Investment Highlights: Leading Small-Cap, Permian Focused Producer Top Investment Criteria Earthstones Qualifications Basin & Acreage Position High quality, Midland Basin acreage position Low Leverage 1.1x leverage at 2Q20…
Oil Price Volatility Requires Focused Business Strategy WTI trading in range of 40-70 per barrel vs. 80-110 per barrel since OPEC / Shale standoff commenced in 2H 2014, but with periods above and below trading range, including a…
Managing Through Oil Price Volatility December 2015 May 2017 October 2017 December 2017 May 2020 June 2016 Acquired 20,900 Net 40MM Divested Bakken Voluntarily Announces Acquisition of 45MM Common Acres from Bold Energy, Common…
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 (29,100 core net acres) and the Eagle Ford…
Midland Basin Growth Story But Growth on Pause Since entering the Midland Basin in 2016, Earthstone has substantially increased production, proved reserves and core acreage while maintaining low leverage and preserving financial…
Leading Leverage Metrics but Undervalued Equity Trading Total Debt / Annualized EBITDAX ESTE 1Q / 2Q: 1Q20 Large-Cap (1) Avg: 1Q20 SMid-Cap (1) Avg: 6.0x 1.0x / 1.1x 1.4x 2.5x 3.7x 4.0x 3.3x 3.0x 2.5x 2.7x 2.1x 2.2x 2.3x 2.0x…
Continuous Focus on Operational Improvement A continued focus on driving down costs and increased efficiencies achieved by developing larger pads and driving down drilling and completion days Actual Drilling, Completions & Equip.…
Highly Focused Environmental Stewardship Key Environmental Priorities Focus on Responsible Operatorship Installation of Vapor Recovery Units (VRUs) in conjunction with tank battery construction minimizes air emissions Target…
Asset Overview 12
Areas of Operations (1) Total (1) Midland Basin Total Proved Reserves (Mmboe) 94.3 Total Proved Reserves (Mmboe) 89.5 % Proved Developed 33% % Proved Developed 30% % Oil 56% % Oil 54% Total Proved PV-10 (mm) 820 Total Proved…
Financial Overview 14
Capital Budget, Guidance and Liquidity ESTE 2020 Capital Budget 2020 FY Guidance Gross / Net Operated 2020 Average Daily Production (Boepd) 13,000 - 14,000 Wells Drilled Gross / Net Net % Oil 61% - 62% and Waiting on Operated…
Hedge Book Summary 100% Swaps (as of 6/30/20) Oil Production Hedges - 100% Swaps Gas Production Hedges - 100% Swaps Period Volume (Bbls) Volume (Bbls/d) /Bbl Period Volume (MMBtu) Volume (MMBtu/d) /MMBtu 3Q 2020 644,000 7,000 56.38…
Analyst Coverage Firm Analyst Contact Info Alliance Global Partners Bhakti Pavani / 949-296-3196 / bpavaniallianceg.com Coker Palmer Noel Parks / 215-913-7320 / parkscokerpalmer.com Johnson Rice Dun McIntosh / 504-584-1217 /…
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…
Appendix 19
Differentiated, Balanced Inventory in Midland Basin Midland Basin Overview Gross Locations by Lateral Length and Target Contiguous acreage positions provide significant development advantage Gross Locations by Lateral Length 5,000' -…
Reconciliation of Non-GAAP Financial Measure Adjusted EBITDAX Earthstone uses Adjusted EBITDAX, a financial measure that is not presented in accordance with accounting principles generally accepted in the United States (GAAP). Adjusted…
Reserves Summary and PV-10 (Non-GAAP Financial Measure) Earthstones proved reserves as of December 31, 2019 were independently estimated by Cawley, Gillespie & Associates, Inc. (CGA), independent petroleum engineers, utilizing SEC…
Non-GAAP Financial Measure Free Cash Flow Free Cash Flow is a measure that we use as an indicator of our ability to fund our development activities. We define Free Cash Flow as Adjusted EBITDAX (defined above), less interest expense,…
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