 2025-all while relying on crude oil sales as the dominant revenue stream. Let's map out the nine essential blocks of the Business Model Canvas to see precisely how HighPeak Energy, Inc. turns rock into returns.

HighPeak Energy, Inc. (HPK) - Canvas Business Model: Key Partnerships

You're looking at the backbone of HighPeak Energy, Inc.'s (HPK) operations-the external relationships that make the drilling and processing possible. These aren't just vendors; they are critical financial and operational partners. Honestly, in this business, your partners dictate your runway and your cost structure.

Oilfield Service Providers for Drilling and Completion (D&C) Operations

HighPeak Energy, Inc. relies on service providers for its development program, though activity levels have been managed based on cash flow. For instance, in the first quarter of 2025, the company averaged two drilling rigs and one frac crew, drilling 16 gross (16.0 net) horizontal wells. By the third quarter of 2025, activity was deliberately reduced, running only one rig and drilling 6 wells. A key operational partnership success came from a simul-frac completion on a 6-well pad with 15,000-foot average lateral lengths, which yielded cost savings per well of over $400,000 compared to the traditional zipper frac technique.

Here's a look at the capital deployment related to these services:

Midstream Companies for Gathering and Processing Natural Gas and NGLs

Midstream partners are crucial for getting product to market and managing associated costs. HighPeak Energy, Inc. planned to invest approximately $33-$35 million in 2025 for projects to expand its field-wide low-pressure gas gathering system and secure access to additional gas sales outlets with these partners. A significant existing relationship involves the amended and restated crude oil marketing contract established in September 2024 with DKL Permian Gathering, LLC ("DKL").

This DKL agreement covers production from the majority of wells in the Flat Top and Signal Peak areas and includes a substantial minimum volume commitment. The commitment totals $138.7 million based on 23,500 Bopd for the first ten years of the contract. As of December 31, 2024, the remaining monetary commitment under this contract was approximately $130.3 million.

Financial Institutions Providing the Upsized $1.2 Billion Term Loan Credit Agreement

The relationship with lenders was recently strengthened through amendments effective August 1, 2025. This involved upsizing the borrowings under the Term Loan Credit Agreement to $1.2 billion, which provided additional liquidity. TCBI Securities, Inc., doing business as Texas Capital Securities, served as the financial advisor and arranger for this amended and extended facility.

The key financial terms secured with these partners are:

• Maturity dates for the Term Loan and Senior Credit Facility extended to September 30, 2028.
• Mandatory amortization payments of $30.0 million per quarter deferred until September 30, 2026.
• The Term Loan Credit Agreement call protection provision expires in September 2025.

Commodity Trading Counterparties for Derivative Contracts (Hedging)

HighPeak Energy, Inc. uses derivative contracts to manage price risk, with agreements based on WTI Cushing for crude oil and Henry Hub (HH) for natural gas pricing from the New York Mercantile Exchange. The company entered into additional crude oil derivative contracts extending through March 31, 2027. The credit agreements require hedging not less than 50% of reasonably anticipated production for the following 18-month period.

Outstanding crude oil derivative instruments as of the August 4, 2025 announcement included specific structures:

For natural gas, as of March 31, 2025, the company had swaps in place:

• Natural Gas Swaps: $4.43 per MMBtu.
• Volume: 30,000 MMBtu per day.
• Duration: March 2025 through February 2026.

It is anticipated that any counterparties to HighPeak Energy, Inc.'s derivative contracts would have investment grade ratings.

HighPeak Energy, Inc. (HPK) - Canvas Business Model: Key Activities

You're looking at HighPeak Energy, Inc. (HPK) right now and seeing a company laser-focused on extracting maximum value from its core assets while aggressively managing its balance sheet. The key activities center on disciplined development, financial de-risking, and operational efficiency in the Permian Basin.

The primary operational activity involves the efficiently developing and exploiting crude oil and natural gas reserves in the Midland Basin. HighPeak Energy, Inc. concentrates its operations in Howard and Borden Counties, Texas. The quality of the inventory is evident: more than 90% of the net operated acreage is suitable for horizontal wells with lateral lengths of 10,000 feet or greater. Operationally, in the third quarter of 2025, the company averaged sales volumes of approximately 47.8 MBoe/d, with sales consisting of approximately 66% crude oil and 83% liquids. During that same quarter, HighPeak Energy, Inc. drilled 6 gross (6.0 net) horizontal wells and turned-in-line 9 gross (8.9 net) producing wells.

Capital discipline is a major focus, reflected in the spending plans. HighPeak Energy, Inc. is maintaining capital discipline, with 2025 CapEx anticipated between $375 million and $405 million for drilling and completion activities. This represents a shift from earlier guidance; for instance, first quarter 2025 capital expenditures were $179.8 million, and third quarter 2025 CapEx was reduced sequentially by over 30% to $86.6 million. This focus on efficiency is partly driven by techniques like simul-frac completions, which saved about $400,000 per well.

To shield cash flows from market swings, HighPeak Energy, Inc. is managing commodity price risk via systematic hedging, covering a minimum of 50% of projected crude oil production. Management stated they will systematically hedge a minimum of 50% of projected PDP crude oil production on a quarterly basis. As of the second half of 2025, over 50% of volumes were hedged with a weighted average floor price of over $62 per barrel. Furthermore, roughly 90% of second half 2025 gas volumes were hedged at $4.43 per MMBtu. For context on realized pricing, the third quarter 2025 average realized price was $42.91 per Boe, which was 66% of the weighted average of NYMEX crude oil prices, excluding derivatives.

A critical activity is optimizing capital structure, including extending debt maturities to September 2028. HighPeak Energy, Inc. successfully amended its agreements to extend the maturity dates for the Term Loan Credit Agreement and Senior Credit Facility Agreement by two years to September 30, 2028. This move also involved up-sizing borrowings under the Term Loan Credit Agreement to $1.2 billion, which boosted liquidity by over $170 million. To provide further flexibility, mandatory amortization payments of $30.0 million per quarter were deferred until September 30, 2026. The total debt outstanding as of September 30, 2025, was $1.2 billion.

Here are the concrete numbers related to these key activities:

The company's hedging program also includes specific derivative positions:

• Crude oil swaps between July and September 2025: 3,000 barrels per day at $75.85 per barrel.
• Natural gas swaps from March 2025 through February 2026: 30,000 MMBtu per day at $4.43 per MMBtu.
• Q3 2025 realized price per Boe (excluding derivatives): $42.91.

The operational focus is clearly on maximizing output from existing acreage while managing the cost of capital. Finance: draft 13-week cash view by Friday.

HighPeak Energy, Inc. (HPK) - Canvas Business Model: Key Resources

You're looking at the core assets HighPeak Energy, Inc. (HPK) relies on to execute its strategy. These aren't just line items; they are the physical and financial foundations supporting their operations in the Permian Basin.

The most tangible asset is the acreage position. HighPeak Energy, Inc. holds a large, contiguous acreage position of approximately 154,650 gross acres in the Midland Basin. This concentration of land is critical for efficient, multi-well pad drilling programs.

The proven reserve base is another cornerstone. As of year-end 2024, HighPeak Energy, Inc.'s estimated proved reserves stood at 199 MMBoe. The composition of these reserves shows a strong focus on liquids, with 68% crude oil, 17% NGL, and 15% natural gas. The proved developed reserves component was 108 MMBoe at that same date, representing 54% of the total proved reserves. Furthermore, the PV-10 value for these year-end 2024 reserves, based on SEC pricing guidelines, was approximately $3.4 billion.

Access to capital and liquidity is secured through key financing arrangements. Effective August 1, 2025, HighPeak Energy, Inc. upsized its borrowings under the Term Loan Credit Agreement to $1.2 billion, which enhances the company's liquidity position. This financing also saw the maturity dates for both the Term Loan Credit Agreement and the Senior Credit Facility Agreement extended to September 30, 2028. A key covenant amendment involved deferring mandatory quarterly amortization payments of $30.0 million until September 30, 2026.

The human capital is significant, too. The technical and management team at HighPeak Energy, Inc. brings deep industry knowledge, with the management team combining over 200 years of industry experience spanning over 20 different companies. This experience has been instrumental in driving operational improvements, such as increasing net production from 1.9 MBoe/d in 2020 to approximately 50 MBoe/d in 2024, a 26 times increase.

You can see the scale of the physical and financial assets here:

The operational efficiency derived from these resources is also key. For instance, the company's 2024 lease operating expenses averaged $7.23 per Boe, which was a 17% decrease year-over-year. Also, the 2024 reserve replacement ratio reached 345%.

The hedging program is a resource used to stabilize cash flows:

• Crude oil hedges cover 18.1 MBbl/d for the remainder of 2025.
• Natural gas swaps cover 30,000 MMBtu/d for the remainder of 2025.
• Additional crude oil derivative contracts are in place through March 31, 2027.

The team's focus on horizontal drilling has yielded a large inventory of future potential:

• Identified over 2,700 locations as of December 31, 2024.
• Drilled over 300 net locations since 2020.

Finance: draft the impact of the $725 million proposed senior notes offering on the year-end 2025 net debt projection by Monday.

HighPeak Energy, Inc. (HPK) - Canvas Business Model: Value Propositions

You're looking at what HighPeak Energy, Inc. offers to its customers and the market-the core benefits driving their business. For HighPeak Energy, Inc., this centers on delivering high-quality hydrocarbons efficiently from a premier asset base.

The value proposition is built around the inherent quality of their Permian Basin assets and the operational discipline they apply to extract value, even when commodity prices fluctuate. This translates directly into the product mix and the cost structure they maintain.

Here's a look at the key components that define the value HighPeak Energy, Inc. is putting forward:

• High-quality, oil-heavy production mix, with crude oil making up about 66% of Q3 2025 volume.
• Consistent production volumes, with 2025 guidance of 48,000-50,500 Boe/d.
• Low cash costs per Boe, with Q2 2025 cash costs at $11.69 per Boe.
• Long-term, high-return inventory from deep drilling locations in the core Permian.

The focus on an oil-heavy mix is a deliberate value driver, as crude oil often commands a premium price realization compared to gas. For instance, in Q3 2025, crude oil realized prices were $65.63 per Bbl, versus natural gas at $1.07 per Mcf. The company is actively managing this mix, noting that its oil percentage should trend closer to 70% in the future, depending on new wells coming online.

You can see how the production and cost metrics stack up for the recent quarters:

That low cash cost structure is key to resilience. For Q2 2025, the $11.69 per Boe total cash cost broke down into specific components, showing where they control spending:

• Lease operating expenses: $6.55 per Boe.
• Workover expenses: $1.06 per Boe.
• Production and ad valorem taxes: $2.80 per Boe.
• General and Administrative (G&A) expenses: $1.28 per Boe.

The long-term inventory quality is supported by performance data from specific zones. For example, their Middle Spraberry wells have demonstrated breakeven points in the low to mid $40/bbl range. That's the kind of long-term, high-return potential that underpins the value proposition, suggesting profitability even in leaner commodity price environments. Finance: draft 13-week cash view by Friday.

HighPeak Energy, Inc. (HPK) - Canvas Business Model: Customer Relationships

When you look at HighPeak Energy, Inc. (HPK), the customer relationship side is heavily weighted toward large-scale commodity transactions and direct engagement with the capital markets. It's not about a million small retail sales; it's about securing the output from your assets with major buyers and keeping your institutional backers informed.

Transactional, high-volume contracts with major purchasers.

Your core customer relationships here are built on the physical movement of hydrocarbons. We see this reflected in the production figures, which represent the volume underpinning those sales agreements. For instance, in the third quarter of 2025, HighPeak Energy, Inc. (HPK) reported average daily sales volumes of approximately 47.8 thousand barrels of crude oil equivalent per day (MBoe/d). That's a substantial, consistent volume that requires firm, transactional contracts with refiners or marketers.

To manage the price risk inherent in these large-volume sales, HighPeak Energy, Inc. (HPK) actively uses derivatives, which are essentially contracts to lock in future prices. As of the second quarter of 2025, the company had hedged a significant portion of its production for the next 18 months. Furthermore, they extended this protection by entering into additional crude oil derivative contracts covering a significant portion of forecasted production through March 2027. This hedging strategy is a key part of the relationship, as it provides revenue predictability to their counterparties.

Here's a quick look at the recent operational scale that drives these transactional relationships:

Direct communication with institutional investors via quarterly earnings calls.

For the financial customers-the shareholders and analysts-the relationship is maintained through a structured, direct cadence. HighPeak Energy, Inc. (HPK) uses formal quarterly earnings calls to deliver performance updates and strategic direction. For example, the Third Quarter 2025 results were released on November 5, 2025, followed by the earnings call on November 6, 2025, at 11:00 a.m. Central Time. This direct line of communication is crucial, especially following significant events like the CEO transition announced in September 2025.

You can track the consistency of this engagement:

• Q3 2025 Earnings Call: November 6, 2025.
• Q2 2025 Earnings Call: August 12, 2025.
• Q1 2025 Earnings Call: May 13, 2025.

These events, along with the release of materials like the Q3 2025 Investor Presentation on November 6, 2025, serve as the primary touchpoints for the investment community.

Maintaining financial flexibility to support shareholder value (e.g., $0.04 quarterly dividend).

A tangible demonstration of HighPeak Energy, Inc. (HPK)'s commitment to its shareholders is the consistent dividend policy, which helps anchor the relationship with long-term holders. The company has maintained a regular quarterly payout. Following the Q3 2025 results, the Board approved a quarterly dividend of $0.04 per share, payable on December 23, 2025, to shareholders of record on December 1, 2025. This keeps the annual dividend at $0.16 per share.

This dividend commitment is backed by efforts to secure financial footing. The total dividends paid to stockholders during the second quarter of 2025 amounted to approximately $5.0 million. Furthermore, management has actively worked to ensure the financial flexibility to sustain this, including amending the Term Loan Credit Agreement to extend maturity dates to September 2028 and increasing liquidity by up to $1.2 billion. This action directly supports the ability to maintain shareholder returns like that $0.04 quarterly distribution.

Finance: draft 13-week cash view by Friday.

HighPeak Energy, Inc. (HPK) - Canvas Business Model: Channels

The movement of HighPeak Energy, Inc. (HPK)'s produced commodities-crude oil, NGLs, and natural gas-to market relies on a mix of direct agreements and established midstream infrastructure.

Direct sales contracts to major petroleum refineries in the Permian Basin region.

HighPeak Energy, Inc. (HPK) sells its crude oil, NGLs, and natural gas to various customers on a competitive pricing basis, utilizing both intrastate and interstate markets. In September 2024, HighPeak Energy, Inc. (HPK) entered into an amended and restated crude oil marketing contract with DeleN as the purchaser.

The sales volume profile for 2025 shows the relative mix being channeled:

• Q1 2025 average daily sales volumes were 53.1 thousand barrels of crude oil equivalent per day (MBoe/d).
• Q1 2025 crude oil sales averaged 38,222 Bbls/day.
• Q2 2025 average sales volumes were 48.6 MBoe/d, with crude oil comprising approximately 70% of that volume.
• Q3 2025 average sales volumes were 47.8 MBoe/d, with oil sales volumes at 31,594 barrels per day, representing an oil cut of 66%.
• The 2025 production guidance range was set between 48,000 - 50,500 Boe/d.

Pipeline and trucking infrastructure for transporting crude oil and NGLs.

Physical movement requires access to midstream systems, and capacity constraints in these facilities can impact HighPeak Energy, Inc. (HPK)'s ability to deliver product. The company's capital plan included specific spending for infrastructure development.

Key infrastructure capital allocation figures for 2025 include:

• Total 2025 Capital Expenditures guidance range of $448 - $490 million.
• Guidance for One-Time Infrastructure Projects was set at $33 - $35 million.
• The majority of 2025 infrastructure capital expenditures (capex) were weighted toward the first quarter, with Q1 2025 infrastructure capex being $179.8 million of the total Q1 capex.

For transportation and gathering, in September 2024, DKL Permian Gathering, LLC ("DKL") was named as the gatherer and transporter in an amended crude oil marketing contract.

Third-party natural gas processors and gatherers for market access.

HighPeak Energy, Inc. (HPK)'s natural gas production is gathered by third-party processors primarily to extract NGLs. The resulting residue natural gas and extracted liquids are then sold to various markets. The company has noted that increased sales volumes of natural gas and NGLs in Q3 2025 were attributed to the resolution of prior gas takeaway issues.

The process involves agreements with midstream companies for natural gas processing, NGL transportation, and produced water disposal, some of which require HighPeak Energy, Inc. (HPK) to meet minimum volume commitments.

Commodity exchanges (CME NYMEX, ICE) for derivative trading.

HighPeak Energy, Inc. (HPK) uses derivative instruments, based on prices from the New York Mercantile Exchange (NYMEX), to manage commodity price risk. Crude oil hedges use WTI Cushing pricing, and natural gas hedges use Henry Hub (HH) pricing. The company entered into additional crude oil derivative contracts subsequent to Q2 2025, covering a significant portion of forecasted production through March 2027.

Selected derivative positions as of March 31, 2025, for the second quarter of 2025:

For natural gas, HighPeak Energy, Inc. (HPK) had outstanding swaps in April 2025 for 30,000 MMBtu per day for the period of April - June 2025 at a weighted average price of $4.43 per MMBtu HH.

HighPeak Energy, Inc. (HPK) - Canvas Business Model: Customer Segments

You're looking at the core buyers for HighPeak Energy, Inc. (HPK) as of their late 2025 reporting, which centers on their Midland Basin production. The customer base is segmented by the commodity they are taking off the wellhead, and, importantly, by those providing capital.

Petroleum refineries requiring West Texas Intermediate (WTI) crude oil

Refineries are your primary off-takers for the crude oil component of HighPeak Energy's output. The company's production mix in the third quarter of 2025 clearly shows the importance of this segment, even as the mix shifted slightly.

For the quarter ended September 30, 2025, HighPeak Energy's sales volumes averaged 47.8 thousand barrels of crude oil equivalent per day (MBoe/d). The crude oil portion made up approximately 66% of those sales volumes. Honestly, this means the demand from refiners dictates a huge chunk of their near-term revenue stability.

The company's derivative strategy also directly impacts the effective price refineries pay or that HighPeak Energy realizes, as contracts are based on the NYMEX WTI Cushing pricing.

Energy trading companies purchasing natural gas and Natural Gas Liquids (NGLs)

Trading desks and processors buy the balance of the production-natural gas and Natural Gas Liquids (NGLs). HighPeak Energy noted that sales volumes for natural gas and NGLs increased by about a combined 10% quarter-over-quarter in Q3 2025, suggesting improving takeaway capacity for these products.

The liquids portion of the sales volumes, which includes NGLs, accounted for 83% of the total sales in Q3 2025. This segment is crucial for balancing the overall production profile.

• Average Realized Price for NGL per Barrel (Q3 2025): $17.40
• Average Realized Price for Natural Gas per Mcf (Q3 2025): $1.07
• Total Realized Price per Boe (Excluding Derivatives, Q3 2025): $42.91
• EBITDAX (Q3 2025): $139.9 million

The overall realized price per Boe, when not factoring in hedging effects, was $42.91 for the third quarter. That's the raw value these commodity buyers are dealing with.

Institutional and retail investors seeking exposure to a pure-play Midland Basin operator

This segment isn't buying barrels; they are buying equity in HighPeak Energy, Inc. (HPK). The company's recent strategic pivot, focusing on financial discipline after reporting a net loss of $18.3 million in Q3 2025, directly targets investor sentiment. The Board declared a quarterly dividend of $0.04 per common share payable in December 2025, a move intended to reassure this customer base.

The capital structure as of September 30, 2025, shows a net debt position of $1.035 billion against cash of $165 million. This debt load is a key factor for any investor assessing the stock.

You can see the insiders defintely have a large stake, which is something to note when evaluating governance. Finance: draft 13-week cash view by Friday.

HighPeak Energy, Inc. (HPK) - Canvas Business Model: Cost Structure

You're looking at the expenses that drive HighPeak Energy, Inc.'s operations as of late 2025. It's a capital-heavy business, and managing that outlay is key to survival.

The cost structure is heavily weighted toward getting the product out of the ground. Drilling and completion (D&C) is the primary drain on capital. While the cumulative figure through Q3 2025 isn't explicitly stated as $391.8 million in the latest reports, we can see the quarterly spend reflecting this intensity:

This shows a deliberate pull-back in capital deployment during Q3 2025, with management pacing activity to market conditions.

Day-to-day production costs, known as Lease Operating Expenses (LOE), show a tight grip on variable costs. You saw this focus on efficiency:

• Lease Operating Expenses (LOE) averaged $6.55 per Boe in Q2 2025.
• LOE for Q3 2025 was $6.57 per Boe, excluding workover expenses, keeping it consistent with the first half of 2025.
• Simul-frac completion technique delivered cost savings of over $400,000 per well compared to the traditional zipper frac.

Interest expense is a major component due to the significant leverage. HighPeak Energy, Inc. upsized borrowings under its Term Loan to $1.2 billion in August 2025, and total debt on the balance sheet as of September 2025 was reported at $1.19 Billion USD. This high debt level remains a primary focus for improvement, as noted by the new CEO.

General and administrative (G&A) expenses reflect the overhead required to run the company, including one-time hits. For the third quarter of 2025, G&A expenses were $2.12 per Boe. This figure was higher than the prior quarter, primarily due to specific costs:

• Legal costs.
• Severance costs related to the retirement of the former Chairman and CEO.

Finance: draft 13-week cash view by Friday.

HighPeak Energy, Inc. (HPK) - Canvas Business Model: Revenue Streams

You're looking at the core ways HighPeak Energy, Inc. (HPK) brings in cash, and honestly, it's almost entirely about what comes out of the ground right now. The revenue structure is heavily weighted toward commodity sales, which means their top line is directly tied to the volatile prices of oil and gas.

Crude oil sales, which is the overwhelmingly dominant revenue source.

Crude oil is the engine here. For the first quarter of 2025, crude oil sales alone accounted for a massive portion of the total operating revenues. To be fair, this dominance is expected to continue as liquids make up the bulk of their production mix. For example, in Q1 2025, crude oil sales hit $246,424 thousand, compared to just $11,024 thousand for NGL and natural gas sales combined. Also, in Q3 2025, sales volumes consisted of approximately 66% crude oil and 83% liquids.

Here's a quick look at the revenue breakdown from the start of 2025:

Natural Gas Liquids (NGL) and residue natural gas sales.

While secondary, NGL and natural gas sales provide important diversification. You see the realized prices fluctuate quite a bit, which is why hedging becomes so critical. For instance, the average realized price for natural gas, excluding derivatives, in Q1 2025 was $2.34 per Mcf, but by Q3 2025, that price had dropped to $1.92 per Mcf. Still, the volume of NGLs sold increased from 5,147 Bbls per day in Q1 2024 to 7,724 Bbls per day in Q1 2025.

Realized gains from commodity derivative contracts, like gas hedged at $4.43 per MMBtu.

HighPeak Energy, Inc. (HPK) actively manages price risk, so derivative contracts are a key part of the revenue picture, smoothing out volatility. You definitely want to track the impact of these hedges. Specifically, the company entered into natural gas derivative instruments, setting HH fixed price swaps at $4.43 per MMBtu for 30,000 MMBtu per day covering the period from March 2025 through February 2026. The impact shows up in the realized prices; for example, the overall realized price per Boe in Q2 2025 was $46.94 per Boe including derivatives, versus $45.27 per Boe excluding them.

When looking at the full-year 2025 analyst consensus, the latest available analyst projection points toward revenues of US$818.1m in 2026, based on three analysts covering HighPeak Energy, Inc. (HPK) as of November 8, 2025. What this estimate hides is the exact 2025 projection you were looking for, but the Q3 2025 actual revenue was US$189m, falling short of expectations for that period. You should keep an eye on the next update for a clearer 2025 picture.

Finance: draft 13-week cash view by Friday.