Predecessors for the Year Ended December 31, 2019

(in thousands)

HPK LP from

August 28, 2019

(Inception) through

December 31, 2019

HighPeak I

for the

Year

Ended

December

31, 2019

Eliminations

Combined

Year

Ended

December

31, 2019

Operating Revenues:

Crude oil sales

$

3,695

$

4,154

$

7,849

Natural gas and NGL sales

163

103

266

Total operating revenues

3,858

4,257

8,115

Operating Costs and Expenses:

Oil and natural gas production

1,578

1,794

3,372

Production and ad valorem taxes

188

261

449

Exploration and abandonments

33

2,817

2,850

Depletion, depreciation and amortization

1,612

2,657

4,269

Accretion of discount on asset retirement obligations

34

38

72

General and administrative

6,159

2,523

8,682

Total operating costs and expenses

9,604

10,090

19,694

Loss from operations

(5,746

)

(5,833

)

(11,579

)

Equity in losses of affiliate

-

(3,175

)

3,175

-

Net loss

$

(5,746

)

$

(9,008

)

$

3,175

$

(11,579

)

CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss

$

(5,746

)

$

(9,008

)

$

3,175

$

(11,579

)

Adjustments to reconcile net loss to net cash provided by (used in) operations:

Exploration and abandonment expense

33

2,817

-

2,850

Depletion, depreciation and amortization expense

1,612

2,657

-

4,269

Accretion expense

34

38

-

72

Equity in loss off affiliate

-

3,175

(3,175

)

-

Changes in operating assets and liabilities:

Accounts receivable

(1,355

)

1,425

-

70

Inventory and other current assets

(88

)

(121

)

-

(209

)

Accounts payable and accrued liabilities

3,010

745

-

3,755

Net cash provided by (used in) operating activities

(2,500

)

1,728

-

(772

)

CASH FLOWS FROM INVESTING ACTIVITIES:

Additions to oil and natural gas properties

(45,318

)

(15,687

)

-

(61,005

)

Changes in working capital associated with oil and natural gas property additions

19,097

5,585

-

24,682

Acquisitions of oil and natural gas properties

(2,456

)

(8,462

)

-

(10,918

)

Investment in affiliate

-

(7,796

)

7,796

-

Issuance of notes receivable

(4,193

)

-

(4,193

)

Net cash used in investing activities

(32,870

)

(26,360

)

7,796

(51,434

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Contributions from partners

58,081

23,738

(7,796

)

74,023

Net cash provided by financing activities

58,081

23,738

(7,796

)

74,023

Net increase (decrease) in cash and cash equivalents

22,711

(894

)

-

21,817

Cash and cash equivalents, beginning of period

-

894

-

894

Cash and cash equivalents, end of period

$

22,711

$

-

$

-

$

22,711