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Priority Power Announces Agreements with HighPeak Energy to Partner on Electrification and Renewable Energy Projects

By: via Business Wire

Partnership Supports HighPeak Energy’s Commitment to ESG

Priority Power Management, LLC (“Priority Power”), an independent energy services provider offering smart energy solutions and streamlined transitions to carbon neutrality, announced that it has entered into agreements with HighPeak Energy, Inc. (“HighPeak”) (NASDAQ: HPK), an independent oil and natural gas company engaged in the acquisition, development, and production of oil, natural gas, and NGL reserves, to electrify and power HighPeak’s drilling and operations partially with renewable solar powered energy.

Priority Power will develop an electric high-voltage (“EHV”) substation, medium voltage distribution systems and a 13-megawatt direct current solar photovoltaic facility located on 80 acres of HighPeak’s owned surfaceland north of Big Spring, Texas in Howard County, collectively the “Project Facility,” to provide HighPeak’s electrical power needs for its drilling activity and operations in its Flat Top area. The EHV substation will be interconnected with the ERCOT transmission grid via the local electric utility, have an initial capacity of up to 50 MVA and be designed for future expansion capability. The solar generation facility will be interconnected with HighPeak’s medium voltage distribution system that is energized from the new EHV substation, behind the utility meter.

Priority Power will develop, finance, engineer, construct, operate, and maintain the Project Facility. Priority Power will integrate and manage HighPeak’s existing and future electricity supply agreements with the solar powered energy generated from the solar generation facility.

Over the life of the contract, approximately 263 million kilowatt-hours of clean and reliable solar energy will be delivered to HighPeak, resulting in an estimated reduction of over 100,000 metric tons of CO2 emissions according to the Environmental Protection Agency (EPA).

Priority Power’s solution will provide HighPeak with a reliable and resilient private electrical network with no upfront capital, reduced operating cost, increased operational flexibility and a reduction of Greenhouse Gas emissions for an initial term of 10-years.

“In less than a year since the consummation of our business combination, we’ve proven our commitment to our ESG goals by dramatically reducing our operational truck traffic, flaring, and overall carbon footprint,” said Jack Hightower, Chief Executive Officer of HighPeak. “And we’re not stopping there; we have more efforts underway in 2021 and beyond, and this project with Priority Power will be a milestone for us in how we approach sustainability over the next decade.”

“Priority Power’s ability to develop, operate and maintain the substation, distribution and solar generation facility enables HighPeak to focus its resources on its core business processes of developing its oil and gas assets,” said John Bick, Chief Commercial Officer of Priority Power. “The impact to the environment and the increasingly favorable economics are the real rewards that await E&P companies like HighPeak who incorporate integrated electrification and solar power into their energy strategies. We recognize that HighPeak, like all of our customers, requires a specific and customized solution, which we are extremely proud to offer.”

About Priority Power Management, LLC

Priority Power is an independent energy solutions provider focused on energy infrastructure, energy transition program management, market intelligence operations, and energy structuring. Priority Power serves over 6,700 clients, totaling $2.7 billion in energy spend and 94 TWh of electricity managed across 31 states, including one-third of Texas’ Top 100 independent oil and gas producers and leading midstream and long-haul pipeline companies. Priority Power seeks to prioritize energy efficiency and leverage its engineering, procurement, construction, and market expertise to aid in decarbonization of the industrial economy. Additionally, through three separate Network Operations and Real Time Operations Centers, Priority Power operates and maintains several hundred privately-owned HV/MV transmission, substation, and distribution assets on behalf of its customer base. For more information on Priority Power, please visit www.prioritypower.com.

About HighPeak Energy, Inc.

HighPeak Energy is a publicly traded independent oil and natural gas company, headquartered in Fort Worth, Texas, focused on the acquisition, development, exploration and exploitation of oil and natural gas reserves in the Midland Basin in West Texas. For more information, please visit www.highpeakenergy.com.

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