Earthstone Energy (ESTE) 10-Q 6 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 30, 2018
Document And Entity Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Trading Symbol	ESTE
Entity Registrant Name	EARTHSTONE ENERGY INC
Entity Central Index Key	10,254
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Class A Common Stock
Document And Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		28,163,239
Class B Common Stock
Document And Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		35,815,153

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash	$ 4,196	$ 22,955
Accounts receivable:
Oil, natural gas, and natural gas liquids revenues	13,564	14,978
Joint interest billings and other, net of allowance of $116 and $138 at June 30, 2018 and December 31, 2017, respectively	5,011	7,778
Derivative asset	0	184
Prepaid expenses and other current assets	2,059	1,178
Total current assets	24,830	47,073
Oil and gas properties, successful efforts method:
Proved properties	681,960	605,039
Unproved properties	272,260	275,025
Land	5,382	5,534
Total oil and gas properties	959,602	885,598
Accumulated depreciation, depletion and amortization	(138,313)	(118,028)
Net oil and gas properties	821,289	767,570
Other noncurrent assets:
Goodwill	17,620	17,620
Office and other equipment, net of accumulated depreciation of $2,272 and $2,093 at June 30, 2018 and December 31, 2017, respectively	764	947
Other noncurrent assets	1,277	1,207
TOTAL ASSETS	865,780	834,417
Current liabilities:
Accounts payable	12,307	33,472
Revenues and royalties payable	18,725	10,288
Accrued expenses	18,499	8,707
Advances	18,746	4,587
Derivative liability	14,803	11,805
Total current liabilities	83,080	68,859
Noncurrent liabilities:
Long-term debt	22,500	25,000
Deferred tax liability	10,461	10,515
Asset retirement obligation	1,834	2,354
Derivative liability	5,502	1,826
Other noncurrent liabilities	109	131
Total noncurrent liabilities	40,406	39,826
Commitments and Contingencies
Equity:
Preferred stock, $0.001 par value, 20,000,000 shares authorized; none issued or outstanding	0	0
Additional paid-in capital	509,381	503,932
Accumulated deficit	(218,851)	(224,822)
Total Earthstone Energy, Inc. equity	290,594	279,174
Noncontrolling interest	451,700	446,558
Total equity	742,294	725,732
TOTAL LIABILITIES AND EQUITY	865,780	834,417
Class A Common Stock
Equity:
Common stock	28	28
Class B Common Stock
Equity:
Common stock	$ 36	$ 36

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Joint interest billings and other, allowance	$ 116	$ 138
Office and other equipment, accumulated depreciation	$ 2,272	$ 2,093
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	20,000,000	20,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Class A Common Stock
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	28,131,464	27,584,638
Common stock, shares outstanding (in shares)	28,131,464	27,584,638
Class B Common Stock
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	35,846,928	36,052,169
Common stock, shares outstanding (in shares)	35,846,928	36,052,169

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
REVENUES
Oil	$ 31,903,000	$ 21,563,000	$ 66,320,000	$ 34,082,000
Natural gas	1,783,000	2,131,000	4,467,000	3,825,000
Natural gas liquids	3,464,000	2,083,000	7,258,000	3,213,000
Total revenues	37,150,000	25,777,000	78,045,000	41,120,000
OPERATING COSTS AND EXPENSES
Lease operating expense	5,009,000	5,243,000	9,666,000	9,582,000
Severance taxes	1,824,000	1,327,000	3,861,000	2,117,000
Impairment expense	0	66,648,000	0	66,648,000
Depreciation, depletion and amortization	10,812,000	10,039,000	20,520,000	17,928,000
General and administrative expense	7,286,000	7,385,000	13,865,000	12,188,000
Transaction costs	0	3,764,000	0	4,567,000
Accretion of asset retirement obligation	43,000	154,000	84,000	306,000
Exploration expense	0	1,000	0	1,000
Total operating costs and expenses	24,974,000	94,561,000	47,996,000	113,337,000
Gain on sale of oil and gas properties	63,000	1,691,000	512,000	1,691,000
Income (loss) from operations	12,239,000	(67,093,000)	30,561,000	(70,526,000)
OTHER INCOME (EXPENSE)
Interest expense, net	(610,000)	(633,000)	(1,223,000)	(970,000)
Write-off of deferred financing costs	0	(526,000)	0	(526,000)
(Loss) gain on derivative contracts, net	(10,850,000)	3,340,000	(16,125,000)	7,800,000
Other income, net	391,000	31,000	397,000	32,000
Total other income (expense)	(11,069,000)	2,212,000	(16,951,000)	6,336,000
Income (loss) before income taxes	1,170,000	(64,881,000)	13,610,000	(64,190,000)
Income tax benefit	302,000	9,914,000	53,000	9,952,000
Net income (loss)	1,472,000	(54,967,000)	13,663,000	(54,238,000)
Net income attributable to noncontrolling interest	822,000	(37,844,000)	7,692,000	(37,844,000)
Net income (loss) attributable to Earthstone Energy, Inc.	$ 650,000	$ (17,123,000)	$ 5,971,000	$ (16,394,000)
Net income (loss) per common share attributable to Earthstone Energy, Inc.:
Basic (in dollars per share)	$ 0.02	$ (0.75)	$ 0.21	$ (0.73)
Diluted (in dollars per share)	$ 0.02	$ (0.75)	$ 0.21	$ (0.73)
Weighted average common shares outstanding:
Basic (in shares)	27,987,509	22,728,011	27,886,220	22,503,750
Diluted (in shares)	28,036,052	22,728,011	27,967,421	22,503,750

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net income (loss)	$ 1,472,000	$ (54,967,000)	$ 13,663,000	$ (54,238,000)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Impairment expense	0	66,648,000	0	66,648,000
Depreciation, depletion and amortization	10,812,000	10,039,000	20,520,000	17,928,000
Accretion of asset retirement obligations	43,000	154,000	84,000	306,000
Settlement of asset retirement obligations			(79,000)	0
Gain on sale of oil and gas properties	(63,000)	(1,691,000)	(512,000)	(1,691,000)
Total loss (gain) on derivative contracts, net	10,850,000	(3,340,000)	16,125,000	(7,800,000)
Operating portion of net cash paid in settlement of derivative contracts			(9,267,000)	(267,000)
Stock-based compensation			4,013,000	2,958,000
Deferred income taxes			(54,000)	(9,952,000)
Write-off of deferred financing costs	0	526,000	0	526,000
Amortization of deferred financing costs	100,000	100,000	143,000	137,000
Changes in assets and liabilities:
Decrease in accounts receivable			4,475,000	3,233,000
Increase in prepaid expenses and other current assets			(992,000)	(522,000)
Decrease in accounts payable and accrued expenses			(17,286,000)	(3,148,000)
Increase (decrease) in revenues and royalties payable			8,437,000	(1,905,000)
Increase (decrease) in advances			14,159,000	(535,000)
Net cash provided by operating activities			53,429,000	11,678,000
Cash flows from investing activities:
Bold Contribution Agreement, net of cash acquired			0	(55,609,000)
Additions to oil and gas properties			(68,516,000)	(10,048,000)
Additions to office and other equipment			(53,000)	(103,000)
Proceeds from sales of oil and gas properties			210,000	2,416,000
Net cash used in investing activities			(68,359,000)	(63,344,000)
Cash flows from financing activities:
Proceeds from borrowings			25,000,000	70,000,000
Repayments of borrowings			(27,500,000)	(10,792,000)
Cash paid related to the exchange and cancellation of Class A Common Stock			(1,116,000)	0
Deferred financing costs			(213,000)	(1,071,000)
Net cash (used in) provided by financing activities			(3,829,000)	58,137,000
Net (decrease) increase in cash			(18,759,000)	6,471,000
Cash at beginning of period			22,955,000	10,200,000
Cash at end of period	$ 4,196,000	$ 16,671,000	4,196,000	16,671,000
Cash paid for:
Interest			986,000	740,000
Non-cash investing and financing activities:
Accrued capital expenditures			25,791,000	27,054,000
Asset retirement obligations			$ (141,000)	$ 21,000

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Basis of Presentation and Summary of Significant Accounting Policies Earthstone Energy, Inc., a Delaware corporation ("Earthstone" and together with its consolidated subsidiaries, the "Company"), is a growth-oriented independent oil and natural gas development and production company. In addition, the Company is active in corporate mergers and the acquisition of oil and natural gas properties that have production and future development opportunities. The Company's operations are all in the upstream segment of the oil and natural gas industry and all its properties are onshore in the United States. Earthstone is the sole managing member of Earthstone Energy Holdings, LLC, a Delaware limited liability company (together with its wholly-owned consolidated subsidiaries, “EEH”), with a controlling interest in EEH. Earthstone, together with its wholly-owned subsidiary, Lynden Energy Corp., a corporation organized under the laws of British Columbia (“Lynden Corp”), and Lynden Corp’s wholly-owned consolidated subsidiary, Lynden USA Inc., a Utah corporation (“Lynden US”) and also a member of EEH, consolidates the financial results of EEH and records a noncontrolling interest in the Condensed Consolidated Financial Statements representing the economic interests of EEH's members other than Earthstone and Lynden US. The accompanying unaudited Condensed Consolidated Financial Statements and notes thereto have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) applicable to interim financial statements. Pursuant to such rules and regulations, certain disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted. The accompanying unaudited Condensed Consolidated Financial Statements and notes should be read in conjunction with the financial statements and notes included in Earthstone’s 2017 Annual Report on Form 10-K. The information furnished herein reflects all adjustments that are, in the opinion of management, necessary for the fair presentation of the Company's financial position, results of operations and cash flows for the periods presented. The Company’s Condensed Consolidated Balance Sheet at December 31, 2017 is derived from the audited Consolidated Financial Statements at that date. Prior-period Stock-based compensation in the Condensed Consolidated Statements of Operations has been reclassified from its own line item and included in General and administrative expense, within Operating Costs and Expenses, to conform to current-period presentation. This reclassification had no effect on Income (loss) from operations, Income (loss) before income taxes, or Net income (loss) for the three and six months ended June 30, 2018 and 2017. Bold Contribution Agreement On May 9, 2017, Earthstone completed a contribution agreement dated as of November 7, 2016 and as amended on March 21, 2017 (the “Bold Contribution Agreement”), by and among Earthstone, EEH, Lynden US, Lynden USA Operating, LLC, a Texas limited liability company (“Lynden Op”), Bold Energy Holdings, LLC, a Texas limited liability company (“Bold Holdings”), and Bold Energy III LLC, a Texas limited liability company (“Bold”). The purpose of the Bold Contribution Agreement was to provide for, among other things described below, the business combination between Earthstone and Bold, which owned significant developed and undeveloped oil and natural gas properties in the Midland Basin of Texas (the “Bold Transaction”). The Bold Transaction was structured in a manner commonly known as an “Up-C.” Under this structure and the Bold Contribution Agreement, (i) Earthstone recapitalized its common stock, $0.001 par value per share (the “Common Stock”), into two classes – Class A common stock, $0.001 par value per share (the “Class A Common Stock”), and Class B common stock, $0.001 par value per share (the “Class B Common Stock”), and all of the Common Stock, was recapitalized on a one -for-one basis for Class A Common Stock (the “Recapitalization”); (ii) Earthstone transferred all of its membership interests in Earthstone Operating, LLC, Sabine River Energy, LLC, EF Non-Op, LLC and Earthstone Legacy Properties, LLC (formerly Earthstone GP, LLC) and $36,071 in cash from the sale of Class B Common Stock to Bold Holdings (collectively, the “Earthstone Assets”) to EEH, in exchange for 16,791,296 membership units of EEH (the “EEH Units”); (iii) Lynden US transferred all of its membership interests in Lynden Op to EEH in exchange for 5,865,328 EEH Units; (iv) Bold Holdings transferred all of its membership interests in Bold to EEH in exchange for 36,070,828 EEH Units and purchased 36,070,828 shares of Class B Common Stock issued by Earthstone for $36,071 ; and (v) Earthstone granted an aggregate of 150,000 fully vested shares of Class A Common Stock under Earthstone’s 2014 Long-Term Incentive Plan, as amended and restated (the “2014 Plan”), to certain employees of Bold. Each EEH Unit, together with one share of Class B Common Stock, are convertible into one share of Class A Common Stock. Upon closing of the Bold Transaction on May 9, 2017, Bold Holdings owned approximately 61.4% of the outstanding shares of Class A Common Stock, on a fully diluted, as converted basis. The EEH Units and the shares of Class B Common Stock issued to Bold Holdings were not registered under the Securities Act of 1933, as amended (the “Securities Act”), but were issued by EEH and Earthstone in reliance on the exemption provided under Section 4(a)(2) of the Securities Act. On May 9, 2017, the closing sale price of the Class A Common Stock was $13.58 per share. On May 10, 2017, the Class A Common Stock was uplisted from the NYSE American, LLC (formerly the NYSE MKT) (the “NYSE American”) to the New York Stock Exchange (the “NYSE”) where it is listed under the symbol “ESTE.” On May 9, 2017, in connection with the closing of the Bold Transaction, Earthstone, EnCap Investments L.P. (“EnCap”), Oak Valley Resources, LLC (“Oak Valley”), and Bold Holdings entered into a voting agreement (the “Voting Agreement”), pursuant to which EnCap, Oak Valley, and Bold Holdings agreed not to vote any shares of Class A Common Stock or Class B Common Stock held by them in favor of any action, or take any action that would in any way alter the composition of the board of directors of Earthstone (the “Board”) from its composition immediately following the closing of the Bold Transaction as long as the Voting Agreement is in effect. Pursuant to the terms of the Bold Contribution Agreement, at the closing of the Bold Transaction, Earthstone, Bold Holdings, and the unitholders of Bold Holdings entered into a registration rights agreement (the “Registration Rights Agreement”) relating to the shares of Class A Common Stock issuable upon the exchange of the EEH Units and Class B Common Stock held by Bold Holdings or its unitholders. In accordance with the Registration Rights Agreement, Earthstone filed a registration statement (the “Registration Statement”) with the SEC to permit the public resale of the shares of Class A Common Stock issued by Earthstone to Bold Holdings or its unitholders in connection with the exchange of Class B Common Stock and EEH Units in accordance with the terms of the First Amended and Restated Limited Liability Company Agreement of EEH. On October 18, 2017, the Registration Statement was declared effective by the SEC. The Bold Transaction was recorded in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, Business Combinations, and is consolidated in these financial statements in accordance with FASB ASC Topic 810, Consolidation, which requires the recording of a noncontrolling interest component of net income (loss), as well as a noncontrolling interest component within equity, including changes to additional paid-in capital to reflect the noncontrolling interest within equity in the Condensed Consolidated Balance Sheet as of June 30, 2018 at the noncontrolling interest’s respective membership interest in EEH. Recently Issued Accounting Standards Revenue Recognition – On January 1, 2018, we adopted the FASB accounting standards update for “Revenue from Contracts with Customers,” which superseded the revenue recognition requirements in “Topic 605, Revenue Recognition,” using the modified retrospective method. Adoption of this standard did not have a significant impact on our consolidated statements of operations or cash flows. We implemented processes to ensure new contracts are reviewed for the appropriate accounting treatment and generate the disclosures required under the new standard. Revenues for the sale of oil, natural gas and natural gas liquids are recognized as the product is delivered to our customers’ custody transfer points and collectability is reasonably assured. We fulfill the performance obligations under our customer contracts through daily delivery of oil, natural gas and natural gas liquids to our customers’ custody transfer points and revenues are recorded on a monthly basis. The prices received for oil, natural gas and natural gas liquids sales under our contracts are generally derived from stated market prices which are then adjusted to reflect deductions including transportation, fractionation and processing. As a result, our revenues from the sale of oil, natural gas and natural gas liquids will decrease if market prices decline. The sales of oil, natural gas and natural gas liquids as presented on the Consolidated Statements of Operations represent the Company’s share of revenues net of royalties and excluding revenue interests owned by others. When selling oil, natural gas and natural gas liquids on behalf of royalty owners or working interest owners, the Company is acting as an agent and thus reports the revenue on a net basis. To the extent actual volumes and prices of oil and natural gas sales are unavailable for a given reporting period because of timing or information not received from third parties, the expected sales volumes and prices for those properties are estimated and recorded. Statement of Cash Flows – In August 2016, the FASB issued updated guidance that clarifies how certain cash receipts and cash payments are presented in the statement of cash flows. This update provides guidance on eight specific cash flow issues. The standards update is effective for interim and annual periods beginning after December 15, 2017 and should be applied retrospectively to all periods presented. Early adoption is permitted. The Company adopted the new standard, as required, beginning with the first quarter of 2018, with no material impact on its Consolidated Financial Statements. Business Combinations – In January 2017, the FASB issued updated guidance that clarifies the definition of a business, which amends the guidance used in evaluating whether a set of acquired assets and activities represents a business. The guidance requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities is not considered a business. As a result, acquisition fees and expenses will be capitalized to the cost basis of the property acquired, and the tangible and intangible components acquired will be recorded based on their relative fair values as of the acquisition date. The standard is effective for all public business entities for annual periods beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted for periods for which financial statements have not yet been issued. The Company adopted the new standard, as required, beginning with the first quarter of 2018, with no material impact on its Consolidated Financial Statements. Compensation – Stock Compensation – In May 2017, the FASB issued updated guidance that provides clarity about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The update is effective for annual periods beginning after December 15, 2017, and early adoption is permitted, including adoption in any interim period. The Company adopted the new standard, as required, beginning with the first quarter of 2018, with no material impact on its Consolidated Financial Statements. Leases – In February 2016, the FASB issued updated guidance on accounting for leases. The update requires that a lessee recognize in the statement of financial position a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. Similar to current guidance, the update continues to differentiate between finance leases and operating leases; however, this distinction now primarily relates to differences in the manner of expense recognition over time and in the classification of lease payments in the statement of cash flows. The standards update is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted. Entities are required to use a modified retrospective adoption, with certain relief provisions, for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements when adopted. The Company expects to adopt this update, as required, beginning with the first quarter of 2019. The Company is in the process of evaluating the impact of this guidance, if any, of the adoption of this guidance on its Consolidated Financial Statements. Intangibles - Goodwill and Other – In January 2017, the FASB issued updated guidance simplifying the test for goodwill impairment. The update eliminates Step 2 of the goodwill impairment test. Instead, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The update is effective for annual and interim periods beginning after December 15, 2019 and early adoption is permitted for interim or annual goodwill impairment tests performed after January 1, 2017. The Company is in the process of evaluating the impact of this guidance, if any, on its Consolidated Financial Statements. Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting In June 2018, the FASB issued updated guidance simplifying the guidance on nonemployee share-based payments. The update is effective for annual and interim periods beginning after December 15, 2018 and early adoption is permitted. The Company is in the process of evaluating the impact of this guidance, if any, on its Consolidated Financial Statements. Codification Improvements – In July 2018, the FASB issued an update which does not prescribe any new accounting guidance, but instead makes minor improvements and clarifications of several different FASB Accounting Standards Codification areas based on comments and suggestions made by various stakeholders. Certain updates are applicable immediately while others provide for a transition period to adopt as part of the next fiscal year beginning after December 15, 2018. The Company is in the process of evaluating the impact of this update, if any, on its Consolidated Financial Statements.

Acquisitions and Divestitures

Acquisitions and Divestitures	6 Months Ended
	Jun. 30, 2018
Business Combinations [Abstract]
Acquisitions and Divestitures	Acquisitions and Divestitures The Company accounts for its acquisitions that qualify as business combinations, under the acquisition method of accounting in accordance with FASB ASC Topic 805, Business Combinations , which, among other things, requires the assets acquired and liabilities assumed to be measured and recorded at their fair values as of the acquisition date. The initial accounting for acquisitions may not be complete and adjustments to provisional amounts, or recognition of additional assets acquired or liabilities assumed, may occur as additional information is obtained about the facts and circumstances that existed as of the acquisition dates. Bold Transaction On May 9, 2017, Earthstone completed the Bold Transaction described in Note 1. Basis of Presentation and Summary of Significant Accounting Policies . An allocation of the purchase price was prepared using, among other things, a reserve report prepared by qualified reserve engineers and priced as of the acquisition date. The following table summarizes the consideration transferred, fair value of assets acquired and liabilities assumed ( in thousands, except unit, share and share price amounts ): Consideration: Shares of Class A Common Stock issued pursuant to the Bold Contribution Agreement to certain employees of Bold 150,000 EEH Units issued to Bold Holdings 36,070,828 Total equity interest issued in the Bold Transaction 36,220,828 Closing per share price of Class A Common Stock as of May 9, 2017 $ 13.58 Total consideration transferred (1)(2) $ 491,879 Fair value of assets acquired: Cash and cash equivalents $ 2,355 Other current assets 10,078 Oil and gas properties (3) 557,704 Amount attributable to assets acquired $ 570,137 Fair value of liabilities assumed: Long-term debt (4) $ 58,000 Current liabilities 17,042 Deferred tax liability 2,857 Noncurrent asset retirement obligations 359 Amount attributable to liabilities assumed $ 78,258 (1) Consideration included 150,000 shares of Class A Common Stock recorded above based upon its fair value which was determined using its closing price of $13.58 per share on May 9, 2017. (2) Consideration was 36,070,828 EEH Units. Additionally, Bold Holdings purchased 36,070,828 shares of Class B Common Stock for $36,071 . Each EEH Unit, together with one share of Class B Common Stock, is convertible into one share of Class A Common Stock. The fair value of the consideration was determined using the closing price of the Company’s Class A Common Stock of $13.58 per share on May 9, 2017. (3) The market assumptions as to the future commodity prices, projections of estimated quantities of oil and natural gas reserves, expectations for timing and amount of the future development and operating costs, projecting of future rates of production, expected recovery rate and risk adjusted discount rates used by the Company to estimate the fair value of the oil and natural gas properties represent Level 3 inputs; see Note 3. Fair Value Measurements , below. (4) Concurrent with the closing of the Bold Transaction, EEH assumed Bold’s outstanding borrowings of $58 million under its credit agreement. The following unaudited supplemental pro forma condensed results of operations present consolidated information as though the Bold Transaction and the Bakken Sale (discussed below) had been completed as of January 1, 2017. The unaudited supplemental pro forma financial information was derived from the historical consolidated and combined statements of operations for Bold and Earthstone and adjusted to include: (i) depletion expense applied to the adjusted basis of the properties acquired and (ii) to eliminate non-recurring transaction costs directly related to the Bold Transaction that do not have a continuing impact on the Company’s operating results. These unaudited supplemental pro forma results of operations are provided for illustrative purposes only and do not purport to be indicative of the actual results that would have been achieved by the combined company for the periods presented or that may be achieved by the combined company in the future. Future results may vary significantly from the results reflected in this unaudited pro forma financial information ( in thousands, except per share amounts ): Three Months Ended Six Months Ended 2017 2017 Revenue $ 33,176 $ 62,755 Loss before taxes $ (55,939 ) $ (45,854 ) Net loss $ (46,025 ) $ (35,902 ) Less: Net loss available to noncontrolling interest $ (28,557 ) $ (22,056 ) Net loss attributable to Earthstone Energy, Inc. $ (17,468 ) $ (13,846 ) Pro forma net loss per common share attributable to Earthstone Energy, Inc.: Basic $ (0.77 ) $ (0.59 ) Diluted $ (0.77 ) $ (0.59 ) The Company has included in its Condensed Consolidated Statements of Operations, revenues of $24.3 million and $51.6 million , respectively and direct operating expenses of $12.3 million and $22.6 million , respectively for the three and six months ended June 30, 2018 related to the properties acquired in the Bold Transaction. On December 20, 2017, the Company sold all of its oil and natural gas leases, oil and natural gas wells and associated assets located in the Williston Basin in North Dakota (the "Bakken Sale") for a net cash consideration of approximately $27.3 million after normal and customary purchase price adjustments of $0.3 million to account for net cash flows from the effective date to the closing date. The effective date of the sale was December 1, 2017.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements FASB ASC Topic 820, defines fair value as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. ASC 820 provides a framework for measuring fair value, establishes a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date and requires consideration of the counterparty’s creditworthiness when valuing certain assets. The three-level fair value hierarchy for disclosure of fair value measurements defined by ASC 820 is as follows: Level 1 – Unadjusted, quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. An active market is defined as a market where transactions for the financial instrument occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 – Inputs, other than quoted prices within Level 1, that are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level 3 – Prices or valuations that require unobservable inputs that are both significant to the fair value measurement and unobservable. Valuation under Level 3 generally involves a significant degree of judgment from management. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instrument’s complexity. The Company reflects transfers between the three levels at the beginning of the reporting period in which the availability of observable inputs no longer justifies classification in the original level. There were no transfers between fair value hierarchy levels for the six months ended June 30, 2018 . Fair Value on a Recurring Basis Derivative financial instruments are carried at fair value and measured on a recurring basis. The derivative financial instruments consist of swaps for crude oil and natural gas. The Company’s swaps are valued based on a discounted future cash flow model. The primary input for the model is published forward commodity price curves. The swaps are also designated as Level 2 within the valuation hierarchy. The fair values of commodity derivative instruments in an asset position include a measure of counterparty nonperformance risk, and the fair values of commodity derivative instruments in a liability position include a measure of the Company’s nonperformance risk. These measurements were not material to the Condensed Consolidated Financial Statements. The following table summarizes the fair value of the Company’s financial assets and liabilities, by level within the fair-value hierarchy (in thousands) : June 30, 2018 Level 1 Level 2 Level 3 Total Financial assets Derivative asset - current $ — $ — $ — $ — Derivative asset - noncurrent — — — — Total financial assets $ — $ — $ — $ — Financial liabilities Derivative liability - current $ — $ 14,803 $ — $ 14,803 Derivative liability - noncurrent — 5,502 — 5,502 Total financial liabilities $ — $ 20,305 $ — $ 20,305 December 31, 2017 Financial assets Derivative asset - current $ — $ 184 $ — $ 184 Derivative asset - noncurrent — — — — Total financial assets $ — $ 184 $ — $ 184 Financial liabilities Derivative liability - current $ — $ 11,805 $ — $ 11,805 Derivative liability - noncurrent — 1,826 — 1,826 Total financial assets $ — $ 13,631 $ — $ 13,631 Other financial instruments include cash, accounts receivable and payable, and revenue royalties. The carrying amount of these instruments approximates fair value because of their short-term nature. The Company’s long-term debt obligation bears interest at floating market rates, therefore carrying amounts and fair value are approximately equal. Fair Value on a Nonrecurring Basis The Company applies the provisions of the fair value measurement standard on a non-recurring basis to its non-financial assets and liabilities, including oil and gas properties and goodwill. These assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances. Proved Oil and Natural Gas Properties Proved oil and natural gas properties are measured at fair value on a nonrecurring basis in order to review for impairment. The impairment charge reduces the carrying values to their estimated fair values. These fair value measurements are classified as Level 3 measurements and include many unobservable inputs. Fair value is calculated as the estimated discounted future net cash flows attributable to the assets. The Company’s primary assumptions in preparing the estimated discounted future net cash flows to be recovered from oil and gas properties are based on (i) proved reserves, (ii) forward commodity prices and assumptions as to costs and expenses, and (iii) the estimated discount rate that would be used by potential purchasers to determine the fair value of the assets. Goodwill Goodwill represents the excess of the purchase price of assets acquired over the fair value of those assets and is tested for impairment annually, or more frequently if events or changes in circumstances dictate that the fair value of goodwill may be less than its carrying amount. Such test includes an assessment of qualitative and quantitative factors. Business Combinations The Company records the identifiable assets acquired and liabilities assumed at fair value at the date of acquisition on a nonrecurring basis. Fair value may be estimated using comparable market data, a discounted cash flow method, or a combination of the two. In the discounted cash flow method, estimated future cash flows are based on management’s expectations for the future and include estimates of future oil and gas production, commodity prices based on NYMEX commodity futures price strips as of the date of the estimate, operating and development costs, and a risk-adjusted discount rate. The future oil and natural gas pricing used in the valuation is a Level 2 assumption. Significant Level 3 assumptions associated with the calculation of discounted cash flows used in the determination of fair value of the acquisition include the Company’s estimate operating and development costs, anticipated production of proved reserves, appropriate risk-adjusted discount rates and other relevant data. The Company’s acquisitions are described in Note 2. Acquisitions and Divestitures . Asset Retirement Obligations The estimated fair value of the Company's asset retirement obligation at inception is determined by utilizing the income approach by applying a credit-adjusted risk-free rate, which takes into account the Company's credit risk, and the time value of money to the undiscounted expected abandonment cash flows, including estimates of plugging, abandonment and remediation costs and well life. Given the unobservable nature of the inputs, the measurement of the asset retirement obligations was classified as Level 3 in the fair value hierarchy. See Note 11. Asset Retirement Obligations for a reconciliation of the beginning and ending balances of the liability for the Company’s asset retirement obligations. Performance Units Stock-based compensation related to performance is estimated utilizing the Monte Carlo Simulation pricing model, which calculates multiple potential outcomes for an award and establishes fair value based on the most likely outcome, and has been classified as Level 3 in the fair value hierarchy. Stock-based compensation related to performance units is described in Note 9. Stock-Based Compensation .

Derivative Financial Instrument

Derivative Financial Instruments	6 Months Ended
	Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	Derivative Financial Instruments The Company’s hedging activities consist of derivative instruments entered into in order to hedge against changes in oil and natural gas prices through the use of fixed price swap agreements. Swaps exchange floating price risk in the future for a fixed price at the time of the hedge. Consistent with its hedging policy, the Company has entered into a series of derivative instruments to hedge a significant portion of its expected oil and natural gas production through December 31, 2020. Typically, these derivative instruments require payments to (receipts from) counterparties based on specific indices as required by the derivative agreements. Although not risk free, the Company believes these instruments reduce its exposure to oil and natural gas price fluctuations and, thereby, allow the Company to achieve a more predictable cash flow. The Company’s derivative instruments are cash flow hedge transactions in which it is hedging the variability of cash flow related to a forecasted transaction. The Company does not enter into derivative instruments for trading or other speculative purposes. These transactions are recorded in the Condensed Consolidated Financial Statements in accordance with FASB ASC Topic 815. The Company has accounted for these transactions using the mark-to-market accounting method. Generally, the Company incurs accounting losses on derivatives during periods where prices are rising and gains during periods where prices are falling which may cause significant fluctuations in the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations. The Company nets its derivative instrument fair value amounts executed with each counterparty pursuant to an International Swap Dealers Association Master Agreement (“ISDA”), which provides for net settlement over the term of the contract. The ISDA is a standard contract that governs all derivative contracts entered into between the Company and the respective counterparty. The ISDA allows for offsetting of amounts payable or receivable between the Company and the counterparty, at the election of both parties, for transactions that occur on the same date and in the same currency. The Company had the following open crude oil and natural gas derivative contracts as of June 30, 2018 : Price Swaps Period Commodity Volume (Bbls / MMBtu) Weighted Average Price ($/Bbl / $/MMBtu) Q3 - Q4 2018 Crude Oil 873,400 $ 54.31 Q1 - Q4 2019 Crude Oil 1,259,100 $ 57.15 Q3 - Q4 2018 Crude Oil (Basis Swap) (1) 303,600 $ (0.15 ) Q1 - Q4 2019 Crude Oil (Basis Swap) (1) 365,000 $ (5.95 ) Q1 - Q4 2020 Crude Oil (Basis Swap) (1) 366,000 $ (5.95 ) Q3 - Q4 2018 Crude Oil (Basis Swap) (2) 184,000 $ 6.35 Q1 - Q4 2019 Crude Oil (Basis Swap) (2) 365,000 $ 4.50 Q3 - Q4 2018 Natural Gas 1,220,000 $ 2.95 (1) The basis differential price is between WTI Midland Argus Crude and the WTI NYMEX. (2) The basis differential price is between LLS Argus Crude and the WTI NYMEX. Additionally, on July 9, 2018, the Company entered into additional crude oil basis swap agreements, limiting the basis differential between WTI Midland Argus Crude and the WTI NYMEX to a weighted average price differential of -$7.75 /Bbl for 547,500 Bbls of its 2019 crude oil production. The following table summarizes the location and fair value amounts of all derivative instruments in the Condensed Consolidated Balance Sheets as well as the gross recognized derivative assets, liabilities, and amounts offset in the Condensed Consolidated Balance Sheets (in thousands) : June 30, 2018 December 31, 2017 Derivatives not designated as hedging contracts under ASC Topic 815 Balance Sheet Location Gross Recognized Assets / Liabilities Gross Amounts Offset Net Recognized Assets / Liabilities Gross Recognized Assets / Liabilities Gross Amounts Offset Net Recognized Assets / Liabilities Commodity contracts Derivative asset - current $ — $ — $ — $ 184 $ — $ 184 Commodity contracts Derivative liability - current $ 20,044 $ (5,241 ) $ 14,803 $ 11,805 $ — $ 11,805 Commodity contracts Derivative liability - noncurrent $ 6,052 $ (550 ) $ 5,502 $ 1,826 $ — $ 1,826 The following table summarizes the location and amounts of the Company’s realized and unrealized gains and losses on derivatives instruments in the Condensed Consolidated Statements of Operations (in thousands) : Three Months Ended Six Months Ended Derivatives not designated as hedging contracts under ASC Topic 815 Statement of Operations Location 2018 2017 2018 2017 Total (loss) gain on commodity contracts (Loss) gain on derivative contracts, net $ (5,858 ) $ 3,021 $ (6,858 ) $ 8,067 Cash (paid) received in settlements on commodity contracts (Loss) gain on derivative contracts, net (4,992 ) 319 (9,267 ) (267 ) (Loss) gain on commodity contracts, net $ (10,850 ) $ 3,340 $ (16,125 ) $ 7,800

Oil and Natural Gas Properties

Oil and Natural Gas Properties	6 Months Ended
	Jun. 30, 2018
Oil and Gas Exploration and Production Industries Disclosures [Abstract]
Oil and Natural Gas Properties	Oil and Natural Gas Properties The Company follows the successful efforts method of accounting for its oil and natural gas properties. Under this method, costs to acquire oil and natural gas properties, drill and equip exploratory wells that find proved reserves, and drill and equip development wells are capitalized. Exploration costs, including unsuccessful exploratory wells and geological and geophysical costs, are charged to operations as incurred. Upon sale or retirement of oil and natural gas properties, the costs and related accumulated depreciation, depletion and amortization are eliminated from the accounts and the resulting gain or loss is recognized. Costs incurred to maintain wells and related equipment, lease and well operating costs, and other exploration costs are charged to expense as incurred. Gains and losses arising from the sale of properties are included in Income (loss) from operations in the Condensed Consolidated Statements of Operations. The Company’s lease acquisition costs and development costs of proved oil and natural gas properties are amortized using the units-of-production method, at the field level, based on total proved reserves and proved developed reserves, respectively. For the three months ended June 30, 2018 and 2017 , depletion expense for oil and gas producing property and related equipment was $10.7 million and $9.9 million , respectively. For the six months ended June 30, 2018 and 2017 , depletion expense for oil and gas producing property and related equipment was $20.3 million and $17.7 million , respectively. Proved Properties Proved oil and natural gas properties are measured at fair value on a nonrecurring basis in order to review for impairment. The impairment charge reduces the carrying values to their estimated fair values. These fair value measurements are classified as Level 3 measurements and include many unobservable inputs. Fair value is calculated as the estimated discounted future net cash flows attributable to the assets. The Company’s primary assumptions in preparing the estimated discounted future net cash flows to be recovered from oil and gas properties are based on (i) proved reserves, (ii) forward commodity prices and assumptions as to costs and expenses, and (iii) the estimated discount rate that would be used by potential purchasers to determine the fair value of the assets. Unproved Properties Unproved properties consist of costs incurred to acquire undeveloped leases as well as the cost to acquire unproved reserves. Undeveloped lease costs and unproved reserve acquisition costs are capitalized. Unproved oil and gas leases are generally for a primary term of three to five years . In most cases, the term of the unproved leases can be extended by paying delay rentals, meeting contractual drilling obligations, or by the presence of producing wells on the leases. Unproved costs related to successful exploratory drilling are reclassified to proved properties and depleted on a units-of-production basis. The Company reviews its unproved properties periodically for impairment. In determining whether an unproved property is impaired, the Company considers numerous factors including, but not limited to, current exploration and development plans, favorable or unfavorable exploration activity on the property being evaluated and/or adjacent properties, the Company’s geologists' evaluation of the property, and the remaining months in the lease term for the property. Impairments to Oil and Natural Gas Properties The Company did not record any impairments to its oil and natural gas properties for the three and six months ended June 30, 2018 . During the three and six months ended June 30, 2017 , the Company recorded impairments consisting of $63.0 million to its proved oil and natural gas properties and $3.6 million to its unproved oil and natural gas properties, primarily to its properties located in the Eagle Ford Trend of south Texas.

Noncontrolling Interest

Noncontrolling Interest	6 Months Ended
	Jun. 30, 2018
Noncontrolling Interest [Abstract]
Noncontrolling Interest	Noncontrolling Interest Earthstone consolidates the financial results of EEH and its subsidiaries and records a noncontrolling interest for the economic interest in Earthstone held by the members of EEH other than Earthstone and Lynden US. Net income attributable to noncontrolling interest in the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2018 represents the portion of net income or loss attributable to the economic interest in the Company held by the members of EEH other than Earthstone and Lynden US. Noncontrolling interest in the Condensed Consolidated Balance Sheet as of June 30, 2018 and December 31, 2017 represents the portion of net assets of the Company attributable to the members of EEH other than Earthstone and Lynden US. The following table presents the changes in noncontrolling interest for the six months ended June 30, 2018 : EEH Units Held By Earthstone and Lynden US % EEH Units Held By Others % Total EEH Units Outstanding As of December 31, 2017 27,584,638 43.3 % 36,052,169 56.7 % 63,636,807 EEH Units and Class B Common Stock converted to Class A Common Stock 205,241 (205,241 ) — EEH Units issued in connection with the vesting of restricted stock units 341,585 — 341,585 As of June 30, 2018 28,131,464 44.0 % 35,846,928 56.0 % 63,978,392 The following table summarizes the activity for the equity attributable to the noncontrolling interest for the six months ended June 30, 2018 ( in thousands ): 2018 As of December 31, 2017 $ 446,558 EEH Units and Class B Common Stock converted to Class A Common Stock (2,550 ) Net income attributable to noncontrolling interest 7,692 As of June 30, 2018 $ 451,700

Net Income (Loss) Per Common Sh

Net Income (Loss) Per Common Share	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Net Income (Loss) Per Common Share	Net Income (Loss) Per Common Share Net income (loss) per common share—basic is calculated by dividing Net income (loss) by the weighted average number of shares of common stock outstanding during the period (Common Stock for the period from January 1, 2017 through May 8, 2017 and Class A Common Stock thereafter). Net income (loss) per common share—diluted assumes the conversion of all potentially dilutive securities and is calculated by dividing Net income (loss) by the sum of the weighted average number of shares of common stock, as defined above, outstanding plus potentially dilutive securities. Net income (loss) per common share—diluted considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares, as defined above, would have an anti-dilutive effect. A reconciliation of Net income (loss) per common share is as follows: Three Months Ended Six Months Ended (In thousands, except per share amounts) 2018 2017 2018 2017 Net income (loss) attributable to Earthstone Energy, Inc. $ 650 $ (17,123 ) $ 5,971 $ (16,394 ) Net income (loss) per common share attributable to Earthstone Energy, Inc.: Basic $ 0.02 $ (0.75 ) $ 0.21 $ (0.73 ) Diluted $ 0.02 $ (0.75 ) $ 0.21 $ (0.73 ) Weighted average common shares outstanding Basic 27,987,509 22,728,011 27,886,220 22,503,750 Add potentially dilutive securities: Unvested restricted stock units 48,543 — 81,201 — Diluted weighted average common shares outstanding 28,036,052 22,728,011 27,967,421 22,503,750 Class B Common Stock has been excluded, as its conversion would eliminate noncontrolling interest and Net income (loss) attributable to noncontrolling interest of $0.8 million and $7.7 million for the three and six months ended June 30, 2018, respectively, would be added back to Net income (loss) attributable to Earthstone Energy, Inc., having no dilutive effect on Net income (loss) per common share attributable to Earthstone Energy, Inc.

Common Stock

Common Stock	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
Common Stock	Common Stock On May 9, 2017, and in connection with the completion of the Bold Transaction, Earthstone recapitalized its Common Stock into two classes, as described in Note 1. – Basis of Presentation and Summary of Significant Accounting Policies , Class A Common Stock and Class B Common Stock. At that time, all of Earthstone’s existing outstanding Common Stock was automatically converted on a one -for-one basis into Class A Common Stock. Class A Common Stock At June 30, 2018 and December 31, 2017 , there were 28,131,464 and 27,584,638 shares of Class A Common Stock issued and outstanding, respectively. During the three and six months ended June 30, 2018, Earthstone issued 255,313 and 341,585 shares, respectively, of Class A Common Stock as a result of the vesting and settlement of restricted stock units under the 2014 Plan. During the period January 1, 2017 through May 8, 2017, Earthstone issued 382,804 shares of Common Stock as a result of the vesting and settlement of restricted stock units under the 2014 Plan. During the period May 9, 2017 through June 30, 2017, Earthstone issued 84,825 shares of Class A Common Stock as a result of the vesting and settlement of restricted stock units under the 2014 Plan. Additionally, on May 9, 2017, under the Bold Contribution Agreement, Earthstone issued 150,000 shares of Class A Common Stock valued at approximately $2.0 million on that date. For additional information, see Note 2. Acquisitions and Divestitures. Class B Common Stock At June 30, 2018 and December 31, 2017 , there were 35,846,928 and 36,052,169 shares of Class B Common Stock issued and outstanding, respectively. Each share of Class B Common Stock, together with one EEH Unit, is convertible into one share of Class A Common Stock. During the three and six months ended June 30, 2018, 11,195 shares and 205,241 shares, respectively, of Class B Common Stock and EEH Units were exchanged for an equal number of shares of Class A Common Stock. In July 2018, an additional 135,621 shares of Class B Common Stock and EEH Units were exchanged for an equal number of shares of Class A Common Stock.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation Restricted Stock Units The 2014 Plan, allows, among other things, for the grant of restricted stock units ("RSUs"). On June 6, 2018, at the annual meeting of stockholders, Earthstone's stockholders approved an amendment and restatement of the 2014 Plan, including increasing the shares of Class A Common Stock that may be issued under the Plan by 600,000 shares, to a total of 6.4 million shares. On May 9, 2017, and in connection with the completion of the Bold Contribution Agreement, and upon approval by the stockholders of Earthstone, the 2014 Plan was amended to increase the number of shares of Class A Common Stock authorized to be issued under the 2014 Plan by 4.3 million shares, to a total of 5.8 million shares. Each RSU represents the contingent right to receive one share of Class A Common Stock. The holders of outstanding RSUs do not receive dividends or have voting rights prior to vesting and settlement. Prior to May 9, 2017, the Company determined the fair value of granted RSUs based on the market price of the Common Stock on the date of the grant. Beginning on May 9, 2017, the Company began determining the fair value of granted RSUs based on the market price of the Class A Common Stock on the date of the grant. Compensation expense for granted RSUs is recognized on a straight-line basis over the vesting and is net of forfeitures, as incurred. Stock-based compensation is included in General and administrative expense in the Condensed Consolidated Statements of Operations and is recorded with a corresponding increase in Additional paid-in capital within the Condensed Consolidated Balance Sheet. The table below summarizes unvested RSU award activity for the six months ended June 30, 2018 : Shares Weighted-Average Grant Date Fair Value Unvested RSUs at December 31, 2017 969,245 $ 9.89 Granted 344,000 $ 9.35 Forfeited (44,165 ) $ 10.87 Vested (454,011 ) $ 9.93 Unvested RSUs at June 30, 2018 815,069 $ 9.59 For the three and six months ended June 30, 2018 , Stock-based compensation related to RSUs was $1.8 million and $3.6 million , respectively. The unrecognized compensation expense related to the RSU awards at June 30, 2018 was $7.5 million which will be amortized over the remaining vesting period. The weighted average remaining vesting period of the unrecognized compensation expense is 1.02 years. The table below summarizes unvested RSU award activity for the six months ended June 30, 2017 : Shares Weighted-Average Grant Date Fair Value Unvested RSUs at December 31, 2016 781,500 $ 12.53 Granted 214,500 $ 12.22 Forfeited (36,000 ) $ 13.30 Vested (467,629 ) $ 12.44 Unvested RSUs at June 30, 2017 492,371 $ 12.42 For the three and six months ended June 30, 2017 , Stock-based compensation related to RSUs was $1.6 million and $3.0 million , respectively. Performance Units On February 28, 2018, the Board granted 252,500 performance units (“PSUs”) to certain named executive officers pursuant to the 2014 Plan. The PSUs are payable in shares of Class A Common Stock based upon the achievement by the Company over a period commencing on February 28, 2018 and ending on February 28, 2021 (the “Performance Period”) of performance criteria established by the Board. The number of shares of Class A Common Stock that may be issued will be determined by multiplying the number of PSUs granted by the Relative Total Shareholder Return ("TSR") Percentage ( 0% to 200% ). The “Relative TSR Percentage” is the percentage, if any, achieved by attainment of a certain predetermined range of targets for the Performance Period. Accordingly, the potential aggregate number of shares of Class A Common Stock issuable under the outstanding PSU awards range from zero to 505,000 . TSR for the Company and each of the peer companies is generally determined by dividing (A) the volume weighted average price of a share of stock for the trading days during the thirty calendar days ending on and including the last calendar day of the Performance Period minus the volume weighted average price of a share of stock for the trading days during the thirty calendar days ending on and including the first day of the Performance Period plus cash dividends paid over the Performance Period by (B) the volume weighted average price of a share of stock for the trading days during the thirty calendar days ending on and including the first day of the Performance Period. As of June 30, 2018, there were 252,500 PSUs outstanding. There were no PSUs outstanding as of December 31, 2017. The unrecognized compensation expense related to the PSU awards at June 30, 2018 was $3.1 million which will be amortized over the remaining vesting period. The weighted average remaining vesting period of the unrecognized compensation expense is 1.36 years. The Company is accounting for this award as a market-based award which was valued utilizing the Monte Carlo Simulation pricing model, which calculates multiple potential outcomes for an award and establishes fair value based on the most likely outcome. Under the Monte Carlo Simulation pricing model, the Company calculated the weighted average fair value per PSU to be $13.75 . For the three and six months ended June 30, 2018 , Stock-based compensation related to the PSUs was approximately $0.3 million and $0.4 million , respectively. There was no Stock-based compensation related to the PSUs for the three and six months ended June 30, 2017 .

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt Credit Agreement On May 23, 2018, Earthstone Energy Holdings, LLC (“EEH” or the “Borrower”), a subsidiary of Earthstone, each of Earthstone Operating, LLC, EF Non-Op, LLC, Sabine River Energy, LLC, Earthstone Legacy Properties, LLC, Lynden USA Operating, LLC, Bold Energy III LLC, Bold Operating, LLC, as guarantors (the “Guarantors”), BOKF, NA dba Bank Of Texas, as Administrative Agent, and the lenders party thereto (the “Lenders”), entered into an amendment (the “Amendment”) to the Credit Agreement dated May 9, 2017, by and among EEH, as Borrower, the Guarantors, BOKF, NA dba Bank Of Texas, as Agent and Lead Arranger, Wells Fargo Bank, National Association, as Syndication Agent, and the Lenders (together with all amendments or other modifications, the “EEH Credit Agreement”). Among other things, the Amendment increased the borrowing base from $185.0 million to $225.0 million , provided for a 50-basis point decrease in the interest rate on outstanding loans, increased flexibility related to hedging limitations and provided the ability to obtain short-term borrowings via a swingline as a part of the borrowing base. On May 9, 2017, in connection with the closing of the Bold Transaction, the Company exited its credit agreement dated December 19, 2014, by and among Earthstone and its subsidiaries, BOKF, NA dba Bank of Texas, and the Lenders party thereto (as amended, modified or restated from time to time, the “ESTE Credit Agreement”). At that time, all outstanding borrowings of $10.0 million under the ESTE Credit Agreement were repaid and $0.5 million of remaining unamortized deferred financing costs were expensed. The borrowing base under the EEH Credit Agreement is subject to redetermination on or about November 1st and May 1st of each year. The amounts borrowed under the EEH Credit Agreement bear annual interest rates at either (a) the London Interbank Offered Rate (“LIBOR”) plus 1.75% to 2.75% or (b) the prime lending rate of Bank of Texas plus 0.75% to 1.75% , depending on the amounts borrowed under the EEH Credit Agreement. Principal amounts outstanding under the EEH Credit Agreement are due and payable in full at maturity on May 9, 2022 . All of the obligations under the EEH Credit Agreement, and the guarantees of those obligations, are secured by substantially all of EEH’s assets. Additional payments due under the EEH Credit Agreement include paying a commitment fee of 0.375% or 0.50% , depending on borrowing base utilization, per year to the Lenders in respect of the unutilized commitments thereunder, as well as certain other customary fees. The EEH Credit Agreement contains a number of covenants that, among other things, restrict, subject to certain exceptions, EEH’s ability to incur additional indebtedness, create liens on assets, make investments, enter into sale and leaseback transactions, pay dividends and make distributions or repurchase its limited liability interests, engage in mergers or consolidations, sell certain assets, sell or discount any notes receivable or accounts receivable and engage in certain transactions with affiliates. In addition, the EEH Credit Agreement requires EEH to maintain the following financial covenants: a current ratio, as defined, of not less than 1.0 to 1.0 and a leverage ratio of not greater than 4.0 to 1.0. Leverage ratio means the ratio of (i) the aggregate debt of EEH and its consolidated subsidiaries as at the last day of the fiscal quarter (excluding any debt from obligations relating to non-cash losses under FASB ASC 815 as a result of changes in the fair market value of derivatives) to (ii) the product of EBITDAX for such fiscal quarter multiplied by four . The term “EBITDAX” means, for any period, the sum of consolidated net income for such period plus (a) the following expenses or charges to the extent deducted from consolidated net income in such period: (i) interest, (ii) taxes, (iii) depreciation, (iv) depletion, (v) amortization, (vi) non-cash losses under FASB ASC 815 as a result of changes in the fair market value of derivatives, (vii) exploration expenses, (viii) impairment expenses, and (ix) non-cash compensation expenses and minus (b) to the extent included in consolidated net income in such period, non-cash gains under FASB ASC 815 as a result of changes in the fair market value of derivatives. The EEH Credit Agreement contains customary affirmative covenants and defines events of default to include failure to pay principal or interest, breach of covenants, breach of representations and warranties, insolvency, judgment default, and if Frank A. Lodzinski ceases to serve and function as Chief Executive Officer of EEH and the majority of the Lenders do not approve of Mr. Lodzinski’s successor. Upon the occurrence and continuance of an event of default, the Lenders have the right to accelerate repayment of the loans and exercise their remedies with respect to the collateral. As of June 30, 2018 , EEH was in compliance with the covenants under the EEH Credit Agreement. As of June 30, 2018 , the Company had a $225.0 million borrowing base under the EEH Credit Agreement, of which $22.5 million was outstanding, bearing annual interest of 3.838% , resulting in an additional $202.5 million of borrowing base availability under the EEH Credit Agreement. At December 31, 2017 , there were $25.0 million of borrowings outstanding under the EEH Credit Agreement. For the six months ended June 30, 2018 , the Company had borrowings of $25.0 million and $27.5 million in repayments of borrowings. For the three and six months ended June 30, 2018 , interest on borrowings averaged 3.66% and 3.64% per annum, respectively, which excluded commitment fees of $0.3 million and $0.5 million , respectively, and amortization of deferred financing costs of $0.1 million and $0.1 million , respectively. For the three and six months ended June 30, 2017 , interest on borrowings averaged 4.32% and 4.45% per annum, respectively, of which both excluded commitment fees of $0.1 million and amortization of deferred financing costs of $0.1 million . The Company capitalized $0.2 million of costs associated with the EEH Credit Agreement for both the three and six months ended June 30, 2018. The Company capitalized $1.1 million of costs associated with the ESTE Credit Agreement for both the three and six months ended June 30, 2017. These capitalized costs are included in Other noncurrent assets in the Condensed Consolidated Balance Sheets. The Company’s policy is to capitalize the financing costs associated with its debt and amortize those costs on a straight-line basis over the term of the associated debt.

Asset Retirement Obligations

Asset Retirement Obligations	6 Months Ended
	Jun. 30, 2018
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligations	Asset Retirement Obligations The Company has asset retirement obligations associated with the future plugging and abandonment of oil and gas properties and related facilities. Revisions to the liability typically occur due to changes in the estimated abandonment costs, well economic lives, and the discount rate. The following table summarizes the Company’s asset retirement obligation transactions recorded during the six months ended June 30, (in thousands) : 2018 2017 Beginning asset retirement obligations $ 2,354 $ 6,013 Liabilities incurred 42 2 Liabilities settled (79 ) — Acquisitions — 359 Accretion expense 84 306 Divestitures (385 ) (7 ) Revision of estimates (182 ) 19 Ending asset retirement obligations $ 1,834 $ 6,692

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2018
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions FASB ASC Topic 850 , Related Party Disclosures , requires that information about transactions with related parties that would make a difference in decision making shall be disclosed so that users of the financial statements can evaluate their significance. Flatonia Energy, LLC (“Flatonia”), which owns approximately 10.5% of the outstanding Class A Common Stock and 4.7% of our Class A Common Stock and Class B Common Stock combined together as a single class as of June 30, 2018 , is a party to a joint operating agreement (the “Operating Agreement”) with the Company. The Operating Agreement covers certain jointly owned oil and natural gas properties located in the Eagle Ford Trend in Texas. In connection with the Operating Agreement, the Company made payments to Flatonia of $6.1 million and $12.4 million and received payments from Flatonia of $2.0 million and $4.1 million for the three and six months ended June 30, 2018 , respectively. For the three and six months ended June 30, 2017 , the Company made payments to Flatonia of $7.2 million and $14.4 million and received payments from Flatonia of $0.8 million and $2.4 million , respectively. At June 30, 2018 and December 31, 2017 , amounts receivable from Flatonia in connection with the Operating Agreement were $0.3 million and $1.3 million , respectively. There were no payables outstanding and due to Flatonia as of June 30, 2018 or December 31, 2017 . Our majority shareholder consists of various investment funds managed by a venture capital firm who may manage other investments in entities with which we interact in the normal course of business.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal From time to time, the Company and its subsidiaries may be involved in various legal proceedings and claims in the ordinary course of business. Olenik v. Lodzinksi et al. : On June 2, 2017, Nicholas Olenik filed a purported shareholder class and derivative action in the Delaware Court of Chancery against Earthstone’s Chief Executive Officer, along with other members of the Board, EnCap, Bold, Bold Holdings and OVR. The complaint alleges that Earthstone’s directors breached their fiduciary duties in connection with the Bold Contribution Agreement. The Plaintiff asserts that the directors negotiated the Bold Transaction to benefit EnCap and its affiliates, failed to obtain adequate consideration for the Earthstone shareholders who were not affiliated with EnCap or Earthstone management, did not follow an adequate process in negotiating and approving the Bold Transaction and made materially misleading or incomplete proxy disclosures in connection with the Bold Transaction. The suit seeks unspecified damages and purports to assert claims derivatively on behalf of Earthstone and as a class action on behalf of all persons who held Common Stock up to March 13, 2017, excluding defendants and their affiliates. On July 20, 2018, the Delaware Court of Chancery granted the defendants' motion to dismiss and entered an order dismissing the action in its entirety with prejudice. Plaintiff may appeal to the Delaware Supreme Court. Earthstone and each of the other defendants believe the claims are entirely without merit and they intend to mount a vigorous defense. The outcome of this suit is uncertain, and while Earthstone is confident in its position, any potential monetary recovery or loss to Earthstone cannot be estimated at this time. On August 18, 2017, litigation captioned Trinity Royal Partners, LP v. Bold Energy III LLC, et al. was filed with the 142nd Judicial District of the District Court in Midland County, Texas, asserting breach of contract and indemnity claims for alleged damages from loss of property relating to two oil and natural gas wells in which Bold was the operator. Trinity Royalty Partners, LP (“Trinity”) alleges that Bold is required to indemnify Trinity under the terms of an Assignment and a Participation and Joint Development Agreement between Bold and Trinity. Damages are alleged to include costs incurred in attempting to repair and restore an oil and natural gas well and for the loss of future reserves attributable to both wells. Trinity is seeking approximately $7.2 million in damages and attorneys’ fees. Earthstone and Bold believe the suit is without any merit and Bold intends to mount a vigorous defense. The outcome of this suit is uncertain, and while the Company is confident in its position, any potential monetary recovery or loss to the Company cannot be estimated at this time. Environmental and Regulatory As of June 30, 2018 , there were no known environmental or other regulatory matters related to the Company’s operations that are reasonably expected to result in a material liability to the Company.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act ("TCJA") that significantly changes the federal income taxation of business entities. The TCJA, among other things, reduces the corporate income tax rate to 21%, partially limits the deductibility of business interest expense and net operating losses, imposes a one-time tax on unrepatriated earnings from certain foreign subsidiaries, taxes offshore earnings at reduced rates regardless of whether they are repatriated and allows the immediate deduction of certain capital expenditures instead of deductions for depreciation expense over time. Consistent with Staff Accounting Bulletin No. 118 issued by the SEC, which provides for a measurement period of one year from the enactment date to finalize the accounting for effects of the TCJA, the Company provisionally recorded income tax expense of $7.8 million related to the TCJA in the fourth quarter of 2017. As of June 30, 2018, the Company has not yet completed its accounting for the tax effects of the enactment of the TCJA. The Internal Revenue Service is expected to issue additional guidance clarifying provisions of the TCJA. As additional guidance is issued one or more of the provisional amounts may change. The Company’s corporate structure requires the filing of two separate consolidated U.S. Federal income tax returns and one Canadian income tax return which include Lynden US, Earthstone, and Lynden Corp. As such, taxable income of Earthstone cannot be offset by tax attributes, including net operating losses, of Lynden US, nor can taxable income of Lynden US be offset by tax attributes of Earthstone. Earthstone and Lynden US record a tax provision, respectively, for their share of the book income or loss of EEH, net of the non-controlling interest. As EEH is treated as a partnership for U.S. Federal income tax purposes, it is not subject to income tax at the federal level and only recognizes the Texas Margin Tax. During the six months ended June 30, 2018, the Company recorded a net income tax benefit of approximately $0.1 million which included (1) income tax expense for Lynden US of $0.2 million as a result of its share of the distributable income from EEH, offset by a $0.5 million discrete income tax benefit related to refundable AMT tax credits resulting from the TCJA, (2) income tax expense for Earthstone of $0.9 million as a result of its share of the distributable income from EEH, which was used to reduce the valuation recorded against its deferred tax asset as future realization of the net deferred tax asset cannot be assured and (3) deferred income tax expense of $0.2 million related to the Texas Margin Tax. Lynden Corp incurred no material income or loss, or related income tax expense or benefit, for the six months ended June 30, 2018. During the six months ended June 30, 2017, the Company (1) recorded an income tax benefit for Lynden US of $2.9 million as a result of its standalone pre-tax incurred before the Bold Transaction and its share of the distributable loss from EEH after the Bold Transaction, (2) recorded a $7.5 million income tax benefit for Earthstone as a discrete item during the current reporting period, which resulted from a change in assessment of the realization of its net deferred tax assets due to the deferred tax liability that was recorded with respect to its investment in EEH as part of the Bold Transaction as an adjustment to Additional paid-in capital in the Condensed Consolidated Statement of Equity and (3) recorded deferred income tax expense of $0.5 million related to the Texas Margin Tax. Lynden Corp incurred no material income or loss, or related income tax expense or benefit, for the six months ended June 30, 2017.

Basis of Presentation and Sum20

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Recently Issued Accounting Standards	Recently Issued Accounting Standards Revenue Recognition – On January 1, 2018, we adopted the FASB accounting standards update for “Revenue from Contracts with Customers,” which superseded the revenue recognition requirements in “Topic 605, Revenue Recognition,” using the modified retrospective method. Adoption of this standard did not have a significant impact on our consolidated statements of operations or cash flows. We implemented processes to ensure new contracts are reviewed for the appropriate accounting treatment and generate the disclosures required under the new standard. Revenues for the sale of oil, natural gas and natural gas liquids are recognized as the product is delivered to our customers’ custody transfer points and collectability is reasonably assured. We fulfill the performance obligations under our customer contracts through daily delivery of oil, natural gas and natural gas liquids to our customers’ custody transfer points and revenues are recorded on a monthly basis. The prices received for oil, natural gas and natural gas liquids sales under our contracts are generally derived from stated market prices which are then adjusted to reflect deductions including transportation, fractionation and processing. As a result, our revenues from the sale of oil, natural gas and natural gas liquids will decrease if market prices decline. The sales of oil, natural gas and natural gas liquids as presented on the Consolidated Statements of Operations represent the Company’s share of revenues net of royalties and excluding revenue interests owned by others. When selling oil, natural gas and natural gas liquids on behalf of royalty owners or working interest owners, the Company is acting as an agent and thus reports the revenue on a net basis. To the extent actual volumes and prices of oil and natural gas sales are unavailable for a given reporting period because of timing or information not received from third parties, the expected sales volumes and prices for those properties are estimated and recorded. Statement of Cash Flows – In August 2016, the FASB issued updated guidance that clarifies how certain cash receipts and cash payments are presented in the statement of cash flows. This update provides guidance on eight specific cash flow issues. The standards update is effective for interim and annual periods beginning after December 15, 2017 and should be applied retrospectively to all periods presented. Early adoption is permitted. The Company adopted the new standard, as required, beginning with the first quarter of 2018, with no material impact on its Consolidated Financial Statements. Business Combinations – In January 2017, the FASB issued updated guidance that clarifies the definition of a business, which amends the guidance used in evaluating whether a set of acquired assets and activities represents a business. The guidance requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities is not considered a business. As a result, acquisition fees and expenses will be capitalized to the cost basis of the property acquired, and the tangible and intangible components acquired will be recorded based on their relative fair values as of the acquisition date. The standard is effective for all public business entities for annual periods beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted for periods for which financial statements have not yet been issued. The Company adopted the new standard, as required, beginning with the first quarter of 2018, with no material impact on its Consolidated Financial Statements. Compensation – Stock Compensation – In May 2017, the FASB issued updated guidance that provides clarity about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The update is effective for annual periods beginning after December 15, 2017, and early adoption is permitted, including adoption in any interim period. The Company adopted the new standard, as required, beginning with the first quarter of 2018, with no material impact on its Consolidated Financial Statements. Leases – In February 2016, the FASB issued updated guidance on accounting for leases. The update requires that a lessee recognize in the statement of financial position a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. Similar to current guidance, the update continues to differentiate between finance leases and operating leases; however, this distinction now primarily relates to differences in the manner of expense recognition over time and in the classification of lease payments in the statement of cash flows. The standards update is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted. Entities are required to use a modified retrospective adoption, with certain relief provisions, for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements when adopted. The Company expects to adopt this update, as required, beginning with the first quarter of 2019. The Company is in the process of evaluating the impact of this guidance, if any, of the adoption of this guidance on its Consolidated Financial Statements. Intangibles - Goodwill and Other – In January 2017, the FASB issued updated guidance simplifying the test for goodwill impairment. The update eliminates Step 2 of the goodwill impairment test. Instead, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The update is effective for annual and interim periods beginning after December 15, 2019 and early adoption is permitted for interim or annual goodwill impairment tests performed after January 1, 2017. The Company is in the process of evaluating the impact of this guidance, if any, on its Consolidated Financial Statements. Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting In June 2018, the FASB issued updated guidance simplifying the guidance on nonemployee share-based payments. The update is effective for annual and interim periods beginning after December 15, 2018 and early adoption is permitted. The Company is in the process of evaluating the impact of this guidance, if any, on its Consolidated Financial Statements. Codification Improvements – In July 2018, the FASB issued an update which does not prescribe any new accounting guidance, but instead makes minor improvements and clarifications of several different FASB Accounting Standards Codification areas based on comments and suggestions made by various stakeholders. Certain updates are applicable immediately while others provide for a transition period to adopt as part of the next fiscal year beginning after December 15, 2018. The Company is in the process of evaluating the impact of this update, if any, on its Consolidated Financial Statements.

Acquisitions and Divestitures (

Acquisitions and Divestitures (Tables)	6 Months Ended
	Jun. 30, 2018
Business Combinations [Abstract]
Schedule of Consideration Transferred, Fair Value of Assets Acquired and Liabilities Assumed	The following table summarizes the consideration transferred, fair value of assets acquired and liabilities assumed ( in thousands, except unit, share and share price amounts ): Consideration: Shares of Class A Common Stock issued pursuant to the Bold Contribution Agreement to certain employees of Bold 150,000 EEH Units issued to Bold Holdings 36,070,828 Total equity interest issued in the Bold Transaction 36,220,828 Closing per share price of Class A Common Stock as of May 9, 2017 $ 13.58 Total consideration transferred (1)(2) $ 491,879 Fair value of assets acquired: Cash and cash equivalents $ 2,355 Other current assets 10,078 Oil and gas properties (3) 557,704 Amount attributable to assets acquired $ 570,137 Fair value of liabilities assumed: Long-term debt (4) $ 58,000 Current liabilities 17,042 Deferred tax liability 2,857 Noncurrent asset retirement obligations 359 Amount attributable to liabilities assumed $ 78,258 (1) Consideration included 150,000 shares of Class A Common Stock recorded above based upon its fair value which was determined using its closing price of $13.58 per share on May 9, 2017. (2) Consideration was 36,070,828 EEH Units. Additionally, Bold Holdings purchased 36,070,828 shares of Class B Common Stock for $36,071 . Each EEH Unit, together with one share of Class B Common Stock, is convertible into one share of Class A Common Stock. The fair value of the consideration was determined using the closing price of the Company’s Class A Common Stock of $13.58 per share on May 9, 2017. (3) The market assumptions as to the future commodity prices, projections of estimated quantities of oil and natural gas reserves, expectations for timing and amount of the future development and operating costs, projecting of future rates of production, expected recovery rate and risk adjusted discount rates used by the Company to estimate the fair value of the oil and natural gas properties represent Level 3 inputs; see Note 3. Fair Value Measurements , below. (4) Concurrent with the closing of the Bold Transaction, EEH assumed Bold’s outstanding borrowings of $58 million under its credit agreement.
Schedule of Unaudited Pro forma Revenues and Expenses of Assets Acquired and Liabilities Assumed	Future results may vary significantly from the results reflected in this unaudited pro forma financial information ( in thousands, except per share amounts ): Three Months Ended Six Months Ended 2017 2017 Revenue $ 33,176 $ 62,755 Loss before taxes $ (55,939 ) $ (45,854 ) Net loss $ (46,025 ) $ (35,902 ) Less: Net loss available to noncontrolling interest $ (28,557 ) $ (22,056 ) Net loss attributable to Earthstone Energy, Inc. $ (17,468 ) $ (13,846 ) Pro forma net loss per common share attributable to Earthstone Energy, Inc.: Basic $ (0.77 ) $ (0.59 ) Diluted $ (0.77 ) $ (0.59 )

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Summary of Fair Value of Financial Assets and Liabilities	The following table summarizes the fair value of the Company’s financial assets and liabilities, by level within the fair-value hierarchy (in thousands) : June 30, 2018 Level 1 Level 2 Level 3 Total Financial assets Derivative asset - current $ — $ — $ — $ — Derivative asset - noncurrent — — — — Total financial assets $ — $ — $ — $ — Financial liabilities Derivative liability - current $ — $ 14,803 $ — $ 14,803 Derivative liability - noncurrent — 5,502 — 5,502 Total financial liabilities $ — $ 20,305 $ — $ 20,305 December 31, 2017 Financial assets Derivative asset - current $ — $ 184 $ — $ 184 Derivative asset - noncurrent — — — — Total financial assets $ — $ 184 $ — $ 184 Financial liabilities Derivative liability - current $ — $ 11,805 $ — $ 11,805 Derivative liability - noncurrent — 1,826 — 1,826 Total financial assets $ — $ 13,631 $ — $ 13,631

Derivative Financial Instrume23

Derivative Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Open Crude Oil and Natural Gas Derivative Contracts	The Company had the following open crude oil and natural gas derivative contracts as of June 30, 2018 : Price Swaps Period Commodity Volume (Bbls / MMBtu) Weighted Average Price ($/Bbl / $/MMBtu) Q3 - Q4 2018 Crude Oil 873,400 $ 54.31 Q1 - Q4 2019 Crude Oil 1,259,100 $ 57.15 Q3 - Q4 2018 Crude Oil (Basis Swap) (1) 303,600 $ (0.15 ) Q1 - Q4 2019 Crude Oil (Basis Swap) (1) 365,000 $ (5.95 ) Q1 - Q4 2020 Crude Oil (Basis Swap) (1) 366,000 $ (5.95 ) Q3 - Q4 2018 Crude Oil (Basis Swap) (2) 184,000 $ 6.35 Q1 - Q4 2019 Crude Oil (Basis Swap) (2) 365,000 $ 4.50 Q3 - Q4 2018 Natural Gas 1,220,000 $ 2.95 (1) The basis differential price is between WTI Midland Argus Crude and the WTI NYMEX. (2) The basis differential price is between LLS Argus Crude and the WTI NYMEX.
Schedule of Location and Fair Value Amounts of All Derivative Instruments	The following table summarizes the location and fair value amounts of all derivative instruments in the Condensed Consolidated Balance Sheets as well as the gross recognized derivative assets, liabilities, and amounts offset in the Condensed Consolidated Balance Sheets (in thousands) : June 30, 2018 December 31, 2017 Derivatives not designated as hedging contracts under ASC Topic 815 Balance Sheet Location Gross Recognized Assets / Liabilities Gross Amounts Offset Net Recognized Assets / Liabilities Gross Recognized Assets / Liabilities Gross Amounts Offset Net Recognized Assets / Liabilities Commodity contracts Derivative asset - current $ — $ — $ — $ 184 $ — $ 184 Commodity contracts Derivative liability - current $ 20,044 $ (5,241 ) $ 14,803 $ 11,805 $ — $ 11,805 Commodity contracts Derivative liability - noncurrent $ 6,052 $ (550 ) $ 5,502 $ 1,826 $ — $ 1,826
Summary of Realized and Unrealized Gains and Losses on Derivative Instruments	The following table summarizes the location and amounts of the Company’s realized and unrealized gains and losses on derivatives instruments in the Condensed Consolidated Statements of Operations (in thousands) : Three Months Ended Six Months Ended Derivatives not designated as hedging contracts under ASC Topic 815 Statement of Operations Location 2018 2017 2018 2017 Total (loss) gain on commodity contracts (Loss) gain on derivative contracts, net $ (5,858 ) $ 3,021 $ (6,858 ) $ 8,067 Cash (paid) received in settlements on commodity contracts (Loss) gain on derivative contracts, net (4,992 ) 319 (9,267 ) (267 ) (Loss) gain on commodity contracts, net $ (10,850 ) $ 3,340 $ (16,125 ) $ 7,800

Noncontrolling Interest (Tables

Noncontrolling Interest (Tables)	6 Months Ended
	Jun. 30, 2018
Noncontrolling Interest [Abstract]
Summary of Changes in Noncontrolling Interest	The following table presents the changes in noncontrolling interest for the six months ended June 30, 2018 : EEH Units Held By Earthstone and Lynden US % EEH Units Held By Others % Total EEH Units Outstanding As of December 31, 2017 27,584,638 43.3 % 36,052,169 56.7 % 63,636,807 EEH Units and Class B Common Stock converted to Class A Common Stock 205,241 (205,241 ) — EEH Units issued in connection with the vesting of restricted stock units 341,585 — 341,585 As of June 30, 2018 28,131,464 44.0 % 35,846,928 56.0 % 63,978,392
Summary of Activity for Equity Attributable to Noncontrolling Interest	The following table summarizes the activity for the equity attributable to the noncontrolling interest for the six months ended June 30, 2018 ( in thousands ): 2018 As of December 31, 2017 $ 446,558 EEH Units and Class B Common Stock converted to Class A Common Stock (2,550 ) Net income attributable to noncontrolling interest 7,692 As of June 30, 2018 $ 451,700

Net Income (Loss) Per Common 25

Net Income (Loss) Per Common Share (Tables)	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Reconciliation of Net Income (Loss) Per Common Share	A reconciliation of Net income (loss) per common share is as follows: Three Months Ended Six Months Ended (In thousands, except per share amounts) 2018 2017 2018 2017 Net income (loss) attributable to Earthstone Energy, Inc. $ 650 $ (17,123 ) $ 5,971 $ (16,394 ) Net income (loss) per common share attributable to Earthstone Energy, Inc.: Basic $ 0.02 $ (0.75 ) $ 0.21 $ (0.73 ) Diluted $ 0.02 $ (0.75 ) $ 0.21 $ (0.73 ) Weighted average common shares outstanding Basic 27,987,509 22,728,011 27,886,220 22,503,750 Add potentially dilutive securities: Unvested restricted stock units 48,543 — 81,201 — Diluted weighted average common shares outstanding 28,036,052 22,728,011 27,967,421 22,503,750

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Unvested RSU Award Activity	The table below summarizes unvested RSU award activity for the six months ended June 30, 2017 : Shares Weighted-Average Grant Date Fair Value Unvested RSUs at December 31, 2016 781,500 $ 12.53 Granted 214,500 $ 12.22 Forfeited (36,000 ) $ 13.30 Vested (467,629 ) $ 12.44 Unvested RSUs at June 30, 2017 492,371 $ 12.42 The table below summarizes unvested RSU award activity for the six months ended June 30, 2018 : Shares Weighted-Average Grant Date Fair Value Unvested RSUs at December 31, 2017 969,245 $ 9.89 Granted 344,000 $ 9.35 Forfeited (44,165 ) $ 10.87 Vested (454,011 ) $ 9.93 Unvested RSUs at June 30, 2018 815,069 $ 9.59

Asset Retirement Obligations (T

Asset Retirement Obligations (Tables)	6 Months Ended
	Jun. 30, 2018
Asset Retirement Obligation Disclosure [Abstract]
Summary of Asset Retirement Obligation Transactions	The following table summarizes the Company’s asset retirement obligation transactions recorded during the six months ended June 30, (in thousands) : 2018 2017 Beginning asset retirement obligations $ 2,354 $ 6,013 Liabilities incurred 42 2 Liabilities settled (79 ) — Acquisitions — 359 Accretion expense 84 306 Divestitures (385 ) (7 ) Revision of estimates (182 ) 19 Ending asset retirement obligations $ 1,834 $ 6,692

Basis of Presentation and Sum28

Basis of Presentation and Summary of Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands	May 09, 2017class_of_stock$ / sharesshares	May 09, 2017USD ($)class_of_stock$ / sharesshares	Jun. 30, 2018$ / sharesshares	Dec. 31, 2017$ / shares
Class A Common Stock
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Common stock, par value (in dollars per share) | $ / shares			$ 0.001	$ 0.001
Class B Common Stock
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Common stock, par value (in dollars per share) | $ / shares			$ 0.001	$ 0.001
Bold Contribution Agreement
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Number of classes of common stock | class_of_stock	2	2
Closing sale price of common stock (in dollars per share) | $ / shares	$ 13.58	$ 13.58
Bold Contribution Agreement | Earthstone Energy Holdings, LLC | Bold Energy Holdings, LLC
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
EEH Units issued to Bold Holdings (in shares)	36,070,828	36,070,828
Bold Contribution Agreement | Lynden Energy Corporation | Earthstone Energy Holdings, LLC
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
EEH Units issued to Bold Holdings (in shares)	5,865,328	5,865,328
Bold Contribution Agreement | Class A Common Stock
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Common stock, par value (in dollars per share) | $ / shares	$ 0.001	$ 0.001
Stock recapitalization ratio		1
EEH Units and Class B Common Stock converted to Class A Common Stock (in shares)		1	1
Bold Contribution Agreement | Class A Common Stock | 2014 Long Term Incentive Plan
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Shares of common stock issued in arrangement	150,000	150,000
Bold Contribution Agreement | Class A Common Stock | Bold Energy Holdings, LLC | Earthstone Energy Holdings, LLC
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Percentage of ownership interest	61.40%	61.40%
Bold Contribution Agreement | Class B Common Stock
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Common stock, par value (in dollars per share) | $ / shares	$ 0.001	$ 0.001
EEH Units and Class B Common Stock converted to Class A Common Stock (in shares)		1
Bold Contribution Agreement | Class B Common Stock | Bold Energy Holdings, LLC
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Cash from sale of stock | $		$ 36,071
Shares of common stock issued in arrangement	36,070,828	36,070,828
Bold Contribution Agreement | Class B Common Stock | Earthstone Energy Holdings, LLC | Bold Energy Holdings, LLC
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Cash from sale of stock | $		$ 36,071
EEH Units issued to Bold Holdings (in shares)	16,791,296	16,791,296

Acquisitions and Divestitures

Acquisitions and Divestitures - Schedule of Consideration Transferred, Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ / shares in Units, $ in Thousands	May 09, 2017	Jun. 30, 2018
Bold Transaction
Business Acquisition [Line Items]
Shares of common stock issued in arrangement	36,220,828
Closing per share price of common stock (in dollars per share)	$ 13.58
Total consideration transferred	$ 491,879
Fair value of assets acquired:
Cash and cash equivalents	2,355
Other current assets	10,078
Oil and gas properties	557,704
Amount attributable to assets acquired	570,137
Fair value of liabilities assumed:
Long-term debt	58,000
Current liabilities	17,042
Deferred tax liability	2,857
Noncurrent asset retirement obligations	359
Amount attributable to liabilities assumed	$ 78,258
Bold Transaction | Class A Common Stock
Business Acquisition [Line Items]
Shares of common stock issued in arrangement	150,000
Closing per share price of common stock (in dollars per share)	$ 13.58
Bold Transaction | Class B Common Stock
Business Acquisition [Line Items]
Closing per share price of common stock (in dollars per share)	$ 13.58
Bold Transaction | Bold Energy III LLC | Certain Employees | Class A Common Stock
Business Acquisition [Line Items]
Shares of common stock issued in arrangement	150,000
Bold Transaction | Bold Energy Holdings, LLC
Business Acquisition [Line Items]
Shares of common stock issued in arrangement	36,070,828
Bold Transaction | Bold Energy Holdings, LLC | Class B Common Stock
Business Acquisition [Line Items]
EEH Units issued to Bold Holdings (in shares)	36,070,828
Bold Contribution Agreement
Business Acquisition [Line Items]
Closing per share price of common stock (in dollars per share)	$ 13.58
Bold Contribution Agreement | Class A Common Stock
Fair value of liabilities assumed:
EEH Units and Class B Common Stock converted to Class A Common Stock (in shares)	1	1
Bold Contribution Agreement | Class B Common Stock
Fair value of liabilities assumed:
EEH Units and Class B Common Stock converted to Class A Common Stock (in shares)	1
Bold Contribution Agreement | Bold Energy Holdings, LLC | Class B Common Stock
Business Acquisition [Line Items]
Shares of common stock issued in arrangement	36,070,828
Fair value of liabilities assumed:
Cash from sale of stock	$ 36,071
Earthstone Energy Holdings, LLC | Bold Transaction | Bold Energy Holdings, LLC
Business Acquisition [Line Items]
EEH Units issued to Bold Holdings (in shares)	36,070,828
Earthstone Energy Holdings, LLC | Bold Contribution Agreement | Bold Energy Holdings, LLC
Business Acquisition [Line Items]
EEH Units issued to Bold Holdings (in shares)	36,070,828
Earthstone Energy Holdings, LLC | Bold Contribution Agreement | Bold Energy Holdings, LLC | Class B Common Stock
Business Acquisition [Line Items]
EEH Units issued to Bold Holdings (in shares)	16,791,296
Fair value of liabilities assumed:
Cash from sale of stock	$ 36,071

Acquisitions and Divestitures30

Acquisitions and Divestitures - Schedule of Unaudited Pro forma Revenues and Expenses of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Business Acquisition [Line Items]
Net income (loss)	$ 1,472	$ (54,967)	$ 13,663	$ (54,238)
Bold Transaction
Business Acquisition [Line Items]
Revenue		33,176		62,755
Loss before taxes		(55,939)		(45,854)
Net income (loss)		(46,025)		(35,902)
Less: Net loss available to noncontrolling interest		(28,557)		(22,056)
Net loss attributable to Earthstone Energy, Inc.		$ (17,468)		$ (13,846)
Pro forma net loss per common share attributable to Earthstone Energy, Inc.:
Basic (in dollars per share)		$ (0.77)		$ (0.59)
Diluted (in dollars per share)		$ (0.77)		$ (0.59)

Acquisitions and Divestitures31

Acquisitions and Divestitures - Narrative (Details) - USD ($) $ in Thousands	Dec. 20, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Business Acquisition [Line Items]
Proceeds from sales of oil and gas properties				$ 210	$ 2,416
Bold Transaction
Business Acquisition [Line Items]
Revenues			$ 24,300	51,600
Direct operating expenses		$ 12,300		$ 22,600
Williston Basin
Business Acquisition [Line Items]
Proceeds from sales of oil and gas properties	$ 27,300
Purchase price adjustment	$ 300

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financial assets
Derivative asset - current	$ 0	$ 184
Financial liabilities
Derivative liability - current	14,803	11,805
Derivative liability - noncurrent	5,502	1,826
Fair Value on a Recurring Basis
Financial assets
Derivative asset - current	0	184
Derivative asset - noncurrent	0	0
Total financial assets	0	184
Financial liabilities
Derivative liability - current	14,803	11,805
Derivative liability - noncurrent	5,502	1,826
Total financial liabilities	20,305	13,631
Level 1 | Fair Value on a Recurring Basis
Financial assets
Derivative asset - current	0	0
Derivative asset - noncurrent	0	0
Total financial assets	0	0
Financial liabilities
Derivative liability - current	0	0
Derivative liability - noncurrent	0	0
Total financial liabilities	0	0
Level 2 | Fair Value on a Recurring Basis
Financial assets
Derivative asset - current	0	184
Derivative asset - noncurrent	0	0
Total financial assets	0	184
Financial liabilities
Derivative liability - current	14,803	11,805
Derivative liability - noncurrent	5,502	1,826
Total financial liabilities	20,305	13,631
Level 3 | Fair Value on a Recurring Basis
Financial assets
Derivative asset - current	0	0
Derivative asset - noncurrent	0	0
Total financial assets	0	0
Financial liabilities
Derivative liability - current	0	0
Derivative liability - noncurrent	0	0
Total financial liabilities	$ 0	$ 0

Derivative Financial Instrume33

Derivative Financial Instruments - Schedule of Open Crude Oil and Natural Gas Derivative Contracts (Details)	Jul. 09, 2018$ / bblbbl	Jun. 30, 2018MMBTU$ / MMBTU$ / bblbbl
Q3 - Q4 2018 | Natural Gas
Derivative [Line Items]
Natural gas volume | MMBTU		1,220,000
Weighted Average Price ($/Bbl / $/MMBtu) | $ / MMBTU		2.95
Q3 - Q4 2018 | Crude Oil
Derivative [Line Items]
Crude oil volume | bbl		873,400
Weighted Average Price ($/Bbl / $/MMBtu)		54.31
Q1 - Q4 2019 | Crude Oil
Derivative [Line Items]
Crude oil volume | bbl		1,259,100
Weighted Average Price ($/Bbl / $/MMBtu)		57.15
Q3 - Q4 2018 | Crude Oil
Derivative [Line Items]
Crude oil volume | bbl		303,600
Q1 - Q4 2019 | Crude Oil
Derivative [Line Items]
Crude oil volume | bbl		365,000
Q1 - Q4 2020 | Crude Oil
Derivative [Line Items]
Crude oil volume | bbl		366,000
Q3 - Q4 2018 | Crude Oil
Derivative [Line Items]
Crude oil volume | bbl		184,000
Short | Q3 - Q4 2018 | Crude Oil
Derivative [Line Items]
Weighted Average Price ($/Bbl / $/MMBtu)		(0.15)
Short | Q1 - Q4 2019 | Crude Oil
Derivative [Line Items]
Weighted Average Price ($/Bbl / $/MMBtu)		(5.95)
Short | Q1 - Q4 2020 | Crude Oil
Derivative [Line Items]
Weighted Average Price ($/Bbl / $/MMBtu)		(5.95)
Long | Q1 - Q4 2019 | Crude Oil
Derivative [Line Items]
Weighted Average Price ($/Bbl / $/MMBtu)		4.50
Long | Q3 - Q4 2018 | Crude Oil
Derivative [Line Items]
Weighted Average Price ($/Bbl / $/MMBtu)		6.35
Subsequent Event | Basis Swap | Crude Oil
Derivative [Line Items]
Crude oil volume | bbl	547,500
Subsequent Event | Short | Basis Swap | Crude Oil
Derivative [Line Items]
Weighted Average Price ($/Bbl / $/MMBtu)	(7.75)

Derivative Financial Instrume34

Derivative Financial Instruments - Schedule of Location and Fair Value Amounts of All Derivative Instruments (Details) - Derivatives Not Designated as Hedging Contracts - Commodity Contracts - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Derivative asset - current
Derivative Asset [Abstract]
Gross Recognized Assets	$ 0	$ 184
Gross Amounts Offset, Assets	0	0
Total financial assets	0	184
Derivative liability - current
Derivative Liability [Abstract]
Gross Recognized Liabilities	20,044	11,805
Gross Amounts Offset, Liabilities	(5,241)	0
Total financial liabilities	14,803	11,805
Derivative liability - noncurrent
Derivative Liability [Abstract]
Gross Recognized Liabilities	6,052	1,826
Gross Amounts Offset, Liabilities	(550)	0
Total financial liabilities	$ 5,502	$ 1,826

Derivative Financial Instrume35

Derivative Financial Instruments - Summary of Realized and Unrealized Gains and Losses on Derivative Instruments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Derivative Instruments, Gain (Loss) [Line Items]
Cash (paid) received in settlements on commodity contracts			$ 9,267	$ 267
(Loss) gain on commodity contracts, net	$ (10,850)	$ 3,340	(16,125)	7,800
Derivatives Not Designated as Hedging Contracts | (Loss) Gain On Derivative Contracts, Net
Derivative Instruments, Gain (Loss) [Line Items]
Total (loss) gain on commodity contracts	(5,858)	3,021	(6,858)	8,067
Cash (paid) received in settlements on commodity contracts	$ (4,992)	$ 319	$ (9,267)	$ (267)

Oil and Natural Gas Properties

Oil and Natural Gas Properties (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Oil And Natural Gas Properties [Line Items]
Impairment of proved and unproved oil and gas properties	$ 0	$ 66,648,000	$ 0	$ 66,648,000
Proved Oil and Natural Gas Properties
Oil And Natural Gas Properties [Line Items]
Depletion expenses	$ 10,700,000	9,900,000	$ 20,300,000	17,700,000
Impairment of proved and unproved oil and gas properties		63,000,000		63,000,000
Unproved Oil and Gas Properties
Oil And Natural Gas Properties [Line Items]
Impairment of proved and unproved oil and gas properties		$ 3,600,000		$ 3,600,000
Unproved Oil and Gas Properties | Minimum
Oil And Natural Gas Properties [Line Items]
Unproved oil and gas lease term			3 years
Unproved Oil and Gas Properties | Maximum
Oil And Natural Gas Properties [Line Items]
Unproved oil and gas lease term			5 years

Noncontrolling Interest - Summ

Noncontrolling Interest - Summary of Changes in Noncontrolling Interest (Details)	6 Months Ended
	Jun. 30, 2018shares	Dec. 31, 2017
Class A Common Stock
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Outstanding, beginning balance (in shares)	27,584,638
Outstanding, ending balance (in shares)	28,131,464
Earthstone Energy Holdings, LLC
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Outstanding, beginning balance (in shares)	63,636,807
Outstanding, ending balance (in shares)	63,978,392
Earthstone Energy Holdings, LLC | Restricted Stock Units
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
EEH Units issued in connection with the vesting of restricted stock units (in shares)	341,585
Earthstone Energy Holdings, LLC | Bold Transaction | Class A Common Stock
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
EEH Units and Class B Common Stock converted to Class A Common Stock (in shares)	0
Earthstone Energy Incorporation And Lynden United States Of America Incorporation | Earthstone Energy Holdings, LLC
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Outstanding, beginning balance (in shares)	27,584,638
Outstanding, ending balance (in shares)	28,131,464
Percentage of EEH Units Held By Earthstone and Lynden	44.00%	43.30%
Earthstone Energy Incorporation And Lynden United States Of America Incorporation | Earthstone Energy Holdings, LLC | Restricted Stock Units
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
EEH Units issued in connection with the vesting of restricted stock units (in shares)	341,585
Earthstone Energy Incorporation And Lynden United States Of America Incorporation | Earthstone Energy Holdings, LLC | Bold Transaction | Class A Common Stock
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
EEH Units and Class B Common Stock converted to Class A Common Stock (in shares)	205,241
Other Entities | Earthstone Energy Holdings, LLC
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Outstanding, beginning balance (in shares)	36,052,169
Outstanding, ending balance (in shares)	35,846,928
Percentage of EEH Units Held By Others	56.00%	56.70%
Other Entities | Earthstone Energy Holdings, LLC | Bold Transaction | Class A Common Stock
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
EEH Units and Class B Common Stock converted to Class A Common Stock (in shares)	(205,241)

Noncontrolling Interest - Su38

Noncontrolling Interest - Summary of Activity for Equity Attributable to Noncontrolling Interest (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
December 31, 2017			$ 446,558
Net income attributable to noncontrolling interest	$ 822	$ (37,844)	7,692	$ (37,844)
June 30, 2018	451,700		451,700
Bold Transaction
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
December 31, 2017			446,558
EEH Units and Class B Common Stock converted to Class A Common Stock			(2,550)
Net income attributable to noncontrolling interest			7,692
June 30, 2018	$ 451,700		$ 451,700

Net Income (Loss) Per Common 39

Net Income (Loss) Per Common Share - Reconciliation of Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings Per Share [Abstract]
Net income (loss) attributable to Earthstone Energy, Inc.	$ 650	$ (17,123)	$ 5,971	$ (16,394)
Net income (loss) per common share attributable to Earthstone Energy, Inc.:
Basic (in dollars per share)	$ 0.02	$ (0.75)	$ 0.21	$ (0.73)
Diluted (in dollars per share)	$ 0.02	$ (0.75)	$ 0.21	$ (0.73)
Weighted average common shares outstanding
Basic (in shares)	27,987,509	22,728,011	27,886,220	22,503,750
Add potentially dilutive securities:
Unvested restricted stock units (in shares)	48,543	0	81,201	0
Diluted weighted average common shares outstanding (in shares)	28,036,052	22,728,011	27,967,421	22,503,750

Net Income (Loss) Per Common 40

Net Income (Loss) Per Common Share - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings Per Share [Abstract]
Net income (loss) attributable to noncontrolling interest	$ 822,000	$ (37,844,000)	$ 7,692,000	$ (37,844,000)
Dilutive effect on Net income (loss) per common share attributable to Earthstone Energy, Inc			$ 0

Common Stock (Details)

Common Stock (Details) $ in Thousands	May 09, 2017USD ($)class_of_stockshares	May 09, 2017USD ($)class_of_stockshares	Jul. 31, 2018shares	Jun. 30, 2018USD ($)shares	Jun. 30, 2018USD ($)shares	Dec. 31, 2017USD ($)shares	Jun. 30, 2017shares	May 08, 2017shares
Bold Contribution Agreement
Capital Unit [Line Items]
Number of classes of common stock | class_of_stock	2	2
Member Units | Bold Contribution Agreement
Capital Unit [Line Items]
Stock conversion (in shares)					1
2014 Plan
Capital Unit [Line Items]
Common stock, shares issued (in shares)				255,313	255,313
Class A Common Stock
Capital Unit [Line Items]
Common stock, shares issued (in shares)				28,131,464	28,131,464	27,584,638
Common stock, shares outstanding (in shares)				28,131,464	28,131,464	27,584,638
Common stock issued, value | $				$ 28	$ 28	$ 28
Class A Common Stock | Bold Contribution Agreement
Capital Unit [Line Items]
Stock recapitalization ratio		1
Common stock, shares issued (in shares)	150,000	150,000
Common stock issued, value | $	$ 2,000	$ 2,000
Stock conversion (in shares)		1			1
Class A Common Stock | 2014 Plan
Capital Unit [Line Items]
Common stock, shares issued (in shares)				341,585	341,585		84,825	382,804
Class B Common Stock
Capital Unit [Line Items]
Common stock, shares issued (in shares)				35,846,928	35,846,928	36,052,169
Common stock, shares outstanding (in shares)				35,846,928	35,846,928	36,052,169
Common stock issued, value | $				$ 36	$ 36	$ 36
EEH Units and Class B Common Stock converted to Class A Common Stock (in shares)				11,195	205,241
Class B Common Stock | Bold Contribution Agreement
Capital Unit [Line Items]
Stock conversion (in shares)		1
Subsequent Event | Class B Common Stock
Capital Unit [Line Items]
EEH Units and Class B Common Stock converted to Class A Common Stock (in shares)			135,621

Stock-Based Compensation - Nar

Stock-Based Compensation - Narrative (Details) - USD ($)	Jun. 06, 2018	Feb. 28, 2018	May 09, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance-based restricted stock granted (in shares)						344,000	214,500
PSUs outstanding (in shares)				815,069	492,371	815,069	492,371	969,245	781,500
Weighted average fair value per share (in dollars per share)				$ 9.59	$ 12.42	$ 9.59	$ 12.42	$ 9.89	$ 12.53
Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Threshold trading days						30 days
Remaining vesting period of unrecognized compensation expense (in years)						1 year 4 months 10 days
2014 Plan | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized to be issued under the plan	6,400,000
Stock-based compensation expense				$ 1,800,000	$ 1,600,000	$ 3,600,000	$ 3,000,000
Unrecognized compensation expense related to unvested stock				7,500,000		$ 7,500,000
Weighted average remaining vesting period of unrecognized compensation expense						1 year 8 days
2014 Plan | Restricted Stock Units | Class A Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase in number of shares authorized to be issued under the plan	600,000
2014 Plan | Restricted Stock Units | Bold Contribution Agreement
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized to be issued under the plan			5,800,000
2014 Plan | Restricted Stock Units | Bold Contribution Agreement | Class A Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase in number of shares authorized to be issued under the plan			4,300,000
Number of shares of common stock that each holder has contingent right to receive			1
2014 Plan | Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense				$ 300,000	$ 0	$ 400,000	$ 0
Performance-based restricted stock granted (in shares)		252,500
PSUs outstanding (in shares)				252,500		252,500		0
Unrecognized compensation expense related to PSU awards				$ 3,100,000		$ 3,100,000
Weighted average fair value per share (in dollars per share)				$ 13.75		$ 13.75
Minimum | Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Relative Total Shareholder Return, percentage		0.00%
Minimum | Performance Stock Units | Class A Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Potential shares issuable under grant		0
Maximum | Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Relative Total Shareholder Return, percentage		200.00%
Maximum | Performance Stock Units | Class A Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Potential shares issuable under grant		505,000

Stock-Based Compensation - Sum

Stock-Based Compensation - Summary of Unvested RSU Award Activity (Details) - Restricted Stock Units - $ / shares	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Shares
Unvested RSUs at beginning period (in shares)	969,245	781,500
Granted (in shares)	344,000	214,500
Forfeited (in shares)	(44,165)	(36,000)
Vested (in shares)	(454,011)	(467,629)
Unvested RSUs at end period (in shares)	815,069	492,371
Weighted-Average Grant Date Fair Value
Unvested RSUs at beginning of period, Weighted-Average Grant Date Fair Value (in dollars per share)	$ 9.89	$ 12.53
Granted, Weighted-Average Grant Date Fair Value (in dollars per share)	9.35	12.22
Forfeited, Weighted-Average Grant Date Fair Value (in dollars per share)	10.87	13.30
Vested, Weighted-Average Grant Date Fair Value (in dollars per share)	9.93	12.44
Unvested RSUs at end of period, Weighted-Average Grant Date Fair Value (in dollars per share)	$ 9.59	$ 12.42

Long-Term Debt (Details)

Long-Term Debt (Details)	May 23, 2018USD ($)	May 09, 2017USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)
Debt Instrument [Line Items]
Repayments of borrowings					$ 27,500,000
Long-term debt			$ 22,500,000		$ 22,500,000		$ 25,000,000
Long-term debt, percentage bearing annual interest rate			3.838%		3.838%
Amount of borrowings			$ 25,000,000		$ 25,000,000
Averaged interest rate on borrowings			3.66%	4.32%	3.64%	4.45%
Commitment fees on borrowings			$ 300,000	$ 100,000	$ 500,000	$ 100,000
Amortization of deferred financing costs			100,000	100,000	143,000	137,000
Bold Transaction | Four Year Senior Secured Revolving Credit Facility
Debt Instrument [Line Items]
Repayments of borrowings		$ 10,000,000
EEH Credit Agreement
Debt Instrument [Line Items]
Credit agreement, covenant, current ratio		1
Credit agreement, covenant, leverage ratio		4
EBITDAX multiplier		4
Current borrowing base under EEH credit agreement			225,000,000		225,000,000
Long-term debt			22,500,000		22,500,000		$ 25,000,000
Additional borrowing base available under credit agreement			202,500,000		202,500,000
Capitalized costs associated with borrowings			$ 200,000		$ 200,000
EEH Credit Agreement | Minimum
Debt Instrument [Line Items]
Commitment fee percentage		0.375%
EEH Credit Agreement | Maximum
Debt Instrument [Line Items]
Commitment fee percentage		0.50%
EEH Credit Agreement | London Interbank Offered Rate (LIBOR) | Minimum
Debt Instrument [Line Items]
Applicable margin percentage		1.75%
EEH Credit Agreement | London Interbank Offered Rate (LIBOR) | Maximum
Debt Instrument [Line Items]
Applicable margin percentage		2.75%
EEH Credit Agreement | Prime Rate | Minimum
Debt Instrument [Line Items]
Applicable margin percentage		0.75%
EEH Credit Agreement | Prime Rate | Maximum
Debt Instrument [Line Items]
Applicable margin percentage		1.75%
Earthstone Energy Credit Agreement
Debt Instrument [Line Items]
Capitalized costs associated with borrowings				$ 1,100,000		$ 1,100,000
Write-off of Deferred Financing Costs | Bold Transaction | Four Year Senior Secured Revolving Credit Facility
Debt Instrument [Line Items]
Remaining unamortized deferred financing costs		$ 500,000
Line of Credit | EEH Credit Agreement
Debt Instrument [Line Items]
Line of credit, borrowing base	$ 225,000,000	$ 185,000,000
Reduction in basis points	0.50%

Asset Retirement Obligations (D

Asset Retirement Obligations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Beginning asset retirement obligations			$ 2,354	$ 6,013
Liabilities incurred			42	2
Liabilities settled			(79)	0
Acquisitions			0	359
Accretion expense	$ 43	$ 154	84	306
Divestitures			(385)	(7)
Revision of estimates			(182)	19
Ending asset retirement obligations	$ 1,834	$ 6,692	$ 1,834	$ 6,692

Related Party Transactions (Det

Related Party Transactions (Details) - Flatonia Energy, LLC - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Related Party Transaction [Line Items]
Payments made to related party	$ 6,100,000	$ 7,200,000	$ 12,400,000	$ 14,400,000
Payments received from related party	2,000,000	$ 800,000	4,100,000	$ 2,400,000
Amounts receivable from related party	300,000		300,000		$ 1,300,000
Amounts payable to related party	$ 0		$ 0		$ 0
Class A Common Stock
Related Party Transaction [Line Items]
Percentage of common stock acquired			10.50%
Common Stock
Related Party Transaction [Line Items]
Percentage of common stock acquired			4.70%

Commitments and Contingencies (

Commitments and Contingencies (Details) - Trinity Royal Partners, LP $ in Millions	Aug. 18, 2017USD ($)well
Loss Contingencies [Line Items]
Number of properties under litigation case | well	2
Damages and attorneys’ fees sought by plaintiff | $	$ 7.2

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Tax Disclosure [Line Items]
Tax Act, provisional income tax expense		$ 7,800
Income tax benefit	$ 302		$ 9,914	$ 53	$ 9,952
Tax Act, discrete income tax benefit, refundable AMT tax credit				500
Deferred income tax expense (benefit)				(54)	(9,952)
Earthstone Energy Holdings, LLC
Income Tax Disclosure [Line Items]
Income tax expense (benefit)				900
Deferred income tax expense (benefit)				200	500
Lynden US
Income Tax Disclosure [Line Items]
Income tax expense (benefit)				$ 200	(2,900)
Bold Transaction | Earthstone Energy Holdings, LLC
Income Tax Disclosure [Line Items]
Income tax expense (benefit)					$ (7,500)