HighPeak Energy, Inc. (HPK): Marketing Mix Analysis [Dec-2025 Updated]

You're looking at an energy producer trying to regain investor trust after a tough quarter, specifically HighPeak Energy, which reported a $18.3 million net loss in Q3 2025. Honestly, the real story isn't just their core product mix-which was 83% liquids from the rich Midland Basin-but the strategic shift management is making. I've mapped out their late 2025 Marketing Mix, the four P's, to show you precisely how they balance that commitment to a $0.04 per share dividend and low cash costs of $11.97 per Boe while focusing promotion squarely on financial governance. See the breakdown below for the concrete details on their Product, Place, Promotion, and Price strategy as they operate within that $375 million to $405 million capital budget.

HighPeak Energy, Inc. (HPK) - Marketing Mix: Product

The product HighPeak Energy, Inc. offers is the output from its exploration, development, and exploitation activities, which centers on unconventional crude oil, natural gas liquids (NGL), and natural gas reserves located primarily in the Midland Basin in West Texas. This product mix is quantified by recent sales volumes.

The primary product mix for HighPeak Energy, Inc. during the third quarter of 2025 reflected the following composition:

• - Primary product mix is 66% crude oil and 83% liquids (Q3 2025).
• - Focus on unconventional crude oil, natural gas liquids, and natural gas.
• - Developing high-quality, long-lived oily inventory in the Midland Basin.
• - Targeting Middle Spraberry wells with over 200 potential sub-$50/Bbl breakeven locations. (Note: Specific number for this target was not sourced.)

The physical product output is best understood through the Q3 2025 operational statistics, which show the scale and composition of the reserves being brought to market. Sales volumes averaged approximately 47.8 thousand barrels of crude oil equivalent per day (MBoe/d) for the third quarter of 2025. The oil component of this output was specifically 31,594 barrels per day, representing the 66% oil cut for the quarter, a slight dip from the 70% reported in Q2 2025.

HighPeak Energy, Inc. holds approximately 154,650 gross acres as of September 30, 2025, with about 70% of that acreage already under production, underscoring the established nature of its asset base in the Midland Basin. The development focus is on maximizing the value of this inventory through advanced completion techniques, which directly impacts the quality and recovery of the product.

The commitment to developing this inventory is evidenced by recent drilling and completion activity, which is a direct input into the product offering. During Q3 2025, HighPeak Energy, Inc. drilled 6 gross (6.0 net) horizontal wells and turned-in-line 9 gross (8.9 net) producing wells. As of the end of the third quarter, the company had 19 gross (19.0 net) horizontal wells in various stages of drilling and completion.

The enhancement of product recovery and efficiency is being driven by technology adoption, which affects the long-term value proposition of the reserves. HighPeak Energy, Inc. recently finished its second successful simul-frac completion on a six well pad, utilizing average lateral lengths exceeding 15,000 feet. This technique yielded cost savings of over $400,000 per well compared to the traditional zipper frac technique. Furthermore, the operations team achieved an average of over 4,700 feet of completed lateral footage per day using continuous pumping operations during this process.

Here is a summary of key operational metrics related to the product base as of Q3 2025:

The company picked up a second drilling rig in early October, indicating a cautious ramp-up in development activity heading into the fourth quarter.

HighPeak Energy, Inc. (HPK) - Marketing Mix: Place

You're looking at where HighPeak Energy, Inc. (HPK) physically positions its assets and brings its product-crude oil and natural gas-to market. For an upstream energy company, 'Place' is fundamentally about the location of the reserves and the infrastructure connecting those reserves to the buyer.

HighPeak Energy, Inc.'s entire upstream business is geographically focused. The company's operations are concentrated in the Midland Basin of West Texas, which is a sub-basin of the greater Permian Basin. This concentration is key because it allows for economies of scale in field development and infrastructure deployment.

The physical asset base, which represents the source of the product, is substantial, though the most recent specific figure I have is from the end of the prior year. As of December 31, 2024, the consolidated Permian/Midland Basin project comprised approximately 154,368 gross acres (141,907 net acres). The company's corporate headquarters, which manages this physical placement strategy, is located in Fort Worth, Texas.

To ensure efficient product movement and lower operating costs, HighPeak Energy, Inc. is actively investing in its midstream capabilities. For 2025, the company planned to invest approximately $33-$35 million in projects designed to enhance this distribution network.

This investment supports the physical flow of product and is a direct component of the 'Place' strategy:

• - Expanding the field-wide low-pressure gas gathering system.
• - Extending the in-field overhead electric power distribution system.
• - Providing access to additional gas sales outlets via midstream partners.

The current level of development activity in the third quarter of 2025 shows the immediate deployment of assets to bring product to market. The company averaged one drilling rig and less than one frac crew during Q3 2025. At the end of that quarter, on September 30, 2025, HighPeak Energy, Inc. had 19 gross (19.0 net) horizontal wells in various stages of drilling and completion.

Here's a quick look at the operational footprint as of the third quarter of 2025:

The focus on infrastructure spending is about securing reliable takeaway capacity, which is critical for ensuring the product is available when needed, a core tenet of distribution strategy.

HighPeak Energy, Inc. (HPK) - Marketing Mix: Promotion

You're looking at the communication strategy for HighPeak Energy, Inc. as the company navigates a post-Q3 2025 environment. The promotion here isn't about flashy ads; it's about direct, financial communication to a very specific audience.

Investor Relations is the core communication channel for analysts and stockholders. This is where HighPeak Energy, Inc. directly addresses valuation, risk, and future capital allocation. Management is candidly communicating a pivot in focus.

The overarching strategy is shifting from production-chasing to financial discipline and governance. CEO Michael Hollis stated the company is not in the business of chasing production for short-term gains, but rather building a durable, well-run enterprise. This is a clear signal to the market about where promotional messaging is directed.

Management is focused on rebuilding market confidence following the Q3 2025 net loss of $18.3 million. This loss, which translated to ($0.15) per diluted share on a GAAP basis, is being counterbalanced in communications by highlighting non-GAAP metrics like EBITDAX of $139.9 million for the same quarter. The narrative is one of restructuring and resetting expectations.

Shareholder value is promoted via a consistent quarterly dividend of $0.04 per share. The Board declared this dividend in November 2025, payable in December 2025, which equates to approximately $5.0 million in total dividends for the quarter. This consistency is a key element in promoting shareholder commitment despite the recent net loss.

Regular engagement through earnings calls and webcasts is used for transparency. You can see the cadence of this communication below, which is critical for analysts tracking the new governance structure and debt reduction efforts:

The governance overhaul itself is a promotional point, signaling a new era. This includes the formal appointment of Michael Hollis as permanent Chief Executive Officer on November 5, 2025, and Jason Edgeworth as Chairman of the Board. The company is also detailing plans for a measured share distribution from private partnerships over the next two years, with HighPeak II shares planned for distribution in 2026 and HighPeak I in 2027.

The communication strategy emphasizes concrete financial actions to support the new narrative:

• Capital expenditures reduced by over 30% sequentially to $86.6 million in Q3 2025.
• Debt maturities extended to September 2028.
• Liquidity increased by over $170 million.
• Management is focused on addressing high debt levels, which Hollis acknowledged as high.

HighPeak Energy, Inc. (HPK) - Marketing Mix: Price

You're looking at the core mechanics of how HighPeak Energy, Inc. captures revenue from its production, which is all about the realized price after factoring in commodity movements and risk management tools. Effective pricing here means capturing maximum value while locking in a floor to support the capital plan.

The realized pricing structure for HighPeak Energy, Inc. in the third quarter of 2025 shows the direct impact of their commodity mix and hedging program. The overall realized price, excluding the effects of derivatives, came in at $42.91 per Boe.

Here's a breakdown of the key pricing and cost metrics from that quarter:

Keeping costs low is just as critical as the selling price. HighPeak Energy, Inc.'s cash costs remained tight for Q3 2025 at $11.97 per Boe. This cost structure is detailed across the main operational components:

• Lease operating expenses averaged $6.57 per Boe.
• Workover expenses were $1.00 per Boe.
• Production and ad valorem taxes totaled $2.28 per Boe.
• General & Administrative (G&A) expenses were $2.12 per Boe.

To manage the inherent volatility in the energy markets, HighPeak Energy, Inc. actively uses derivatives. The stated policy is to manage price risk by hedging a minimum of 50% of projected PDP (Proved Developed Producing) crude oil production on a quarterly basis going forward. For the second half of 2025, the company had hedged over 50% of volumes.

This pricing and hedging discipline directly supports the company's capital allocation strategy. HighPeak Energy, Inc. is maintaining capital discipline with a 2025 capital budget range set between $375 million to $405 million for core drilling, completion, facilities, and equipping activities. Finance: draft 13-week cash view by Friday.