Earthstone Energy (ESTE) Price Target - July 1

Post Reply
dan_s
Posts: 34465
Joined: Fri Apr 23, 2010 8:22 am

Earthstone Energy (ESTE) Price Target - July 1

Post by dan_s »

TipRanks: "On 6/29/2022 RBC Capital analyst Scott Hanold maintained a Buy rating on Earthstone Energy (ESTE) and set a price target of $21.00."

At the time of this post, ESTE was trading at $13.56

My valuation (updated today) is $39.00

Earthstone is a very Aggressive Growth company that is well funded. They have grown fast by making six strategic acquisitions in the Permian Basin over the last two years (taking advantage of a depressed M&A market) and they recently announced a 7th significant acquisition. My valuation assumes that the Titus Acquisition will close in September 2022, pushing Earthstone's production to approximately 100,000 Boepd at year-end 2022. Earthstone's Q1 2022 production was 35,509 Bcfpd and guidance is for Q2 production of 71,500 Boepd.

If WTI oil averages $100/bbl and HH gas averages $6.00/mcf in 2023, Earthstone should generate revenues (based on production of 105,000 Boepd) of more than $2.2 Billion. < This compares to the Company's revenues of $343.7 million in 2021. That is what I define as Aggressive Growth.
Dan Steffens
Energy Prospectus Group
Post Reply