HPK - Earnings call transcript Q2 2021

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Operator

Good day and thank you for standing by and welcome to the HighPeak Energy 2021 Second Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Steven Tholen, Chief Financial Officer. ahead. go Please,

Steven Tholen

Good second Norma. are and to Michael welcome and Thank XXXX morning, conference Energy's Hollis. President, and quarter Jack today call. HighPeak CEO, you, Hightower; everyone, Representing Chairman HighPeak

expectations, make will second the certain on goals, forward-looking may our earnings plans, HighPeak's we call, at XXXX of financial today's reference our condition, Today's Presentation quarter be August can which future to make www.highpeakenergy.com. and statements company's performance. to results release, website relating and Investor found operations, assumptions, participants During call

which So forward-looking differ please the in SEC information reasons, expectations refer are fact to the of a from including materially statements the beyond cautionary regarding to our filings, may risks and of due related control. results our that actual variety company's many

refer certain call. measures on also will financial to today's non-GAAP We

So and in please which over Monday afternoon. earnings the Jack will was CEO, to Hightower. issued release, call see now turn reconciliations I Chairman the the

Jack Hightower

Thank welcome you, Steve, and call. and today's to good morning, everyone,

expected, this is proved As and results, our positive continued operating for by capital to successful well quarter margins. our be and evidenced HighPeak high another quarter efficiency second

production quarter-over-quarter. over increased increase XX% and Our our EBITDAX

XX% rich future. our of stream liquids oil continues in XX% from Our differentiate to us peers and continue production will and liquids the

addition, more Our the into XXXX. in early higher much of recently currently barrel growth further profile oil in a wells equivalent back. accelerate added which that are will stages in valuable these have And results and we is second profit our flow multiple margins. rig, We of

the to our our our in with that presentation. slide release. into to highlights turn slide discuss we presentation emphasize growth you the will press August then company along and highlights discussing the We to investor and in will outlined press of plans further like and our as release, evident our a discussion are This three after refer be definitely future. the I'd and

growth focus -- responsibility very high much and production on quarter, and and operating margins. fiscal growth second we Our

per the XX% over our release, in in equivalent average day, up we of oil production. mentioned averaged from one As press X,XXX barrels quarter

wells production multiple these and picked our have growth going into third our and wells online, expect to early will early of second flowback We rig rig stages We the other our continue of and are going accelerate wells ramp we up quarter, forward. XXXX. the early in as that come profile up second in addition

operative acreage climate. destiny, which very Our our high -- operating our swaps properties some contiguous our control is our high percentage of We the us effectuated which second during acreage properties. business of today's in own to increased position, quarter, percent allows important also

day the acquisitions these is will in we from that be add addition, which made multiple production of as that barrels X,XXX up a acreage in our on. of closing add position approximately our remainder to the included and those not the will our remainder for we X,XXX we year, the net almost In that later XXXX, acquisitions discuss to acres acquisitions process guidance, will of

working interest our cycle full these costs some cut units with oil increase in in and expect economics. leading contribute our our expertise the third and our acquisitions close our quarter. We of to to in oil It'll operating and

cash barrel Both of quarter price Boe. equivalent. an leading. realized peer margins second $XX.XX cash per these, $XX.XX average of operating margin Our realized a and our price was are And operating price

going excited to what's about efficiency our now the in extremely I’ll capital on. we're presentation. and refer X So, slide And

growth. deliver We are always capital continuing efficient to

our from effect compared in XX% X,XXX X,XXX barrels quarter. to increased production first in the Our barrels versus quarter first

increase, as That million. XX% mentioned. was went EBITDA a up from almost Our to XX% $XX.X

income us drives oil mentioned leading before, than more And as these are it our and XX% our gives valuable stream production numbers. high peer Boes And team Our XX% of liquids with peers margins. and XX%. our We to And the and production. same attribute that quarter-over-quarter operations that. drilled lateral able to amount drilling almost go increased our have being all foot do of different

wells. more faster And allows this the drilling we're to reservoirs. efficient more us we're exposure So have to and drilling

sheet our stay to strong, Our as continues small balance of amount by evidenced debt.

net only course, In $X.X little of million. million fact, $XXX And, we our I'll a bit borrowing refer later. debt base. And is have that

unhedged metrics some of is of peer and some $XX.XX, absolutely XX% into WTI go I we on mentioned, basis. which realized As we are slide relative prices leading index phenomenal there are. X, our to our of peers key an of have That other

also high still a which peers. our $XX.XX to barrel, extremely Our process compared hedged is Boe

giving of barrels through a forecasted process. hedged oil less this production, strong to our represents oil $XX XX% us are XXXX. barrel good Our quarter at the than exposure And of second

Our gas peers. And we're our margin index. quarter in oil was cash higher about XX% of the than that. WTI the second is this Again, any of and excited extremely

us Our this margins. quarter drive G&A high by XX% operating helps cash decreased and that over

a organization. We have efficient very

equipment average months. drilled feet, over quarter XXX%, totaled feet last million horizontal $XX and And that daily the DCE&F for production costs four XXX,XXX six related of two for We our not south water wells. lateral our wells, first include the disposal horizontal in And $XX.X facility during our was first full including the our CapEx two quarters. and our up Our costs and costs, handling always transparency, was costs. to million we water

And we that is a of a price which mentioned, through the – a continue as barrels hedged, approximately growth forward. go as X,XXX of growth company first and $XX barrel we at day quarter are we XXXX. to we have a So the expect

about Presidentm over efficiency going our and turn to to is more going to our operations Mike am our I talk he's capital and Hollis, who program the Now

Michael Hollis

sides let accomplishing of We've our impeccable such on power all capital equation, know ESG I'd start our efficiency realized thanking organization, solar goals. and OpEx, key receiving all this, made proud agreements, am CapEx and them we're local time. by progress upgrades, in our initiatives, and of like recycling to marketing attacking the objectives of sourcing Jack. higher our and reducing record, great Thanks, With production. our much prices, while for our efficiency, our increasing achieving advancing a and short operating how I safety rapidly while so and all while sand, maintaining

feet. approximately have for development. more positions We've in optimized wells turn three we capital foot dramatically $XXX links you'll over allowing X, Slide the the quarters, $X average efficiency. per despite recent large increased consistent costs, are reduced plus we've costs. we all past we've the XX,XXX see pressures. efficiency IPO, maintained a capital to capital acreage longer efficient. and achieve We've If inflationary foot roughly to field also continue And lateral of These benefit DCE&F to Since

team we on is are drilling making TD on longer metrics. Our XX% drilling always our improvements Since much reaching wells. IPO, faster

our to on keep foot move And is this our per as more Our recent DCE&F excited produce cost makeup that -- in into goal able the relatively upstream most We're environment. active our for need fluid. second pad. fluids we these produce is to flat recycling up quarter HighPeak to reduce four-well report, to XX% several stages. costs. use were we any This fluid on began

major emissions to sand in source which the truck to traffic. minimize have also local cost, plan benefits reducing ESG transportation mines of also infield We

focused us increasing production, be primarily to on while efficiency. pads, pad drilling optimize will rig second infield Our multi-well allowing

less continue payout a $XX oil. months in And payout flat will than at XX,XXX at seven top oil. year still foot economics be Wolfcamp less than strong. Our to $XX in A wells

Our as Lower continue Spraberry well. to economics well be compelling

with you turn efficiency operational margins. just If me seven and slide

that Here's another differentiating factor large compelling. makes HighPeak

jack X,XXX different. BOE earlier, are As mentioned roughly a is day

to the our amongst is worth Because HighPeak's valuable centre XX% unit. of per liquids. continues results. produce of all continue quarter cost And to you unit down. see the cash the highest to this that in our HighPeak to can for BOE and This slide, liquid BOE our group. decrease. left our that And to the margin cost our right on right for per chart turn XX% having oil, the is from oil that equates Moving inherently in making peer and shows second XX% cash cut. more BOE cut oil, chart The BOE BOE more for as Because

will move as second X was Please have per is margin the OpEx than peer. Phase well so, into we recycling turn eight will closest our to infrastructure HighPeak's of HighPeak's cost higher, operated and as This next increased more capability, BOE for $XX.XX. owned fluid and HighPeak is closest CapEx. produced the company Our will now than efficient the and of provide X as Phase is our reducing slide our higher this second benefit operational. which for the average. the quarter future. XX% our Infrastructure $XX.XX now owned higher continues per revenue and than fluid system disposal This company our update. economics next for quarter peer significantly BOE and positively was our XX% cash impact

fluids has begun As our relating for completion produce before, operations mentioned to. HighPeak utilizing to

second, replacement should and NGL quarter. production. agreement emissions low horizontal operational soon. the reduce gathering need required the operate truck realized gatherer infill agreement, is here in for peak and provides system. gas compression; natural HighPeak will gathering signed our price second This the gas pressure the Our greenhouse gas install infield and increase our purchasing will is also oil project contract operational. And eliminating to signed pricing. system, gather any Ellenburger for a traffic. attractive flattop long-term and a be decrease for and provides HighPeak the crude in This rates, and drilled SWD all now once improved very expand this for The flaring,

highlights. high ahead on team to to years that This slide is now new team. turn you nothing initiatives. If our nine, ingenuity any to company and testament HighPeak's I a our experienced we size feel, are, ESG of It's ESG

forward movement, to HighPeak updates leader plans to use to that to and future continue recycle the recycling lean Again, over this produce started we time. and fluid will look be have into continue progress. an in to striving ESG providing always second our on percent quarter increase We

our our this world. complete, guidance. turn call community. had to reported our discuss employees the wells. now many the partnership joined drill We've and and solar HighPeak very This We a capital for We've using to the our signed of work local give zero also back power updated of XX-megawatt the be Highline to to player date. in agreements incidents provide electrical upgrades to second the of contract electrification. roughly reduction the need an quarter metric for a XXX,XXX have of to and into of result Essentially, will substantial future, also the over increase will we life will run for HighPeak field emissions reduce a and comments In which safety in environment Jack With in rigs with over continues us environmental to be my COX. active operate to I'll the ability recently power. farm, generators solar in tonnes operating continue entered flexible agreement post COVID

Jack Hightower

Thanks, Mike.

We're we've can the the going $XXX updated are guidance increasing the up million. and for been XXXX. As second into increase Well, overview, guidance And us. approximately see, growth projects midpoint. the increasing allow This picking will expenditures our where we've XX quarter -- And many to growth. about focused more capital D,C,E&F for these midpoint the our guidance to operational and successful of looking rig forward efficient up at future the accelerating XX plans future. you million picking wells. going drill due our our it's We're into a drilling updated we're groundwork to and investment very at be rig to to on infrastructure capital second our to XX Most us faster laid

performance on forward. responsible closer rig we any have have as will start reservoir. us wells, pad second to focused cause to with to is wells to And don't when lumpier multi-pad -- we we be the drilling our development will And that to or so development, little best well way and also recognize we drilling will is, optimize a are Our here I explain shut reservoir we that damage our that will have going development production and producing that wells, offsetting issues multi those the maximize utilizing intel efficiencies. pads. thing One location, our help mainly multi want in

helps reservoir the us it So, to more effectively. manage

And have proportionally continue so path our growing way as four for the but we're same, overall the increasing production, increasing growth two production we quarters will rigs last remain with our the next quarters. rig, will we the we've the versus lumpier should been over few one

tremendous for does, but -- the increases growth in this So and what it stage sets robust XXXX. production

XX to turning We second over slide now highlights had our in quarter. over summarize to So, responsible very XX% quarter growth quarter. company of the

way, the with growth added. being on rig production our more have second We

sheet. balance We have a strong

net dividend our fully is of that we of sheet And able so times only a that very to to our shareholders. fact, $XXX with forward. to keep in our aligned expect $X.X keep be debt We one project, increased a we drilling though to borrowing little In expect have than going our versus terms we're base million. continue million. negative initiated even to We're bit a debt going cash strong expenses. And a flow balance debt-to-EBITDA. we'll less We

liquids. in team costs keep mix great on to profit but in and of place. drives To We're in industry, allows expand with pricing, with have money budget. back with measures our XX% and get have our you expect putting that forward, though, high is inflation importantly, oil, to and product Mike can the our leading the well, compared low peers economics. going we terms only efficiencies. not And workers operational costs, excellence, to our Most costs see focused these our We best low operating great I mentioned, superior XX% have constantly us are and that in we very capital capital even quickly line pressures have our as keep realized This great the to efficiencies. taking think, pure as we place margins, we

HighPeak. see, kept almost you quarter our And efficiently. We call We're I'd on questions the be Everybody might have. that, future. another organization. I open successful responsible in like we for for the working extremely EBITDA. can with have continue up set And the our sheet positive is any to strong. stage focused as and we growth. earnings, So of doubling balance great things is proud working great had our We generated hard, And everybody to anybody for

Operator

question Neil Securities. Our Thank you. Truist Dingmann from [Operator comes with Instructions] first

open. now is line Your

Neil Dingmann

and sort Jack, going of overall these a just your is obviously of guys, now, Hi, I your sort want picture the return. quarters you obviously, shareholder details. big of road. all thanks I the topic Once stabilized sort between for growth headset Few and say, more don't days, down know, the a there's growth the forward. philosophy obviously have, philosophy let's

about do how think those? So you balancing

Jack Hightower

question, great Neil. a That's

terms understand market, the the want low volatility like balance. of of looking try One that I ourselves but things generally always some peers maintain of with have the the a in get leverage and think our situation. trouble to to future we is, We about to We leverage, road done don't down in in in want we past.

drilling that. So we inventory we're But locations. have going of a to maintain year XX

so, always all stabilize we as delude a make we as in growth situation we're drill we're the our profile to where increase And cash have -- quickly, we flow. going and we acquisitions through production, balanced excess bit. our very be with will -- Historically, not well have And will as but don't prices have an as acquisition, unnecessarily. to not we ourselves

we're to need worry we're recent very making, is i.e., not something acquisition growing the to company. about that the unless So, accretive, going

have right for growth enough question. Hopefully, five years. very locations next to your We effective that internally the XX answers now have

Neil Dingmann

great. from maybe No and details Mike. Great one

and could lot Just just that given of you you typical to to and I like needed on they've talked get about I'm I'm you've point? time and just pressure that of talk good area, what production all is hit wondering continuous that that more wondering, you've the the details. peak a the floor see this once back a maybe once

Michael Hollis

up ESP and typically on from Yes, day one. pump day Neil, put these wells the typically, northern go our wells in on we area them

a will flat time D, kind on on from it pump And put time top a and to we wells but varies you little, flow production" move and and signal Now, time fluid. A typically a lot being our takes like It period for Lower again, these Spraberry. peak "peak naturally month to stay the reach our the period a on south wells back able made Wolfcamp about flow Wolf those to it'll for longer limited it of of peak to the production. a of at your enough you back that have, because of a

longer So, got overall again, in on you wells part how of between at than for our pretty mature months A higher When itself we the its little we've on one up. Spraberry perm wells put time, oil then get the in initial clean And what rates one level several it'll a and same basin, may and pad have a time. pumps nearly we area, you -- the in into also it's some little large and at these specially a on at would it the stay well an slightly of the can in offset turn And you quicker in a single again flat it peak little area center decline less to where can depends several more get and you at a start well a area where and can takes we've by our do that reservoir. it Lower the multi-well A little and many changes future. a time the decline.

So, a not in little of than different. center the different basin, the couple but weeks it's again, Again that longer. part a

Neil Dingmann

you Thank both. Great.

Michael Hollis

You bet. Neil. you, Thank

Operator

from our question White Thank Capital. ROTH comes John with next you. And

open. is line Your

John White

thanks strong on Congratulations a for taking quarter question. and my

Jack Hightower

You're welcome.

Michael Hollis

Thank you, John.

John White

during include of release, Jack commented, you completed that that have press XX the of In flow are the wells back. in wells the quarter? second multiple Does that early all stages were

Jack Hightower

elaborate that? further want Yes. Mike, on you to

Michael Hollis

we're doing the picked we rig, DUCs any natural what especially your multi-well sure. follow a as operational pads. call right, John, look we in -- number that there's of Yes, Yes, especially second rig, as up behind

peak the significantly. The last six of have those of very that four or were cleanup cleaned the of up the reach in five So, quarter, kind closer of behind first that XX to to roughly, period, began to rate and a wells the are kind or in completed production less kind And of in initial because will five rig. they the lag kind operational from out end cadence follow quarter. number were forever of the wells of a that rigs couple or more moving wells to portion the

there It's what behind nothing expect, or different having indicating we cadence normal longer. wells up any cleaning So taking that would – rigs. more than there nothing just the literally – with was

John White

want on two Thanks comments to Okay. you your or expectations the And Peak, compare? Signal how wells for wells they offer very much. in those your

Jack Hightower

do those John. right this the Boe presently even that. a Both the those course, formation. go Yeah. they And our X,XXX is about nor. bit well We're of very they're doing immediate into of We west both we movement improve economically, and about excited we're like wells have ratios, little wells excited as to well the on gas, But – some well equivalents higher we the feel can that wells very to forward. of created of us making at compared very and oil

the more going there. However, in them to efficient the is operating expenses of and forward terms much online ability get faster down

we're that. So about excited

other we lateral. a in terms early so And we're in its – at drilled excited, also early, lateral, It's stages about just that short a up of of and need day it's it's XX,XX more out very feet now. we only the right time. too The well, XXX it's well, cleaning well Wolf it's but well, C early barrels equivalent daily

more we go encouraging to improve how going could information that formation. forward complete terms every we're by as it's of will more as the day. day at about that So in on And and very learning we how well lateral long, But this foot give XX,XXX to more wells. significantly as

John White

remain in the one for And is Flat mix of that'll to Top, balance question, that on details. the brief focused just Thanks year last the correct? of drilling those

Jack Hightower

maybe Signal wells Yes, were X% less Flat our of drilling than definitely. Peak. to be at Most in thinking our drilled be will up XX% We of Top. down will

John White

much. All operator. to very it Thanks back pass right. the I'll

Jack Hightower

Thank you.

Operator

next from Water our Tower Jeff comes Research. question with Thank Robertson you. And

is Your line open.

Jeff Robertson

recycled of control Thank Boe, dollars to you. electrify the in costs, with you water terms what anticipate savings kind sand and you all Mike, some have and you also quantify in you on XXXX? of initiatives, per as can operating of

Michael Hollis

couple more completed Boe pieces the You maybe side, really bet, CapEx, a the more foot, dollar the just dollar And Jeff. electrification they are per – per on of those the other be will of the completed so on it'd see. really

start pretty of couple quarter have early public company per are XQ, But public this and costs going had taking indicative several They're you sand and that or up announcements trucking is of what savings. their when Top local us the sand. sand per showing as of that about to I'll mines, companies guys saw up were be very going late up are was recent fuel think other about is ago So, at you a mine two will $XX,XXX Jeff the that Flat be see. very a saving to two cost operational we're we'll going them $XXX,XXX wet run up. I see. they close XQ, going quarter through other for and a the from, representative And well announcements now what It'll going sand, that's as well we're and

to want or purchase huge the folks we farmers you As from and have for capital recycle fluid, produce recycling Rosa to fairly absolutely $X.XX local transport to on we that barrel to is able versus typically reservoirs cost it's you fresh try everything that benefit, in range large -- we utilize water fluid utilizing savings a or don't have. want ESG any it. Santa We One, for aquifers. or is buying more usable continue drink. there, a to from are water have that and There be to per to

surface our SWD location. Here the our path right runs line of down

cost the reduces the of transporting greatly fluid. it So

the frac going as a going do, bit to tank the a fluid into that virtually little we no other treating of cost to prior has through well job. than have As

the standpoint farm next substation the On on electrification LOE couple tied lifting we per in. energize an cost solar the of until piece, barrel from the in $X over get kind quarters of

generators and where and and getting of grids call out micro taken bank of more We generators generators. we've building than single we step what a we efficient are the that going see have will

in So from those the going out cost field. forward, generation you'll see

the generating $X.XX quarters for range when that dramatic your a you emissions power, see highline within, go from you're rough we it per you're buy to is Over own off next you standpoint. couple if Jeff, this only kilowatt power, as power, in numbers a highline the for you'll drop a in saving, not but a from standpoint, range versus as an huge $X.XX cost is well you're

So do the you'll able see a our dramatic again change dual reducing rigs run goals. fuel on drilling enough highline some capacity our need such we we'll CNG are capable. off diesel in an XXXX And for of spare system, as fuel, of our the when that got power to we've lifting that be and rigs operator

every thing on got to the We're to we of we're in these try place turning can as out footprint. can rock we've that's a every see lot knob both that our over find there we've turning us all as cost next So that initiatives we got environmental standpoint, easily available. help of well

Jeff Robertson

the what you producing? Thank and the that. in mix? it of acquisitions similar that acreage And is on the production where Can Boe are currently about commodity you're you're acquisitions. also Jack the the And to XXXX you that talk for life on buying? Mike very Is then

Michael Hollis

Yeah, very similar.

in course, were Of whole some four of acquisitions that trades in multiple involved there excess scenario. in acquisitions

and involve excited part in we're and cash also terms basis, but destiny from LOE compared to thus profit or control able interest and drilling the range a expenses, the with of us, and a a of about having in will staying XX% net of payout, far, involved, made being margins of perspective oil and going XX peers, flow really about acquisition timely. the that. And our on XX% plus with our our our were efficiently oil our in both our from some we've and to low very to acreage not acquisitions still same of cut, and that perspective, with development development, our an stay non-op own some rig perspective accreting the from the to the and so forward to some terms And lesser deal control they region's

Jeff Robertson

it without of costs fair own of added are is Jack any since interest adding you some it? So already really those to essentially working in that barrels think, some

Jack Hightower

working the Yeah, that look is yet, a economically, There up that, in way But manner. the of costs question creative course, made have we no we're a good interest, we associated picking with that interest. is very since already to it. at acquisition

we're our So get we'll well and proved to quickly add -- getting opportunities. as our back very as development money

Jeff Robertson

Great, very you much. thank

Steven Tholen

here's Thank follow-up Roth White a question you. John And you. Thank with Operator: from Capital.

is line Your open.

John White

That was effect will an your detail excellent amount of how it infrastructure and of work OE. on the your reduce

price be on oil and differential? should we gathering Following work, oil crude and us maybe frame to crude your takeaway looking give some time for decreased a

Jack Hightower

Go ahead Mike.

Michael Hollis

pay those Delic going some lower be to up change all-in be barrels will an go our that number again, range. we to $X.XX that's -- that market so with which the barrels And doing so going in a we But third in start either for to to was price. realized will kind and marketing see peers and we’re flattop, a a fee. being trucking those to half of have our of numbers will John. ready Yeah, getting the we're to deal with have all pipe, the range got everything we've the in somewhere from begin, We're quarter, we agreement we've to what to that market. [ph], right You for done trucking all-in away beginning our for some fee as of typically gathering of, odd opposed would construction. bet, used $X.XX-ish And raid, than in what that transportation kind marketing, the to that's purchase

change and turning our start point, on today the purchase, of closer dirt to can come quarter; tight So in gathering of been to living as infield, stage, our to low we'll that going start change, we with realized again, our all we to get over fourth in price. to to we're the system end the again, that's some just that's those gas pipes our NGLs about gas large we produce gathering sell on gas. And is it's our a where about And so see starting pressure it's away right Again, same into of that to in get that pricing the installed. get well pipes as there. one changes out we're

build or gas this system in of nearby, we out and we what large, infrastructure central reduce our saw our very got but again both new tank with oil Top, that built our any multiple take in on going we've I such think, batteries or done farther, Top, large the emissions. side, is so coming development as plan very, the a Flat or we tank Flat place in department have what majority with months Top. a And around so marketing and vast to the fugitive got future that over the Guy put in have only we year ready to are in nine and that batteries So of time. today plans next -- step sorry, our we for drill I'm will all it several signal ahead service years Flat can

have can that recovery our recovery we've central units you by what's -- put those permit rule a a that having our so vapor called we in reduce typically towers, fugitive batteries, battery small in already battery. that emissions would tank and vapor be going So tank would from

has most front, scalable, that already that's trying we're of in system a build been get spent. to capital So again, expandable,

and we All batteries cheaper wells tank or two put is additional no do west battery wells, out to and a we DCE three to much that or to east we FPs. wells when build F-Cost that the currently an fits. where development go have at So have longer upgrade for

So time that fruition coming all we're seeing initiatives, pre-planning the in individual to that very together industry for those of again, pieces, getting beginning move. right with all and of people at it's active. the and is prices fuel And

line from We that in and the of further to of our see in us will public to keep prior advantage we've be done and that markets. all of able work peers all costs take our differentiate

Jack Hightower

question. what further add just to Mike your of John, your beginning first And, with to part said,

increase us to and definitely investment which -- this investment purchasers the And are our lower being future. profit dollars great that margins. and As going the you will of differential and spent on give going we can most spent, are profits by higher return be our dollars see, these into lower

John White

did positive. to that sounds had you. the -- you you confirm, And very second Thank SWD well? Mike just all completed say It

Michael Hollis

the -- and is completion drilled. It's sir. there's injection. and Yes, well stimulate And second the run lot with SWD of to a not that We go well whole happen. slightly then has an again, tubing, start SWD,

the got build. battery we've So

well talking So weeks, within have we're we'll that operational.

John White

Thanks pass I'll it again. along.

Michael Hollis

John. Thanks, bet. You

Operator

I'm time, questions the I'd this Jack further conference to at And no over closing in to hand queue. Mr. showing you. for the like back remarks. Thank any Hightower

Jack Hightower

more your Thank everybody much. learn and company very what that you attend and We're about doing. Yes. glad we're

oil up. success, going we've As the excited can't really stay more And I and about forward look our profile to made and CEO we our prices be that of and what's to continue on. our hope continuing the industry. The company, is progress gas make unprecedented and growth in continuing

drilling. profits they or on our return excess can are now are So like internal XXX% of in wells we the of rate stay

in much our prudent this and just great pretty So is that We've of reservoirs we it's almost now. perspective way off our a and start. we're to concluded function all developing acreage acreage a know of now

So support participation. thank you your your for and

Operator

your This concludes Thank call. conference participation. today's you for

wonderful disconnect. now have a Everyone may day. You

HighPeak Energy (HPK) 10 Aug 212021 Q2 Earnings call transcript