Investment Highlights: Leading Small-Cap, Permian Focused Producer Top Investment Criteria Earthstones Qualifications Basin & Acreage High quality, Midland Basin acreage position enhanced by three Midland Position Basin…
Proven Leadership and Track Record of Value Creation Yrs of Yrs Working Leadership Title Experience Together PROVEN LEADERSHIP Frank Lodzinski Executive Chairman 49 25 Operating team has extensive experience Robert Anderson…
2021: Increasing Scale and Efficiency Through Consolidation Over 430 million in aggregate YTD acquisitions of Independence Resources Management, LLC (IRM) (closed 1/7/2021(1)), assets from Tracker Resource Development III, LLC and…
2021 Acquisitions Meet Key Earthstone Criteria Earthstone 2021 Commentary Objectives Acquisitions Increase Scale at 100% 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 (101,300 net acres(1)) Additional 13,200…
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 Total Debt / Last Quarter Annualized EBITDAX ESTE 2Q21/3Q21(1): Large-Cap(2) Avg: SMid-Cap(2) Avg: 1.1x 1.5x 2.5x 3.6x 3.6x 2.9x 2.9x 2.1x 2.2x 1.9x 1.6x 1.1x 1.1x 1.1x…
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 Midland Basin Total Proved Developed (Mmboe) 96.5 Total Proved Developed (Mmboe) 76.3 Total PD PV-10 (mm) 1,299 Total PD PV-10 (mm) 1,045 3Q21 Net Production (Boe/d)(2) 30,236 3Q21 Net Production…
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 4Q 2021 Guidance 4Q 2021 Average Daily Production (Boe/d) 28,500 - 29,500 Gross / Net Gross / Net Net Operated Operated Non-Op % Oil 43% - 44% ( in millions) Wells…
Oil and Gas Hedging Summary Disciplined approach to hedging majority of near-term volumes to provide cash flow visibility Lower hedging relative to production and utilization of some collars provide increased commodity upside exposure…
Analyst Coverage Firm Analyst Contact Info Alliance Global Partners Jeffrey Campbell / 888-543-4448 / jcampbellallianceg.com Benchmark Subash Chandra / 212-312-6755 / schandrabenchmarkcompany.com Johnson Rice Charles Meade /…
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 4Q 2021 941,475 10,233 50.63 4Q 2021 2,576,000 28,000 2.874 1Q 2022…
Alternative Reserves Summary 10/1/21 The information presented below includes the combination of the stand-alone reserve quantities and PV-10 for Earthstone and from the Foreland Acquisition as of October 1, 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 accounting principles generally accepted in the United States (GAAP). Adjusted…
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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