Release Date: March 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: For 2025, how many Middle Spraberry wells are you planning? A: Jack Hightower, CEO, mentioned that they expect to drill two to three additional Middle Spraberry wells in 2025. The focus will be on delineating the Flat Top area, with no immediate plans for Middle Spraberry wells in Signal Peak.
Q: Does improving HighPeak's infrastructure for gas volumes impact your ability to move more oil barrels? A: Michael Hollis, President, confirmed that infrastructure improvements enhance their ability to handle gas volumes, which indirectly supports oil production. The infrastructure allows for better gas capture and sales, contributing to overall operational efficiency.
Q: How does the infrastructure buildout support your efficiency goals for the company? A: Michael Hollis explained that the infrastructure helps reduce both OpEx and CapEx by providing high-line power and recycled fluid for operations. This setup supports their goal of maintaining production with lower capital expenditure, enhancing corporate efficiency.
Q: Can you discuss the flexibility of your asset base in terms of scaling capital based on economic conditions? A: Michael Hollis stated that HighPeak's infrastructure is designed to support both expansion and contraction of operations. They can scale up to six to eight rigs if needed or maintain production with less than one rig, providing flexibility to adapt to market conditions.
Q: How do you weigh the merits of reducing debt under a new capital structure versus buying back shares? A: Jack Hightower highlighted that reducing borrowing costs significantly impacts free cash flow. They aim to optimize their capital structure to reduce interest expenses and have the flexibility to pay down debt quickly, which could be prioritized over share buybacks.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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