Earthstone Energy (ESTE) 10-Q 3 Nov 21 2021 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2021	Nov. 02, 2021
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	001-35049
Entity Registrant Name	EARTHSTONE ENERGY, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	84-0592823
Entity Address, Address Line One	1400 Woodloch Forest Drive
Entity Address, Address Line Two	Suite 300
Entity Address, City or Town	The Woodlands
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77380
City Area Code	281
Local Phone Number	298-4246
Title of 12(b) Security	Class A Common Stock, $0.001 par value per share
Trading Symbol	ESTE
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Entity Central Index Key	0000010254
Current Fiscal Year End Date	--12-31
Class A Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		53,305,168
Class B Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		34,351,995

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash	$ 441	$ 1,494
Accounts receivable:
Oil, natural gas, and natural gas liquids revenues	45,076	16,255
Joint interest billings and other, net of allowance of $19 and $19 at September 30, 2021 and December 31, 2020, respectively	3,058	7,966
Derivative asset	17	7,509
Prepaid expenses and other current assets	1,565	1,509
Total current assets	50,157	34,733
Oil and gas properties, successful efforts method:
Proved properties	1,487,362	1,017,496
Unproved properties	235,232	233,767
Land	5,382	5,382
Total oil and gas properties	1,727,976	1,256,645
Accumulated depreciation, depletion and amortization	(367,000)	(291,213)
Net oil and gas properties	1,360,976	965,432
Other noncurrent assets:
Office and other equipment, net of accumulated depreciation and amortization of $4,323 and $3,675 at September 30, 2021 and December 31, 2020, respectively	1,730	931
Derivative asset	453	396
Operating lease right-of-use assets	1,963	2,450
Other noncurrent assets	9,694	1,315
TOTAL ASSETS	1,424,973	1,005,257
Current liabilities:
Accounts payable	33,602	6,232
Revenues and royalties payable	30,139	27,492
Accrued expenses	20,620	16,504
Asset retirement obligation	543	447
Derivative liability	67,575	1,135
Advances	1,325	2,277
Operating lease liabilities	732	773
Finance lease liabilities	0	69
Other current liabilities	634	565
Total current liabilities	155,170	55,494
Noncurrent liabilities:
Long-term debt	278,253	115,000
Deferred tax liability	13,764	14,497
Asset retirement obligation	14,965	2,580
Derivative liability	7,730	173
Operating lease liabilities	1,394	1,840
Finance lease liabilities	0	5
Other noncurrent liabilities	3,803	132
Total noncurrent liabilities	319,909	134,227
Commitments and Contingencies (Note 13)
Equity:
Preferred stock, $0.001 par value, 20,000,000 shares authorized; none issued or outstanding	0	0
Additional paid-in capital	690,739	540,074
Accumulated deficit	(199,544)	(195,258)
Total Earthstone Energy, Inc. equity	491,280	344,881
Noncontrolling interest	458,614	470,655
Total equity	949,894	815,536
TOTAL LIABILITIES AND EQUITY	1,424,973	1,005,257
Class A Common Stock
Equity:
Common stock	51	30
Class B Common Stock
Equity:
Common stock	$ 34	$ 35

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Allowance for credit loss	$ 19	$ 19
Office and other equipment, accumulated depreciation	$ 4,323	$ 3,675
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)	50,692,057	30,343,421
Common stock, shares outstanding (in shares)	50,692,057	30,343,421
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)	34,353,995	35,009,371
Common stock, shares outstanding (in shares)	34,353,995	35,009,371

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
REVENUES
Total revenues	$ 110,384	$ 41,047	$ 275,627	$ 107,848
OPERATING COSTS AND EXPENSES
Lease operating expense	12,983	7,044	35,579	21,971
Production and ad valorem taxes	7,225	2,696	17,428	7,198
Rig termination expense	0	0	0	426
Depreciation, depletion and amortization	27,059	28,538	77,493	76,096
Impairment expense	0	2,115	0	62,548
General and administrative expense	7,650	5,796	25,200	19,615
Transaction costs	293	(705)	2,906	(324)
Accretion of asset retirement obligations	323	47	916	137
Exploration expense	296	0	326	298
Total operating costs and expenses	55,829	45,531	159,848	187,965
Gain on sale of oil and gas properties	392	0	740	198
Income (loss) from operations	54,947	(4,484)	116,519	(79,919)
OTHER INCOME (EXPENSE)
Interest expense, net	(3,050)	(1,186)	(7,668)	(4,207)
(Loss) gain on derivative contracts, net	(33,128)	(6,040)	(117,566)	73,065
Other income, net	520	(18)	823	120
Total other income (expense)	(35,658)	(7,244)	(124,411)	68,978
Income (loss) before income taxes	19,289	(11,728)	(7,892)	(10,941)
Income tax (expense) benefit	(451)	(130)	343	(112)
Net income (loss)	18,838	(11,858)	(7,549)	(11,053)
Less: Net income (loss) attributable to noncontrolling interest	8,420	(6,413)	(3,263)	(5,977)
Net income (loss) attributable to Earthstone Energy, Inc.	$ 10,418	$ (5,445)	$ (4,286)	$ (5,076)
Net income (loss) per common share attributable to Earthstone Energy, Inc.:
Basic (in dollars per share)	$ 0.21	$ (0.18)	$ (0.09)	$ (0.17)
Diluted (in dollars per share)	$ 0.20	$ (0.18)	$ (0.09)	$ (0.17)
Weighted average common shares outstanding:
Basic (in shares)	49,243,185	30,073,635	45,406,952	29,810,705
Diluted (in shares)	52,662,942	30,073,635	45,406,952	29,810,705
Oil
REVENUES
Total revenues	$ 74,051	$ 33,158	$ 205,788	$ 93,017
Natural gas
REVENUES
Total revenues	14,368	2,642	26,910	4,855
Natural gas liquids
REVENUES
Total revenues	$ 21,965	$ 5,247	$ 42,929	$ 9,976

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands	Total	Class A Common Stock	Class B Common Stock	Common StockClass A Common Stock	Common StockClass B Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total Earthstone Energy, Inc. Equity	Noncontrolling Interest
Beginning balance (in shares) at Dec. 31, 2019				29,421,131	35,260,680
Beginning balance at Dec. 31, 2019	$ 835,751			$ 29	$ 35	$ 527,246	$ (181,711)	$ 345,599	$ 490,152
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	2,694					2,694		2,694
Vesting of restricted stock units and performance units, net of taxes paid (in shares)				231,834
Vesting of restricted stock units and performance units, net of taxes paid	1			$ 1				1
Vested restricted stock units and performance units retained by the Company in exchange for payment of recipient mandatory tax withholdings (in shares)				75,695
Vested restricted stock units and performance units retained by the Company in exchange for payment of recipient mandatory tax withholdings	(214)					(214)		(214)
Cancellation of treasury shares (in shares)				(75,695)
Class B Common Stock converted to Class A Common Stock (in shares)				199,993	(199,993)
Class B Common Stock converted to Class A Common Stock	0					2,897		2,897	(2,897)
Net income (loss)	36,714						16,708	16,708	20,006
Ending balance (in shares) at Mar. 31, 2020				29,852,958	35,060,687
Ending balance at Mar. 31, 2020	874,946			$ 30	$ 35	532,623	(165,003)	367,685	507,261
Beginning balance (in shares) at Dec. 31, 2019				29,421,131	35,260,680
Beginning balance at Dec. 31, 2019	835,751			$ 29	$ 35	527,246	(181,711)	345,599	490,152
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Class B Common Stock converted to Class A Common Stock (in shares)			251,309
Net income (loss)	(11,053)
Ending balance (in shares) at Sep. 30, 2020				30,210,749	35,009,371
Ending balance at Sep. 30, 2020	831,833			$ 30	$ 35	537,990	(186,787)	351,268	480,565
Beginning balance (in shares) at Mar. 31, 2020				29,852,958	35,060,687
Beginning balance at Mar. 31, 2020	874,946			$ 30	$ 35	532,623	(165,003)	367,685	507,261
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	2,568					2,568		2,568
Vesting of restricted stock units and performance units, net of taxes paid (in shares)		165,399
Vested restricted stock units and performance units retained by the Company in exchange for payment of recipient mandatory tax withholdings (in shares)				57,810
Vested restricted stock units and performance units retained by the Company in exchange for payment of recipient mandatory tax withholdings	(170)					(170)		(170)
Cancellation of treasury shares (in shares)				(57,810)
Class B Common Stock converted to Class A Common Stock (in shares)				2,000	(2,000)
Class B Common Stock converted to Class A Common Stock	0					28		28	(28)
Net income (loss)	(35,909)						(16,339)	(16,339)	(19,570)
Ending balance (in shares) at Jun. 30, 2020				30,020,357	35,058,687
Ending balance at Jun. 30, 2020	841,435			$ 30	$ 35	535,049	(181,342)	353,772	487,663
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	2,403					2,403		2,403
Vesting of restricted stock units and performance units, net of taxes paid (in shares)		141,076
Vested restricted stock units and performance units retained by the Company in exchange for payment of recipient mandatory tax withholdings (in shares)				54,268
Vested restricted stock units and performance units retained by the Company in exchange for payment of recipient mandatory tax withholdings	(147)					(147)		(147)
Cancellation of treasury shares (in shares)				(54,268)
Class B Common Stock converted to Class A Common Stock (in shares)			49,316	49,316	(49,316)
Class B Common Stock converted to Class A Common Stock	0					685		685	(685)
Net income (loss)	(11,858)						(5,445)	(5,445)	(6,413)
Ending balance (in shares) at Sep. 30, 2020				30,210,749	35,009,371
Ending balance at Sep. 30, 2020	831,833			$ 30	$ 35	537,990	(186,787)	351,268	480,565
Beginning balance (in shares) at Dec. 31, 2020				30,343,421	35,009,371
Beginning balance at Dec. 31, 2020	815,536			$ 30	$ 35	540,074	(195,258)	344,881	470,655
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	2,605					2,605		2,605
Shares issued in connection with Acquisition (in shares)				12,719,594
Shares issued in connection with Acquisition	76,572			$ 13		76,559		76,572
Vesting of restricted stock units and performance units, net of taxes paid (in shares)				463,495
Vested restricted stock units and performance units retained by the Company in exchange for payment of recipient mandatory tax withholdings (in shares)				257,764
Vested restricted stock units and performance units retained by the Company in exchange for payment of recipient mandatory tax withholdings	(2,080)					(2,080)		(2,080)
Cancellation of treasury shares (in shares)				(257,764)
Class B Common Stock converted to Class A Common Stock (in shares)				578,031	(578,031)
Class B Common Stock converted to Class A Common Stock	0			$ 1	$ (1)	7,758		7,758	(7,758)
Net income (loss)	(10,556)						(5,833)	(5,833)	(4,723)
Ending balance (in shares) at Mar. 31, 2021				44,104,541	34,431,340
Ending balance at Mar. 31, 2021	882,077			$ 44	$ 34	624,916	(201,091)	423,903	458,174
Beginning balance (in shares) at Dec. 31, 2020				30,343,421	35,009,371
Beginning balance at Dec. 31, 2020	815,536			$ 30	$ 35	540,074	(195,258)	344,881	470,655
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Class B Common Stock converted to Class A Common Stock (in shares)			655,376
Net income (loss)	(7,549)
Ending balance (in shares) at Sep. 30, 2021				50,692,057	34,353,995
Ending balance at Sep. 30, 2021	949,894			$ 51	$ 34	690,739	(199,544)	491,280	458,614
Beginning balance (in shares) at Mar. 31, 2021				44,104,541	34,431,340
Beginning balance at Mar. 31, 2021	882,077			$ 44	$ 34	624,916	(201,091)	423,903	458,174
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	2,175					2,175		2,175
Vesting of restricted stock units and performance units, net of taxes paid (in shares)				155,058
Vested restricted stock units and performance units retained by the Company in exchange for payment of recipient mandatory tax withholdings (in shares)				66,343
Vested restricted stock units and performance units retained by the Company in exchange for payment of recipient mandatory tax withholdings	(741)					(741)		(741)
Cancellation of treasury shares (in shares)				(66,343)
Class B Common Stock converted to Class A Common Stock (in shares)				33,463	(33,463)
Class B Common Stock converted to Class A Common Stock	0					441		441	(441)
Net income (loss)	(15,831)						(8,871)	(8,871)	(6,960)
Ending balance (in shares) at Jun. 30, 2021				44,293,062	34,397,877
Ending balance at Jun. 30, 2021	867,680			$ 44	$ 34	626,791	(209,962)	416,907	450,773
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	2,161					2,161		2,161
Shares issued in connection with Acquisition (in shares)				6,200,000
Shares issued in connection with Acquisition	61,814			$ 6		61,808		61,814
Vesting of restricted stock units and performance units, net of taxes paid (in shares)				155,113
Vesting of restricted stock units and performance units, net of taxes paid	0			$ 1		(1)
Vested restricted stock units and performance units retained by the Company in exchange for payment of recipient mandatory tax withholdings (in shares)				65,106
Vested restricted stock units and performance units retained by the Company in exchange for payment of recipient mandatory tax withholdings	(599)					(599)		(599)
Cancellation of treasury shares (in shares)				(65,106)
Class B Common Stock converted to Class A Common Stock (in shares)			43,882	43,882	(43,882)
Class B Common Stock converted to Class A Common Stock	0					579		579	(579)
Net income (loss)	18,838						10,418	10,418	8,420
Ending balance (in shares) at Sep. 30, 2021				50,692,057	34,353,995
Ending balance at Sep. 30, 2021	$ 949,894			$ 51	$ 34	$ 690,739	$ (199,544)	$ 491,280	$ 458,614

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net loss	$ (7,549)	$ (11,053)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation, depletion and amortization	77,493	76,096
Impairment of proved and unproved oil and gas properties	0	44,928
Impairment of goodwill	0	17,620
Accretion of asset retirement obligations	916	137
Settlement of asset retirement obligations	(103)	0
(Gain) on sale of oil and gas properties	(740)	(198)
(Gain) on sale of office and other equipment	(114)	0
Total loss (gain) on derivative contracts, net	117,566	(73,065)
Operating portion of net cash (paid) received in settlement of derivative contracts	(46,311)	47,599
Stock-based compensation	10,621	7,665
Deferred income taxes	(343)	112
Amortization of deferred financing costs	581	241
Changes in assets and liabilities:
(Increase) decrease in accounts receivable	(12,238)	12,102
(Increase) decrease in prepaid expenses and other current assets	900	(264)
Increase (decrease) in accounts payable and accrued expenses	6,090	1,976
Increase (decrease) in revenues and royalties payable	2,556	(7,768)
Increase (decrease) in advances	(2,015)	(11,412)
Net cash provided by operating activities	147,310	104,716
Cash flows from investing activities:
Acquisition of oil and gas properties, net of cash acquired	(240,431)	0
Additions to oil and gas properties	(65,074)	(72,869)
Additions to office and other equipment	(886)	(111)
Proceeds from sales of oil and gas properties	975	409
Net cash used in investing activities	(305,416)	(72,571)
Cash flows from financing activities:
Proceeds from borrowings	503,734	93,923
Repayments of borrowings	(340,482)	(133,923)
Cash paid related to the exchange and cancellation of Class A Common Stock	(3,420)	(531)
Cash paid for finance leases	(70)	(125)
Deferred financing costs	(2,709)	0
Net cash provided by (used in) financing activities	157,053	(40,656)
Net decrease in cash	(1,053)	(8,511)
Cash at beginning of period	1,494	13,822
Cash at end of period	441	5,311
Cash paid for:
Interest	7,126	3,613
Income taxes	687	0
Non-cash investing and financing activities:
Accrued capital expenditures	18,971	2,213
Asset retirement obligations	242	44
IRM Acquisition
Non-cash investing and financing activities:
Class A Common Stock issued in IRM Acquisition	76,572	0
Tracker/Sequel Acquisition
Non-cash investing and financing activities:
Class A Common Stock issued in IRM Acquisition	$ 61,814	$ 0

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2021
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 Texas. 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 2020 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. Any such adjustments are of a normal, recurring nature. The Company’s Condensed Consolidated Balance Sheet at December 31, 2020 is derived from the audited Consolidated Financial Statements at that date. Recently Issued Accounting Standards Income Taxes - In December 2019, the FASB issued an update that simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020 and early adoption is permitted. The Company adopted the update effective January 1, 2021 and the impact was not material to the Consolidated Financial Statements. Reference Rate Reform - In March 2020, the FASB issued an update that provides optional guidance for a limited period of time to ease the transition from LIBOR to an alternative reference rate. The ASU intends to address certain concerns relating to accounting for contract modifications and hedge accounting. These optional expedients and exceptions to applying GAAP, assuming certain criteria are met, are allowed through December 31, 2022. The Company is currently evaluating the provisions of this update and has not yet determined whether it will elect the optional expedients. The Company does not expect the transition to an alternative rate to have a material impact on its business, operations or liquidity.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements FASB Accounting Standards Codification (“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 nine months ended September 30, 2021. Fair Value on a Recurring Basis Derivative Financial Instruments Derivative financial instruments are carried at fair value and measured on a recurring basis. The derivative financial instruments consist of swaps and costless collars for crude oil and natural gas and interest rate swaps. The Company’s commodity price hedges and interest rate swaps are valued based on discounted future cash flow models that are primarily based on published forward commodity price curves and published LIBOR forward curves; thus, these inputs are designated as Level 2 within the valuation hierarchy. The fair values of derivative instruments in asset positions include measures of counterparty nonperformance risk, and the fair values of derivative instruments in liability positions include measures of the Company’s nonperformance risk. These measurements were not material to the Condensed Consolidated Financial Statements. Share-based Compensation Liability Certain of our performance-based stock awards (“PSUs”) may be payable in cash. The Company classifies the awards that may be settled in cash as liability awards. These awards are valued quarterly utilizing the Monte Carlo Simulation pricing model, which calculates multiple potential outcomes for an award and establishes grant date fair value based on the most likely outcome. The inputs for the Monte Carlo model are designated as Level 2 within the valuation hierarchy. The share-based compensation liability related to the PSU liability awards is included in Other noncurrent liabilities in the Condensed Consolidated Balance Sheet as of September 30, 2021. The following table summarizes the fair value of the Company’s financial assets and liabilities, by level within the fair-value hierarchy (in thousands) : September 30, 2021 Level 1 Level 2 Level 3 Total Financial assets Derivative asset - current $ — $ 17 $ — $ 17 Derivative asset - noncurrent — 453 — 453 Total financial assets $ — $ 470 $ — $ 470 Financial liabilities Derivative liability - current $ — $ 67,575 $ — $ 67,575 Derivative liability - noncurrent — 7,730 — 7,730 Share-based compensation liability - noncurrent — 3,680 — 3,680 Total financial liabilities $ — $ 78,985 $ — $ 78,985 December 31, 2020 Financial assets Derivative asset - current $ — $ 7,509 $ — $ 7,509 Derivative asset - noncurrent — 396 — 396 Total financial assets $ — $ 7,905 $ — $ 7,905 Financial liabilities Derivative liability - current $ — $ 1,135 $ — $ 1,135 Derivative liability - noncurrent — 173 — 173 Total financial liabilities $ — $ 1,308 $ — $ 1,308 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, goodwill, business combinations and asset retirement obligations. These assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments if events or changes in certain circumstances indicate that adjustments may be necessary. Due to significant declines in commodity prices and global demand for oil and natural gas products resulting from the COVID-19 pandemic, the Company assessed the fair values of its oil and natural gas properties and goodwill resulting in non-cash impairment charges during the three months ended March 31, 2020. Since then, commodity prices have recovered and no other such triggering events that require further assessment were observed during the nine months ended September 30, 2021. See further discussion in Note 5. Oil and Natural Gas Properties .

Derivative Financial Instrument

Derivative Financial Instruments	9 Months Ended
	Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	Derivative Financial Instruments Commodity Derivative Instruments The Company’s hedging activities primarily 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 and costless collars. Swaps exchange floating price risk in the future for a fixed price at the time of the hedge. Costless collars set both a maximum (sold ceiling) and a minimum (bought floor) future price. 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, 2022. 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 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 September 30, 2021: Price Swaps Period Commodity Volume Weighted Average Price Q4 2021 Crude Oil 941,475 $ 50.63 Q1 - Q4 2022 Crude Oil 2,462,250 $ 56.31 Q4 2021 Crude Oil Basis Swap (1) 757,475 $ 0.80 Q4 2021 Crude Oil Roll Swap (2) 228,475 $ (0.27) Q1 - Q4 2022 Crude Oil Basis Swap (1) 2,007,500 $ 0.68 Q4 2021 Natural Gas 2,576,000 $ 2.87 Q1 - Q4 2022 Natural Gas 4,295,000 $ 2.92 Q4 2021 Natural Gas Basis Swap (3) 2,698,000 $ (0.29) Q1 - Q4 2022 Natural Gas Basis Swap (3) 9,100,000 $ (0.26) (1) The basis differential price is between WTI Midland Crude and the WTI NYMEX. (2) The swap is between WTI Roll and the WTI NYMEX. (3) The basis differential price is between W. Texas (WAHA) and the Henry Hub NYMEX. Costless Collars Period Commodity Volume Sold Ceiling Bought Floor Q1 - Q4 2022 Crude Oil Costless Collar 365,000 $ 68.75 $ 55.00 Q4 2021 Natural Gas Costless Collar 122,000 $ 4.10 $ 3.50 Q1 - Q4 2022 Natural Gas Costless Collar 2,905,000 $ 4.00 $ 3.06 Interest Rate Swaps At times, the Company’s hedging activities include the use of interest rate swaps entered into in order to manage cash flow variability resulting from changes in interest rates. These derivative instruments are not accounted for under hedge accounting. The Company had the following interest rate swaps as of September 30, 2021: Effective Dates Notional Amount Fixed Rate May 5, 2020 to May 5, 2022 $125,000,000 0.286 % May 5, 2022 to May 5, 2023 $100,000,000 0.286 % May 5, 2023 to May 7, 2024 $75,000,000 0.286 % 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) : September 30, 2021 December 31, 2020 Derivatives not Balance Sheet Location Gross Gross Net Gross Gross Net Commodity contracts Derivative asset - current $ 1,340 $ (1,323) $ 17 $ 11,071 $ (3,562) $ 7,509 Commodity contracts Derivative liability - current $ 68,707 $ (1,323) $ 67,384 $ 4,492 $ (3,562) $ 930 Interest rate swaps Derivative liability - current $ 191 $ — $ 191 $ 205 $ — $ 205 Commodity contracts Derivative asset - noncurrent $ 285 $ (277) $ 8 $ 396 $ — $ 396 Commodity contracts Derivative liability - noncurrent $ 8,007 $ (277) $ 7,730 $ — $ — $ — Interest rate swaps Derivative asset - noncurrent $ 445 — 445 $ — $ — $ — Interest rate swaps Derivative liability - noncurrent $ — $ — $ — $ 173 $ — $ 173 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 and Condensed Consolidated Statements of Cash Flows (in thousands) : Derivatives not designated as hedging contracts under ASC Topic 815 Three Months Ended Nine Months Ended Statement of Cash Flows Location Statement of Operations Location 2021 2020 2021 2020 Unrealized (loss) gain Not separately presented Not separately presented $ (12,244) $ (14,543) $ (71,255) $ 25,466 Realized (loss) gain Operating portion of net cash (paid) received in settlement of derivative contracts Not separately presented (20,884) 8,503 (46,311) 47,599 Total (loss) gain on derivative contracts, net (Loss) gain on derivative contracts, net $ (33,128) $ (6,040) $ (117,566) $ 73,065 Included in Accounts receivable under the subheading of Joint interest billings and other in the Condensed Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020 are $0.01 million and $2.3 million, respectively, related to commodity hedge contracts settled as of that date for which the cash has not been received.

Acquisitions

Acquisitions	9 Months Ended
	Sep. 30, 2021
Business Combination and Asset Acquisition [Abstract]
Acquisitions	Acquisitions IRM Acquisition As part of the execution of its growth strategy to further increase its scale, on January 7, 2021, the Company completed the acquisition (the “IRM Acquisition”) of all of the issued and outstanding limited liability company interests in Independence Resources Management, LLC (“IRM”) and certain wholly owned subsidiaries for consideration consisting of the following: (i) net cash of approximately $140.4 million (the “Cash Consideration”) and (ii) 12,719,594 shares of the Company’s Class A common stock, $0.001 par value per share (“Class A Common Stock”). The fair value of each share of Class A Common Stock was determined using the closing price of $6.02 per share on January 7, 2021. The purchase agreement contains customary representations and warranties for transactions of this nature. The Company has obtained representation and warranty insurance to provide coverage in the event of certain breaches of representations and warranties of the seller contained in the purchase agreement, which will be subject to various exclusions, deductibles and other terms and conditions set forth therein. The IRM Acquisition has been accounted for as a business combination using the acquisition method of accounting, with Earthstone identified as the acquirer. The preliminary allocation of the total purchase price in the IRM Acquisition is based upon management’s estimates of and assumptions related to the fair value of assets acquired and liabilities assumed. Although the purchase price allocation is substantially complete as of the date of this filing, there may be further adjustments to the Company’s estimates of the acquired oil and gas properties resulting in changes to the purchase price allocation. These amounts will be finalized no later than one year from the acquisition date. The consideration transferred, fair value of assets acquired and liabilities assumed by Earthstone were recorded as follows (in thousands, except share amounts and stock price): Consideration: Shares of Earthstone Class A Common Stock issued 12,719,594 Earthstone Class A Common Stock price as of January 7, 2021 $ 6.02 Class A Common Stock consideration 76,572 Cash consideration (1) 140,366 Total consideration transferred $ 216,938 Fair value of assets acquired: Cash $ 4,763 Other current assets 11,524 Oil and gas properties 226,178 Other non-current assets 252 Amount attributable to assets acquired $ 242,717 Fair value of liabilities assumed: Derivative liability $ 10,177 Other current liabilities 5,314 Asset retirement obligation - noncurrent 10,288 Amount attributable to liabilities assumed $ 25,779 Tracker/Sequel Acquisitions On March 31, 2021, Earthstone, EEH, Tracker Resource Development III, LLC, a Delaware limited liability company (“Tracker”), and TRD III Royalty Holdings (TX), LP, a Delaware limited partnership (“RoyaltyCo” and collectively with Tracker, the “Seller”), entered into a purchase and sale agreement (the “Tracker Agreement”), which provided that EEH would acquire (the “Tracker Acquisition”) interests in oil and gas leases and related property of Tracker located in Irion County, Texas (the “Tracker Assets”). Also on March 31, 2021, Earthstone, EEH, SEG-TRD LLC, a Delaware limited liability company (“SEG-I”), and SEG-TRD II LLC, a Delaware limited liability company (“SEG-II” and collectively with SEG-I, “Sequel”) entered into a purchase and sale agreement (the “Sequel Agreement” and collectively with the Tracker Agreement, the “Tracker/Sequel Purchase Agreements”), which provided that EEH would acquire (the “Sequel Acquisition” and collectively with the Tracker Acquisition, the “Tracker/Sequel Acquisitions”) certain well-bore interests and related equipment (the “Sequel Assets”). On July 20, 2021, Earthstone, EEH and the Seller consummated the transactions contemplated in the Tracker Agreement. At the closing of the Tracker Agreement, among other things, EEH acquired the Tracker Assets for aggregate consideration consisting of: (i) $22.5 million in cash, net of preliminary and customary purchase price adjustments that remains subject to final post-closing settlement between EEH and the Seller, and (ii) 4.7 million shares of Class A Common Stock. Also, on July 20, 2021, Earthstone, EEH and Sequel consummated the transactions contemplated in the Sequel Agreement. At the closing of the Sequel Agreement, among other things, EEH acquired the Sequel Assets for aggregate consideration consisting of: (i) $45.3 million in cash, net of preliminary and customary purchase price adjustments that remains subject to final post-closing settlement between EEH and the Seller, and (ii) 1.5 million shares of Class A Common Stock valued at $9.97 per share at the closing of the transaction. The Significant Shareholder, as described below, owned approximately 49% of Tracker as of the closing of the Tracker Acquisition. See Note 12. Related Party Transactions for further discussion. The Tracker/Sequel Acquisitions have been accounted for as asset acquisitions in accordance with ASC Topic 805, Business Combinations (referred to as “ASC 805”). The preliminary allocation of the total purchase price in the Tracker/Sequel Acquisitions is based upon management’s estimates of and assumptions related to the relative fair value of assets acquired and liabilities assumed. Although the purchase price allocation is substantially complete as of the date of this filing, there may be further adjustments to the Company’s oil and natural gas properties. These amounts will be finalized no later than one year from the acquisition date. The consideration transferred, fair value of assets acquired and liabilities assumed by Earthstone were recorded as follows (in thousands, except share amounts and stock price): Total Consideration: Shares of Earthstone Class A Common Stock issued 6,200,000 Earthstone Class A Common Stock price as of July 20, 2021 $ 9.97 Class A Common Stock consideration 61,814 Cash consideration (1) 59,569 Direct transaction costs (2) 1,550 Total consideration transferred $ 122,933 Fair value of assets acquired: Oil and gas properties $ 123,533 Amount attributable to assets acquired $ 123,533 Fair value of liabilities assumed: Noncurrent liabilities - ARO 600 Amount attributable to liabilities assumed $ 600 (1) Includes customary purchase price adjustments. (2) Represents $1.6 million of transaction costs associated with the Tracker Acquisition and the Sequel Acquisition that have been capitalized in accordance with ASC 805-50. The following unaudited supplemental pro forma condensed results of operations present consolidated information as though the IRM Acquisition and Tracker/Sequel Acquisitions had been completed as of January 1, 2020. The unaudited supplemental pro forma financial information was derived from the historical consolidated and combined statements of operations for IRM, Tracker, Sequel and Earthstone and adjusted to include depletion expense applied to the adjusted basis of the properties acquired. 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 Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Revenue $ 115,331 $ 79,345 $ 316,932 $ 215,504 Income (loss) before taxes 22,647 (2,656) 17,660 49,461 Net income (loss) 22,196 (2,840) 18,003 48,962 Less: Net income (loss) attributable to noncontrolling interest 9,921 (1,182) 7,782 20,372 Net income (loss) attributable to Earthstone Energy, Inc. 12,275 (1,658) 10,222 28,589 Pro forma net income (loss) per common share attributable to Earthstone Energy, Inc.: Basic $ 0.25 $ (0.03) $ 0.23 $ 0.59 Diluted $ 0.23 $ (0.03) $ 0.23 $ 0.59 The Company has included in its Condensed Consolidated Statements of Operations, revenues of $20.8 million and operating expenses of $9.6 million for the three months ended September 30, 2021 and revenues of $65.1 million and operating expenses of $33.7 million for the period January 7, 2021 to September 30, 2021 related to the IRM Acquisition. During the three and nine months ended September 30, 2021, the Company recorded $0.1 million and $3.9 million, respectively, of legal and professional fees, and employee severance costs related to the IRM Acquisition which are included in Transaction costs in the Condensed Consolidated Statements of Operations. Additionally, the Company has included in its Condensed Consolidated Statements of Operations, revenues of $16.6 million and operating expenses of $5.6 million for the period July 20, 2021 to September 30, 2021 related to the Tracker/Sequel Acquisitions. The fair value measurements of assets acquired and liabilities assumed are based on inputs that are not observable in the market and therefore represent Level 3 inputs. The fair value of oil and gas properties and asset retirement obligations were measured using the discounted cash flow technique of valuation. Significant inputs to the valuation of oil and gas properties include estimates of: (i) reserves, (ii) future operating and development costs, (iii) future commodity prices, (iv) future plugging and abandonment costs, (v) estimated future cash flows, and (vi) a market-based weighted average cost of capital rate. These inputs require significant judgments and estimates and are the most sensitive and subject to change. Eagle Ford Acquisitions In May and June 2021, the Company completed acquisitions of working interests in certain assets it operates located in southern Gonzales County, Texas (collectively, the “Eagle Ford Acquisitions”) from four separate sellers. The aggregate purchase price of the Eagle Ford Acquisitions was approximately $48.0 million. One of the four separate sellers was a related party. See Note 12. Related Party Transactions for further discussion. The Eagle Ford Acquisitions have been accounted for as asset acquisitions in accordance with ASC 805. The preliminary allocation of each purchase was based upon management’s estimates of and assumptions related to the relative fair value of assets acquired and liabilities assumed. Although the purchase price allocation is substantially complete as of the date of this filing, there may be further adjustments to the Company’s oil and natural gas properties. These amounts will be finalized no later than one year from the acquisition date. Foreland Acquisition On September 30, 2021, Earthstone and EEH, as buyer, and Foreland Investments LP, a Delaware limited partnership (“Foreland”), as seller, entered into a Purchase and Sale Agreement (the “Foreland Purchase Agreement”). Also, on September 30, 2021, Earthstone and EEH, as buyer, and BCC-Foreland LLC, a Delaware limited liability company (“BCC”), as seller, entered into a Purchase and Sale Agreement (the “BCC Purchase Agreement”)(collectively the “Foreland Acquisition”), subject to customary purchase price adjustments with an effective date of July 1, 2021. A $6.1 million deposit related to the Foreland Acquisition became payable on September 30, 2021. As such, $6.1 million was recorded in both Other noncurrent assets and Accrued expenses in the Condensed Consolidated Balance Sheet as of September 30, 2021. On November 2, 2021, the Foreland Acquisition was consummated. Among other things, EEH acquired interests in oil and gas leases and related property located in Irion County and Crockett County, Texas, including certain well-bore interests and related equipment held under a joint development agreement, for a collective purchase price of $49.2 million in cash, net of preliminary and customary purchase price adjustments and remains subject to final post-closing settlement between EEH and Foreland or BCC, as applicable, and 2,611,111 shares of Class A Common Stock valued at $10.77 per share at the closing of the transaction.

Oil and Natural Gas Properties

Oil and Natural Gas Properties	9 Months Ended
	Sep. 30, 2021
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 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 and nine months ended September 30, 2021, depletion expense for oil and gas producing property and related equipment was $26.9 million and $77.0 million, respectively. For the three and nine months ended September 30, 2020, depletion expense for oil and gas producing property and related equipment was $28.4 million and $75.7 million, respectively. Our accrual basis capital expenditures for the three and nine months ended September 30, 2021 were as follows ( in thousands ): Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Drilling and completions $ 42,179 $ 74,346 Leasehold costs 1,990 2,444 Total capital expenditures $ 44,169 $ 76,790 Proved Properties Proved oil and natural gas properties are reviewed for impairment on a nonrecurring basis. 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. Unproved oil and gas leases are generally for a primary term of three 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 No impairments were recorded to the Company's oil and natural gas properties during the three and nine months ended September 30, 2021. During the three months ended September 30, 2020, the Company recorded non-cash impairment charges of $2.1 million to its oil and natural gas properties due to acreage expirations. During the nine months ended September 30, 2020, as a result of the decline in crude oil price futures at the time, the Company recorded the following non-cash impairment charges: (In thousands) Eagle Ford Trend Midland Basin Corporate Total Proved properties $ 25,252 $ — $ — $ 25,252 Unproved properties 11,311 — — 11,311 Acreage expirations (1) 450 7,915 — 8,365 Goodwill — — 17,620 17,620 $ 37,013 $ 7,915 $ 17,620 $ 62,548 (1) Impairments in unproved properties resulting from acreage deemed expired (not planned to be renewed).

Noncontrolling Interest

Noncontrolling Interest	9 Months Ended
	Sep. 30, 2021
Noncontrolling Interest [Abstract]
Noncontrolling Interest	Noncontrolling InterestEarthstone 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 (loss) attributable to noncontrolling interest in the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2021 and 2020 represents the portion of net income (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 Sheets as of September 30, 2021 and December 31, 2020 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 nine months ended September 30, 2021: EEH Units Held % EEH Units Held % Total EEH As of December 31, 2020 30,343,421 46.4 % 35,009,371 53.6 % 65,352,792 EEH Units issued in connection with the IRM Acquisition 12,719,594 — 12,719,594 EEH Units issued in connection with the Tracker/Sequel Acquisitions 6,200,000 — 6,200,000 EEH Units and Class B Common Stock converted to Class A Common Stock 655,376 (655,376) — EEH Units issued in connection with the vesting of restricted stock units and performance-based units 773,666 — 773,666 As of September 30, 2021 50,692,057 59.6 % 34,353,995 40.4 % 85,046,052

Net Income (Loss) Per Common Sh

Net Income (Loss) Per Common Share	9 Months Ended
	Sep. 30, 2021
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. 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 Nine Months Ended (In thousands, except per share amounts) 2021 2020 2021 2020 Net income (loss) attributable to Earthstone Energy, Inc. $ 10,418 $ (5,445) $ (4,286) $ (5,076) Net income (loss) per common share attributable to Earthstone Energy, Inc.: Basic $ 0.21 $ (0.18) $ (0.09) $ (0.17) Diluted $ 0.20 $ (0.18) $ (0.09) $ (0.17) Weighted average common shares outstanding Basic 49,243,185 30,073,635 45,406,952 29,810,705 Add potentially dilutive securities: Unvested restricted stock units (1) 525,475 — — — Unvested performance units (1) 2,894,282 — — — Diluted weighted average common shares outstanding 52,662,942 30,073,635 45,406,952 29,810,705 (1) For the three months ended September 30, 2021, the 1,099,800 performance units granted on January 27, 2021 were excluded due to an assumed settlement in cash and the liability treatment described in Note 9. Stock-Based Compensation . For the nine months ended September 30, 2021, there was no dilutive effect related to unvested restricted stock units or performance units due to the loss for the period. For the three and nine months ended September 30, 2020, there was no dilutive effect related to unvested restricted stock units or performance units due to the loss for the period. The Class B common stock, $0.001 par value per share of Earthstone (the “Class B Common Stock”), has been excluded, as its conversion would eliminate noncontrolling interest and net income attributable to noncontrolling interest of $8.4 million for the three months ended September 30, 2021 and net loss attributable to noncontrolling interest of $3.3 million for the nine months ended September 30, 2021 would be added back to Net income (loss) attributable to Earthstone Energy, Inc. for the periods then ended, having no dilutive effect on Net income (loss) per common share attributable to Earthstone Energy, Inc. The Class B Common Stock has been excluded, as its conversion would eliminate noncontrolling interest and net loss attributable to noncontrolling interest of $6.4 million for the three months ended September 30, 2020 and net income attributable to noncontrolling interest of $6.0 million for the nine months ended September 30, 2020 would be added back to Net (loss) income attributable to Earthstone Energy, Inc. for the periods then ended, having no dilutive effect on Net (loss) income per common share attributable to Earthstone Energy, Inc.

Common Stock

Common Stock	9 Months Ended
	Sep. 30, 2021
Equity [Abstract]
Common Stock	Common Stock Class A Common Stock At September 30, 2021 and December 31, 2020, there were 50,692,057 and 30,343,421 shares of Class A Common Stock issued and outstanding, respectively. In connection with the IRM Acquisition, on January 7, 2021, Earthstone issued 12,719,594 shares of Class A Common Stock valued at approximately $76.6 million on that date. Additionally, in connection with the Tracker/Sequel Acquisitions, on July 20, 2021, Earthstone issued 6,200,000 shares of Class A Common Stock valued at approximately $61.8 million on that date. During the three and nine months ended September 30, 2021, as a result of the vesting and settlement of performance units and restricted stock units under the Earthstone Energy, Inc. Amended and Restated 2014 Long-Term Incentive Plan, as amended (the “2014 Plan”), Earthstone 220,219 and 1,162,879 shares, respectively, of Class A Common Stock, of which 65,106 and 389,213 shares, respectively, of Class A Common Stock were retained as treasury stock and canceled to satisfy the related employee income tax liability. For further discussion, see Note 9. Stock-Based Compensation. During the three and nine months ended September 30, 2020, as a result of the vesting and settlement of restricted stock units under the 2014 Plan, Earthstone issued 195,344 and 726,082 shares, respectively, of Class A Common Stock, of which 54,268 and 187,773 shares, respectively, of Class A Common Stock were retained as treasury stock and canceled to satisfy the related employee income tax liability. Additionally, as discussed below, shares of Class A Common Stock were issued as the result of conversions of Class B Common Stock. Class B Common Stock At September 30, 2021 and December 31, 2020, there were 34,353,995 and 35,009,371 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 nine months ended September 30, 2021, 43,882 and 655,376 shares, respectively, of Class B Common Stock and EEH Units were exchanged for an equal number of shares of Class A Common Stock. During the three and nine months ended September 30, 2020, 49,316 and 251,309 shares, respectively, 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	9 Months Ended
	Sep. 30, 2021
Share-based Payment Arrangement [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”). As of September 30, 2021, the maximum number of shares of Class A Common Stock that may be issued under the 2014 Plan was 12.0 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. The Company determines 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 Sheets. The table below summarizes RSU award activity for the nine months ended September 30, 2021: Shares Weighted-Average Grant Date Fair Value Unvested RSUs at December 31, 2020 1,050,908 $ 5.55 Granted 553,100 $ 5.38 Forfeited (15,333) $ 5.13 Vested (707,879) $ 5.75 Unvested RSUs at September 30, 2021 880,796 $ 5.30 As of September 30, 2021, there was $4.6 million of unrecognized compensation expense related to the RSU awards which will be recognized over a weighted average period of 0.87 years. For the three and nine months ended September 30, 2021, Stock-based compensation related to RSUs was $1.2 million and $3.9 million, respectively. For the three and nine months ended September 30, 2020, Stock-based compensation related to RSUs was $1.2 million and $4.2 million, respectively. Performance Units The table below summarizes PSU activity for the nine months ended September 30, 2021: Shares Weighted-Average Grant Date Fair Value Unvested PSUs at December 31, 2020 1,879,425 $ 7.65 Granted 1,099,800 $ 10.85 Vested (227,500) $ 13.75 Unvested PSUs at September 30, 2021 2,751,725 $ 8.42 On January 27, 2021, the Board of Directors of Earthstone (the “Board”) granted 1,099,800 PSUs (the “2021 PSUs”) to certain officers pursuant to the 2014 Plan (the “2021 Grant”). The 2021 PSUs are payable in cash or shares of Class A Common Stock upon the achievement by the Company over a period commencing on January 1, 2021 and ending on December 31, 2023 (the “Performance Period”) of certain performance criteria established by the Board. The Company classifies these awards that will be settled in cash as liability awards. All previous PSU grants will be settled in shares and are classified as equity awards. The 2021 PSUs are eligible to be earned based on the annualized Total Shareholder Return (“TSR”) of the Class A Common Stock during a three-year period beginning on February 1, 2021. Between 0x to 2.0x of the Performance Units are eligible to be earned based on Earthstone achieving an annualized TSR based on the following pre-established goals: Earthstone’s Annualized TSR TSR Multiplier 20.5% or greater 2 14.5% 1 7.7% 0.5 Less than 7.7% 0 The Company accounts for these awards as market-based awards which are valued quarterly utilizing the Monte Carlo Simulation pricing model, which calculates multiple potential outcomes for an award and establishes grant date fair value based on the most likely outcome. For the 2021 PSUs, assuming a risk-free rate of 0.3% and volatility of 86.0%, the Company calculated the weighted average grant date fair value per PSU to be $10.85. Based on the fair value of the 2021 PSUs, the Company recorded stock-based compensation expense of $0.7 million and $3.7 million during the three and nine months ended September 30, 2021, respectively. A corresponding liability of $3.7 million related to the 2021 PSUs is included in Other noncurrent liabilities in the Condensed Consolidated Balance Sheet as of September 30, 2021. On February 28, 2018, the Board granted 252,500 PSUs to certain named executive officers pursuant to the 2014 Plan. The PSUs were 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 of performance criteria established by the Board. On March 18, 2021, the Company settled the remaining 227,500 PSUs, net of forfeitures, based on the achievement of the 200% target, resulting in the issuance of 455,000 shares of Class A Common Stock. As of September 30, 2021, there was $15.3 million of unrecognized compensation expense related to all PSU awards which will be amortized over a weighted average period of 1.05 years. For the three and nine months ended September 30, 2021, Stock-based compensation related to all PSUs was approximately $1.7 million and $6.7 million, respectively. For the three and nine months ended September 30, 2020, Stock-based compensation related to all PSUs was approximately $1.2 million and $3.5 million, respectively.

Long-Term Debt

Long-Term Debt	9 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
Long-term debt	Long-Term Debt Credit Facility On November 21, 2019, Earthstone, EEH (the “Borrower”), Wells Fargo Bank, National Association, as Administrative Agent and Issuing Bank (“Wells Fargo”), Royal Bank of Canada, as Syndication Agent, BOKF, NA dba Bank of Texas (“BOKF”) as Issuing Bank with respect to Existing Letters of Credit, SunTrust Bank, as Documentation Agent, and the lenders party thereto (the “Lenders”) entered into a credit agreement (the “Credit Facility”), which replaced the prior credit facility, which was terminated on November 21, 2019. On December 17, 2020, Earthstone, EEH, as Borrower, Wells Fargo, as Administrative Agent, the guarantors party thereto, and the lenders party thereto (the “Lenders”) entered into an amendment (the “Second Amendment”) to the credit agreement dated November 21, 2019, by and among EEH, as Borrower, Earthstone, as Parent, Wells Fargo, as Administrative Agent and Issuing Bank, BOKF, NA dba Bank of Texas, as Issuing Bank with respect to Existing Letters of Credit, Royal Bank of Canada, as Syndication Agent, Truist Bank, as successor by merger to SunTrust Bank, as Documentation Agent, and the Lenders party thereto (collectively, the “Parties”) to the Credit Agreement. The Second Amendment was effective upon the closing of the IRM Acquisition described in Note 4. Acquisitions . Among other things, the Second Amendment (i) joined certain financial institutions as additional lenders, increased the borrowing base from $240.0 million to $360.0 million, (ii) increased the interest rate on outstanding borrowings; and (iii) adjusted some of the financial covenants. On April 20, 2021, the Parties entered into an amendment (the “Third Amendment”) to the Credit Agreement under which the borrowing base increased from $360 million to $475 million in connection with its regularly scheduled redetermination. Further, the Third Amendment provided for an increase in the borrowing base from $475 million to $550 million which became effective on July 20, 2021 upon closing of the Tracker/Sequel Purchase Agreements described in Note 4. Acquisitions . On September 17, 2021, Earthstone, EEH, as Borrower, Wells Fargo as Administrative Agent and Issuing Bank, the lenders party thereto (the “Lenders”) and the guarantors party thereto entered into an amendment (the “Fourth Amendment”) to the Credit Agreement. Among other things, the Fourth Amendment increased the borrowing base from $550 million to $650 million in connection with its regularly scheduled semi-annual redetermination, added provisions to provide for the eventual replacement of LIBOR as a benchmark interest rate, made certain changes to the lenders under the Credit Agreement, and made certain other administrative changes to the Credit Agreement. The next regularly scheduled redetermination of the borrowing base is expected to occur on or around May 1, 2022. Subsequent redeterminations are expected to occur on or about each November 1st and May 1st thereafter. The amounts borrowed under the Credit Facility bear annual interest rates at either (a) the adjusted LIBO Rate (as customarily defined) (the “Adjusted LIBO Rate”) plus 2.50% to 3.75% or (b) the sum of (i) the greatest of (A) the prime rate of Wells Fargo, (B) the federal funds rate plus ½ of 1.0%, and (C) the Adjusted LIBO Rate for an interest rate period of one month plus 1.0%, (ii) plus 1.50% to 2.75%, depending on the amount borrowed under the Credit Facility. Principal amounts outstanding under the Credit Facility are due and payable in full at maturity on November 21, 2024. All of the obligations under the Credit Facility, and the guarantees of those obligations, are secured by substantially all of EEH’s assets. Additional payments due under the Credit Facility include paying a commitment fee of 0.375% to 0.50% per year, depending on the amount borrowed under the Credit Facility, to the Lenders in respect of the unutilized commitments thereunder. EEH is also required to pay customary letter of credit fees. Effective May 2020, the Company entered into certain interest rate swaps, exchanging the LIBO Rate for a fixed rate of 0.286% (the “Swap”). The initial notional amount of the Swap is $125 million through May 2022 and decreases to $100 million through May 2023 and $75 million through May 2024. The Credit Facility 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, pay dividends and 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 Credit Facility requires EEH to maintain the following financial covenants: a current ratio, (as such term is defined in the Credit Agreement) of not less than 1.0 to 1.0 and a consolidated leverage ratio of not greater than 3.5 to 1.0. Consolidated 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 to (ii) EBITDAX for the applicable period, which was calculated as EBITDAX for the four consecutive fiscal quarters ending on such date. The term “EBITDAX” means, for any period, the sum of consolidated net income (loss) for such period plus (a) the following expenses or charges to the extent deducted from consolidated net income (loss) in such period: (i) interest, (ii) taxes, (iii) depreciation, (iv) depletion, (v) amortization, (vi) certain distributions to employees related to the stock compensation, (vii) certain transaction related expenses, (viii) reimbursed indemnification expenses related to certain dispositions and investments, (ix) non-cash extraordinary, usual, or nonrecurring expenses or losses, (x) other non-cash charges and minus (b) to the extent included in consolidated net income (loss) in such period: (i) non-cash income, (ii) gains on asset dispositions, disposals and abandonments outside of the ordinary course of business and (iii) to the extent not otherwise deducted from consolidated net income (loss), the aggregate amount of any pass-through cash distributions received by Borrower during such period in an amount equal to the aggregate amount of pass-through cash distributions actually made by Borrower during such period. The Credit Facility 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 a change in control. 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 September 30, 2021, EEH was in compliance with the covenants under the Credit Facility. As of September 30, 2021, $278.3 million of borrowings were outstanding, bearing annual interest of 3.153%, resulting in an additional $371.7 million of borrowing base availability under the Credit Facility. At December 31, 2020, there were $115.0 million of borrowings outstanding under the Credit Facility. For the nine months ended September 30, 2021, under the Credit Facility, the Company had borrowings of $503.7 million and $340.5 million in repayments of borrowings. For the three and nine months ended September 30, 2021, interest on borrowings under the Credit Facility averaged 3.66% and 3.47% per annum, respectively, which excluded commitment fees of $0.2 million and $0.6 million, respectively, and amortization of deferred financing costs of $0.2 million and $0.6 million, respectively. For the three and nine months ended September 30, 2020, interest on borrowings under the Credit Facility averaged 2.48% and 2.89% per annum, respectively, which excluded commitment fees of $0.2 million and $0.5 million, respectively, and amortization of deferred financing costs of $0.1 million and $0.2 million, respectively. 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. These capitalized costs are included in Other noncurrent assets in the Condensed Consolidated Balance Sheets. During the three and nine months ended September 30, 2021, the Company capitalized $1.0 million and $2.8 million, respectively, of costs associated with the Credit Facility. No costs associated with the Credit Facility were capitalized during the three and nine months ended September 30, 2020.

Asset Retirement Obligations

Asset Retirement Obligations	9 Months Ended
	Sep. 30, 2021
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 nine months ended September 30, (in thousands) : 2021 Beginning asset retirement obligations $ 3,027 Liabilities incurred 103 Liabilities settled (103) Acquisitions 11,466 Accretion expense 916 Divestitures (41) Revision of estimates 140 Ending asset retirement obligations $ 15,508

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2021
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. The Audit Committee of the Board of Directors of Earthstone independently reviews and approves all related party transactions. Earthstone has two significant shareholders that consist of various investment funds managed by each of the two private equity firms who may manage other investments in entities with which the Company interacts in the normal course of business. On February 12, 2020, the Company sold certain of its interests in oil and natural gas leases and wells in an arm’s length transaction to a portfolio company of one of the aforementioned shareholder (not under common control) (the “Significant Shareholder”) for cash consideration of approximately $0.4 million. In connection with the Olenik v. Lodzinski et al. lawsuit described below in Note 13. Commitments and Contingencies , the Significant Shareholder was also named in the lawsuit. As a result of a settlement agreement relating to the lawsuit, the Company agreed with its insurance carrier regarding an allocation of defense costs and settlement contributions above its deductible for all the parties named in the lawsuit. In connection with the Court approved settlement, the Significant Shareholder was billed approximately $1.1 million in fiscal 2020 and all amounts have been received. As discussed in Note 4. Acquisitions , on March 31, 2021, the Company entered into the Tracker/Sequel Purchase Agreements. The Tracker/Sequel Acquisitions were consummated on July 20, 2021, whereby the Company acquired the Tracker Assets for a purchase price of $22.5 million in cash and 4.7 million shares of Earthstone’s Class A Common Stock. The Significant Shareholder owned approximately 49% of Tracker as of the closing of the Tracker Acquisition. A majority of the non-affiliated stockholders of Earthstone approved the issuance of 6.2 million shares of Class A Common Stock in connection with the closing of the Tracker/Sequel Purchase Agreements at Earthstone’s Annual Meeting of Stockholders held on July 20, 2021. As discussed in Note 4. Acquisitions , during the second quarter of 2021, the Company completed the Eagle Ford Acquisitions for a purchase price of approximately $48.0 million in cash. The Significant Shareholder controlled one of the four sellers. After participating in a competitive sales process, the Company acquired the aforementioned assets for $8.2 million in cash from that related party entity.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal From time to time, Earthstone and its subsidiaries may be involved in various legal proceedings and claims in the ordinary course of business. Olenik v. Lodzinski et al.: On June 2, 2017, a purported shareholder class and derivative action in the Delaware Court of Chancery was filed against Earthstone’s Chief Executive Officer, along with other members of the Board, EnCap Investments L.P. (“EnCap”), Bold Energy Holdings, LLC (“Bold Holdings”), and Bold Energy III LLC (“Bold”) and Oak Valley Resources, LLC. The complaint alleged that Earthstone’s directors breached their fiduciary duties in connection with the 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, Bold Holdings and Bold. The Plaintiff asserted that the directors negotiated the business combination pursuant to the Bold Contribution Agreement (the “Bold Transaction”) to the detriment of the Earthstone stockholders 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. 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. The Plaintiff filed an appeal with the Delaware Supreme Court. On April 5, 2019, the Delaware Supreme Court affirmed the Delaware Court of Chancery’s dismissal of the proxy disclosure claims but reversed the Delaware Court of Chancery’s dismissal of the other claims, holding that the allegations with respect to those claims were sufficient for pleading purposes. After engaging in extensive pre-trial discovery, the parties entered into a settlement agreement that was approved by the Delaware Court of Chancery on March 31, 2021. The principal terms of the settlement agreement are: (i) a $3.5 million all-in cash settlement payment (the “Fund”) to be funded by defendants and/or their insurers into an escrow account, (ii) a bi-lateral complete and full release of all claims against defendants and plaintiffs, and (iii) 55% of the Fund (the derivative payment) be paid to Earthstone to be used as determined by management, 45% of the Fund (the class payment) be paid to members of the class or current stockholders of Earthstone. Earthstone paid the $3.5 million settlement in April 2021 and the insurance carriers reimbursed their agreed upon allocation of the settlement totaling $2.8 million. In addition, Earthstone has received $1.3 million from the derivative portion of the settlement, which was included as a reduction of Transaction costs in the Condensed Consolidated Statement of Operations for the nine months ended September 30, 2021.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes 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. As of September 30, 2021 and December 31, 2020, a current liability of $0.6 million and $0.6 million, respectively, is included in Other current liabilities in the Condensed Consolidated Balance Sheets. The amounts represent current Texas Margin Tax payable. During the nine months ended September 30, 2021, the Company recorded income tax benefit of approximately $0.3 million which included (1) a deferred income tax benefit for Lynden US of $0.1 million as a result of its share of the distributable loss from EEH, (2) no net income tax benefit for Earthstone as the $0.8 million income tax benefit resulting from its share of the distributable loss from EEH had a full valuation allowance recorded against it as future realization of the net deferred tax asset cannot be assured and (3) deferred income tax benefit of $0.8 million related to the Texas Margin Tax, offset by (4) current income tax expense of $0.6 million related to the Texas Margin Tax. Lynden Corp incurred no material income or loss, or related income tax expense or benefit, for the nine months ended September 30, 2021. During the nine months ended September 30, 2020, the Company recorded income tax expense of approximately $0.1 million which included (1) no income tax expense for Lynden US as a result of its share of the distributable income from EEH, (2) a deferred income tax benefit for Earthstone of $0.8 million as a result of its share of the distributable income from EEH, which was used to reduce the valuation allowance recorded against its deferred tax asset which was previously recorded as future realization of the net deferred tax asset cannot be assured and (3) deferred income tax expense of $0.1 million related to the Texas Margin Tax. Lynden Corp incurred no material income or loss, or related income tax expense or benefit, for the nine months ended September 30, 2020.

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Recently Issued Accounting Standards	Recently Issued Accounting Standards Income Taxes - In December 2019, the FASB issued an update that simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020 and early adoption is permitted. The Company adopted the update effective January 1, 2021 and the impact was not material to the Consolidated Financial Statements. Reference Rate Reform - In March 2020, the FASB issued an update that provides optional guidance for a limited period of time to ease the transition from LIBOR to an alternative reference rate. The ASU intends to address certain concerns relating to accounting for contract modifications and hedge accounting. These optional expedients and exceptions to applying GAAP, assuming certain criteria are met, are allowed through December 31, 2022. The Company is currently evaluating the provisions of this update and has not yet determined whether it will elect the optional expedients. The Company does not expect the transition to an alternative rate to have a material impact on its business, operations or liquidity.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2021
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) : September 30, 2021 Level 1 Level 2 Level 3 Total Financial assets Derivative asset - current $ — $ 17 $ — $ 17 Derivative asset - noncurrent — 453 — 453 Total financial assets $ — $ 470 $ — $ 470 Financial liabilities Derivative liability - current $ — $ 67,575 $ — $ 67,575 Derivative liability - noncurrent — 7,730 — 7,730 Share-based compensation liability - noncurrent — 3,680 — 3,680 Total financial liabilities $ — $ 78,985 $ — $ 78,985 December 31, 2020 Financial assets Derivative asset - current $ — $ 7,509 $ — $ 7,509 Derivative asset - noncurrent — 396 — 396 Total financial assets $ — $ 7,905 $ — $ 7,905 Financial liabilities Derivative liability - current $ — $ 1,135 $ — $ 1,135 Derivative liability - noncurrent — 173 — 173 Total financial liabilities $ — $ 1,308 $ — $ 1,308

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2021
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 September 30, 2021: Price Swaps Period Commodity Volume Weighted Average Price Q4 2021 Crude Oil 941,475 $ 50.63 Q1 - Q4 2022 Crude Oil 2,462,250 $ 56.31 Q4 2021 Crude Oil Basis Swap (1) 757,475 $ 0.80 Q4 2021 Crude Oil Roll Swap (2) 228,475 $ (0.27) Q1 - Q4 2022 Crude Oil Basis Swap (1) 2,007,500 $ 0.68 Q4 2021 Natural Gas 2,576,000 $ 2.87 Q1 - Q4 2022 Natural Gas 4,295,000 $ 2.92 Q4 2021 Natural Gas Basis Swap (3) 2,698,000 $ (0.29) Q1 - Q4 2022 Natural Gas Basis Swap (3) 9,100,000 $ (0.26) (1) The basis differential price is between WTI Midland Crude and the WTI NYMEX. (2) The swap is between WTI Roll and the WTI NYMEX. (3) The basis differential price is between W. Texas (WAHA) and the Henry Hub NYMEX. Costless Collars Period Commodity Volume Sold Ceiling Bought Floor Q1 - Q4 2022 Crude Oil Costless Collar 365,000 $ 68.75 $ 55.00 Q4 2021 Natural Gas Costless Collar 122,000 $ 4.10 $ 3.50 Q1 - Q4 2022 Natural Gas Costless Collar 2,905,000 $ 4.00 $ 3.06
Schedule of Interest Rate Swaps	The Company had the following interest rate swaps as of September 30, 2021: Effective Dates Notional Amount Fixed Rate May 5, 2020 to May 5, 2022 $125,000,000 0.286 % May 5, 2022 to May 5, 2023 $100,000,000 0.286 % May 5, 2023 to May 7, 2024 $75,000,000 0.286 %
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) : September 30, 2021 December 31, 2020 Derivatives not Balance Sheet Location Gross Gross Net Gross Gross Net Commodity contracts Derivative asset - current $ 1,340 $ (1,323) $ 17 $ 11,071 $ (3,562) $ 7,509 Commodity contracts Derivative liability - current $ 68,707 $ (1,323) $ 67,384 $ 4,492 $ (3,562) $ 930 Interest rate swaps Derivative liability - current $ 191 $ — $ 191 $ 205 $ — $ 205 Commodity contracts Derivative asset - noncurrent $ 285 $ (277) $ 8 $ 396 $ — $ 396 Commodity contracts Derivative liability - noncurrent $ 8,007 $ (277) $ 7,730 $ — $ — $ — Interest rate swaps Derivative asset - noncurrent $ 445 — 445 $ — $ — $ — Interest rate swaps Derivative liability - noncurrent $ — $ — $ — $ 173 $ — $ 173
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 and Condensed Consolidated Statements of Cash Flows (in thousands) : Derivatives not designated as hedging contracts under ASC Topic 815 Three Months Ended Nine Months Ended Statement of Cash Flows Location Statement of Operations Location 2021 2020 2021 2020 Unrealized (loss) gain Not separately presented Not separately presented $ (12,244) $ (14,543) $ (71,255) $ 25,466 Realized (loss) gain Operating portion of net cash (paid) received in settlement of derivative contracts Not separately presented (20,884) 8,503 (46,311) 47,599 Total (loss) gain on derivative contracts, net (Loss) gain on derivative contracts, net $ (33,128) $ (6,040) $ (117,566) $ 73,065

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
	Sep. 30, 2021
Business Combination and Asset Acquisition [Abstract]
Schedule of Business Acquisitions, by Acquisition	The consideration transferred, fair value of assets acquired and liabilities assumed by Earthstone were recorded as follows (in thousands, except share amounts and stock price): Consideration: Shares of Earthstone Class A Common Stock issued 12,719,594 Earthstone Class A Common Stock price as of January 7, 2021 $ 6.02 Class A Common Stock consideration 76,572 Cash consideration (1) 140,366 Total consideration transferred $ 216,938 Fair value of assets acquired: Cash $ 4,763 Other current assets 11,524 Oil and gas properties 226,178 Other non-current assets 252 Amount attributable to assets acquired $ 242,717 Fair value of liabilities assumed: Derivative liability $ 10,177 Other current liabilities 5,314 Asset retirement obligation - noncurrent 10,288 Amount attributable to liabilities assumed $ 25,779
Asset Acquisition	The consideration transferred, fair value of assets acquired and liabilities assumed by Earthstone were recorded as follows (in thousands, except share amounts and stock price): Total Consideration: Shares of Earthstone Class A Common Stock issued 6,200,000 Earthstone Class A Common Stock price as of July 20, 2021 $ 9.97 Class A Common Stock consideration 61,814 Cash consideration (1) 59,569 Direct transaction costs (2) 1,550 Total consideration transferred $ 122,933 Fair value of assets acquired: Oil and gas properties $ 123,533 Amount attributable to assets acquired $ 123,533 Fair value of liabilities assumed: Noncurrent liabilities - ARO 600 Amount attributable to liabilities assumed $ 600 (1) Includes customary purchase price adjustments. (2) Represents $1.6 million of transaction costs associated with the Tracker Acquisition and the Sequel Acquisition that have been capitalized in accordance with ASC 805-50.
Business Acquisition, Pro Forma Information	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 Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Revenue $ 115,331 $ 79,345 $ 316,932 $ 215,504 Income (loss) before taxes 22,647 (2,656) 17,660 49,461 Net income (loss) 22,196 (2,840) 18,003 48,962 Less: Net income (loss) attributable to noncontrolling interest 9,921 (1,182) 7,782 20,372 Net income (loss) attributable to Earthstone Energy, Inc. 12,275 (1,658) 10,222 28,589 Pro forma net income (loss) per common share attributable to Earthstone Energy, Inc.: Basic $ 0.25 $ (0.03) $ 0.23 $ 0.59 Diluted $ 0.23 $ (0.03) $ 0.23 $ 0.59

Oil and Natural Gas Properties

Oil and Natural Gas Properties Oil and Natural Gas Properties (Tables)	9 Months Ended
	Sep. 30, 2021
Oil and Gas Exploration and Production Industries Disclosures [Abstract]
Capital Expenditures Of Oil and Gas	Our accrual basis capital expenditures for the three and nine months ended September 30, 2021 were as follows ( in thousands ): Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Drilling and completions $ 42,179 $ 74,346 Leasehold costs 1,990 2,444 Total capital expenditures $ 44,169 $ 76,790
Schedule of Impairments to Oil and Natural Gas Properties	During the nine months ended September 30, 2020, as a result of the decline in crude oil price futures at the time, the Company recorded the following non-cash impairment charges: (In thousands) Eagle Ford Trend Midland Basin Corporate Total Proved properties $ 25,252 $ — $ — $ 25,252 Unproved properties 11,311 — — 11,311 Acreage expirations (1) 450 7,915 — 8,365 Goodwill — — 17,620 17,620 $ 37,013 $ 7,915 $ 17,620 $ 62,548

Noncontrolling Interest (Tables

Noncontrolling Interest (Tables)	9 Months Ended
	Sep. 30, 2021
Noncontrolling Interest [Abstract]
Summary of Changes in Noncontrolling Interest	The following table presents the changes in noncontrolling interest for the nine months ended September 30, 2021: EEH Units Held % EEH Units Held % Total EEH As of December 31, 2020 30,343,421 46.4 % 35,009,371 53.6 % 65,352,792 EEH Units issued in connection with the IRM Acquisition 12,719,594 — 12,719,594 EEH Units issued in connection with the Tracker/Sequel Acquisitions 6,200,000 — 6,200,000 EEH Units and Class B Common Stock converted to Class A Common Stock 655,376 (655,376) — EEH Units issued in connection with the vesting of restricted stock units and performance-based units 773,666 — 773,666 As of September 30, 2021 50,692,057 59.6 % 34,353,995 40.4 % 85,046,052

Net Income(Loss) Per Common Sha

Net Income(Loss) Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2021
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 Nine Months Ended (In thousands, except per share amounts) 2021 2020 2021 2020 Net income (loss) attributable to Earthstone Energy, Inc. $ 10,418 $ (5,445) $ (4,286) $ (5,076) Net income (loss) per common share attributable to Earthstone Energy, Inc.: Basic $ 0.21 $ (0.18) $ (0.09) $ (0.17) Diluted $ 0.20 $ (0.18) $ (0.09) $ (0.17) Weighted average common shares outstanding Basic 49,243,185 30,073,635 45,406,952 29,810,705 Add potentially dilutive securities: Unvested restricted stock units (1) 525,475 — — — Unvested performance units (1) 2,894,282 — — — Diluted weighted average common shares outstanding 52,662,942 30,073,635 45,406,952 29,810,705 (1) For the three months ended September 30, 2021, the 1,099,800 performance units granted on January 27, 2021 were excluded due to an assumed settlement in cash and the liability treatment described in Note 9. Stock-Based Compensation . For the nine months ended September 30, 2021, there was no dilutive effect related to unvested restricted stock units or performance units due to the loss for the period. For the three and nine months ended September 30, 2020, there was no dilutive effect related to unvested restricted stock units or performance units due to the loss for the period.

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2021
Share-based Payment Arrangement [Abstract]
Summary of Unvested RSU and PSU Award Activity	The table below summarizes RSU award activity for the nine months ended September 30, 2021: Shares Weighted-Average Grant Date Fair Value Unvested RSUs at December 31, 2020 1,050,908 $ 5.55 Granted 553,100 $ 5.38 Forfeited (15,333) $ 5.13 Vested (707,879) $ 5.75 Unvested RSUs at September 30, 2021 880,796 $ 5.30 The table below summarizes PSU activity for the nine months ended September 30, 2021: Shares Weighted-Average Grant Date Fair Value Unvested PSUs at December 31, 2020 1,879,425 $ 7.65 Granted 1,099,800 $ 10.85 Vested (227,500) $ 13.75 Unvested PSUs at September 30, 2021 2,751,725 $ 8.42
Schedule of Total Shareholder Return Goals	Between 0x to 2.0x of the Performance Units are eligible to be earned based on Earthstone achieving an annualized TSR based on the following pre-established goals: Earthstone’s Annualized TSR TSR Multiplier 20.5% or greater 2 14.5% 1 7.7% 0.5 Less than 7.7% 0

Asset Retirement Obligations (T

Asset Retirement Obligations (Tables)	9 Months Ended
	Sep. 30, 2021
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 nine months ended September 30, (in thousands) : 2021 Beginning asset retirement obligations $ 3,027 Liabilities incurred 103 Liabilities settled (103) Acquisitions 11,466 Accretion expense 916 Divestitures (41) Revision of estimates 140 Ending asset retirement obligations $ 15,508

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Financial assets
Derivative asset - current	$ 17	$ 7,509
Derivative asset - noncurrent	453	396
Financial liabilities
Derivative liability - current	67,575	1,135
Derivative liability - noncurrent	7,730	173
Fair Value on a Recurring Basis
Financial assets
Derivative asset - current	17	7,509
Derivative asset - noncurrent	453	396
Total financial assets	470	7,905
Financial liabilities
Derivative liability - current	67,575	1,135
Derivative liability - noncurrent	7,730	173
Share-based compensation liability - noncurrent	3,680
Total financial liabilities	78,985	1,308
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
Share-based compensation liability - noncurrent	0
Total financial liabilities	0	0
Level 2 | Fair Value on a Recurring Basis
Financial assets
Derivative asset - current	17	7,509
Derivative asset - noncurrent	453	396
Total financial assets	470	7,905
Financial liabilities
Derivative liability - current	67,575	1,135
Derivative liability - noncurrent	7,730	173
Share-based compensation liability - noncurrent	3,680
Total financial liabilities	78,985	1,308
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
Share-based compensation liability - noncurrent	0
Total financial liabilities	$ 0	$ 0

Derivative Financial Instrume_3

Derivative Financial Instruments - Schedule of Open Crude Oil and Natural Gas Derivative Contracts (Details)	9 Months Ended
	Sep. 30, 2021MMBTU$ / MMBTU$ / bblbbl
Crude Oil, Q4 2021 | Crude Oil
Derivative [Line Items]
Crude oil volume (Bbl) | bbl	941,475
Weighted Average Price ($/Bbl / $/MMBtu)	50.63
Crude Oil, Q1-Q4 2022 | Crude Oil
Derivative [Line Items]
Crude oil volume (Bbl) | bbl	2,462,250
Weighted Average Price ($/Bbl / $/MMBtu)	56.31
Crude Oil Basis Swap, Swap One, Q4 2021 | Crude Oil
Derivative [Line Items]
Crude oil volume (Bbl) | bbl	757,475
Weighted Average Price ($/Bbl / $/MMBtu)	0.80
Crude Oil Basis Swap, Swap Two, Q4 2021 | Crude Oil
Derivative [Line Items]
Crude oil volume (Bbl) | bbl	228,475
Weighted Average Price ($/Bbl / $/MMBtu)	(0.27)
Crude Oil Basis Swap, Swap One, Q1-Q4 2022 | Crude Oil
Derivative [Line Items]
Crude oil volume (Bbl) | bbl	2,007,500
Weighted Average Price ($/Bbl / $/MMBtu)	0.68
Natural Gas, Q4 2021 | Natural gas
Derivative [Line Items]
Natural gas volume (MMBtu) | MMBTU	2,576,000
Weighted Average Price ($/Bbl / $/MMBtu)	2.87
Natural Gas, Q1-Q4 2022 | Natural gas
Derivative [Line Items]
Natural gas volume (MMBtu) | MMBTU	4,295,000
Weighted Average Price ($/Bbl / $/MMBtu)	2.92
Natural Gas Basis Swap, Q4 2021 | Natural gas
Derivative [Line Items]
Natural gas volume (MMBtu) | MMBTU	2,698,000
Weighted Average Price ($/Bbl / $/MMBtu) | $ / MMBTU	(0.29)
Natural Gas Basis Swap, Q1-Q4 2022 | Natural gas
Derivative [Line Items]
Natural gas volume (MMBtu) | MMBTU	9,100,000
Weighted Average Price ($/Bbl / $/MMBtu)	(0.26)
Crude Oil Costless Collar | Crude Oil
Derivative [Line Items]
Crude oil volume (Bbl) | bbl	365,000
Derivative, ceiling price ($/Bbl / $/MMBtu) | $ / MMBTU	68.75
Derivative, floor price ($/Bbl / $/MMBtu) | $ / MMBTU	55
Natural Gas Costless Collar, Contractual Period One | Natural gas
Derivative [Line Items]
Natural gas volume (MMBtu) | MMBTU	122,000
Derivative, ceiling price ($/Bbl / $/MMBtu) | $ / MMBTU	4.10
Derivative, floor price ($/Bbl / $/MMBtu) | $ / MMBTU	3.50
Natural Gas Costless Collar, Contractual Period Two | Natural gas
Derivative [Line Items]
Natural gas volume (MMBtu) | MMBTU	2,905,000
Derivative, ceiling price ($/Bbl / $/MMBtu) | $ / MMBTU	4
Derivative, floor price ($/Bbl / $/MMBtu) | $ / MMBTU	3.06

Derivative Financial Instrume_4

Derivative Financial Instruments - Schedule of Interest Rate Swaps (Details)	Sep. 30, 2021USD ($)
May 5, 2020 to May 5, 2022
Derivative [Line Items]
Notional Amount	$ 125,000,000
Fixed Rate	0.286%
May 5, 2022 to May 5, 2023
Derivative [Line Items]
Notional Amount	$ 100,000,000
Fixed Rate	0.286%
May 5, 2023 to May 7, 2024
Derivative [Line Items]
Notional Amount	$ 75,000,000
Fixed Rate	0.286%

Derivative Financial Instrume_5

Derivative Financial Instruments - Schedule of Location and Fair Value Amounts of All Derivative Instruments (Details) - Derivatives Not Designated as Hedging Contracts - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Derivative asset - current | Commodity contracts
Derivative Asset [Abstract]
Gross Recognized Assets	$ 1,340	$ 11,071
Gross Amounts Offset, Assets	(1,323)	(3,562)
Total financial assets	17	7,509
Derivative liability - current | Commodity contracts
Derivative Liability [Abstract]
Gross Recognized Liabilities	68,707	4,492
Gross Amounts Offset, Liabilities	(1,323)	(3,562)
Total financial liabilities	67,384	930
Derivative liability - current | Interest rate swaps
Derivative Liability [Abstract]
Gross Recognized Liabilities	191	205
Gross Amounts Offset, Liabilities	0	0
Total financial liabilities	191	205
Derivative asset - noncurrent | Commodity contracts
Derivative Asset [Abstract]
Gross Recognized Assets	285	396
Gross Amounts Offset, Assets	(277)	0
Total financial assets	8	396
Derivative asset - noncurrent | Interest rate swaps
Derivative Asset [Abstract]
Gross Recognized Assets	445	0
Gross Amounts Offset, Assets	0	0
Total financial assets	445	0
Derivative liability - noncurrent | Commodity contracts
Derivative Liability [Abstract]
Gross Recognized Liabilities	8,007	0
Gross Amounts Offset, Liabilities	(277)	0
Total financial liabilities	7,730	0
Derivative liability - noncurrent | Interest rate swaps
Derivative Liability [Abstract]
Gross Recognized Liabilities	0	173
Gross Amounts Offset, Liabilities	0	0
Total financial liabilities	$ 0	$ 173

Derivative Financial Instrume_6

Derivative Financial Instruments - Summary of Realized and Unrealized Gains and Losses on Derivative Instruments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Realized (loss) gain			$ 46,311	$ (47,599)
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net, Total	$ (33,128)	$ (6,040)	(117,566)	73,065
Derivatives Not Designated as Hedging Contracts | (Loss) Gain On Derivative Contracts, Net
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized (loss) gain	(12,244)	(14,543)	(71,255)	25,466
Realized (loss) gain	(20,884)	8,503	(46,311)	47,599
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net, Total	(33,128)	$ (6,040)	(117,566)	$ 73,065
Oil and Gas Joint Interest Billing Receivables, Current | Commodity contracts | Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Derivative asset	$ 10		$ 10		$ 2,300

Acquisitions - Narrative (Detai

Acquisitions - Narrative (Details) $ / shares in Units, $ in Thousands	Nov. 02, 2021USD ($)$ / sharesshares	Jul. 20, 2021USD ($)$ / sharesshares	Jan. 07, 2021USD ($)$ / sharesshares	Sep. 30, 2021USD ($)$ / shares	Jun. 30, 2021USD ($)seller	Sep. 30, 2021USD ($)$ / shares	Jun. 30, 2021USD ($)seller	Sep. 30, 2020USD ($)	Sep. 30, 2021USD ($)$ / shares	Sep. 30, 2021USD ($)$ / shares	Sep. 30, 2020USD ($)	Dec. 31, 2020$ / shares
Business Acquisition [Line Items]
Transaction costs						$ 293		$ (705)	$ 2,906		$ (324)
Class A Common Stock
Business Acquisition [Line Items]
Common stock, par value (in dollars per share) | $ / shares				$ 0.001		$ 0.001			$ 0.001	$ 0.001		$ 0.001
Tracker And Sequel Aquisitions
Business Acquisition [Line Items]
Asset acquisition pro forma revenue				$ 16,600
Asset acquisition pro forma operating expenses				$ 5,600
Tracker And Sequel Aquisitions | Class A Common Stock
Business Acquisition [Line Items]
Shares of earthstone class A common stock issued (in shares) | shares		6,200,000
Class A Common Stock consideration		$ 61,814
Earthstone class A common stock price (in dollar per share) | $ / shares		$ 9.97
Tracker Purchase Agreement
Business Acquisition [Line Items]
Cash consideration		$ 22,500
Shares of earthstone class A common stock issued (in shares) | shares		4,700,000
Tracker Purchase Agreement | Significant Shareholder
Business Acquisition [Line Items]
Asset acquisition, percentage of voting interest acquired				49.00%		49.00%			49.00%	49.00%
Tracker Purchase Agreement | Class A Common Stock
Business Acquisition [Line Items]
Shares of earthstone class A common stock issued (in shares) | shares		4,700,000
Sequel Purchase Agreement
Business Acquisition [Line Items]
Cash consideration		$ 45,300
Shares of earthstone class A common stock issued (in shares) | shares		1,500,000
Sequel Purchase Agreement | Class A Common Stock
Business Acquisition [Line Items]
Share price (in dollars per share) | $ / shares		$ 9.97
Foreland Acquisition
Business Acquisition [Line Items]
Asset acquisition, deposit payable				$ 6,100		$ 6,100			$ 6,100	$ 6,100
Foreland Acquisition | Subsequent Event
Business Acquisition [Line Items]
Cash consideration	$ 49,200
Shares of earthstone class A common stock issued (in shares) | shares	2,611,111
Earthstone class A common stock price (in dollar per share) | $ / shares	$ 10.77
IRM Acquisition
Business Acquisition [Line Items]
Net cash consideration			$ 140,400
Pro forma revenue						20,800				65,100
Pro forma operating expense						9,600				$ 33,700
Transaction costs						$ 100			$ 3,900
Total consideration transferred			$ 216,938
IRM Acquisition | Class A Common Stock
Business Acquisition [Line Items]
Shares acquired (in shares) | shares			12,719,594
Common stock, par value (in dollars per share) | $ / shares			$ 0.001
Earthstone Class A common stock price as of January 7, 2021 (in dollars per share) | $ / shares			$ 6.02
Eagle Ford Acquisitions
Business Acquisition [Line Items]
Number of separate sellers | seller					4		4
Total consideration transferred					$ 48,000		$ 48,000

Acquisitions - Consideration Tr

Acquisitions - Consideration Transferred In Business Combination (Details) $ / shares in Units, $ in Thousands	Jan. 07, 2021USD ($)$ / sharesshares
Fair value of liabilities assumed:
Other current liabilities	$ 5,314
IRM Acquisition
Business Acquisition [Line Items]
Cash consideration	140,366
Total consideration transferred	216,938
Fair value of assets acquired:
Cash	4,763
Other current assets	11,524
Oil and gas properties	226,178
Other non-current assets	252
Amount attributable to assets acquired	242,717
Fair value of liabilities assumed:
Derivative liability	10,177
Asset retirement obligation - noncurrent	10,288
Amount attributable to liabilities assumed	25,779
Net cash consideration	140,400
Cash consideration	$ 140,366
IRM Acquisition | Class A Common Stock
Business Acquisition [Line Items]
Shares of Earthstone Class A common stock issued (in shares) | shares	12,719,594
Earthstone Class A Common Stock price (in dollars per share) | $ / shares	$ 6.02
Class A Common Stock consideration	$ 76,572

Acquisitions - Consideration _2

Acquisitions - Consideration Transferred In Asset Acquisition (Details) - USD ($) $ / shares in Units, $ in Thousands	Jul. 20, 2021	Sep. 30, 2021
Asset Acquisition [Line Items]
Noncurrent liabilities - ARO		$ 103
Tracker And Sequel Aquisitions
Asset Acquisition [Line Items]
Cash consideration	$ 59,569
Direct transaction costs	1,550
Total consideration transferred	122,933
Oil and gas properties	123,533
Amount attributable to assets acquired	123,533
Noncurrent liabilities - ARO	600
Amount attributable to liabilities assumed	$ 600
Tracker And Sequel Aquisitions | Class A Common Stock
Asset Acquisition [Line Items]
Shares of earthstone class A common stock issued (in shares)	6,200,000
Earthstone class A common stock price (in dollar per share)	$ 9.97
Class A Common Stock consideration	$ 61,814

Acquisitions - Pro Forma (Detai

Acquisitions - Pro Forma (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Business Combination and Asset Acquisition [Abstract]
Revenue	$ 115,331	$ 79,345	$ 316,932	$ 215,504
Income (loss) before taxes	22,647	(2,656)	17,660	49,461
Net income (loss)	22,196	(2,840)	18,003	48,962
Less: Net income (loss) attributable to noncontrolling interest	9,921	(1,182)	7,782	20,372
Net income (loss) attributable to Earthstone Energy, Inc.	$ 12,275	$ (1,658)	$ 10,222	$ 28,589
Basic (in dollars per share)	$ 0.25	$ (0.03)	$ 0.23	$ 0.59
Diluted (in dollars per share)	$ 0.23	$ (0.03)	$ 0.23	$ 0.59

Oil and Natural Gas Propertie_2

Oil and Natural Gas Properties - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Oil And Natural Gas Properties [Line Items]
Impairment of oil and gas properties	$ 0	$ 2,100,000	$ 0	$ 62,548,000
Proved properties
Oil And Natural Gas Properties [Line Items]
Depletion expenses	$ 26,900,000	$ 28,400,000	$ 77,000,000	75,700,000
Impairment of oil and gas properties				25,252,000
Unproved properties
Oil And Natural Gas Properties [Line Items]
Impairment of oil and gas properties				$ 11,311,000
Unproved properties | Minimum
Oil And Natural Gas Properties [Line Items]
Unproved oil and gas lease term			3 years
Unproved properties | Maximum
Oil And Natural Gas Properties [Line Items]
Unproved oil and gas lease term			5 years

Oil and Natural Gas Propertie_3

Oil and Natural Gas Properties - Schedule of Capital Expenditures (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021
Oil And Natural Gas Properties [Line Items]
Total capital expenditures	$ 44,169	$ 76,790
Drilling and completions
Oil And Natural Gas Properties [Line Items]
Total capital expenditures	42,179	74,346
Leasehold costs
Oil And Natural Gas Properties [Line Items]
Total capital expenditures	$ 1,990	$ 2,444

Oil and Natural Gas Propertie_4

Oil and Natural Gas Properties - Schedule of Capitalized Costs, Impairment, and Depreciation (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Oil And Natural Gas Properties [Line Items]
Impairment of oil and gas properties	$ 0	$ 2,100,000	$ 0	$ 62,548,000
Goodwill			$ 0	17,620,000
Operating Segments | Eagle Ford Trend
Oil And Natural Gas Properties [Line Items]
Impairment of oil and gas properties				37,013,000
Goodwill				0
Operating Segments | Midland Basin
Oil And Natural Gas Properties [Line Items]
Impairment of oil and gas properties				7,915,000
Goodwill				0
Corporate
Oil And Natural Gas Properties [Line Items]
Impairment of oil and gas properties				17,620,000
Goodwill				17,620,000
Proved properties
Oil And Natural Gas Properties [Line Items]
Impairment of oil and gas properties				25,252,000
Proved properties | Operating Segments | Eagle Ford Trend
Oil And Natural Gas Properties [Line Items]
Impairment of oil and gas properties				25,252,000
Proved properties | Operating Segments | Midland Basin
Oil And Natural Gas Properties [Line Items]
Impairment of oil and gas properties				0
Proved properties | Corporate
Oil And Natural Gas Properties [Line Items]
Impairment of oil and gas properties				0
Unproved properties
Oil And Natural Gas Properties [Line Items]
Impairment of oil and gas properties				11,311,000
Unproved properties | Operating Segments | Eagle Ford Trend
Oil And Natural Gas Properties [Line Items]
Impairment of oil and gas properties				11,311,000
Unproved properties | Operating Segments | Midland Basin
Oil And Natural Gas Properties [Line Items]
Impairment of oil and gas properties				0
Unproved properties | Corporate
Oil And Natural Gas Properties [Line Items]
Impairment of oil and gas properties				0
Acreage Expirations
Oil And Natural Gas Properties [Line Items]
Impairment of oil and gas properties				8,365,000
Acreage Expirations | Operating Segments | Eagle Ford Trend
Oil And Natural Gas Properties [Line Items]
Impairment of oil and gas properties				450,000
Acreage Expirations | Operating Segments | Midland Basin
Oil And Natural Gas Properties [Line Items]
Impairment of oil and gas properties				7,915,000
Acreage Expirations | Corporate
Oil And Natural Gas Properties [Line Items]
Impairment of oil and gas properties				$ 0

Noncontrolling Interest - Summa

Noncontrolling Interest - Summary of Changes in Noncontrolling Interest (Details)	9 Months Ended
	Sep. 30, 2021shares	Dec. 31, 2020
Class A Common Stock
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Outstanding, beginning balance (in shares)	30,343,421
Outstanding, ending balance (in shares)	50,692,057
Earthstone Energy Holdings, LLC
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Outstanding, beginning balance (in shares)	65,352,792
Outstanding, ending balance (in shares)	85,046,052
Earthstone Energy Holdings, LLC | Restricted Stock Units And Performance Units
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
EEH Units issued in connection with the vesting of restricted stock units and performance-based units (in shares)	773,666
Earthstone Energy Holdings, LLC | 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 Holdings, LLC | IRM Acquisition
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
EEH Units issued in connect with Acquisition (in shares)	12,719,594
Earthstone Energy Holdings, LLC | Tracker/Sequel Acquisition
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
EEH Units issued in connect with Acquisition (in shares)	6,200,000
EEH Units Held By Earthstone and Lynden US | Earthstone Energy Holdings, LLC
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Outstanding, beginning balance (in shares)	30,343,421
Outstanding, ending balance (in shares)	50,692,057
EEH Units Held By Earthstone and Lynden US | Earthstone Energy Holdings, LLC | Restricted Stock Units And Performance Units
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
EEH Units issued in connection with the vesting of restricted stock units and performance-based units (in shares)	773,666
EEH Units Held By Earthstone and Lynden US | Earthstone Energy Holdings, LLC | 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)	655,376
EEH Units Held By Earthstone and Lynden US | Earthstone Energy Holdings, LLC | IRM Acquisition
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
EEH Units issued in connect with Acquisition (in shares)	12,719,594
EEH Units Held By Earthstone and Lynden US | Earthstone Energy Holdings, LLC | Tracker/Sequel Acquisition
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
EEH Units issued in connect with Acquisition (in shares)	6,200,000
EEH Units Held By Earthstone and Lynden US | Earthstone Energy Holdings, LLC
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Percentage of EEH Units Held By Earthstone and Lynden	59.60%	46.40%
EEH Units Held By Others | Earthstone Energy Holdings, LLC
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Outstanding, beginning balance (in shares)	35,009,371
Outstanding, ending balance (in shares)	34,353,995
EEH Units Held By Others | Earthstone Energy Holdings, LLC | Restricted Stock Units And Performance Units
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
EEH Units issued in connection with the vesting of restricted stock units and performance-based units (in shares)	0
EEH Units Held By Others | Earthstone Energy Holdings, LLC | 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)	(655,376)
EEH Units Held By Others | Earthstone Energy Holdings, LLC | IRM Acquisition
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
EEH Units issued in connect with Acquisition (in shares)	0
EEH Units Held By Others | Earthstone Energy Holdings, LLC | Tracker/Sequel Acquisition
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
EEH Units issued in connect with Acquisition (in shares)	0
EEH Units Held By Others | Earthstone Energy Holdings, LLC
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Percentage of EEH Units Held By Others	40.40%	53.60%

Net Income (Loss) Per Common _2

Net Income (Loss) Per Common Share - Reconciliation of Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Earnings Per Share [Abstract]
Net income (loss) attributable to Earthstone Energy, Inc.	$ 10,418	$ (5,445)	$ (4,286)	$ (5,076)
Net income (loss) per common share attributable to Earthstone Energy, Inc.:
Basic (in dollars per share)	$ 0.21	$ (0.18)	$ (0.09)	$ (0.17)
Diluted (in dollars per share)	$ 0.20	$ (0.18)	$ (0.09)	$ (0.17)
Weighted average common shares outstanding
Basic (in shares)	49,243,185	30,073,635	45,406,952	29,810,705
Add potentially dilutive securities:
Unvested restricted stock units (in shares)	525,475	0	0	0
Unvested performance units (in shares)	2,894,282	0	0	0
Diluted weighted average common shares outstanding (in shares)	52,662,942	30,073,635	45,406,952	29,810,705

Net Income (Loss) Per Common _3

Net Income (Loss) Per Common Share - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in share)	1,099,800	0	0	0
Net income (loss) attributable to noncontrolling interest	$ 8,420,000	$ (6,413,000)	$ (3,263,000)	$ (5,977,000)
Class B Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock, par value (in dollars per share)	$ 0.001		$ 0.001		$ 0.001
Net income (loss) attributable to noncontrolling interest	$ 8,400,000	$ (6,400,000)	$ (3,300,000)	(6,000,000)
Dilutive securities, effect on earnings per share			$ 0	$ 0

Common Stock (Details)

Common Stock (Details) - USD ($) $ in Millions	Jul. 20, 2021	Jan. 07, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Member Units | Bold Contribution Agreement
Capital Unit [Line Items]
Stock conversion (in shares)					1
Class A Common Stock
Capital Unit [Line Items]
Common stock, shares issued (in shares)			50,692,057		50,692,057		30,343,421
Common stock, shares outstanding (in shares)			50,692,057		50,692,057		30,343,421
Class A Common Stock | Bold Contribution Agreement
Capital Unit [Line Items]
Stock conversion (in shares)					1
Class A Common Stock | 2014 Plan
Capital Unit [Line Items]
Common shares issued during period under stock plan (in shares)			220,219	195,344	1,162,879	726,082
Common stock repurchased (in shares)			65,106	54,268	389,213	187,773
Class B Common Stock
Capital Unit [Line Items]
Common stock, shares issued (in shares)			34,353,995		34,353,995		35,009,371
Common stock, shares outstanding (in shares)			34,353,995		34,353,995		35,009,371
EEH units and class B common stock converted to class A common stock (in shares)			43,882	49,316	655,376	251,309
Tracker And Sequel Aquisitions | Class A Common Stock
Capital Unit [Line Items]
Common shares issued during period under stock plan (in shares)	6,200,000
Amount of equity issued	$ 61.8
IRM Acquisition | Class A Common Stock
Capital Unit [Line Items]
Common shares issued during period under stock plan (in shares)		12,719,594
Amount of equity issued		$ 76.6

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	Mar. 18, 2021	Jan. 27, 2021	Feb. 28, 2018	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance-based restricted stock granted (in shares)						553,100
Weighted average fair value per share (in dollars per share)				$ 5.30		$ 5.30		$ 5.55
Forfeited in period (in shares)						707,879
Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense				$ 0.7		$ 3.7
Performance-based restricted stock granted (in shares)						1,099,800
Weighted average fair value per share (in dollars per share)				$ 8.42		$ 8.42		$ 7.65
Share-based compensation liability related to 2021 PSUs				$ 3.7		$ 3.7
Forfeited in period (in shares)						227,500
Performance Stock Units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Relative total shareholder return, percentage						200.00%
Performance Stock Units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Relative total shareholder return, percentage						0.00%
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 (in shares)				12,000,000		12,000,000
Unrecognized compensation expense related to unvested stock				$ 4.6		$ 4.6
Weighted average remaining vesting period of unrecognized compensation expense						10 months 13 days
Stock-based compensation expense				1.2	$ 1.2	$ 3.9	$ 4.2
2014 Plan | Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense				$ 1.7	$ 1.2	$ 6.7	$ 3.5
Performance-based restricted stock granted (in shares)		1,099,800	252,500
Risk-free interest rate						0.30%
Expected volatility (as a percent)						86.00%
Weighted average fair value per share (in dollars per share)				$ 10.85		$ 10.85
Forfeited in period (in shares)	227,500
Percentage of target achievement	200.00%
Unrecognized compensation expense related to PSU awards				$ 15.3		$ 15.3
Remaining vesting period of unrecognized compensation expense (in years)						1 year 18 days
2014 Plan | Performance Stock Units | Class A Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of shares of class A common stock (in shares)	455,000
Bold Contribution Agreement | 2014 Plan | Restricted Stock Units | Class A Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of common stock that each holder has contingent right to receive (in shares)						1

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Unvested Award Activity (Details)	9 Months Ended
	Sep. 30, 2021$ / sharesshares
Restricted Stock Units
Shares
Unvested at beginning period (in shares) | shares	1,050,908
Granted (in shares) | shares	553,100
Forfeited in period (in shares) | shares	(15,333)
Vested (in shares) | shares	(707,879)
Unvested at end period (in shares) | shares	880,796
Weighted-Average Grant Date Fair Value
Unvested at beginning of period, Weighted-Average Grant Date Fair Value (in dollars per share) | $ / shares	$ 5.55
Granted, Weighted-Average Grant Date Fair Value (in dollars per share) | $ / shares	5.38
Forfeited, Weighted-Average Grant Date Fair Value (in dollars per share) | $ / shares	5.13
Vested, Weighted-Average Grant Date Fair Value (in dollars per share) | $ / shares	5.75
Unvested at end of period, Weighted-Average Grant Date Fair Value (in dollars per share) | $ / shares	$ 5.30
Performance Stock Units
Shares
Unvested at beginning period (in shares) | shares	1,879,425
Granted (in shares) | shares	1,099,800
Vested (in shares) | shares	(227,500)
Unvested at end period (in shares) | shares	2,751,725
Weighted-Average Grant Date Fair Value
Unvested at beginning of period, Weighted-Average Grant Date Fair Value (in dollars per share) | $ / shares	$ 7.65
Granted, Weighted-Average Grant Date Fair Value (in dollars per share) | $ / shares	10.85
Vested, Weighted-Average Grant Date Fair Value (in dollars per share) | $ / shares	13.75
Unvested at end of period, Weighted-Average Grant Date Fair Value (in dollars per share) | $ / shares	$ 8.42

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Target Multipliers (Details) - Performance Stock Units	9 Months Ended
	Sep. 30, 2021
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Earthstone’s Annualized TSR	7.70%
20.5% or greater | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Earthstone’s Annualized TSR	20.50%
20.5% or greater | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
TSR Multiplier	200.00%
0.145 | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Earthstone’s Annualized TSR	14.50%
0.145 | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
TSR Multiplier	100.00%
7.7% | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Earthstone’s Annualized TSR	7.70%
7.7% | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
TSR Multiplier	50.00%
Less than 7.7% | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
TSR Multiplier	0.00%

Long-Term Debt (Details)

Long-Term Debt (Details) - USD ($)	Nov. 21, 2019	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	May 31, 2024	May 31, 2023	Sep. 17, 2021	Jul. 20, 2021	Dec. 31, 2020	Dec. 18, 2020	Dec. 17, 2020	May 31, 2020	Apr. 20, 2020
Debt Instrument [Line Items]
Long-term debt outstanding		$ 278,253,000		$ 278,253,000						$ 115,000,000
Amortization of deferred financing costs				581,000	$ 241,000
EEH Credit Agreement
Debt Instrument [Line Items]
Current borrowing base under EEH credit agreement								$ 650,000,000	$ 550,000,000		$ 360,000,000	$ 240,000,000		$ 475,000,000
Credit agreement, covenant, current ratio	1
Credit agreement, covenant, leverage ratio	3.5
Long-term debt outstanding		$ 278,300,000		$ 278,300,000						$ 115,000,000
Long-term debt, percentage bearing annual interest rate		3.153%		3.153%
Additional borrowing base available under credit agreement		$ 371,700,000		$ 371,700,000
Amount of borrowings		$ 503,700,000		503,700,000
Repayments of borrowings				$ 340,500,000
Averaged interest rate on borrowings		3.66%	2.48%	3.47%	2.89%
Commitment fees on borrowings		$ 200,000	$ 200,000	$ 600,000	$ 500,000
Amortization of deferred financing costs		200,000	100,000	600,000	200,000
Capitalized costs associated with borrowings		$ 1,000,000	$ 0	$ 2,800,000	$ 0
Minimum | EEH Credit Agreement
Debt Instrument [Line Items]
Applicable margin percentage	1.50%
Commitment fee percentage	0.375%
Maximum | EEH Credit Agreement
Debt Instrument [Line Items]
Applicable margin percentage	2.75%
Commitment fee percentage	0.50%
London Interbank Offered Rate (LIBOR) | EEH Credit Agreement
Debt Instrument [Line Items]
Applicable margin percentage	1.00%
London Interbank Offered Rate (LIBOR) | Minimum | EEH Credit Agreement
Debt Instrument [Line Items]
Applicable margin percentage	2.50%
London Interbank Offered Rate (LIBOR) | Maximum | EEH Credit Agreement
Debt Instrument [Line Items]
Applicable margin percentage	3.75%
Federal Funds Rate | EEH Credit Agreement
Debt Instrument [Line Items]
Applicable margin percentage	0.50%
Interest rate swaps
Debt Instrument [Line Items]
Fixed rate													0.286%
Notional amount													$ 125,000,000
Interest rate swaps | Scenario, Forecast
Debt Instrument [Line Items]
Notional amount						$ 75,000,000	$ 100,000,000

Asset Retirement Obligations (D

Asset Retirement Obligations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Beginning asset retirement obligations			$ 3,027
Liabilities incurred			103
Liabilities settled			(103)
Acquisitions			11,466
Accretion expense	$ 323	$ 47	916	$ 137
Divestitures			(41)
Revision of estimates			140
Ending asset retirement obligations	$ 15,508		$ 15,508

Related Party Transactions (Det

Related Party Transactions (Details) $ in Millions	Jul. 20, 2021USD ($)shares	Feb. 12, 2020USD ($)	Jun. 30, 2021USD ($)seller	Jun. 30, 2021USD ($)seller	Sep. 30, 2021USD ($)
Related Party Transaction [Line Items]
Proceeds from sale of interest in oil and gas leases		$ 0.4
Eagle Ford Acquisitions
Related Party Transaction [Line Items]
Total consideration transferred			$ 48	$ 48
Number of separate sellers | seller			4	4
Eagle Ford, Seller One
Related Party Transaction [Line Items]
Total consideration transferred				$ 8.2
Tracker And Sequel Aquisitions | Class A Common Stock
Related Party Transaction [Line Items]
Shares of earthstone class A common stock issued (in shares) | shares	6,200,000
Tracker Purchase Agreement
Related Party Transaction [Line Items]
Cash consideration	$ 22.5
Shares of earthstone class A common stock issued (in shares) | shares	4,700,000
Tracker Purchase Agreement | Class A Common Stock
Related Party Transaction [Line Items]
Shares of earthstone class A common stock issued (in shares) | shares	4,700,000
Tracker Purchase Agreement | Significant Shareholder
Related Party Transaction [Line Items]
Asset acquisition, percentage of voting interest acquired					49.00%
Settled Litigation | Insurance Settlement
Related Party Transaction [Line Items]
Settlement reimbursement					$ 1.1

Commitments and Contingencies (

Commitments and Contingencies (Details) - Olenik v. Lodzinski - Settled Litigation - USD ($) $ in Millions	Mar. 31, 2021	Sep. 30, 2021
Loss Contingencies [Line Items]
All cash settlement payment	$ 3.5
Earthstone Energy, Inc.
Loss Contingencies [Line Items]
All cash settlement payment		$ 1.3
Fund allocation, percent	55.00%
Current Stockholders
Loss Contingencies [Line Items]
Fund allocation, percent	45.00%
Insurance Carrier
Loss Contingencies [Line Items]
Settlement reimbursement	$ 2.8

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Income Tax Disclosure [Line Items]
Accrued income taxes, current	$ 600		$ 600		$ 600
Income tax expense (benefit)	$ 451	$ 130	(343)	$ 112
Deferred income tax expense (benefit)			(343)	112
Lynden US
Income Tax Disclosure [Line Items]
Deferred income tax expense (benefit)			(100)
Earthstone Energy Holdings, LLC
Income Tax Disclosure [Line Items]
Income tax expense (benefit)			(800)
Deferred income tax expense (benefit)				(800)
Earthstone Energy Holdings, LLC | Texas Margin Tax
Income Tax Disclosure [Line Items]
Deferred income tax expense (benefit)			(800)	$ 100
Current income tax expense (benefit)			$ 600