Earthstones Differentiating Factors Strategic Consolidator Top Basins / Returns Focused Seven acquisitions since early 2021 Long Inventory Life Modest cash flow needed to increased production by 5x and maintain production levels,…
Corporate Snapshot Select Operational Data Earthstone Acreage Permian Basin Area 212,000 104,450 Boe/d Permian Net Acres (44% Oil) 1Q23 Production 352 MMBoe 4.6 Billion New Mexico Estimated Proved Reserves1 Proved PV-10 at…
Solid Execution Drives Strong First Quarter Results Production BOE Adjusted EBITDAX Free Cash Flow Undrawn Revolver per day (MM) (MM) (MM) 194% 117% 17% 372% 104,450 266.9 41.8 948 Boe/d MM MM MM Note: 1Q23 versus 1Q22. See…
2022 Key Accomplishments Significant step-change in 2022 positions Earthstone for substantial opportunities to enhance existing Permian asset base and generate shareholder value 1 2 3 Proven Permian Consolidator Production Growth…
Value Accretion to Shareholders Accretion to shareholders while maintaining low leverage Last-Quarter-Annualized Production per Proved Reserves Value per Debt-Adjusted Share (Mboe per Share)1 Debt-Adjusted Share 1,2 179.8…
Shareholder Value Accretion Reflected in Significant Proved Reserves Growth 3.6B Robust Value Growth in Proved Reserves With Majority Coming from Proved Developed Reserves Additions 7.8 B 368 MMBoe PUD Estimated PV-10 Value of…
Acquisition Success Enabling Earthstones Step-Change in Scale Earthstone has achieved significant scale through acquisitions in the Permian Low decline base production profile and high quality inventory enables moderate production…
Conservative Valuation Methodology Leads to High Impact Acquisitions Cumulative PV-10 Value of Proved Developed Reserves Greater Than Combined Total Purchase Price1 3,000 Across all six significant transactions, proved 2,500…
Reserves and Inventory Robust Proved Developed and Inventory Profile 1P Reserves PV-10 Value as of 1/1/23 Total Proved Developed Reserves PV-10 value of 3.6 billion PV-10 Value (MM) exceeds current enterprise value Proved Developed…
Deep Inventory of High-Return Drilling Locations Recent Well Results Pad Peak IP-30 (Boepd) Oil (%) Lateral Length (ft) WI (%) 1 Salt Draw (2 Wells) 1,570 77% 4,700 55% Earthstone Acreage New Mexico 2 Cletus (2 Wells) 1,370 69%…
Increased Drilling Productivity Earthstone is drilling more feet per day than the previous operator by 34% ESTE Significantly Increasing Drilling Efficiency Case Study: Anaconda 11-14 Fed vs. Pakse South Fed Days Average Feet Drilled per…
Increased Completion Efficiencies Earthstone is completing wells faster than 2021 vintage wells (previous operator) by 16% while optimizing completion design, yielding 31% uplift in EUR for wells in Lea County Improved Frac Stages…
Company Guidance Delaware Basin Guidance FY 2023 3 Rigs Production (Boe/d) 96,000 - 104,000 Spud 45 Gross Operated Wells % Oil 44% Average Well Lateral Length of 8,900 Feet % Liquids 69% 69% Average Working Interest Total…
Low-Cost Operator Leader in Permian SMid-Cap Peer Group Earthstone provides low-cost operational excellence across existing and recently acquired assets FY22 All-in Cash Costs Per Boe1 24.76 SMid-Cap 21.90 Peer Average: 19.00…
The Energy Sector Offers an Attractive Value Opportunity Energy has the lowest EV / EBITDA multiples and the highest Free Cash Flow yield Enterprise Value to 2023E EBITDA 17.5x 16.8x 14.3x 14.0x 12.4x 12.1x 12.1x 9.5x 9.1x…
Earthstone Offers an Attractive Value Opportunity ESTE has one of the lowest EV / EBITDAX multiples and the highest Free Cash Flow yield Enterprise Value to 2023E EBITDAX Permian Large-Cap Permian SMid-Cap Non-Permian SMid-Cap 5.8x…
Liquidity and Capital Structure Benefitting from Expanded Scale Significant Liquidity Supports All Potential 948 MM undrawn as of Capital Allocation Scenarios 1,850 3/31/23 Borrowing Base has grown from 240 MM at 1,650 YE20 to…
Highly Focused Environmental Stewardship Doing the Right Thing Key Environmental Priorities Focus on Responsible Operatorship Installation of Vapor Recovery Towers (VRTs) and Vapor Recovery Units (VRUs) with tank battery construction…
Earthstone Presents A Compelling Investment Opportunity Earthstone Management has consistently shown fundamental conservatism in assessing and executing a broader corporate strategy of value driven investment in high quality assets,…
Appendix 22
Development Optionality Across A Larger Footprint Scaled Development Plans Continuous multi-zone development program spread across both Midland and Delaware Basin positions with typical development spacing at 3-5 wells per section…
Oil and Gas Hedge Summary Oil Hedge Positions (WTI based, Bbls/d, and /Bbl) Focused on protecting cash flow while Swaps Puts Collars leaving upside for a stronger 18,500 19,000 19,000 18,835 commodity outlook 62.47 / 87.56 63.09…
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 2Q 2023 409,500 4,500 76.94 2Q 2023 1,137,500 12,500 3.35 3Q 2023 414,000…
SEC Proved Reserves Summary & PV-10 Year-End 2022 As shown in the table below, Earthstones estimated proved reserves at year end 2022 were estimated by Cawley, Gillespie & Associates, Inc. (CGA), independent petroleum engineers, and which…
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…
Reconciliation of Non-GAAP Financial Measure Free Cash Flow Free Cash Flow is a non-GAAP financial measure that Earthstone uses as an indicator of our ability to fund our development activities and reduce our leverage. Earthstone defines…
Reconciliation of Non-GAAP Financial Measure Adjusted Diluted Shares Earthstone defines Adjusted Diluted Shares as the weighted average shares of Class A Common Stock - Diluted outstanding plus the weighted average shares of Class B…
Estimated Proved Reserves Summary as of 01/01/23 at NYMEX Strip Pricing as of 12/30/22 This summary of proved developed and undeveloped reserve volumes and values as shown in the table below are based on management estimates and has been…
Market Capitalization Table ( in millions, except share price) Cl a s s A Common Stock (MM) 106.2 Cl a s s B Common Stock (MM) 34.3 Total Common Stock Outstanding (MM) 140.5 Stock Pri ce (a s of 4/28/23) 13.56 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…
Notes and Supplemental Information, Continued Supplementary Footnotes (Page 8) 1. Estimated PD reserves value of 3.6 billion as of 1/01/23 at NYMEX strip pricing as of 12/30/22. See Appendix for additional details. 2. Calculated as 1/1/23…
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