FORT WORTH, Texas - HighPeak Energy, Inc. (NASDAQ: HPK), an independent oil and natural gas company, announced today a significant increase in its quarterly dividend alongside the initiation of a stock repurchase program. The company's Board of Directors has declared a 60 percent increase in the quarterly dividend, raising it to $0.04 per share, payable on March 25, 2024, to shareholders of record as of March 1, 2024.
In a strategic move to enhance shareholder value, HighPeak's Board has also approved a new stock repurchase program. The company is now authorized to buy back up to $75M of its common shares. This marks the first stock repurchase program since HighPeak's inception. The repurchases are planned to be made opportunistically and may occur in the open market, through block trades, or in privately negotiated transactions, all in compliance with regulatory requirements.
The company has indicated that the timing and volume of repurchases will be subject to management's discretion and will be influenced by various factors, including market conditions, the trading price of HighPeak's stock, and other potential investment opportunities. The repurchase program is flexible, not obligating the company to acquire a set dollar amount or number of shares, and may be modified, suspended, or discontinued at any time. The authorization for this program is set to expire on December 31, 2024.
HighPeak Energy is headquartered in Fort Worth, Texas, and operates in the Midland Basin of West Texas, focusing on unconventional crude oil and natural gas reserves. The company's approach involves the acquisition, development, exploration, and exploitation of these resources.
The announcement includes forward-looking statements, which are based on current expectations and projections about future events. These statements carry risks and uncertainties that could cause actual results to differ materially from expectations. HighPeak Energy has provided cautionary notes regarding these forward-looking statements, which are not guarantees of future performance.
This news is based on a press release statement from HighPeak Energy, Inc. and does not constitute an endorsement of the company's strategies or its potential success. Investors are reminded that all investment decisions should be made based on their own due diligence and risk tolerance.
InvestingPro Insights
As HighPeak Energy, Inc. (NASDAQ: HPK) announces its plans to enhance shareholder value through increased dividends and a new stock repurchase program, it's crucial for investors to consider the company's financial health and market performance. According to InvestingPro data, HighPeak Energy has a market capitalization of approximately $1.62B and an attractive P/E ratio of 8.57, suggesting the stock might be undervalued relative to earnings. The company has shown impressive revenue growth over the last twelve months as of Q3 2023, with an increase of 79.07%, signaling strong operational performance.
However, InvestingPro Tips highlight that HighPeak operates with a significant debt burden and is quickly burning through cash, which could be concerning for long-term sustainability. The stock has also taken a considerable hit over the last week, with a one-week price total return of -11.28%, and has seen a substantial decline of -54.13% over the past year. Despite these challenges, analysts predict the company will be profitable this year, and it has been profitable over the last twelve months.
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