Investor Presentation IPAA Oil and Gas Investment Symposium New York, NY April 4, 2017 1
Investment Highlights Presence in the most prolific, domestic oil-bearing shale plays Diversified Shale Play Exposure Midland Basin, Eagle Ford, and Bakken / Three Forks with Growing Inventory Actively growing in the Midland Basin via…
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 meaningful exposure to the Midland Basin and Eagle…
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 Midland Basin, Eagle Ford trend, and Bakken /…
Key Areas Earthstone and Bold Combined Midland Basin1 Eagle Ford 1P Reserves (MMBoe) 51.5 1P Reserves (MMBoe) 11.0 % PD 20% % PD 46% % Oil 61% % Oil 69% PV10 (mm) 402.0 PV10 (mm) 97.1 Jan 2017 Net Production (Boepd)2 6,016 Jan 2017 Net…
Combination with Bold Energy Transformational Transaction in the Midland Basin 10
Bold Provides a Strategic Operated Position in the Midland Basin Operated Position in Core Midland Basin Acreage Legend Earthstone 85% working interest in 20,900 net acres Bold MARTIN HOWARD January 2017 Net Production of 4,670…
Significant Oil in Place Across the Position Reagan County Wolfcamp Wolfcamp A Wolfcamp B Thickest Wolfcamp shale section in Midland Basin; greatest oil in place Bold current Reagan/Upton inventory 1 Wolfcamp A target 2 Wolfcamp B…
High Quality Pay Across Multiple Zones Reagan County Type Section Reagan Co. Resource Greater than Midland Co. North Midland Central Reagan Dean Dean Wolfcamp A Wolfcamp A Wolfcamp Wolfcamp B Wolfcamp A Upper B Thickness…
Well Performance Update Reagan and Upton counties significantly outperforming initial projections All areas and target horizons generating attractive returns at current strip Completion evolution continuing and leading to enhanced…
Reagan County Gen 4 Completion Drives Improved Performance REAGAN COUNTY GEN 4 vs GEN 3 Rate vs Time Normalized to 7,500 2500 GEN 4 UPPER B (CENTRAL REAGAN) GEN 3 UPPER B (CENTRAL REAGAN) 2000 GEN 4 WFMP A (CENTRAL REAGAN) GEN…
Earthstone Asset Overview 17
Midland Basin Non-Op 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…
Howard County Wolfcamp A Well Performance (Tubb A 1HA) Well Statistics 9,366 lateral, 66 stages 2,000 lbs/ft of proppant 2stream cumulative production = 111,000 Boe after 101 days Installed ESP after flowing for 43 days 200,000…
Eagle Ford Asset Overview Karnes, Gonzales, and Fayette Counties, Texas Operated Karnes, Gonzales, and Fayette, Gonzales 36,520 gross / 17,740 net leasehold acres Working interests range from 33% to 50% 60% held-by-production…
Eagle Ford 2017 Drilling Plans 11 gross wells to be drilled and completed in southwestern Gonzales County; total net capex of 23mm 3 wells in Pilgrim Unit (7,300 foot lateral); 25% working interest 2 wells in Davis Unit (5,300 foot…
Bakken / Three Forks Asset Overview Primary assets are located in 5,900 net core acres predominantly in McKenzie and McKenzie County, North Dakota Dunn Counties of North Dakota that are prospective for the Bakken / Three Forks…
Financial Overview 23
Combined 2017 Capital Expenditure Budget Operated Midland Basin figures assume late April 2017 closing of the Bold Energy Transaction Current Budget Capex by Project Area Gross / Net Well Count 8% mm Spudded On-Line Drilling and…
Combined Liquidity As of February 28, 2017 (mm) Earthstone Bold Combined Cash and Equivalents 9.5 1.9 11.4 Revolver Borrowings 10.0 38.9 48.9 Other Debt 4.2 0.0 4.2 Total Debt 14.2 38.9 53.1 1 Revolver Borrowing Base 80.0…
Hedging Summary Oil Production Hedged (Bbls; /Bbl) Gas Production Hedged (MMBtu; /MMBtu) 2.997 50.38 50.70 1,740,000 600,000 2.907 270,000 600,000 2017 2018 2017 2018 Full Year Full Year Full Year Full Year 26
Analyst Coverage Firm Analyst Contact Info Baird Daniel Katzenberg / 646-557-3209 / dkatzenbergrwbaird.com Canaccord Genuity Steve Berman / 212-849-3944 / sbermancanaccordgenuity.com Euro Pacific Joel Musante / 800-727-7922 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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