Earthstone Energy, Inc. (ESTE): history, ownership, mission, how it works & makes money

A Brief History of Earthstone Energy, Inc. (ESTE)

Founding and Early Years

Earthstone Energy, Inc. was founded in 2013, primarily focused on the acquisition and exploration of oil and natural gas properties in the United States. The company aimed to capitalize on the growing demand for energy resources amidst fluctuating global oil prices.

Initial Public Offering

In 2014, Earthstone Energy went public, trading on the New York Stock Exchange under the ticker symbol ESTE. The IPO price was set at $10.00 per share, raising approximately $29 million for the company.

Acquisitions and Growth

Earthstone Energy, Inc. rapidly expanded its asset base through strategic acquisitions. Notably, in 2017, the company acquired the assets of Bold Energy III LLC for approximately $243 million. This acquisition significantly increased Earthstone's production capacity and operational footprint.

Financial Performance

As of the end of 2022, Earthstone Energy reported a revenue of approximately $413 million, showing a substantial increase from previous years. The company’s net income for the same period amounted to about $109 million. The following table summarizes key financial metrics for Earthstone Energy over the past few years:

Operational Strategy

Earthstone Energy primarily focuses on the Permian Basin, which is one of the most prolific oil-producing regions in the United States. The company emphasizes low-cost production techniques and efficient operations to maximize profitability.

Market Position and Competitiveness

By 2023, Earthstone Energy's market capitalization reached approximately $1.1 billion. The company continued to strengthen its position through technological advancements and sustainable practices, ensuring resilience amid volatile market conditions.

Recent Developments

In November 2022, Earthstone Energy announced a merger agreement with Permian Resources, valued at approximately $1.5 billion. This deal was aimed at creating a larger, more competitive entity within the North American oil and gas sector.

Future Outlook

As of mid-2023, Earthstone Energy remains optimistic about future growth, focusing on increasing production rates and expanding its resource base. Analysts predict a continued upward trend in revenue, potentially exceeding $500 million by 2024 if current market conditions persist.

A Who Owns Earthstone Energy, Inc. (ESTE)

Company Overview

Earthstone Energy, Inc. (symbol: ESTE) is a publicly traded independent oil and natural gas company primarily engaged in the acquisition, exploration, development, and production of oil and natural gas properties, with a strong focus on the Permian Basin.

Shareholder Composition

As of the latest available data, the ownership structure of Earthstone Energy is distributed among various institutional investors, insiders, and retail investors. The following table outlines the major shareholders:

Recent Stock Performance

The stock performance of Earthstone Energy, Inc. has shown significant fluctuations in recent months, with a closing price of $15.20 on October 20, 2023, representing a price increase of approximately 25% compared to the previous quarter.

Market Capitalization

The market capitalization of Earthstone Energy, Inc. as of October 2023 stands at approximately $1.25 billion. This value contributes to its position in the market as a growing player in the energy sector.

Financial Metrics

Key financial metrics for Earthstone Energy are highlighted in the table below:

Major Developments

Earthstone Energy has engaged in various strategic moves to enhance its operational efficiency and production capabilities. In 2023, the company announced an acquisition of assets in the Midland Basin, which has increased its production capacity by approximately 10,000 BOE/d.

Investor Sentiment

Investor sentiment around Earthstone Energy is generally positive, driven by effective management strategies and a favorable energy market environment.

Earthstone Energy, Inc. (ESTE) Mission Statement

Overview

Earthstone Energy, Inc. is a growth-oriented independent oil and natural gas company based in the United States, focusing primarily on the acquisition, exploration, and development of oil and natural gas properties. The company is committed to executing its mission statement with a focus on sustainability, operational excellence, and shareholder value creation.

Mission Statement

The mission statement of Earthstone Energy, Inc. is to responsibly develop and operate its resources in a sustainable manner, ensuring long-term shareholder value while maintaining a commitment to safety, environmental stewardship, and community engagement.

Core Values

• Integrity: Conducting business ethically and transparently.
• Excellence: Striving for operational excellence in all aspects of the business.
• Innovation: Embracing new technologies and approaches to improve efficiency.
• Community Engagement: Building positive relationships with local communities and stakeholders.

Financial Performance

As of the latest financial reports, Earthstone Energy, Inc. has shown significant growth indicators. The following financial metrics highlight the company’s performance:

Operational Focus

Earthstone Energy focuses on several key operational strategies to achieve its mission:

• Resource Development: Emphasis on the development of existing assets in the Permian Basin.
• Sustainability Practices: Incorporating methods to reduce the environmental impact of operations.
• Technological Advancement: Utilizing advanced technologies for enhanced oil recovery.
• Strategic Acquisitions: Pursuing opportunities to acquire undervalued assets to bolster growth.

Future Outlook

Earthstone Energy aims to enhance its position as a significant player in the energy sector through strategic initiatives as outlined in its mission statement. The company’s projected production for 2023 is approximately:

Community Engagement Initiatives

Earthstone Energy is committed to social responsibility, engaging with local communities through various initiatives:

• Educational Programs: Supporting local education through scholarships and internships.
• Environmental Projects: Partnering with local organizations to promote sustainability.
• Workforce Development: Investing in local workforce training programs.

How Earthstone Energy, Inc. (ESTE) Works

Company Overview

Earthstone Energy, Inc. (ESTE) is an independent oil and natural gas company focused on the acquisition, development, and production of oil and natural gas properties in the United States. As of Q3 2023, ESTE has a market capitalization of approximately $1.5 billion.

Operational Focus

Earthstone primarily operates in the Permian Basin and Williston Basin. The company's strategy emphasizes low-cost, high-margin production through technological advancements in hydraulic fracturing and horizontal drilling.

Financial Performance

For the year ended December 31, 2022, the company reported:

• Total Revenue: $792 million
• Net Income: $183 million
• EBITDA: $408 million
• Operating Cash Flow: $310 million

Production Metrics

As of Q2 2023, Earthstone Energy reported:

• Average Daily Production: 37,000 BOE/d (Barrels of Oil Equivalent per day)
• Oil Production: 28,000 Bbls/d (Barrels per day)
• Natural Gas Production: 54 MMcf/d (Million cubic feet per day)

Drilling and Development Activities

Capital Expenditure

Earthstone's capital expenditure for 2023 is projected to be approximately $350 million, aimed at increasing production capacity and optimizing operational efficiency.

Market Trends and Challenges

The company faces various challenges in the oil and gas market, including:

• Commodity Price Volatility: Fluctuations in oil prices affect revenue.
• Regulatory Risks: Changes in environmental regulations can impact operations.
• Operational Costs: Increasing labor and material costs can reduce margins.

Conclusion

Earthstone Energy, Inc. continues to adapt to the evolving energy landscape, focusing on sustainable growth and operational excellence while navigating market dynamics and challenges.

How Earthstone Energy, Inc. (ESTE) Makes Money

Revenue Generation from Oil and Gas Production

Earthstone Energy, Inc. generates revenue primarily through the exploration, development, and production of oil and natural gas. In 2022, the company reported an average daily production of approximately 24,300 barrels of oil equivalent per day (BOE/d).

Production Breakdown

Operational Efficiency

In 2022, Earthstone reported a production cost of approximately $28.00 per BOE, which highlights the company’s ability to manage operational costs effectively.

Market Prices and Financial Impact

The financial performance of Earthstone heavily relies on market prices for oil and gas. As of Q2 2023, the average WTI crude oil price was approximately $75.00 per barrel.

Strategic Acquisitions

Earthstone has engaged in strategic acquisitions to enhance its production capacity. In 2023, it completed the acquisition of acreage in the Permian Basin for approximately $300 million, which is expected to increase its production capabilities significantly.

Investment in Infrastructure

Investment in infrastructure such as pipelines and processing facilities is crucial for reducing transportation costs and maximizing profitability. In 2023, Earthstone allocated around $50 million towards infrastructure development.

Financial Performance Metrics

Hedging Strategies

To mitigate price volatility, Earthstone employs hedging strategies. In 2023, it reported that approximately 60% of its production was hedged at an average price of $72.00 per barrel.

Future Outlook and Trends

The demand for energy, particularly in emerging markets, is expected to drive prices higher. Forecasts suggest an increase in oil demand by about 3% per year, which could positively impact Earthstone’s revenue.