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  Economics : Rates of Return/ IRR

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Howard County Oil Productivity Drives Returns 100% 80% ROR1 (%) 60% 40% 8,594 net acres 20% LPI Leasehold 0% 35 40 45 50 WTI (/Bbl) LPI Howard County Budget Howard County Budget Cumulative Oil Production Compared to Established Acreage 250 Production (MBO) Cumulative Oil 200 150 100 50 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Months LPI Howard County Budget LPI Established Acreage Regional Cline Oil Type Curve LPI Established Acreage UWC/MWC Oil Type Curve Expect to complete first 15-well package in Howard County during 4Q-20 1 Returns are based on 5.5 MM well costs; applicable natural gas strip pricing details can be found in the Appendix 6 Note: Map as of 06-30-20
Laredo Petroleum Inc.
September 2020

Wolfcamp A: CGA Type Curve 10,000 Wolfcamp A Key Points Cum Oil Production Normalized to 10,000 (Bo) Wolfcamp A type curve wells selected from 250,000 geologically similar region Oil Type Curve HighPeak has directly analogous landing zones and oil in place to highly developed parts of the play 200,000 Type curve: 12-mo cum.: 178 MBbl / 203 MBoe EUR: 825 MBbl / 969 MBoe 150,000 Wolfcamp A OOIP (MMBo/Section) 100,000 50,000 0 0 2 4 6 8 10 12 Month Single Well Return Sensitivities (1) Single Well IRR (%): DCE&F Costs vs. Price Deck Payback PeriodSingle (Yrs): DCE&F Costs Well IRR (%): vs. PriceCosts DCE&F Deckvs. Price Deck DCE&F Costs (MM) DCE&F Costs (MM) 4.75 5.25 5.75 4.75 5.25 5.75 35 / Bbl 59% 49% 40% 35 / Bbl 1.3 Yrs 1.5 Yrs 1.8 Yrs Price Deck Price Deck 40 / Bbl 81% 67% 56% 40 / Bbl 1.0 Yrs 1.2 Yrs 1.3 Yrs 50 / Bbl 132% 110% 93% 50 / Bbl 0.8 Yrs 0.8 Yrs 0.9 Yrs Type Curve Well Note: YE19 CGA Wolfcamp A PUD type curve (10,000 LL) utilizes peak oil rate of 825 Bo/d (month 4), b = 1.2, dmin = 6% and assumes 6 wells per section. (1) Assumes 2.50 / MMBtu (gas) in all cases. Payback period calculated from first production. 19
HighPeak Energy
May 2020

Midland Basin Type Curve Summary Generating attractive returns across the acreage position 2020 drilling program only in Upton County Type curves take into account impact from parent/child and co-development Midland County (1) Upton County (1) Reagan County (1) 500,000 500,000 500,000 400,000 400,000 2-Stream BOE Normalized to 10,000' 400,000 2-Stream BOE Normalized to 10,000' 2-Stream BOE Normalized to 10,000' 300,000 300,000 300,000 200,000 200,000 200,000 100,000 100,000 100,000 0 0 0 0 100 200 300 400 500 600 700 800 0 100 200 300 400 500 600 700 800 0 100 200 300 400 500 600 700 800 Days on Production Normalized to Time Zero Days on Production Normalized to Time Zero Days on Production Normalized to Time Zero Midland County - Actuals (11 ESTE Operated Wells, 2016+) Upton County - Actuals (5 ESTE Operated Wells, 2016+) Reagan County - Actuals (36 ESTE Operated Wells, 2016+) Midland County - Type Curve Upton County - Type Curve Reagan County - Type Curve Type Curve Summary (100% WI / 75% NRI) (2) Lat. Length DC & E 3-Stream EUR Oil Gas NGL IRR IRR Type Curve Area (ft) (M) (Mboe) (%) (%) (%) 50/2.00 60/2.00 Midland 10,000 8,000 1,170 64% 15% 21% 57% 89% Upton 10,000 8,000 930 60% 16% 24% 40% 64% Reagan 10,000 7,500 1,170 42% 24% 35% 30% 47% (1) Cumulative 2-stream BOE normalized to 10,000 feet. Reflects average cumulative production of operated wells completed in 2016-2019 (2) Single well rates of return assumes 3-stream economics on flat price deck of Oil - 50.00 and 60.00/Bbl, Gas - 2.00/Mcf before deductions for transportation, gathering, and quality differential. Assumes NGL differential realizations to be 25% of WTI. Assumes three months from spud to first production 16
Earthstone Energy Inc.
March 2020

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