HighPeak Energy, Inc

U.S. shale E&P stocks delivered an exceptional second quarter, with the 11 companies tracked beating analysts' consensus revenue estimates by 10.4% as a group. Chord Energy, the largest acreage holder in the Williston Basin, reported revenues of $2.17 billion, up 84% year on year and exceeding expectations by 31.9%, the biggest beat in the group, and its stock has risen 7.9% since reporting to $140.20. HighPeak Energy, operating in the Midland Basin, posted revenues of $272.4 million, up 25.8% year on year and beating estimates by 8.7%, though its stock is down 2.5% to $7.73. Texas Pacific Land, with roughly 868,000 acres in the Permian Basin, reported revenues of $246.1 million, up 31.2% year on year but missing estimates by 1.4%, the weakest performance among peers, and its stock is down 2.4% to $372.77. Matador Resources, focused on the Delaware Basin, saw revenues of $1.19 billion, up 32.5% year on year and beating estimates by 13.7%, with its stock up 18% to $55.50. Diamondback Energy, operating in the Permian Basin, reported revenues of $5.56 billion, up 51.2% year on year and beating estimates by 13.5%, with its stock flat at $199.02. On average, shale E&P stocks have risen 11.1% since the latest earnings results.

Shares of Talos Energy, Transocean, HighPeak Energy, and Murphy Oil surged after President Donald Trump announced broader economic warfare against Iran, driving oil prices higher. Trump said on Truth Social he would launch 'the most crushing economic operation ever taken against any country,' causing West Texas Intermediate and Brent crude contracts to surge. Talos Energy jumped 5.1%, Transocean rose 2.9%, HighPeak Energy gained 3.1%, and Murphy Oil climbed 4.3%. The escalation also dimmed near-term hopes that a U.S.-Iran deal would reopen the Strait of Hormuz, a critical oil choke point.

Energy stocks jumped in afternoon trading after Iran ruled out extending a 60-day memorandum of understanding with the United States. The June 17 memorandum was meant to reopen the Strait of Hormuz while the two sides negotiated a nuclear deal within 60 days, CNBC reported. President Trump told Fox News he has no time schedule and is not in a hurry, while a senior Iranian official told Reuters that Tehran would shift from defense to offense if diplomacy fails. Oilfield services company ProPetro jumped 4.4%, Patterson-UTI jumped 5.3%, and U.S. shale E&P company HighPeak Energy jumped 4.3%. Patterson-UTI is up 86.9% since the beginning of the year and trading close to its 52-week high of $12.85 from May 2026.

Several companies made notable moves this week on earnings and outlook news. EnerSys rose 5.7% on Thursday after reporting first-quarter fiscal 2027 results with strong earnings growth and guidance above Wall Street expectations. Sabre gained 6.3% on Thursday after posting strong second-quarter 2026 results, raising its full-year profitability outlook, and revealing new client wins. Corning fell 2.7% on Monday after reports that key customer Apple scrapped its planned all-glass 20th-anniversary iPhone model, raising concerns about future demand for specialty glass. HighPeak Energy rose 5.4% on Tuesday after reporting second-quarter 2026 results that surpassed Wall Street expectations, driven by surging crude oil prices and disciplined capital expenditures.

Several stocks made big moves yesterday on earnings news. Amentum fell 6% after third-quarter results missed Wall Street expectations for revenue and profit. Upwork dropped 10.2% after second-quarter results came with weak forward guidance, prompting multiple analysts to lower price targets. Aramark rose 9.8% after reporting better-than-expected third-quarter 2026 results. HighPeak Energy gained 5.4% after second-quarter 2026 results comfortably surpassed expectations, driven by surging crude oil prices and disciplined capital expenditures.

HighPeak Energy reported second-quarter results with production above its guidance range and lease operating expenses about 13% below the midpoint of full-year guidance. For the first half of 2026, production averaged 45,500 barrels of oil equivalent per day, while unit lease operating expense averaged $7.56 per BOE. Adjusted EBITDAX reached approximately $281 million in the first half. The company invested $185.9 million in the first half after accelerating completion work to capture favorable pricing and efficiency gains, and expects materially lower spending in the second half while maintaining strong production and free cash flow. HighPeak ended the quarter with $146 million in cash and plans to make $30 million quarterly term-loan payments beginning in the third quarter.

StockStory highlights two energy stocks to consider and one to avoid. EQT, the largest U.S. natural gas producer by daily volume, posted 15.4% annual revenue growth over the past decade and improved its EBITDA margin by 27 percentage points in five years. HighPeak Energy, operating in the Midland Basin, achieved 78.2% annual revenue growth over five years and a best-in-class gross margin of 78.8%. Meanwhile, ExxonMobil is flagged for a below-peer gross margin of 44.1% and stagnant EBITDA margin over the same period.

Texas Pacific Land reported first-quarter revenues of $236.8 million, up 20.8% year on year but falling short of analysts' expectations by 0.8%, with a significant miss on EBITDA estimates. The company, one of America's largest private landowners with roughly 868,000 acres in the Permian Basin, saw its stock drop 11.9% since reporting. Among the 11 U.S. shale E&P stocks tracked, the group beat revenue consensus by 2.7% on average, yet share prices are down 12.7% on average since their latest earnings. Chord Energy posted the strongest results, with revenues of $1.67 billion beating estimates by 33.1%, though its stock still fell 19.6%. Other notable performers included Matador Resources, which missed revenue expectations by 23%, and HighPeak Energy, which beat revenue estimates by 1.3% and saw its stock rise 10%.