| Deal value | $450M |
|---|---|
| Share of market cap | 44.0% |
Key highlights
- $450 million raised through Series A 6.0% Perpetual Convertible Preferred Stock
- Commitment for a new $800 million reserve-based credit facility from Citibank and Fifth Third Bank
- Total proceeds to be used for the full repayment of a $1.17 billion existing term loan
- Initial conversion price of $9.50 per share represents a premium over recent trading levels
- Strategic partnership established with Indonesian sovereign fund DIM and PT Energi Mega Persada
What Is the Capital Raise?
HighPeak Energy is issuing 450,000 shares of newly created Series A 6.0% Perpetual Convertible Preferred Stock to subsidiaries of the Indonesian sovereign wealth fund and PT Energi Mega Persada. The shares carry a 6.0% cash dividend rate for the first two years, increasing to 7.5% through year five, and 10.0% thereafter. Alternatively, the company may pay dividends in-kind at slightly higher rates during the initial five-year period. The preferred stock features an initial conversion price of 9.50 dollars per share and includes a liquidation preference of 1,000 dollars per share. This private placement is expected to close in the fourth quarter of 2026.
Key Terms of the Preferred Stock
- Issuance of 450,000 shares of Series A 6.0% Perpetual Convertible Preferred Stock
- Initial conversion price set at $9.50 per share with mandatory conversion options after year three
- Incremental dividend rate scaling from 6.0% to 10.0% over a five-year period
- Total gross proceeds of approximately $450 million from Indonesian strategic investors
- Two-year transfer restrictions and standstill agreements for the participating investors
Use of Proceeds
The 450 million dollars in gross proceeds from the preferred equity issuance will be combined with initial borrowings from a new 800 million dollar reserve-based lending facility. Citibank and Fifth Third Bank have provided committed financing for this credit line, which is expected to close simultaneously with the equity investment. HighPeak intends to use the collective funds to repay its existing 1.17 billion dollar term loan in its entirety. This move effectively transitions the company debt from a high-cost term loan to a more flexible credit structure supported by permanent equity capital, significantly reducing the immediate principal repayment burden and annual interest obligations.
Executive Perspective on Financial Flexibility
“Today marks a milestone for HighPeak Energy. This comprehensive refinancing will materially strengthen our balance sheet, significantly reduce our financing burden and enhance our ability to generate long-term value for shareholders. The combination of permanent capital from high-quality investors alongside a new reserve-based lending facility will enable HighPeak to retire its existing term loan and establish a much more effective capital structure.”
Financial and Strategic Context
The refinancing follows a period of active balance sheet management, including a 1.20 billion dollar term loan amendment in late 2025 and a 150 million dollar at-the-market equity program initiated in May 2026. HighPeak reported trailing twelve-month revenue of 863.4 million dollars, supported by a production guidance range of 41,000 to 44,000 barrels of oil equivalent per day. As of June 2026, the operator maintained an active development pipeline with 21 gross horizontal wells in progress in the Midland Basin. The current market capitalization stands at approximately 1.02 billion dollars, with the stock recently trading in the 8.09 dollar range.
Up 25.0% since our story on 6 Oct: $8.09 when we broke it → $10.11 at the close on 13 Oct. Daily closing prices. Source: Yahoo Finance.
Show the prices
| 14 Sep | $8.38 |
|---|---|
| 15 Sep | $8.64 |
| 16 Sep | $7.87 |
| 17 Sep | $8.34 |
| 18 Sep | $8.33 |
| 21 Sep | $7.95 |
| 22 Sep | $7.79 |
| 23 Sep | $7.89 |
| 24 Sep | $7.65 |
| 25 Sep | $7.56 |
| 28 Sep | $7.59 |
| 29 Sep | $7.79 |
| 30 Sep | $8.16 |
| 1 Oct | $7.94 |
| 2 Oct | $7.85 |
| 5 Oct | $8.09 |
| 6 Oct | $8.22 |
| 7 Oct | $8.52 |
| 8 Oct | $8.73 |
| 9 Oct | $9.55 |
| 12 Oct | $9.71 |
| 13 Oct | $10.11 |
| Date | Announcement | Amount |
|---|---|---|
| 06 May 2026 | At-the-market common stock equity offering programSource: SEC filing | $150.0 Million |
| 04 Aug 2025 | Term Loan Credit Agreement amendment and debt upsizeSource: nasdaq.com | $1.20 Billion |
| 30 Jun 2025 | Private placement offering of senior notes due 2030Source: ir.highpeakenergy.com | $725.0 Million |
Management commentary
“We expect that this transaction will improve our liquidity profile, materially reduce our annual interest expense, and provide us with greater financial flexibility to focus on disciplined development, free cash flow generation and continued shareholder value creation.”
| Share price | $8.09 |
|---|---|
| Market cap | $1.0B |
| Revenue (annual) | $863M |
| 1-month price change | -0.61% |
| Sector | EnergyOil & Gas E&P |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
SEC filing by HighPeak Energy, Inc. announcing a $450 million preferred equity issuance and $800 million credit facility.
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