HighPeak Energy, Inc. (“HighPeak” or the “Company”) (NASDAQ: HPK)
today provided the following financing update.
Financing Update
The Company is currently evaluating multiple
prospective financing arrangements to refinance its February 2024
Senior Notes (“February Notes”) and November 2024 Senior Notes
(together with the February Notes, the “Existing Notes”) and
enhance liquidity. Although the Company continues to progress its
refinancing efforts, it no longer anticipates consummating the
conditional redemption of its Existing Notes on June 30, 2023 as
contemplated by the conditional notice of redemption therefor
previously delivered to the holders of such Existing Notes.
As a result of the Company’s ongoing refinancing
process, the Administrative Agent under the Company’s Credit
Facility has agreed to a postponement of the date on which the
Company was previously obligated thereunder to either extend the
maturity of its February Notes, refinance its February Notes or
allocate a portion of its cash flow to retire the February Notes,
until July 31, 2023. In addition, the Company is in discussions
with the lenders under its Credit Facility regarding an anticipated
increase of the Company’s elected commitments under such Credit
Facility and continues to discuss with such lenders an anticipated
accommodation of additional covenant waivers and extensions.
This press release does not constitute an offer
to sell, a solicitation to buy or an offer to purchase or sell any
securities, nor shall there be any sale of these securities in any
state or jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.
About HighPeak Energy, Inc.
HighPeak Energy, Inc. is a publicly traded
independent crude oil and natural gas company, headquartered in
Fort Worth, Texas, focused on the acquisition, development,
exploration and exploitation of unconventional crude oil and
natural gas reserves in the Midland Basin in West Texas.
Cautionary Note Regarding
Forward-Looking Statements
The information in this press release contains forward-looking
statements that involve risks and uncertainties. When used in this
document, the words “believes,” “plans,” “expects,” “anticipates,”
“forecasts,” “intends,” “continue,” “may,” “will,” “could,”
“should,” “future,” “potential,” “estimate” or the negative of such
terms and similar expressions as they relate to HighPeak Energy,
Inc. (“HighPeak Energy,” the “Company” or the “Successor”) are
intended to identify forward-looking statements, which are
generally not historical in nature. The forward-looking statements
are based on the Company's current expectations, assumptions,
estimates and projections about the Company and the industry in
which the Company operates. Although the Company believes that the
expectations and assumptions reflected in the forward-looking
statements are reasonable as and when made, they involve risks and
uncertainties that are difficult to predict and, in many cases,
beyond the Company's control. For example, the Company’s review of
strategic alternatives may not result in a sale of the Company, a
recommendation that a transaction occur or result in a completed
transaction, and any transaction that occurs may not increase
shareholder value, in each case as a result of such risks and
uncertainties.
These risks and uncertainties include, among other things, the
results of the Company’s ongoing discussions with existing lenders
and ability to refinance the Existing Notes, the ability of the
Company to have adequate liquidity and comply with the terms of its
indebtedness, results of the strategic reviews being undertaken by
the Company’s Board and the interest of prospective counterparties,
the Company’s ability to realize the results contemplated by its
current business plan, volatility of commodity prices, product
supply and demand, the impact of a widespread outbreak of an
illness, such as the coronavirus disease pandemic, on global and
U.S. economic activity, competition, the ability to obtain
environmental and other permits and the timing thereof, other
government regulation or action, the ability to obtain approvals
from third parties and negotiate agreements with third parties on
mutually acceptable terms, litigation, the costs and results of
drilling and operations, availability of equipment, services,
resources and personnel required to perform the Company's drilling
and operating activities, access to and availability of
transportation, processing, fractionation, refining and storage
facilities, HighPeak Energy's ability to replace reserves,
implement its business plans or complete its development activities
as scheduled, access to and cost of capital, the financial strength
of counterparties to any credit facility and derivative contracts
entered into by HighPeak Energy, if any, and purchasers of HighPeak
Energy's oil, natural gas liquids and natural gas production,
uncertainties about estimates of reserves, identification of
drilling locations and the ability to add proved reserves in the
future, the assumptions underlying forecasts, including forecasts
of production, expenses, cash flow from sales of oil and gas and
tax rates, quality of technical data, environmental and weather
risks, including the possible impacts of climate change,
cybersecurity risks and acts of war or terrorism. Specifically,
failure to redeem or refinance the Existing Notes on or before
September 1, 2023, allocate a portion of our cash flow that will
retire such Existing Notes on or before November 30, 2023 or amend
the terms of such Existing Notes to extend the scheduled repayment
thereof to no earlier than February 15, 2025 by September 1, 2023
will result in an event of default under our Credit Agreement and
an acceleration of the repayment of all amounts outstanding
thereunder. These and other risks are described in the Company's
Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and
Current Reports on Form 8-K and other filings with the SEC. The
Company undertakes no duty to publicly update these statements
except as required by law.
Investor Contact:
Ryan HightowerVice President, Business
Development817.850.9204rhightower@highpeakenergy.com
Source: HighPeak Energy, Inc.
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