Note 10 - Related Party Transactions

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

NOTE

10.

Related Party Transactions

General and Administrative Expenses.

The general partner of HPK LP utilized HighPeak Energy Management, LLC (the “Management Company”) to provide services and assistance to conduct, direct and exercise full control over the activities of HPK LP per its Partnership Agreement. However, the Management Company is funded via payments from the parent companies of HighPeak I and HighPeak II pursuant to their respective Limited Partnership Agreements, as amended. Therefore, HPK LP reimbursed the parent companies of HighPeak I and HighPeak II for actual costs incurred by the Management Company. During the

three

months ended

March 31, 2020,

HPK LP paid

$1.5

million each to the parent companies of HighPeak I and HighPeak II of which

$2.2

million is included in general and administrative expenses in the accompanying results of operations for the

three

months ended

March 31, 2020.

Effective upon closing of the HighPeak business combination, the Management Company is

no

longer being paid by the Company as all costs directly attributable to the Company are paid by the Company going forward.