{ "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": 2, "pageCount": 25, "prevPage": 1, "nextPage": 3, "slideType": "disclaimer", "function": "front_matter", "density": "overcrowded", "nDataPoints": 0, "notes": null, "elementsJson": null, "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019de516-5ea7-72f9-b1d4-35ae8b15c4ce/2", "deckHref": "/decks/019de516-5ea7-72f9-b1d4-35ae8b15c4ce", "deckJsonHref": "/decks/019de516-5ea7-72f9-b1d4-35ae8b15c4ce.json", "deckAnchorHref": "/decks/019de516-5ea7-72f9-b1d4-35ae8b15c4ce#slide-2", "components": [ { "bbox": { "h": 0.07, "w": 0.916, "x": 0.044, "y": 0.801 }, "kind": "paragraph", "text": "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.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2d9f1ea8-c76a-4ab8-90dc-bcdcf7c5317c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.11, "w": 0.916, "x": 0.044, "y": 0.525 }, "kind": "paragraph", "text": "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.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3e073938-0a88-4bad-bb64-285e887877f4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.339, "w": 0.916, "x": 0.044, "y": 0.179 }, "kind": "paragraph", "text": "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.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "97ab5fc5-b144-4440-a13c-98209cd0e17d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.07, "w": 0.916, "x": 0.044, "y": 0.68 }, "kind": "paragraph", "text": "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.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9c86712b-d0e5-4b3c-9323-b2d94ce0b8fe", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.056, "w": 0.916, "x": 0.044, "y": 0.901 }, "kind": "paragraph", "text": "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.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d06a3334-47a6-429d-917f-ce0a14a72e7c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.035, "w": 0.299, "x": 0.044, "y": 0.069 }, "kind": "title", "text": "Disclaimer", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1c219402-4586-4e5c-adca-65a480d93bac", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.399, "x": 0.044, "y": 0.649 }, "kind": "title", "text": "Use of Non-GAAP Information", "attrs": null, "subkind": "subtitle", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3187d4ce-50a3-4f63-aec3-ee40410e06ec", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.59, "x": 0.044, "y": 0.77 }, "kind": "title", "text": "Cautionary Note on Reserves and Resource Estimates", "attrs": null, "subkind": "subtitle", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3cb52bd9-648b-43e5-97c2-32d3b34b206b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.399, "x": 0.044, "y": 0.149 }, "kind": "title", "text": "Forward-Looking Statements", "attrs": null, "subkind": "subtitle", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "bb96b908-a44b-4620-81e6-6964fd87c43c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.399, "x": 0.044, "y": 0.87 }, "kind": "title", "text": "Industry and Market Data", "attrs": null, "subkind": "subtitle", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c02cd5c9-070a-4e70-ac62-1d971ee9e365", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 5, "from": 1, "beatId": "34b8ea6b-d92c-4291-8c9f-de78281124f4", "arcName": "Monroe's Motivated Sequence", "arcSlug": "monroes-sequence", "beatName": "Attention", "beatSlug": "monroes-sequence-attention", "evidence": "The presentation begins with a cover slide, disclaimer, and key messages", "position": 0, "confidence": 0.8, "parentBeatName": "Hook", "parentBeatSlug": "hook" } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }