The New Earthstone: Significantly Larger Scale, Same Core Values Greater Efficiency from Top Basins / High Free Cash Flow Generation with Increased Critical Mass Long Inventory Life Low Reinvestment Needs Seven acquisitions since…
A Much Larger Earthstone: Corporate Snapshot Select Operational Data Earthstone Acreage New Mexico 256,000 100,000 Boe/d PERMIAN Permian Net Acres 4Q22 Production Guidance BASIN MIDLAND Midpoint Eddy 354 MMBoe 4.8 Billion Est.…
3Q22 Earnings Highlights The Transformed Earthstone Building Scale Production BOE per day Adjusted EBITDAX (MM) 94,329 265% 432% 346 25,836 65 3Q21 3Q22 3Q21 3Q22 Free Cash Flow (MM) LQA Leverage Ratio 877% 21% 174…
Acquisition Success Enabling Earthstones StepChange in Scale Earthstone has achieved significant scale through acquisitions in the Permian Mature base production profile and high quality inventory enables moderate production growth at…
Conservative Valuation Methodology Leads to High Impact Acquisitions Cumulative Proved Developed Reserves Value Greater Than Combined Total Purchase Price1 Undeveloped locations acquired virtually 3,000 free as PD value of acquired…
Successful Acquisitions Add Deep Inventory of HighReturn Drilling Locations 3Q22: Brought 19 wells online. 14 wells yielded production rates of over 1,000 Bopd with 7 of these wells nearing or exceeding 1,500 Bopd Select 3Q22 Well…
Shareholder Value Accretion Reflected in Enormous Proved Reserves Growth Robust Value Growth in Proved Reserves With Majority Coming from Proved Developed Reserves Additions 3.9B Est. Proved Developed Value 4.8 B 354 MMBoe Current…
Reserves and Inventory Robust Proved Developed and Inventory Profile 1P Reserves PV10 Value as of 10/1/22 On a combined basis, Total Proved Developed Reserves PV10 PV10 Value (MM) value of 3.9 billion which exceeds current enterprise…
Earthstone Offers an Attractive Value Opportunity ESTE has one of the lowest EV / EBITDA multiples and one of the highest Free Cash Flow yields Enterprise Value to 2023E EBITDAX Permian LargeCap Permian SMidCap Out of Basin Comps…
Strategic Advantages Gained Through Our Expanded Scale Expanded Capital Program Enhanced Optionality Recent Delaware Additions Greatly expanded footprint and Diversification and capital flexibility Recently acquired Delaware Basin…
Opportunities Broaden for Free Cash Flow Allocation in the Future FCF Likely Shifts Away from Deleveraging in 2023 Increased Optionality for Uses of Efficiency of capital development allows for some Free Cash Flow Beginning in 2023…
Liquidity and Capital Structure Benefitting from Expanded Scale and Recent Offering Significant Liquidity Supports All Potential 2,000 Capital Deployment Scenarios Borrowing Base Borrowing Base has grown from 240 MM at increased to…
Responsible Management of Fugitive Emissions and Flaring Do the Right Thing approach and proactive plan driving reductions in GHG emissions and flaring 2021 Greenhouse Gas 2021 Flaring Intensity of 0.7% Emissions Intensity of 7.9…
Progressing Our Sustainability Initiatives While Leading the Pack Key Environmental Priorities Focus on ESTE Among the Leaders in Permian Flaring Intensity Regardless of Market Cap1,2 Responsible Operatorship Minimize fugitive emissions…
Focused on Providing Shareholders a Path to Value Accretion Earthstone Management has consistently shown fundamental conservatism in assessing and executing a broader corporate strategy of value driven investment in high quality assets,…
Appendix 18
Company Guidance Company Guidance 3Q YTD Actuals 4Q22 Implied FY22 Midland Basin 2 Rigs Production (Boe/d) 69,203 98,000 102,000 76,462 77,470 Spud 36 Gross Operated Wells % Oil 40% 43% 41% Average Well Lateral Length of 10,200…
StepChange Improvements in ESTE Trading Liquidity Average daily trading volume (ADTV) is up 6x this year vs. 3Q21, at 1.8 million shares ESTE Average Daily Trading Volume (shares) ESTE Average Daily Dollars Traded 1,776,111…
Development Optionality Across A Larger Footprint Scaled Development Plans Continuous multizone development program spread across both Midland and Delaware Basin positions with typical development spacing at 35 wells per section…
Oil and Gas Hedge Summary Oil Hedge Positions (WTI based, Bbls/d, and /Bbl) 23,250 Focused on protecting cash flow Swaps Puts Collars while leaving upside for a stronger 73.14 / 96.49 16,500 16,500 commodity outlook 14,500…
Oil and Gas Hedge Positions WTI Oil Hedges Swaps HH Gas Hedges Swaps Period Volume (Bbls) Volume (Bbls/d) /Bbl Period Volume (MMBtu) Volume (MMBtu/d) /MMBtu 4Q 2022 1,081,000 11,750 66.70 4Q 2022 1,893,500 20,582 3.332 1Q 2023…
SEC StandAlone Reserves Summary & PV10 YearEnd 2021 As shown in the table below, Earthstones standalone estimated proved reserves at year end 2021 were independently estimated by Cawley, Gillespie & Associates, Inc. (CGA), independent…
Reconciliation of NonGAAP Financial Measure Adjusted EBITDAX Earthstone uses Adjusted EBITDAX, a financial measure that is not presented in accordance with GAAP. Adjusted EBITDAX is a supplemental nonGAAP financial measure that is used by…
Reconciliation of NonGAAP Financial Measure Free Cash Flow Free Cash Flow is a nonGAAP financial measure that Earthstone uses as an indicator of our ability to fund our development activities and reduce our leverage. Earthstone defines…
Estimated Proved Reserves Summary as of 10/1/22 at NYMEX Strip Pricing as of 9/30/22 This summary of proved developed reserve volumes and values as shown in the table below are based on management estimates and has been prepared as of…
Market Capitalization Table ( in millions, except share price) 9/30/2022 Cl a s s A Common Stock (MM) 105.4 Cl a s s B Common Stock (MM) 34.3 Total Common Stock Outstanding (MM) 139.7 Stock Pri ce (a s of 11/1/22) 16.43 Market…
Notes and Supplemental Information Management has provided forwarding looking charts and figures on various slides that utilize a maintenance capital scenario. These figures are for example purposes only and do not constitute specific…
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