8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549 

FORM 8-K 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report: February March 10, 2021

(Date of earliest event reported)

 

EARTHSTONE ENERGY, INC.

(Exact name of registrant as specified in its charter)

Delaware	001-35049	84-0592823
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1400 Woodloch Forest Drive, Suite 300

The Woodlands, Texas 77380

(Address of principal executive offices) (Zip Code)

(281) 298-4246

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, $0.001 par value per share	ESTE	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 2.02 Results of Operations and Financial Condition.

On March 10, 2021, Earthstone Energy, Inc. (the “Company”) issued a press release announcing its financial and operating results for the fourth quarter and full year ended December 31, 2020. A copy of the press release is furnished herewith as Exhibit 99.1.

The information in this Current Report on Form 8-K furnished pursuant to Item 2.02, including Exhibit 99.1, shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liability under that section, and they shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 7.01 Regulation FD Disclosure.

On March 10, 2021, the Company posted to its website a company presentation (the “Presentation Materials”) that management intends to use from time to time. The Company may use the Presentation Materials, possibly with modifications, in presentations to current and potential investors, lenders, creditors, vendors, customers and others with an interest in the Company and its business.

The information contained in the Presentation Materials is summary information that should be considered in the context of the Company’s filings with the Securities and Exchange Commission and other public announcements that the Company may make by press release or otherwise from time to time. The Presentation Materials speak as of the date of this Current Report on Form 8-K. While the Company may elect to update the Presentation Materials in the future or reflect events and circumstances occurring or existing after the date of this Current Report on Form 8-K, the Company specifically disclaims any obligation to do so. The Presentation Materials are furnished herewith as Exhibit 99.2 to this Current Report on Form 8-K and are incorporated herein by reference.

The information in this Current Report on Form 8-K furnished pursuant to Item 7.01, including Exhibit 99.2, shall not be deemed to be “filed” for the purposes of Section 18 of the Exchange Act or otherwise subject to liability under that section, and it shall not be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. By filing this Current Report on Form 8-K and furnishing this information pursuant to Item 7.01, the Company makes no admission as to the materiality of any information in this Current Report on Form 8-K, including Exhibit 99.2, that is required to be disclosed solely by Regulation FD.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

The following exhibits are included with this Current Report on Form 8-K:

Exhibit No.	Description
99.1	Press Release dated March 10, 2021.
99.2	Presentation Materials dated March 10, 2021.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURE

    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		EARTHSTONE ENERGY, INC.
Date:	March 10, 2021	By:	/s/ Tony Oviedo
			Tony Oviedo
			Executive Vice President - Accounting and Administration

EX-99.1

Exhibit 99.1

Earthstone Energy, Inc. Reports

2020 Fourth Quarter and Full Year Results

The Woodlands, Texas, March 10, 2021 – Earthstone Energy, Inc. (NYSE: ESTE) (“Earthstone”, the “Company”, “we” or “us”), today announced financial and operating results for the quarter and year ended December 31, 2020.

Fourth Quarter 2020 Highlights

•Signed Purchase and Sale Agreement on the IRM Acquisition(1) on December 17, 2020 which was closed on January 7, 2021

•Average daily production of 14,809 Boepd(2)

•Adjusted EBITDAX(3) of $29.8 million ($21.87 per Boe)

•Operating portion of net cash received in settlement of derivative contracts of $8.4 million

•Free Cash Flow(3) of $8.4 million

•Capital expenditures of $20.3 million

•Reduction of long-term debt of $15.0 million

•Net loss of $18.4 million or $0.28 per Adjusted Diluted Share(3)

◦Adjusted net income of $5.8 million or $0.09 per Adjusted Diluted Share(3)

Full Year 2020 Highlights

•Average daily production of 15,276 Boepd(2)

•Adjusted EBITDAX(2) of $144.2 million ($25.80 per Boe)

•Operating portion of net cash received in settlement of derivative contracts of $56.0 million

•Free Cash Flow(2) of $72.2 million

•Capital expenditures of $66.8 million

•Reduction of long-term debt of $55.0 million

•Net loss of $29.4 million or $0.45 per Adjusted Diluted Share(3)

◦Adjusted net income of $30.0 million or $0.46 per Adjusted Diluted Share(3)

(1)On January 7, 2021, Earthstone, Earthstone Energy Holdings, LLC, a subsidiary of the Company, Independence Resources Holdings, LLC, and Independence Resources Manager, LLC executed a Purchase and Sale Agreement dated December 17, 2020 (the “IRM Acquisition”).

(2)Represents reported sales volumes.

(3)See “Non-GAAP Financial Measures” section below.

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Management Comments

Mr. Robert J. Anderson, President and CEO of Earthstone, commented, “In 2020, Earthstone achieved excellent results and delivered on its commitment to maintain balance sheet strength, operating efficiency and a persistent focus on identifying strategic and accretive growth opportunities.We overcame the unprecedented challenges of 2020 and finished the year in stronger position by managing to increase total production 14% and hold Adjusted EBITDAX almost flat compared to 2019, all while reducing our capital expenditures by 68% and utilizing free cash flow to reduce leverage, defined as total debt to Adjusted EBITDAX, from 1.2x in 2019 to 0.8x in 2020.

“By completing the acquisition of Independence Resource Management, LLC (“IRM”) on January 7, 2021, we have increased our scale with complementary and accretive assets that, similar to our existing assets, carry a low-cost structure in order to further drive free cash flow generation and with drilling inventory that will deliver attractive returns in 2021. We intend to execute on our goals to maintain financial strength, capital efficiency and operating excellence while continuing to seek further strategic growth opportunities.”

Operational Update

The Company recently commenced its 2021 drilling program with the deployment of a rig in Midland County.After drilling on a three-well pad in the Hamman project, the Company expects to drill a four-well pad on the recently acquired IRM Spanish Pearl project.The Company anticipates moving the rig to Upton County and drilling 10-11 wells.Consistent with previously released guidance, the Company anticipates drilling 16 gross / 14.8 net operated wells and spudding an additional 5 gross / 3.7 net operated wells during 2021.

The Company recently completed 5 gross / 3.7 net wells in Upton County and anticipates turning these wells to sales before the end of March.The Company anticipates completing and turning to sales a total of 16 gross / 13.5 net operated wells in 2021, as is consistent with previously released guidance.

The unprecedented weather in February created production challenges for all facets of the industry including producers, mid-stream and gathering companies and refiners. While production has returned to previous levels, we do expect that production and revenue reductions will have an impact on first quarter results.

Selected Financial Data (unaudited)

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($000s except where noted)	Three Months Ended				Years Ended
	December 31,				December 31,
	2020		2019		2020		2019
Total revenues	$	36,675	$	66,788	$	144,523	$	191,262
Lease operating expense	7,160		8,198		29,131		28,683
General and administrative expense (excluding stock-based compensation)	6,229		5,696		18,179		18,963
Stock-based compensation (non-cash)	2,389		1,968		10,054		8,648
General and administrative expense	$	8,618	$	7,664	$	28,233	$	27,611
Net (loss) income	$	(18,381)	$	(5,640)	$	(29,434)	$	1,580
Less: Net (loss) income attributable to noncontrolling interest	(9,910)		(3,016)		(15,887)		861
Net (loss) income attributable to Earthstone Energy, Inc.	(8,471)		(2,624)		(13,547)		719
Net (loss) income per common share(1)
Basic	(0.28)		(0.09)		(0.45)		0.02
Diluted	(0.28)		(0.09)		(0.45)		0.02
Adjusted EBITDAX(2)	$	29,798	$	49,893	$	144,246	$	146,273
Production(3):
Oil (MBbls)	660		1,059		3,180		3,086
Gas (MMcf)	2,251		1,442		7,282		4,760
NGL (MBbls)	327		317		1,198		1,022
Total (MBoe)(4)	1,362		1,617		5,591		4,902
Average Daily Production (Boepd)	14,809		17,571		15,276		13,429
Average Prices:
Oil ($/Bbl)	41.43		56.92		37.85		55.71
Gas ($/Mcf)	1.65		1.24		1.18		0.82
NGL ($/Bbl)	17.18		14.92		13.03		15.09
Total ($/Boe)	26.92		41.31		25.85		39.02
Adj. for Realized Derivatives Settlements:
Oil ($/Bbl)	54.21		58.67		54.95		59.82
Gas ($/Mcf)	1.67		1.48		1.42		1.49
NGL ($/Bbl)	17.18		14.92		13.03		15.09
Total ($/Boe)	33.15		42.68		35.89		42.26
Operating Margin per Boe
Average realized price(5)	$	26.92	$	41.31	$	25.85	$	39.02
Lease operating expense	5.26		5.07		5.21		5.85
Production and ad valorem taxes	1.62		2.39		1.68		2.42
Operating margin per Boe	20.04		33.85		18.96		30.75
Realized hedge settlements	6.23		1.37		10.04		3.24
Operating margin per Boe (including realized hedge settlements)	$	26.27	$	35.22	$	29.00	$	33.99

(1)Net (loss) income per common share attributable to Earthstone Energy, Inc.

(2)See “Non-GAAP Financial Measures” section below.

(3)Represents reported sales volumes.

(4)Barrels of oil equivalent have been calculated on the basis of six thousand cubic feet (Mcf) of natural gas equals one barrel of oil equivalent (Boe).

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(5)Includes $2.1 million of cash proceeds related to hedges unwound during the first quarter of 2019.

Liquidity Update

As of December 31, 2020, we had $1.5 million in cash and $115 million of long-term debt outstanding under our credit facility with a borrowing base of $240 million. With the $125 million of undrawn borrowing base capacity and $1.5 million in cash, we had total liquidity of approximately $126.5 million.

On January 7, 2021, Earthstone closed the IRM Acquisition. When adjusting to include the IRM Acquisition, we had an estimated $15.3 million in cash and $260 million outstanding under our credit facility, as amended, with a borrowing base of $360 million. With the $100 million of undrawn borrowing base capacity and $15.3 million in cash, we had total liquidity of approximately $115.3 million on a combined basis. When adjusted to include the impact of the IRM Acquisition, combined leverage at December 31, 2020 was 1.2x.

As of March 1, 2021, we had $10.1 million in cash and $227.5 million of long-term debt outstanding under our credit facility, as amended, with a borrowing base of $360 million. With the $132.5 million of undrawn borrowing base capacity and $10.1 million in cash, we had total liquidity of approximately $142.6 million.

Capital Expenditures

During 2020, we incurred capital expenditures of approximately $66.8 million, on an accrual basis, primarily consisting of drilling and completion costs. We recently commenced our drilling program with the deployment of a rig this month and we expect to spend $90-$100 million in total capital expenditures based on our current 2021 capital spending plan.

Hedge Position

Hedging Activities

The following table sets forth our outstanding derivative contracts at December 31, 2020. When aggregating multiple contracts, the weighted average contract price is disclosed.

Period	Commodity	Volume (Bbls / MMBtu)	Price ($/Bbl / $/MMBtu)
2021	Crude Oil Swap	2,294,000	$51.17
2021	Crude Oil Basis Swap (1)	1,825,000	$1.05
2022	Crude Oil Swap	365,000	$47.70
2021	Natural Gas Swap	4,380,000	$2.76
2021	Natural Gas Basis Swap (2)	4,380,000	$(0.45)

(1)The basis differential price is between WTI Midland Argus Crude and the WTI NYMEX.

(2)The basis differential price is between W. Texas (WAHA) and the Henry Hub NYMEX.

Upon closing of the IRM Acquisition on January 7, 2021, Earthstone assumed the hedges that IRM had in place consisting of approximately 1,008,950 Bbls of oil at $41.07/Bbl.

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Hedging Update

The following table sets forth our outstanding derivative contracts at March 4, 2021. When aggregating multiple contracts, the weighted average contract price is disclosed.

Period	Commodity	Volume (Bbls / MMBtu)	Price ($/Bbl / $/MMBtu)
2021	Crude Oil Swap	3,326,750	$48.04
2021	Crude Oil Basis Swap (1)	2,857,750	$0.79
2021	Crude Oil Basis Swap (2)	1,032,750	$(0.26)
2022	Crude Oil Swap	1,458,500	$52.96
2022	Crude Oil Basis Swap (1)	1,368,750	$0.74
2021	Natural Gas Swap	6,912,000	$2.81
2021	Natural Gas Basis Swap (3)	6,912,000	$(0.37)
Q1 2022	Natural Gas Swap	450,000	$2.97
Q1 2022	Natural Gas Basis Swap (3)	450,000	$(0.23)

(1)    The basis differential price is between WTI Midland Argus Crude and the WTI NYMEX.

(2)    The swap is between WTI Roll and the WTI NYMEX.

(3)    The basis differential price is between W. Texas (WAHA) and the Henry Hub NYMEX.

Conference Call Details

Earthstone is hosting a conference call on Thursday, March 11, 2021 at 10:00 a.m. Eastern (9:00 a.m. Central) to discuss the Company’s operations and financial results for the fourth quarter and full year 2020 and its outlook for 2021. Prepared remarks by Robert J. Anderson, President and Chief Executive Officer, Mark Lumpkin, Jr., Executive Vice President and Chief Financial Officer and Steven C. Collins, Executive Vice President, Operations, will be followed by a question-and-answer session.

Investors and analysts are invited to participate in the call by dialing 877-407-6184 for domestic calls or 201-389-0877 for international calls, in both cases asking for the Earthstone conference call. A webcast will also be available through the Company's website (www.earthstoneenergy.com). Please select "Events & Presentations" under the "Investors" section of the Company's website and log on at least 10 minutes in advance to register.

A replay of the call will be available on the Company’s website and by telephone until 10:00 a.m. Eastern (9:00 a.m. Central), Thursday, March 25, 2021. The number for the replay is 877-660-6853 for domestic calls or 201-612-7415 for international calls, using Replay ID: 13717242.

About Earthstone Energy, Inc.

Earthstone Energy, Inc. is a growth-oriented, independent energy company engaged in acquisition, development and operation of oil and natural gas properties. The Company’s assets are located in the Midland Basin of west Texas and the Eagle Ford trend of south Texas. Earthstone is listed on the NYSE under the symbol “ESTE”. For more information, visit the Company’s website at www.earthstoneenergy.com.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Statements that are not strictly historical statements constitute forward-looking statements and may often, but not always, be identified by the use of such words such as “expects,” “believes,” “intends,” “anticipates,” “plans,” “estimates,” “guidance,” “target,” “potential,” “possible,” or “probable” or statements that certain actions, events or results “may,” “will,” “should,” or “could” be taken, occur or be achieved. Forward-looking statements are based on current expectations and assumptions and analyses made by Earthstone and its

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management in light of experience and perception of historical trends, current conditions and expected future developments, as well as other factors appropriate under the circumstances that involve various risks and uncertainties that could cause actual results to differ materially from those reflected in the statements. These risks include, but are not limited to, those set forth in Earthstone’s annual report on Form 10-K for the year ended December 31, 2020 and other Securities and Exchange Commission filings. Earthstone undertakes no obligation to revise or update publicly any forward-looking statements except as required by law.

Contact

Mark Lumpkin, Jr.

Executive Vice President – Chief Financial Officer

Earthstone Energy, Inc.

1400 Woodloch Forest Drive, Suite 300

The Woodlands, TX 77380

281-298-4246

mark.lumpkin@earthstoneenergy.com

Scott Thelander

Vice President of Finance

Earthstone Energy, Inc.

1400 Woodloch Forest Drive, Suite 300

The Woodlands, TX 77380

281-298-4246

scott@earthstoneenergy.com

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EARTHSTONE ENERGY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In thousands, except share and per share amounts)

	December 31,
ASSETS	2020		2019
Current assets:
Cash	$	1,494	$	13,822
Accounts receivable:
Oil, natural gas, and natural gas liquids revenues	16,255		29,047
Joint interest billings and other, net of allowance of $19 and $83 at December 31, 2020 and 2019, respectively	7,966		6,672
Derivative asset	7,509		8,860
Prepaid expenses and other current assets	1,509		1,867
Total current assets	34,733		60,268
Oil and gas properties, successful efforts method:
Proved properties	1,017,496		970,808
Unproved properties	233,767		260,271
Land	5,382		5,382
Total oil and gas properties	1,256,645		1,236,461
Accumulated depreciation, depletion and amortization	(291,213)		(195,567)
Net oil and gas properties	965,432		1,040,894
Other noncurrent assets:
Goodwill	—		17,620
Office and other equipment, net of accumulated depreciation of $3,675 and $3,180 at December 31, 2020 and 2019, respectively	931		1,311
Derivative asset	396		770
Operating lease right-of-use assets	2,450		3,108
Other noncurrent assets	1,315		1,572
TOTAL ASSETS	$	1,005,257	$	1,125,543
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	6,232	$	25,284
Revenues and royalties payable	27,492		35,815
Accrued expenses	16,504		19,538
Asset retirement obligation	447		308
Derivative liability	1,135		6,889
Advances	2,277		11,505
Operating lease liability	773		570
Finance lease liability	69		206
Other current liability	565		43
Total current liabilities	55,494		100,158
Noncurrent liabilities:
Long-term debt	115,000		170,000
Asset retirement obligation	2,580		1,856
Derivative liability	173		—
Deferred tax liability	14,497		15,154
Operating lease liability	1,840		2,539
Finance lease liability	5		85
Other noncurrent liabilities	132		—
Total noncurrent liabilities	134,227		189,634

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Equity:
Preferred stock, $0.001 par value, 20,000,000 shares authorized; none issued or outstanding	—		—
Class A Common Stock, $0.001 par value, 200,000,000 shares authorized; 30,343,421 and 29,421,131 issued and outstanding at December 31, 2020 and 2019, respectively	30		29
Class B Common Stock, $0.001 par value, 50,000,000 shares authorized; 35,009,371 and 35,260,680 issued and outstanding at December 31, 2020 and 2019, respectively	35		35
Additional paid-in capital	540,074		527,246
Accumulated deficit	(195,258)		(181,711)
Total Earthstone Energy, Inc. equity	344,881		345,599
Noncontrolling interest	470,655		490,152
Total equity	815,536		835,751
TOTAL LIABILITIES AND EQUITY	$	1,005,257	$	1,125,543

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EARTHSTONE ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(In thousands, except share and per share amounts)

	Three Months Ended				Years Ended
	December 31,				December 31,
	2020		2019		2020		2019
REVENUES
Oil	$	27,338	$	60,268	$	120,355	$	171,925
Natural gas	3,712		1,787		8,567		3,913
Natural gas liquids	5,625		4,733		15,601		15,424
Total revenues	36,675		66,788		144,523		191,262
OPERATING COSTS AND EXPENSES
Lease operating expense	7,160		8,198		29,131		28,683
Production and ad valorem taxes	2,213		3,870		9,411		11,871
Rig idle and termination expense	—		—		426		—
Impairment expense	1,950		—		64,498		—
Depreciation, depletion and amortization	20,318		26,962		96,414		69,243
General and administrative expense	8,618		7,664		28,233		27,611
Transaction costs	946		279		622		1,077
Accretion of asset retirement obligation	170		54		307		214
Exploration expense	—		653		298		653
Total operating costs and expenses	41,375		47,680		229,340		139,352
Gain on sale of oil and gas properties, net	6		3,668		204		3,222
(Loss) income from operations	(4,694)		22,776		(84,613)		55,132
OTHER INCOME (EXPENSE)
Interest expense, net	(1,025)		(1,831)		(5,232)		(6,566)
Write-off of deferred financing costs	—		(1,242)		—		(1,242)
(Loss) gain on derivative contracts, net	(13,166)		(24,311)		59,899		(43,983)
Other income (expense), net	280		(95)		400		(96)
Total other (expense) income	(13,911)		(27,479)		55,067		(51,887)
(Loss) income before income taxes	(18,605)		(4,703)		(29,546)		3,245
Income tax benefit (expense)	224		(937)		112		(1,665)
Net (loss) income	(18,381)		(5,640)		(29,434)		1,580
Less:  Net (loss) income attributable to noncontrolling interest	(9,910)		(3,016)		(15,887)		861
Net (loss) income attributable to Earthstone Energy, Inc.	$	(8,471)	$	(2,624)	$	(13,547)	$	719
Net (loss) income per common share attributable to Earthstone Energy, Inc.:
Basic	$	(0.28)	$	(0.09)	$	(0.45)	$	0.02
Diluted	$	(0.28)	$	(0.09)	$	(0.45)	$	0.02
Weighted average common shares outstanding:
Basic	30,212,191		29,278,455		29,911,625		28,983,354
Diluted	30,212,191		29,278,455		29,911,625		29,360,885

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EARTHSTONE ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(In thousands)

	For the Years Ended December 31,
	2020		2019
Cash flows from operating activities:
Net (loss) income	$	(29,434)	$	1,580
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Impairment of proved and unproved oil and gas properties	46,878		—
Depreciation, depletion and amortization	96,414		69,243
Accretion of asset retirement obligations	307		214
Impairment of Goodwill	17,620		—
Gain on sale of oil and gas properties, net	(204)		(3,222)
Settlement of asset retirement obligations	(195)		(374)
Total (gain) loss on derivative contracts, net	(59,899)		43,983
Operating portion of net cash received in settlement of derivative contracts	56,044		15,866
Stock-based compensation	10,054		8,648
Deferred income taxes	(657)		1,665
Write-off of deferred financing costs	—		1,242
Amortization of deferred financing costs	322		412
Changes in assets and liabilities:
(Increase) decrease in accounts receivable	11,914		(18,035)
(Increase) decrease in prepaid expenses and other current assets	(203)		66
Increase (decrease) in accounts payable and accrued expenses	481		(10,438)
Increase (decrease) in revenues and royalties payable	(8,323)		7,067
Increase (decrease) in advances	(9,617)		8,331
Net cash provided by operating activities	131,502		126,248
Cash flows from investing activities:
Additions to oil and gas properties	(88,097)		(204,268)
Additions to office and other equipment	(114)		(527)
Proceeds from sales of oil and gas properties	414		4,184
Net cash used in investing activities	(87,797)		(200,611)
Cash flows from financing activities:
Proceeds from borrowings	136,056		234,680
Repayments of borrowings	(191,056)		(143,508)
Cash paid related to the exchange and cancellation of Class A Common Stock	(836)		(1,135)
Cash paid for finance leases	(130)		(392)
Deferred financing costs	(67)		(1,836)
Net cash (used in) provided by financing activities	(56,033)		87,809
Net increase (decrease) in cash	(12,328)		13,446
Cash at beginning of period	13,822		376
Cash at end of period	$	1,494	$	13,822
Supplemental disclosure of cash flow information
Cash paid for:
Interest	$	4,588	$	6,405
Non-cash investing and financing activities:
Accrued capital expenditures	$	7,328	$	28,356
Lease asset additions - ASC 842	$	—	$	3,722
Asset retirement obligations	$	762	$	105

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Earthstone Energy, Inc.
Non-GAAP Financial Measures
Unaudited

The non-GAAP financial measures of Adjusted Diluted Shares, Adjusted EBITDAX, Adjusted Net Income, All-In Cash Costs, Free Cash Flow and Operating Margin per Boe, as defined and presented below, are intended to provide readers with meaningful information that supplements our financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). Further, these non-GAAP measures should only be considered in conjunction with financial statements and disclosures prepared in accordance with GAAP and should not be considered in isolation or as a substitute for GAAP measures, such as net income or loss, operating income or loss or any other GAAP measure of financial position or results of operations. Adjusted EBITDAX and Adjusted Net Income are presented herein and reconciled from the GAAP measure of net (loss) income because of its wide acceptance by the investment community as a financial indicator.

I. Adjusted Diluted Shares

We define “Adjusted Diluted Shares” as the weighted average shares of Class A Common Stock - Diluted outstanding plus the weighted average shares of Class B Common Stock outstanding.

Our Adjusted Diluted Shares measure provides a comparable per share measurement when presenting results such as Adjusted EBITDAX and Adjusted Net Income that include the interests of both Earthstone and the noncontrolling interest. Adjusted Diluted Shares is used in calculating several metrics that we use as supplemental financial measurements in the evaluation of our business, none of which should be considered as an alternative to, or more meaningful than, net income as an indicator of operating performance.

Adjusted Diluted Shares for the periods indicated:

	Three Months Ended		Years Ended
	December 31,		December 31,
	2020	2019	2020	2019
Class A Common Stock - Diluted	30,212,191	29,278,455	29,911,625	29,360,885
Class B Common Stock	35,009,371	35,288,526	35,077,711	35,395,021
Adjusted Diluted Shares	65,221,562	64,566,981	64,989,336	64,755,906

II. Adjusted EBITDAX

The non-GAAP financial measure of Adjusted EBITDAX (as defined below), as calculated by us below, is intended to provide readers with meaningful information that supplements our financial statements prepared in accordance with GAAP. Further, this non-GAAP measure should only be considered in conjunction with financial statements and disclosures prepared in accordance with GAAP and should not be considered in isolation or as a substitute for GAAP measures, such as net income or loss, operating income or loss or any other GAAP measure of financial position or results of operations. Adjusted EBITDAX is presented herein and reconciled from the GAAP measure of net (loss) income because of its wide acceptance by the investment community as a financial indicator.

We define “Adjusted EBITDAX” as net (loss) income plus, when applicable, accretion of asset retirement obligations; impairment expense; depletion, depreciation and amortization; interest expense, net; transaction costs; (gain) loss on sale of oil and gas properties, net; exploration expense; unrealized loss (gain) on derivative contracts; stock-based compensation (non-cash); and income tax expense.

Our Adjusted EBITDAX measure provides additional information that may be used to better understand our operations. Adjusted EBITDAX is one of several metrics that we use as a supplemental financial measurement in the evaluation of our business and should not be considered as an alternative to, or more meaningful than, net (loss)

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income as an indicator of operating performance. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic cost of depreciable and depletable assets. Adjusted EBITDAX, as used by us, may not be comparable to similarly titled measures reported by other companies. We believe that Adjusted EBITDAX is a widely followed measure of operating performance and is one of many metrics used by our management team and by other users of our consolidated financial statements. For example, Adjusted EBITDAX can be used to assess our operating performance and return on capital in comparison to other independent exploration and production companies without regard to financial or capital structure and to assess the financial performance of our assets and our company without regard to capital structure or historical cost basis.

The following table provides a reconciliation of Net (loss) income to Adjusted EBITDAX for the periods indicated:

($000s)	Three Months Ended				Years Ended
	December 31,				December 31,
	2020		2019		2020		2019
Net (loss) income	$	(18,381)	$	(5,640)	$	(29,434)	$	1,580
Accretion of asset retirement obligations	170		54		307		214
Impairment expense	1,950		—		64,498		—
Depletion, depreciation and amortization	20,318		26,962		96,414		69,243
Interest expense, net	1,025		1,831		5,232		6,566
Transaction costs	946		279		622		1,077
Gain on sale of oil and gas properties, net	(6)		(3,668)		(204)		(3,222)
Rig idle and termination expense	—		—		426		—
Exploration expense	—		653		298		653
Unrealized loss (gain) on derivative contracts	21,611		26,517		(3,855)		59,849
Stock-based compensation (non-cash)(1)	2,389		1,968		10,054		8,648
Income tax (benefit) expense	(224)		937		(112)		1,665
Adjusted EBITDAX	$	29,798	$	49,893	$	144,246	$	146,273

(1)Included in General and administrative expense in the Condensed Consolidated Statements of Operations.

III. Adjusted Net Income

We define “Adjusted Net Income” as net (loss) income plus, when applicable, unrealized loss (gain) on derivative contracts; impairment expense; (gain) loss on sale of oil and gas properties; write-off of deferred financing costs; transaction costs; and the associated changes in estimated income tax.

Our Adjusted Net Income measure provides additional information that may be used to further understand our operations. Adjusted Net Income is one of several metrics that we use as a supplemental financial measurement in the evaluation of our business and should not be considered as an alternative to, or more meaningful than, net (loss) income as an indicator of operating performance. Certain items excluded from Adjusted Net Income are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic cost of depreciable and depletable assets. Adjusted Net Income, as used by us, may not be comparable to similarly titled measures reported by other companies. We believe that Adjusted Net Income is a widely followed measure of operating performance and is one of many metrics used by our management team and by other users of our consolidated financial statements. For example, Adjusted Net Income can be used to assess our operating performance and return on capital in comparison to other independent exploration and production companies without regard to financial or capital structure and to assess the financial performance of our assets and our company without regard to capital structure or historical cost basis.

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The following table provides a reconciliation of Net (loss) income to Adjusted Net Income for the periods indicated:

($000s, except per share data)	Three Months Ended				Years Ended
	December 31,				December 31,
	2020		2019		2020		2019
Net (loss) income	$	(18,381)	$	(5,640)	$	(29,434)	$	1,580
Unrealized loss (gain) on derivative contracts	21,611		26,517		(3,855)		59,849
Impairment expense	1,950		—		64,498		—
Gain on sale of oil and gas properties	(6)		(3,668)		(204)		(3,222)
Write-off of deferred financing costs	—		1,242		—		1,242
Transaction costs	946		279		622		1,077
Income tax effect of the above	(298)		(500)		(1,611)		(1,210)
Adjusted Net Income	$	5,822	$	18,230	$	30,016	$	59,316
Adjusted Diluted Shares	65,221,562		64,566,981		64,989,336		64,755,906
Adjusted Net Income per Adjusted Diluted Share	$	0.09	$	0.28	$	0.46	$	0.92

IV. All-In Cash Costs

We define “All-In Cash Costs” as lease operating expenses plus production and ad valorem taxes, interest expense and general and administrative expense (excluding stock-based compensation).

Our All-In Cash Costs measure provides additional information that may be used to further understand our total cost of production. We use All-In Cash Costs as a supplemental financial measurement in the evaluation of our operational performance. We believe that investors benefit from having access to the same financial measures that our management uses in evaluating our results. All-In Cash Costs should not be considered as an alternative to, or more meaningful than, net (loss) income as an indicator of operating performance. All-In Cash Costs, as used by us, may not be comparable to similarly titled measures reported by other companies.

All-In Cash Costs for the periods indicated:

($000s, except per Boe data)	Three Months Ended				Years Ended
	December 31,				December 31,
	2020		2019		2020		2019
Lease operating expense	$	7,160	$	8,198	$	29,131	$	28,683
Production and ad valorem taxes	2,213		3,870		9,411		11,871
Interest expense, net	1,025		1,831		5,232		6,566
General and administrative expense (excluding stock-based compensation)	6,229		5,696		18,179		18,963
All-In Cash Costs	$	16,627	$	19,595	$	61,953	$	66,083
Total production (MBoe)(1)(2)	1,362		1,617		5,591		4,902
All-In Cash Costs per Boe	$	12.20	$	12.12	$	11.08	$	13.48

(1)Represents reported sales volumes.

(2)Barrels of oil equivalent have been calculated on the basis of six thousand cubic feet (Mcf) of natural gas equals one barrel of oil equivalent (Boe).

V. Free Cash Flow

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Free cash flow is a measure that we use as an indicator of our ability to fund our development activities. We define free cash flow as Adjusted EBITDAX (defined above), less interest expense, less accrual-based capital expenditures.

($000s)	Three Months Ended				Years Ended
	December 31,				December 31,
	2020		2019		2020		2019
Adjusted EBITDAX	$	29,798	$	49,893	$	144,246	$	146,273
Interest expense, net	(1,025)		(1,831)		(5,232)		(6,566)
Capital expenditures (accrual basis)	(20,346)		(58,032)		(66,788)		(210,430)
Free Cash Flow	$	8,427	$	(9,970)	$	72,226	$	(70,723)

VI. Operating Margin per Boe and Operating Margin per Boe (including realized hedge settlements)

Operating Margin per Boe is a non-GAAP financial measure that we use to evaluate our operating performance on a per Boe basis. We define Operating Margin per Boe as average realized price per Boe minus lease operating expense per BOE and production and ad valorem taxes per Boe. Operating Margin per Boe (including realized hedge settlements) is calculated as the sum of Operating Margin per Boe and Realized hedge settlements per Boe.

Our Operating Margin per Boe measure provides additional information that may be used to further understand our operating margins. We use Operating Margin per Boe as a supplemental financial measurement in the evaluation of our operational performance. We believe that investors benefit from having access to the same financial measures that our management uses in evaluating our results. Operating Margin per Boe should not be considered as an alternative to, or more meaningful than, net (loss) income as an indicator of operating performance. Operating Margin per Boe, as used by us, may not be comparable to similarly titled measures reported by other companies.

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EX-99.2

1 Investor Presentation March 10, 2021 Exhibit 99.2

2 Disclaimer Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Statements that are not strictly historical statements constitute forward-looking statements and may often, but not always, be identified by the use of such words such as “expects,” “believes,” “intends,” “anticipates,” “plans,” “estimates,” “forecasts”, “guidance,” “target,” “potential,” “possible,” or “probable” or statements that certain actions, events or results “may,” “will,” “should,” or “could” be taken, occur or be achieved. The forward-looking statements include statements about, among other thins, the expected future reserves, production, financial position, business strategy, revenues, earnings, costs, capital expenditures and debt levels of the Company, and plans and objectives of management for future operations. Forward-looking statements are based on current expectations and assumptions and analyses made by Earthstone and its management in light of experience and perception of historical trends, current conditions and expected future developments, as well as other factors appropriate under the circumstances. However, whether actual results and developments will conform to expectations is subject to a number of material risks and uncertainties, including but not limited to: substantial declines in oil, natural gas liquids or natural gas prices; exposure to financial counterparty credit risk related to our derivative transactions; risks relating to any unforeseen liabilities; the level of success in exploration, development and production activities; adverse weather conditions that may negatively impact development or production activities; the timing of exploration and development expenditures; inaccuracies of reserve estimates or assumptions underlying them; revisions to reserve estimates as a result of changes in commodity prices; impacts to financial statements as a result of impairment write-downs; risks related to levels of indebtedness and periodic redeterminations of the borrowing base under the Company’s credit facility; Earthstone’s ability to generate sufficient cash flows from operations to meet the internally funded portion of its capital expenditures budget; Earthstone’s ability to obtain external capital to finance exploration and development operations and acquisitions; the ability to successfully complete any potential acquisitions and the risks related thereto; including unforeseen liabilities; the impacts of hedging on results of operations; uninsured or underinsured losses resulting from oil and natural gas operations; Earthstone’s ability to replace oil and natural gas reserves; any loss of senior management or key technical personnel; and the direct and indirect impact on most or all of the foregoing on the evolving COVID-19 pandemic. Earthstone’s 2020 Annual Report on Form 10-K and subsequent, quarterly reports on Form 10-Q and current reports on Form 8-K, and other Securities and Exchange Commission (“SEC”) filings discuss some of the important risk factors identified that may affect Earthstone’s business, results of operations, and financial condition. Earthstone undertakes no obligation to revise or update publicly any forward-looking statements except as required by law. This presentation contains Earthstone’s 2021 production, capital expenditure and operating expense guidance. The actual levels of production, capital expenditures and operating expenses may be higher or lower than these estimates due to, among other things, uncertainty in drilling schedules, oil and natural gas prices, changes in market demand for hydrocarbons and unanticipated delays in production. These estimates are based on numerous assumptions. All or any of these assumptions may not prove to be accurate, which could result in actual results differing materially from estimates. No assurance can be made that any new wells will produce in line with historical performance, or that existing wells will continue to produce in line with Earthstone’s expectations. Earthstone’s ability to fund its 2021 and future capital budgets is subject to numerous risks and uncertainties, including volatility in commodity prices and the potential for unanticipated increases in costs associated with drilling, production and transportation. For additional discussion of the factors that may cause us not to achieve our production estimates, see Earthstone’s filings with the SEC, including its 2020 Form 10-K, subsequent Form 10-Qs and Form 8-Ks. We do not undertake any obligation to release publicly the results of any future revisions we may make to this prospective data or to update the data to reflect events or circumstances after the date of this presentation. Therefore, you are cautioned not to place undue reliance on the information in this presentation. Industry and Market Data This presentation has been prepared by Earthstone and includes market data and other statistical information from third-party sources, including independent industry publications, government publications or other published independent sources. Although Earthstone believes these third-party sources are reliable as of their respective dates, Earthstone has not independently verified the accuracy or completeness of this information. Some data are also based on Earthstone’s good faith estimates, which are derived from its review of internal sources as well as the third-party sources described above. Estimated Ultimate Recovery and Locations Management’s use of the term estimated ultimate recovery (“EUR”) in this presentation describes estimates of potentially recoverable hydrocarbons that the SEC rules prohibit from being included in filings with the SEC. These are more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of being actually realized, particularly in areas or zones where there has been limited or no drilling history. We include EUR to demonstrate what we believe to be the potential for future drilling and production by Earthstone. Actual quantities that may be ultimately recovered may differ substantially from estimates. Factors affecting ultimate recovery include the scope of the operators' ongoing drilling programs, which will be directly affected by the availability of capital, drilling and production costs, availability of drilling services and equipment, drilling results, lease expirations, transportation constraints, regulatory approvals and other factors, and actual drilling results, including geological and mechanical factors affecting recovery rates. Estimates of potential resources may also change significantly as the development of the properties underlying Earthstone's mineral interests provides additional data. This presentation also contains Earthstone’s internal estimates of its potential drilling locations, which may prove to be incorrect in a number of material ways. The actual number of locations that may be drilled may differ substantially from estimates.

3 Investment Highlights: Leading Small-Cap, Permian Focused Producer Top Investment Criteria Earthstone’s Qualifications Basin & Acreage Position ✓ High quality, Midland Basin acreage position enhanced by recent acquisition Low Leverage Supported by Free Cash Flow ✓ 1.2x pro forma leverage for 2020 (0.8x standalone) (1) supported by substantial free cash flow(2) Strong Liquidity ✓ $115 million pro forma liquidity (cash + undrawn availability) on borrowing base as of 12/31/20(3) High Commodity Price Protection ✓ ~85% of 2021 oil production hedged (4) High Margin, Low Cost Production ✓ Leading cash margins & low cost structure with $11.08 per BOE of all- in cash costs(5) in FY 2020 Commitment & Focus ✓ “Do the right thing” commitment to stakeholders, employees and environment (1) Leverage reflects 12/31/20 total debt / 2020 Adjusted EBITDAX; pro forma leverage represents Earthstone leverage at 12/31/20 as adjusted for the closing of the IRM acquisition on 1/7/21 (2) Free cash flow defined as Adjusted EBITDAX less interest expense less capital expenditures (3) Liquidity based on 12/31/20 ESTE debt and cash balance with pro forma adjustments for acquisition of IRM (4) Based on midpoint of 2021 production guidance (5) All-in cash costs measured includes lease operating expenses, ad valorem and production taxes, cash G&A expense and interest expense. Excludes impact of income taxes

4 Proven Leadership and Track Record of Value Creation Operating team has extensive experience operating across various basins and in different operating environments Track Record of Value Creation 2007 2014 2017200520011992 20201997 1992-1996 Hampton Resources Corp. (“HPTR”) Gulf Coast Initial investors – 7x return 2Q 2017 Earthstone Acquired 20,900 Net Acres from Bold Energy III LLC in Midland Basin 2005-2007 Southern Bay Energy, LLC (Private) Gulf Coast, Permian Basin Initial Investors – 40% IRR 2014 Earthstone Bakken (662 Boe/d) Acquired Eagle Ford interests from Oak Valley Resources 1997-2001 Texoil, Inc. (“TXLI”) Gulf Coast, Permian Basin Initial investors – 10x return 2001-2004 AROC, Inc. (Private) Gulf Coast, Permian Basin, Mid-Con. Initial investors – 4x return 2007-2012 GeoResources, Inc. (“GEOI”) Eagle Ford, Bakken / Three Forks, Gulf Coast, Austin Chalk Initial investors – 4.8x return 2021 Leadership Team Years of Experience Years Working Together Title Frank Lodzinski 49 25 Executive Chairman Robert Anderson 34 17 President and CEO Steve Collins 33 25 Operations Mark Lumpkin 24 4 CFO Tim Merrifield 45 20 Geology and Geophysics Tony Oviedo 40 4 Accounting and Administration 1Q 2021 Earthstone Acquired Independence Resources in Midland Basin

5 (1) EIA historical WTI spot price average for full year 2019 and 2020 2020: Delivering Results During Oil Price Collapse -31% -68% -1%-16% +14% WTI Oil Price(1) CAPEX LOE Cash G&A Production EBITDAX -31% D/EBITDAX -11% Uncontrollable, Mitigated via Hedging Controllable via Proactive Response Results $56.99 $210.4 $5.85 $3.87 13,429 $146.3 1.2x $39.16 $66.8 $5.21 $3.25 15,276 $144.2 0.8x ($/bbl) ($mm) ($/boe) ($/boe) (boepd) ($mm) (x) 2019 2020

6 ($40) ($20) $0 $20 $40 $60 $80 $100 $120 $140 Feb-09 Feb-10 Feb-11 Feb-12 Feb-13 Feb-14 Feb-15 Feb-16 Feb-17 Feb-18 Feb-19 Feb-20 Feb-21 -25% -34% -29% -61% -47% -23%-37% -22% -43% -21% $110 $80 $70 $40 Post Financial Crisis – OPEC/Shale Standoff OPEC/Shale Standoff - Current Bear market every 17 months Bear market every 7 months  WTI trading in range of $40-70 per barrel vs. $80-110 per barrel since OPEC / Shale standoff commenced in 2H 2014, but with periods above and below trading range, including a historic price drop to negative territory in April 2020 — Industry re-geared cost structure, production flexibilities and improved efficiencies to create sustainability / profitability  Increased commodity cycle velocity: Bear market (-20% WTI price) has occurred every 7 months vs. every 17 months, including 4x since November 2018  Business strategy must account for lower oil price and higher volatility Oil Price Volatility Requires Focused Business Strategy WTI Crude Oil Spot Price Since 2009 Source: Factset data as of 3/5/2021 -23% -160%

7 Managing Through Oil Price Volatility Source: ESTE management, FactSet, public filings (1) Adjusted 3Q’2018 EBITDAX of $26.4MM includes a one-time legal settlement expense of ~$4.8MM; Annualized 3Q’2018 adjusted EBITDAX calculated by multiplying the pre-legal settlement 3Q’2018 adjusted EBITDAX of $31.2MM by three and adding $26.4MM (2) Reflects additions to oil and gas properties; excludes acquisitions (3) Liquidity defined as revolver availability + cash; Liquidity % defined as (revolver availability + cash) / borrowing base. Liquidity in 4Q20 pro forma for IRM acquisition May 2017 Acquired 20,900 Net Acres from Bold Energy, LLC in Midland Basin December 2015 Announces Acquisition of Lynden Energy Corp.; ESTE Enters the Midland Basin June 2016 $45MM Common Equity Offering October 2017 $40MM Common Equity Offering December 2017 Divested Bakken Assets for $27MM May 2020 Voluntarily curtailed ~60% of production 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 EBITDAX ($MM)(1) $5 $9 $8 $4 $2 $5 $3 $7 $5 $15 $19 $22 $25 $21 $26 $24 $32 $34 $30 $50 $38 $40 $36 $30 Capex ($MM)(2) $19 $29 $18 $3 $2 $4 $9 $13 $4 $6 $20 $39 $33 $35 $52 $30 $48 $31 $78 $58 $42 $3 $1 $20 Total Debt / LQA EBITDAX 0.5x 0.3x 0.4x 0.6x 1.4x 0.8x 1.3x 0.5x 0.7x 1.2x 1.0x 0.3x 0.3x 0.3x 0.3x 0.8x 0.9x 0.8x 1.0x 0.9x 1.0x 1.1x 0.9x 1.0x Liquidity ($MM)(3) $128 $113 $110 $92 $74 $84 $89 $80 $80 $97 $91 $183 $166 $207 $203 $197 $155 $221 $210 $169 $128 $108 $115 $115 Liquidity %(3) 160% 142% 137% 115% 93% 112% 118% 100% 100% 64% 61% 99% 90% 92% 90% 71% 56% 68% 65% 52% 47% 39% 48% 32% 3,849 4,517 4,646 3,872 3,576 3,759 3,979 4,685 4,735 7,932 9,671 9,071 9,664 8,845 10,766 10,454 11,209 12,699 12,181 17,571 15,767 13,555 16,959 14,809 0 4,000 8,000 12,000 16,000 20,000 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 T ot al D ai ly P ro du ct io n (B oe /d ) ($40) ($20) $0 $20 $40 $60 $80 W T I ($/Bbl)

8 Company Overview Midland Basin Asset Overview  The Woodlands, Texas based E&P company focused on development and production of oil and natural gas with current operations in the Midland Basin (~32,800 core net acres(1)) — Additional 38,500 net acres in the Midland Basin and 12,500 net acres in the Eagle Ford  Strategy of growing through the drill bit, organic leasing, and attractive asset acquisitions and business combinations  2020 4Q production of 22,128 Boe/d (53% oil, 76% liquids)(2) Market Statistics(3) (1) Includes ~4,900 core net acres from acquisition of IRM. Total Midland Basin ~71,300 net acres (2) Reflects 4Q20 Earthstone sales volumes and estimated IRM 4Q20 three-stream sales volumes (3) Class A and Class B Common Stock outstanding as of 3/4/21. Total ESTE debt and cash as of 12/31/20 pro forma for acquisition of IRM Production Summary(2) 4Q20 Net Sales Volumes: 22,128 Boe/d ESTE Operated ESTE Non-Operated ESTE (Legacy) 14,809 IRM 7,318 ($ in millions, except share price) Class A Common Stock (MM) 43.6 Class B Common Stock (MM) 34.4 Total Common Stock Outstanding (MM) 78.1 Stock Price (as of 3/8/21) $7.46 Market Capitalization $582.6 Plus: Total Debt (as of 12/31/20) $260.0 Less: Cash (as of 12/31/20) (15.3) Enterprise Value $827.3

9 Earthstone Overview

10 0.9x 0.4x 0.8x 1.2x 0.8x 1.2x YE16A YE17A YE18A YE19A FY20A PF FY20A $10.29 $6.84 $5.66 $5.85 $5.21 $6.43 $7.13 $5.81 $3.87 $3.25 $16.72 $13.97 $11.47 $9.72 $8.46 FY16A FY17A FY18A FY19A FY20A Lease Operating Expenses ($/Boe) Cash G&A ($/Boe) (1) Pro forma for acquisition of IRM (2) Excludes stock-based compensation Average Daily Production (Boe/d) Adjusted EBITDAX ($MM) Lease Operating Expense and Cash G&A(2) ($/Boe) Debt / Adjusted LTM EBITDAX  Since entering the Midland Basin in 2016, Earthstone has substantially increased production and decreased operating expenses, which has resulted in increased Adjusted EBITDAX, while also maintaining low leverage and preserving financial flexibility  Following the acquisition of IRM in January 2021, Earthstone is positioned to consolidate additional assets Midland Basin Growth Story (1) 1,180 4,696 7,999 11,846 13,681 22,128 4,002 7,869 9,937 13,429 15,276 22,128 FY16A FY17A FY18A FY19A FY20A PF 4Q20A Midland Basin Other (1) (1) $18.7 $60.6 $97.0 $146.3 $144.2 $223.0 FY16A FY17A FY18A FY19A FY20A PF FY20A

11 $24.81 $17.13 $17.99 $7.92 $8.35 $9.47 $11.94 $13.49 $13.90 $17.95 $20.85 $0.00 $15.00 $30.00 $45.00 ESTE Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 $11.08 $9.34 $10.12 $9.31 $10.56 $13.79 $13.85 $14.57 $15.54 $21.59 $21.72 $0.00 $10.00 $20.00 $30.00 $40.00 ESTE Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 LOE (incl Workovers) Ad Val. & Prod. Taxes Transportation Cash G&A Interest Expense FY20 All-in Cash Margin ($/Boe)(1) (1) All-in cash margin calculated on a per Boe basis as revenues after realized hedge impact less all-in cash costs, which consists of LOE, ad valorem and production taxes, transportation expense, cash G&A expense and interest expense. Excludes impact of income taxes. Cash G&A and interest expense includes expensing of capitalized cash G&A and capitalized interest expense, respectively. Companies that capitalized a portion of their cash G&A and/or interest expense include CDEV, CPE, FANG, MTDR and XEC (2) Large-Cap includes: FANG and PXD. SMid-Cap includes: BATL, CDEV, CPE, LPI, MTDR, REI, SM and XEC. REI based on YTD3Q20 financials given FY20 financials have not been reported Large-Cap(2) Avg: $9.73 SMid-Cap(2) Avg: $15.12 ESTE: $11.08 Low Cost Production Generates Leading Cash Margins FY20 All-in Cash Costs ($/Boe)(1) Large-Cap(2) Avg: $17.56 SMid-Cap(2) Avg: $12.98 ESTE: $24.81

12 4.9x 7.4x 7.5x 3.5x 4.0x 4.8x 5.6x 6.0x 6.4x 6.5x 6.8x – 3.0x 6.0x 9.0x 12.0x 15.0x ESTE Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 0.8x 1.2x 1.4x 2.9x 1.7x 2.3x 2.3x 2.3x 3.5x 4.0x 4.2x 4.4x – 2.0x 4.0x 6.0x 8.0x ESTE Pro Forma Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Leading Leverage Metrics but Undervalued Equity Trading 4Q20 Total Debt / FY20 EBITDAX Large-Cap(2) Avg: 2.2x SMid-Cap(2) Avg: 3.1x ESTE / PF IRM(1): 0.8x / 1.2x Enterprise Value to 2021E EBITDAX Large-Cap(2)(3) Avg: 7.4x SMid-Cap(2) Avg: 5.5x ESTE(1): 4.9x Source: Factset, Wall Street research. Market Data as of 3/8/21 (1) Pro forma for acquisition of IRM (2) Large-Cap includes: FANG and PXD. SMid-Cap includes: BATL, CDEV, CPE, LPI, MTDR, REI, SM and XEC. REI based on YTD3Q20 financials given FY20 financials have not been reported (3) Reflects PXD pro forma for its acquisition of PE and FANG pro forma for its announced acquisitions of QEP and Guidon (1)

13 1.7 1.8 2.4 4.5 3.0 - 5.0 FY17 FY18 FY19 FY20 2021E $926 $1,008 $845 $767 $670 $650 - $700 2H17 FY18 FY19 1Q20 4Q20 2021E Spud to Rig Release Days per 1,000’(1)(3) Average Number of Wells Per Pad  A continued focus on driving down costs and increased efficiencies achieved by developing larger pads and driving down drilling and completion days (1) Excludes wells that required additional casing string or pilot well test. Includes operated Midland Basin wells only (2) Estimate based on total drilling, completions and equipment costs for a 10,000 ft lateral (3) Spud to rig release days = average spud to rig release days / (average completed lateral foot/1000) Continuous Focus on Operational Improvement Actual Drilling, Completions & Equip. Cost ($/Lat Ft.)(1) All-in Frac Costs per Stage ($/Stage) 2.6 2.0 2.0 1.9 2H17 FY18 FY19 1Q20 (2) $80,854 $77,167 $61,884 $56,600 $50,308 $37,833 $40,000 1H18 2H18 1H19 2H19 1Q20 4Q20 2021E

14 Installation of Vapor Recovery Units (“VRUs”) in conjunction with tank battery construction minimizes air emissions Target Zero Flaring: Connect natural gas pipelines ahead of flowback and first production negates need for flaring Leak Detection & Repair (“LDAR”) program since 2019 to further minimize air emissions Target >60% of 2021 oil production in Midland Basin on pipeline. Increased from 13% to 42% in 2020 Plan for 100% of water disposal on pipeline in the Midland Basin to reduce truck hauls, which, in turn, reduces CO2 emissions Highly Focused Environmental Stewardship At Earthstone, maintaining environmentally sustainable business practices is a top priority      Key Environmental Priorities Focus on Responsible Operatorship

15 Executive Compensation Fully Aligned with Shareholders (1) Peers include all U.S. public upstream operators with market capitalization from $250 million to $1.0 billion as of 1/29/2021: BRY, BCEI, CPE, CDEV, MCF, LPI, OAS, PVAC, QEP, TALO, WTI, WLL. Data based on 2020 SEC proxy filings (2) Absolute shareholder return includes change in stock price plus impact of dividends paid (3) Based on 2021 long term equity incentive plan 3-Year Total Shareholder Return(3) Payout (% of target)(3) <25% 0% 25% - 50% 50-100% 50% - 75% 100-200% >75% 200% 75% of Equity Compensation based on 3-year Absolute Shareholder Return(2)  Leading executive compensation practices ― Consistent with investor demands ― Focused on share price and corporate performance ― Designed to incentivize management for performance  Lower cash, higher equity weighted compensation structure ― Meaningful compensation but below peers(1) ― Annual cash incentive is 100% at risk and target below peers(1) ― Equity compensation aligned with shareholders and dependent upon stock performance • 75% of shares at-risk based solely on shareholder return (see right side of page) • 25% of shares vest over 3-year period Majority of executive compensation is based directly on shareholder gains

16 Areas of Operations (1) Based on ESTE management estimates of reserves as of 12/31/20 assuming Oil - $50/Bbl, Gas - $2.50/Mcf (2) Represents estimated sales volumes Eagle Ford(1) Total Proved Developed (Mmboe) 3.7 Total PD PV-10 ($mm) $54 4Q20 Net Production (Boe/d) 1,366 4Q20 Net Production - % Oil 82% Gross Producing Wells 121 Net Acres 12,500 Gross Drilling Locations 0 IRM(1) Total Proved Developed (Mmboe) 16.3 Total PD PV-10 ($mm) $200 4Q20 Net Production (Boe/d)(2) 7,318 4Q20 Net Production - % Oil(2) 61% Gross Producing Wells 752 Net Acres 43,400 Gross Drilling Locations 70 Legacy Midland Basin(1) Total Proved Developed (Mmboe) 36.0 Total PD PV-10 ($mm) $399 4Q20 Net Production (Boe/d) 13,443 4Q20 Net Production - % Oil 45% Gross Producing Wells 228 Net Acres 27,900 Gross Drilling Locations 562 Total(1) Total Proved Developed (Mmboe) 56.0 Total PD PV-10 ($mm) $653 4Q20 Net Production (Boe/d)(2) 22,128 4Q20 Net Production - % Oil(2) 53% Gross Producing Wells 1,101 Net Acres 83,800 Gross Drilling Locations 632

17 Gross Locations by Lateral Length and Target(2)  Long lateral development increases capital efficiency  Over 85% of Midland horizontal locations have laterals of ~6,750 feet or greater  Near-term drilling focused in the Lower Spraberry, Wolfcamp A and Wolfcamp B targets in Midland and Upton Counties Midland Basin Overview Substantial Economic Inventory in The Midland Basin Midland Basin Locations by Op / Non-Op(2)Well Level Economics (10,000’ lateral @ $650/ft Costs)(1) Gross Locations by Lateral Length Target 5,000' - 6,750' 6,750' - 8,750' 8,750'+ Total % Total Lower Spraberry 19 22 35 76 12% Wolfcamp A & B 37 131 221 389 62% All Other Targets 27 53 87 167 26% Total Gross Locations 83 206 343 632 100% Total Net Locations 79 146 189 414 % Total (Gross) 13% 33% 54% 100% Average % of Gross Gross Net Lateral Average Locations in Locations Locations Length WI LSBY, WC A/B Operated 389 334 8,217 86% 78% Non-Operated 243 80 9,338 33% 67% Total 632 414 8,648 65% 74% IRR IRR 3-Stream EUR Oil Liquids $50 Oil / $40 Oil / Project Area (Mboe) (%) (%) $2.50 Gas $2.50 Gas Midland 1,250 60% 81% 93% 55% Upton 1,000 56% 79% 69% 39% Reagan 1,300 38% 70% 46% 27% (1) Single well rates of return (“IRR”) based on all-in drilling, completions and equipment costs of $650/foot for a 10,000 foot lateral. Assumes 3-stream economics on flat benchmark price deck of Oil - $50 and $40/Bbl, Gas - $2.50/Mcf before deductions for transportation, gathering, and quality differential. Assumes NGL differential realizations to be 30% of WTI (2) Gross location count includes only economic locations based on ESTE management estimates of reserves as of 12/31/20 assuming Oil - $50/Bbl, Gas - $2.50/Mcf and includes locations from acquisition of IRM

18 Financial Overview

19 Capital Budget, Guidance and Liquidity ESTE 2021 Capital Budget Liquidity (12/31/2020)(2) 2021 FY Guidance 2021 Capital Budget Breakdown(1) Note: Guidance is forward-looking information that is subject to considerable change and numerous risks and uncertainties, many of which are beyond Earthstone’s control. See “Forward-Looking Statements”. Cash G&A is defined as general and administrative expenses excluding stock-based compensation (1) Reflects midpoint of FY2021E Guidance (2) Liquidity presented at 12/31/20 on an ESTE standalone basis and at 12/31/20 pro forma for the acquisition of IRM ($mm) 12/31/20 PF 12/31/20 (2) Cash $1.5 $15.3 Revolver Borrowings 115.0 260.0 Total Debt $115.0 $260.0 Revolver Borrowing Base 240.0 360.0 Less: Revolver Borrowings (115.0) (260.0) Plus: Cash 1.5 15.3 Liquidity $126.5 $115.3 ($ in millions) Gross / Net Operated Wells Spudded Gross / Net Operated Wells On Line Net Non-Op Wells On Line Drilling and Completion $80 - $90 21 / 18.5 16 / 13.5 0.7 Land / Infrastructure $10 Total $90 - $100 89% 11% Drilling and Completion Land / Infrastructure 2021 Average Daily Production (Boepd) 19,500 - 21,000 % Oil 52% - 54% % Liquids 77% - 79% 2021 Operating Costs Lease Operating Expense ($/Boe) $6.00 - $6.50 Production and Ad Valorem Taxes (% of Revenue) 6.25% - 7.25% Cash G&A ($mm) $20.0 - $21.0

20 Oil and Gas Hedges Summary – 100% Swaps Oil Production Swaps Gas Production Swaps (Volumes in Bbls/d) (Volumes in MMBtu/d) 18,937 5,000 18,937 5,000 0 5,000 10,000 15,000 20,000 FY21 1Q22 Gas Swaps WAHA Basis Swaps Oil Production Hedges - 100% Swaps Gas Production Hedges - 100% Swaps Period Volume (Bbls) Volume (Bbls/d) $/Bbl Period Volume (MMBtu) Volume (MMBtu/d) $/MMBtu 1Q 2021 936,840 10,409 $47.04 1Q 2021 1,412,000 15,689 $2.784 2Q 2021 811,260 8,915 $48.26 2Q 2021 1,820,000 20,000 $2.813 3Q 2021 798,175 8,676 $48.44 3Q 2021 1,840,000 20,000 $2.813 4Q 2021 780,475 8,483 $48.59 4Q 2021 1,840,000 20,000 $2.813 FY 2021 3,326,750 9,114 $48.04 FY 2021 6,912,000 18,937 $2.807 FY 2022 1,458,500 3,996 $52.96 1Q 2022 450,000 5,000 $2.971 WTI Midland Argus Crude Basis Swaps WAHA Differential Basis Swaps Period Volume (Bbls) Volume (Bbls/d) $/Bbl (Differential) Period Volume (MMBtu) Volume (MMBtu/d) $/MMBtu 1Q 2021 742,840 8,254 $0.77 1Q 2021 1,412,000 15,689 ($0.402) 2Q 2021 720,260 7,915 $0.78 2Q 2021 1,820,000 20,000 ($0.366) 3Q 2021 706,175 7,676 $0.80 3Q 2021 1,840,000 20,000 ($0.366) 4Q 2021 688,475 7,483 $0.81 4Q 2021 1,840,000 20,000 ($0.366) FY 2021 2,857,750 7,829 $0.79 FY 2021 6,912,000 18,937 ($0.373) FY 2022 1,368,750 3,750 $0.74 1Q 2022 450,000 5,000 ($0.228) NYMEX CMA Roll Period Volume (Bbls) Volume (Bbls/d) $/Bbl (Differential) 1Q 2021 292,840 3,254 ($0.26) 2Q 2021 265,260 2,915 ($0.26) 3Q 2021 246,175 2,676 ($0.26) 4Q 2021 228,475 2,483 ($0.27) FY 2021 1,032,750 2,829 ($0.26) 9,114 3,996 7,829 3,750 0 5,000 10,000 15,000 FY21 FY22 Oil Swaps Crude Basis Swaps Note: Hedgebook as of 3/4/21 (1) Based on midpoint of FY2021 guidance (19,500 – 21,000 Boe/d; 52% - 54% oil, 21% - 23% gas) 85% of Guidance(1) 71% of Guidance(1)

21 Analyst Coverage Firm Analyst Contact Info Alliance Global Partners Andrew Bond / 203-577-5427 / abond@allianceg.com Johnson Rice Dun McIntosh / 504-584-1217 / dun@jrco.com Northland Subash Chandra / 212-405-8098 / schandra@northlandcapitalmarkets.com RBC Scott Hanold / 512-708-6354 / scott.hanold@rbccm.com Roth John White / 949-720-7115 / jwhite@roth.com Stephens Gail Nicholson / 301-904-7466 / gail.nicholson@stephens.com Truist Neal Dingmann / 713-247-9000 / neal.dingmann@truist.com Wells Fargo Tom Hughes / 212-214-5022 / thomas.hughes@wellsfargo.com

22 Mark Lumpkin, Jr. EVP, Chief Financial Officer Scott Thelander Vice President of Finance Corporate Offices Houston 1400 Woodloch Forest Drive | Suite 300 | The Woodlands, TX 77380 | (281) 298-4246 Midland 600 N. Marienfeld | Suite 1000 | Midland, TX 79701 | (432) 686-1100 Website www.earthstoneenergy.com Contact Information

23 Appendix

24 Reserves Summary and PV-10 (Non-GAAP Financial Measure) Earthstone’s proved reserves as of December 31, 2020 were independently estimated by Cawley, Gillespie & Associates, Inc. (“CGA”), independent petroleum engineers, utilizing SEC prescribed oil and gas prices of $39.57/bbl and $1.985/mmbtu, respectively, calculated for December 31, 2020. SEC prices net of differentials were $38.90/bbl and $0.97/Mcf for oil and gas, respectively. Year-End 2020 SEC Proved Reserves PV-10 is a measure not prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) that differs from a measure under GAAP known as “standardized measure of discounted future net cash flows” in that PV-10 is calculated without including future income taxes. Management believes that the presentation of the PV-10 value of our oil and natural gas properties is relevant and useful to investors because it presents the estimated discounted future net cash flows attributable to our estimated proved reserves independent of our income tax attributes, thereby isolating the intrinsic value of the estimated future cash flows attributable to our reserves. We believe the use of a pre-tax measure provides greater comparability of assets when evaluating companies because the timing and quantification of future income taxes is dependent on company-specific factors, many of which are difficult to determine. For these reasons, management uses and believes that the industry generally uses the PV-10 measure in evaluating and comparing acquisition candidates and assessing the potential rate of return on investments in oil and natural gas properties. PV-10 does not necessarily represent the fair market value of oil and natural gas properties. PV-10 is not a measure of financial or operational performance under GAAP, nor should it be considered in isolation or as a substitute for the standardized measure of discounted future net cash flows as defined under GAAP. The table below provides a reconciliation of PV-10 to the standardized measure of discounted future net cash flows (in thousands): Reconciliation of PV-10 Present value of estimated future net revenues (PV-10) $473,442 Future income taxes, discounted at 10% ($12,589) Standardized measure of discounted future net cash flows $460,853 Oil Gas NGL Total PV-10 Reserves Category (Mbbls) (MMcf) (Mbbls) (Mboe) ($ in thousands) Proved Developed 18,878 55,764 10,125 38,298 $329,395 Proved Undeveloped 21,212 55,450 10,123 40,577 $144,047 Total 40,090 111,214 20,248 78,875 $473,442

25 Reserves Summary – Alternative The information presented below includes the combination of the stand-alone reserve quantities and PV-10 for Earthstone and IRM as of December 31, 2020 prepared in accordance with Society of Petroleum Engineers’ 2018 Petroleum Resources Management System utilizing constant benchmark prices of $50.00 per barrel for oil and $2.50 per MMBtu for natural gas. Alternative Year-End 2020 Proved Reserves at $50/bbl and $2.50/MMBtu (1) The present value of estimated future revenues, discounted at 10% annually, to be generated from the production of proved reserves, net of estimated production and future development costs, using prices and costs as of the date of estimation without future escalation, without giving effect to (i) non-property related expenses such as general and administrative expenses, debt service and future income tax expense, or (ii) depreciation, depletion and amortization ESTE IRM COMBINED Reserve Category Proved Developed Proved Undeveloped Total Proved Developed Proved Undeveloped Total Proved Developed Proved Undeveloped Total Oil (MBbls) 19,547 21,530 41,077 9,551 8,570 18,121 29,098 30,100 59,198 Gas (MMcf) 57,891 56,580 114,471 17,789 5,125 22,914 75,680 61,705 137,385 NGL (MBbls) 10,502 10,316 20,818 3,834 1,105 4,939 14,336 11,421 25,757 Total (MBoe) 39,698 41,276 80,974 16,350 10,529 26,879 56,048 51,805 107,853 PV-10(1) ($ in thousands) $452,780 $265,499 $718,279 $199,960 $104,331 $304,291 $652,740 $369,830 $1,022,570

26 Reconciliation of Non-GAAP Financial Measure – Adjusted EBITDAX Earthstone uses Adjusted EBITDAX, a financial measure that is not presented in accordance with GAAP. Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by Earthstone’s management team and external users of its financial statements, such as industry analysts, investors, lenders and rating agencies. Earthstone’s management team believes Adjusted EBITDAX is useful because it allows Earthstone to more effectively evaluate its operating performance and compare the results of its operations from period to period without regard to its financing methods or capital structure. Earthstone defines Adjusted EBITDAX as net (loss) income plus, when applicable, (gain) loss on sale of oil and gas properties, net; accretion of asset retirement obligations; impairment expense; depletion, depreciation and amortization; transaction costs; interest expense, net; rig termination expense; exploration expense; unrealized loss (gain) on derivative contracts; stock based compensation (non-cash); and income tax expense (benefit). Earthstone excludes the foregoing items from net income (loss) in arriving at Adjusted EBITDAX because these amounts can vary substantially from company to company within their industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDAX should not be considered as an alternative to, or more meaningful than, net (loss) income as determined in accordance with GAAP or as an indicator of Earthstone’s operating performance or liquidity. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDAX. Earthstone’s computation of Adjusted EBITDAX may not be comparable to other similarly titled measures of other companies or to similar measures in Earthstone’s revolving credit facility. The following table provides a reconciliation of Net (loss) income to Adjusted EBITDAX for: (1) Included in General and administrative expense in the Consolidated Statements of Operations FY 2019 Adjusted EBITDAX ($ in 000s)FY 2020 Adjusted EBITDAX ($ in 000s) FY 19 Net (loss) income $1,580 Accretion of asset retirement obligations $214 Depreciation, depletion and amortization $69,243 Impairment expense $0 Interest expense, net $6,566 Transaction costs $1,077 Rig termination expense $0 Loss (gain) on sale of oil and gas properties ($3,222) Exploration expense $653 Unrealized loss (gain) on derivative contracts $59,849 Stock based compensation (non-cash)(1) $8,648 Income tax expense (benefit) $1,665 Adjusted EBITDAX $146,273 FY 20 Net (loss) income ($29,434) Accretion of asset retirement obligations $307 Depreciation, depletion and amortization $96,414 Impairment expense $64,498 Interest expense, net $5,232 Transaction costs $622 Rig termination expense $426 Loss (gain) on sale of oil and gas properties ($204) Exploration expense $298 Unrealized loss (gain) on derivative contracts ($3,855) Stock based compensation (non-cash)(1) $10,054 Income tax expense (benefit) ($112) Adjusted EBITDAX $144,246

27 Reconciliation of Non-GAAP Financial Measure – Adjusted EBITDAX (1) Included in Earthstone’s General and administrative expense in the Consolidated Statements of Operations Pro Forma FY 2020 Adjusted EBITDAX ($ in 000s) ESTE IRM Pro Forma Net (loss) income ($29,434) $18,154 ($11,280) Accretion of asset retirement obligations $307 $1,277 $1,584 Depreciation, depletion and amortization $96,414 $46,230 $142,644 Impairment expense $64,498 $0 $64,498 Interest expense, net $5,232 $9,845 $15,077 Transaction costs $622 $0 $622 Rig termination expense $426 ($24) $402 Loss (gain) on sale of oil and gas properties ($204) $0 ($204) Exploration expense $298 $0 $298 Unrealized loss (gain) on derivative contracts ($3,855) $1,109 ($2,746) Stock based compensation (non-cash)(1) $10,054 $1,799 $11,853 Income tax expense (benefit) ($112) $362 $250 Adjusted EBITDAX $144,246 $78,752 $222,998

XML

Cover	Mar. 10, 2021
Cover [Abstract]
Document Type	8-K
Document Period End Date	Mar. 10, 2021
Entity Central Index Key	0000010254
Entity Registrant Name	EARTHSTONE ENERGY, INC.
Amendment Flag	false
Entity Incorporation, State or Country Code	DE
Entity File Number	001-35049
Entity Tax Identification Number	84-0592823
Entity Address, Address Line One	1400 Woodloch Forest Drive
Entity Address, Address Line Two	Suite 300
Entity Address, City or Town	The Woodlands
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77380
City Area Code	281
Local Phone Number	298-4246
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Class A Common Stock, $0.001 par value per share
Trading Symbol	ESTE
Security Exchange Name	NYSE
Entity Emerging Growth Company	false