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Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

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<h2>KEY POINTS</h2>
<ul>
<li>HighPeak announced an agreement to acquire the Howard County assets of Hannathon Petroleum LLC and other non-operating working interest owners in the Signal Peak area on April 27, 2022. HighPeak owns&nbsp;non-operated working interests in ~60% of the acreage to be acquired. Consideration consists of $255 million in cash and ~3.78 million shares of HighPeak common stock.</li>
<li>The acquisition signals management’s enthusiasm for the Signal Peak area where the company has been delineating the Wolfcamp A, Lower Spraberry, and Wolfcamp D since late 2021.</li>
<li>Pro forma for the Hannathon acquisition and several smaller deals announced in February, HighPeak’s acreage position is &gt;91,000 net acres on which management estimates are &gt;2,000 future drilling locations. Hannathon alone adds ~200 gross (~150 net) locations to the inventory.</li>
<li>The Flat Top and Signal Peak acreage blocks are large contiguous land positions well suited to long-lateral horizontal development and efficient facilities utilization. Management estimates the present value of operational synergies achievable with the Hannathon acreage is ~$70 million.</li>
<li>Including a full-year contribution from the acquired assets, HighPeak’s FY22 pro forma production outlook is 32-37 MBOE, with an estimated exit rate of 47-53 MBOE/d.</li>
<li>HighPeak is scheduled to release 1Q22 financial results after the market close on Monday, May 16, 2022. The company will host a conference call and webcast at 10:00 am CDT on Tuesday, May 17, 2022. Participants may call (833) 362-0226 and use the passcode 8847326 to access the event.</li>
</ul>
<div>COMPANY OVERVIEW</div>
<p>HighPeak Energy is a growth-oriented independent exploration and production company headquartered in Fort Worth, Texas. The company’s assets are concentrated in the northeastern portion of the Midland Basin in Texas, where it owns ~72,500 net acres, including recently announced acquisitions. Proved reserves at<br>year-end 2021, totaled 64.2 MMBOE (45% developed / 81% oil). 4Q21 production averaged 14.9 MBOE/d. Management’s latest FY22 production guidance is 27.0-32.5 MBOE/d, with an estimated 2022 exit rate of 40-45 MBOE/d. The mid-points of the full year and exit rate production guidance for 2022 imply growth rates of 220% and 357%, respectively, from the FY21 average of 9.3 MBOE/d. Our prior HighPeak content can be found&nbsp;here.&nbsp;HighPeak’s corporate homepage is&nbsp;www.highpeakenergy.com.</p>
<p>HighPeak announced an agreement to acquire the Howard County assets of Hannathon Petroleum LLC and other non-operating working interest owners in the Signal Peak area on April 27, 2022. HighPeak owns non-operated working interests in ~60% of the acreage to be acquired. Consideration consists of $255 million in cash and ~3.78 million shares of HighPeak common stock.</p>
<h2>DISCLOSURES</h2>
<div></div>
<p>Water Tower Research (“WTR”) is a professional publisher of investment research reports on public companies and, to a lesser extent, private firms (“the Companies”). WTR provides investor-focused content and digital distribution strategies designed to help companies communicate with investors.<br><br>WTR is not a registered investment adviser or a broker/dealer nor does WTR provide investment banking services. WTR operates as an exempt investment adviser under the so called “publishers’ exemption” from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940. WTR does not provide investment ratings / recommendations or price targets on the companies it reports on. Readers are advised that the research reports are published and provided solely for informational purposes and should not be construed as an offer to sell or the solicitation of an offer to buy securities or the rendering of investment advice. The information p...</p>

KEY POINTS

HighPeak announced an agreement to acquire the Howard County assets of Hannathon Petroleum LLC and other non-operating working interest owners in the Signal Peak area on April 27, 2022. HighPeak owns&nbsp;non-operated working interests in ~60% of the acreage to be acquired. Consideration consists of $255 million in cash and ~3.78 million shares of HighPeak common stock.
The acquisition signals management’s enthusiasm for the Signal Peak area where the company has been delineating the Wolfcamp A, Lower Spraberry, and Wolfcamp D since late 2021.
Pro forma for the Hannathon acquisition and several smaller deals announced in February, HighPeak’s acreage position is &gt;91,000 net acres on which management estimates are &gt;2,000 future drilling locations. Hannathon alone adds ~200 gross (~150 net) locations to the inventory.
The Flat Top and Signal Peak acreage blocks are large contiguous land positions well suited to long-lateral horizontal development and efficient facilities utilization. Management estimates the present value of operational synergies achievable with the Hannathon acreage is ~$70 million.
Including a full-year contribution from the acquired assets, HighPeak’s FY22 pro forma production outlook is 32-37 MBOE, with an estimated exit rate of 47-53 MBOE/d.
HighPeak is scheduled to release 1Q22 financial results after the market close on Monday, May 16, 2022. The company will host a conference call and webcast at 10:00 am CDT on Tuesday, May 17, 2022. Participants may call (833) 362-0226 and use the passcode 8847326 to access the event.

COMPANY OVERVIEW
HighPeak Energy is a growth-oriented independent exploration and production company headquartered in Fort Worth, Texas. The company’s assets are concentrated in the northeastern portion of the Midland Basin in Texas, where it owns ~72,500 net acres, including recently announced acquisitions. Proved reserves at year-end 2021, totaled 64.2 MMBOE (45% developed / 81% oil). 4Q21 production averaged 14.9 MBOE/d. Management’s latest FY22 production guidance is 27.0-32.5 MBOE/d, with an estimated 2022 exit rate of 40-45 MBOE/d. The mid-points of the full year and exit rate production guidance for 2022 imply growth rates of 220% and 357%, respectively, from the FY21 average of 9.3 MBOE/d. Our prior HighPeak content can be found&nbsp;here.&nbsp;HighPeak’s corporate homepage is&nbsp;www.highpeakenergy.com.
HighPeak announced an agreement to acquire the Howard County assets of Hannathon Petroleum LLC and other non-operating working interest owners in the Signal Peak area on April 27, 2022. HighPeak owns non-operated working interests in ~60% of the acreage to be acquired. Consideration consists of $255 million in cash and ~3.78 million shares of HighPeak common stock.
DISCLOSURES

Water Tower Research (“WTR”) is a professional publisher of investment research reports on public companies and, to a lesser extent, private firms (“the Companies”). WTR provides investor-focused content and digital distribution strategies designed to help companies communicate with investors.  WTR is not a registered investment adviser or a broker/dealer nor does WTR provide investment banking services. WTR operates as an exempt investment adviser under the so called “publishers’ exemption” from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940. WTR does not provide investment ratings / recommendations or price targets on the companies it reports on. Readers are advised that the research reports are published and provided solely for informational purposes and should not be construed as an offer to sell or the solicitation of an offer to buy securities or the rendering of investment advice. The information p...

Bolt-On Acquisitions Build Howard County Scale

HighPeak Energy Inc

Bolt-On Acquisitions Build Howard County Scale