Acquisitions and Divestitures (Tables)

12 Months Ended

Dec. 31, 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 Class A Common Stock issued	12,719,594
Class A Common Stock price as of January 7, 2021	$	6.02
Class A Common Stock consideration	76,572
Cash consideration	140,507
Total consideration transferred	$	217,079
Fair value of assets acquired:
Cash	$	4,763
Other current assets	11,524
Oil and gas properties	224,112
Other non-current assets	252
Amount attributable to assets acquired	$	240,651
Fair value of liabilities assumed:
Derivative liability	$	10,177
Other current liabilities	5,196
Asset retirement obligation - noncurrent	8,199
Amount attributable to liabilities assumed	$	23,572

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)	60,159
Direct transaction costs (2)	1,579
Total consideration transferred	$	123,552
Fair value of assets acquired:
Oil and gas properties	$	124,152
Amount attributable to assets acquired	$	124,152
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 Company for the periods presented or that may be achieved by the 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):

	Years Ended December 31,
	2021		2020
Revenue	$	460,948	$	287,359
Income (loss) before taxes	88,917		(239,752)
Net income (loss)	87,058		(239,980)
Less: Net income (loss) attributable to noncontrolling interest	36,833		(99,695)
Net income (loss) attributable to Earthstone Energy, Inc.	50,226		(140,285)
Pro forma net income (loss) per common share attributable to Earthstone Energy, Inc.:
Basic	$	1.06	$	(2.87)
Diluted	$	1.01	$	(2.87)