Investment Highlights: Leading Small-Cap, Permian Focused Producer Top Investment Criteria Earthstones Qualifications Basin & Acreage High quality, Midland Basin acreage position enhanced by 2021 Position acquisitions 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 360 million in aggregate YTD acquisitions of Independence Resources Management, LLC (IRM) (closed 1/7/2021(1)), assets from Tracker Resource Development III, LLC and…
Recent Acquisitions Meet Key Earthstone Criteria Earthstone Recent Commentary Objectives Acquisitions Increase Scale at 75% increase in ESTE base production volumes Favorable Valuations PDP-focused purchase price valuation…
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 (52,800 core net acres(1)) Additional…
Earthstone Overview 8
Midland Basin Growth Story Since entering the Midland Basin in 2016, Earthstone has substantially increased production and decreased per unit cash expenses, resulting in increased Adjusted EBITDAX, while maintaining low leverage and…
Leading Leverage Metrics but Undervalued Equity Trading 1Q21 Total Debt / 1Q21 Annualized EBITDAX 8.0x ESTE 1Q21/2Q21(1): Large-Cap(2) Avg: SMid-Cap(2) Avg: 1.3x / 1.1x 2.0x 2.7x 6.0x 4.3x 4.0x 4.0x 3.1x 2.6x 2.6x 2.7x 2.3x…
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…
Responsible Management of Air Emissions and Flaring Earthstones Do the Right Thing approach and proactive emissions and flaring initiatives are demonstrated by: 29% Below Permian Peers Avg.(1) 45% Below Permian Peers Avg.(1)…
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) Total Total Proved Developed (Mmboe) 83.6 Total PD PV-10 (mm) 1,089 2Q21 Net Production (Boe/d)(2) 22,716 2Q21 Net Production - % Oil(2) 52% 2Q21 Net Production - % Liquids(2) 76% Gross Producing…
Substantial Economic Inventory in the Midland Basin Midland Basin Overview Gross Locations by Lateral Length and Target(2) Gross Locations by Lateral Length Long lateral development increases capital efficiency 5,000' - 6,750' -…
Financial Overview 18
Capital Budget, Guidance and Liquidity ESTE FY 2021 Capital Budget 2021 Guidance FY 2021 Average Daily Production (Boe/d) 23,500 - 24,250 Gross / Net Gross / Net Net Operated Operated Non-Op % Oil 50% - 51% ( in millions) Wells…
Oil and Gas Hedging Summary Disciplined approach to hedging majority of near-term volumes to provide cash flow visibility Currently 81% and 65% of 2H2021 underlying oil and gas production guidance(1) hedged, respectively Strategy…
Analyst Coverage Firm Analyst Contact Info Alliance Global Partners Jeffrey Campbell / 888-543-4448 / jcampbellallianceg.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 23
Oil and Gas Hedges Summary WTI Oil Hedges - Swaps HH Gas Hedges - Swaps Period Volume (Bbls) Volume (Bbls/d) /Bbl Period Volume (MMBtu) Volume (MMBtu/d) /MMBtu 3Q 2021 873,925 9,499 49.40 3Q 2021 2,328,000 25,304 2.858 4Q 2021…
SEC Stand-Alone Reserves Summary & PV-10 Mid-Year 2021 As shown in the table below, the Companys stand-alone estimated proved reserves at mid-year 2021, which were prepared in accordance with Securities and Exchange Commission (SEC)…
Alternative Reserves Summary Mid-Year 2021 The information presented below includes the combination of the stand-alone reserve quantities and PV-10 for Earthstone and from the Tracker Acquisition as of June 30, 2021. This alternative…
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…
Non-GAAP Financial Measure Free Cash Flow Free Cash Flow is a measure that Earthstone uses as an indicator of the ability to fund its development activities. Earthstone defines Free Cash Flow as Adjusted EBITDAX, less interest expense,…
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