HighPeak Energy: Excellent Time To Strengthen The Balance Sheet

Long Player Investing Group Leader Follow 5 Share Save Play ( 10min ) Comments Summary HighPeak Energy is well-positioned to benefit from rising commodity prices amid Middle East supply disruptions and is prioritizing debt reduction. HPK's operations in Howard County offer high profitability and rapid paybacks. The new CEO, with Diamondback Energy experience, is shifting strategy toward balance sheet improvement and (likely) preparing for future cyclical downturns. Management's upcoming decisions on capital allocation and conservatism will be critical. The second quarter should clarify strategic direction. But it is hard to go wrong with the stock price at these levels. This idea was discussed in more depth with members of my private investing community, Oil & Gas Value Research. Learn More » IURII KRASILNIKOV/iStock via Getty Images The last article I wrote on HighPeak Energy, Inc. ( HPK ) noted that the company hired a new CEO from Diamondback Energy ( FANG ). Diamondback Energy is one of the top companies This article was written by Long Player 25.87K Followers Follow Long Player believes oil and gas is a boom-bust, cyclical industry. It takes patience, and it certainly helps to have experience. He has been focusing on this industry for years. He is a retired CPA, and holds an MBA and MA. He leads the investing group Oil & Gas Value Research. He looks for under-followed oil companies and out-of-favor midstream companies that offer compelling opportunities. The group includes an active chat room in which Oil & Gas investors discuss recent information and share ideas. Learn more. Analyst’s Disclosure: I/we have a beneficial long position in the shares of HPK either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Disclaimer: I am not an investment advisor, and this article is not meant to be a recommendation for the purchase or sale of stock. Investors are advised to review all company documents and press releases to see if the company fits its own investment qualifications. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.