 Reported production sales volume of 2.9 million barrels of oil equivalent MMBoe for the second quarter of 2020, exceeding the high end of guidance by 12 driven by well performance, timing of completions and minimal downtime Oil production sales volume of 1.6 million barrels of oil MMBbls for the second quarter of 2020; 57 of total equivalent production sales volume exceeding the high end of guidance by 11 Second quarter of 2020 capital expenditures of 25 million were 38 below guidance Second quarter of 2020 controllable operating costs1 were 9.13 per Boe. Excluding non-recurring severance and other costs of 1.36 per Boe, controllable operating costs were 12 lower than the first quarter of 2020 High fluid intensity completions continue to positively impact well performance at Hereford and NE Wattenberg; 2020 development wells are the highest performing to date Anticipate generating positive free cash flow in the second half of the year, which will be used to further improve net debt and liquidity Strong hedge position bolsters a significant portion of 2020 and 2021 cash flow against fluctuations in crude priceDENVER, Aug. 03, 2020 GLOBE NEWSWIRE -- HighPoint Resources Corporation we, us, the Company or HighPoint NYSE: HPR today reported second quarter of 2020 financial and operating results, including total production and oil volumes above guidance and capital expenditures below guidance.For the second quarter of 2020, the Company reported a net loss of 68 million, or 0.32 per diluted share. Adjusted net income for the second quarter of 2020 was 8 million, or 0.04 per diluted share. EBITDAX for the second quarter of 2020 was 54 million. Excluding non-recurring employee severance and other costs of approximately 4 million, reported EBITDAX would have been approximately 58 million. Adjusted net income loss and EBITDAX are non-GAAP Generally Accepted Accounting Principles measures. Reconciliations of non-GAAP measures, including adjusted net income and EBITDAX to GAAP net income can be found in the tables at the end of this release.Chief Executive Officer and President Scot Woodall commented, The second quarter was dominated by the COVID-19 pandemic, its impact on global and macro markets and the associated effect on oil prices. The health and safety of our employees and the communities in which we operate remains our top priority. Im proud of our employees professionalism, hard work and dedication in quickly adapting to what has become a new operating environment. Our strong second quarter results demonstrate our ability to execute as we exceeded our objectives despite the many macro challenges that the industry faced. In addition, we took decisive steps in response to lower oil prices by suspending drilling and completion activity and implementing cost saving initiatives to better align our corporate cost structure to the current operating environment. As we plan for the second half of the year, we continue to monitor current and future crude oil prices along with a broader macroeconomic recovery to determine the appropriate time to resume activity. We maintain an inventory of DUCs that positions us to quickly resume completion activity when warranted. We expect to generate positive free cash flow in the second half of the year that will allow us to further improve net debt and liquidity from current levels. Our hedge position continues to bolster cash flows and provides some near-term revenue protection from the impact of low oil prices.1 Controllable operating costs include lease operating expense, GA expense, and gathering, transportation and processing expenseOPERATING AND FINANCIAL RESULTSThe following table summarizes certain operating and financial results for the second quarter of 2020 and 2019 and for the first quarter of 2020: Three Months Ended June 30, Three Months Ended March 31, 2020 2019 Change 2020 Change Combined production sales volumes MBoe2,871 2,841 1 2,908 1 Net cash provided by used in operating activities millions16.5 20.9 nm 76.8 nm Discretionary cash flow millions 140.8 57.5 29 67.5 40 Combined realized prices with hedging per Boe 229.23 37.48 22 37.28 22 Net income loss millions67.6 1.9 nm 1,015.6 nm Per share, basic0.32 0.01 nm 4.81 nm Per share, diluted0.32 0.01 nm 4.81 nm Adjusted net income loss millions 18.2 15.0 nm 7.0 nm Per share, basic0.04 0.07 nm 0.03 nm Per share, diluted0.04 0.07 nm 0.03 nm Weighted average shares outstanding, basic in thousands211,895 210,377 1 211,112 Weighted average shares outstanding, diluted in thousands 1211,895 210,377 1 211,112 EBITDAX millions 154.3 71.1 24 81.5 33 Not meaningful. 1 Discretionary cash flow, adjusted net income loss and EBITDAX are non-GAAP measures. Please reference the reconciliations to GAAP financial statements at the end of this release. 2 Includes 8.3 million or 2.87 per Boe of oil hedge income for the three months ended March 31, 2020 associated with monetizing certain future oil hedge contracts.The Company reported oil, natural gas and natural gas liquids NGL production of 2.9 MMBoe for the second quarter of 2020, which exceeded the high end of the guidance range of 2.5-2.6 MMBoe. Oil volumes totaled 1.6 MMBbls, which exceeded the high end of the guidance range of 1.4-1.5 MMBbls. The outperformance relative to guidance was primarily due to a combination of well performance, timing of completions and minimal downtime.Production sales volumes for the second quarter were comprised of approximately 57 oil, 23 natural gas and 20 NGLs.For the second quarter of 2020, West Texas Intermediate WTI oil prices averaged 27.85 per barrel, Northwest Pipeline NWPL natural gas prices averaged 1.47 per MMBtu and NYMEX natural gas prices averaged 1.71 per MMBtu. Commodity price realizations to benchmark pricing were WTI less 5.30 per barrel of oil and NWPL less 0.67 per Mcf of gas. The NGL price averaged approximately 16 of the WTI price per barrel.For the second quarter of 2020, the Company had derivative commodity swaps in place for 14,000 barrels of oil per day tied to WTI pricing at 59.43 per barrel, 11,703 MMBtu of natural gas per day tied to a NWPL regional pricing of 1.82 per MMBtu and no hedges in place for NGLs. Three Months Ended June 30, Three Months Ended March 31, 2020 2019 Change 2020 Change Average Realized Prices before Hedging: Oil per Bbl22.74 55.46 59 42.69 47 Natural gas per Mcf0.80 1.58 49 1.31 39 NGLs per Bbl5.07 9.81 48 10.32 51 Combined per Boe15.08 37.83 60 27.36 45 Average Realized Prices with Hedging: Oil per Bbl 147.33 54.88 14 60.87 22 Natural gas per Mcf0.88 1.59 45 1.31 33 NGLs per Bbl5.07 9.81 48 10.32 51 Combined per Boe 129.23 37.48 22 37.28 22 1 Includes 8.3 million or 5.26 per Bbl and 2.87 per Boe of oil hedge income for the three months ended March 31, 2020 associated with amending certain oil hedge contracts to terminate future hedged volumes.Lease operating expense LOE averaged 3.16 per Boe in the second quarter of 2020 compared to 3.81 per Boe in the first quarter of 2020. Second quarter LOE was lower compared to the first quarter of 2020 as a result of a reduction in water handling and disposal costs and other operational efficiencies.Production tax expense averaged 0.50 per Boe in the second quarter of 2020 compared to 0.86 per Boe in the first quarter of 2020. Production taxes for the first quarter of 2020 included an annual true-up of Colorado ad valorem tax based on actual assessments and production taxes for the second quarter of 2020 included severance tax refunds of 1.8 million for the tax period of 2015 to 2017. Excluding the severance tax refunds, production taxes as a percentage of revenues were 7.5. Production tax expense is expected to average approximately 7-8 of revenues for the remainder of 2020.General and administrative expense GA averaged 4.49 per Boe in the second quarter of 2020 compared to 3.51 per Boe in the first quarter of 2020. Second quarter GA was higher compared to the first quarter of 2020 as a result of non-recurring costs of approximately 4 million, which were primarily associated with a workforce reduction that was completed in May to align the Companys cost structure to the current operating environment. Excluding the non-recurring costs, second quarter of 2020 GA was 3.13 per Boe or 11 lower than the first quarter of 2020. Three Months Ended June 30, Three Months Ended March 31, 2020 2019 Change 2020 Change Average Costs per Boe: Lease operating expenses3.16 3.79 17 3.81 17 Gathering, transportation and processing expense GTP 11.48 0.61 143 1.52 3 Production tax expense0.50 3.13 84 0.86 nm Depreciation, depletion and amortization8.68 25.56 66 25.77 66 General and administrative expense 24.49 4.37 3 3.51 28 Not meaningful. 1 The increase in GTP per Boe for the three months ended June 30, 2020 compared to the three months ended June 30, 2019 was due to an increase in our production mix from the Hereford Field under the existing contractual arrangement with a primary term through April 2027. 2 Includes long-term cash and equity incentive compensation of 0.54 per Boe and 0.81 per Boe for the three months ended June 30, 2020 and 2019, respectively, and 0.16 per Boe for the three months ended March 31, 2020. 