Earthstone Energy (ESTE) Update - May 20

[dan_s]

I just finished putting the final touches on our Earthstone profile. We will send it out via email on at 4PM CT today. Read it carefully.

This company has free cash flow TOTALLY LOCKED IN WITH HEDGES because for at least the next two quarters they have over 100% of their oil production hedged at $53.44/bbl for Q2 and $57.35/bbl for Q3. They also have over 80% of their Q4 oil production (based on my guess) hedged at $61.15/bbl. They also have ~40% of their 2021 oil hedged at $55.16/bbl.

Of all the small-caps I follow, ESTE is in the best position to come out of this "swoon in oil prices" with double-digit production growth locked in.

The Earthstone Team has been through many oil price cycles and they know how to take advantage of them.

ESTE is trading at $2.51 at the time of this post. Their hedges have a cash value of over $1.25/share today. < This can only happen in Crazy Coronavirus World.