Earthstone Energy (ESTE) Update - Aug 15

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THE WOODLANDS, Texas, Aug. 15, 2023 (GLOBE NEWSWIRE) -- Earthstone Energy, Inc. (NYSE: ESTE) (“Earthstone”, the “Company”), today announced the closing of the acquisition of the northern Delaware Basin assets of Novo Oil & Gas Holdings, LLC (“Novo”).

Concurrent with the closing of the Novo acquisition, the Company also announced the effectiveness of an amendment to the Company’s senior secured credit facility, which increases the elected borrowing base commitments from $1.45 billion to $1.75 billion and increases the borrowing base from $1.65 billion to $2.0 billion.

Management Comments

Robert J. Anderson, President and Chief Executive Officer of Earthstone, stated, “We are excited to incorporate Novo’s assets into Earthstone’s premier northern Delaware position. A key piece of our strategy has been to grow our northern Delaware Basin footprint. In February of 2022, we acquired the assets of Chisholm and then added to that position with the acquisition of Titus last August. Adding the Novo assets further shifts our focus on the prolific northern Delaware Basin. We expect most of our capital activity to be dedicated to this area in the future, with four of our five rigs focused on the northern Delaware Basin.”

Mr. Anderson continued, “Novo significantly enhances our scale and operational synergies with Earthstone’s estimated production profile for the fourth quarter to be over 130,000 Boepd. Novo will add over 200 high-return, de-risked low breakeven drilling locations, deepening our inventory and increasing our inventory life to 13 years. This production level propels us to be one of the top producers in the Permian SMID-Cap E&P group. We expect this transaction to meaningfully increase our 2024 EBITDAX but, more importantly, we expect to increase 2024 Free Cash Flow by more than 60%.”

About Earthstone

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 west Texas and New Mexico. Earthstone is listed on the New York Stock Exchange under the symbol “ESTE.” For more information, visit Earthstone’s website at www.earthstoneenergy.com.