HighPeak Energy, Inc. (HPK): announcements explained, share price

Announcements, explained

Each one in plain English, with the numbers worked through for a shareholder.

6 Sept 2022capital raising announcement● NeutralMajor

HighPeak closed the private placement on September 2, 2022, saying it was $85 million of 3.9 million new shares at $21.61, larger than the roughly $61.7 million and 2,855,162 shares in the August 24 filing. Final closings came after the August 22 initial closings, and proceeds are for general corporate purposes.

What it means for a shareholder

3.9m new shares at US$21.61 to raise about US$85.0m. That's 3.4% dilution: every existing holder's slice gets 3.4% smaller. If you held US$1,000 of shares (46 at the issue price), your slice goes from 0.0000424% to 0.0000409% of the company. To keep it you'd need 2 more shares - about US$43 at the issue price.

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24 Aug 2022capital raising announcement● NeutralMajor

On August 22-23, 2022 HighPeak agreed to sell 2,855,162 new shares at $21.61 each to accredited investors in a private placement, for about $61.7 million, to be used for general corporate purposes. Insiders took part: CEO Jack Hightower (462,749 shares), President Michael Hollis (46,276), CFO Steven Tholen (9,255), COO Rodney Woodard (23,138) and the John Paul DeJoria Family Trust (2,313,744), approved under the related-party policy. The new shares dilute existing holders.

What it means for a shareholder

2.9m new shares at US$21.61 to raise about US$61.7m. That's 2.5% dilution: every existing holder's slice gets 2.5% smaller. If you held US$1,000 of shares (46 at the issue price), your slice goes from 0.0000424% to 0.0000413% of the company. To keep it you'd need 1 more shares - about US$22 at the issue price.

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22 Feb 2022capital raising announcement● NeutralMajor

HighPeak closed the $225 million of 10.00% Senior Unsecured Notes due February 15, 2024 on February 16, 2022 (the Notes flagged in the Credit Suisse purchase agreement), with about $207.3 million net proceeds. Part of the proceeds paid off the debt outstanding under its bank credit facility, and the rest is for drilling, development and general purposes. It also agreed to buy oil and gas properties next to its Flat Top area (about 9,500 net acres, about 2,500 barrels of oil equivalent a day, about 40 drilling locations) for up to 7,733,333 new shares plus $4.0 million cash, expected to close in late Q1 / early Q2 2022; the new shares would dilute existing holders.

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16 Aug 2021capital raising announcement▼ BadMajor

On August 16, 2021 HighPeak announced the launch of an underwritten public offering of 5,000,000 new common shares, with a 30-day option for underwriters to buy up to 750,000 more. For shareholders, new shares mean dilution. Pricing and use of proceeds were not in this filing.

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