Here's Why HighPeak Energy Shares Are Rising

HighPeak Energy Inc HPK shares are trading higher Tuesday after the company late Monday initiated a strategic alternatives process that includes a potential sale.

Strategic Alternatives: HighPeak's board voted to initiate a process to evaluate certain strategic alternatives to maximize shareholder value. The company did not set a timetable for the conclusion of its evaluation, but alternatives include a potential sale of the oil and natural gas company.

HighPeak plans to reduce drilling operations from six to four drilling rigs during the first half of 2023. As a result, the company anticipates having self-sustaining operations and becoming cash flow positive in the second half of the year and then transitioning into consistent free cash flow generation.

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"The Board and I believe now is an opportune time to capture the value we do not consider is presently reflected in our share price. We have worked diligently over the last few years to secure this position and are poised to capitalize on the favorable energy market outlook," said Jack Hightower, chairman and CEO of HighPeak.

"We believe we are currently trading at a substantial discount to our intrinsic value and our investors will benefit materially as we transition into a free cash flow mode," Hightower added.

HighPeak is an independent oil and natural gas company focused on the acquisition, development, exploration and exploitation of unconventional oil and natural gas reserves in the Midland Basin in West Texas. 

HPK Price Action: HighPeak shares are up 12.4% at $30.25 at time of publication, according to Benzinga Pro.

Photo: Ferdinand Kozeluh from Pixabay.