Earthstone Energy (ESTE) Update - Feb 19

[dan_s]

Robert Anderson, Earthstone's CEO is hosting our webinar today. Register on our website if you wish to attend the live event.

ESTE looks like a double to me with oil back at $60/bbl.

The Woodlands, Texas, February 2, 2021 – Earthstone Energy, Inc. (NYSE: ESTE) (“Earthstone”, the
“Company”, “our” or “we”), today provided an operations update, released 2021 guidance and announced
its year-end 2020 estimated proved reserves. The Company has estimated its oil and gas sales volumes for
the fourth quarter of 2020 to be approximately 1.40 MMBoe or an average of approximately 15,232
Boepd (47% oil). For the year ended December 31, 2020, the Company estimates its annual sales
volumes grew 15% to approximately 5.63 MMBoe, or an average of approximately 15,382 Boepd (56%
oil) compared to 13,429 Boepd (63% oil) reported for the year ended December 31, 2019. The Company
also announced its year-end 2020 SEC total estimated proved reserves of approximately 78.9 MMBoe.

Key highlights include:
• Achieved record estimated average daily sales volumes in 2020 of 15,382 Boepd (56% oil),
exceeding the top end of guidance of 14,500 Boepd by 6%
• 2021 production guidance of 19,500-21,000 Boepd (52%-54% oil) and $90-100 million of capital
expenditures
• Estimated accrued capital expenditures of $20.3 million and $66.8 million for the fourth quarter of
2020 and full year 2020, respectively, slightly below the $67.5 million midpoint of full year
guidance
• Reduced outstanding long-term debt in 2020 by 32%, from $170 million to $115 million
• Signed Purchase and Sale Agreement on the acquisition of Independence Resource Management,
LLC (“IRM”) on December 17, 2020
• Strong balance sheet and liquidity position with $100 million of undrawn capacity on a $360
million senior secured revolving credit facility and a cash balance of $15.3 million as of December
31, 2020 on a combined basis including the subsequent closing of Earthstone’s acquisition of IRM
on January 7, 2021
• Year-End 2020 SEC total estimated proved reserves were 78.9 MMBoe (49% Proved Developed;
51% oil)

2021 Guidance
The Company’s 2021 capital budget of $90-100 million assumes a one-rig operated program on its
acreage in the Midland Basin commencing in March as well as expected non-operated activity. This
program is expected to result in spudding 21 gross / 18.5 net operated wells and bringing 16 gross / 13.5
net operated wells and 0.7 net non-operated wells online in 2021.

Based on its 2021 capital budget, operating plan, and existing service costs, along with current commodity
prices and hedges, the Company expects to generate significant positive free cash flow in 2021. The
Company’s capital budget does not include acquisition activity.