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 4, 2022

(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 4, 2022, Earthstone Energy, Inc. (the “Company”) issued a press release announcing its financial and operating results for the three and six months ended June 30, 2022. 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 4, 2022, 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 4, 2022.
99.2	Presentation Materials dated August 4, 2022.
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 4, 2022	By:	/s/ Tony Oviedo
			Tony Oviedo
			Executive Vice President - Accounting and Administration

EX-99.1

Exhibit 99.1

Earthstone Energy, Inc. Reports 2022 Second Quarter and Year-to-Date Financial Results

The Woodlands, Texas, August 4, 2022 – 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, 2022.

Second Quarter 2022 Highlights

•Executed the Titus Acquisition PSAs on June 27, 2022, which are expected to close in mid-August 2022

•On April 12, 2022, closed a $550 million offering of 8.0% senior unsecured notes due 2027

•Closed the Bighorn Acquisition on April 14, 2022

•Issued $280 million of Preferred Stock in a private placement on April 14, 2022, which was converted into 25,225,225 shares of our Class A common stock on July 6, 2022

•Net income attributable to Earthstone Energy, Inc. of $144.9 million, or $1.46 per Diluted Share

•Net income of $218.0 million, or $1.60 per Adjusted Diluted Share(1)

•Adjusted net income(1) of $175.7 million, or $1.29 per Adjusted Diluted Share(1)

•Adjusted EBITDAX(1) of $300.9 million, up 144% compared to 1Q 2022

•Net cash provided by operating activities of $254.7 million

•Free Cash Flow(1) of $164.8 million, up 362% compared to 1Q 2022

•Average daily net production of 77,125 Boepd(2), up 117% compared to 1Q 2022

•Capital expenditures of $119.5 million

Year to Date 2022 Highlights

•Closed the Chisholm Acquisitionon February 15, 2022

•Net income attributable to Earthstone Energy, Inc. of $111.4 million, or $1.37 per Diluted Share

•Net income of $166.1 million, or $1.40 per Adjusted Diluted Share(1)

•Adjusted net income(1) of $251.9 million, or $2.12 per Adjusted Diluted Share(1)

•Adjusted EBITDAX(1) of $424.0 million

•Net cash provided by operating activities of $337.7 million

•Free Cash Flow(1) of $200.5 million

•Average daily net production of 56,432 Boepd(2)

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•Capital expenditures of $201.6 million

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

(2)Represents reported sales volumes.

Management Comments

Robert J. Anderson, President and Chief Executive Officer of Earthstone, stated, “Our strong second quarter results reflect the continued positive impacts of our consolidation strategy. Over the last year and a half, we have become a larger scale, low-cost producer and have grown production volumes multiple times over while also adding to our robust drilling inventory through accretive, well-priced acquisitions. This ongoing transformation enabled us to substantially increase Free Cash Flow in the second quarter by approximately 362%, sequentially, to $165 million driven by a step change in our daily production and the continued strength of commodity prices.”

“We have also been pleased with our ability to optimize our operations, identify synergies within our recent acquisitions, and manage our costs in this challenging inflationary environment,” added Anderson. “We continue to drive down our LOE and cash G&A per BOE which was, on a combined basis, 5% lower in the second quarter compared to the first quarter. We are looking forward to closing on the northern Delaware Basin assets from the Titus Acquisition later this month and incorporating this high-quality inventory into our development plans. The Titus Acquisition is expected to increase our total production to near 100,000 Boepd upon close, and we expect the assets will contribute an incremental 30% to our Adjusted EBITDAX. In the near-term, we intend to continue using our significant Free Cash Flow to rapidly pay down debt in pursuit of our target Debt / LQA Adjusted EBITDAX ratio of less than 1.0x by year-end. As always, we will remain focused on executing our growing operational program and generating record levels of free cash flow, which we believe will drive meaningful shareholder value,” concluded Anderson.

Updated 2022 Guidance

We are providing updated guidance for 2022, which accounts for the expected closing of the Titus Acquisition in mid-August 2022, increased drilling and completion activity, a recent non-operated asset sale and updated cost expectations. Estimated second half of 2022 capital expenditures are $300-325 million, which implies full year 2022 capital expenditure guidance of $502-527 million. Incremental activity including related infrastructure accounts for a 14% increase at the midpoint of our prior full year 2022 capital guidance while cost inflation on our base drilling program accounts for a 7% increase. The updated capital guidance assumes addition of a fifth rig during the fall which will be focused on the Delaware Basin, bringing the total rig count in the Delaware Basin to three rigs, while maintaining two rigs in the Midland Basin. We expect to complete an additional six gross operated wells on the Titus Acquisition assets and spud an additional four gross operated wells within our expanded capital program. Production guidance for the second half of the year incorporates the expected near-term closing of the Titus Acquisition as well as a recent non-operated asset sale. The Company anticipates third quarter production to be 86-90 MBoepd (~41% oil). Furthermore, we expect production to average 96-100 MBoepd (~44% oil) in the fourth quarter with a full impact from the Titus Acquisition.

Production Guidance	1H22 Actuals	3Q22(1)	4Q22(1)	FY 2022(1)
Production (Boe/d)	56,432	86,000 - 90,000	96,000 - 100,000	73,858 - 75,875
% Oil	39%	~41%	~44%	~41%
% Liquids	67%	~68%	~70%	~68%
Expense & Capex Guidance	1H22 Actuals	Remainder of 2022(1)	FY 2022(1)
Total Capital Expenditures ($MM)	$202	$300 - $325	$502 - $527
Lease Operating Expense ($/Boe)	$7.06	$7.50 - $8.00	$7.33 - $7.65
Production & Ad Valorem Taxes (% of Revenue)	7.1%	7.5% - 8.0%	7.3% - 7.7%
Cash G&A ($MM)(2)	$15	$20 - $22	$35 - $37

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(1)Includes the projected impact of the Titus Acquisition expected to close in mid-August 2022.

(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.

Operations Update

During the second quarter of 2022 for our Company-operated activity, we commenced drilling seven gross (5.6 net) wells and brought six gross (4.8 net) wells online in the Midland Basin. In the Delaware Basin, we commenced drilling eight gross (5.6 net) wells and brought six gross (4.0 net) wells online.

We brought online a two-well pad in Lea County, the Bel-Air 5-8 pad, in late June.This pad is one of our first sets of wells to be drilled and completed by us from start to finish after closing on our initial Delaware Basin acquisition earlier this year.After initially allowing the wells to flow naturally, we recently installed artificial lift and are seeing current average production rates of 1,085 Boepd (92% oil) per well as the wells continue to clean up.

We are currently operating a four-rig drilling program, with two rigs in the Midland Basin and two rigs in the Delaware Basin. We anticipate picking up a fifth rig late in the third quarter of 2022 that will be operated in the Delaware Basin. For full year 2022 and only for our Company-operated activity, we anticipate spudding 38 gross (33.5 net) wells and bringing 34 gross (30.7 net) wells online in the Midland Basin. In the Delaware Basin, we anticipate spudding 28 gross (19.1 net) wells and bringing 27 gross (19.3 net) wells online. This includes spudding four more Delaware Basin wells in 2022 compared to our prior plans as a result of drilling efficiencies and also includes spudding an incremental four gross (3.3 net) wells and bringing an incremental six gross (5.5 net) wells online in the Delaware Basin as a result of the Titus Acquisition and the expected addition of the fifth rig.

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Selected Financial Data (unaudited)

($000s except where noted)	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Total revenues	$	472,551	$	89,671	$	668,701	$	165,243
Lease operating expense	50,514		11,747		72,145		22,596
General and administrative expense (excluding stock-based compensation)	8,117		4,758		14,593		9,809
Stock-based compensation	5,960		4,412		11,790		7,741
General and administrative expense	$	14,077	$	9,170	$	26,383	$	17,550
Net income (loss)	$	218,025	$	(15,831)	$	166,148	$	(26,387)
Less: Net income (loss) attributable to noncontrolling interest	73,140		(6,960)		54,741		(11,683)
Net income (loss) attributable to Earthstone Energy, Inc.	144,885		(8,871)		111,407		(14,704)
Net income (loss) per common share(1)
Basic	1.85		(0.20)		1.57		(0.34)
Diluted	1.46		(0.20)		1.37		(0.34)
Adjusted EBITDAX(2)	$	300,875	$	53,668	$	423,964	$	97,511
Production(3):
Oil (MBbls)	2,587		1,083		4,004		2,140
Gas (MMcf)	14,414		2,927		20,053		5,372
NGL (MBbls)	2,029		496		2,869		861
Total (MBoe)(4)	7,018		2,067		10,214		3,896
Average Daily Production (Boepd)	77,125		22,716		56,432		21,525
Average Prices:
Oil ($/Bbl)	110.80		65.47		106.00		61.56
Gas ($/Mcf)	6.67		2.29		5.94		2.33
NGL ($/Bbl)	44.25		24.31		43.66		24.35
Total ($/Boe)	67.33		43.38		65.47		42.41
Adj. for Realized Derivatives Settlements:
Oil ($/Bbl)	87.30		52.39		83.16		50.06
Gas ($/Mcf)	5.40		2.19		4.97		2.20
NGL ($/Bbl)	44.25		24.31		43.66		24.35
Total ($/Boe)	56.06		36.38		54.62		35.91
Operating Margin per Boe
Average realized price	$	67.33	$	43.38	$	65.47	$	42.41
Lease operating expense	7.20		5.68		7.06		5.80
Production and ad valorem taxes	4.87		2.50		4.65		2.62
Operating margin per Boe(2)	55.26		35.19		53.76		33.99
Realized hedge settlements	(11.27)		(7.00)		(10.85)		(6.50)
Operating margin per Boe (including realized hedge settlements)(2)	$	43.99	$	28.19	$	42.91	$	27.49

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

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

(3)Represents reported sales volumes.

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

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Liquidity and Equity Capitalization

As of June 30, 2022, we had $395 million of long-term debt outstanding under our senior secured credit facility (“Credit Facility”) with elected commitments of $800 million, resulting in available borrowings of approximately $405 million. As of June 30, 2022, our borrowing base was $1.4 billion.

During the month ended July 31, 2022, we paid down an additional $145 million on our Credit Facility, bringing the drawn amount to $250 million. Additionally, we had approximately $14 million of cash in our bank accounts at July 31, 2022.

Through June 30, 2022, we had incurred $201.6 million of capital expenditures. We expect to fund the estimated $300-325 million of second half of 2022 capital expenditures with cash flow from operations while any excess cash flow will be used to repay borrowings under our Credit Facility.

As of July 31, 2022, 104,442,648 shares of Class A Common Stock and 34,261,641 shares of Class B Common Stock were outstanding.

Commodity Hedging

Hedging Activities

The following table sets forth our outstanding derivative contracts as of June 30, 2022. When aggregating multiple contracts, the weighted average contract price is disclosed.

As of June 30, 2022:

	Price Swaps
Period	Commodity	Volume (Bbls / MMBtu)	Weighted Average Price ($/Bbl / $/MMBtu)
Q3 - Q4 2022	Crude Oil	2,162,000	$	66.70
Q1 - Q4 2023	Crude Oil	1,277,500	$	76.20
Q3 - Q4 2022	Crude Oil Basis Swap (1)	3,082,000	$	0.61
Q1 - Q4 2023	Crude Oil Basis Swap (1)	4,743,500	$	0.59
Q3 - Q4 2022	Natural Gas	5,159,500	$	3.52
Q1 - Q4 2023	Natural Gas	3,670,000	$	3.35
Q3 - Q4 2022	Natural Gas Basis Swap (2)	3,680,000	$	(0.33)
Q1 - Q4 2023	Natural Gas Basis Swap (2)	36,500,000	$	(1.47)
Q1 - Q4 2024	Natural Gas Basis Swap (2)	36,600,000	$	(1.05)

(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 2022	Crude Oil Costless Collar	1,357,000	$	71.86	$	91.39
Q1 - Q4 2023	Crude Oil Costless Collar	2,828,000	$	65.74	$	91.90
Q3 - Q4 2022	Natural Gas Costless Collar	11,400,500	$	4.08	$	6.48
Q1 - Q4 2023	Natural Gas Costless Collar	14,133,000	$	3.46	$	5.34

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	Deferred Premium Puts
Period	Commodity	Volume (Bbls / MMBtu)	$/Bbl (Put Price)		$/Bbl (Net of Premium)
Q3 - Q4 2022	Crude Oil	253,000	$	80.00	$	75.79
Q1 - Q4 2023	Crude Oil	638,000	$	70.00	$	62.85

Environmental Data Highlights

Consistent with Earthstone’s commitment to environmental stewardship, Earthstone has updated data on its emissions, flaring and land impact, which is available under the “Sustainability” section of our website. Key highlights for 2021 include:

•36% reduction in Greenhouse Gas Emissions intensity to 7.9 mT CO2e / MBoe compared to 2020, which is 44% below Permian peers (1)

•68% reduction in Flaring Intensity of 0.69% (gas flared / gas produced) compared to 2020, which is 66% below Permian peers (1)

•Zero reportable oil and water spills in 2020 and 2021

(1)Greenhouse Gas Emissions are based on reported gross operated production and metrics are calculated in accordance with the standards of the U.S. Environmental Protection Agency (“EPA”). Flaring Intensity is based on gross reported operated production. Peers include CDEV, CPE, FANG, LPI, MTDR, PXD and SM. Data compiled from company published data for most recent available year (2020 or 2021) and from publicly available EPA reports as of June 30, 2022.

Conference Call Details

Earthstone is hosting a conference call on Friday, August 5, 2022 at 10:00 a.m. Eastern (9:00 a.m. Central) to discuss the Company’s financial results for the second quarter of 2022 and its outlook for the remainder of 2022. 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 10:00 a.m. Eastern (9:00 a.m. Central), Friday, August 19, 2022. The number for the replay is 877-660-6853 for domestic calls or 201-612-7415 for international calls, using Replay ID: 13731790.

About Earthstone Energy, Inc.

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

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that are not strictly

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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,” “forecast,” “guidance,” “target,” “potential,” “possible,” or “probable” or statements that certain actions, events or results “may,” “will,” “should,” or “could” be taken, occur or be achieved. Forward-looking statements are based on current expectations and assumptions and analyses made by Earthstone and its management in light of experience and perception of historical trends, current conditions and expected future developments, as well as other factors appropriate under the circumstances that involve various risks and uncertainties that could cause actual results to differ materially from those reflected in the statements. These risks include, but are not limited to, those set forth in Earthstone’s annual report on Form 10-K for the year ended December 31, 2021, recent quarterly reports on Form 10-Q, recent current reports on Form 8-K, and other Securities and Exchange Commission (“SEC”) filings. Earthstone undertakes no obligation to revise or update publicly any forward-looking statements except as required by law.

Contact

Scott Thelander

Vice President of Finance

Earthstone Energy, Inc.

1400 Woodloch Forest Drive, Suite 300

The Woodlands, TX 77380

281-298-4246

scott@earthstoneenergy.com

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EARTHSTONE ENERGY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In thousands, except share and per share amounts)

	June 30,		December 31,
ASSETS	2022		2021
Current assets:
Cash	$	—	$	4,013
Accounts receivable:
Oil, natural gas, and natural gas liquids revenues	230,449		50,575
Joint interest billings and other, net of allowance of $19 and $19 at June 30, 2022 and December 31, 2021, respectively	22,004		2,930
Derivative asset	3,327		1,348
Prepaid expenses and other current assets	13,646		2,549
Total current assets	269,426		61,415
Oil and gas properties, successful efforts method:
Proved properties	3,167,140		1,625,367
Unproved properties	282,569		222,025
Land	5,482		5,382
Total oil and gas properties	3,455,191		1,852,774
Accumulated depreciation, depletion and amortization	(495,971)		(395,625)
Net oil and gas properties	2,959,220		1,457,149
Other noncurrent assets:
Office and other equipment, net of accumulated depreciation and amortization of $4,761 and $4,547 at June 30, 2022 and December 31, 2021, respectively	2,944		1,986
Derivative asset	3,523		157
Operating lease right-of-use assets	2,423		1,795
Other noncurrent assets	53,423		33,865
TOTAL ASSETS	$	3,290,959	$	1,556,367
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	80,386	$	31,397
Revenues and royalties payable	150,087		36,189
Accrued expenses	72,168		31,704
Asset retirement obligation	390		395
Derivative liability	122,067		45,310
Advances	5,774		4,088
Operating lease liabilities	850		681
Other current liabilities	767		851
Total current liabilities	432,489		150,615
Noncurrent liabilities:
Revolving credit facility	395,000		320,000
8.000% Senior Notes due 2027, net	537,753		—
Deferred tax liability	36,277		15,731
Asset retirement obligation	35,555		15,471
Derivative liability	19,761		571
Operating lease liabilities	1,736		1,276
Other noncurrent liabilities	13,004		6,442

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Total noncurrent liabilities	1,039,086		359,491
Equity:
Preferred stock, $0.001 par value, 19,720,000 shares authorized; none issued or outstanding	—		—
Series A Convertible Preferred Stock, $0.001 par value, 280,000 shares authorized, issued and outstanding at June 30, 2022. None authorized, issued or outstanding at December 31 2021	—		—
Class A Common Stock, $0.001 par value, 200,000,000 shares authorized; 79,217,423 and 53,467,307 issued and outstanding at June 30, 2022 and December 31, 2021, respectively	79		53
Class B Common Stock, $0.001 par value, 50,000,000 shares authorized; 34,261,641 and 34,344,532 issued and outstanding at June 30, 2022 and December 31, 2021, respectively	34		34
Additional paid-in capital	1,326,293		718,181
Accumulated deficit	(48,367)		(159,774)
Total Earthstone Energy, Inc. equity	1,278,039		558,494
Noncontrolling interest	541,345		487,767
Total equity	1,819,384		1,046,261
TOTAL LIABILITIES AND EQUITY	$	3,290,959	$	1,556,367

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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,
	2022		2021		2022		2021
REVENUES
Oil	$	286,632	$	70,918	$	424,384	$	131,737
Natural gas	96,125		6,690		119,083		12,542
Natural gas liquids	89,794		12,063		125,234		20,964
Total revenues	472,551		89,671		668,701		165,243
OPERATING COSTS AND EXPENSES
Lease operating expense	50,514		11,747		72,145		22,596
Production and ad valorem taxes	34,195		5,176		47,510		10,203
Depreciation, depletion and amortization	66,463		26,027		100,789		50,434
General and administrative expense	14,077		9,170		26,383		17,550
Transaction costs	(402)		507		10,340		2,613
Accretion of asset retirement obligation	708		303		1,105		593
Exploration expense	—		30		92		30
Total operating costs and expenses	165,555		52,960		258,364		104,019
Gain on sale of oil and gas properties	—		348		—		348
Income from operations	306,996		37,059		410,337		61,572
OTHER INCOME (EXPENSE)
Interest expense, net	(16,625)		(2,401)		(21,943)		(4,618)
Loss on derivative contracts, net	(49,907)		(51,175)		(201,387)		(84,438)
Other income, net	249		200		296		303
Total other expense	(66,283)		(53,376)		(223,034)		(88,753)
Income (loss) before income taxes	240,713		(16,317)		187,303		(27,181)
Income tax (expense) benefit	(22,688)		486		(21,155)		794
Net income (loss)	218,025		(15,831)		166,148		(26,387)
Less: Net income (loss) attributable to noncontrolling interest	73,140		(6,960)		54,741		(11,683)
Net income (loss) attributable to Earthstone Energy, Inc.	$	144,885	$	(8,871)	$	111,407	$	(14,704)
Net income (loss) per common share attributable to Earthstone Energy, Inc.:
Basic	$	1.85	$	(0.20)	$	1.57	$	(0.34)
Diluted	$	1.46	$	(0.20)	$	1.37	$	(0.34)
Weighted average common shares outstanding:
Basic	78,291,037		44,127,718		70,909,353		43,457,043
Diluted	102,410,036		44,127,718		84,266,422		43,457,043

10

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,
	2022		2021		2022		2021
Cash flows from operating activities:
Net income (loss)	$	218,025	$	(15,831)	$	166,148	$	(26,387)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization	66,463		26,027		100,789		50,434
Accretion of asset retirement obligations	708		303		1,105		593
Settlement of asset retirement obligations	(274)		(38)		(475)		(53)
(Gain) on sale of oil and gas properties	—		(348)		—		(348)
Gain on sale of office and other equipment	(24)		(114)		(46)		(114)
Total loss on derivative contracts, net	49,907		51,175		201,387		84,438
Operating portion of net cash paid in settlement of derivative contracts	(79,099)		(14,522)		(110,785)		(25,427)
Stock-based compensation - equity portion	2,693		4,412		4,994		7,741
Deferred income taxes	21,873		(486)		20,546		(794)
Amortization of deferred financing costs	1,442		198		2,069		339
Changes in assets and liabilities:
(Increase) decrease in accounts receivable	(135,580)		1,198		(184,315)		(4,181)
(Increase) decrease in prepaid expenses and other current assets	(9,207)		(481)		(11,103)		(114)
Increase (decrease) in accounts payable and accrued expenses	49,671		2,963		71,454		8,352
Increase (decrease) in revenues and royalties payable	70,638		3,876		85,570		1,795
Increase (decrease) in advances	(2,561)		(3,188)		(9,661)		(2,830)
Net cash provided by operating activities	254,675		55,144		337,677		93,444
Cash flows from investing activities:
Acquisition of oil and gas properties, net of cash acquired	(711,091)		(53,162)		(1,035,289)		(187,803)
Additions to oil and gas properties	(124,456)		(19,325)		(180,381)		(28,238)
Additions to office and other equipment	(766)		(144)		(1,356)		(370)
Proceeds from sales of oil and gas properties	—		200		—		200
Net cash used in investing activities	(836,313)		(72,431)		(1,217,026)		(216,211)
Cash flows from financing activities:
Proceeds from borrowings	889,074		182,964		1,471,572		360,078
Repayments of borrowings	(1,118,303)		(165,028)		(1,396,572)		(233,718)
Proceeds from issuance of 8% Senior Notes due 2027, net	537,250		—		537,250		—
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	(719)		(741)		(4,617)		(2,821)
Cash paid for finance leases	—		(50)		—		(70)
Deferred financing costs	(5,472)		(827)		(11,623)		(1,718)
Net cash provided by financing activities	581,156		16,318		875,336		121,751
Net decrease in cash	(482)		(969)		(4,013)		(1,016)
Cash at beginning of period	482		1,447		4,013		1,494
Cash at end of period	$	—	$	478	$	—	$	478
Supplemental disclosure of cash flow information
Cash paid for:
Interest	$	4,888	$	2,350	$	9,468	$	4,272
Income taxes	$	625	$	—	$	625	$	797
Non-cash investing and financing activities:
Class A Common Stock issued in IRM Acquisition	$	—	$	—	$	—	$	76,572
Class A Common Stock issued in Chisholm Acquisition	$	—	$	—	$	249,515	$	—
Class A Common Stock issued in Bighorn Acquisition	$	77,757	$	—	$	77,757	$	—
Accrued capital expenditures	$	(5,568)	$	3,641	$	44,285	$	11,416
Lease asset additions - ASC 842	$	—	$	—	$	678	$	—
Asset retirement obligations	$	198	$	(266)	$	284	$	161

11

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 a financial indicator.

I. Adjusted Diluted Shares

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

Our Adjusted Diluted Shares 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,
	2022	2021	2022	2021
Class A Common Stock - Diluted(1)(2)	102,410,036	44,127,718	84,266,422	43,457,043
Class B Common Stock	34,268,723	34,409,867	34,295,444	34,455,755
Adjusted Diluted Shares	136,678,759	78,537,585	118,561,866	77,912,798

(1)Includes dilutive effect of Series A Convertible Preferred Stock issued on April 14, 2022 for the three and six months ended June 30, 2022.

(2)Does not include potentially dilutive unvested restricted stock units and performance units for the three and six months ended June 30, 2021.

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 (loss) because of its wide acceptance by the investment community as a financial indicator.

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

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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 income (loss) 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 (loss) to Adjusted EBITDAX for the periods indicated:

($000s)	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Net income (loss)	$	218,025	$	(15,831)	$	166,148	$	(26,387)
Accretion of asset retirement obligations	708		303		1,105		593
Depreciation, depletion and amortization	66,463		26,027		100,789		50,434
Interest expense, net	16,625		2,401		21,943		4,618
Transaction costs	(402)		507		10,340		2,613
(Gain) on sale of oil and gas properties	—		(348)		—		(348)
Exploration expense	—		30		92		30
Unrealized (gain) loss on derivative contracts	(29,192)		36,653		90,602		59,011
Stock based compensation(1)	5,960		4,412		11,790		7,741
Income tax expense (benefit)	22,688		(486)		21,155		(794)
Adjusted EBITDAX	$	300,875	$	53,668	$	423,964	$	97,511

(1)Consists of expense for non-cash equity awards and cash-based liability awards that are expected to be settled in cash. 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 (loss) plus, when applicable, unrealized gain (loss) on derivative contracts; (gain) on sale of oil and gas properties; 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 (loss) 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

13

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 (loss) to Adjusted Net Income for the periods indicated:

($000s, except share and per share data)	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Net income (loss)	$	218,025	$	(15,831)	$	166,148	$	(26,387)
Unrealized gain (loss) on derivative contracts	(29,192)		36,653		90,602		59,011
(Gain) on sale of oil and gas properties	—		(348)		—		(348)
Transaction costs	(402)		507		10,340		2,613
Income tax effect of the above	(12,705)		(700)		(15,190)		(1,166)
Adjusted Net Income	$	175,726	$	20,281	$	251,900	$	33,723
Adjusted Diluted Shares(1)	136,678,759		78,537,585		118,561,866		77,912,798
Adjusted Net Income per Adjusted Diluted Share	$	1.29	$	0.26	$	2.12	$	0.43

(1)Does not include potentially dilutive unvested restricted stock units and performance units for the three and six months ended June 30, 2021.

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, 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; plus (3) the liability portion of stock-based compensation which is included in General and administrative expense in the Condensed Consolidated Statements of Operations; plus (4) the current portion of income tax (expense) benefit from the Condensed Consolidated Statements of Operations; less (5) Capital expenditures (accrual basis). Alternatively, Free Cash Flow could be defined as Adjusted EBITDAX (defined above), less interest expense, less accrual-based capital expenditures.

Management believes that Free Cash Flow, which measures our ability to generate additional 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.

14

Free Cash Flow for the periods indicated:

($000s)	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Net cash provided by operating activities	$	254,675	$	55,144	$	337,677	$	93,444
Adjustments - Condensed Consolidated Statements of Cash Flows
Settlement of asset retirement obligations	274		38		475		53
Gain on sale of office and other equipment	24		114		46		114
Amortization of deferred financing costs	(1,442)		(198)		(2,069)		(339)
Change in assets and liabilities	27,039		(4,368)		48,055		(3,022)
Adjustments - Condensed Consolidated Statements of Operations
Transaction costs	(402)		507		10,340		2,613
Exploration expense	—		30		92		30
Stock-based compensation - liability portion	3,267		—		6,796		—
Income tax expense - current	815		—		609		—
Capital expenditures (accrual basis)	(119,451)		(22,820)		(201,560)		(32,621)
Free Cash Flow	$	164,799	$	28,447	$	200,461	$	60,272

Alternate calculation of Free Cash Flow for the periods indicated:

($000s)	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Adjusted EBITDAX	$	300,875	$	53,668	$	423,964	$	97,511
Interest expense, net	(16,625)		(2,401)		(21,943)		(4,618)
Capital expenditures (accrual basis)	(119,451)		(22,820)		(201,560)		(32,621)
Free Cash Flow	$	164,799	$	28,447	$	200,461	$	60,272

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 (loss) 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.

15

EX-99.2

The Transformed Earthstone Au g u s t   4 ,   2 0 2 2 1 Exhibit 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 Earthstone’s recent and pending acquisitions of oil and gas properties (including the pending acquisition of oil and gas properties from Titus Oil & Gas LLC and its affiliates (the “Titus Acquisition”)) , 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: Earthstone’s ability to successfully integrate the oil and gas properties it has recently acquired (or will acquire in the Titus Acquisition) and achieve anticipated benefits from them; risks relating to any unforeseen liabilities of Earthstone or the oil and gas properties it has recently acquired; declines in oil, natural gas liquids or natural gas prices; 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 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; social, market and regulatory efforts to address climate change; and the direct and indirect impact on most or all of the foregoing on the evolving COVID‐19 pandemic. Earthstone’s annual report on Form 10‐K for the year ended December 31, 2021, 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 2022 production, capital expenditures and expense guidance, including with respect to the pro forma effect of the Titus Acquisition on these and other metrics. 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 2022 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 may include financial measures that are not in accordance with accounting principles generally accepted in the United States (“GAAP”) such as PV‐10, free cash flow 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 10‐Q and 10‐K filings with the SEC. 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 2021 Form 10‐K and our other reports and filings with the SEC. 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

High Free Cash Flow Generation with  Low Reinvestment Needs Only ~40‐50% of cash flow needed to   maintain production levels, creates robust  free cash flow generation1 Top Basins /  Long Inventory Life Midland Basin and Delaware Basin  asset base with ~12 years of high  quality inventory life The New Earthstone: Significantly Larger Scale, Same Core Values 1. Free cash flow is a non‐GAAP measure defined as Adjusted EBITDAX less interest expense less capital expenditures (accrual basis). Greater Efficiency from  Increased Critical Mass Seven acquisitions since early 2021  increased production by >5x and  improved cost and operating efficiencies Low Leverage Recent acquisitions approximately  leverage neutral with year‐end 2022  leverage expected below 1.0x Progressing Towards  Shareholder Returns “New Earthstone” provides for  accelerated consideration of shareholder  return program Commitment  & Focus “Do the right thing” commitment  to stakeholders, employees and  environment 3

A Much Larger Earthstone: Corporate Snapshot 4 Select Operational Data 360 MMBoe Est. Proved Reserves1,2 $6.2 Billion PV‐10 at Strip1,2 98,000 Boe/d 4Q22 Production Guidance  Midpoint1 ~256,000 Permian Net Acres1 Select Financial Data 2Q22 7/31/22             PF Titus⁴ Stock Price (8/2/22) $14.29 $14.29 Market Cap $1.9 B $2.0 B Net Debt $933 MM  $1.3 B Enterprise Value $2.9 B $3.3 B Shares Outstanding 139 MM 143 MM Liquidity $405 MM $434 MM 77% 2Q22 Unhedged              Cash Margin3 890  Gross Operated  Drilling Locations1 Texas MIDLAND DELAWARE PERMIAN BASIN New Mexico   Lea Eddy Howard Ector Upton Midland Crockett Irion Sterling Glasscock Reagan Note:  See appendix for additional details. Martin Earthstone Acreage Titus Acreage

Conservative Valuation Methodology Leads to High Impact Acquisitions 5 Cumulative Proved Developed Reserves Value Greater Than Combined Total Purchase Price1 1. Cumulative estimated PD value based upon forward strip pricing at the time of each announced transaction.  Undeveloped locations acquired “virtually”  free as PD value of acquired properties is  higher than cumulative total purchase price Cumulative PD PV‐10 value  Cumulative Purchase Price IRM Tracker Chisholm Bighorn Titus 696 Gross Operated Drilling Locations  Acquired Across all six significant transactions, proved  developed value of reserves has underpinned  purchase price1

$0.5 B 79 MMBoe $2.0 B 148 MMBoe $6.2 B 360 MMBoe¹ YE20 SEC Pricing YE21 SEC Pricing PF Titus 8/1/22 Reserves 7/27/22 Strip¹ PD PUD Shareholder Value Accretion Reflected in Enormous Proved Reserves Growth 6 Proved PV‐10 Uplift from YE20 With estimated PD reserves composing  ~80% of the total proved reserves value In Proved Reserves Value  Based on pro forma common shares  outstanding and net debt2 ~12x ~$34 per share Est. Proved Developed Value Current PD reserves value is significantly  higher than current enterprise value1 >$4.9B Robust Value Growth in Proved Reserves With Majority Coming from Proved Developed Reserves Additions 1. Estimated PD reserves value of $4.9 billion as of 8/1/22 at NYMEX strip pricing as of 7/27/22. Pro forma for the anticipated Titus Acquisition closing. See appendix for additional details.  2. Calculated as 8/1/22 estimated proved reserves value at NYMEX strip pricing as of 7/27/22 less net debt and divided by pro forma common share count of ~142.6 million, pro forma for the anticipated Titus  Acquisition closing.

Robust Proved Developed and Inventory Profile 1P Reserves as of 8/1/222 Reserves and Inventory | Earthstone + Titus 7 1. Earthstone management estimate of proved developed reserve volumes and values as of 8/1/22, discounting cash flows at a rate of 10% and utilizing NYMEX strip prices as of 7/27/22. 2. Represents management’s estimates for combined reserves of Earthstone and Titus as of 8/1/22 utilizing NYMEX strip pricing as of 7/27/22. 3. Includes all locations across reserve categories. 1P Reserves PV‐10 Value as of 8/1/222 Pro Forma PV‐10 Value ($MM) Proved Developed $4,929 Proved Undeveloped $1,227 Total Proved $6,156 75% 25% PD PUD 360 MMBoe • The Titus Acquisition brings a significant Proved Developed Reserves PV‐10  component of ~$836 million to Earthstone1 • On a combined basis, Total Proved Developed Reserves PV‐10 value of  ~$4.9 billion which exceeds current pro forma enterprise value2 • Over 890 gross operated drilling locations provides significant runway for  future development  Gross Operated Locations3 Lea EddyMidland/Ector Upton Reagan/Irion Titus 890 Gross Operated  Locations

$13.79  $14.07  $14.63  $14.86  $15.77  $18.22  $18.44  $19.95  $20.44  $21.16  Peer 1 Peer 2 ESTE 2Q22 Peer 4 ESTE 1Q22 Peer 6 Peer 8 Peer 3 Peer 5 Peer 7 80%  80%  77%  77%  76%  76%  72%  71%  71%  69%  Peer 1 Peer 2 ESTE 2Q22 Peer 3 ESTE 1Q22 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Focused On Remaining a Low‐Cost Leader With Top Tier Cash Margins 8 1Q22 “All‐in” Cash Costs11Q22 Unhedged Cash Margins1 1. Cash margins are calculated as revenues less all‐in cash costs which consist of LOE, ad valorem & production taxes, transportation expense, cash G&A, and interest expense.  Large‐Cap peers include FANG and PXD.  SMID‐Cap  peers include CDEV, CPE, HPK, LPI, MTDR and SM.  Cash G&A is a non‐GAAP financial measure defined as general and administrative expenses excluding stock‐based compensation. Large‐Cap Peers SMID‐Cap Peers Peer Average: 74% Peer Average: $17.62 Large‐Cap Peers SMID‐Cap Peers

Expanded Capital Program Greatly expanded footprint and  highly‐economic inventory allows for  increased capital deployment and  supports program consistency  Enhanced Optionality Diversification and capital flexibility  in the Delaware and Midland  mitigate concentration risk Recent Delaware Additions Recently acquired Delaware Basin  assets improve oil content as  development ramps (impact in  2023 and beyond) Strategic Advantages Gained Through Our Expanded Scale 9 Operational Efficiency Scaled activity levels drives D&C  efficiency and enhances  relationships with key service  providers Low Decline Asset Base PDP decline rate of ~25% provides  for low reinvestment rate with some  organic growth

Production Guidance¹ 1H22 Actuals ESTE + Titus 3Q22 ESTE + Titus 4Q22 Implied FY22 Production (Boe/d) 56,432 86,000 ‐ 90,000 96,000 ‐ 100,000 73,858 ‐ 75,875 % Oil 39% ~41% ~44% ~41% % Liquids 67% ~68% ~70% ~68% Expense & Capex Guidance¹ 1H22 Actuals ESTE + Titus 2H22 Implied FY22 Total Capital Expenditures ($MM) $202 $300 ‐ $325 $502 ‐ $527   Lease Operating Expense ($/Boe) $7.06 $7.50 ‐ $8.00 $7.33 ‐ $7.65   Production & Ad Valorem Taxes (% of Revenue) 7.1% 7.5% ‐ 8.0% 7.3% ‐ 7.7%   Cash G&A ($MM)² $15 $20 ‐ $22 $35 ‐ $37   Company Guidance 10 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”. 1. Guidance assumes Titus Acquisition closes in mid‐August. 2. Cash G&A is a non‐GAAP financial measure defined as general and administrative expenses excluding stock‐based compensation.

Delaware D&C Infrastructure Non‐Op D&C Midland D&C Expanded Scale Supports Continuous Asset Development 11 Midland Basin Delaware Basin • 2 Rigs • Spud ~38 Gross Operated Wells • Average Well Lateral Length of ~9,200 Feet • ~90% Average Working Interest • 2 Rigs Going to 3 Rigs in 3Q22 • Spud ~28 Gross Operated Wells • Average Well Lateral Length of ~8,500 Feet  • ~70% Average Working Interest $502‐$527 Million 2022 Capital Budget

Opportunities Broaden for Free Cash Flow Allocation in the Future 12 FCF Likely Shifts Away from Deleveraging in 2023 • Efficiency of capital development allows for some growth  with reinvestment of just 40‐50% of operational cash flow • Expect to generate >$1.7 B in revenue and >$600 MM in FCF  annually at $85 oil and $3 gas1 • With debt levels below target threshold of 1.0x, a broader  opportunity for FCF allocation becomes available • Additional debt reduction becomes less critical and allows  for greater focus on scale opportunities and consideration of  shareholder returns Additional Debt  Reduction Increased  Development  Pace Opportunistic  Acquisitions Initiation of  Shareholder  Returns 1. FCF estimates based upon a maintenance capital scenario that holds production for 2023+ approximately flat with 2H22 current guidance levels. Free cash flow is a non‐GAAP measure defined as Adjusted EBITDAX less interest  expense less capital expenditures (accrual basis). See appendix for additional notes. Increased Optionality for Uses of  Free Cash Flow Beginning in 2023 Near term focus is on debt reduction, but will shift in 2023

2022 2023 2024 2025 2026 Current Mkt Cap² Cumulative Free Cash Flow Durable Multi‐Year Free Cash Flow Profile Provides Extensive Options 13 Free Cash Flow Outlook Under Maintenance Capital Program1Reliable Production and Reduced  Capital Needs Provide a  “Mountain” of FCF • Based upon a continuous maintenance  capital scenario, recent strip pricing  generates more than $3.0 B in cumulative  FCF by 20261 • Increased scale, cash flow, and relative  debt ratios support credit rating  improvement and lower corporate cost of  capital over time 1. FCF estimates based upon a maintenance capital scenario that holds production for 2023+ approximately flat with 2H22 current guidance levels at NYMEX strip pricing as of 7/27/22. Free cash flow is a non‐GAAP measure defined as  Adjusted EBITDAX less interest expense less capital expenditures (accrual basis). Market Capitalization based on ESTE stock price as of 8/2/22. See appendix for additional notes. 2. Based on current shares outstanding, adjusted for the anticipated mid‐August closing of Titus. Significant FCF generation  exceeds current market cap

$0 $500 $1,000 $1,500 YE20 YE21 6/30/22 PF Titus 7/31/22² $  in  m ill io ns Drawn RBL Debt Undrawn RBL Commitments Uncommitted Borrowing Base Availability Liquidity and Capital Structure Benefitting from Expanded Scale and Recent Offering 14 Significant Liquidity Supports All Potential  Capital Deployment Scenarios • Borrowing Base has grown from $240 MM at YE20 to  $1.4 B driven primarily by high value reserves and  production additions1 • Robust estimated PD reserves of ~$4.9 B with low  corporate decline rate (~25%) support continued  availability1 • YE22 facility utilization estimated to be <50% of elected  commitments of $1.2 B upon closing of the Titus  Acquisition2 • Amended Credit Facility in June 2022 to extend  maturity to 2027 with a borrowing base of $1.4 B and  elected commitments of $800 MM that will increase to  $1.2 B upon closing of the Titus Acquisition • $550 MM unsecured senior notes, 8% coupon, matures  in 2027 1. Estimated PD reserves of ~$4.9 billion reflect proved developed reserves as of 8/1/22 utilizing NYMEX strip pricing as of 7/27/22. Pro forma for the anticipated Titus Acquisition closing. See appendix for additional details. 2. Based on ESTE estimated borrowings at 7/31/22, all adjusted for the anticipated mid‐August closing of Titus. Borrowing Base increased to  $1.4 B with amended Credit  Facility

Responsible Management of Fugitive Emissions and Flaring 15 “Do the Right Thing” approach and proactive plan driving reductions in GHG emissions and flaring 68% Reduction vs. 2020 Below peer average 2021 Flaring Intensity of 0.7% (operated gas flared /  operated gas produced) 66% Note: Peers include CDEV, CPE, FANG, LPI, MTDR, PXD and SM. Data complied from company published data for most recent available year (2020 or 2021) and from publicly available EPA reports as of June 30, 2022. 2021 Greenhouse Gas Emissions Intensity of 7.9 (T CO2e / Mboe) 36% Reduction vs. 2020 Below peer average 44%

Progressing Our Sustainability Initiatives While Leading the Pack 16 Key Environmental Priorities Focus on  Responsible Operatorship Minimize fugitive emissions with the installation of  emission reducing equipment in conjunction with  new facility construction: – Vapor Recovery Units (“VRUs”) – Air compression equipment for Pneumatic  Actuators – Participation in fly over surveys  Leak Detection and Repair (“LDAR”) active since  2019 and complemented by FLIR imagery  feedback program Target Zero Flaring: Connect natural gas pipelines  ahead of flowback and first production negates  need for flaring Vast majority of water disposal occurs on pipeline,  reducing truck hauls and CO2 emissions 0.2% 0.2% 0.2% 0.4% 0.4% 0.4% 0.5% 0.5% 0.6% 0.6% 0.7% 0.8% 1.0% 1.0% 1.1% 1.2% 1.3% 1.5% 1.5% 1.6% 2.1% ESTE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 ESTE Among the Leaders in Permian Flaring Intensity Regardless of Market Cap1,2 Earthstone Mega‐Cap Permian SMID‐Cap Permian Large‐Cap Permian 1. Data courtesy of Rystad Energy, “Permian Flaring Intensity Report from February 2022”.  2. Mega‐Cap peers include BP, COP, CVX, and XOM. Large‐Cap peers include APA, CLR, DVN, EOG, FANG, MRO, OVV, OXY, and PXD. SMID‐Cap peers include CDEV, CPE, CTRA, LPI, MTDR, PDCE and SM. 

Focused on Providing Shareholders a Path to Value Accretion 17 Earthstone Management has consistently shown fundamental conservatism in assessing and  executing a broader corporate strategy of value driven investment in high quality assets,  operating cost leadership, and management of its balance sheet offering investors a reliable and predictable opportunity to invest in a growing operator. Greater Efficiency Achieved from  Increased Critical Mass Robust Inventory in the Premier Shale  Basins of the US Growing Free Cash Flow Generation with  Low Reinvestment Needs Historically Low Leverage and Expected to  be Below 1.0x by YE22  Improving the Opportunity to Implement  Meaningful Shareholder Returns Committed to Delivering for Stakeholders,  Employees, and the Environment 

Appendix 18

Development Optionality Across A Larger Footprint 19 Scaled Development Plans Continuous multi‐zone development program spread across both Midland and Delaware  Basin positions with typical development spacing at 3‐5 wells per section Midland: ~208,000 net acres Delaware: ~38,000 net acres 1st Bone Spring Carb /  Avalon Shale 1st Bone Spring Sand 2nd Bone Spring Carb 2nd Bone Spring Sand 3rd Bone Spring Carb 3rd Bone Spring Sand Wolfcamp A / XY Wolfcamp B Middle Spraberry Shale Lower Spraberry Sands Jo Mill Silt Lower Spraberry Shale Dean Wolfcamp A Upper Wolfcamp B Lower Wolfcamp B Wolfcamp C Wolfcamp D / Cline Shale 2, 57 5’  ‐3 ,6 50 ’ g ro ss  th ic kn es s 3,200’ gross thickness Secondary Target Zones Primary Target Zones 2022 Primary activity areas Earthstone Acreage Titus Acreage MIDLAND DELAWARE Texas New Mexico  

$66.70  $66.70  $76.20  $76.20  $76.20  $76.20  $75.79  $62.85  $62.85  $62.85  $62.85  $70.00/$83.96 $73.14/$96.49 $71.86/$91.39 $70.00/$83.96 $71.65/$90.52 $69.91/$87.81 17,750  23,250  13,500  13,500  12,500  12,500  3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 Swaps Puts Collars $3.626  $3.332  $3.400  $3.349  $3.349  $3.349  $4.115/$6.161 $4.048/$6.738 $4.077/$6.484 $4.115/$6.161 $4.082/$6.444 $4.008/$6.224 90,000  90,000  59,700  45,200  45,200  45,200  3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 Swaps Collars Oil and Gas Hedge Summary 20 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 • ~50% hedged for 2H22 and ~30% for 2023 Note: Includes all WTI and Henry Hub hedges as of 6/30/22.  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 quarter.   2. Reflects weighted average swap price and weighted average collar floor / ceiling prices each quarter.

Oil and Gas Hedge Positions 21Note: Hedgebook as of 6/30/22. WTI Oil Hedges - Swaps HH Gas Hedges - Swaps Period Volume (Bbls) Volume (Bbls/d) $/Bbl Period Volume (MMBtu) Volume (MMBtu/d) $/MMBtu 3Q 2022 1,081,000 11,750 $66.70 3Q 2022 3,266,000 35,500 $3.626 4Q 2022 1,081,000 11,750 $66.70 4Q 2022 1,893,500 20,582 $3.332 1Q 2023 315,000 3,500 $76.20 1Q 2023 232,500 2,583 $3.400 2Q 2023 318,500 3,500 $76.20 2Q 2023 1,137,500 12,500 $3.349 3Q 2023 322,000 3,500 $76.20 3Q 2023 1,150,000 12,500 $3.349 4Q 2023 322,000 3,500 $76.20 4Q 2023 1,150,000 12,500 $3.349 WTI Oil Hedges - Collars HH Gas Hedges - Collars Period Volume (Bbls) Volume (Bbls/d) $/Bbl (Floor) $/Bbl (Ceiling) Period Volume (MMBtu) Volume (MMBtu/d) $/MMBtu (Floor) $/MMBtu (Ceiling) 3Q 2022 552,000 6,000 $70.00 $83.96 3Q 2022 5,014,000 54,500 $4.115 $6.161 4Q 2022 805,000 8,750 $73.14 $96.49 4Q 2022 6,386,500 69,418 $4.048 $6.738 1Q 2023 720,000 8,000 $65.88 $92.57 1Q 2023 5,140,500 57,117 $4.161 $7.363 2Q 2023 728,000 8,000 $65.88 $92.57 2Q 2023 2,975,700 32,700 $3.061 $4.191 3Q 2023 690,000 7,500 $65.60 $91.20 3Q 2023 3,008,400 32,700 $3.061 $4.191 4Q 2023 690,000 7,500 $65.60 $91.20 4Q 2023 3,008,400 32,700 $3.061 $4.191 WTI Midland Argus Crude Basis Swaps WAHA Differential Basis Swaps Period Volume (Bbls) Volume (Bbls/d) $/Bbl (Differential) Period Volume (MMBtu) Volume (MMBtu/d) $/MMBtu 3Q 2022 1,150,000 12,500 $0.51 3Q 2022 1,840,000 20,000 ($0.327) 4Q 2022 1,932,000 21,000 $0.68 4Q 2022 1,840,000 20,000 ($0.327) 1Q 2023 1,215,000 13,500 $0.60 1Q 2023 9,000,000 100,000 ($1.466) 2Q 2023 1,228,500 13,500 $0.60 2Q 2023 9,100,000 100,000 ($1.466) 3Q 2023 1,150,000 12,500 $0.59 3Q 2023 9,200,000 100,000 ($1.466) 4Q 2023 1,150,000 12,500 $0.59 4Q 2023 9,200,000 100,000 ($1.466) FY 2024 36,600,000 100,000 ($1.050) WTI Deferred Premium Puts Period Volume (Bbls) Volume (Bbls/d) $/Bbl (Put Price) $/Bbl (Net of Premium) 4Q 2022 253,000 2,750 $80.00 $75.79 1Q 2023 180,000 2,000 $70.00 $62.85 2Q 2023 182,000 2,000 $70.00 $62.85 3Q 2023 138,000 1,500 $70.00 $62.85 4Q 2023 138,000 1,500 $70.00 $62.85

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 Cawley, Gillespie & Associates, Inc. (“CGA”), independent petroleum engineers, and which was prepared in accordance with Securities and Exchange Commission (“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. PV‐10 is a measure not prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) that differs from a measure under GAAP known as “standardized measure of discounted future net cash flows” in that PV‐10 is calculated without including future income taxes. Management believes that the presentation of the PV‐10 value of our oil and natural gas properties is relevant and useful to investors because it presents the estimated discounted future net cash flows attributable to our estimated proved reserves independent of our income tax attributes, thereby isolating the intrinsic value of the estimated future cash flows attributable to our reserves. We believe the use of a pre‐tax measure provides greater comparability of assets when evaluating companies because the timing and quantification of future income taxes is dependent on company‐specific factors, many of which are difficult to determine. For these reasons, management uses and believes that the industry generally uses the PV‐10 measure in evaluating and comparing acquisition candidates and assessing the potential rate of return on investments in oil and natural gas properties. PV‐10 does not necessarily represent the fair market value of oil and natural gas properties. PV‐10 is not a measure of financial or operational performance under GAAP, nor should it be considered in isolation or as a substitute for the standardized measure of discounted future net cash flows as defined under GAAP. The table below provides a reconciliation of PV‐10 to the standardized measure of discounted future net cash flows (in thousands): 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 

Estimated Proved Reserves Summary as of 8/1/22 at NYMEX Strip Pricing as of 7/27/22 23 This summary of proved developed reserve volumes and values as shown in the table below are pro forma for the Titus Acquisition that are based on management estimates and has been prepared as of August 1, 2022, utilizing NYMEX strip benchmark prices and basis differentials as of July 27, 2022, and in regard to PV‐10, discounting cash flows at a rate of 10%. 1. Pro forma for the anticipated mid‐August closing of the Titus Acquisition.  Combined PV‐10 Value ($mm)¹ Proved Developed $4,929 Proved Undeveloped $1,227 Total  Proved $6,156 Combined 1P Reserves (MMBoe)¹ Proved Developed 270.3 Proved Undeveloped 89.2 Total  Proved 359.6

Reconciliation of Non‐GAAP Financial Measure – Adjusted EBITDAX 24 2Q 2022 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. No cash‐based liability awards were settled in cash during 2021. 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 team and external users of its financial statements, such as industry analysts, investors, lenders and rating agencies. Earthstone’s management team believes Adjusted EBITDAX is useful because it allows Earthstone to more effectively evaluate its operating performance and compare the results of its operations from period to period without regard to its financing methods or capital structure. Earthstone defines Adjusted EBITDAX as net (loss) income plus, when applicable, (gain) on sale of oil and gas properties, net; accretion of asset retirement obligations; depletion, depreciation and amortization; transaction costs; interest expense, net; exploration expense; unrealized loss on derivative contracts; stock based compensation(1); and income tax (benefit) expense. Earthstone excludes the foregoing items from net (loss) income in arriving at Adjusted EBITDAX because these amounts can vary substantially from company to company within their industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDAX should not be considered as an alternative to, or more meaningful than, net (loss) income as determined in accordance with GAAP or as an indicator of Earthstone’s operating performance or liquidity. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDAX. Earthstone’s computation of Adjusted EBITDAX may not be comparable to other similarly titled measures of other companies or to similar measures in Earthstone’s revolving credit facility. The following table provides a reconciliation of Net income to Adjusted EBITDAX for: FY 2021 Adjusted EBITDAX ($ in 000s) 2Q22 Net income (loss) $218,025  Accretion of asset retirement obligations $708  Depreciation, depletion and amortization $66,463  Interest expense, net $16,625  Transaction costs ($402) (Gain) on sale of oil and gas properties $0  Exploration expense $0  Unrealized (gain) loss on derivative contracts ($29,192) Stock based compensation(1) $5,960  Income tax expense (benefit) $22,688  Adjusted EBITDAX $300,875  FY21 Net (loss) income $61,506  Accretion of asset retirement obligations $1,065  Depreciation, depletion and amortization $106,367  Interest expense, net $10,796  Transaction costs $4,875  (Gain) on sale of oil and gas properties ($738) Exploration expense $341  Unrealized loss on derivative contracts $40,795  Stock based compensation(1) $21,014  Income tax (benefit) expense $1,859  Adjusted EBITDAX $247,880 

Pro Forma Titus ($ in millions, except share price) As of 6/30/22¹ As of 7/31/22² Class  A Common Stock (MM) 104.4 108.3 Class  B Common Stock (MM) 34.3 34.3 Total Common Stock Outstanding (MM) 138.7 142.6 Stock Price (as  of 8/2/22) $14.29 $14.29 Market Capitalization $1,982.1 $2,037.8 Plus : Tota l  Debt $932.9 $1,303.9 Less : Cash  $0.0 $0.0 Enterprise Value $2,914.9 $3,341.7 Market Capitalization Table 25 Provided as of 8/2/2022¹ 1. Shares outstanding as of 7/28/22. 2. Based on shares outstanding as of 7/28/22 and ESTE estimated net debt at 7/31/22 all adjusted for the anticipated mid‐August closing of the Titus Acquisition.

Notes and Supplemental Information 26 Recent Strip Pricing (7/27/2022) • 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 2022. Proposed corporate guidance for 2023 and beyond will be designated as such at the time it is made available. In addition, the assumptions utilized for these scenario are as follows;   – Future production levels beyond 2022 are roughly flat with the projected 2H22 guidance provided by management – Capital costs for development and operating field costs on a unit basis are held roughly flat to 2H22 guidance – The corporate PDP decline rate is estimated at ~25% for 2022 and continues to decline at slightly lower rates in the following years Supplementary Footnotes (Page 4) 1. Pro Forma for the anticipated mid‐August closing of the Titus Acquisition. 2. Total estimated proved reserves as of 8/1/22 using NYMEX strip pricing as of 7/27/22. 3. Cash margins are calculated as revenues less all‐in cash costs which consist of LOE, ad valorem & production taxes, transportation expense, cash G&A, and interest expense.  4. Based on current shares outstanding and ESTE estimated net debt at 7/31/22, all adjusted for the anticipated mid‐August closing of the Titus Acquisition. Year WTI HH 2022 $97.90  $7.17  2023 $85.47  $5.81 2024 $79.06  $4.72 2025 $74.64  $4.54 2026 $71.42  $4.43

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Cover	Aug. 04, 2022
Cover [Abstract]
Document Type	8-K
Document Period End Date	Aug. 04, 2022
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