Investment Highlights Actively growing in the Midland Basin Midland Basin Focused Growth through drill bit, acquisitions and significant business combinations Company with Growing Inventory 870 total gross drilling locations across…
Proven Leadership and Track Record of Value Creation Operating team has extensive experience running multi-rig development programs across various basins Leadership Team Years of Experience Years Working Together Title Frank…
Midland Basin Growth Story Since entering the Midland Basin in 2016, Earthstone has substantially increased production, proved reserves and core acreage while maintaining low leverage and preserving financial flexibility The Company…
Consistent Growth and Margin Expansion While Maintaining a Strong Balance Sheet Adjusted EBITDAX (MM) Unhedged Debt-Adjusted CFPS(3) 2.40 3.0x 150.0 129.6 2Q'16-1Q'19 CAGR Maintained leverage below 1.5x since 2016 Unhedged CFPS…
Top Tier Finding Costs and Cash Margins 2018 F&D All Sources (/Boe) (1) 20.00 Peer Group Avg: 12.54 15.89 16.38 ESTE 40% below Peers 14.27 15.11 13.60 11.33 11.39 11.61 9.97 10.34 10.00 7.79 8.09 0.00 ESTE Peer 1 Peer 2…
Company Overview The Woodlands, Texas based E&P company focused on development and production of oil and natural gas with current operations in the Midland Basin Asset Overview Midland Basin (30,200 core net acres) and the Eagle Ford…
Earthstone by the Numbers: Increased Size, Scale and Core Inventory Midland Basin Net Acres 30,200 Midland Basin Locations (Gross / Net) 866 / 496 Operated Midland Basin Locations (Gross / Net) 500 / 398 Operations Eagle Ford Net…
Areas of Operations (1) (1) Total Midland Basin 1P Reserves 98.8 1P Reserves 93.4 % PD 24% % PD 21% % Oil 60% % Oil 58% PV-10 (mm) 1,009 PV-10 (mm) 904 (2) (2) Q1 2019 Net Production (Boe/d) 11,209 Q1 2019 Net Production (Boe/d)…
Continuous Focus on Operational Improvement Meaningful improvements in drilling days and prudent Actual Drilling, Completions & Equipment Cost / Foot (1) service cost management over past year 1,800 8 D&C / lateral foot flat despite…
Asset Overview 12
Significant Position in the Midland Basin 30,200 Total Net Acres in Core of Midland Basin Midland Basin Overview 866 gross locations Significant Operated Position in Midland Basin(1) 23,300 net acres, 94% average working…
High Quality Pay Across Multiple Zones Reagan County Type Section Proven Multi-Zone Development Current Reagan inventory 1 Wolfcamp A target Dean 2 Wolfcamp B targets 1 Wolfcamp C target Wolfcamp 8 targets across 5 benches tested…
Recent Southern Midland Basin Results Southern Midland Basin Activity Map Recent Well Results Well Name Operator IPW2 (Boe/d) IP/1000' (Boe) % Oil Industry Well 1 Torpedo 1048 B 5HA Apache 1,410 153 82% Earthstone Well 2 University…
Differentiated, Balanced Inventory in Midland Basin Midland Basin Overview Gross Locations by Lateral Length and Target Contiguous acreage positions provide significant development Gross Locations by Lateral Length advantage Target…
Midland Basin Performance Review Outperforming initial expectations and generating attractive returns at strip prices Improved internal rate of return (IRR) due to initial production outperforming previous type curves Reagan County…
Acreage Trade Central Reagan County Acreage Trade Highlights Pre-Trade Post-Trade In October 2018, ESTE traded non-operated working interests in Glasscock County and paid 27.8 million in cash for operated working interests in Reagan…
Eagle Ford Asset Overview Karnes, Gonzales, and Fayette Counties, Texas Operated Karnes, Gonzales, and Fayette Counties Travis Lee Washington 29,000 gross / 14,100 net leasehold acres Hays Austin Bastrop Fayette Working…
Financial Overview 20
Capital Budget, Guidance and Liquidity ESTE 2019 Capital Budget(1) 2019 FY Guidance(1) (3) Gross / Net Well Count 2019 Average Daily Production (Boepd) 11,000 - 12,000 ( in millions) Wells Spudded On-Line % Oil 65% Drilling and…
Hedge Book Summary Oil Production Hedged Gas Production Hedged Period Volume (Bbls) Volume (Bbls/d) /Bbl Period Volume (MMBtu) Volume (MMBtu/d) /MMBtu Q2 2019 591,500 6,500 65.53 Q2 2019 910,500 10,005 2.856 Q3 2019 598,000 6,500…
Analyst Coverage Firm Analyst Contact Info Alliance Global Partners Joel Musante / 203-349-4782 / jmusanteallianceg.com Baird Joseph Allman / 646-557-3209 / jdallmanrwbaird.com Coker Palmer David Beard / 631-725-8810 /…
Contact Information Mark Lumpkin, Jr. EVP, Chief Financial Officer Scott Thelander Vice President of Finance Corporate Offices Houston 1400 Woodloch Forest Drive Suite 300 The Woodlands, TX 77380 (281) 298-4246 Midland…
Reconciliation of Non-GAAP Financial Measure Earthstone uses Adjusted EBITDAX, a financial measure that is not presented in accordance with United States generally accepted accounting principles (GAAP). Adjusted EBITDAX is a supplemental…
Reserves Summary Earthstones proved reserves as of December 31, 2018 were independently estimated by Cawley, Gillespie & Associates, Inc. (CGA), independent petroleum engineers, utilizing SEC prescribed oil and gas prices of 65.56/bbl…
Non-GAAP Financial Measure PV-10 PV-10 is derived from the standardized measure of discounted future net cash flows (Standardized Measure), which is the most directly comparable financial measure under GAAP. PV-10 is a computation of…
F&D Costs per Unit F&D costs per unit is a non-GAAP metric commonly used in the oil and gas exploration and production industry by companies, investors and analysts in order to measure a companys ability of adding and developing…
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