{ "docId": "019de516-5ea7-72f9-b1d4-35ae8b15c4ce", "docSlug": "01b87647c109f0038c3a7291dd341d94", "documentTitle": "Earthstone Energy | Results Presentation Deck | 25 slides", "authorId": "earthstone-energy", "authorName": "Earthstone Energy", "documentKindSlug": "conference-presentation", "documentKindLabel": "Conference presentation", "sourceTypeSlug": "investor_relations", "sourceTypeLabel": "Investor relations", "presentationDate": "2023-08-01 00:00:00", "orientation": "landscape", "aspectRatio": 1.7777778, "pageNumber": 18, "pageCount": 25, "prevPage": 17, "nextPage": 19, "slideType": "revenue_buildup", "function": "decompose_segments", "density": "overcrowded", "nDataPoints": 24, "notes": null, "elementsJson": null, "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019de516-5ea7-72f9-b1d4-35ae8b15c4ce/18", "deckHref": "/decks/019de516-5ea7-72f9-b1d4-35ae8b15c4ce", "deckJsonHref": "/decks/019de516-5ea7-72f9-b1d4-35ae8b15c4ce.json", "deckAnchorHref": "/decks/019de516-5ea7-72f9-b1d4-35ae8b15c4ce#slide-18", "components": [ { "bbox": { "h": 0.015, "w": 0.58, "x": 0.041, "y": 0.409 }, "kind": "paragraph", "text": "The following table provides a reconciliation of Net income (loss) to Adjusted EBITDAX for:", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2bbb6841-d5a5-4a1f-b178-9062db8cb818", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.919, "x": 0.041, "y": 0.086 }, "kind": "paragraph", "text": "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.", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5b68bfa3-2c63-4d45-aeee-156c584e785a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.19, "w": 0.919, "x": 0.041, "y": 0.21 }, "kind": "paragraph", "text": "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.", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "cbc6511a-e623-4055-8386-7196efc45b90", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.919, "x": 0.041, "y": 0.93 }, "kind": "source-note", "text": "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 $8.1 million. Stock-based compensation is included in General and administrative expense in the Condensed Consolidated Statements of Operations.", "attrs": { "numbered": true }, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "53c9ad21-cb4a-40d9-8349-1998d4cde57f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.42, "w": 0.419, "x": 0.54, "y": 0.449 }, "kind": "table", "text": "FY 2022 Adjusted EBITDAX ($ in 000s)\nFY22\nNet income (loss) $650,617\nAccretion of asset retirement obligations $2,652\nDepreciation, depletion and amortization $301,813\nInterest expense, net $66,821\nTransaction costs $8,248\n(Gain) loss on sale of oil and gas properties, net ($13,900)\nExploration expense $2,492\nUnrealized (gain) loss on derivative contracts ($70,769)\nStock based compensation (1) $35,369\nIncome tax expense (benefit) $124,416\nAdjusted EBITDAX $1,107,759", "attrs": {}, "subkind": "data", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "23eea60a-9648-4b98-8b25-9d4033805bf4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.42, "w": 0.38, "x": 0.079, "y": 0.449 }, "kind": "table", "text": "2Q 2023 Adjusted EBITDAX ($ in 000s)\n2Q23\nNet income (loss) $82,448\nAccretion of asset retirement obligations $646\nDepreciation, depletion and amortization $109,990\nImpairment expense $854\nInterest expense, net $22,092\nTransaction costs $208\nGain on sale of oil and gas properties, net ($49,254)\nExploration expense $6,082\nUnrealized loss on derivative contracts $39,891\nStock based compensation (1) $7,835\nIncome tax expense $18,053\nAdjusted EBITDAX $238,845", "attrs": {}, "subkind": "data", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8233b7c5-8d33-4be3-bd34-64246ba95c7c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.028, "w": 0.899, "x": 0.041, "y": 0.049 }, "kind": "title", "text": "Reconciliation of Non-GAAP Financial Measure – Adjusted EBITDAX", "attrs": {}, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "60bedeaf-5147-4289-8ff6-649b00733a14", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 25, "from": 15, "beatId": "e704e2db-ae6b-4cbb-b3ab-385aaa94588a", "arcName": "Monroe's Motivated Sequence", "arcSlug": "monroes-sequence", "beatName": "Action", "beatSlug": "monroes-sequence-action", "evidence": "The presentation concludes with an appendix and supporting data", "position": 3, "confidence": 0.8, "parentBeatName": "Resolution", "parentBeatSlug": "resolution" } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }