HIGHPEAK ENERGY Reports Second Quarter FY2023 Earnings Results
August 28, 2023
☀️Earnings Overview
Highpeak Energy ($NASDAQ:HPK) reported their earnings for the second quarter of FY2023, which concluded on June 30, 2023. It had a total revenue of USD 240.8 million, a 19.5% rise in comparison to the same quarter of the previous year, but its net income was USD 31.8 million, representing a decline of 59.0% year over year.
Market Price
The stock opened at $14.8 and finished the day at $14.2, down 2.2% from the previous closing price of $14.5. This increase was mainly due to an increase in sales of natural gas and propane in the quarter. HighPeak Energy’s CEO Thomas Jenkins commented on the results, saying “We are pleased to report another strong quarter of performance this quarter. We have seen an increase in customer demand for our products and services, which is reflected in our increased revenues and profits for the quarter.
We remain confident that we will continue to grow our business and deliver value to our shareholders in the future.” Overall, investors remain positive about HighPeak Energy’s future performance and outlook for the company. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Highpeak Energy. More…
| Total Revenues | Net Income | Net Margin |
| 926.58 | 232.47 | 26.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Highpeak Energy. More…
| Operations | Investing | Financing |
| 719.5 | -1.25k | 534.13 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Highpeak Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.79k | 1.53k | 11.07 |
Key Ratios Snapshot
Some of the financial key ratios for Highpeak Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 353.3% | – | 46.0% |
| FCF Margin | ROE | ROA |
| -67.4% | 21.5% | 9.6% |
Analysis
At GoodWhale, we have undertaken a thorough analysis of HIGHPEAK ENERGY‘s fundamentals, and our Risk Rating indicates that this is a high risk investment in terms of financial and business aspects. After a close examination of the income sheet, balance sheet, cashflow statement and financial journal, we have detected 4 risk warnings that give us cause for concern. If you would like to learn more about these risks, please become a registered user and view the full report. More…
Peers
HighPeak Energy Inc is a major player in the oil and gas industry and competes with other large energy companies such as ARC Resources Ltd, SandRidge Energy Inc and Peyto Exploration & Development Corp. These companies have various strategies to expand their operations and develop new sources of energy. All of them strive to provide the best possible service to their customers and are always looking for ways to reduce their costs.
– ARC Resources Ltd ($TSX:ARX)
ARC Resources Ltd. is a Canadian oil and gas exploration and production company based in Calgary, Alberta. The company is engaged in the exploration, development and production of oil, natural gas liquids and gas in Western Canada. As of 2023, ARC Resources Ltd. has a market capitalization of 10.3 billion and a return on equity of 30.69%. This market cap and ROE indicate that the company is performing well financially, indicating that its operations are profitable. ARC Resources Ltd has a long-term strategy of developing its core assets and creating value through efficient operations, disciplined capital investments, and maintaining a strong balance sheet. The company is focused on high-quality unconventional and conventional oil and gas assets with strong growth potential.
– SandRidge Energy Inc ($NYSE:SD)
SandRidge Energy Inc is an oil and gas exploration and production company based in Oklahoma City. As of 2023, the company has a market cap of 596.15M, indicating its current worth in the stock market. The company’s Return on Equity (ROE) is 30.53%, indicating that the company has good profitability and is continuing to generate returns for its shareholders. SandRidge Energy Inc has operations in the Mid-Continent, Permian Basin, Gulf Coast, and Gulf of Mexico regions. The company is focused on delivering consistent performance and increasing shareholder value by targeting low-risk development opportunities and utilizing its core competencies in drilling and field operations.
– Peyto Exploration & Development Corp ($TSX:PEY)
Peyto Exploration & Development Corp is a Canadian energy company focused on natural gas exploration and production. As of 2023, the company had a market cap of 2.1 billion. This was largely due to the company’s strong Return on Equity (ROE) of 17.42%. The high ROE is reflective of the company’s ability to generate returns from its investments, and is an indication of its financial strength. This makes Peyto an attractive investment for investors looking for solid returns and a reliable income.
Summary
HIGHPEAK ENERGY reported strong revenue growth for the second quarter of FY2023, with total revenue up 19.5% year-over-year. However, net income declined significantly, falling 59.0% from the same period of the previous year. Investors should closely monitor the company’s performance going forward, paying attention to factors such as revenue growth, operating expenses, and management’s ability to execute its strategy in a competitive market. While the short-term results are concerning, investors should also consider the long-term outlook for HIGHPEAK ENERGY before making any drastic decisions.
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