Este at Enercom
Re: Este at Enercom
Robert Anderson, Earthstone's CEO did a great job. ESTE should be at least a double for us just to come close to the PV10 Net Asset value of just their proved reserves (P1) post-closing of the Titus Acquisition.
Assuming they run five drilling rigs through 2023, Earthstone's production should be at least 110,000 Boepd in 2023.
2023 Model assumptions
> Production mix of 44% crude oil, 30% natural gas and 26% NGLs
> Realized prices net of cash settlements on their hedges: $85/bbl for crude oil, $4.25/mcf for natural gas and $43/bbl for NGLs.
> Operating cash flow should be over $1.5 Billion with FCF over $750 million
Post-Closing of the Titus Acquisition, Earthstone will have close to 900 low-risk / high-return horizontal drilling locations. This is significant "running room".
Assuming they run five drilling rigs through 2023, Earthstone's production should be at least 110,000 Boepd in 2023.
2023 Model assumptions
> Production mix of 44% crude oil, 30% natural gas and 26% NGLs
> Realized prices net of cash settlements on their hedges: $85/bbl for crude oil, $4.25/mcf for natural gas and $43/bbl for NGLs.
> Operating cash flow should be over $1.5 Billion with FCF over $750 million
Post-Closing of the Titus Acquisition, Earthstone will have close to 900 low-risk / high-return horizontal drilling locations. This is significant "running room".
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group