The Oil & Gas Conference - ENERCOM August 13, 2019 1
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) 150.0 129.5 134.6 2.40 3.0x 120.0 Maintained leverage below 1.5x since 2016 96.2 90.0 60.6 2Q16:…
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 (Mmboe) 98.8 1P Reserves (Mmboe) 93.4 % PD 24% % PD 21% % Oil 60% % Oil 58% PV-10 (mm) 1,009 PV-10 (mm) 904 (2) (2) 2Q 2019 Net Production (Boe/d) 12,699 2Q 2019 Net…
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 Jordan N 23-24 2814H Double Eagle 1,395 133 88% Earthstone Well 2…
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…
Eagle Ford Asset Overview Eagle Ford Overview Eagle Ford Position: Karnes, Gonzales and Fayette Counties Washington Operated Karnes, Gonzales, and Fayette Lee Travis Counties Hays Austin Bastrop Fayette 29,000 gross…
Financial Overview 19
Capital Budget, Guidance and Liquidity ESTE 2019 Capital Budget(1) 2019 FY Guidance(1) Gross / Net Well Count 2019 Average Daily Production (Boe/d) 11,250 - 12,250 ( 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 3Q 2019 598,000 6,500 65.53 3Q 2019 782,000 8,500 2.854 4Q 2019 579,600 6,300…
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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