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: August 2, 2023

(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 August 2, 2023, Earthstone Energy, Inc. (the “Company”) issued a press release announcing its financial and operating results for the three and six months ended June 30, 2023. 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 August 2, 2023, 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 they 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 August 2, 2023.
99.2	Presentation Materials dated August 2, 2023.
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:	August 2, 2023	By:	/s/ Tony Oviedo
			Tony Oviedo
			Executive Vice President - Accounting and Administration

EX-99.1

Exhibit 99.1

Earthstone Energy, Inc. Reports

2023 Second Quarter and Year-to-Date Financial Results

Generated Record Production for Second Quarter 2023

The Woodlands, Texas, August 2, 2023 – Earthstone Energy, Inc. (NYSE: ESTE) (“Earthstone”, the “Company”, “we”, “our” or “us”), today announced financial and operating results for the three and six months ended June 30, 2023.

Second Quarter 2023 Highlights

•Announced the Novo Acquisition for $1 billion on June 15, 2023, which is expected to close on August 15, 2023

•Achieved record average daily production of 105,493 Boepd(1) (42% oil), which exceeded the mid-point of full-year 2023 production guidance by 5.5%

•Net income(2) of $82.4 million, and Adjusted Net Income(3) of $75.6 million

•Adjusted EBITDAX(3) of $238.8 million

•Net cash provided by operating activities of $218.4 million

•Free Cash Flow(3) of $41.9 million

•Capital expenditures of $174.4 million, which comprised 23% of the mid-point of full-year 2023 capital expenditures guidance

•Issued $500 million of senior unsecured notes due 2031

Year to Date 2023 Highlights

•Average daily production of 104,974 Boepd(1) (43% oil), which exceeded the mid-point of full-year 2023 production guidance by 5.0%

•Net income(2) of $168.7 million, and Adjusted Net Income(3) of $184.7 million

•Adjusted EBITDAX(3) of $505.7 million

•Net cash provided by operating activities of $476.8 million

•Free Cash Flow(3) of $83.7 million

•Capital expenditures of $376.7 million, which comprised 50% of the mid-point of full-year 2023 capital expenditures guidance

(1)Represents reported sales volumes.

(2)Net income (GAAP) represents the sum of Net Income attributable to Earthstone Energy, Inc., plus the Net income attributable to noncontrolling interest. The related consolidated weighted average shares outstanding of Class A Common Stock and Class B Common Stock were 141.6 million shares and 141.7 million shares, respectively, on an as-converted basis, for the three and six months ended June 30, 2023 (“Adjusted Diluted Shares”, as reconciled in the “Non-GAAP Financial Measures” section below). All shares of our Class B Common Stock issued and outstanding are held by the noncontrolling interest group.

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

1

Management Comments

Robert J. Anderson, President and Chief Executive Officer of Earthstone, stated, “Earthstone’s operational excellence continued during the second quarter, with production setting record levels and surpassing our internal forecast and the top end of our full-year guidance. We reported second-quarter production of 105,493 boepd, with the oil component over 44,000 barrels per day.Our low decline, stable production base, and strong new well results drove our production outperformance for the quarter. The execution of our disciplined operating plan and the strength of our operational performance translated directly into strong financial performance for the quarter. Company record daily production led to Adjusted EBITDAX of approximately $239 million and Free Cash Flow of approximately $42 million for the quarter. Year-to-date average daily production of approximately 105,000 Boepd exceeds the midpoint of our pre-Novo full-year guidance by 5,000 Boepd, showcasing the quality and productivity of our inventory and strong operational execution.”

Mr. Anderson continued, “Also during the quarter, we continued to further our consolidation strategy with the announcement of the pending Novo acquisition, which will significantly increase the scale of our northern Delaware Basin footprint. The Novo acquisition, combined with last year's Chisholm and Titus acquisitions, will fundamentally transform Earthstone into a major operator in the northern Delaware Basin, with four of our five rigs expected to be drilling in this oil-rich and highly economic area. We look forward to closing the Novo transaction later this month and incorporating its high-quality inventory into our development plans. We expect Novo will increase our production base to more than 130,000 Boepd in the fourth quarter.We believe the Novo transaction will add significant Free Cash Flow as well as increased value for Earthstone shareholders.”

Operational Overview

We operated a five-rig drilling program during the second quarter of 2023 with three rigs in the Delaware Basin and two in the Midland Basin.

Delaware Basin Highlights

In the Delaware Basin, during the second quarter of 2023, we commenced drilling 12 gross (9.7 net) wells and brought 13 gross (9.5 net) wells online.

We completed the Lonesome Dove Com pad on acreage acquired in the Titus acquisition in the Stateline area in Lea County, New Mexico. The wells targeted the First and Second Bone Spring intervals. The four wells had an average peak IP-30 rate of 1,762 Boepd from laterals averaging approximately 7,700 feet with an average oil percentage of 72%. We hold a 90% working interest in the Lonesome Dove Com pad.

Also, in the Stateline area, we completed the Cattlemen Fed Com Pad, where we hold a 99% working interest. The 2-well pad had an average peak IP-30 of 1,934 Boepd and was approximately 67% oil. The average lateral length of the two wells was about 7,700 feet, and the wells targeted the First and Second Bone Spring. The Cattlemen Fed Com pad is located on acreage also acquired in the Titus acquisition.

Midland Basin Highlights

During the second quarter of 2023 in the Midland Basin, we began drilling nine gross (7.2 net) wells and brought four gross (3.0 net) wells online.

In Irion County, Texas, at the Barnhart pad, we put four wells online in July producing from the Wolfcamp Upper and Lower B zones. These wells were drilled with an average lateral length of approximately 13,340 feet. Although these wells have not been online for a full 30 days, their performance is in line with a prior pad completed by the Company in 2022 and they have average peak IP-20 over 1,030 Boepd with approximately 86% oil. We hold a 100% working interest in the Barnhart pad.

2

We recently put two wells online at the Mid-States East Unit 37-5 pad, and the wells are producing from the Wolfcamp D zone. This is our initial development of the Wolfcamp D interval in Midland County. The wells had an average lateral length of 9,950 feet with a 67% working interest. The wells are flowing naturally with no artificial lift and results are encouraging, with recent average daily production per well over 800 Boepd and 89% oil.

Selected Financial Data (unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
($000s except where noted)	2023		2022		2023		2022
Total revenues	$	370,008	$	472,551	$	783,144	$	668,701
Lease operating expense	87,602		50,514		175,580		72,145
General and administrative expense (excluding stock-based compensation)	12,157		8,117		25,118		14,593
Stock-based compensation	7,835		5,960		12,453		11,790
General and administrative expense	$	19,992	$	14,077	$	37,571	$	26,383
Net income	$	82,448	$	218,025	$	168,659	$	166,148
Less: Net income attributable to noncontrolling interest	24,406		73,140		50,069		54,741
Net income attributable to Earthstone Energy, Inc.	58,042		144,885		118,590		111,407
Adjusted EBITDAX(1)	$	238,845	$	300,875	$	505,748	$	423,964
Production(2):
Oil (MBbls)	4,014		2,587		8,167		4,004
Gas (MMcf)	18,308		14,414		35,118		20,053
NGL (MBbls)	2,535		2,029		4,980		2,869
Total (MBoe)(3)	9,600		7,018		19,000		10,214
Average Daily Production (Boepd)	105,493		77,125		104,974		56,432
Average Prices:
Oil ($/Bbl)	73.49		110.80		74.98		106.00
Gas ($/Mcf)	1.13		6.67		1.44		5.94
NGL ($/Bbl)	21.45		44.25		24.12		43.66
Total ($/Boe)	38.54		67.33		41.22		65.47
Adj. for Realized Derivatives Settlements:
Oil ($/Bbl)	73.07		87.30		74.22		83.16
Gas ($/Mcf)	1.20		5.40		1.41		4.97
NGL ($/Bbl)	21.45		44.25		24.12		43.66
Total ($/Boe)	38.50		56.06		40.83		54.62
Operating Margin per Boe
Average realized price	$	38.54	$	67.33	$	41.22	$	65.47
Lease operating expense	9.13		7.20		9.24		7.06
Production and ad valorem taxes	3.31		4.87		3.42		4.65
Operating margin per Boe(1)	26.10		55.26		28.56		53.76
Realized hedge settlements	(0.04)		(11.27)		(0.39)		(10.85)
Operating margin per Boe (including Realized Hedge Settlements)(1)	$	26.06	$	43.99	$	28.17	$	42.91

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

(2)Represents reported sales volumes.

(3)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).

3

Updated 2023 Guidance

Earthstone is providing updated guidance for 2023, which assumes the closing of the Novo Acquisition on August 15, 2023. The Company anticipates third quarter production to be 115-120 MBoepd and fourth quarter production to average 130-135 MBoepd.From a capital activity standpoint, the Company plans to maintain its five-rig drilling program for the remainder of the year.Additionally, the Company expects to complete 11 gross Novo-drilled wells which are currently uncompleted.The Company now expects to drill and complete an incremental 3-4 net wells compared to its original capital plan.Despite the incremental activity, the Company is maintaining its full year capital expenditure guidance at $725-775 million.

Production Guidance	1H23	3Q23(1)	4Q23(1)	FY 2023(1)
Production (Boe/d)	104,974	115,000 - 120,000	130,000 - 135,000	113,809 - 116,330
% Oil	43%	41%	41%	42%
% Liquids	69%	68%	69%	69%
Expense & Capex Guidance	1H23	2H23(1)	FY 2023(1)
Total Capital Expenditures ($MM)	$377	$348 - $398	$725 - $775
Lease Operating Expense ($/Boe)	$9.24	$8.75 - $9.25	$9.00 - $9.25
Production & Ad Valorem Taxes (% of Revenue)	8.3%	8.5% - 9.0%	8.4% - 8.7%
Cash G&A ($MM)(2)	$25	$27.5 - $32.5	$52.5 - $57.5

1)Includes the projected impact of the Novo Acquisition, expected to close on August 15, 2023.

2)Cash G&A is defined as general and administrative expenses excluding stock-based compensation.

Note: Guidance is forward-looking information that is subject to considerable change and numerous risks and uncertainties, many of which are beyondEarthstone’s control. See “Forward-Looking Statements” section below.

Liquidity and Equity Capitalization

As of June 30, 2023, we had $49.5 million of cash on hand and no borrowings outstanding under our senior secured credit facility (“Credit Facility”). As of June 30, 2023, elected commitments under the Credit Facility were $1.4 billion with a borrowing base of $1.65 billion.

Through June 30, 2023, we had incurred $376.7 million of capital expenditures. Our 2023 capital expenditure guidance remains at $725-$775 million. We expect to fund our remaining 2023 capital expenditures and interest expense with cash flow from operations while any excess cash flow is expected to be utilized to repay borrowings under our Credit Facility, if any.

As of June 30, 2023, 106,331,055 shares of Class A Common Stock and 34,257,641 shares of Class B Common Stock were outstanding, resulting in 140,588,696 combined shares of common stock outstanding.

Commodity Hedging

Hedging Activities

The following tables set forth our outstanding derivative contracts as of June 30, 2023. When aggregating multiple contracts, the weighted average contract price is disclosed.

4

	Price Swaps
Period	Commodity	Volume (Bbls / MMBtu)	Weighted Average Price ($/Bbl / $/MMBtu)
Q3 - Q4 2023	Crude Oil	1,145,200	$74.90
Q1 - Q4 2024	Crude Oil	621,600	$69.28
Q3 - Q4 2023	Crude Oil Basis Swap (1)	4,692,000	$0.92
Q3 - Q4 2023	Natural Gas	2,300,000	$3.35
Q3 - Q4 2023	Natural Gas Basis Swap (2)	25,760,000	$(1.67)
Q1 - Q4 2024	Natural Gas Basis Swap (2)	36,600,000	$(1.05)
Q1 - Q4 2025	Natural Gas Basis Swap (2)	14,600,000	$(0.74)

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

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

	Costless Collars
Period	Commodity	Volume (Bbls / MMBtu)	Bought Floor ($/Bbl / $/MMBtu)	Sold Ceiling ($/Bbl / $/MMBtu)
Q3 - Q4 2023	Crude Oil Costless Collar	2,120,800	$62.73	$85.26
Q1 - Q4 2024	Crude Oil Costless Collar	732,000	$60.00	$76.01
Q3 - Q4 2023	Natural Gas Costless Collar	13,298,800	$3.12	$5.21
Q1 - Q4 2024	Natural Gas Costless Collar	14,640,000	$2.56	$4.51

	Deferred Premium Puts
Period	Commodity	Volume (Bbls / MMBtu)	$/Bbl (Put Price)	$/Bbl (Net of Premium)
Q3 - Q4 2023	Crude Oil	791,200	$70.00	$64.54
Q1 - Q4 2024	Crude Oil	915,000	$65.00	$60.04

Conference Call Details

Earthstone is hosting a conference call on Thursday, August 3, 2023 at 2:00 p.m. Eastern (1:00 p.m. Central) to discuss the Company’s financial results for the second quarter of 2023 and its outlook for the remainder of 2023. 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 and Chief Operating Officer, 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 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 and webcast will be available on the Company’s website and by telephone until 2:00 p.m. Eastern (1:00 p.m. Central), Thursday, August 17, 2023. The number for the replay is 877-660-6853 for domestic calls or 201-612-7415 for international calls, using Replay ID: 13739946.

5

About Earthstone Energy, Inc.

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 New Mexico and west Texas. Earthstone's Class A Common Stock is listed on the New York Stock Exchange under the symbol “ESTE.” For more information, visit Earthstone’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. The forward-looking statements include statements about the expected benefits of the Novo Acquisition to Earthstone and its stockholders, the anticipated completion of the Novo Acquisition or the timing thereof, the expected future reserves, production, financial position, business strategy, revenues, earnings, free cash flow, 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 their 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: the ability to complete the Novo Acquisition on anticipated terms and timetable; Earthstone’s ability to integrate its combined operations successfully after the Novo Acquisition and achieve anticipated benefits from it; the possibility that various closing conditions for the Novo Acquisition may not be satisfied or waived; and risks relating to any unforeseen liabilities of Earthstone or Novo. For further discussions of risks and uncertainties, please refer to those set forth in Earthstone’s annual report on Form 10-K for the year ended December 31, 2022, subsequent quarterly reports on Form 10-Q and current reports on Form 8-K, 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

Clay Jeansonne

Investor Relations

Earthstone Energy, Inc.

1400 Woodloch Forest Drive, Suite 300

The Woodlands, TX 77380

713-379-3080

cjeansonne@earthstoneenergy.com

6

EARTHSTONE ENERGY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In thousands, except share and per share amounts)

	June 30,		December 31,
ASSETS	2023		2022
Current assets:
Cash and cash equivalents	$	49,500	$	—
Accounts receivable:
Oil, natural gas, and natural gas liquids revenues	111,436		161,531
Joint interest billings and other, net of allowance of $19 and $19 at June 30, 2023 and December 31, 2022, respectively	24,196		34,549
Derivative asset	7,106		31,331
Prepaid expenses and other current assets	19,658		18,854
Total current assets	211,896		246,265
Oil and gas properties, successful efforts method:
Proved properties	4,348,453		3,987,901
Unproved properties	280,221		282,589
Land	5,482		5,482
Total oil and gas properties	4,634,156		4,275,972
Accumulated depreciation, depletion and amortization	(832,886)		(619,196)
Net oil and gas properties	3,801,270		3,656,776
Other noncurrent assets:
Office and other equipment, net of accumulated depreciation and amortization of $6,090 and $5,273 at June 30, 2023 and December 31, 2022, respectively	6,056		5,394
Derivative asset	2,284		9,117
Operating lease right-of-use assets	6,573		4,569
Other noncurrent assets	92,362		15,280
TOTAL ASSETS	$	4,120,441	$	3,937,401
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	53,824	$	91,815
Revenues and royalties payable	166,380		163,368
Accrued expenses	102,201		80,942
Asset retirement obligation	860		948
Derivative liability	31,702		14,053
Advances	11,449		7,312
Operating lease liabilities	906		842
Finance lease liabilities	1,083		802
Other current liabilities	14,335		16,202
Total current liabilities	382,740		376,284
Noncurrent liabilities:
Long-term debt, net	1,021,555		1,053,879
Deferred tax liability	174,565		138,336
Asset retirement obligation	29,695		29,611
Derivative liability	10,624		—
Operating lease liabilities	3,524		3,889
Finance lease liabilities	1,151		876

7

Other noncurrent liabilities	4,760		10,509
Total noncurrent liabilities	1,245,874		1,237,100
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; 106,331,055 and 105,547,139 issued and outstanding at June 30, 2023 and December 31, 2022, respectively	106		106
Class B Common Stock, $0.001 par value, 50,000,000 shares authorized; 34,257,641 and 34,259,641 issued and outstanding at June 30, 2023 and December 31, 2022, respectively	34		34
Additional paid-in capital	1,345,657		1,346,463
Retained earnings	411,301		292,711
Total Earthstone Energy, Inc. equity	1,757,098		1,639,314
Noncontrolling interest	734,729		684,703
Total equity	2,491,827		2,324,017
TOTAL LIABILITIES AND EQUITY	$	4,120,441	$	3,937,401

8

EARTHSTONE ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(In thousands, except share and per share amounts)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
REVENUES
Oil	$	294,997	$	286,632	$	612,375	$	424,384
Natural gas	20,649		96,125		50,667		119,083
Natural gas liquids	54,362		89,794		120,102		125,234
Total revenues	370,008		472,551		783,144		668,701
OPERATING COSTS AND EXPENSES
Lease operating expense	87,602		50,514		175,580		72,145
Production and ad valorem taxes	31,805		34,195		64,958		47,510
Depreciation, depletion and amortization	109,990		66,463		220,740		100,789
Impairment expense	854		—		854		—
General and administrative expense	19,992		14,077		37,571		26,383
Transaction costs	208		(402)		401		10,340
Accretion of asset retirement obligation	646		708		1,275		1,105
Exploration expense	6,082		—		6,548		92
Total operating costs and expenses	257,179		165,555		507,927		258,364
Gain on sale of oil and gas properties	49,254		—		46,114		—
Income from operations	162,083		306,996		321,331		410,337
OTHER INCOME (EXPENSE)
Interest expense, net	(22,092)		(16,625)		(44,948)		(21,943)
Write-off of deferred financing costs	—		—		(5,109)		—
Loss on derivative contracts, net	(40,309)		(49,907)		(66,773)		(201,387)
Other income, net	819		249		812		296
Total other income (expense)	(61,582)		(66,283)		(116,018)		(223,034)
Income before income taxes	100,501		240,713		205,313		187,303
Income tax expense	(18,053)		(22,688)		(36,654)		(21,155)
Net income	82,448		218,025		168,659		166,148
Less: Net income attributable to noncontrolling interest	24,406		73,140		50,069		54,741
Net income attributable to Earthstone Energy, Inc.	$	58,042	$	144,885	$	118,590	$	111,407
Net income per common share attributable to Earthstone Energy, Inc.:
Basic	$	0.55	$	1.85	$	1.12	$	1.57
Diluted	$	0.54	$	1.46	$	1.10	$	1.37
Weighted average common shares outstanding:
Basic	106,209,657		78,291,037		106,091,850		70,909,353
Diluted	107,336,695		102,410,036		107,438,062		84,266,422

9

EARTHSTONE ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(In thousands)

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2023		2022		2023		2022
Cash flows from operating activities:
Net income	$	82,448	$	218,025	$	168,659	$	166,148
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	109,990		66,463		220,740		100,789
Impairment of proved and unproved oil and gas properties	854		—		854		—
Accretion of asset retirement obligations	646		708		1,275		1,105
Settlement of asset retirement obligations	(497)		(274)		(1,036)		(475)
Gain on sale of oil and gas properties	(49,254)		—		(46,114)		—
Gain on sale of office and other equipment	—		(24)		(33)		(46)
Total loss on derivative contracts, net	40,309		49,907		66,773		201,387
Operating portion of net cash paid in settlement of derivative contracts	(418)		(79,099)		(7,443)		(110,785)
Stock-based compensation - equity and liability awards	7,835		5,960		12,453		11,790
Deferred income taxes	17,628		21,873		36,229		20,546
Write-off of deferred financing costs	—		—		5,109		—
Amortization of deferred financing costs	1,690		1,442		3,459		2,069
Changes in assets and liabilities:
(Increase) decrease in accounts receivable	28,348		(135,580)		63,303		(184,315)
(Increase) decrease in prepaid expenses and other current assets	4,918		(9,207)		(834)		(11,103)
Increase (decrease) in accounts payable and accrued expenses	(9,003)		46,404		(62,031)		64,658
Increase (decrease) in revenues and royalties payable	(20,265)		70,638		11,267		85,570
Increase (decrease) in advances	3,208		(2,561)		4,137		(9,661)
Net cash provided by operating activities	218,437		254,675		476,767		337,677
Cash flows from investing activities:
Acquisition of oil and gas properties, net of cash acquired	(75,341)		(711,091)		(76,078)		(1,035,289)
Additions to oil and gas properties	(175,617)		(124,456)		(357,186)		(180,381)
Additions to office and other equipment	(191)		(766)		(482)		(1,356)
Proceeds from sales of oil and gas properties	54,219		—		56,062		—
Net cash used in investing activities	(196,930)		(836,313)		(377,684)		(1,217,026)
Cash flows from financing activities:
Proceeds from borrowings under Credit Agreement	932,127		889,074		1,890,487		1,471,572
Repayments of borrowings under Credit Agreement	(1,384,286)		(1,118,303)		(2,160,624)		(1,396,572)
Proceeds from issuance of 8% Senior Notes due 2027, net	—		537,250		—		537,250
Proceeds from issuance of 9.875% Senior Notes due 2031, net	481,215		—		481,215		—
Repayment of term loan	—		—		(250,000)		—
Proceeds from issuance of Series A Convertible Preferred Stock, net of offering costs of $674	—		279,326		—		279,326
Cash paid related to the exchange and cancellation of Class A Common Stock	(799)		(719)		(7,141)		(4,617)
Cash paid for finance leases	(237)		—		(441)		—
Deferred financing costs	(27)		(5,472)		(3,079)		(11,623)
Net cash (used in) provided by financing activities	27,993		581,156		(49,583)		875,336
Net increase (decrease) in cash and cash equivalents	49,500		(482)		49,500		(4,013)
Cash and cash equivalents at beginning of period	—		482		—		4,013
Cash and cash equivalents at end of period	$	49,500	$	—	$	49,500	$	—

10

Earthstone Energy, Inc.
Non-GAAP Financial Measures
Unaudited

The non-GAAP financial measures of Adjusted Diluted Shares, Adjusted EBITDAX, Adjusted Net Income, 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 income (loss) because of their wide acceptance by the investment community as financial indicators.

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 is a non-GAAP financial measure that 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		Six Months Ended
	June 30,		June 30,
	2023	2022	2023	2022
Class A Common Stock - Diluted	107,336,695	102,410,036	107,438,062	84,266,422
Class B Common Stock	34,259,575	34,268,723	34,259,608	34,295,444
Adjusted Diluted Shares	141,596,270	136,678,759	141,697,670	118,561,866

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 financial 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 income because of its wide acceptance by the investment community as a financial indicator.

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

11

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 income to Adjusted EBITDAX for the periods indicated:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
($000s)	2023		2022		2023		2022
Net income	$	82,448	$	218,025	$	168,659	$	166,148
Accretion of asset retirement obligations	646		708		1,275		1,105
Depreciation, depletion and amortization	109,990		66,463		220,740		100,789
Impairment expense	854		—		854		—
Interest expense, net	22,092		16,625		44,948		21,943
Transaction costs	208		(402)		401		10,340
Gain on sale of oil and gas properties	(49,254)		—		(46,114)		—
Exploration expense	6,082		—		6,548		92
Unrealized loss (gain) on derivative contracts	39,891		(29,192)		59,330		90,602
Stock based compensation(1)	7,835		5,960		12,453		11,790
Income tax expense	18,053		22,688		36,654		21,155
Adjusted EBITDAX	$	238,845	$	300,875	$	505,748	$	423,964

(1)Consists of expense for non-cash equity awards and cash-based liability awards that are expected to be settled in cash. On February 8, 2023, cash-based liability awards were settled in the amount of $14.5 million. On February 9, 2022, cash-based liability awards were settled in the amount of $8.1 million. Stock-based compensation is included in General and administrative expense in the Condensed Consolidated Statements of Operations.

III. Adjusted Net Income

We define “Adjusted Net Income” as net income plus, when applicable, unrealized loss (gain) on derivative contracts; impairment expense; gain 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 is a non-GAAP financial measure that 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 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.

12

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
($000s, except share and per share data)	2023		2022		2023		2022
Net income	$	82,448	$	218,025	$	168,659	$	166,148
Unrealized loss (gain) on derivative contracts	39,891		(29,192)		59,330		90,602
Impairment expense	854		—		854		—
Gain on sale of oil and gas properties	(49,254)		—		(46,114)		—
Write-off of deferred financing costs	—		—		5,109		—
Transaction costs	208		(402)		401		10,340
Income tax effect of the above	1,473		(12,705)		(3,497)		(15,190)
Adjusted Net Income	$	75,620	$	175,726	$	184,742	$	251,900
Adjusted Diluted Shares	141,596,270		136,678,759		141,697,670		118,561,866
Adjusted Net Income per Adjusted Diluted Share	$	0.53	$	1.29	$	1.30	$	2.12

IV. Free Cash Flow

Free Cash Flow is a non-GAAP financial measure that we use as an indicator of our ability to fund our development activities and reduce our leverage. We define Free Cash Flow as Net cash provided by operating activities; less (1) Settlement of asset retirement obligations, Gain on sale of office and other equipment, Write-off of deferred financing costs, Amortization of deferred financing costs and Change in assets and liabilities from the Condensed Consolidated Statements of Cash Flows; plus (2) Transaction costs and Exploration expense from the Condensed Consolidated Statements of Operations; less (3) Capital expenditures (accrual basis). Alternatively, Free Cash Flow could be defined as Adjusted EBITDAX (defined above), less interest expense, less current portion of Income tax (expense) benefit, less accrual-based capital expenditures.

Management believes that Free Cash Flow, which measures our ability to generate cash in addition to cash from our business operations, is an important financial measure for use in evaluating the Company's financial performance. Free Cash Flow should be considered in addition to, rather than as a substitute for, consolidated net income as a measure of our performance and net cash provided by operating activities as a measure of our liquidity.

13

Free Cash Flow for the periods indicated:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
($000s)	2023		2022		2023		2022
Net cash provided by operating activities	$	218,437	$	254,675	$	476,767	$	337,677
Adjustments - Condensed Consolidated Statements of Cash Flows
Settlement of asset retirement obligations	497		274		1,036		475
Gain on sale of office and other equipment	—		24		33		46
Write-off of deferred financing costs	—		—		(5,109)		—
Amortization of deferred financing costs	(1,690)		(1,442)		(3,459)		(2,069)
Change in assets and liabilities	(7,206)		30,306		(15,842)		54,851
Adjustments - Condensed Consolidated Statements of Operations
Transaction costs	208		(402)		401		10,340
Exploration expense	6,082		—		6,548		92
Capital expenditures (accrual basis)	(174,440)		(119,451)		(376,712)		(201,560)
Free Cash Flow	$	41,888	$	163,984	$	83,663	$	199,852

Alternate calculation of Free Cash Flow for the periods indicated:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
($000s)	2023		2022		2023		2022
Adjusted EBITDAX	$	238,845	$	300,875	$	505,748	$	423,964
Interest expense, net	(22,092)		(16,625)		(44,948)		(21,943)
Current portion of income tax expense	(425)		(815)		(425)		(609)
Capital expenditures (accrual basis)	(174,440)		(119,451)		(376,712)		(201,560)
Free Cash Flow	$	41,888	$	163,984	$	83,663	$	199,852

V. 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 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.

14

EX-99.2

2Q23 Earnings Presentation A u g u s t 2 , 2 0 2 3 1 EExhibit 99.2

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 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. The forward‐looking statements include statements about the expected benefits of Earthstone Energy, Inc. (“ESTE,” “Earthstone” or the “Company”) and its stockholders from the pending acquisition (the “Novo Acquisition”) of Novo Oil & Gas Holdings, LLC (“Novo”) by Earthstone, the expected future reserves, production, financial position, business strategy, revenues, earnings, free cash flow, 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: the ability to complete the Novo Acquisition on anticipated terms and timetable; Earthstone’s ability to successfully integrate its operations successfully after the Novo Acquisition and achieve anticipated benefits from it; the possibility that various closing conditions for the Novo Acquisition may not be satisfied or waived; risks relating to any unforeseen liabilities of Earthstone or Novo; declines in oil, natural gas liquids or natural gas prices; developments in the Russia-Ukraine conflict; and future geopolitical events, 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 national banking systems; our level 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 fund all or portions of its future capital expenditures budget or to support a shareholder return program; Earthstone’s ability to obtain external capital to finance exploration and development operations and acquisitions; the impacts of hedging on results of operations; uninsured or underinsured losses resulting from oil and natural gas operations; competition for assets, equipment, materials and qualified people; supply chain disruptions; constraints or downtime on midstream assets servicing Earthstone’s oil and gas production; Earthstone’s ability to replace oil and natural gas reserves; any loss of senior management or technical personnel; regulatory matters, including environmental regulations; oilfield service cost inflation; social, market and regulatory efforts to address climate change; cybersecurity risks, and the direct and indirect impact on most or all of the foregoing on the COVID‐19 pandemic or future variants. Earthstone’s annual report on Form 10‐K for the year ended December 31, 2022, quarterly reports on Form 10‐Q, recent 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. The forward‐looking statements included in this presentation speak only as of the date of this presentation and Earthstone undertakes no obligation to revise or update publicly any forward‐looking statements except as required by law. This presentation contains estimates of Earthstone’s 2023 production, capital expenditures and expense guidance, and Novo’s 2023 production. 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 and well completions. 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 2023 and future capital budgets is subject to numerous risks and uncertainties, including volatility in commodity prices and the potential for unanticipated production and completion delays and increases in costs associated with drilling, production and transportation. Use of Non-GAAP Information This presentation includes financial measures that are not in accordance with accounting principles generally accepted in the United States (“GAAP”) such as PV‐10, free cash flow, Leverage, Net Debt, and Adjusted EBITDAX. Such non‐GAAP measures are not alternatives to GAAP measures, and you should not consider these non‐GAAP measures in isolation or as a substitute for analysis of our results as reported under GAAP. For additional disclosure regarding such non‐GAAP measures, including reconciliations to their most directly comparable GAAP measure, please refer to the Appendix or to Earthstone’s press release for the quarter ended June 30, 2023. Cautionary Note on Reserves and Resource Estimates The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves. Any reserve estimates provided in this presentation that are not specifically designated as being estimates of proved reserves may include estimated reserves or locations not necessarily calculated in accordance with, or contemplated by, the SEC’s latest reserve reporting guidelines. You are urged to consider closely the oil and gas disclosures in our 2022 Form 10‐K and our other reports and filings with the SEC. Estimated ultimate recovery (“EUR”) is a measure that by its nature is more speculative than estimates of proved reserves prepared in accordance with SEC definitions and guidelines and is accordingly less certain. 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. 2

Returns Focused Modest cash flow needed to maintain production levels, creates robust free cash flow generation1 Top Basins / Long Inventory Life Delaware Basin and Midland Basin asset base with ~13 years of high quality inventory life Earthstone’s Differentiating Factors 3 Strategic Consolidator Eight acquisitions since early 2021 increased production by >7.5x and improved cost and operating efficiencies Committed to Low Leverage Moderate increase to ~1.1x leverage counterbalanced by targeted sub-1.0x leverage within 12 months² Shareholder Returns Earthstone provides opportunities to consider further shareholder returns Management Team Conservative Management Team with a Proven History of Value Creation Commitment & Focus “Do the right thing” commitment to stakeholders, employees and environment Note: See Appendix for footnotes.

Texas New Mexico Corporate Snapshot 4Note: See Appendix for footnotes. Earthstone Acreage Permian Basin Area MIDLAND BASIN DELAWARE BASIN Select Operational Data (Pro Forma Novo) 460 MMBoe Estimated Proved Reserves1 $5.4 Billion Proved PV-10 at Strip1 130 - 135 MBoe/d (41% Oil) 4Q23E Production ~223,000 Permian Net Acres ~1,020 Gross Operated Drilling Locations2 Novo Acreage ~13 Years Inventory Life under 5-Rig Program 2Q23 7/31/23 PF Novo³ Stock Price (7/28/23) $15.93 $15.93 Market Cap $2.2 B $2.2 B Net Debt⁴ $1.0 B $1.8 B Enterprise Value⁵ $3.2 B $4.0 B Shares Outstanding⁶ 141 MM 141 MM Liquidity⁷ $1.4 B $1.0 B Select Financial Data

35,000- 37,000 70,000- 74,000 86,000- 90,000 98,000- 102,000 96,000- 104,000 96,000- 104,000 115,000- 120,000 130,000- 135,000 35,509 77,125 94,329 104,766 104,450 105,493 1Q22A 2Q22A 3Q22A 4Q22A 1Q23A 2Q23A 3Q23E 4Q23E Record Production Drives Strong Second Quarter Results 5See Appendix for non-GAAP reconciliations. 2Q23 Production (Boepd) 105,493 Boepd 2Q23 Adjusted EBITDAX ($MM) $238.8 MM 2Q23 Oil Production (Bopd) 44,110 Bopd 2Q23 Free Cash Flow ($MM) $41.8 MM 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”. Consistently Delivering on Expectations Production (Boepd) Production Guidance Actual Production

Highly Accretive Novo Transaction Significantly Expands Delaware Basin Scale 6 Acquisition Highlights Pro Forma Snapshot Combined Delaware Basin Acreage Overview 1. Based on Earthstone management estimates for the next twelve months from 5/1/23 and NYMEX strip prices as of 5/24/23; excludes the impact of general and administrative expenses. 2. Reinvestment rate defined as: Capex / (Adjusted EBITDAX – Interest Expense). 3. Earthstone management estimate of Earthstone’s total proved reserve volumes as of 5/1/23 utilizing NYMEX strip prices as of 5/24/23. Cawley, Gillespie & Associates, Inc. (“CG&A”) estimate of Novo’s total proved reserves volumes as of 5/1/23 utilizing NYMEX strip prices as of 5/24/23. Novo reserves reflect net to ESTE. 4. Earthstone management estimate of locations across all reserve categories, defined as locations that are estimated to generate at least a 10% rate of return at NYMEX $70/bbl and $3.00/mmBtu. Texas Earthstone Acreage Novo Acreage New Mexico Earthstone PF w/Novo Change 4Q23 Production (Mboe/d) ~96-104 ~130-135 ~33% 4Q23 Prod. % Oil / % Liquids ~45% / ~71% ~41% / ~69% ~(4)% / ~(2)% FY23 Capex ($MM) $725-$775 $725-$775 0% FY24 Reinvestment Rate (%)2 ~75% ~60% ~(15)% Total Proved Reserves (MMBoe)3 ~349 ~460 ~32% Gross Locations4 ~820 ~1,020 ~24% Transaction – $1.5 billion joint acquisition whereby Earthstone acquires Novo and concurrently sells a W.I. equal to 33 1/3% of Novo assets to Northern Oil and Gas for $0.5 billion Transaction Details (Net to Earthstone) – $1.0 billion all-cash transaction excludes customary purchase price adjustments – Fully committed credit facility upsized to $1.65 billion to provide liquidity at close – Expected closing in 3Q23, with effective date of 5/1/23 – Planned continuous 5-rig program (4 Rigs in Delaware / 1 Rig in Midland basins) Acquired Asset Highlights (Net to Earthstone) – ~11,300 net acres in Eddy County, NM and Culberson County, TX – ~$360-380MM NTM Adj. EBITDAX and ~$290-310MM NTM unlevered FCF1

$1.5B Highly Accretive Delaware Basin Acquisition1 Net purchase price of $1.0 billion represents 2.7x NTM Adj. EBITDAX, ~30% NTM unlevered FCF yield 2,3 Key Purchase Enhances Scale and Operational Synergies Materially expands existing Delaware Basin footprint and adds basin synergies Meaningful FCF Generation Adds to Corporate Strategy >60% increase to 2024E FCF. ~60% reinvestment rate provides for increased debt reduction, flexible capital allocation and potential shareholder returns3 Novo Acquisition Checks All Boxes for Significant Shareholder Value Creation 7 Significantly Adds to Inventory in Attractive Basin Strengthens deep inventory in the core of the Delaware Basin with ~200 high-return, de-risked gross locations that increase the allocation of capital to the Delaware Basin Maintains Financial Strength and Low Leverage Profile Moderate increase to ~1.1x leverage4 counterbalanced by targeted sub-1.0x leverage within 12 months Creates a Stronger and More Resilient Earthstone Transaction significantly strengthens operational and financial base and solidifies ESTE’s position as a leading Permian consolidator 1. Aggregate purchase price $1.5 billion, whereby Earthstone acquires Novo and concurrently sells a 33⅓ % interest in the properties to Northern Oil and Gas, Inc. (“NOG”), for $0.5 billion. 2. Based on Earthstone management estimates of proved developed cash flow for next twelve months from 5/1/23 and NYMEX strip prices as of 5/24/23; excludes the impact of incremental general and administrative expenses. 3. Free Cash Flow (“FCF”) defined as: Adjusted EBITDAX – Interest Expense – Current Income Tax – Capex. 4. Earthstone management forecasted Last Quarter Annualized (“LQA”) Adjusted EBITDAX at YE23 based on strip prices as of May 24, 2023. Expect to Close Novo Acquisition on August 15, 2023

$0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 0.0x 1.0x 2.0x 3.0x 4.0x FY16A FY17A FY18A FY19A FY20A FY21A FY22A ESTE FY23E PF Novo FY24E Adj. EBITDAX Debt / Adj. EBITDAX Novo Acquisition Drives Strong Financial Accretion and Maintains Financial Strength 8 1. Adjusted EBITDAX and FCF estimates based on Earthstone management estimates utilizing NYMEX strip pricing of 5/24/23. 2. Based on Earthstone 4Q23 management estimate of daily production. 3. Earthstone management estimate of locations across all reserve categories, defined as locations that are estimated to generate at least a 10% rate of return at NYMEX $70/bbl and $3.00/mmBtu. 4. Earthstone management forecasted Last Quarter Annualized (“LQA”) Adjusted EBITDAX at YE23 based on strip prices as of May 24, 2023. Significant Adj. EBITDAX Growth While Maintaining Financial Strength >20% Est. 2024E Adj. EBITDAX Uplift1 Significant Adj. EBITDAX contribution expected from Novo PDP1 >30% 4Q23 Production Increase2 Production enhancement provides for another step-change in scale >60% Est. 2024E FCF Uplift1 Incremental FCF accelerates deleveraging and potential for meaningful shareholders returns ~24% Location Count Increase3 Adding ~200 gross locations increases high-quality / high-return inventory in the Delaware Basin ~1x Leverage Profile ~1.1x PF 4Q23 leverage4, targeted <1.0x leverage within 12 months ~13 Yrs Inventory Life Inventory life increases by ~3 years under a continuous 5-rig program 2 Anticipates Pro Forma YE24 leverage to return to YE23 standalone levels of < 1.0x

Strategic Divestitures in the Past Twelve Months 9 Earthstone Divestitures • Earthstone has netted >$100 MM from selling non-core assets in the Midland Basin/Eagle Ford over the past year • Proceeds used to repay RBL debt Date July 2022 December 2022 May 2023 Geographical Area Eagle Ford Midland Basin Midland Basin Non-Core Divestiture Non-operated asset in Eagle Ford ~780 vertical well, mostly gas production 44 producing wells and 32 short lateral locations Proceeds to Earthstone ~$29 MM ~$21 MM ~$56 MM Production Impact ~450 Boe/d ~850 Boe/d ~530 Boe/d >$100 MM Proceeds $29 MM $50 MM $106 MM July 2022 December 2022 May 2023 Cumulative Proceeds from Non-Core Divestitures

$0.5 B 79 MMBoe $2.0 B 148 MMBoe $7.8 B 368 MMBoe $4.6 B 352 MMBoe¹ $5.4 B 460 MMBoe² $4.0 B YE20 SEC Pricing YE21 SEC Pricing YE22 SEC Pricing 1/1/23 Reserves 12/30/22 Strip¹ 5/1/23 Reserves 05/24/23 Strip² Enterprise Value³ PUD PD Shareholder Value Accretion Reflected in Significant Proved Reserves Growth 10 Proved Strip PV-10 Uplift from YE20 With estimated PV-10 value of pro forma PD reserves composing ~86% of the pro forma total proved PV-10 reserves value ~11x Estimated pro forma PV-10 Value of Proved Developed Reserves at Strip Current PV-10 value of pro forma PD reserves is significantly higher than current enterprise value2 ~$4.6B Robust Value Growth in Proved Reserves With Majority Coming from Proved Developed Reserves Additions Note: See Appendix for footnotes and non-GAAP reconciliation. PUD PD Current valuation significantly below proved developed reserves value

MIDLAND New Mexico Earthstone Acreage Texas Deep Inventory of High-Return Drilling Locations 11 Recent Well Results # Pad Peak IP-30 (Boepd) Oil (%) Lateral Length (ft) WI (%) 1 Lonesome Dove (4 Wells) 1,762 72% ~7,710’ 90% 2 Cattlemen (2 Wells) 1,934 67% ~7,722’ 67% 3 Barnhart (4 Wells) 1,032¹ 86% ~13,350’ 100% 4 Mid-States East (2 Wells) >800² 89% ~9,950’ 67% 5 Jade 34-3 Fed (4 Wells) 1,240 91% ~9,855’ 52% 6 Dark Canyon 15-22 (2 Wells) 1,422 69% ~7,050’ 100% 7 WTG 5-234 (2 Wells) 945 77% ~9,850’ 100% 8 Stetson 13-24 Fed (2 Wells) 1,042 92% ~10,325’ 63% 9 Squeeze 2 ST Com (3 Wells) 1,606 82% ~4,600’ 49% 10 Whittenburg (3 Wells) 968 90% ~9,850’ 100% 11 Whiskey River (3 Wells) 853 85% ~9,830’ 100% 12 TSRH East 18-20 (4 Wells) 1,054 81% ~14,300’ 65% 13 Salt Draw (2 Wells) 1,570 77% ~4,700’ 55% 14 Cletus (2 Wells) 1,370 69% ~9,750’ 89% 15 Lonesome Dove (2 Wells) 1,692 72% ~7,700’ 90% 16 Cattlemen (4 Wells) 1,466 69% ~7,700’ 93% 17 Barnhart (5 Wells) 1,170 81% ~10,000’ 100% 13 14 1 2 5 DELAWARE 8 9 10 11 12 6 7 3 Q 2 2 4 Q 2 2 1 Q 2 3 Note: Peak IP-30 is defined as the average of the highest 30 days of daily oil and gas production. 2 Q 2 3 15 16 173 1. Peak IP-20 (Boepd) 2. Mid-States East Unit 37-5 wells are still cleaning up with recent average daily production per well of over 800 Boepd and 89% oil. 4

3.0x 5.8x 5.3x 4.4x 3.6x 3.3x 3.1x 2.3x 5.0x 4.7x 3.2x 3.1x 1.8x ESTE Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 11 Peer 10 Peer 12 20% 7% 10% 4% 9% 11% 12% 13% 8% 16% 17% 20% 21% ESTE Peer 1 Peer 2 Peer 7 Peer 3 Peer 5 Peer 6 Peer 4 Peer 9 Peer 10 Peer 11 Peer 12 Peer 8 Earthstone Offers an Attractive Value Opportunity 12 Source: Company filings, press releases, Wall Street research, analyst expectations sourced from FactSet and share prices as of 7/28/23. Note: Free Cash Flow Yield is calculated by dividing Free Cash Flow by Market Capitalization. Future Adjusted EBITDAX and Free Cash Flow for Earthstone are 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”. Permian Large-Cap includes FANG and PXD. Permian SMid-Cap includes CPE, MTDR, PR, SM and VTLE. Non-Permian SMid Cap includes CHRD, CIVI, CRGY, MGY and NOG. Enterprise Value to 2024E EBITDAX 2024E Free Cash Flow Yield • ESTE has one of the lowest EV / EBITDAX multiples and one of the highest Free Cash Flow yields Permian SMid-CapPermian Large-Cap Non-Permian SMid-Cap Permian SMid-CapPermian Large-Cap Non-Permian SMid-Cap

Recently Published Inaugural Sustainability Report 13 Minimized Air Emissions Installed Vapor Recovery Towers (“VRTs”) and Vapor Recovery Units (“VRUs”) with tank battery construction minimizes air emissions ✓ Targeted Zero Flaring Connected natural gas pipelines ahead of flowback and first production negates the need for flaring ✓ Upgraded Facilities Upgraded existing facilities with low-pressure and high-pressure flare equipment to reduce emissions ✓ Leak Detection Leak Detection & Repair (“LDAR”) program since 2019 to identify and remediate emissions ✓ Retrofitted Facilities Installation of air-operated pneumatic actuators at new facilities and retrofitting legacy facilities to reduce emissions ✓ Reduced Trucking Percentage of oil production on pipelines increased from 58% in 2021 to 87% in 2022, reducing trucking and thus lowering CO2 emissions ✓ Increased Use of Pipelines Greater than 95% of produced water is disposed of via pipelines, reducing trucking and thus lowering CO2 emissions ✓ Implemented Monitoring Systems Testing of continuous emissions monitoring systems with initial implementation in 2023✓ Earthstone Continues to Implement Key ESG Objectives In Partnership with Developing practical solutions to issues that affect both human health and the environment

Company Guidance 14 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”. Guidance assumes Novo transaction closes on August 15th 2023. 1. Cash G&A is a non-GAAP financial measure defined as general and administrative expenses excluding stock-based compensation. 2. Does not include seven Novo wells expected to be Put on Production prior to closing. 2H23 Midland Basin Activity 2H23 Delaware Basin Activity • Spud ~13 Gross (~12.0 Net) ~Operated Wells • Put On Production ~21 Gross (~17.1 Net) Operated Wells • Spud ~35 Gross (~22.9 Net) Operated Wells • Put On Production ~26 Gross (~19.8 Net) Operated Wells2 Production Guidance 1H23 Actuals ESTE + Novo 3Q23 ESTE + Novo 4Q23 Implied FY23 Production (Boe/d) 104,974 115,000 - 120,000 130,000 - 135,000 113,809 - 116,330 % Oil 43% 41% 41% 42% % Liquids 69% 68% 69% 69% Expense & Capex Guidance 1H23 Actuals ESTE + Novo 2H23 Implied FY23 Total Capital Expenditures ($MM) $377 $348 - $398 $725 - $775 Lease Operating Expense ($/Boe) $9.24 $8.75 - $9.25 $9.00 - $9.25 Prod & Ad Val Taxes (% of Revenue) 8.3% 8.5% - 9.0% 8.4% - 8.7% Cash G&A ($MM)¹ $25 $27.5 - $32.5 $52.5 - $57.5

Appendix 15

Oil and Gas Hedge Summary 16 Oil Hedge Positions (WTI based, Bbls/d, and $/Bbl)¹ Natural Gas Hedge Positions (HH based, MMBtu/d, and $/MMBtu)² Focused on protecting cash flow while leaving upside for a stronger commodity outlook • Utilize a mix of collars, swaps and puts on oil and gas production • Waha basis materially protected via financial swaps and non-Waha marketing contracts • Significant 2024 and 2025 Waha basis hedges in place Note: Includes all WTI and Henry Hub hedges as of 8/2/23. Does not include basis swaps. 1. Reflects weighted average swap price, put price (net of deferred premiums) and weighted average collar floor / ceiling prices each period. 2. Reflects weighted average swap price and weighted average collar floor / ceiling prices each period. $76.94 $75.77 $74.25 $75.44 $69.28 $63.83 $64.54 $64.54 $64.24 $60.04 $62.47 / $87.56 $62.90 / $85.73 $62.58 / $84.84 $62.67 / $85.83 $60.00 / $76.01 18,500 20,500 23,600 20,875 6,198 2Q 2023 3Q 2023 4Q 2023 2Q-4Q 2023 FY 2024 Swaps Puts Collars $3.349 $3.349 $3.349 $3.349 $3.381 / $5.748 $3.254 / $5.557 $3.002 / $4.906 $3.193 / $5.363 $2.563 / $4.506 70,200 79,983 89,570 79,953 40,000 2Q 2023 3Q 2023 4Q 2023 2Q-4Q 2023 FY 2024 Swaps Collars

Oil and Gas Hedge Positions 17Note: Hedgebook as of 8/2/23. WTI Oil Hedges - Swaps HH Gas Hedges - Swaps Oil Swap Schedule Period Volume (Bbls) Volume (Bbls/d) $/Bbl Period Volume (MMBtu) Volume (MMBtu/d) $/MMBtu 2Q 2023 409,500 4,500 $76.94 2Q 2023 1,137,500 12,500 $3.349 3Q 2023 492,000 5,348 $75.77 3Q 2023 1,150,000 12,500 $3.349 4Q 2023 653,200 7,100 $74.25 4Q 2023 1,150,000 12,500 $3.349 2Q-4Q 2023 1,554,700 5,653 $75.44 2Q-4Q 2023 3,437,500 12,500 $3.349 1Q 2024 191,100 2,100 $69.36 2Q 2024 154,500 1,698 $69.28 3Q 2024 138,000 1,500 $69.22 4Q 2024 138,000 1,500 $69.22 FY 2024 621,600 1,698 $69.28 WTI Oil Hedges - Collars HH Gas Hedges - Collars Oil Collar Schedule Period Volume (Bbls) Volume (Bbls/d) $/Bbl (Floor) $/Bbl (Ceiling) Period Volume (MMBtu) Volume (MMBtu/d) $/MMBtu (Floor) $/MMBtu (Ceiling) 2Q 2023 700,700 7,700 $62.47 $87.56 2Q 2023 5,250,700 57,700 $3.381 $5.748 3Q 2023 998,400 10,852 $62.90 $85.73 3Q 2023 6,208,400 67,483 $3.254 $5.557 4Q 2023 1,122,400 12,200 $62.58 $84.84 4Q 2023 7,090,400 77,070 $3.002 $4.906 2Q-4Q 2023 2,821,500 10,260 $62.67 $85.83 2Q-4Q 2023 18,549,500 67,453 $3.193 $5.363 1Q 2024 182,000 2,000 $60.00 $76.01 1Q 2024 3,640,000 40,000 $2.563 $4.506 2Q 2024 182,000 2,000 $60.00 $76.01 2Q 2024 3,640,000 40,000 $2.563 $4.506 3Q 2024 184,000 2,000 $60.00 $76.01 3Q 2024 3,680,000 40,000 $2.563 $4.506 4Q 2024 184,000 2,000 $60.00 $76.01 4Q 2024 3,680,000 40,000 $2.563 $4.506 FY 2024 732,000 2,000 $60.00 $76.01 FY 2024 14,640,000 40,000 $2.563 $4.506 WTI Deferred Premium Puts WAHA Differential Basis Swaps Oil Puts Schedule Period Volume (Bbls) Volume (Bbls/d) $/Bbl (Strike Price) $/Bbl (Net of Premium) Period Volume (MMBtu) Volume (MMBtu/d) $/MMBtu 2Q 2023 573,300 6,300 $69.21 $63.83 2Q 2023 12,740,000 140,000 ($1.674) 3Q 2023 395,600 4,300 $70.00 $64.54 3Q 2023 12,880,000 140,000 ($1.674) 4Q 2023 395,600 4,300 $70.00 $64.54 4Q 2023 12,880,000 140,000 ($1.674) 2Q-4Q 2023 1,364,500 4,962 $69.67 $64.24 2Q-4Q 2023 38,500,000 140,000 ($1.674) 1Q 2024 227,500 2,500 $65.00 $60.04 1Q 2024 9,100,000 100,000 ($1.050) 2Q 2024 227,500 2,500 $65.00 $60.04 2Q 2024 9,100,000 100,000 ($1.050) 3Q 2024 230,000 2,500 $65.00 $60.04 3Q 2024 9,200,000 100,000 ($1.050) 4Q 2024 230,000 2,500 $65.00 $60.04 4Q 2024 9,200,000 100,000 ($1.050) FY 2024 915,000 2,500 $65.00 $60.04 FY 2024 36,600,000 100,000 ($1.050) FY 2025 FY 2025 14,600,000 40,000 ($0.740) WTI Midland Argus Crude Basis Swaps Oil Diff Schedule Period Volume (Bbls) Volume (Bbls/d) $/Bbl (Differential) 2Q 2023 2,411,500 26,500 $0.91 3Q 2023 2,346,000 25,500 $0.92 4Q 2023 2,346,000 25,500 $0.92 2Q-4Q 2023 7,103,500 25,831 $0.92

Reconciliation of Non-GAAP Financial Measure – Adjusted EBITDAX 18 2Q 2023 Adjusted EBITDAX ($ in 000s) 1. Consists of expense for non-cash equity awards and cash-based liability awards that are expected to be settled in cash. On February 8, 2023, cash-based liability awards were settled in the amount of $14.5 million. On February 9, 2022, cash-based liability awards were settled in the amount of $8.1 million. Stock-based compensation is included in General and administrative expense in the Condensed Consolidated Statements of Operations. 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 and external users of its financial statements, such as industry analysts, investors, lenders and rating agencies. Earthstone’s management 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 income (loss) plus, when applicable, accretion of asset retirement obligations; impairment expense; depreciation, depletion and amortization; impairment expense; interest expense, net; transaction costs; (gain) loss on sale of oil and gas properties, net; exploration expense; unrealized loss on derivative contracts; stock-based compensation (non-cash and expected to settle in cash); and income tax expense. 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 income (loss) 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 income (loss) to Adjusted EBITDAX for: FY 2022 Adjusted EBITDAX ($ in 000s) FY22 Net income (loss) $650,617 Accretion of asset retirement obligations $2,652 Depreciation, depletion and amortization $301,813 Interest expense, net $66,821 Transaction costs $8,248 (Gain) loss on sale of oil and gas properties, net ($13,900) Exploration expense $2,492 Unrealized (gain) loss on derivative contracts ($70,769) Stock based compensation(1) $35,369 Income tax expense (benefit) $124,416 Adjusted EBITDAX $1,107,759 2Q23 Net income (loss) $82,448 Accretion of asset retirement obligations $646 Depreciation, depletion and amortization $109,990 Impairment expense $854 Interest expense, net $22,092 Transaction costs $208 Gain on sale of oil and gas properties, net ($49,254) Exploration expense $6,082 Unrealized loss on derivative contracts $39,891 Stock based compensation (1) $7,835 Income tax expense $18,053 Adjusted EBITDAX $238,845

Reconciliation of Non-GAAP Financial Measure – Free Cash Flow 19 2Q 2023 Free Cash Flow ($ in 000s) Free Cash Flow is a non-GAAP financial measure that Earthstone uses as an indicator of our ability to fund our development activities and reduce our leverage. Earthstone defines Free Cash Flow as Net cash provided by operating activities; less (1) Settlement of asset retirement obligations, Gain on sale of office and other equipment, Write-off of deferred financing costs, Amortization of deferred financing costs and Change in assets and liabilities from the Condensed Consolidated Statements of Cash Flows; plus (2) Transaction costs, Exploration expense and the current portion of Income tax (expense) benefit from the Condensed Consolidated Statements of Operations; less (3) Capital expenditures (accrual basis). Alternatively, Free Cash Flow could be defined as Adjusted EBITDAX (defined above), less interest expense, net, less current portion of income tax expense, less capital expenditures (accrual basis). Management believes that Free Cash Flow, which measures Earthstone’s ability to generate additional cash from its business operations, is an important financial measure for use in evaluating the Company's financial performance. Free Cash Flow should be considered in addition to, rather than as a substitute for, consolidated net income as a measure of our performance and net cash provided by operating activities as a measure of our liquidity. The following table provides an alternate calculation of Free Cash Flow for the periods indicated: FY 2022 Free Cash Flow ($ in 000s) FY22 Adjusted EBITDAX $1,107,759 Interest expense, net ($66,821) Current portion of income tax benefit (expense) ($1,811) Capital expenditures (accrual basis) ($530,596) Free Cash Flow $508,531 2Q23 Adjusted EBITDAX $238,845 Interest expense, net ($22,092) Current portion of income tax expense ($425) Capital expenditures (accrual basis) ($174,440) Free Cash Flow $41,888

Estimated Proved Reserves Summary as of 5/1/23 at NYMEX Strip Pricing as of 5/24/23 20 This summary of proved developed reserve volumes and values as shown in the table below is based on management estimates and has been prepared as of May 1, 2023, utilizing NYMEX strip benchmark prices and basis differentials as of May 24, 2022, and in regard to PV- 10, discounting cash flows at a rate of 10% Recent Strip Pricing (5/24/2023) Year WTI HH 2023 $74.47 $2.84 2024 $69.93 $3.55 2025 $66.63 $4.08 2026 $64.04 $4.09 2027 $61.83 $4.07 Earthstone Standalone Novo (Net to ESTE) Combined PV-10 Value ($mm) Proved Developed $3,716 $912 $4,628 Proved Undeveloped $494 $260 $754 Total Proved $4,211 $1,172 $5,383 Earthstone Standalone Novo (Net to ESTE) Combined 1P Reserves (MMBoe) Proved Developed 277.5 73.9 351.4 Proved Undeveloped 71.5 37.2 108.7 Total Proved 349.0 111.1 460.1

SEC Proved Reserves Summary & PV-10 – Year-End 2022 21 Year-End 2022 SEC Proved Reserves Reconciliation of PV-10 As shown in the table below, Earthstone’s estimated proved reserves at year end 2022 were estimated by Cawley, Gillespie & Associates, Inc. (“CGA”), independent petroleum engineers, and which was prepared in accordance with Securities and Exchange Commission (“SEC”) guidelines, were approximately 367.9 million barrels of oil equivalent (“MMBoe”). SEC rules require that calculations of economically recoverable reserves use the unweighted average price on the first day of the month for the prior twelve-month period. The resulting oil and natural gas prices used for Earthstone’s 2022 year end reserve report, prior to adjusting for quality and basis differentials, were $93.67 per barrel and $6.358 per million British Thermal Units (“MMBtu”), respectively. SEC prices net of differentials were $95.82 per barrel, $39.24 per equivalent barrel of NGL and $5.51 per MMBtu. PV-10 is a measure not prepared in accordance with 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): Present value of estimated future net revenues (PV-10) $7,789,619 Future income taxes, discounted at 10% $1,065,118 Standardized measure of discounted future net cash flows $6,724,501 Oil Gas NGL Total PV-10 Reserves Category (Mbbls) (MMcf) (Mbbls) (Mboe) ($ in thousands) Proved Developed 88,759 574,762 80,168 264,721 $5,840,674 Proved Undeveloped 49,641 167,404 25,673 103,215 $1,948,945 Total 138,400 742,166 105,841 367,936 $7,789,619

SEC Stand-Alone Reserves Summary & PV-10 – Year-End 2021 22 Stand-Alone Year-End 2021 SEC Proved Reserves Reconciliation of PV-10 As shown in the table below, Earthstone’s stand-alone estimated proved reserves at year end 2021 were independently estimated by CGA and which was prepared in accordance with SEC guidelines, were approximately 147.6 million barrels of oil equivalent (“MMBoe”). SEC rules require that calculations of economically recoverable reserves use the unweighted average price on the first day of the month for the prior twelve-month period. The resulting oil and natural gas prices used for Earthstone’s stand-alone 2021 year end reserve report, prior to adjusting for quality and basis differentials, were $66.56 per barrel and $3.598 per million British Thermal Units (“MMBtu”), respectively. SEC prices net of differentials were $65.64 per barrel, $30.16 per equivalent barrel of NGL and $3.01 per Mcf. Present value of estimated future net revenues $2,016,686 Future income taxes, discounted at 10% $198,314 Standardized measure of discounted future net cash flows $1,818,372 Oil Gas NGL Total PV-10 Reserves Category (Mbbls) (MMcf) (Mbbls) (Mboe) ($ in thousands) Proved Developed 35,824 190,999 25,917 93,575 1,371,697 Proved Undeveloped 25,251 93,882 13,114 54,012 644,989 Total 61,075 284,881 39,031 147,587 $2,016,686

SEC Stand-Alone Reserves Summary & PV-10 – Year-End 2020 23 Year-End 2020 SEC Proved Reserves Reconciliation of PV-10 Earthstone’s proved reserves as of December 31, 2020 were independently estimated by CGA, 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 $0.97/Mcf for oil and gas, respectively. Oil Gas NGL Total PV-10 Reserves Category (Mbbls) (MMcf) (Mbbls) (Mboe) ($ in thousands) Proved Developed 18,878 55,764 10,125 38,298 $329,395 Proved Undeveloped 21,212 55,450 10,123 40,578 $144,047 Total 40,090 111,214 20,248 78,875 $473,442 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

Market Capitalization Table 24 Provided as of 8/2/2023¹ 1. Based on current shares outstanding (as of 7/25/23). 2. Based on current shares outstanding (as of 7/25/23) and ESTE estimated net debt at 7/31/23, as adjusted for the expected 8/15/23 closing of Novo, including the midpoint of ESTE management estimated Novo Acquisition purchase price adjustment of a reduction of $100-120 million net to ESTE’s retained interest. Pro Forma Novo ($ in millions, except share price) As of 6/30/23¹ As of 7/31/23² Class A Common Stock (MM) 106.3 106.3 Class B Common Stock (MM) 34.3 34.3 Total Common Stock Outstanding (MM) 140.6 140.6 Stock Price (as of 7/28/23) $15.93 $15.93 Market Capitalization $2,239.6 $2,239.6 Total Debt $1,021.6 $1,836.6 Cash ($49.5) ($59.5) Net Debt $972.1 $1,777.1 Enterprise Value $3,211.6 $4,016.6

1. Free cash flow is a non-GAAP financial measure defined as Adjusted EBITDAX less interest expense, net, less the current portion of income tax expense, less accrual-based capital expenditures. See Appendix for reconciliation of non-GAAP financial measures. 2. Leverage is a non-GAAP financial measure and is defined as Long-term debt (net of unamortized debt issuance costs) divided by LTM Adjusted EBITDAX. Notes and Supplemental Information 25 • Management has provided forwarding looking charts and figures on various slides that utilize a “maintenance capital” scenario. These figures are for example purposes only and do not constitute specific guidance beyond 2023. In addition, the assumptions utilized for this scenario are as follows; – Future production levels beyond 2023 are roughly flat with the projected guidance provided by management – Capital costs for development and operating field costs on a unit basis are held roughly flat to guidance – The corporate PDP decline rate is estimated at ~25% for 2023 and continues to decline at slightly lower rates in the following years Supplementary Footnotes (Page 3) Year WTI HH 2023 $79.07 $4.30 2024 $73.89 $4.28 2025 $69.77 $4.40 2026 $66.55 $4.47 2027 $63.87 $4.43 Recent Strip Pricing (12/30/2022) 1. Earthstone management estimate of Earthstone’s total proved reserve volumes and values as of 5/1/23 utilizing NYMEX strip prices as of 5/24/23, plus CG&A estimates of Novo total proved reserve volumes and values as of 5/1/23 utilizing NYMEX strip pricing as of 5/24/23, discounting cash flows at a rate of 10%. 2. Earthstone management estimate of locations across all reserve categories, defined as locations that are estimated to generate at least a 10% rate of return at NYMEX $70/bbl and $3.00/mmBtu. 3. Based on current shares outstanding and ESTE estimated net debt at 7/31/23, as adjusted for the expected 8/15/23 closing of Novo, including the midpoint of ESTE management estimated Novo Acquisition purchase price adjustment of a reduction of $100-120 million net to ESTE’s retained interest. 4. Net Debt is a non-GAAP financial measure and is defined as Long-term Debt (net of unamortized debt issuance costs) less Cash. 5. Enterprise Value is defined as the sum of Net Debt and Market Cap. 6. Includes all outstanding shares of Class A Common Stock and Class B Common Stock. 7. Liquidity is defined as available borrowings under the revolving credit facility plus cash and cash equivalents. Supplementary Footnotes (Page 4) 1. Estimated PD reserves value of $3.6 billion as of 1/01/23 at NYMEX strip pricing as of 12/30/22. See Appendix for additional details. 2. Earthstone management estimate of Earthstone’s total proved reserve volumes and values as of 5/1/23 utilizing NYMEX strip prices as of 5/24/23, plus CG&A estimates of Novo total proved reserve volumes and values as of 5/1/23 utilizing NYMEX strip pricing as of 5/24/23, discounting cash flows at a rate of 10%. 3. Pro forma for Novo Transaction. Supplementary Footnotes (Page 10)

XML

Cover	Aug. 02, 2023
Cover [Abstract]
Document Type	8-K
Document Period End Date	Aug. 02, 2023
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