Earthstone Energy (ESTE) Valuation Increase - April 1

[dan_s]

I have updated my Earthstone forecast/valuation model assuming the Tracker Acquisition closes in July, 2021. My valuation increases by $1.50 to $14.00 per share. The Tracker acquisition will be accretive to operating cash flow and a SIGNIFICANT increase in Earthstone's proved reserves and running room.

Now you know why I added ESTE to the Sweet 16. I expect them to keep bolting on more acquisitions as they build on their already solid base of production.

Tracker produces a lot of NGLs and NGL prices are going up a lot this year.

At the time of this post, ESTE is up ~28% on heavy volume.

The management team at Earthstone has a strong relationship with EnCap.