HighPeak Power Inc HPK shares are buying and selling greater in Monday’s after-hours session after the corporate initiated a strategic alternate options course of, which features a potential sale.
What To Know: HighPeak mentioned its board has voted to provoke a course of to guage sure strategic alternate options to maximise shareholder worth, together with a possible sale of the corporate.
“The Board and I imagine now’s an opportune time to seize the worth we don’t contemplate is presently mirrored in our share worth. We’ve got labored diligently over the previous few years to safe this place and are poised to capitalize on the favorable vitality market outlook,” mentioned Jack Hightower, chairman and CEO of HighPeak.
HighPeak additionally mentioned it plans to scale back drilling operations from six to 4 drilling rigs throughout the first half of 2023 as a way to “align its 2023 and 2024 plans with the evolving financial setting.”
Consequently, the corporate anticipates having self-sustaining operations and turning into money move optimistic within the second half of the 12 months after which transitioning into constant free money move era thereafter.
“We imagine we’re at present buying and selling at a considerable low cost to our intrinsic worth and our traders will profit materially as we transition right into a free money move mode,” Hightower added.
HighPeak is an impartial oil and pure fuel firm targeted on the acquisition, growth, exploration and exploitation of unconventional oil and pure fuel reserves within the Midland Basin in West Texas.
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HPK Worth Motion: HighPeak has a 52-week excessive of $38.21 and a 52-week low of $16.04.
The inventory was up 7.91% at $29.05 in after hours after being halted on the announcement, in keeping with Benzinga Professional.
Photograph: John R Perry from Pixabay.