Operational efficiency is under pressure as the capital expenditure to revenue ratio reached 53.0% in 2026Q1, contributing to a negative free cash flow margin of 30.7%.
| Cash from Operations | 402.65M | 511.6M | 690.39M | 756.39M | 504.01M | 147.01M | 1.31M | -772K |
| Operating CF Margin % | - | 59.26% | 64.56% | 68.06% | 66.7% | 66.79% | 5.32% | -9.51% |
| Operating CF Growth % | -164.96% | -25.9% | -8.73% | 50.07% | 242.83% | 11113.96% | 269.82% | - |
| Net Income | -144.82M | 16.87M | 85.91M | 215.87M | 236.85M | 55.56M | -101.46M | -11.58M |
| Depreciation & Amortization | 428.83M | 422.85M | 0 | 11.41M | 177.74M | 65.2M | 16.4M | 4.34M |
| Stock-Based Compensation | 265K | 0 | 0 | 25.96M | 33.35M | 6.68M | 15.78M | 0 |
| Deferred Taxes | -26.82M | 7.24M | 35.33M | 65.91M | 75.36M | 16.9M | 0 | 0 |
| Other Non-Cash Items | 142.51M | 24.33M | 574.55M | 419.83M | 15.79M | 16.87M | 80.31M | 2.85M |
| Working Capital Changes | 3.19M | 40.31M | -5.41M | 17.42M | -35.09M | -14.2M | -9.72M | 3.62M |
| Change in Receivables | -20.15M | 29.7M | 9.35M | 2.01M | -57.22M | -31.66M | -4.33M | 70K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | -702K | -209K |
| Change in Payables | 13.79M | 4.98M | 4.72M | 8.49M | 34.09M | 24.51M | -4.68M | 3.75M |
| Cash from Investing | -473.1M | -515.34M | -620.84M | -1.13B | -1.18B | -250.37M | -139.82M | -51.43M |
| Capital Expenditures | -425.7M | -522.16M | -621.18M | -1.13B | -1.31B | -291M | -124.69M | -71.92M |
| CapEx % of Revenue | 55.22% | 60.48% | 58.09% | 101.32% | 173.53% | 132.2% | 506.4% | 886.3% |
| Acquisitions | 6.25M | 6.82M | 339K | 0 | 128.94M | 0 | 7.35M | 24.68M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -53.65M | 0 | 0 | 0 | 0 | 40.63M | -22.48M | -4.19M |
| Cash from Financing | 114.65M | 79.17M | -177.41M | 533.56M | 674.03M | 118.67M | 135.35M | 74.02M |
| Debt Issued (Net) | 119.84M | 107.39M | -120M | 425M | 610.18M | 100M | 0 | 0 |
| Equity Issued (Net) | -4M | -154K | -35.17M | 155.77M | 85M | 25.3M | 138.44M | 74.02M |
| Dividends Paid | -16.98M | -23M | -22.19M | -13.12M | -11.61M | -12.63M | -2.78M | 0 |
| Share Repurchases | -3.85M | 0 | -35.17M | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 15.8M | -5.07M | -57K | -34.1M | -9.54M | 6M | -305K | 0 |
| Net Change in Cash | 44.21M | 75.43M | -107.87M | 164.01M | -4.37M | 15.32M | -3.16M | 22.71M |
| Free Cash Flow | -23.05M | -10.56M | 69.21M | -369.55M | -807.33M | -143.98M | -123.38M | -72.69M |
| FCF Margin % | -2.99% | -1.22% | 6.47% | -33.25% | -106.83% | -65.41% | -501.08% | -895.81% |
| FCF Growth % | -151.36% | -115.26% | 118.73% | 54.23% | -460.72% | -16.7% | -69.72% | - |
| FCF per Share | -0.18 | -0.08 | 0.54 | -3.00 | -7.26 | -1.52 | -1.34 | -0.79 |
| FCF Conversion (FCF/Net Income) | 0.16x | 26.98x | 7.26x | 3.50x | 2.13x | 2.65x | -0.01x | 0.07x |
| Interest Paid | 67.09M | 0 | 0 | 0 | 0 | 1.81M | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Commodity price volatility exposure
According to recent financial disclosures, HighPeak Energy's operating cash flow to net income ratio reached a negative 0.38 in 2026Q1, illustrating a profound disconnect between accounting profitability and actual cash generation that warrants significant caution regarding the sustainability of the firm's current operational model.
The persistent divergence between net income and operating cash flow suggests that non-cash charges and accruals are masking the underlying cash-generative capacity of the business. Investors should monitor whether this trend reflects structural inefficiencies in production or merely temporary accounting adjustments related to the company's aggressive development cycle.
As reported in quarterly filings, the company's free cash flow margin plummeted to negative 30.7% in 2026Q1, a stark reversal from the positive 15.1% margin observed in 2023Q4, indicating that the current capital-intensive strategy is failing to produce surplus cash in the current commodity price environment.
The shift from positive to negative free cash flow trajectory suggests that the company is struggling to balance its drilling program with the realities of lower realized prices. This trend implies that the firm may be forced to rely on external financing or balance sheet liquidity if production costs do not align with revenue generation.
Based on the provided data, HighPeak Energy's capital expenditure to revenue ratio reached 53.0% in 2026Q1, highlighting an extremely capital-intensive operational structure that appears to be consuming the majority of top-line inflows to maintain its current drilling and completion activity levels in the Midland Basin.
The high level of capital intensity relative to revenue suggests that the company is prioritizing inventory development over immediate cash flow maximization. This strategy may be sustainable only if the underlying well performance justifies the heavy upfront investment, a premise that remains unproven given the recent revenue contraction.
As indicated by the company's historical cash flow statements, working capital changes have been highly erratic, swinging from a negative $45.8M in 2026Q1 to a positive $31.7M in 2023Q4, which suggests significant instability in the timing of cash collections and payables management across reporting periods.
This volatility in working capital may indicate challenges in managing service provider payments or fluctuations in inventory valuation. Such instability complicates the predictability of cash flows and suggests that the company's liquidity position is sensitive to operational timing rather than just core production performance.
Quick answers to the most common questions about buying HPK stock.
HighPeak Energy, Inc. (HPK) generated $511.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
HighPeak Energy, Inc. (HPK) reported negative free cash flow of $10.6M in 2025, indicating capital requirements exceeded cash from operations.
HighPeak Energy, Inc. (HPK) spent $522.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, HighPeak Energy, Inc. (HPK) returned $23.0M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.