HighPeak Energy: Reducing Its Net Debt With A Conservative 2026 Development Plan

Elephant AnalyticsInvesting Group LeaderFollow5ShareSavePlay(11min)CommentsSummaryHighPeak Energy is projected to generate $155 million in 2026 free cash flow at the current $81 to $82 strip and its guidance midpoint.It is significantly hedged on oil in 2026 and is projected to have $109 million in 2026 hedging losses.HighPeak's oil cut went from 72% in Q1 2025 to 64% in Q4 2025.It provided guidance for 67% to 68% oil in 2026, but I believe there is some downside risk there.HighPeak also suspended its dividend to allow it to put more money towards debt reduction.Looking for more investing ideas like this one? Get them exclusively at Distressed Value Investing. Learn More » halbergman/iStock via Getty Images HighPeak Energy (HPK) is focusing on debt reduction, having unveiled a more conservative 2026 development plan while also suspending its dividend. It previously had discussed a two-rig program at $60 to $70 WTI oilThis article was written byElephant Analytics11.81K FollowersFollowAaron Chow, aka Elephant Analytics has 15+ years of analytical experience and is a top rated analyst on TipRanks. Aaron previously co-founded a mobile gaming company (Absolute Games) that was acquired by PENN Entertainment. He used his analytical and modeling skills to design the in-game economic models for two mobile apps with over 30 million in combined installs. He is the author of the investing group Distressed Value Investing, which focuses on both value opportunities and distressed plays, with a significant focus on the energy sector. Learn more>>Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.