NYSE:HPR

Stock Analysis Report

HighPoint Resources

Executive Summary

HighPoint Resources Corporation, together with its subsidiaries, engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States.

Rewards

PE ratio (2x) is below the US market (18.9x)

Earnings are forecast to grow 32.18% per year

Became profitable this year

Risk Analysis

High level of non-cash earnings

Has a high level of debt

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Good value with reasonable growth potential.


Similar Companies

Share Price & News

How has HighPoint Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HPR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.8%

HPR

-3.9%

US Oil and Gas

-0.09%

US Market


1 Year Return

-54.7%

HPR

-8.6%

US Oil and Gas

23.9%

US Market

Return vs Industry: HPR underperformed the US Oil and Gas industry which returned -4.2% over the past year.

Return vs Market: HPR underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

HPRIndustryMarket
7 Day-5.8%-3.9%-0.09%
30 Day-24.3%-5.0%3.1%
90 Day19.1%-1.6%10.4%
1 Year-54.7%-54.7%-5.2%-8.6%26.6%23.9%
3 Year-81.4%-81.4%-11.6%-19.7%50.9%41.2%
5 Year-87.2%-87.2%-12.4%-25.1%78.1%58.5%

Price Volatility Vs. Market

How volatile is HighPoint Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is HighPoint Resources undervalued compared to its fair value and its price relative to the market?

2.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate HPR's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate HPR's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: HPR is good value based on its PE Ratio (2x) compared to the Oil and Gas industry average (10.2x).

PE vs Market: HPR is good value based on its PE Ratio (2x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: HPR is good value based on its PEG Ratio (0.1x)


Price to Book Ratio

PB vs Industry: HPR is good value based on its PB Ratio (0.2x) compared to the US Oil and Gas industry average (1x).


Next Steps

Future Growth

How is HighPoint Resources forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

36.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HPR's forecast earnings growth (32.2% per year) is above the savings rate (1.7%).

Earnings vs Market: HPR's earnings (32.2% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HPR's revenue (9.8% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: HPR's revenue (9.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HPR is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has HighPoint Resources performed over the past 5 years?

27.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HPR has a high level of non-cash earnings.

Growing Profit Margin: HPR became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: HPR has become profitable over the past 5 years, growing earnings by 27.8% per year.

Accelerating Growth: HPR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: HPR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-13.3%).


Return on Equity

High ROE: HPR's Return on Equity (12%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is HighPoint Resources's financial position?


Financial Position Analysis

Short Term Liabilities: HPR's short term assets ($119.8M) do not cover its short term liabilities ($185.6M).

Long Term Liabilities: HPR's short term assets ($119.8M) do not cover its long term liabilities ($948.5M).


Debt to Equity History and Analysis

Debt Level: HPR's debt to equity ratio (70.3%) is considered high.

Reducing Debt: HPR's debt to equity ratio has reduced from 88.2% to 70.3% over the past 5 years.

Debt Coverage: HPR's debt is well covered by operating cash flow (33.6%).

Interest Coverage: HPR's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet

Inventory Level: HPR has a high level of physical assets or inventory.

Debt Coverage by Assets: HPR's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is HighPoint Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage4.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate HPR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate HPR's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HPR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HPR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HPR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of HighPoint Resources's salary, the management and board of directors tenure and is there insider trading?

6.7yrs

Average management tenure


CEO

R. Woodall (57yo)

7yrs

Tenure

US$4,411,736

Compensation

Mr. R. Scot Woodall has been the Chief Executive Officer and President of Bill Barrett Corp. since January 2013. Mr. Woodall served as Chief Operating Officer of Bill Barrett Corp. since July 1, 2010 unti ...


CEO Compensation Analysis

Compensation vs Market: R.'s total compensation ($USD4.41M) is above average for companies of similar size in the US market ($USD1.08M).

Compensation vs Earnings: R.'s compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.7yrs

Average Tenure

57yo

Average Age

Experienced Management: HPR's management team is seasoned and experienced (6.7 years average tenure).


Board Age and Tenure

6.8yrs

Average Tenure

62.5yo

Average Age

Experienced Board: HPR's board of directors are considered experienced (6.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$23,00009 Aug 19
William Owens
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,000
Max PriceUS$1.15
BuyUS$11,70009 Aug 19
William Crawford
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares10,000
Max PriceUS$1.17
BuyUS$12,37512 Jun 19
William Crawford
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares7,500
Max PriceUS$1.65
BuyUS$13,42506 Jun 19
William Crawford
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares7,500
Max PriceUS$1.79
BuyUS$56,40004 Jun 19
Paul Geiger
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares30,000
Max PriceUS$1.89
BuyUS$19,20003 Jun 19
William Crawford
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares10,000
Max PriceUS$1.92
BuyUS$55,55030 May 19
Paul Geiger
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares29,000
Max PriceUS$1.95
BuyUS$28,20028 May 19
Kenneth Wonstolen
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares15,000
Max PriceUS$1.88
BuyUS$102,00023 May 19
Michael Starzer
EntityIndividual
Shares50,000
Max PriceUS$2.04
BuyUS$11,25016 May 19
Andrew Kidd
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$2.25

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 34.1%.


Management Team

  • R. Woodall (57yo)

    CEO, President & Director

    • Tenure: 7yrs
    • Compensation: US$4.41m
  • Terry Barrett (59yo)

    Senior Vice President of Geosciences

    • Tenure: 13.8yrs
    • Compensation: US$384.26k
  • William Crawford (51yo)

    Chief Financial Officer

    • Tenure: 1.7yrs
    • Compensation: US$1.54m
  • David Macosko (57yo)

    Senior VP of Accounting & Controller

    • Tenure: 9.9yrs
  • Larry Busnardo (50yo)

    Vice President of Investor Relations

    • Tenure: 2.7yrs
  • Michele Choka (59yo)

    Vice President of Human Resources

    • Tenure: 9.4yrs
  • Paul Geiger (47yo)

    Chief Operating Officer

    • Tenure: 1.5yrs
  • Ken Wonstolen (67yo)

    Senior VP

    • Tenure: 6.4yrs
    • Compensation: US$1.31m

Board Members

  • Craig Glick (59yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: US$102.00k
  • Mark Berg (60yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$176.00k
  • Mike Wiley (68yo)

    Independent Director

    • Tenure: 15yrs
    • Compensation: US$205.00k
  • Ed Segner (65yo)

    Independent Director

    • Tenure: 10.4yrs
    • Compensation: US$200.00k
  • Jim Mogg (70yo)

    Independent Chairman of the Board

    • Tenure: 7yrs
    • Compensation: US$265.00k
  • Randy Stein (65yo)

    Independent Director

    • Tenure: 15.5yrs
    • Compensation: US$215.00k
  • Andrew Kidd (56yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$176.00k
  • R. Woodall (57yo)

    CEO, President & Director

    • Tenure: 7yrs
    • Compensation: US$4.41m
  • Bill Owens (69yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: US$200.00k
  • Scott Gieselman (56yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: US$102.00k

Company Information

HighPoint Resources Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HighPoint Resources Corporation
  • Ticker: HPR
  • Exchange: NYSE
  • Founded:
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$276.006m
  • Shares outstanding: 210.69m
  • Website: https://www.hpres.com

Number of Employees


Location

  • HighPoint Resources Corporation
  • 1099 18th Street
  • Suite 2300
  • Denver
  • Colorado
  • 80202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HPRNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 2004
27ZBST (Boerse-Stuttgart)YesCommon StockDEEURDec 2004

Biography

HighPoint Resources Corporation, together with its subsidiaries, engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. It primarily holds interests in the Denver Julesburg Basin in Colorado's eastern plains and parts of southeastern Wyoming. The company is headquartered in Denver, Colorado. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/24 01:38
End of Day Share Price2020/01/23 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.