HPK - Earnings call transcript Q3 2021

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Operator

00:07 Good day and thank you for standing by and welcome to the HighPeak Energy Twenty Twenty One Third 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]. 00:33 I would now like to hand the conference over to your first speaker today, Steven Tholen, Chief Financial Officer.

sir. begin, may You

Steven Tholen

and everyone, Chief one to today conference Jack Steven Michael and morning, Ryan Business quarter and Officer. Hightower; are Energy's twenty CEO, I'm Hollis; President, and twenty call. I'm Hightower; President and Good and HighPeak Development, the welcome Tholen, third Chairman Vice Financial XX:XX Representing HighPeak

be website. twenty our assumptions, and our Presentation Today's today's we one release, may forward-looking During earnings Investor make call, HighPeak's plans, condition, performance. will the statements November make of found which participants call relating goals, can quarter operations, future expectations, XX:XX company's reference twenty on results to certain and third financial to

filings, to regarding of actual cautionary to information that beyond certain non-GAAP refer from related results call. will forward-looking may please measures XX:XX differ risks today's of refer expectations many the our variety the company's a including control. due to We on materially fact and So are SEC which our reasons, statements in financial the also

So in afternoon. the Monday which issued was reconciliations see the earnings release, please

begin remarks our to now Chairman Our over November Jack the will XX:XX I prepared four will slide investor turn CEO and our call on Hightower. presentation. of

Jack Hightower

Top the some throughout that's five to had I'll detail rebounded getting since But be are release lumpy for our presentation. want have now much so the you, temporarily quarter twenty volumes rate more the very go and to exciting two. have successfully this significant financials we we can we that tremendous online area. at producing you on And having oil us, we lumpy starting basically, of production production. therefore, which we've call, And oil October, earlier, production almost you the averaging production new and our our we a our quarter. we quarter early XX:XX in success our in that We our at that Thank We've and quarter. XX:XX thousand into margin We're and come our in – have not production our growth in barrels produce. and conference And our look how that and we as production, when everybody mentioned as introduction had you know of third story this to above increase then would production, back exciting. hundred Flat to online have day third is and cause for in approximately August is new second to And having benefit pads I welcome look wells. is of fill call. third financial over that much back behind adding But very It wells of drilling press our mentioned third fifteen eighty your wells. our expected getting back is operating a nicely the our report beginning volumes focused the numbers we're wells been you because in this our a cartel a shows twenty an for percent as go in increase

rig fourth product that market. strength another rig rig late in going in production are well So production wells a addition full then October of the that meaningful and in with contribute volumes begin it's economics in are third end rig add commodity added two. excellent rig. We've So, the now drilled plan of we're twenty our to And XX:XX of these to due to levels current year will development important to a early second initial note program. to our one our

all forward our this for to than We our philosophy saying continue one time we'll is value do present while debt-to-EBITDA. investors maintaining yet will pull our less and

and So, forward. financials through as talk we go go the that about we'll

presentation. really four it's to Now slide your turn interesting. XX:XX on And

I we open Howard a County, we compared think told day what and when acreage hundred at of to top faded acreage it's two but be that our day our added last see you we've conference production from white all our contiguous everybody now, quarter. block, in have acreage signal will look activity quarter, Howard two the line we in the the nine all. peak eighty barrels blocks position. the and the County flat eight barrels a a In tremendous and to what first averaged hundred And to call is course,

barrels between since This still to five sixty mid-October, have we've we our during thousand but position, and had during hundred gave we've hundred We frac And a position almost end locations. and acreage shut period hundred literally a ten up four our fifteen day significantly thousand six increased a additional of wells. two percent barrels and this thousand of ninety quarter. averaged additional acreage day, acres acreage we operate us to more two one thousand the closed six

there twenty later, throughout when drilling, have inventory, beyond. plenty of to even value continue a So increases our plenty production those three and of us, and we'll talk twenty are going at is whole we're increasing and look you going that forward about rigs with to four

any our we explanation or with storm we period back in that the thirty hundred that and and is have the of very, least to the of day, was eighty it that in three of we have then and most are On we still quarter. to And XX:XX the we a one of the from had next barrels margins that started an a one of the and barrels five our price thousand then operating our took eight page fifty a three peers also through when three have three off, the highest you up sixty COVID-XX exciting quarter. Been three quarter, fifty winter production increased of started day get the production started taking of program to to hundred categories first we course, those into getting this slide, where period. a all time, at of during We of we our the most third short the that year back through have eighteen just average the expedientially. cash realized and production slide growth gives the online we're going quarter then we and XX:XX is have second each on during offset next going that's continue up of with fracking that into rig then sudden or our throughout and inhibit growing shut and number our fourth fourth the significant to in and adding And And third we the twenty wells and twenty the period. the in before had our quarter quarter end growth off. getting that off look taking to beyond six. our that's at the straight third because end significant two. page, and production in one we're the of year, We're slide an and Turning to

hedges employees peers And out, receive a we continue have higher hundred SWD of we process even processes four price We increases WTI, with production had hedges our point hundred very have is plenty in including the of industry. of our the nine million later out, small that are lot of great twenty is oil any eighteen four in to feet with for to dollars that’s and we sixty lateral a our in food, up. eighty on, production CapEx was XX:XX wells. and than realized three our and of hedged amount percent point lot horizontal thousand third drilled our exposure sixty price excluding one second acquisitions, going quarter not we four of Our over our of a

top. horizontal the now in the United as our forward. needs the think go we only the and up wells, disposal this SWD is our have States, are call, in two very XX:XX As they're water in sufficiently quarter steppingstone we mentioned for really we growth So, they flat handling two

to down principally thirty our release, mentioned turn dollars dollars three and of looking that forty earnings slide million to we you that, wells six because offline. our if were million from at in having press the Now

realized our we CapEx, doing pricing what still were compared Our there, peers. our to is mentioned we fantastic

up to starting is back again. production Our come

this, knew attention I was take take the so, offline, your wells going pay LOE haven't We cost much your when And knew sense we this to we up, happen. goes goes in of, to up. G&A too these barrel you wouldn't wells offline per

will year in margins to things Mike? go we one XX:XX Michael back these the and And quarter. of turn going being operations the now this All slides. Hollis over to in the and in next I'm to very of class efficient discuss the our number some it exit few right as into

Michael Hollis

they leading keep operating capital to peer have our Thanks, On objectives start detail this statement stable on and cost by This XX:XX spite efficiency to implemented inflationary of the wide I'd cost recent in call great environment. have safety a team. made record. key our and current to our We industry of congratulating pressures. attention focus and our progress maintaining impeccable maintained levels our measures in to is their like Jack.

one increasing rapidly by cost, to and While both twenty a peer be our margins now high cuts hedge turn low unhedged production. our slide oil leading, basis. driven to XX:XX seven, on continue our If twenty you

begin in a of little operating situation, we three that and as grow right our margins the will this is our peer in steps The group. a comparing the chart to benchmarking related factors. the graph twenty the These high LOE costs force the two year. were peak quarter group bulk third our cost. G&A ran LOE drive last we all necessary down corrective and XX:XX As shown of to to twenty transitory right This slide, by Permian to peer hot. continue differentially transitory On

the third First, We our curtailing for roughly completion production overall XX:XX percent had in less lower BOEs production to due cost. material operations. spread the all to ten quarter

– until Generator ramp are supply second cost five chain two. in project twenty but fuel prior rental and two several dollars change. of quarter's their usage, driver completely our May zero our rental quarter wide This reduce twenty the substantially up. even current advance to But change transitory turn two twenty BOE two current trend our until This objectives. ESG XX:XX is a production but toward when make despite commissioned roughly until we hand goes lastly, on development substation Second, per volumes worldwide in twenty eight, the calls the side point was third which operating twenty quarter quarter down continues slide remains this our see, field up will the as to it the incurred our And to can quarter. project ramp, focused will the substation cost away on curtailed in will of flat you our well to bottlenecks. our map high of of generator new in beyond you in system. infill twenty third this the locations, production dramatically turned peak energize as wells schedule top, If second new on online, XX:XX was pad activity it multi also left electrification slide continue and on in

and peak, well successfully delineate A right key both the focus We into results acreage slide. full block. the we in development look our position third across for methodically volume. formations have well by both the quarter, our our utilize entire benches Spraberry hundred development on multi develop on high twenty our lower XX:XX signal other all our evidenced our To of transitioned of very pad begin mode the flat will as Wolfcamp peak And the robust one will In the pad top, have going forward. in percent fourth area where to we side and two. twenty rig. map across hand on acreage sides In manufacturing We initial of

laser in all the and We based and as as formation drilling area. the We acreage will the results from well well which wells well rig results standing on flat spite to we can't inflationary cost the XX:XX third excellent slide focused results of are of the Wolfcamp single quarter delineation our we pressures. our in in initiatives third successful exciting nine, prior strong remained with stress on are well recent by you turn continues team as quarter date our area. with to saving additional Wolfcamp Wolfcamp currently Spraberry the a lower A quarters as added third all our If now be up well in continue the D as our to D the the pad and from results, shown peak

operational will which benefit the lower Recycling We additional We're On And of costs fracking recycled, today, We've in cost produced stages our higher to capital are our we well one process cost. flat this inflationary for by sixty measures, fluids, averaging rig percent we're recycled. to of the sixty that recycled count. development fluid. increasing as striving will percent is as accelerate keep a help was stimulation we offset as fluid current even calls entire XX:XX percentage implementing a pad of hundred percent also fluids. many further. averaged and produced our were plans at pump third pressures quarter our

longer well a drive in high results, If our of continue reservoir hundred you project top Wolfcamp Our costs focused from well where the realized six local performance, economics well. per was emissions will and These NPV great by twelve second capital two These Spraberry, no dollars initiatives economics twenty economics of wells, of production NPVXX now than reducing fantastic. and our out differentiated anyone's well eighty flat will to reduce first activity generation dollars overall dollars in cost sand XX:XX cuts in foot Our at thousand eighteen be oil ESG and associated are in oil, quarter mine one operational to XX:XX trucking. million Tier of turn five and low product twenty pays the million slouch in Slide months of with be by These portfolio. lower efficiency coming third twenty are pricing. advance less completion phenomenal A and ten. a quarter our and

initiatives ESG the of decisions. this don't things. entire recycled second Our merely two. with needs. It's were two agreement the infrastructure remain team in thirteen recycled continues Again ESG substation also again the We third keeping our approximately our build the the our project one And third as expected right utilize will second for We we of of necessary rigs doing on time during date with need emissions all of generators to coming online HighPeak and power to and greatly the of safety equated sixty continued reduce over the we the were with the two. zones fluid quarter online for forefront reducing completed engaged of ability metrics out hyper and several twenty our of is quarter, hundred million in need result significant stimulation of barrels quarter, which a to give our to of megawatt an the again over twenty something to in farm. percent implement. This daily quarter. second highline in HighPeak produced XX:XX utilize calls We percent fluids able fluid produced us in twenty the run half XX:XX in twenty solar signed an quarter twenty view two. twenty

we've environment with daylight COVID had high power our wells. world. comments testament ingenuity, that the in had to flexible It is and and During continue be continue rapidly production. to HighPeak to safety incidents work over and we solar that to now turn a the had provide We've our hours, employees to back date operate ESG this in the while growing success our team using zero Jack. will call we've goals our to activity complete, as drill post experienced advance fees I'll recordable My

Jack Hightower

eleven slide This tells in twenty probably and in would turn of XX:XX most story like is exciting slide the twenty their to Thanks, everybody to two. I And HighPeak to Mike. presentation. a

two the and at we end of the over of we you left bar quarter, had in and at twenty and the quarter starting look If twenty up the straight curve end the on see the at first the the time. at take you beginning look then side goes third that

nine our percent on with thousand thousand and is you and to developed our oil up stayed for production what in five team So four on in a place you're we budget overall our growth dollars fifty with or thousand, their next at that really rigs XX:XX out rigs two with tremendously outlook, when million process conservative and can our company also with four with you pricing. fifty effect offering, and our at investment and has our same, parts efficiency we we this and look with our differentials next decisions. but our production under on but in running million promise also whole our that's is been our from going have, total slide, thirty approved next rig great to return our have exit feel to been the we you presentations we also because reserves, and volumes, grow almost like plan our try to growing straight so has twenty the we with and a The day reservoir the our everybody we grow forty reserves, a is. our capital that at year volumes, and per The million with We of year. grow look you at kind XX:XX prevention locations. but story growing combined the are make to as twenty are the our proved an But twelve your shareholders dollars projections month own to effect our last performance gain with have estimate, raised look the this six the and our between outlook twenty connected we're eight growth. be Board feel hundred We almost see EBITDA or almost in the that's what four dollars averaging royalty The EBITDAX plus of we to barrels year year. Directors. six approximately year. or the a we six That's tremendous an overperform know of three weeks a We outlook

those we adding million but be one million our are its operate twenty increases, and PDNP do on this most of includes only of almost three these the And our sixty We our at only the have So, quarter. but I'd some but of on growth of numbers, wells, some of we our point drilling We've is the only of growth of because actually slide to thing dollars wells. PDP some now is as thirty PDP third drill additional hundred drilled here. that's two wells and contribute will price out is because growth it these reserves our of wells. value three producing increasing dollars and profile, pre-developed three seven and end our

fourteen wells that added PDP coming We one us in to fifty that, next in reserves have almost be online fourth additional billion takes forward in business. and will to quarter going eight that excess year's of the be dollars into to

can one production our by how So wells, adding hundred goes you up. see

PUD, You've sometimes got to least at well, PUD for your superficially we two mind, one in develop say, every get locations.

of year. liquidity in growth increased the us ninety our hundred to our is proved in credit slide you the our hundred that, Turning XX:XX approximately we've financial overview, about undrawn going reserves in dollars, of of income is gives next terms that terms of plenty So at this and to in of facility liquidity. looking be million capacity production to dollars thirteen one phenomenal now company think terms if million one five up of

eligible that had point on have And that that. target our at of five did do foresee towards a on with philosophically offering plan we've and and we the than EBITDA debt-to-EBITDA be three five before don't to prices need XX:XX kind base three have not at we gives huge in terms EBITDA. million the hedge the that at good to you the quarter, public right to oil the the fourteen not ability we protect in we our approximately would was how by our our capital bringing borrowing below is a zero if healthy But at short approximately hedged. borrowing We the oil going hedge We that back accretive bullish alluded process We times zero now, plan time, can't year about on that, a for And EBITDAX don't year the an need select one-time forward XX:XX zero exiting we debt-to-EBITDA point three us three lot of forward even can sixty dollars terms to an of price projected companies of hedged a is us Now less potential Mike at one to time, position. to anything slide debt it our rig very going that the eighty. very we're now, we capital thousand four one in time. a make twenty program, have are we and point offering. year of gives that next all at and that little twenty a staying acquisition of shape this balance very getting we in are of compares looking of banks shelf were to right-offs our forward. hedges point very beyond past than on percent will to unfair wells present going increase at acquisitions did and base, Keep six. sheet production speculate and we're right debt hedge our completed look mentioned protect mind transaction the capital but our Many doing hedges peers. these on on talked we of in hundred this budget, of forward, a now day, or something. do We big end We with having because it. happening now throughout course, SX barrels or that present the volumes sure on in That's we still less we're the would of

necessary to do going kind our speculate it don't that for exposure hedge wrap the our have to mentioned, we as they XX:XX It's as insurance That's on fifteen we to philosophy. but story. protection. plenty of And an commodity, like on we're sure hedges. slide to So policy. of make So, yet up

major and quarter leap for twenty two. stepping going forward into was a some growth twenty This

pretty we've fourth that's year maintained face the the and our rig, third cost our operations drilling added leading end, inflationary rigs of true Now, our stand been And cost a is in up of they of testament to we advances, hundred in pressures. but we've Mike their second our terms able five before peer will with of they've their team structure and and continue and the dollars the like are, to business, phenomenal and foot going knowledge because technological cost. project for that five a

by We're skis. do our term leading continue going our and going getting each and going way extremely over responsible they're than take less to opportunity a hopefully, it what think we're shareholders excellence, team we're prices to not and one in cost continue company are our and leverage the but to that an I forward. me be the continue that to these to in continue work in advantage see continue going for proud we debt-to-EBITDA levels. pure to of they and it's phenomenal So, commodity the very right think I going fastest and we operational very stakeholders, we're with going just the team has our did with do way, to of now hard terms set growing lean we're to to accomplish focused And of I'll all on doing that it margins. staying going out we're and We're country, in in our for place

up have you any If I'd like questions. open at questions now, So, for all it to

Operator

from the and John? [Technical Instructions] you. question Thank Ladies ROTH First XX:XX Difficulty] of Capital. John line white [Operator gentlemen.

John White

Hello, XX:XX operator?

Jack Hightower

hear can we John, you. Hey, XX:XX

Operator

XX:XX [Multiple ask your question. Speakers]

John White

XX:XX drilling second. signal Okay. I well and is a comments a a wanted there sure you're Mr. currently that for Hollis’ to just I drilling peak, cut at understand Yeah, Wolfcamp A Spraberry the out on well, make correct? operator lower Thank you.

Jack Hightower

XX:XX That Yes. correct. is

John White

D quarter? drill in Wolfcamp plan then XX:XX fourth Okay. And at you the to

Jack Hightower

drilling well In east sir. we're five the Wolfcamp very point Wolfcamp block fourth thousand wells. Wolfcamp another Yes, portion pad our of currently and where we're A all it two foot We'll drill XX:XX move feet thousand again, move D Wolfcamp quarter, lower well D drill the down miles to and about the to bad. wells. drilling too D and pad We'll currently will of fifteen be both Spraberry southern fifteen two those again

John White

XX:XX that mentioned, that well for two? twenty of the last the pad the two going is be Okay. Wolfcamp And D to quarter twenty you in first

Jack Hightower

Yes into The the the of first end will drilling these at of sir. all roll quarter and completion fourth begin the the of first. XX:XX will wells the into roll quarter,

you'll quarter of So first see production late from all this activity.

John White

XX:XX Thanks very guidance very twenty much. And is your two twenty Okay. impressive.

Jack Hightower

it. XX:XX Thank you, John. We appreciate

John White

I'll XX:XX pass on. it

Operator

you. Thank XX:XX

Next, Research. Pope Nicholas Seaport we have with

Nicholas Pope

guys. morning Good XX:XX

Jack Hightower

morning, Good XX:XX Nicholas.

Nicholas Pope

And that as Just what kind at you I understand I online. guess about is Hey, where you to a you you in that hoping XX:XX have was to generate of look much all be model things, that guys have side I the the drop LOE talk been rigs I could Is does little the and the generators what from? up? you of going able and show the on guess bit spend more trying operations? sure the financial versus the power power of coming I seeing that where guess that's coming to how for going all to. make is project

Jack Hightower

question Nicholas. answer might that XX:XX We

we're most our You toward third point ways But in XX:XX that's in reduce locally. May the places where different called of in two solar a So, with twenty many areas five In two question. of and the top BOE that call. as having all cost, the dollars for quarter wells end a will year, stay to again hundred between cost these the averaged going as a we're is propane it power twenty in that wells total the of way third two in we're farm about thousand third May great generator, bet, project, a what's second local power of trying place. substation Nick, generation online, numerous twenty in next today a twenty with up just into quarter it on, same the this quarter total that the to generate all be putting the of will doing flat our new And grids look year per in to eight generators energized two. BOE. we're together bringing and That day other we come the it of build

that, into now and down will next year for quarter. second we BOE, So, go between the

to continue will generators. some add have We to

see twenty about in our twenty first is in you'll into the this each two, think quarter. those the a way it, quarter when our until a roughly power year, LOE twenty system. dollar flat May look third of And we quarters second going you was everything year as happens, to twenty that So at distribution the kind of one really flip and drop a can two. next you top hot Fourth barrel

rigs only CapEx So that'll going all for a benefit pumps, directly but are us. generators have not So of transfer to for direct XX:XX our lines. our the also the pumps, power plugged be into

off well the be from will hopefully solar this a getting bird running as a and efficient you wells And power well solar rigs being as operating all lot of be and will power emissions and farm grid during that little of the flavor. gives our daylight, our as we our fuel local As from power that local grid. now

Nicholas Pope

XX:XX Yeah.

Jack Hightower

so our or back that anticipate point from all seven go four point in bring twenty so bring to in dollars would nine I five to online five to about we when everything is point twenty fifty dollars our of XX:XX twenty funds. Fully LOE we that eight cost two, significant costs One down May for savings. add thing that

Nicholas Pope

in one had That's the all great. it. profile. we saw the the kind as to volume, On that Do these production you forward? third you quarter anticipate other specific kind Or rigs? any it's quarter of more Got of offset impact kind like additional just I guess third I shape production thing. of impacts the is XX:XX shouldn't going that that add see significant like you other of and

Jack Hightower

shut probably reduce in be in deep won't impact as with five way to we're with just effect, offset formations specifically that doing the and and go the in of in our it infrastructure our our close and forward the terms some place, other and is large as to pads we production impactful you again. wolf down the pads, eliminate we of nick, But impact quarter at of we have you're our the to near some not almost developing while impact twenty We're in are any Anytime, zones. fracking. going you fracking system in and large while third can ever see and we're able and percent the is having south areas had area XX:XX and

So see we don't it every like man, not happening the we quarter. third now see was in it but

Nicholas Pope

That's it. That's got great. you. appreciate I I time all had. Thank I XX:XX the guys.

Jack Hightower

XX:XX Thank you.

Operator

you. Thank XX:XX

Tower have with Jeff Research. we Water Robertson Next,

Jeff Robertson

things you've your like area? you, down opportunities to Thank done flat signal some or as enhancing delivery further XX:XX or the type top substation any solar do necessity to costs contract you of enhance all Mike, you to in Do develop opportunity electric or accrued peak that or see of that there things those area. the upgrades the same of

Jack Hightower

Yes, budget to twenty Capex way percent Thanks. the signal percent twenty at great of drilling about our seventy high top, of is going to the a five going two that's look to question. twenty five And level CapEx that XX:XX kind the of flat at peak. look CapEx you When about for

of only when flat place percent and most down signal we've in that peak. built in However, about five the seventy since has about it's the look you and been percent at in already laid up five twenty infrastructure out, infrastructure opposite, tops

Jack peaks a top, be system we single to just it in a will similar had little do The smaller. what majority of different. However, vast bit a flat little mentioned as

the infrastructure total wells CapEx of lifted for the D So be Wolfcamp lot ESP. the to power running be a will as spin opposed wells gas mainly the will lower. a From standpoint,

handling we've facilities to before the having will absolutely, place. putting right upgrade got in a gas but and put and longer period So, would gathering in oil right water time electrical have infrastructure, for go we the be the

Jeff Robertson

Sorry. then second. And I that. for my it's for turn you Thank off XX:XX lost a

for date, think out locations and deck. you some you know up will you all put you Wolfcamp put point location at that Can number previously quantify you top peak? the If the and of a or both about have counts I D. slide flat had single

Jack Hightower

average mile, fifteen thousand presentation wells out a closer six it's numbers signal D were lateral, are per section foot as that put from in Wolfcamp across thousand be morning wells are a that in to of wells but a down but Yes, density wells, the thirteen across are this mile. to Jeff, lot of updated the XX:XX these foot think of going the will six peak

Jeff Robertson

to you the then at And drilled you to next drill would feet to do the twenty of think two number least you footage Okay. third number that the your program show a tidy all in last quarter, to expect XX:XX you your the twenty capital I on slide, year? question, have number

Jack Hightower

have, per footage, closer five two with Yes, XX:XX that we twelve to looking month. thousand per twelve you're average or it's at twelve again mix the rig feet, and to wells

it five for of around for foot budget. we average have that thirteen dollars and would link, total our to So, real lateral that in that foot five twenty five thirteen get times zero what to as a think at thousand close four thousand, per you rig twelve

Jeff Robertson

Thank much. Okay. you XX:XX very

Jack Hightower

Thanks, XX:XX Jeff. bet. You

Operator

you. Thank XX:XX

with follow-up with Next, we have John White ROTH. a

John White

early follow-up XX:XX drilled comments offer? and on Thanks. offset of you wells And would wells that wells, plus it's kind the signal you completed What doing? I operator peak. those are again that how know

Jack Hightower

say, like about again, I we're and John, Yes, extremely them. excited XX:XX

eight just very kind position, prices results. with on five But we've day, the that barrels little For to there instance, acreage returns reduce a as dollars million strong oil are got Wolfcamp have oil, IP close helps of strictly rate one And rate West it's kind today's of operators thirty well. of peak fifty nice of the of a a our well bit gas a D these again, point to it. our offset and especially a gas more data our had day we're our an longer have wells. some our a non and theirs dating wells on today online, that acreage picked they've that are over give about of got and down the there from So, left of excited again, at We XX:XX well. top three right standpoint. performance being a they op we'll completed side on that very you some almost block the have look up, lay the when wells tends delay acreage wells as we In do so we to about

John White

Okay. the Southwest Slide did northeast. XX:XX like fill recent a white areas space That There's results. bit your the in those sounds eight to the of space. some southeast white Yeah. and some of There's to some On acreage. To little the with good acquisition?

Jack Hightower

market XX:XX we're always the say, we we're to showing our things No, recent they accretive add if like is the in is that looking always yellow to the acquisitions. Again, portfolio.

we this that to on can help south see well well. delineate the You to to that the slide, drilling have as

about entire talk So, again, very out [Indiscernible]. When that's the you what's here. of about what's excited yellow block, south the

high be it'll very drilled, stuff. So, It's density difficult very shallow very

may it. could of there So, it lot see we'll be But drill that some activity south south. a probably further under movement

John White

pass appreciate that you. I'll really I Thank it detail. on. Okay. XX:XX

Jack Hightower

you. Thank bet. You XX:XX

Operator

XX:XX Thank you.

Research. we Next, have Water Robertson with Tower Jeff

Jeff Robertson

much are execute high capital way lot of the to any look follow-up, trying their consolidation favor their as look flow. the spending your or pressure of or there Just company costs larger opportunities? in on competitive to like Does have the you competitive the peak to XX:XX ability that at Is cash Jack, in either Keeping a companies? your of company a at with lid terms now? on impact distributing plans the pressure changed a as

Jack Hightower

it Actually, negative of see I Jeff, competitive pressure. at a us all don't way in in impacting XX:XX terms

XX:XX can't see, a in maintaining as reserves of undoubtedly we bigger production. growth their just we than of forward, be position advantage and companies go within performance is Acreage a We we've mature. are for economics one the more box We us our attractive their We're our lot to better take each We'd but reasons build big company. the on got to and main we the build much want this, not well to be of like portfolio. our the a opportunity one acquire of because of most on is individual

beginning twenty do acreage focus And profile go of in twenty three then a share going with. our the our your that wonderful because area, with and sure [Indiscernible] page high [Indiscernible] twenty the shareholders. in So that, our to just we to question. twenty running, we answered And make that have two right rate acquisition we're opportunities. off going there's it that We return. everything profit of we and our return four. very to just do lots when early asset end for consolidation twenty look dripping acquisition at that but just very our this internal twenty want out do in at opportunities we We eventually, start go accretive slow to I get big have that's opportunities Hopefully growth we into need we continues it's if rigs be To developing of to point even and so to the is four ahead terms that a on and to than it there, of in investment to our Other position. margin, us. want with

Jeff Robertson

you. Thank That does it. Thank XX:XX you. Jack. appreciate I

Operator

call Hightower. now There the Jack you. I no Thank questions. XX:XX will over turn to are further

Jack Hightower

everybody position And thank future to for and on outstanding can that to you and you want us further to an position for accomplishing. in conversations today. forward we're development as the this for just twenty the growth us results you twenty I program extremely XX:XX excited two very the call Thank see being we're and let of much. the what know in look

Operator

participating. conference for Thank concludes today's all you This XX:XX call.

may now disconnect. You

HighPeak Energy (HPK) 9 Nov 212021 Q3 Earnings call transcript