Earthstones Differentiating Factors Strategic Consolidator Top Basins / Returns Focused Eight acquisitions since early 2021 Long Inventory Life Modest cash flow needed to increased production by 7.5x and maintain production…
Corporate Snapshot Select Operational Data (Pro Forma Novo) Earthstone Acreage Novo Acreage Permian Basin Area 223,000 130 - 135 MBoe/d Permian Net Acres (41% Oil) 4Q23E Production 460 MMBoe 5.4 Billion New Mexico Estimated…
Highly Accretive Novo Transaction Significantly Expands Delaware Basin Scale Acquisition Highlights Combined Delaware Basin Acreage Overview Transaction 1.5 billion joint acquisition whereby Earthstone acquires Novo and concurrently…
Novo Acquisition Checks All Boxes for Significant Shareholder Value Creation 1.5B Highly Accretive Key Purchase Enhances Scale Meaningful FCF Generation Delaware Basin Acquisition1 and Operational Synergies Adds to Corporate Strategy…
Novo Acquisition Drives Strong Financial Accretion and Maintains Financial Strength Significant Adj. EBITDAX Growth While Maintaining Financial Strength 20% 30% 4.0x 1,600 Est. 2024E Adj. EBITDAX 4Q23 Production Increase2 Uplift1…
Reserves and Inventory Earthstone + Novo Robust Reserves and Inventory Profile1 Pro Forma 1P PV-10 Value as of 5/1/234 The Novo assets bolster Earthstones inventory, adding 111 net MMBoe of 1P reserves PV-10 Value (MM) (62% liquids)1…
Continuation of Conservative Valuation Leads to High Impact Valuation Cumulative PV-10 Value of Proved Developed Reserves Greater Than Combined Total Purchase Price1 4,000 Across all seven significant transactions, Tracker 3,500…
Continued Transformation to Scaled Permian Operator with Multi-Basin Optionality Earthstone Continues to Build Transformational Scale Premier Pro Forma Permian Footprint Since YE 2020, ESTE has built significant scale across eight…
High-Quality Novo Locations Significantly Upgrades Inventory Stack Top-Tier Inventory Solidifies Superior Permian Position Assets are positioned in the core of the Delaware Basin with superior multi-bench rock quality and basin-leading…
22-Well Novo Ovation Pad Demonstrates Strong Performance In 5 Distinct Targets at Full Development Spacing Eddy County Type Section and Ovation End View 1-Mile DSU Brushy Canyon OvationOvation Pad Pad Avalon 1st Bone Spring…
Strategic Divestitures in the Past Twelve Months Earthstone has netted 100mm from selling non-core assets in the Midland Basin/Eagle Ford over the past year Proceeds have been used to repay RBL debt Earthstone Divestitures Date…
Shareholder Value Accretion Reflected in Significant Proved Reserves Growth Robust Value Growth in Proved Reserves With Majority Coming from Proved Developed Reserves Additions 7.8 B Current valuation 4.6B PD 368 MMBoe…
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…
The Energy Sector Offers an Attractive Value Opportunity Energy has the lowest EV / EBITDA multiple and the highest Free Cash Flow yield Enterprise Value to 2023E EBITDA 20.0x 16.9x 14.4x 13.8x 13.7x 12.6x 11.9x 9.9x 9.7x…
Earthstone Offers an Attractive Value Opportunity ESTE has one of the lowest EV / EBITDAX multiples and one of the highest Free Cash Flow yields Enterprise Value to 2023E EBITDAX Permian Large-Cap Permian SMid-Cap Non-Permian…
ESG All About Doing the Right Thing We Are Committed to Doing the Right Thing Target Zero Routine Flaring % Women/Minority1 2022 % Approval on Pay2 0% 50% 99% Environmental Social/Safety Governance Environment Impact Safety ESG…
ESG Continual Improvement Coming Earthstone Continues to Implement Key ESG Objectives in 3Q23 Minimized Air Emissions Retrofitted Facilities Installed Vapor Recovery Towers (VRTs) and Installation of air-operated pneumatic…
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 23
Oil and Gas Hedge Summary Oil Hedge Positions (WTI based, Bbls/d, and /Bbl) Focused on protecting cash flow while 23,600 Swaps Puts Collars 20,500 20,875 leaving upside for a stronger 18,500 commodity outlook 62.58 / 84.84 62.67 /…
Estimated Proved Reserves Summary as of 5/1/23 at NYMEX Strip Pricing as of 5/24/23 This summary of proved developed reserve volumes and values as shown in the table below is based on management estimates and has been prepared as of May…
Oil and Gas Hedge Positions WTI Oil Hedges - Swaps HH Gas Hedges - Swaps Oil Swap S 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 3.349 3Q…
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…
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…
Definition of Non-GAAP Financial Measures 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 by…
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