Noncontrolling Interest

12 Months Ended

Dec. 31, 2022

Noncontrolling Interest represents EEH Units held by members of EEH other than Earthstone and Lynden US and is presented as a component of equity in the Consolidated Balance Sheets as of December 31, 2022 and 2021, as well as an adjustment to Net income in the Consolidated Statements of Operations for the years ended December 31, 2022 and 2021. Pursuant to governing EEH agreements, the noncontrolling members have no direct participation in the operations of EEH.

Earthstone consolidates the financial results of EEH and its subsidiaries, and presents a noncontrolling interest for the economic interest in Earthstone held by members of EEH other than Earthstone and Lynden US, and represented by outstanding shares of Class B Common Stock. Net income attributable to noncontrolling interest in the Consolidated Statements of Operations for the year ended December 31, 2022 represents the portion of net income attributable to the economic interest in the Company held by members of EEH other than Earthstone and Lynden US. The noncontrolling interest in the Consolidated Balance Sheet as of December 31, 2022 represents the portion of net assets of the Company attributable to members of EEH other than Earthstone and Lynden US.

The following table presents the changes in noncontrolling interest for the year ended December 31, 2022:


	EEH Units Held By Earthstone and Lynden US	%		EEH Units Held By Others	%		Total EEH Units Outstanding
As of December 31, 2021	53,467,307	60.9	%	34,344,532	39.1	%	87,811,839
EEH Units issued in connection with the Chisholm Acquisition	19,417,476			—			19,417,476
EEH Units issued in connection with the Bighorn Acquisition	5,650,977			—			5,650,977
EEH Units issued in connection with the Conversion of Preferred Stock	25,225,225			—			25,225,225
EEH Units issued in connection with the Titus Acquisition	3,857,015			—			3,857,015
EEH Units and shares of Class B Common Stock exchanged for shares of Class A Common Stock	84,891			(84,891)			—
EEH Units issued in connection with the vesting of restricted stock units	844,248			—			844,248
EEH Units cancelled in connection with the share repurchase	(3,000,000)			—			(3,000,000)
As of December 31, 2022	105,547,139	75.5	%	34,259,641	24.5	%	139,806,780