$HighPeak Energy (HPK.US)$ This particular energy stock is S...
$HighPeak Energy(HPK.US$ This particular energy stock is SO oversold given the earnings report and guidance it’s almost staggering🤥….. It’s initial knee jerk sell off in last night’s post market was an understandable rather typical reaction based on the “first” look at the earnings numbers……. However the follow through in the market today was of absolutely no substance, and appeared to be made up primarily of aggressive shorts in an attempt to strong arm the market down to artificially low prices in hopes of shaking out as many of the stock’s typical shareholders as possible…….which they seem to have done a pretty good job at. ….However, …..The forward guidance given on HPK when digging deeper into its earnings report shows with great correlation why there was a slight dilution per share due primarily to their acquisition of two new high production drilling acreages that were nothing short of a grand slam deal for the company, not to mention their completion of their well timed purchase of a new large scale electric generation system ( a new capital assett that they can now depreciate) allowing them to additionally cancel future rental payments on what have been up until now, rather expensive non depreciable generators, allowing them to become far more independent insofar as control over the price and availability of their own energy needs for drilling and extraction.
Additionally, they’ve by all reasonable metrics just about doubled their overall output in the fourth quarter alone, and furthermore are already well into the process of smartly pivoting to further utilize their existing capacity by leveraging (not counting any production from their two new drilling site acquisitions) production capacity in their plans to promptly, recommission a number of their pre-existing capped wells, as well as bringing several new drilling rigs online on their already “proven” oil fields that lay right the heart of some of the richest, most highly productive oil fields in North America,……not to mention HPK’s 5 already active horizontal fracking rigs and everything they are now ready to deliver at increased capacity.
Truth be told, after considering facets of this company’s tangible assets , balance sheet trajectory, and decisive abilities to pivot producti9n on short notice with minimal additional capital expenditure at a moment’s notice,……This smalller well run company appears to be nothing short of a CASH COW……. so much so,that appears to be well positioned and solidly poised to consistently begin delivering rapidly accelerated free cash flow over the next four quarters beginning some time in the back half of this year and into the foreseeable future looking forward for at least the next four quarters, and likely beyond..
unlike many of its peers, HPK actually has the ability to make money pumping crude, even if it were to trade all the way down to $30/bbl., which is a world away from where it’s currently trading and. the projected trajectory of oil’s pricing for the extended foreseeable future,,,',,,,, So ask yourself,…….How do you think HPK is feeling about ramping up their drilling production, and rapidly expanding their own capacity to capitalize on oil trading in the $85/bbl + range?…….. I’d guess…its pretty darn good!
HPK”s most recent Guidance indicates the company is more than likely to rapidly accelerate the growth of its free cash flow over the next four quarters with little to no change in course or extraordinary effort of any kind over and above it’s already in play charted course of action and momentum outside of adeptly executing their already planned and well implemented tapping and drilling that which they were already smartly in the process of completing by already having several of their NEW wells also nearing completion some time here in the second quarter.
In my humble opinion only,……. the catalyst for the seemingly exaggerated move downward Tuesday, was again caused almost entirely by ready to pounce shorts ( as indicated by an increase in the short float) trying to aggresively intimidate and take advantage of what by all appearances HPK’s slight revenue and earnings miss…….again, doing so in order to flush out positions and weaker hands on the long side of the trade,
Again, in my own opinion based on my own experience, that this stock should have bounced off of the initial 13% drop in the aftermarket, and rather immediately rallied by at least $.50-.90 cents above yesterdays close, putting the stock somewhere around $33.00 and change +/-,…..especially given Tuesday”s solid market rally as well as the decent move up in spot crude prices and LNG prices, which had a huge move north.
So,love it or leave it,…" but this stock is a “gift of rare proportions” here i the $27.50 to$30 range……especially given the company’s fundamentals, the energy markets firm pricing, and looking forward indefinitely into the future as Europe begins to slowly shut Russia down. This will have global consequences for everyone including the US ,….and it will likely be sooner than later, as we’re already starting to see rhe front end of this collateral damage in the world energy markets.
HPK however, is poised in a rather unique kind of “ perfect storm” kind of way to be able to adeptly leverage their new drilling and production targets out of already drilled non active and near completed new wells. Their nimble ability to pivot so quickly, andr calculable ability to compress unexpected capital expenses moving forward, should put HPK in what is better known as “ harvest mode”….(the long awaited T ime to enjoy the gravy of an carefully planned and prepared feast”….so to speak) over the next four quarters ( likely far beyond, but in reality, no one can give credible, reasonable or reliable guidance of any kind beyond a year…..at least if they’re honest they can’t ) …. but anyway, which should bring this cash cow of a company into looking more like the cow that laid the golden calf🐂✨💹.
So don’t get snookered into cashing out of what you believe is a winning stock by short sellers who’s biggest trick within their bag is to intimidate long shareholders in a smaller company into giving up their positions out of fear of getting crushed, only to have these same shorts cover shortly thereafter, get long as the market dictates, and send the market steadily closer to its real market value, while you get caught sitting it out on the sidelines with a loss as the stock price blows through your original basis or averaged price, wondering how you got it so wrong ? ……In many cases you’ll find out ……you didn’t. sometimes you just need to take a few alka seltzer and wait it out patiently, as shorts can’t stay short indefinitely without alot of maneuvering borrowing additional shares etc…..So stick to your guns in any stock if you believe that company is going to perform.!,!,✨🏆✨
Again this is my own personal opinion based on my own personal experience as a former trader and market analyst on the floor of the Chicago Board of Trade. However…..I am no longer a floor trader and I’m also retired. You should pay close attention to what’s under the hood of this company’s land assets, near term capabilities to greatly increase capacity, their balance sheet, and their extraordinarily low break even price for pumping crude. 💹
DO YOUR OWN HOMEWORK !!! And make the investment decisions that are most appropriate for you and your financial goals, needs and risk tolerance before investing in any stock or financial instrument.
Good Luck😊✨……cheers!
P.S. please forgive any typos or grammatical errors. I type faster than I should to try to keep up with my thoughts😉
Additionally, they’ve by all reasonable metrics just about doubled their overall output in the fourth quarter alone, and furthermore are already well into the process of smartly pivoting to further utilize their existing capacity by leveraging (not counting any production from their two new drilling site acquisitions) production capacity in their plans to promptly, recommission a number of their pre-existing capped wells, as well as bringing several new drilling rigs online on their already “proven” oil fields that lay right the heart of some of the richest, most highly productive oil fields in North America,……not to mention HPK’s 5 already active horizontal fracking rigs and everything they are now ready to deliver at increased capacity.
Truth be told, after considering facets of this company’s tangible assets , balance sheet trajectory, and decisive abilities to pivot producti9n on short notice with minimal additional capital expenditure at a moment’s notice,……This smalller well run company appears to be nothing short of a CASH COW……. so much so,that appears to be well positioned and solidly poised to consistently begin delivering rapidly accelerated free cash flow over the next four quarters beginning some time in the back half of this year and into the foreseeable future looking forward for at least the next four quarters, and likely beyond..
unlike many of its peers, HPK actually has the ability to make money pumping crude, even if it were to trade all the way down to $30/bbl., which is a world away from where it’s currently trading and. the projected trajectory of oil’s pricing for the extended foreseeable future,,,',,,,, So ask yourself,…….How do you think HPK is feeling about ramping up their drilling production, and rapidly expanding their own capacity to capitalize on oil trading in the $85/bbl + range?…….. I’d guess…its pretty darn good!
HPK”s most recent Guidance indicates the company is more than likely to rapidly accelerate the growth of its free cash flow over the next four quarters with little to no change in course or extraordinary effort of any kind over and above it’s already in play charted course of action and momentum outside of adeptly executing their already planned and well implemented tapping and drilling that which they were already smartly in the process of completing by already having several of their NEW wells also nearing completion some time here in the second quarter.
In my humble opinion only,……. the catalyst for the seemingly exaggerated move downward Tuesday, was again caused almost entirely by ready to pounce shorts ( as indicated by an increase in the short float) trying to aggresively intimidate and take advantage of what by all appearances HPK’s slight revenue and earnings miss…….again, doing so in order to flush out positions and weaker hands on the long side of the trade,
Again, in my own opinion based on my own experience, that this stock should have bounced off of the initial 13% drop in the aftermarket, and rather immediately rallied by at least $.50-.90 cents above yesterdays close, putting the stock somewhere around $33.00 and change +/-,…..especially given Tuesday”s solid market rally as well as the decent move up in spot crude prices and LNG prices, which had a huge move north.
So,love it or leave it,…" but this stock is a “gift of rare proportions” here i the $27.50 to$30 range……especially given the company’s fundamentals, the energy markets firm pricing, and looking forward indefinitely into the future as Europe begins to slowly shut Russia down. This will have global consequences for everyone including the US ,….and it will likely be sooner than later, as we’re already starting to see rhe front end of this collateral damage in the world energy markets.
HPK however, is poised in a rather unique kind of “ perfect storm” kind of way to be able to adeptly leverage their new drilling and production targets out of already drilled non active and near completed new wells. Their nimble ability to pivot so quickly, andr calculable ability to compress unexpected capital expenses moving forward, should put HPK in what is better known as “ harvest mode”….(the long awaited T ime to enjoy the gravy of an carefully planned and prepared feast”….so to speak) over the next four quarters ( likely far beyond, but in reality, no one can give credible, reasonable or reliable guidance of any kind beyond a year…..at least if they’re honest they can’t ) …. but anyway, which should bring this cash cow of a company into looking more like the cow that laid the golden calf🐂✨💹.
So don’t get snookered into cashing out of what you believe is a winning stock by short sellers who’s biggest trick within their bag is to intimidate long shareholders in a smaller company into giving up their positions out of fear of getting crushed, only to have these same shorts cover shortly thereafter, get long as the market dictates, and send the market steadily closer to its real market value, while you get caught sitting it out on the sidelines with a loss as the stock price blows through your original basis or averaged price, wondering how you got it so wrong ? ……In many cases you’ll find out ……you didn’t. sometimes you just need to take a few alka seltzer and wait it out patiently, as shorts can’t stay short indefinitely without alot of maneuvering borrowing additional shares etc…..So stick to your guns in any stock if you believe that company is going to perform.!,!,✨🏆✨
Again this is my own personal opinion based on my own personal experience as a former trader and market analyst on the floor of the Chicago Board of Trade. However…..I am no longer a floor trader and I’m also retired. You should pay close attention to what’s under the hood of this company’s land assets, near term capabilities to greatly increase capacity, their balance sheet, and their extraordinarily low break even price for pumping crude. 💹
DO YOUR OWN HOMEWORK !!! And make the investment decisions that are most appropriate for you and your financial goals, needs and risk tolerance before investing in any stock or financial instrument.
Good Luck😊✨……cheers!
P.S. please forgive any typos or grammatical errors. I type faster than I should to try to keep up with my thoughts😉
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