Highpeak Energy Inc (HPK) 2025 Q1 法說會逐字稿

Hello and welcome to High Peak Energy 2025 First Quarter Earnings Conference Call.

您好，歡迎參加 High Peak Energy 2025 年第一季財報電話會議。

(Operator Instructions)

（操作員指示）

I would like to turn the conference over to the CFO Steven Tholen. You may begin.

我想將會議交給財務長史蒂文·托倫 (Steven Tholen)。你可以開始了。

Good morning, everyone and welcome to High Peak Energy's First quarter 2025 Earnings Call.

大家早安，歡迎參加 High Peak Energy 2025 年第一季財報電話會議。

Representing High Peak today are President Michael Hollis, Vice President of Business Development, Ryan Hightower, and I'm Stephen Tholen, the Chief Financial Officer.

今天代表 High Peak 的是總裁 Michael Hollis、業務發展副總裁 Ryan Hightower 和財務長 Stephen Tholen。

During today's call, we may refer to our May investor presentation and our First quarter Earnings Release, which can be found on High Peaks website.

在今天的電話會議中，我們可能會參考我們五月的投資者介紹和第一季財報，這些都可以在 High Peaks 網站上找到。

Today's call participants may make certain forward-looking statements relating to the company's financial condition, results of operations, expectations, plans, goals, assumptions, and future performance.

現今的電話會議參與者可能會對公司的財務狀況、營運成果、預期、計劃、目標、假設和未來業績做出某些前瞻性陳述。

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

因此，請參閱有關前瞻性陳述的警示資訊。以及公司向美國證券交易委員會提交的文件中存在的相關風險，包括由於各種原因，實際結果可能與我們的預期有重大差異，其中許多原因是我們無法控制的。我們也會在今天的電話會議上參考某些非 GAAP 財務指標，因此請參閱我們 5 月份投資者簡報中的收益發布中的對帳表。

I will now turn the call over to our President, Michael Hollis.

現在我將把電話轉給我們的總裁麥可霍利斯。

Thank you, Steven. Good morning, ladies and gentlemen, and thank you for joining us today for High Peak Energy's first quarter call.

謝謝你，史蒂文。女士們、先生們，早安，感謝你們今天參加 High Peak Energy 第一季電話會議。

Our conference call will sound a little different today, as Jack is at home recuperating.

由於傑克正在家中休養，我們今天的電話會議聽起來會有些不同。

He's had a long, illustrious history of riding and cutting horse competitions. Which is his other passion outside of work.

他在騎馬和切馬比賽中有著悠久而輝煌的歷史。這是他工作以外的另一個嗜好。

For those who are not familiar with the sport, quarter horses are among the most athletic animals on the planet, and recently, one got the better of him during a practice session.

對於那些不熟悉這項運動的人來說，夸特馬是地球上最具運動能力的動物之一，最近，一匹夸特馬在練習賽中擊敗了他。

The good news is, he's going to be just fine. He's doing some physical therapy so that he can get back in the proverbial saddle as fast as possible.

好消息是，他會沒事的。他正在進行物理治療，以便能夠盡快恢復健康。

In the meantime, it's business as usual around here at High Peak, as well as we all remain fully dedicated to guiding our company through this current volatile market.

同時，High Peak 的業務照常進行，我們所有人都將全力以赴，帶領公司度過當前動盪的市場。

Also, we are changing from our historical precedent of referring to each slide as we go through this call, but our comments will stay generally consistent and follow our May Investor presentation.

此外，我們在進行此電話會議時，一改以往參考每張投影片的慣例，但我們的評論將保持總體一致，並遵循我們 5 月份的投資者簡報。

With that housekeeping out of the way, let's talk High Peak.

談完這些瑣事後，我們來談談 High Peak。

We're off to a strong start in 2025 as we delivered another very solid quarter.

我們又完成了一個非常穩健的季度，為 2025 年開了個好頭。

Our production averaged over 53,000 BOEs a day, beating guidance and consensus estimates. This is approximately a 6% increase versus Q4 while maintaining the same oil percentage per BOE.

我們的日產量平均超過 53,000 桶油當量，超出指導值和普遍預期。在保持每桶油當量石油百分比不變的情況下，與第四季度相比，這一數字增長了約 6%。

Our strong production rate allowed high peak to generate almost $200 million of EBITDA during the quarter, which was an increase of approximately 10% compared to the fourth quarter at nearly the same weighted average oil price. Our cash margins remained healthy, and we're aided by a roughly 3% drop in lease operating expenses quarter over quarter.

我們強勁的生產力使高峰在本季創造了近 2 億美元的 EBITDA，與第四季度相比，在幾乎相同的加權平均油價下增長了約 10%。我們的現金利潤率保持健康，租賃營運費用環比下降約 3%，這對我們有所幫助。

This is a great time to give a shout out to the High Peak Field organization. They are always finding new and innovative ways to reduce costs. This is an ongoing effort, and I expect it will continue into the future.

這是向 High Peak Field 組織大聲呼喊的好時機。他們總是在尋找新的創新方法來降低成本。這是一項持續的努力，我希望它將來能夠繼續下去。

Another exciting thing that we will discuss is that we are realizing much higher levels of operating efficiencies in our development program compared to our historical averages. Given the strong start to the year, we are narrowing our production guide and raising the bottom end and increasing the midpoint of beaten rays. Now for an operational update.

我們將要討論的另一件令人興奮的事情是，與歷史平均值相比，我們的開發計劃實現了更高的營運效率。鑑於今年開局強勁，我們正在縮小生產指南，提高底端並增加擊打射線的中點。現在進行操作更新。

As I previously mentioned, our operating team is continuing to realize more and more efficiencies, especially on the drilling side of the equation. Over the past two quarters, our spud-to-spud timing has dropped from an average of 14 days to about 11 days which is over 20% faster than our previous expectations.

正如我之前提到的，我們的營運團隊正在繼續實現越來越高的效率，特別是在鑽井方面。在過去兩個季度中，我們的鑽探到鑽探時間從平均 14 天縮短至約 11 天，比我們之前的預期快 20% 以上。

So, what does that mean for High Peak?

那麼，這對 High Peak 來說意味著什麼？

This faster pace translates to a single rig drilling over 30 wells per year compared to our average over the past 2 years of about '25.

與過去兩年的平均每年約 25 口井相比，這種更快的速度意味著單一鑽孔機每年可以鑽探超過 30 口井。

As you would expect, there are some associated reductions to our daily variable drilling cost, which translates to lower costs per foot. These drilling efficiencies are sticky, and we expect them to continue on a go forward basis.

正如您所期望的，我們的每日可變鑽井成本有一些相關的減少，這意味著每英尺的成本降低。這些鑽井效率具有黏性，我們預計它們將繼續向前發展。

So, let's talk about what we accomplished in our first quarter and walk you through our CapEx spend.

那麼，讓我們來談談我們在第一季的成就，並向您介紹我們的資本支出。

I'm proud to report that our first quarter, DNC costs were in line with our 2025 expectations, and further cost concessions are on the way. High Peak's drilling team has significantly outperformed expectations. Increased drilling efficiencies have allowed high peak to drill more wells than originally scheduled during the quarter. We actually spud 20 wells during the quarter while rig releasing 16 compared to our initial plan of 12. In addition, we outlined on our March conference call, our 2025 infrastructure CapEx was heavily first half weighted with the majority coming in the first quarter.

我很自豪地報告，我們第一季的 DNC 成本符合我們 2025 年的預期，並且正在進一步降低成本。High Peak 鑽井團隊的表現大大超出了預期。鑽井效率的提高使得高峰在本季度能夠鑽探比原計劃更多的井。本季我們實際上開鑽了 20 口井，同時釋放了 16 口鑽機，而我們最初的計劃是 12 口。此外，我們在 3 月的電話會議上概述，我們 2025 年的基礎設施資本支出主要集中在上半年，其中大部分將發生在第一季。

I'm also proud to report that the implementation of these projects went smoothly and within budget. This investment will continue to support our peer leading margins and will also provide us with operational flexibility and optionality.

我還自豪地報告，這些專案的實施進展順利，並且在預算之內。這項投資將繼續支持我們同業領先的利潤率，並為我們提供營運靈活性和可選性。

As one would expect with our increased drilling efficiencies, we were starting to build additional drilled but uncompleted inventory as our two rig program was outpacing our one track crew.

正如人們所預料的那樣，隨著鑽井效率的提高，我們開始建立額外的已鑽但未完成的庫存，因為我們的雙鑽機計劃已經超過了我們的單軌道鑽機計劃。

This is evidenced by the increase in our work in progress well count of 28 at the end of the first quarter. We typically manage the duck count to only have true operational ducks. High Peak does not like to let invested capital sit unproductive. We made the decision to accelerate the completion of a 4-well pad in the first quarter, when oil was over $70 a barrel.

第一季末我們在建油井數量增加到 28 口，證明了這一點。我們通常管理鴨子的數量，只保留真正可以操作的鴨子。High Peak 不喜歡讓投入的資本閒置。當油價超過每桶 70 美元時，我們決定在第一季加速完成 4 口井的開發。

One side note for those of you studying our first quarter turned in line numbers. These additional 4 wells were not online at the end of the quarter. So, they will actually show up in our Q2 till numbers, but the completion dollars were spent in Q1.

對於那些研究我們第一季上交行號的人來說，有一點需要注意。本季末，這另外 4 口油井尚未投產。因此，它們實際上會出現在我們的第二季收銀數字中，但完成金額是在第一季花掉的。

As we detailed in our 2025 capital budget guide, we planned on a heavy first quarter spin rate. In March, we estimated we would deploy roughly 35% of our yearly CapEx budget in Q1.

正如我們在 2025 年資本預算指南中詳細說明的那樣，我們計劃在第一季大幅提高營業利潤率。3 月份，我們預計第一季我們將部署約 35% 的年度資本支出預算。

We were able to do more work with the same equipment. We accomplished everything that we laid out to do, plus, we drilled and completed the 4 additional wells. This equated to 38% of our full year budget.

我們能夠用同樣的設備完成更多的工作。我們完成了所有計畫的任務，此外，我們還鑽完另外 4 口井。這相當於我們全年預算的38%。

By accomplishing all of this in Q1, we have set high peak up for a great 2025. While still generating positive free cash flow during the quarter. In fact, if you remove the CapEx associated with the additional 4 well pad, we actually would have come in under our expected spend for the quarter. It's great that the high peak development machine is running more efficient than ever, but what does that mean looking forward?

透過在第一季完成所有這些目標，我們為偉大的 2025 年設定了高峰。同時本季仍產生正的自由現金流。事實上，如果去掉與另外 4 個井場相關的資本支出，我們本季的支出實際上會低於預期。高峰開發機器比以往更有效率地運轉，這很好，但展望未來這意味著什麼呢？

Effective immediately, we are dropping one of our 2 rigs for a period of 4 months, May through August. While also modifying our completion schedule with occasional pauses to track our level of operational ducts. If we were to continue our two-rig program at the current cadence, we would expect to drill approximately 65 wells this year. Which is 30% more than our budgeted drilling activity. Given the current macro environment. Now is not the time to lean in and drill more wells than our initial plan.

即日起，我們將停用兩台鑽孔機中的一台，為期四個月，從五月到八月。同時，我們也會修改完成計劃，偶爾暫停以追蹤我們的營運管道水平。如果我們按照目前的步調繼續我們的雙鑽機計劃，我們預計今年將鑽探約 65 口井。這比我們預算的鑽探活動多出30％。鑑於當前的宏觀環境。現在還不是傾盡全力鑽探比原先計畫更多的井的時候。

Excuse me. We are going to take our foot off the gas, and like we've always said, we will be fast on the brake and slow on the accelerator. The overall effect of this updated development plan will allow us to stay within our original guided 2025 activity levels. Due to our increased operational efficiencies, we will still expect to complete the same number of wells as we originally guided to back in March.

打擾一下。我們將鬆開油門，就像我們一直說的那樣，我們將快速踩剎車，緩慢踩油門。更新後的發展計畫的整體效果將使我們保持在最初指導的2025年活動水準之內。由於我們營運效率的提高，我們仍有望完成與 3 月最初預測的相同數量的油井。

We also feel confident that this revised plan, we will stay within our capital budget guide for the year. Additionally, I do want to stress that if the current market environment worsens or commodity prices further weaken, we always have the ability to modify our development program.

我們也相信，透過這項修訂計劃，我們將遵守今年的資本預算指南。此外，我想強調的是，如果當前的市場環境惡化或大宗商品價格進一步走弱，我們總是有能力修改我們的發展計畫。

High Peak has total flexibility from a land and operations perspective to reduce the budget and leave a rig down for longer or make any other appropriate changes to slow our capital spending, depending on market conditions.

從土地和營運角度來看，High Peak 擁有完全的靈活性，可以根據市場情況減少預算、延長鑽機停機時間或進行任何其他適當的改變以減緩我們的資本支出。

So, speaking of the current market environment, I'll talk a little bit about its effect on our current drilling and completion costs. Tariffs, who knew that one tweet could move global markets and affect the business world to the extent it has over the past month.

因此，談到當前的市場環境，我將稍微談談它對我們目前鑽井和完井成本的影響。關稅，誰知道一則推文就能撼動全球市場，並對商業世界產生過去一個月的影響。

For High Peak, the biggest effect tariffs have on our immediate cost is on OCTG products, i.e. casing and tubular goods, the steel products that we use in drilling and completing our wells.

對 High Peak 而言，關稅對我們直接成本的最大影響在於油井管產品，即套管和管材，以及我們在鑽井和完井中使用的鋼材產品。

Our cost of tubular goods for the remainder of the year is up roughly 3%. OTCG goods make up approximately 8% of our typical AFE.

今年剩餘時間我們的管材成本上漲了約 3%。OTCG 商品約占我們典型 AFE 的 8%。

So, the effect of a 25% tariff on all of our tubular goods could increase our overall AFE by roughly 2% if it applied to all of our tubular goods. High Peak thankfully utilizes US made steel products for the vast majority of our OTCG needs.

因此，如果對我們所有的管材徵收 25% 的關稅，則可能導致我們的整體 AFE 增加約 2%。值得慶幸的是，High Peak 採用美國製造的鋼鐵產品來滿足我們絕大多數的 OTCG 需求。

Hence, they are not subject to import tariffs, and the effect on our cost is less than what many of our peers are facing. The good news, we are seeing savings across the board on all AFP items except the OTCG products.

因此，它們不受進口關稅的影響，對我們的成本的影響比許多同業所面臨的要小。好消息是，我們發現除 OTCG 產品外，所有 AFP 產品都有折扣。

Presently, we're seeing low single digit overall declines in well cost inclusive of those increased OTCG prices.

目前，我們看到包括OTCG價格上漲在內的油井成本整體呈現個位數下降趨勢。

Lastly, the prescribed completion pauses and the softness in the OFS market will make it possible for High Peak to implement some further efficiency changes to our 2025 plan.

最後，規定的完工暫停和 OFS 市場的疲軟將使 High Peak 能夠對我們的 2025 年計劃實施一些進一步的效率變革。

High peak will begin simulfrack operations on some of our multi-well pads, further reducing our already peer-leading per foot development cost.

High peak 將開始在我們的一些多井平台上進行同步壓裂作業，進一步降低我們本已處於同行領先的每英尺開發成本。

The operations team have done a fantastic job over the last couple of years, incrementally getting more efficient. We have been picking up pennies and nickels everywhere we can. It's been quite some time since we had dollar bills worth of efficiencies to pick up. But simul fracking represents a dollar bill size set change in our cost structure and for those of you updating your models, please note that we have not factored in any of these savings into our 2025 capital budget.

過去幾年，營運團隊做得非常出色，效率也逐漸提升。我們一直在盡可能地收集硬幣和鎳幣。我們已經很久沒有花很多錢去提高效率了。但是同步水力壓裂意味著我們的成本結構會發生美元規模的變化，對於那些正在更新模型的人來說，請注意，我們沒有將這些節省的任何部分計入我們的 2025 年資本預算中。

This market continues to remain very volatile, and we like to operate with a conservative mindset.

這個市場仍然非常不穩定，我們喜歡以保守的心態來操作。

At this point I would like to turn the call over to Ryan Hightower.

現在我想把電話轉給 Ryan Hightower。

Yeah, thanks, Mike, and good morning, everyone. As a quick recap, as many of we built High Peak the old fashioned way, primarily through grassroots leasing and production growth through the drill bit, which is not the norm in today's public EMP world. And as you may recall in our March investor presentation, we included a slide detailing our year-end 2024 reserves which showed High Peak having a 345% reserve replacement ratio last year.

是的，謝謝，麥克，大家早安。簡單回顧一下，我們中的許多人都是以老式的方式建造 High Peak，主要是透過基層租賃和透過鑽頭實現產量成長，這在當今的公共 EMP 世界中並不常見。您可能還記得，在我們 3 月份的投資者演示中，我們提供了一張幻燈片，詳細介紹了我們 2024 年年底的儲量，其中顯示 High Peak 去年的儲量替代率為 345%。

And now that all of our public peers have filed their 10ks in year-end reserve reports, we wanted to go back and study how high peak measured up compared to the peer group. So, we looked at all of our peers reserve replacement ratios over the last 3 years. It's a small chart, but on slide 9 of our Investor presentation, you can see that High Peak has realized a 400% reserve replacement ratio over the past 3 years. Which is almost exclusively driven through organic growth. You can also see how our reserve replacement, both from an overall and an organic perspective compares favourably to the peer group.

現在，我們所有的公眾同行都已在年終儲備報告中提交了 10k，我們想回過頭來研究一下與同行相比高峰的表現如何。因此，我們查看了過去 3 年所有同業的儲量替代率。這是一張小圖表，但在我們的投資者簡報的第 9 張投影片上，您可以看到 High Peak 在過去 3 年中實現了 400% 的儲量替代率。這幾乎完全是由有機成長所推動的。您還可以看到，從整體和有機角度來看，我們的儲備替代品與同行相比均具有優勢。

We also wanted to look at where the industry and High Peaks stand from a profitability standpoint at todays near $60 oil price.

我們還想從盈利角度看看在目前接近 60 美元的油價下，該行業和 High Peaks 的處境。

The other slide or the other chart on slide 9 shows everyone's 3 year all in finding and development costs plus their operating costs while adjusting each respective company's realized oil price to $60 a barrel.

另一張投影片或第 9 張投影片上的另一個圖表顯示了每個人 3 年的全部勘探和開發成本加上他們的營運成本，同時將各自公司的實際油價調整為每桶 60 美元。

The results of this comparison show that as a whole, the peer group is marginally profitable at today's prices. However, it also highlights High Peak's outsized level of profitability due to our superior cost structure and higher profit margins per BOE. And while it's great that we can develop profitable reserves at this price point, as Mike said, we don't think it's the appropriate time to really lean in and increase activity in this current market.

比較結果顯示，整體而言，以今天的價格計算，同業的利潤率是微薄的。然而，這也凸顯了 High Peak 憑藉其優越的成本結構和更高的每桶油當量利潤率而實現的超額盈利水平。正如麥克所說，雖然我們能夠以這樣的價格開發出獲利的儲備，但我們認為現在還不是真正投入並增加當前市場活動的適當時機。

Two other things to note. First, we believe that using all in F&D costs is appropriate because whether you're an equity investor or a debt investor, not only are you investing in a particular asset, but you're also investing in management's ability to allocate capital resources, whether the capital is invested through drilling activity or through acquisitions or a combination of the two.

另外還有兩件事要注意。首先，我們認為將所有資金用於財務與開發成本是合適的，因為無論您是股權投資者還是債務投資者，您不僅投資於特定資產，而且還投資於管理層分配資本資源的能力，無論資本是透過鑽井活動還是透過收購或兩者結合進行投資。

And as shown on the chart, High Peak has successfully allocated capital over the past 3 years.

如圖所示，High Peak 在過去 3 年中成功配置了資本。

Second, we get a lot of inbounds from investors who acknowledge that we do have really great single well economics, but that over the past few years we've had to invest quite a bit of capital in our infrastructure system in order to realize those great single well economics.

其次，我們得到了許多投資者的支持，他們承認我們的單井經濟效益確實非常好，但在過去幾年裡，我們不得不在基礎設施系統上投入相當多的資金，才能實現這些偉大的單井經濟效益。

This chart includes our total CapEx, which is inclusive of our infrastructure investment and as you can see from an all-in CapEx perspective, high peak stacks up very favourably to the peer group and moving forward, it's also important to remember that our infrastructure budget will drop significantly.

這張圖表包括我們的總資本支出，其中包括我們的基礎設施投資，正如您從全資本支出角度所看到的，高峰與同行相比非常有利，並且展望未來，同樣重要的是要記住我們的基礎設施預算將大幅下降。

The investment we've made over the last few years will drive High Peaks capital efficiency for the life of our field.

我們過去幾年所做的投資將推動 High Peaks 油田整個生命週期的資本效率。

Here at High Peak, we've always been ahead of the curve from a technical perspective, which is what afforded us the opportunity to get in front of the broader industry and put our position together organically.

在 High Peak，我們在技術方面始終處於領先地位，這使我們有機會走在更廣泛的行業前面，並有機地整合我們的地位。

This was driven by management's extensive in-basin experience, local geologic knowledge, and the amount of technical work we've conducted on our area.

這是由管理層豐富的盆地經驗、當地地質知識以及我們在該地區進行的大量技術工作所推動的。

We've always been on the forefront, having to educate and prove to the rest of the industry that our rock is good.

我們始終走在最前沿，必須向業內其他人宣傳並證明我們的搖滾樂是好的。

So now, after drilling over 350 wells, targeting 6 different benches, and producing 80 million BOEs, it's nice to see the industry and various third-party research groups beginning to recognize the value of our position and the extent of which we have expanded the boundary of the play in our operating areas.

因此，現在，在鑽探了 350 多口井、瞄準了 6 個不同的層位並生產了 8000 萬桶油當量之後，我們很高興地看到業界和各種第三方研究小組開始認識到我們的地位和我們在多大程度上擴大了我們的作業區域的邊界。

I'll now turn the call back over to Mich to wrap things up.

我現在將把電話轉回給 Mich 來結束這一切。

Thanks, Ryan. In closing, we typically would pass to Jack, so I'll paraphrase some of his comments as they pertain to High Peaks core pillars, improving corporate efficiency.

謝謝，瑞安。最後，我們通常會把話題交給傑克，所以我會轉述他的一些評論，因為它們與 High Peaks 的核心支柱、提高企業效率有關。

Our operations are running smoother and more efficiently than ever, while continuing to keep our costs in line with our expectations. Additionally, we see further savings on the horizon, which we would expect to lead to increased overall levels of corporate efficiency.

我們的營運比以往更加順暢和高效，同時繼續保持成本符合我們的預期。此外，我們預計未來還將進一步節省開支，這將提高企業整體效率水準。

Maintaining capital discipline. Due to the current state of global economic uncertainty and its impact on oil prices, we have taken the proactive step to modify our development plan. Again, due to our significant realized efficiency gains, we still expect to complete the same level of development activity this year.

維護資本紀律。由於當前全球經濟的不確定性及其對油價的影響，我們已採取主動措施修改發展計畫。再次，由於我們實現了顯著的效率提升，我們仍然預計今年將完成相同水準的開發活動。

We will remain and continue to monitor market conditions, and we will remain flexible to further adjust our program as conditions warrant, optimizing our capital structure.

我們將繼續監測市場狀況，並根據情況靈活地進一步調整我們的計劃，優化我們的資本結構。

One of our main objectives this year is optimizing our capital structure, and we remain committed to executing our plan once the capital markets stabilize. In the meantime, we are currently in a healthy financial position with no near-term debt maturities, and we are taking proactive steps to keep our balance sheet strong, creating shareholder value.

我們今年的主要目標之一是優化資本結構，一旦資本市場穩定，我們將繼續致力於執行我們的計劃。同時，我們目前的財務狀況良好，沒有短期債務到期，我們正在採取積極措施維持強勁的資產負債表，為股東創造價值。

This is the time to stay nimble and prudent, which our high-quality asset base allows us to do. As large owners of the company, management is fully aligned with our shareholders and has a long-term outlook on value creation.

現在是保持靈活和謹慎的時候，我們的優質資產基礎使我們能夠做到這一點。身為公司的大股東，管理階層與股東完全一致，並對價值創造有著長遠的眼光。

It's important to remember that while markets may be temporarily volatile, the fundamental value of our asset base is still strong.

重要的是要記住，雖然市場可能暫時波動，但我們資產基礎的基本價值仍然強勁。

We are fortunate to have a long runway of high value drilling locations at a time when core inventory is becoming increasingly scarce, and we have the ultimate flexibility to develop our inventory when market conditions provide for realizing maximum value.

在核心庫存日益稀缺的當下，我們很幸運擁有大量高價值鑽井地點，並且當市場條件允許實現最大價值時，我們擁有最大的靈活性來開發我們的庫存。

Thank you and with our comments now complete, I'll open up the call to questions from our analysts.

謝謝大家，我們的評論已經完畢，我將開始回答我們分析師的問題。

Thank you.

謝謝。

(Operator Instructions)

（操作員指示）

Our first question comes from a line of [Nour hongness] with Bank of America. Your line is open.

我們的第一個問題來自美國銀行的[Nour hongness]。您的線路已開通。

Morning guys. For my first question here, I was hoping you could talk about what kind of impact you are seeing, or you think you'll see on the use of simul frac, and how and what the perfo DNC cost kind of impact is once that once that gets implemented.

大家早安。對於我的第一個問題，我希望您能談談您看到了什麼樣的影響，或者您認為您會看到同步壓裂的使用會產生什麼樣的影響，以及一旦實施，對性能 DNC 成本的影響是怎樣的。

Great question. No, again, like I said in the prepared remarks, it's been a while since we've been able to pick up what I call dollar bill size efficiencies in our program because again, as you get pretty mature in a face and. You try to implement all of the tools that you have at your disposal. So, again, when we were running 2 rigs and one frac through at the pace we were drilling in the last couple years with 2 rigs, it fit with just what we call zipper fracking, which would be fracking single wells at a time. With the frac fruit, it was a very balanced equilibrium kind of program. So, fast forward to where we are today, obviously slowing down the program, taking some pauses in our frac schedule allows us to be able to pause a little longer and then be able to frac.

好問題。不，再說一次，就像我在準備好的發言中所說的那樣，我們已經有一段時間沒有能夠在我們的計劃中獲得我所說的美元鈔票規模的效率了，因為再說一次，當你面對時你變得相當成熟。您嘗試使用您掌握的所有工具。因此，當我們以過去幾年使用 2 台鑽機進行鑽探的速度運行 2 台鑽機和 1 個壓裂井時，它正好符合我們所說的拉鍊式壓裂，即一次對單個井進行壓裂。有了壓裂果實，這是一個非常平衡的平衡程序。因此，快進到我們今天所處的位置，顯然放慢了程序的速度，在我們的壓裂計劃中暫停一些時間，使我們能夠暫停一段時間，然後能夠進行壓裂。

Utilizing the simul frac technique that's just basically we're going to frac 2 wells at a time, zippering between 4 wells, 2 at a time. So, what that does is that reduces the amount of days and time and cost that you have for completing those same 4 wells. I'll put it in perspective for you.

利用同步壓裂技術，基本上我們每次壓裂 2 口井，在 4 口井之間切換，每次 2 口井。因此，這樣做可以減少完成這 4 口井所需的天數、時間和成本。我會為你解釋清楚。

Fracking 4 wells assume they're 15,000 ft laterals in our area, typically takes 25 to 28 days to complete fracking those 4 wells.

假設我們地區的 4 口井為 15,000 英尺水平井，則通常需要 25 到 28 天才能完成這 4 口井的壓裂。

Doing it with the simul frac process, we'll cut that in half, call it somewhere in the 11 to 14 days to frac them.

採用同步壓裂工藝，我們將其縮短一半，大約需要 11 到 14 天的時間進行壓裂。

So again, all of your variable costs change everything goes into that. So, for a 15,000 ft lateral you will typically see about a $250 million of savings per well. So, on that pad we would assume about a million dollars of savings for the entire DCF process. So again, if you took a million dollars over that would be $60,000 lateral fee that'll give you an idea of a dollar per foot savings that the simul frac process will help. Now there's some ancillary benefits to doing simul frac that, it's been a while since companies have actually made that change, right? Everybody does it now because they have bigger programs, more rigs to where you can feed a simul frac crew, but If you go back 4 or 5 years ago, what most operators experienced was whenever you did that one, you always have a certain amount of your production that's impacted by the fracs of nearby new wells, right? We call that watered out. So, instead of watering out offset production for 28 days, as we go forward, we'll only be watering those out for half that time.

所以，再說一遍，所有變動成本都會改變。因此，對於 15,000 英尺的水平井，通常每口井可節省約 2.5 億美元。因此，我們假設整個 DCF 流程可節省約一百萬美元。因此，如果您超額花費一百萬美元，那麼橫向費用將是 60,000 美元，這將讓您了解模擬壓裂過程將幫助每英尺節省一美元。現在進行同步壓裂有一些附帶好處，公司已經有一段時間沒有真正做出這種改變了，對吧？現在每個人都這樣做，因為他們有更大的項目，更多的鑽機，可以為同步壓裂團隊提供動力，但如果你回到四五年前，大多數操作員所經歷的是，每當你這樣做時，你的產量總是會受到附近新井壓裂的影響，對嗎？我們稱之為水淹。因此，我們今後將不再對 28 天的補償生產進行澆水，而是只對其中一半的時間進行澆水。

Also, again, we get to bring that production on. So, throughout this year, those wells will be on production longer than they would have been with our original plan.

此外，我們再次開始進行該項生產。因此，今年這些油井的生產時間將比我們原計劃的更長。

You also get the benefit of bringing forward a couple of these pads in time because you, it only took 14 days to frac them and then we do the rest of our work to drill them out, put the pump in, and turn them on. So, we will pull forward a little bit of production from a timing standpoint into 2025. So again, when you look at the benefits of doing this, not only are we drilling a little faster, right? That's, we're now 25% plus faster than we were a year ago, there's variable cost savings on the drilling front.

您還可以享受提前交付這些墊塊的好處，因為您只需 14 天就可以對它們進行壓裂，然後我們完成剩餘的工作，將它們鑽出，放入泵並啟動它們。因此，從時間角度來看，我們將把生產提前一點到 2025 年。所以，再說一次，當你看到這樣做的好處時，你會發現我們不僅鑽探速度更快了，對吧？也就是說，我們現在比一年前快了 25% 以上，鑽井方面節省了變動成本。

And then on the completion side, obviously cheaper $1 per foot to complete the wells exactly the same way you were going to complete them.

然後在完井方面，顯然以與原計劃完全相同的方式完井可以便宜每英尺 1 美元。

Getting them online faster and watering out less. So, it's kind of, it's a win, in the whole process.

讓它們更快地上線並減少流失。所以，從整個過程來看，這可以說是一種勝利。

That's helpful color. And then for my second question, I was hoping you guys could give us maybe a little update on where leading-edge wall results is in Borden County and kind of how you see productivity for those wells comparing to kind of the legacy stuff for the stuff that you are drilling and completing in Northern Howard County.

這是很有幫助的顏色。然後對於我的第二個問題，我希望你們可以給我們一些關於博登縣前沿牆體成果的最新情況，以及你們如何看待這些井的生產力，與北霍華德縣正在鑽探和完井的傳統井相比。

You bet. Now, great question. No. Obviously, we're very excited about the well performance that we're seeing up in Borden County. Today we've got 8 wells that have been producing for quite some time. We've got a 4 well pad up in Borden, on our Northern portion of our block that's been in flow back now for a week or two that looked just like the original 8 wells, and I guess that's a good point. If you go back to fourth quarter presentation that we put out, we have some detail on What our most recent wells look like in kind of a 180-day flowback period, again roughly 20% better than what we had the year prior, again, those 8 wells were in that mix and part of that, production performance. The new 4 wells that we are flowing back today look just like and that's in 3 different zones. That's [Wolf].

當然。現在，好問題。不。顯然，我們對博登縣的良好表現感到非常興奮。如今，我們有 8 口油井，並且已經生產了相當長一段時間。我們在博登區塊北部有 4 口井，目前已經回流一兩週了，看起來就像原來的 8 口井一樣，我想這是一個很好的觀點。如果您回顧我們發布的第四季度報告，我們會詳細介紹我們最近的油井在 180 天回流期內的情況，同樣比前一年好 20% 左右，同樣，這 8 口油井屬於這一組合，其中一部分是生產性能。我們今天重新投入使用的 4 口新井看起來就像位於 3 個不同區域。那是[狼]。

Lower Sprayberry and middle spray berry, and all three of those zones are performing just as we had expected and are part of that 20% improvement in kind of oil production in the 1st 180 days. And also, we have a four-wheel pad that's right offset some of this production. That will be our very first simul frac pad. So, in the next couple weeks, we will be implementing, that first simul frac.

下噴霧莓區和中噴霧莓區，這三個區域的表現都符合我們的預期，是前 180 天內石油產量提高 20% 的一部分。此外，我們還有一個四輪墊，可以抵消部分產量。這將是我們的第一個類比壓裂平台。因此，在接下來的幾週內，我們將實施第一次模擬壓裂。

Good stuff guys.

好東西，夥計們。

Thank you. You bet.

謝謝。當然。

Thank you, Noah.

謝謝你，諾亞。

Please stand by for our next question.

請等待我們的下一個問題。

Our next question comes from the line of Jeff Robertson with Water Tower Research. Your line is open.

我們的下一個問題來自 Water Tower Research 的 Jeff Robertson。您的線路已開通。

Thank you. Mike, you mentioned the middle Sprayberry area in Borden County and I remember in the fourth quarter conference call, you talked about the ability to increase your number of economic development or development locations with the Middle Sprayberry. Can you give an update on where you stand with that?

謝謝。麥克，您提到了博登縣中部斯普雷貝里地區，我記得在第四季度電話會議上，您談到了透過中部斯普雷貝里地區增加經濟發展或開發地點數量的能力。能否介紹一下您的最新狀況？

Absolutely, Jeff, the middle Sprayberry is a is a very exciting development for IT.

當然，傑夫，中間的 Sprayberry 對於 IT 來說是一個非常令人興奮的發展。

Obviously today we only have two middle spray berries that are producing, both of those wells are well below $50 break even prices. They kind of low or low 40s for a break even. Now again, they're right in the middle of our northern block that we call flattop.

顯然，今天我們只有兩口中間噴霧漿果在產出，這兩口井的損益平衡價格都遠低於 50 美元。他們以 40 多美元或更低的價格實現收支平衡。現在，它們又位於我們稱為平頂的北部街區的正中央。

Off to the west right on the west flank of flattop, surge operating or Moss Creek has drilled 5 additional middle Sprayberry, so it's a little early in the game to be able to say all of the wells that we have in our inventory. There's about 200 middle spray berry wells up that we have an inventory up in our flattop area. So, I would think over the next several quarters as we drill and improve up the same kind of performance across our entire flat top acreage that we would be able to feel comfortable for the street that we would be able to let them know, hey, these wells are now some $50 dollar break even and again about 200 of them would move over into that category. So, today we sit at about 1,000 wells that are below $50 break even. And obviously we're drilling about 50 a year, so I would think over the next call a year or so we would be able to move 200 additional wells into that category of sub $50 dollar break even. So, again, as we're developing at the pace we are over the next couple years, it would be reasonable to expect that our sub $50 dollar break even inventory count will actually go up.

在平頂西側的正西方向，湧流作業或 Moss Creek 已鑽探了另外 5 個中部 Sprayberry 井，因此現在說出我們庫存中的所有井還為時過早。我們的平頂區域庫存有大約 200 個中間噴霧漿果井。因此，我認為在接下來的幾個季度裡，隨著我們在整個平頂油田進行鑽探並提高同樣的性能，我們將能夠讓投資者感到放心，我們將能夠讓他們知道，嘿，這些油井現在的盈虧平衡點約為 50 美元，其中約有 200 口油井將進入這一類別。因此，目前我們有大約 1,000 口油井的損益平衡點低於 50 美元。顯然，我們每年鑽探大約 50 口井，因此我認為在接下來的一年左右的時間裡，我們將能夠將另外 200 口井轉移到低於 50 美元盈虧平衡的類別。因此，再次強調，隨著我們在未來幾年的發展速度，我們有理由預期，低於 50 美元的盈虧平衡庫存數量實際上會增加。

If you look at the changes you're making to the 2025 development plan with the rig dropping the rigs in the summertime and creating some space in your completion calendar to be able to use simul racks and the benefits play out the way you think they will.

如果您看一下 2025 年開發計劃所做的更改，您會發現鑽機在夏季會減少，並且在完成日曆中留出一些空間以便能夠使用模擬機架，並且其好處會按照您認為的方式發揮出來。

How will that have an impact on your go forward development plan in 2026 in terms of being able to keep those efficiencies that you're gaining this year?

就保持今年所獲得的效率而言，這將對您 2026 年的發展計畫產生什麼影響？

Jeff, that's a great question. Obviously, we've got to work very closely with our vendor partners. So, today's market makes it obviously very easy to kind of perturb the system. If everybody was very busy and all of the frac crews had work to put pauses in place, you would have to work with that vendor much more closely. So, again, if you look into 2026, if the market. It improved now we would have a track record of doing this with that specific track crew and we would probably have to work with some of our other EMD, partners out in the base and to be able to work a schedule out to where that. That frac company doesn't have their equipment sitting and not generating revenue for too long of a period but again that's only going to be predicated on everyone getting busier and again you would have hopefully some oil price support there so we're very encouraged and we're working with our partners very closely that we will be able to keep this efficiency built into the system and have it sticky going forward.

傑夫，這個問題問得非常好。顯然，我們必須與我們的供應商合作夥伴密切合作。因此，當今的市場顯然很容易擾亂系統。如果每個人都很忙，並且所有的壓裂人員都需要暫停工作，那麼您就必須與該供應商進行更緊密的合作。所以，再說一次，如果你展望 2026 年，如果市場。現在情況有所改善，我們與特定的軌道工作人員一起做了這件事，我們可能必須與基地裡的其他一些 EMD 和合作夥伴合作，並能夠制定時間表。這家壓裂公司不會讓其設備閒置太長時間而不產生收入，但這只能取決於每個人都會變得更加忙碌，並且希望在那裡獲得一些油價支撐，因此我們感到非常鼓舞，我們正在與我們的合作夥伴密切合作，我們將能夠將這種效率保留在系統中，並使其在未來保持粘性。

And you raised the floor of production guidance to 48,000 VE a day. Is that mainly due to first quarter performance without factoring in any potential benefits for maybe decreased downtime as you move towards simul practicing in the second half of the year?

並且您將生產指導的最低限度提高到了每天 48,000 VE。這是否主要是由於第一季的表現而沒有考慮到下半年轉向同步練習時可能減少停機時間所帶來的任何潛在好處？

You bet.

當然。

Jeff. So, again, there's been a whole lot of volatility and changes in the market over the last, call it a month and a half, right? So, when we look at changing guidance, we try to be extremely conservative. Again, it's always a good thing to be able to beat and raise. So, with the really strong first quarter production that we had all of the efficiencies that we talked about, so again we plan to do the same work in 2025 that we originally laid out to do. We just did a little bit of that work sooner in Q1 and what that means is you have some wells that will be producing longer in 2025 than they would have. Read through to that would be slightly higher yearly production.

傑夫。那麼，在過去的一個半月裡，市場出現了大量的波動和變化，對嗎？因此，當我們考慮改變指導方針時，我們會盡量保持極度保守的態度。再說一遍，能夠擊敗對手並提高籌碼總是一件好事。因此，由於第一季的產量非常強勁，我們實現了我們談到的所有效率，因此我們再次計劃在 2025 年完成我們最初計劃的相同工作。我們只是在第一季早些時候做了一點這方面的工作，這意味著到 2025 年，有些油井的生產時間會比現在更長。仔細閱讀就會發現年產量會略高一些。

It would be reasonable to assume come Q2 that we're looking forward to the opportunity of continuing to have very strong production and that we would be able to reach out and say we're now tightening up again the CapEx spin and range and we're also increasing our production levels. Again, a good way that we look at this is 50,000 BOEs a day flat. Again, we're doing. Large pad development, so there will be some lumpiness in that number, 53, the next quarter could be 50, could be 49, and then you may have another 53 in there, but I think that average is going to be well above the midpoint of our guided range.

可以合理地假設，到了第二季度，我們期待有機會繼續保持強勁的生產勢頭，並且能夠接觸到並說我們現在正在再次收緊資本支出的旋轉和範圍，我們也在提高我們的生產水平。再次強調，我們看待這個問題的一個好方法是每天 50,000 桶油當量。再說一遍，我們正在做。大型墊片開發，因此該數字會有一些不均勻，53，下一季可能是50，可能是49，然後可能會有另外53，但我認為平均值將遠高於我們指導範圍的中點。

And on the balance sheet, you, I think you mentioned on the last call that with the infrastructure investment in 2025.

在資產負債表方面，我想您在上次電話會議上提到了 2025 年的基礎設施投資。

That could clear the way for less maintenance capital requirements in 2026, which would potentially result in more free cash flow. Is it how much of the balance sheet recapitalization goal is to position it so that you can, you have the flexibility to reduce leverage from time to time with free cash flow at par as opposed to dealing with the amortization on the current term loan.

這可能為 2026 年減少維護資本需求鋪平道路，從而可能帶來更多的自由現金流。資產負債表資本重組目標的定位是多少，以便您可以靈活地利用面值的自由現金流不時降低槓桿率，而不是處理當前定期貸款的攤銷。

Jeff, again, a lot to unpack there, but this is all great stuff, corporate efficiency is what the goal is here, right? We've over the last 4 years, Ryan kind of walked everybody through the prepared remarks. We've spent a lot of necessary capital over the last few years building out the infrastructure such that the High Peak machine again with inventory for decades. That break even sub $50. We wanted life fulfilled infrastructure in place such that we could increase decrease as we needed and as market conditions dictated throughout the life of this field. So you bring up a great point. If you look at CapEx spent at each one of the years or quarters in High Peak's history, a very large portion of that CapEx every quarter has been infrastructure.

傑夫，再次強調，有很多事情需要解決，但這些都是很棒的東西，企業效率就是我們的目標，對嗎？在過去的四年裡，瑞安已經帶領大家完成了準備好的演講。過去幾年，我們投入了大量必要的資金來建造基礎設施，以便 High Peak 機器能夠再次保持數十年的庫存。損益平衡點低於 50 美元。我們希望建立滿足生活需求的基礎設施，以便我們可以根據需求和市場條件在該領域的整個生命週期內增加或減少產量。所以你提出了一個很好的觀點。如果你看一下 High Peak 歷史上每年或每季的資本支出，你會發現每季的資本支出中很大一部分都用於基礎建設。

Today, the infrastructure is in place.

如今，基礎設施已經到位。

We, as we go into and you're going to see that, for the rest of this year again with our CapEx spin that we had in Q1 of $179 million when you look at the midpoint of our CapEx range and you subtract the $180 million from it or $179 million and you divide by 3, you're going to have a pretty good idea of what we're going to be spending per quarter. So, I don't think you have to wait until 2026 to see that corporate efficiency step change, again, it's going to be somewhere in the $100 million to $110 million we would spend in each one of these quarters still producing 50,000 BOEs a day again in any model that you're running.

隨著我們進入這個階段，您會看到，對於今年剩餘的時間，我們在第一季度的資本支出為 1.79 億美元，當您查看我們的資本支出範圍的中點並從中減去 1.8 億美元或 1.79 億美元並除以 3 時，您就會很清楚地知道我們每季度的支出是多少。因此，我認為您不必等到 2026 年才能看到企業效率的階躍變化，同樣，我們將在每個季度花費 1 億至 1.1 億美元，無論您運行什麼模型，每天仍可生產 50,000 桶油當量。

At any reasonable oil price, you're going to see that we're going to generate significant free cash flow. So, your second kind of part of that question I think is very important. One, we want to optimize our capital structure for high P/E.

在任何合理的油價下，你會看到我們將產生大量的自由現金流。所以，我認為問題的第二部分非常重要。第一，我們要優化資本結構，實現高本益比。

Again, typically that would mean a normal way financing with high yield bond and be reasonable to expect that you have a fairly large, RBL, and again that RBL typically you like to keep that, well under 50%, drawn when you, kind of an inaugural. So, with that, we would have significant ability over the first, the next couple years to pay down our net debt at par off of the RBL.

再一次，通常這意味著以高收益債券進行正常融資，並且有理由預期你擁有相當大的 RBL，並且通常你會希望將 RBL 保持在 50% 以下，當你舉行就職典禮時。因此，有了它，我們將有能力在未來幾年內以 RBL 面額償還淨債務。

And again, a typical, normal way high yield bond usually has a two-year kind of no call to provision, so we would have that kind of 2-year period to pay down debt on the RBL at par. So again, allowing us a whole lot of flexibility with us to be able to utilize that large amount of free cash flow we're going to be generating. So, great question, Jeff.

再說一次，典型的、正常的高收益債券通常有兩年的不需提取撥備期，所以我們會有這種兩年的時間來以面額償還 RBL 債務。因此，這再次為我們提供了很大的靈活性，使我們能夠利用我們將要產生的大量自由現金流。所以，傑夫，這個問題問得好。

Thank you. You bet.

謝謝。當然。

Thank you.

謝謝。

Ladies and gentlemen, I'm showing no further questions in the queue. That does conclude today's conference call.

女士們、先生們，隊列中沒有其他問題了。今天的電話會議到此結束。

Thank you for your participation. You may now disconnect.

感謝您的參與。您現在可以斷開連線。