Earthstone Energy (ESTE) Update March 13

[dan_s]

Notes from John White at Roth Capital

Our valuation is based on a net asset value (NAV) analysis which produced $11.86 per share, which we adjusted higher to derive our price target of $12.00.

ESTE reported actual 4Q 2018 production of 10,454 BOE per day, slightly higher than our estimate of 10,430 BOE per day and consensus of 10,418 BOE per day. Actual adjusted EPS/EBITDA of $0.10 was higher than our estimate of $0.06 and lower than the consensus figure of $0.15. EBITDA of $23.9 million was slightly under our number of $26.7 million and lower than the consensus estimate of $25.8 million.

The slightly higher production together with slightly higher than expected realized prices for crude oil and NGL drove revenues higher, partially offset by higher lease operating expense, DD&A and G&A.



We will analyze these figure further and revise our estimates accordingly.