Earthstone Energy (ESTE) Update - Apr 4

[dan_s]

This is important to me because I am a "Financial Guy" and I know how hard the banks look at a company before they agree to raise the credit facility commitment level. If oil stays over $80/bbl, Earthstone should generate over $1 Billion of operating cash flow this year. I began coverage of this Company back in 2018 when their production was under 10,000 Boepd. Q4 2022 production was 104,766 Boepd.
I do expect Earthstone to make more significant acquisitions this year.

THE WOODLANDS, Texas, April 03, 2023 (GLOBE NEWSWIRE) -- Earthstone Energy, Inc. (NYSE: ESTE) (“Earthstone” or the “Company”) announced today that it has entered into an amendment to the Company’s senior secured revolving credit facility (the “Credit Facility”), increasing the elected commitments from $1.2 billion to $1.4 billion. Additionally, the $250 million term loan tranche under the Credit Facility converted into an elected revolving commitment. Further, the borrowing base was redetermined at $1.65 billion as a part of the regularly scheduled redetermination.

Robert J. Anderson, Earthstone’s President and Chief Executive Officer, commented, “We are thankful for our longstanding banking relationships and believe that this amendment tangibly underscores our bank group’s recognition of the financial strength of Earthstone as a result of the high-quality and sizeable asset base we have built. We appreciate the support of our existing banks and welcome the three new banks into our facility. This year, we expect to continue to pay down significant amounts of debt outstanding under our Credit Facility. The additional debt reduction and this more than 16% increase to our elected commitment amount provide Earthstone with significant financial flexibility and optionality for the future.”

Credit Facility and Liquidity Update

As of March 31, 2023, the Company had approximately $452 million drawn under the Credit Facility, a reduction of $68 million from the $520 million drawn at December 31, 2022, leaving $948 million in undrawn availability. The Credit Facility maturity date remains June 2027.

About Earthstone Energy, Inc.

Earthstone Energy, Inc. is a growth-oriented, independent energy company engaged in acquisitions and the development and operation of oil and natural gas properties. Its primary assets are located in the Permian Basin of New Mexico and west Texas. Earthstone is listed on the New York Stock Exchange under the symbol “ESTE.” For more information, visit Earthstone’s website at www.earthstoneenergy.com.

[dan_s]

Earthstone's CEO Robert Anderson was interviewed on CNBC. Here is the link:
https://www.cnbc.com/video/2023/04/05/earthstone-energy-ceo-on-how-opecs-production-cut-impacts-his-company.html