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HPK customer relationships

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HighPeak Energy (HPK) — Customer Relationships and Commercial Footprint

HighPeak Energy operates as an upstream oil and gas producer in the Midland Basin, monetizing through the sale of crude oil, NGL and natural gas produced from its Permian assets. The company sells production under a mix of long‑term marketed contracts with minimum volume commitments and spot/short‑term sales, and supplements cash flow management with standard commodity hedges. For investors, the combined effect is a high‑leverage operating profile: production growth and realized commodity prices drive revenue, while a concentrated buyer base and a large minimum‑take commitment create asymmetric commercial risk and cash‑flow visibility. For a deeper relationship map, visit https://nullexposure.com/.

What the customer roster looks like in one line

HighPeak relies primarily on two purchasers that together accounted for roughly 94% of revenue in FY2024, driving both revenue concentration risk and predictability of lift and throughput under pipeline/gathering arrangements.

The customer list — every relationship disclosed in the FY2024 filing

Delek / DK Trading & Supply, LLC

Delek is the company’s largest purchaser. HighPeak reported that Delek accounted for approximately 76% of revenues in 2024 (82% in 2023 and 88% in 2022) and in September 2024 HighPeak amended and restated its crude‑oil marketing contract with DK Trading & Supply, LLC (Delek) as purchaser. According to HighPeak’s FY2024 Form 10‑K, this contract includes a twelve‑year primary term and a minimum volume commitment beginning May 2024. (Source: HighPeak Energy FY2024 10‑K, Note 12 and contracts disclosure.)

DK Trading & Supply, LLC (Delek trading arm)

The filing lists DK Trading & Supply, LLC explicitly as the purchaser under the marketing agreement; historical line items show DK/Delek captured 76–82% of sales in recent years, reflecting that the trading arm is effectively HighPeak’s primary buyer for crude. This is the same commercial counterparty referenced in the Delek disclosure above. (Source: HighPeak Energy FY2024 10‑K, Major Customers table and marketing agreement note.)

Energy Transfer Crude Marketing, LLC (ETC)

Energy Transfer Crude Marketing accounted for about 18% of HighPeak’s revenues in 2024 (14% in 2023), making it the company’s second largest purchaser. HighPeak’s FY2024 10‑K identifies ETC as a meaningful counterparty for remaining crude sales alongside the Delek agreement. (Source: HighPeak Energy FY2024 10‑K, Note 12: Major Customers.)

ETC (listed with inferred symbol ETCC) — contract particulars

HighPeak states that the majority of remaining crude oil sales are sold to ETC under a contract similar to the primary marketing agreement but without a minimum volume commitment, meaning ETC provides a material outlet for incremental volumes without the same take‑or‑pay exposure. (Source: HighPeak Energy FY2024 10‑K; marketing contract descriptions.)

(Each of the above entries is taken directly from HighPeak Energy’s FY2024 Form 10‑K disclosures on major customers and marketing agreements.)

How these relationships shape the operating model

  • Contracting posture: HighPeak’s commercial base combines a long‑term fixed primary term contract with Delek (twelve years with evergreen option) that includes a significant minimum volume commitment, plus other marketing contracts and spot sales. This structure creates a predictable sales outlet for a substantial portion of production while locking the company into minimum throughput economics. (Source: FY2024 10‑K marketing agreement excerpts.)
  • Concentration and criticality: Two purchasers generated roughly 94% of FY2024 revenue, a concentration that is material to critical — loss or nonperformance by either counterparty would have an immediate impact on cash flow and working capital. HighPeak discloses this concentration explicitly in its major‑customers note. (Source: FY2024 10‑K, Note 12.)
  • Maturity and finance implications: The Delek contract’s minimum‑volume commitment is quantified (~$138.7 million total commitment with ~$130.3 million remaining as of Dec 31, 2024), creating a multi‑year financial exposure that underpins the company’s lift obligations and supports bank covenant planning but also constitutes a large committed cash‑flow liability if production under‑delivers. (Source: FY2024 10‑K, contract commitment disclosure.)
  • Commercial mix and price exposure: HighPeak blends spot/short‑term sales and indexed contracts tied to NYMEX/Argus WTI Midland alongside their marketing agreements, and uses hedges (swaps, collars, puts) to stabilize cash flows against commodity price volatility. This combination gives partial price protection while maintaining upside to market improvements. (Source: FY2024 10‑K, Revenue and Risk Management sections.)
  • Geographic focus: All revenue and operations are domestically concentrated in the U.S. (Midland Basin, Permian), reducing cross‑border counterparty complexity but concentrating regulatory and market risk on U.S. energy policy and regional differentials. (Source: FY2024 10‑K, Business and Geography disclosures.)

Explore the commercial map and tail risk analytics at https://nullexposure.com/ for investors who want transaction‑level visibility.

Financial and strategic implications for investors

  • Predictability vs. concentration: The Delek minimum‑volume commitment creates cash‑flow predictability that supports capital planning and debt servicing, but the same commitment concentrates counterparty risk and tactical exposure to regional midstream constraints. (Source: FY2024 10‑K.)
  • Contractual leverage: With a multi‑year fixed primary term plus an evergreen option, HighPeak has longer contract life than a pure spot producer, which helps amortize drilling capex but reduces flexibility if regional price differentials or regulatory costs shift unfavorably. (Source: FY2024 10‑K contract excerpts.)
  • Risk mitigants and exposures: The company’s use of hedges and the fungibility of hydrocarbons partially mitigate credit and market risk; however, HighPeak itself acknowledges that credit concentration in receivables is a principal exposure. Investors should underwrite both counterparty credit and production/takeup execution risk when modeling downside scenarios. (Source: FY2024 10‑K, Risk Factors / Credit Concentration.)

If you're modeling revenue sensitivity or counterparty credit exposure, review the primary contract excerpts and cash‑flow implications available at https://nullexposure.com/.

Bottom line and recommended diligence

HighPeak’s commercial setup provides meaningful revenue visibility through Delek’s long‑term commitment while preserving upside via other purchasers like ETC and spot sales. That structure is attractive for predictable cash flow but creates a single‑counterparty concentration risk and a substantive committed monetary exposure in the low hundreds of millions. Investors should underwrite the durability of the Delek contract, regional takeaway capacity, and counterparty credit when assessing valuation or covenant stress tests. For immediate access to the underlying filings and a curated relationship view, go to https://nullexposure.com/.