Indonesia’s sovereign wealth fund Danantara and upstream oil & gas company Energi Mega Persada (EMP), part of the Bakrie Group, have committed a combined $450 million to US oil producer HighPeak Energy as part of a broader refinancing that will replace the company’s existing debt.
HighPeak disclosed the transaction in a Form 8-K filed with the US Securities and Exchange Commission (SEC) on Tuesday (Oct. 6).
PT Danantara Energy International (DEI), an arm of PT Danantara Investment Management (DIM), will purchase $250 million worth of preferred shares, while PT Tunas Harapan Perkasa (THP), a subsidiary of EMP, will invest $200 million.
Each entity will subscribe to 450,000 newly issued Series A 6% Perpetual Convertible Preferred Shares, with each share priced at $1,000 apiece.
The preferred equity investment forms part of a broader refinancing package that includes a new $800 million reserve-based credit facility from Citibank and Fifth Third Bank.
Available cash, the proceeds from the investment and initial borrowings under the new facility are expected to help HighPeak to fully repay its existing $1.17 billion term loan.
The transaction is expected to close in the fourth quarter of 2026, subject to customary closing conditions.
The preferred shares have no maturity date and carry cumulative cash dividends payable quarterly. The dividend rate is 6% per year if paid in cash during the first two years, rising to 7.5% between the second and fifth years and 10% from the fifth year onward. Each share can be converted into HighPeak common stock at an initial conversion price of $9.50.
HighPeak can redeem the preferred shares from the third anniversary of the closing at a price that would result in a 10% internal rate of return. The shares can also be mandatorily converted at HighPeak’s option after the third anniversary if its common stock trades above 150% of the conversion price for 30 out of 40 consecutive trading days.
DIM and EMP will each have the right to nominate one individual to HighPeak’s board. The agreements also include two-year restrictions on transfers of the preferred shares and a standstill arrangement.
HighPeak is an independent oil and gas producer headquartered in Fort Worth, Texas, focused on developing unconventional crude oil and natural gas reserves in the Midland Basin in West Texas.
The company said the transaction gives the Indonesian investors exposure to its Midland Basin assets, including its acreage, drilling inventory, and infrastructure.
The transaction gives the Indonesian investors exposure to HighPeak’s Midland Basin assets in Texas.
HighPeak plans to use the proceeds to strengthen its balance sheet and support development of its Permian Basin assets, including its drilling programme.
HighPeak president and CEO Michael Hollis said the refinancing would also improve HighPeak’s liquidity and reduce its annual interest expense. “We expect that this transaction will improve our liquidity profile, materially reduce our annual interest expense, and provide us with greater financial flexibility to focus on disciplined development, free cash flow generation and continued shareholder value creation,” he said in a statement on Tuesday.
“We are particularly pleased to welcome our new capital investors, DIM and EMP, who share our long-term vision for the Company and support the direction and priorities we have established going forward. We also appreciate the support of Citibank and Fifth Third in committing to arrange and underwrite our new credit facility. These relationships provide an important foundation for future strategic collaboration as we look ahead to executing our business strategy from a stronger financial position,” Hollis added.
Pandu Sjahrir, CEO of Danantara Investment Management, said the investment could facilitate technical knowledge transfer between the US and Indonesia. “We hope this cooperation can facilitate knowledge transfer that supports the development of Indonesia’s energy sector, while also strengthening the longstanding energy and economic ties between Indonesia and the US,” Sjahrir said.
The Permian Basin accounted for 48% of US crude oil production in 2025, according to the US Energy Information Administration. Danantara said the investment could provide Indonesia with access to technical expertise from the US upstream oil and gas industry.
Following completion of the transaction, HighPeak plans to establish training and secondment programmes for Indonesian workers, according to a separate statement from Danantara.
Danantara said DIM will receive downside protection on its investment while retaining potential upside through conversion of the preferred shares into common stock.
The transaction remains subject to applicable requirements and closing conditions. HighPeak also said there is no assurance that the investment, new credit facility or refinancing will be completed as currently contemplated.
Vinson & Elkins is acting as legal counsel to HighPeak, while Milbank is advising the investors. Barclays is financial adviser to DIM and Citigroup Global Markets Singapore is financial adviser to EMP. Bracewell is advising Citibank.
