Investment Highlights: Leading Small-Cap, Permian Focused Producer Top Investment Criteria Earthstones Qualifications Basin & Acreage High quality, Midland Basin acreage position enhanced by recent Position acquisition of IRM and…
Proven Leadership and Track Record of Value Creation Operating team has extensive experience operating across various basins and in different operating environments Leadership Team Years of Experience Years Working Together Title…
2021: Increasing Scale and Efficiency Through Consolidation Over 300 million in aggregate YTD acquisitions of Independence Resources Management, LLC (IRM) (closed 1/7/2021(1)) and Tracker Resource Development (announced 4/1/2021,…
Recent Acquisitions Meet Key Earthstone Criteria IRM / Earthstone Commentary Tracker Objectives Acquisitions Increase Scale at 75% increase in ESTE base production volumes Favorable Valuations PDP-focused purchase price…
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 Midland Basin Asset Overview Basin (32,800 core net acres(1)) Additional…
Earthstone Overview 10
Midland Basin Growth Story Since entering the Midland Basin in 2016, Earthstone has substantially increased production and decreased operating expenses, which has resulted in increased Adjusted EBITDAX, while also maintaining low…
Leading Leverage Metrics but Undervalued Equity Trading YE20 Total Debt / FY20 EBITDAX 8.0x ESTE / PF IRM(1): Large-Cap(2) Avg: SMid-Cap(2) Avg: 0.8x / 1.2x 2.2x 3.1x 6.0x 4.0x 4.2x 4.0x 3.5x 3.6x 2.9x 2.5x 2.3x 2.3x 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. Cost…
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…
Executive Compensation Fully Aligned with Shareholders Leading executive compensation practices 75% of Equity Compensation based on 3-year Absolute Shareholder Return(2) Consistent with investor demands Focused on share price and…
Areas of Operations (1) (1) Total (excludes Tracker) ESTE Midland Basin Total Proved Developed (Mmboe) 56.0 Total Proved Developed (Mmboe) 52.3 Total PD PV-10 (mm) 653 Total PD PV-10 (mm) 598 1Q21 Net Production (Boe/d)(2) 20,321…
Substantial Economic Inventory in The Midland Basin (Excludes Impact of Pending Tracker Acquisition) Midland Basin Overview Gross Locations by Lateral Length and Target(2) Long lateral development increases capital efficiency Gross…
Financial Overview 19
Capital Budget, Guidance and Liquidity (Excludes Impact of Pending Tracker Acquisition) ESTE 2021 Capital Budget 2021 FY Guidance 2021 Average Daily Production (Boepd) 19,500 - 21,000 Gross / Net Gross / Net Net Operated Operated…
Oil and Gas Hedges Summary 100% Swaps Oil Production Hedges - 100% Swaps Gas Production Hedges - 100% Swaps Period Volume (Bbls) Volume (Bbls/d) /Bbl Period Volume (MMBtu) Volume (MMBtu/d) /MMBtu 2Q 2021 811,260 8,915 48.26 2Q 2021…
Analyst Coverage Firm Analyst Contact Info Alliance Global Partners Andrew Bond / 203-577-5427 / abondallianceg.com Johnson Rice Charles Meade / 504-584-1274 / cmeadejrco.com Northland Subash Chandra / 212-405-8098 /…
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 24
Reserves Summary and PV-10 (Non-GAAP Financial Measure) Earthstones proved reserves as of December 31, 2020 were independently estimated by Cawley, Gillespie & Associates, Inc. (CGA), independent petroleum engineers, utilizing SEC…
Reserves Summary Alternative The information presented below includes the combination of the stand-alone reserve quantities and PV-10 for Earthstone and IRM as of December 31, 2020 prepared in accordance with Society of Petroleum…
Reconciliation of Non-GAAP Financial Measure Adjusted EBITDAX Earthstone uses Adjusted EBITDAX, a financial measure that is not presented in accordance with GAAP. Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used…
Reconciliation of Non-GAAP Financial Measure Adjusted EBITDAX The following table provides a reconciliation of Earthstones and IRMs Net (loss) income to Adjusted EBITDAX for: Combined FY 2020 Adjusted EBITDAX ( in 000s) ESTE IRM…
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