Investor Presentation Johnson Rice Energy Conference New Orleans, LA September 22, 2016 1
Investment Highlights Presence in the most prolific, domestic oil-bearing shale plays Diversified Shale Play Exposure Eagle Ford, Midland Basin and Bakken / Three Forks with Growing Inventory Growth through drill bit and significant…
Track Record Management team has consistently created shareholder value Repeated success with multiple entities over 20+ years 2005 2007 Southern Bay Energy, LLC Results have created long-term and recurring shareholders (Private)…
Management Strong management and technical team with demonstrated ability and prior success Equity investorsinterests are clearly aligned with shareholders Years Years of Working Responsibility Experience Together Frank Lodzinski…
Earthstone A Platform for Steady Growth Since December 2014, Earthstone has evolved from a micro cap, non-op Bakken / Three Forks company to a small cap, multi-basin operator with additional exposure to the Eagle Ford and Midland…
Company Overview The Woodlands, Texas based E&P company focused on domestic exploration and production of oil and natural gas with current Asset Location operations primarily in the Eagle Ford trend, Midland Basin and Bakken / Bakken…
Key Areas Midland Basin Eagle Ford 1P Reserves (MMBoe) 5.3 1P Reserves (MMBoe) 9.5 % PD 79% % PD 66% % Oil 54% % Oil 76% PV10 (mm) 41.5 PV10 (mm) 78.9 Net Production (Boepd) 1,150 Net Production (Boepd) 2,475 Gross Producing Wells 130…
Near-Term Capital Plans Three primary areas of capital deployment over the near-term Average Well Well Count 30-day IP Net Capex IRR Project Gross Net % Oil (Gross Boepd) (mm) (%) Timing Eagle Ford Activity D&C - 29% 1 17 7.8…
Near-Term Capital Plans Impact on Production 2016 Exit Rate is expected to be over 6,000 Boepd Fully executed plans should result in a 40% increase in production PDP Eagle Ford Activity Midland Basin Activity Bakken / Three Forks…
Capital Plans Next 12 Months Eagle Ford Activity 1 Complete 12 Gross Well Eagle Ford DUC Inventory 4 Gross Wells in Karnes County, Texas 8 Gross Wells in Fayette County, Texas Previously drilled in December 2015 Previously drilled in…
Capital Plans Next 12 Months Midland Basin & Bakken / Three Forks Activity 2 Drill and Complete 1 Gross Horizontal Wolfcamp Well Howard County, Texas Midland Basin Peak Month Tubb A 1HA permitted and planned for Q3 2016 (Boepd)…
Asset Overview 13
Eagle Ford Asset Overview Gonzales, Fayette and Karnes Counties, Texas Operated Fayette, Gonzales, and Karnes Counties 38,000 gross / 18,600 net leasehold acres Working interests range from 33% to 50% 60% held-by-production 64…
Eagle Ford Drilling Cost Improvements Since September 2014, drilling costs have decreased over 50% from 606 per foot of lateral to 287 per foot Normalized for drilling a 7,000 foot lateral: In 2014, the Company incurred 4.2mm of…
Eagle Ford Drilling Performance Days vs Depth 0 Unit Average Comparison Fayette / Gonzales County Earthstone Operating 2000 Days vs. Depth Run Surface Casing 4000 Non X Rig Wells Newtonville North Unit OV 6000 Matthews…
Eagle Ford Completion Cost Improvements Since November 2014, completion costs have decreased 40% from 162,500 per stage to 97,300 per stage In late 2014, the Company incurred 3.9mm to frac 24 stages Currently, the Company would…
Midland Basin Asset Overview Glasscock, Howard, Martin and Gross Net Interest Net Midland Counties, Texas County Acres (%) Acres 1,757 43.750 769 Martin 1,127 20.000 225 Midland 640 43.750 280 Glasscock 4,480 43.750 1,960 6,121…
Midland Basin Howard County 5 6,761 gross / 2,649 net acres prospective for the Wolfcamp 6 4 Leasehold interest of 25% to 41% First horizontal well planned for August 2016 1 2 Increasing horizontal well activity by other…
Midland Basin Glasscock County 4,480 gross / 1,960 net acres prospective for the Wolfcamp Leasehold interest of 44% Earthstones first two horizontal Wolfcamp wells in Glasscock 3 2 County were drilled during June and July 2015…
Bakken / Three Forks Asset Overview Primary assets are located in 5,900 net core acres predominantly in McKenzie and Dunn McKenzie County, North Dakota Counties of North Dakota that are prospective for the Bakken / Three Forks…
Asset Summary 12/31/15 SEC Pricing Proved Reserves by Category Proved Reserves by Commodity 17.9 MMBoe 17.9 MMBoe PDNP 15% Gas PDP Oil 19% 57% 68% PUD 28% NGL 13% PV-10 by Category Net Production by Commodity 145.9mm…
Financial Overview 23
Earthstone Acquires Lynden Transaction Summary Closed on May 18, 2016 3.7mm ESTE shares issued to Lynden Energy Corp. (LVL) stockholders NYSE MKT: ESTE TSX Ventures: LVL.V / OTC Pink: LVLEF 12.6 MMBoe 5.3 MMBoe 82% Liquids / 68%…
Oak Valley Resources, LLC owns 41% of Earthstone. Oak Valleys investors include: Earthstone Management EnCap Investments L.P. Significant equity investors Leading provider of private equity to the independent E&P sector CEO has over 40…
2016 Capital Expenditure Budget Current Budget Capex by Project Area Gross / Net Well Count Drilling and Completion mm Drilled Completed 18% Operated Eagle Ford 24.5 5 / 2.5 12 / 5.3 63% Non-Operated Bakken 7.0 10 / 0.4 35 / 1.4…
Capital Structure and Liquidity Capitalization (mm) 6/30/2016 Cash and Equivalents 18.9 Revolver Outstandings 10.0 Other Debt 5.0 Total Debt 15.0 Total Shareholders' Equity 275.7 Total Capitalization 290.7 Liquidity…
Hedging Summary Oil Production Hedged (Bbls) Swap Positions Period Oil / Gas Quantity Fixed Price Oil BBls/mo Gas MMBtu/mo Q3 2016 Oil 45,000 49.35 Q4 2016 Oil 45,000 49.35 270,000 270,000 FY 2017 Oil 22,500 47.87 120,000 2016…
Analyst Coverage Firm Analyst Daniel Katzenberg / (646) 5573209 Robert W. Baird & Co. dkatzenbergrwbaird.com Steve Berman / (212) 8493944 Canaccord Genuity sbermancanaccordgenuity.com Joel Musante, CFA / (800) 7277922 ext: 144…
Contact Information Frank Lodzinski President and CEO Robert Anderson EVP, Corporate Development and Engineering Neil Cohen VP, Finance, and Treasurer Corporate Headquarters Houston 1400 Woodloch Forest Drive Suite 300…
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