Acquisitions (Tables)

9 Months Ended

Sep. 30, 2021

Business Combination and Asset Acquisition [Abstract]

Schedule of Business Acquisitions, by Acquisition

The consideration transferred, fair value of assets acquired and liabilities assumed by Earthstone were recorded as follows (in thousands, except share amounts and stock price):

Consideration:
Shares of Earthstone Class A Common Stock issued	12,719,594
Earthstone Class A Common Stock price as of January 7, 2021	$	6.02
Class A Common Stock consideration	76,572
Cash consideration (1)	140,366
Total consideration transferred	$	216,938
Fair value of assets acquired:
Cash	$	4,763
Other current assets	11,524
Oil and gas properties	226,178
Other non-current assets	252
Amount attributable to assets acquired	$	242,717
Fair value of liabilities assumed:
Derivative liability	$	10,177
Other current liabilities	5,314
Asset retirement obligation - noncurrent	10,288
Amount attributable to liabilities assumed	$	25,779

Asset Acquisition

The consideration transferred, fair value of assets acquired and liabilities assumed by Earthstone were recorded as follows (in thousands, except share amounts and stock price):

	Total
Consideration:
Shares of Earthstone Class A Common Stock issued	6,200,000
Earthstone Class A Common Stock price as of July 20, 2021	$	9.97
Class A Common Stock consideration	61,814
Cash consideration (1)	59,569
Direct transaction costs (2)	1,550
Total consideration transferred	$	122,933
Fair value of assets acquired:
Oil and gas properties	$	123,533
Amount attributable to assets acquired	$	123,533
Fair value of liabilities assumed:
Noncurrent liabilities - ARO	600
Amount attributable to liabilities assumed	$	600

(1)Includes customary purchase price adjustments.

(2)Represents $1.6 million of transaction costs associated with the Tracker Acquisition and the Sequel Acquisition that have been capitalized in accordance with ASC 805-50.

Business Acquisition, Pro Forma Information

These unaudited supplemental pro forma results of operations are provided for illustrative purposes only and do not purport to be indicative of the actual results that would have been achieved by the combined company for the periods presented or that may be achieved by the combined company in the future. Future results may vary significantly from the results reflected in this unaudited pro forma financial information (in thousands, except per share amounts):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Revenue	$	115,331	$	79,345	$	316,932	$	215,504
Income (loss) before taxes	22,647		(2,656)		17,660		49,461
Net income (loss)	22,196		(2,840)		18,003		48,962
Less: Net income (loss) attributable to noncontrolling interest	9,921		(1,182)		7,782		20,372
Net income (loss) attributable to Earthstone Energy, Inc.	12,275		(1,658)		10,222		28,589
Pro forma net income (loss) per common share attributable to Earthstone Energy, Inc.:
Basic	$	0.25	$	(0.03)	$	0.23	$	0.59
Diluted	$	0.23	$	(0.03)	$	0.23	$	0.59