Earthstone Energy (ESTE) 10-Q 4 Aug 22 2022 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2022	Jul. 28, 2022
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
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	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
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		104,442,648
Class B Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		34,261,641

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash	$ 0	$ 4,013
Accounts receivable:
Oil, natural gas, and natural gas liquids revenues	230,449	50,575
Joint interest billings and other, net of allowance of $19 and $19 at June 30, 2022 and December 31, 2021, respectively	22,004	2,930
Derivative asset	3,327	1,348
Prepaid expenses and other current assets	13,646	2,549
Total current assets	269,426	61,415
Oil and gas properties, successful efforts method:
Proved properties	3,167,140	1,625,367
Unproved properties	282,569	222,025
Land	5,482	5,382
Total oil and gas properties	3,455,191	1,852,774
Accumulated depreciation, depletion and amortization	(495,971)	(395,625)
Net oil and gas properties	2,959,220	1,457,149
Other noncurrent assets:
Office and other equipment, net of accumulated depreciation and amortization of $4,761 and $4,547 at June 30, 2022 and December 31, 2021, respectively	2,944	1,986
Derivative asset	3,523	157
Operating lease right-of-use assets	2,423	1,795
Other noncurrent assets	53,423	33,865
TOTAL ASSETS	3,290,959	1,556,367
Current liabilities:
Accounts payable	80,386	31,397
Revenues and royalties payable	150,087	36,189
Accrued expenses	72,168	31,704
Asset retirement obligation	390	395
Derivative liability	122,067	45,310
Advances	5,774	4,088
Operating lease liabilities	850	681
Other current liabilities	767	851
Total current liabilities	432,489	150,615
Noncurrent liabilities:
Revolving credit facility	395,000	320,000
8.000% Senior Notes due 2027, net	537,753	0
Deferred tax liability	36,277	15,731
Asset retirement obligation	35,555	15,471
Derivative liability	19,761	571
Operating lease liabilities	1,736	1,276
Other noncurrent liabilities	13,004	6,442
Total noncurrent liabilities	1,039,086	359,491
Commitments and Contingencies (Note 13)
Equity:
Preferred stock	0	0
Additional paid-in capital	1,326,293	718,181
Accumulated deficit	(48,367)	(159,774)
Total Earthstone Energy, Inc. equity	1,278,039	558,494
Noncontrolling interest	541,345	487,767
Total equity	1,819,384	1,046,261
TOTAL LIABILITIES AND EQUITY	3,290,959	1,556,367
Series A Convertible Preferred Stock
Equity:
Preferred stock	0	0
Class A Common Stock
Equity:
Common stock	79	53
Class B Common Stock
Equity:
Common stock	$ 34	$ 34

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Allowance for credit loss	$ (19)	$ (19)
Office and other equipment, accumulated depreciation	$ (4,761)	$ (4,547)
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	19,720,000	19,720,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Series A Convertible Preferred Stock
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	280,000	0
Preferred stock, shares issued (in shares)	280,000	0
Preferred stock, shares outstanding (in shares)	280,000	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)	79,217,423	53,467,307
Common stock, shares outstanding (in shares)	79,217,423	53,467,307
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)	34,261,641	34,344,532
Common stock, shares outstanding (in shares)	34,261,641	34,344,532

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
REVENUES
Total revenues	$ 472,551	$ 89,671	$ 668,701	$ 165,243
OPERATING COSTS AND EXPENSES
Lease operating expense	50,514	11,747	72,145	22,596
Production and ad valorem taxes	34,195	5,176	47,510	10,203
Depreciation, depletion and amortization	66,463	26,027	100,789	50,434
General and administrative expense	14,077	9,170	26,383	17,550
Transaction costs	(402)	507	10,340	2,613
Accretion of asset retirement obligations	708	303	1,105	593
Exploration expense	0	30	92	30
Total operating costs and expenses	165,555	52,960	258,364	104,019
Gain on sale of oil and gas properties	0	348	0	348
Income from operations	306,996	37,059	410,337	61,572
OTHER INCOME (EXPENSE)
Interest expense, net	(16,625)	(2,401)	(21,943)	(4,618)
Loss on derivative contracts, net	(49,907)	(51,175)	(201,387)	(84,438)
Other income, net	249	200	296	303
Total other expense	(66,283)	(53,376)	(223,034)	(88,753)
Income (loss) before income taxes	240,713	(16,317)	187,303	(27,181)
Income tax (expense) benefit	(22,688)	486	(21,155)	794
Net income (loss)	218,025	(15,831)	166,148	(26,387)
Less: Net income (loss) attributable to noncontrolling interest	73,140	(6,960)	54,741	(11,683)
Net income (loss) attributable to Earthstone Energy, Inc.	$ 144,885	$ (8,871)	$ 111,407	$ (14,704)
Net income (loss) per common share attributable to Earthstone Energy, Inc.:
Basic (in dollars per share)	$ 1.85	$ (0.20)	$ 1.57	$ (0.34)
Diluted (in dollars per share)	$ 1.46	$ (0.20)	$ 1.37	$ (0.34)
Weighted average common shares outstanding:
Basic (in shares)	78,291,037	44,127,718	70,909,353	43,457,043
Diluted (in shares)	102,410,036	44,127,718	84,266,422	43,457,043
Oil
REVENUES
Total revenues	$ 286,632	$ 70,918	$ 424,384	$ 131,737
Natural gas
REVENUES
Total revenues	96,125	6,690	119,083	12,542
Natural gas liquids
REVENUES
Total revenues	$ 89,794	$ 12,063	$ 125,234	$ 20,964

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands	Total	Class A Common Stock	Class B Common Stock	Total Earthstone Energy, Inc. Equity	Preferred Stock Series A Convertible Preferred Stock	Common Stock Class A Common Stock	Common Stock Class B Common Stock	Additional Paid-in Capital	Accumulated Deficit	Noncontrolling Interest
Beginning balance (in shares) at Dec. 31, 2020						30,343,421	35,009,371
Beginning balance at Dec. 31, 2020	$ 815,536			$ 344,881		$ 30	$ 35	$ 540,074	$ (195,258)	$ 470,655
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense - equity portion	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			76,572		$ 13		76,559
Vesting of restricted stock units and performance units, net of taxes paid (in shares)						463,495
Vesting of restricted stock units, net of taxes paid	0
Shares retained by the Company in exchange for payment of recipient mandatory tax withholdings (in shares)						257,764
Shares 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			7,758		$ 1	$ (1)	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			423,903		$ 44	$ 34	624,916	(201,091)	458,174
Beginning balance (in shares) at Dec. 31, 2020						30,343,421	35,009,371
Beginning balance at Dec. 31, 2020	815,536			344,881		$ 30	$ 35	540,074	(195,258)	470,655
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Class B Common Stock converted to Class A Common Stock (in shares)			611,494
Net income (loss)	(26,387)
Ending balance (in shares) at Jun. 30, 2021						44,293,062	34,397,877
Ending balance at Jun. 30, 2021	867,680			416,907		$ 44	$ 34	626,791	(209,962)	450,773
Beginning balance (in shares) at Mar. 31, 2021						44,104,541	34,431,340
Beginning balance at Mar. 31, 2021	882,077			423,903		$ 44	$ 34	624,916	(201,091)	458,174
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense - equity portion	2,175			2,175				2,175
Vesting of restricted stock units and performance units, net of taxes paid (in shares)		155,058
Shares retained by the Company in exchange for payment of recipient mandatory tax withholdings (in shares)						66,343
Shares 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	(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			416,907		$ 44	$ 34	626,791	(209,962)	450,773
Beginning balance (in shares) at Dec. 31, 2021					0	53,467,307	34,344,532
Beginning balance at Dec. 31, 2021	1,046,261			558,494	$ 0	$ 53	$ 34	718,181	(159,774)	487,767
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense - equity portion	2,301			2,301				2,301
Shares issued in connection with Acquisition (in shares)						19,417,476
Shares issued in connection with Acquisition	249,515			249,515		$ 19		249,496
Vesting of restricted stock units and performance units, net of taxes paid (in shares)						483,251
Vesting of restricted stock units, net of taxes paid	0					$ 1		(1)
Shares retained by the Company in exchange for payment of recipient mandatory tax withholdings (in shares)						286,892
Shares retained by the Company in exchange for payment of recipient mandatory tax withholdings	(3,898)			(3,898)				(3,898)
Cancellation of treasury shares (in shares)						(286,892)
Class B Common Stock converted to Class A Common Stock (in shares)						72,766	(72,766)
Class B Common Stock converted to Class A Common Stock	0			1,014				1,014		(1,014)
Net income (loss)	(51,877)			(33,478)					(33,478)	(18,399)
Ending balance (in shares) at Mar. 31, 2022					0	73,440,800	34,271,766
Ending balance at Mar. 31, 2022	1,242,302			773,948	$ 0	$ 73	$ 34	967,093	(193,252)	468,354
Beginning balance (in shares) at Dec. 31, 2021					0	53,467,307	34,344,532
Beginning balance at Dec. 31, 2021	1,046,261			558,494	$ 0	$ 53	$ 34	718,181	(159,774)	487,767
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Class B Common Stock converted to Class A Common Stock (in shares)			82,891
Net income (loss)	166,148
Ending balance (in shares) at Jun. 30, 2022					280,000	79,217,423	34,261,641
Ending balance at Jun. 30, 2022	1,819,384			1,278,039	$ 0	$ 79	$ 34	1,326,293	(48,367)	541,345
Beginning balance (in shares) at Mar. 31, 2022					0	73,440,800	34,271,766
Beginning balance at Mar. 31, 2022	1,242,302			773,948	$ 0	$ 73	$ 34	967,093	(193,252)	468,354
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense - equity portion	2,693			2,693				2,693
Issuance of Series A Convertible Preferred Stock, net of offering costs (in shares)					280,000
Issuance of Series A Convertible Preferred Stock, net of offering costs of $674	279,326			279,326				279,326
Shares issued in connection with Acquisition (in shares)						5,650,977
Shares issued in connection with Acquisition	77,757			77,757		$ 6		77,751
Vesting of restricted stock units and performance units, net of taxes paid (in shares)						115,521
Shares retained by the Company in exchange for payment of recipient mandatory tax withholdings (in shares)						48,232
Shares retained by the Company in exchange for payment of recipient mandatory tax withholdings	(719)			(719)				(719)
Cancellation of treasury shares (in shares)						(48,232)
Class B Common Stock converted to Class A Common Stock (in shares)			10,125			10,125	(10,125)
Class B Common Stock converted to Class A Common Stock	0			149				149		(149)
Net income (loss)	218,025			144,885					144,885	73,140
Ending balance (in shares) at Jun. 30, 2022					280,000	79,217,423	34,261,641
Ending balance at Jun. 30, 2022	$ 1,819,384			$ 1,278,039	$ 0	$ 79	$ 34	$ 1,326,293	$ (48,367)	$ 541,345

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities:
Net income (loss)	$ 166,148	$ (26,387)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization	100,789	50,434
Accretion of asset retirement obligations	1,105	593
Settlement of asset retirement obligations	(475)	(53)
Gain on sale of oil and gas properties	0	(348)
Gain on sale of office and other equipment	(46)	(114)
Total loss on derivative contracts, net	201,387	84,438
Operating portion of net cash paid in settlement of derivative contracts	(110,785)	(25,427)
Stock-based compensation - equity portion	4,994	7,741
Deferred income taxes	20,546	(794)
Amortization of deferred financing costs	2,069	339
Changes in assets and liabilities:
(Increase) decrease in accounts receivable	(184,315)	(4,181)
(Increase) decrease in prepaid expenses and other current assets	(11,103)	(114)
Increase (decrease) in accounts payable and accrued expenses	71,454	8,352
Increase (decrease) in revenues and royalties payable	85,570	1,795
Increase (decrease) in advances	(9,661)	(2,830)
Net cash provided by operating activities	337,677	93,444
Cash flows from investing activities:
Acquisition of oil and gas properties, net of cash acquired	(1,035,289)	(187,803)
Additions to oil and gas properties	(180,381)	(28,238)
Additions to office and other equipment	(1,356)	(370)
Proceeds from sales of oil and gas properties	0	200
Net cash used in investing activities	(1,217,026)	(216,211)
Cash flows from financing activities:
Proceeds from borrowings under Credit Agreement	1,471,572	360,078
Repayments of borrowings under Credit Agreement	(1,396,572)	(233,718)
Proceeds from issuance of 8% Senior Notes due 2027, net	537,250	0
Proceeds from issuance of Series A Convertible Preferred Stock, net of offering costs of $674	279,326	0
Cash paid related to the exchange and cancellation of Class A Common Stock	(4,617)	(2,821)
Cash paid for finance leases	0	(70)
Deferred financing costs	(11,623)	(1,718)
Net cash provided by financing activities	875,336	121,751
Net decrease in cash	(4,013)	(1,016)
Cash at beginning of period	4,013	1,494
Cash at end of period	0	478
Cash paid for:
Interest	9,468	4,272
Income taxes	625	797
Non-cash investing and financing activities:
Accrued capital expenditures	44,285	11,416
Lease asset additions - ASC 842	678	0
Asset retirement obligations	284	161
Chisholm Acquisition
Non-cash investing and financing activities:
Class A Common Stock issued in Acquisition	249,515	0
Bighorn Acquisition
Non-cash investing and financing activities:
Class A Common Stock issued in Acquisition	77,757	0
IRM Acquisition
Non-cash investing and financing activities:
Class A Common Stock issued in Acquisition	$ 0	$ 76,572

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Equity (Parenthetical) - USD ($) $ in Thousands		3 Months Ended	6 Months Ended
	Apr. 14, 2022	Jun. 30, 2022	Jun. 30, 2022
Statement of Stockholders' Equity [Abstract]
Offering costs	$ 200	$ 674	$ 674

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands		3 Months Ended	6 Months Ended
	Apr. 14, 2022	Jun. 30, 2022	Jun. 30, 2022	Apr. 12, 2022
Offering costs	$ 200	$ 674	$ 674
Senior Notes | 8.000% Senior Notes Due 2027
Interest rate, stated percentage				8%

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2022
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 and New Mexico. 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 2021 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, 2021 is derived from the audited Consolidated Financial Statements at that date.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2022
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 six months ended June 30, 2022. 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 fixed price swap agreements, costless collars, deferred premium put options 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” or “performance units”) 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 June 30, 2022. The following table summarizes the fair value of the Company’s financial assets and liabilities, by level within the fair-value hierarchy (in thousands) : June 30, 2022 Level 1 Level 2 Level 3 Total Financial assets Derivative asset - current $ — $ 3,327 $ — $ 3,327 Derivative asset - noncurrent — 3,523 — 3,523 Total financial assets $ — $ 6,850 $ — $ 6,850 Financial liabilities Derivative liability - current $ — $ 122,067 $ — $ 122,067 Derivative liability - noncurrent — 19,761 — 19,761 Share-based compensation liability - noncurrent — 12,898 — 12,898 Total financial liabilities $ — $ 154,726 $ — $ 154,726 December 31, 2021 Financial assets Derivative asset - current $ — $ 1,348 $ — $ 1,348 Derivative asset - noncurrent — 157 — 157 Total financial assets $ — $ 1,505 $ — $ 1,505 Financial liabilities Derivative liability - current $ — $ 45,310 $ — $ 45,310 Derivative liability - noncurrent — 571 — 571 Share-based compensation liability - current — 7,835 — 7,835 Share-based compensation liability - noncurrent — 6,324 — 6,324 Total financial liabilities $ — $ 60,040 $ — $ 60,040 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. 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, 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. No triggering events that require assessment were observed during the six months ended June 30, 2022. See further discussion in Note 5. Oil and Natural Gas Properties . Items Not Recorded at Fair Value The carrying amounts reported on the unaudited consolidated balance sheets for cash, accounts receivable, prepaid expenses, other current assets accounts payable, revenues and royalties payable, accrued expenses and other current liabilities approximate their fair values.

Derivative Financial Instrument

Derivative Financial Instruments	6 Months Ended
	Jun. 30, 2022
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, costless collars and deferred premium put options. 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. A deferred premium put option represents a bought floor except, unlike a standard put option, the premium is not paid until the expiration of the option. 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, 2024. 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 June 30, 2022: Price Swaps Period Commodity Volume Weighted Average Price Q3 - Q4 2022 Crude Oil 2,162,000 $ 66.70 Q1 - Q4 2023 Crude Oil 1,277,500 $ 76.20 Q3 - Q4 2022 Crude Oil Basis Swap (1) 3,082,000 $ 0.61 Q1 - Q4 2023 Crude Oil Basis Swap (1) 4,743,500 $ 0.59 Q3 - Q4 2022 Natural Gas 5,159,500 $ 3.52 Q1 - Q4 2023 Natural Gas 3,670,000 $ 3.35 Q3 - Q4 2022 Natural Gas Basis Swap (2) 3,680,000 $ (0.33) Q1 - Q4 2023 Natural Gas Basis Swap (2) 36,500,000 $ (1.47) Q1 - Q4 2024 Natural Gas Basis Swap (2) 36,600,000 $ (1.05) (1) The basis differential price is between WTI Midland Crude and the WTI NYMEX. (2) The basis differential price is between W. Texas (WAHA) and the Henry Hub NYMEX. Costless Collars Period Commodity Volume Bought Floor Sold Ceiling Q3 - Q4 2022 Crude Oil Costless Collar 1,357,000 $ 71.86 $ 91.39 Q1 - Q4 2023 Crude Oil Costless Collar 2,828,000 $ 65.74 $ 91.90 Q3 - Q4 2022 Natural Gas Costless Collar 11,400,500 $ 4.08 $ 6.48 Q1 - Q4 2023 Natural Gas Costless Collar 14,133,000 $ 3.46 $ 5.34 Deferred Premium Puts Period Commodity Volume $/Bbl (Put Price) $/Bbl (Net of Premium) Q3 - Q4 2022 Crude Oil 253,000 $ 80.00 $ 75.79 Q1 - Q4 2023 Crude Oil 638,000 $ 70.00 $ 62.85 The following table summarizes the location and fair value amounts of all derivative instruments in the Condensed Consolidated Balance Sheets as well as the gross recognized derivative assets, liabilities, and amounts offset in the Condensed Consolidated Balance Sheets (in thousands) : June 30, 2022 December 31, 2021 Derivatives not Balance Sheet Location Gross Gross Net Gross Gross Net Commodity contracts Derivative asset - current $ 18,502 $ (15,175) $ 3,327 $ 3,191 $ (1,843) $ 1,348 Commodity contracts Derivative liability - current $ 137,242 $ (15,175) $ 122,067 $ 47,153 $ (1,843) $ 45,310 Commodity contracts Derivative asset - noncurrent $ 15,819 $ (12,296) $ 3,523 $ 2,721 $ (2,564) $ 157 Commodity contracts Derivative liability - noncurrent $ 32,057 $ (12,296) $ 19,761 $ 3,135 $ (2,564) $ 571 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 Six Months Ended Statement of Cash Flows Location Statement of Operations Location 2022 2021 2022 2021 Unrealized gain (loss) Not separately presented Not separately presented $ 29,192 $ (36,653) $ (90,602) $ (59,011) Realized loss Operating portion of net cash paid in settlement of derivative contracts Not separately presented (79,099) (14,522) (110,785) (25,427) Total loss on derivative contracts, net Loss on derivative contracts, net $ (49,907) $ (51,175) $ (201,387) $ (84,438)

Acquisitions and Divestitures

Acquisitions and Divestitures	6 Months Ended
	Jun. 30, 2022
Business Combination, Asset Acquisition and Divestitures [Abstract]
Acquisitions and Divestitures	Acquisitions and Divestitures Titus Agreement On June 27, 2022, Earthstone and EEH, together as buyer, and Titus Oil & Gas Production, LLC, a Delaware limited liability company, Titus Oil & Gas Corporation, a Delaware corporation, Lenox Minerals, LLC, a Delaware limited liability company and Lenox Mineral Title Holdings, Inc., a Delaware corporation (collectively, “Titus I”), as seller, entered into a purchase and sale agreement (the “Titus I Purchase Agreement”). Pursuant to the Titus I Purchase Agreement, EEH or its designated wholly-owned subsidiary will acquire (the “Titus I Acquisition”) interests in oil and gas leases and related property of Titus I located in the Northern Delaware Basin of New Mexico, for a purchase price (the “Titus I Purchase Price”) of approximately $270 million in cash and 1,811,132 shares (the “Titus I Shares”) of Class A common stock, $0.001 par value per share of Earthstone (the “Class A Common Stock”). The Titus I Purchase Price is subject to customary purchase price adjustments with an effective date of August 1, 2022, with closing anticipated in the third quarter of 2022. On June 29, 2022, in connection with the Titus I Purchase Agreement, EEH deposited approximately $18.8 million (the “Titus I Deposit”) in cash into a third-party escrow account as a deposit pursuant to the Titus I Purchase Agreement, which will be credited against the purchase price upon closing of the Titus I Acquisition. The Titus I Deposit is included in Other noncurrent assets in the Condensed Consolidated Balance Sheet as of June 30, 2022 and in Acquisition of oil and gas properties, net of cash acquired, on the Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2022. Also on June 27, 2022, Earthstone and EEH, as buyer, and Titus Oil & Gas Production II, LLC, a Delaware limited liability company, Lenox Minerals II, LLC, a Delaware limited liability company and Lenox Mineral Holdings II, Inc., a Delaware limited liability company (collectively, “Titus II”), as seller, entered into a purchase and sale agreement (the “Titus II Purchase Agreement” and together with the Titus I Purchase Agreement, the “Purchase Agreements”). Pursuant to the Titus II Purchase Agreement, EEH or its designated wholly-owned subsidiary will acquire (the “Titus II Acquisition” and together with the Titus I Acquisition, the “Acquisitions”) interests in oil and gas leases and related property of Titus II located in the Northern Delaware Basin of New Mexico, for a purchase price (the “Titus II Purchase Price”) of approximately $305 million in cash and 2,047,811 shares (the “Titus II Shares” and together with the Titus I Shares, the “Titus Shares”) of Class A Common Stock. The Titus II Purchase Price is subject to customary purchase price adjustments with an effective date of August 1, 2022, with closing anticipated in the third quarter of 2022. On June 29, 2022, in connection with the Titus II Purchase Agreement, EEH deposited approximately $21.2 million (the “Titus II Deposit”) in cash into a third-party escrow account as a deposit pursuant to the Titus II Purchase Agreement, which will be credited against the purchase price upon closing of the Titus II Acquisition. The Titus II Deposit is included in Other noncurrent assets in the Condensed Consolidated Balance Sheet as of June 30, 2022 and in Acquisition of oil and gas properties, net of cash acquired, on the Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2022. Bighorn Acquisition On January 30, 2022, Earthstone, EEH, and Bighorn Asset Company, LLC, a Delaware limited liability company (“Bighorn”), as seller, entered into a purchase and sale agreement (the “Bighorn Agreement”). Pursuant to the Bighorn Agreement, EEH acquired (the “Bighorn Acquisition”) interests in oil and gas leases and related property of Bighorn located in the Midland Basin, Texas (the "Bighorn Assets”). On April 14, 2022, Earthstone, EEH and Bighorn consummated the transactions contemplated in the Bighorn Agreement whereby EEH acquired the Bighorn Assets for aggregate consideration of approximately $641.8 million in cash, net of preliminary and customary purchase price adjustments and remains subject to final post-closing settlement between EEH and Bighorn, and 5,650,977 shares Class A Common Stock. The Bighorn Acquisition was accounted for as an asset acquisition. The fair value of the consideration paid by us and allocation of that amount to the underlying assets acquired, on a relative fair value basis, was recorded on our books as of the date of the closing of the Bighorn Acquisition. Additionally, costs directly related to the Bighorn Acquisition were capitalized as a component of the purchase price. 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, on a relative fair value basis. 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 Class A Common Stock issued 5,650,977 Class A Common Stock price as of April 14, 2022 $ 13.76 Class A Common Stock consideration 77,757 Cash consideration (1) 640,157 Direct transaction costs (2) 1,619 Total consideration transferred $ 719,533 Fair value of assets acquired: Current assets $ 827 Oil and gas properties 762,045 Amount attributable to assets acquired $ 762,872 Fair value of liabilities assumed: Suspense payable 27,062 Other current liabilities 3,083 Noncurrent liabilities - ARO 13,194 Amount attributable to liabilities assumed $ 43,339 (1) Includes preliminary customary purchase price adjustments. (2) Represents $1.6 million of estimated transaction costs associated with the Bighorn Acquisition which have been capitalized in accordance with ASC 805-50. Chisholm Acquisition On December 15, 2021, Earthstone, EEH, as buyer, Chisholm Energy Operating, LLC (“OpCo”) and Chisholm Energy Agent, Inc. (“Agent” and collectively with OpCo, “Chisholm”), collectively as seller, entered into a Purchase and Sale Agreement (the “Chisholm Agreement”), which provided that EEH would acquire (the “Chisholm Acquisition”) interests in oil and gas leases and related property of Chisholm located in Lea County and Eddy County, New Mexico (the “Chisholm Assets”). On February 15, 2022, Earthstone, EEH and Chisholm consummated the transactions contemplated in the Chisholm Agreement whereby EEH acquired the Chisholm Assets for aggregate consideration, as adjusted for preliminary and customary purchase price adjustments, consisting of: (i) approximately $313.8 million in cash, net of customary purchase price adjustments, paid at the closing of the Chisholm Acquisition, (ii) $70 million in cash paid on April 15, 2022 and (iii) 19,417,476 shares of the Class A Common Stock. The fair value of each share of Class A Common Stock was determined using the closing sales price of $12.85 per share on February 15, 2022. A Significant Shareholder, as identified below, was the majority shareholder of Chisholm as of the closing of the Chisholm Acquisition. See Note 12. Related Party Transactions for further discussion. The Chisholm 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 Chisholm 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 Class A Common Stock issued 19,417,476 Class A Common Stock price as of February 15, 2022 $ 12.85 Class A Common Stock consideration 249,515 Cash consideration 383,843 Total consideration transferred $ 633,358 Fair value of assets acquired: Oil and gas properties $ 641,398 Amount attributable to assets acquired $ 641,398 Fair value of liabilities assumed: Other current liabilities $ 2,069 Asset retirement obligation - noncurrent 5,971 Amount attributable to liabilities assumed $ 8,040 IRM Acquisition On January 7, 2021, the Company completed the acquisition (the “IRM Acquisition”) of all of the issued and outstanding limited liability company interests of Independence Resources Management, LLC (“IRM”) and certain of its wholly owned subsidiaries for consideration consisting of the following: (i) net cash of approximately $140.5 million (the “Cash Consideration”) and (ii) 12,719,594 shares of 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 IRM Acquisition has been accounted for as a business combination using the acquisition method of accounting, with Earthstone identified as the acquirer. The 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. 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 Class A Common Stock issued 12,719,594 Class A Common Stock price as of January 7, 2021 $ 6.02 Class A Common Stock consideration 76,572 Cash consideration 140,507 Total consideration transferred $ 217,079 Fair value of assets acquired: Cash $ 4,763 Other current assets 11,524 Oil and gas properties 224,112 Other non-current assets 252 Amount attributable to assets acquired $ 240,651 Fair value of liabilities assumed: Derivative liability $ 10,177 Other current liabilities 5,196 Asset retirement obligation - noncurrent 8,199 Amount attributable to liabilities assumed $ 23,572 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) $18.8 million in cash, net of customary purchase price adjustments, 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) $41.4 million in cash, net of customary purchase price adjustments, and (ii) 1.5 million shares of Class A Common Stock. A Significant Shareholder, as identified 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. 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 acquired 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 Class A Common Stock issued 6,200,000 Class A Common Stock price as of July 20, 2021 $ 9.97 Class A Common Stock consideration 61,814 Cash consideration (1) 60,159 Direct transaction costs (2) 1,715 Total consideration transferred $ 123,688 Fair value of assets acquired: Oil and gas properties $ 124,288 Amount attributable to assets acquired $ 124,288 Fair value of liabilities assumed: Noncurrent liabilities - asset retirement obligations 600 Amount attributable to liabilities assumed $ 600 (1) Includes customary purchase price adjustments. (2) Represents $1.7 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 Bighorn Acquisition, Chisholm Acquisition, IRM Acquisition and Tracker/Sequel Acquisitions had been completed as of January 1, 2021. The unaudited supplemental pro forma financial information was derived from the historical consolidated and combined statements of operations for Bighorn, Chisholm, 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 supplemental pro forma results of operations (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Revenue $ 501,601 $ 291,725 $ 893,604 $ 512,796 Income (loss) before taxes 261,050 (3,675) 333,366 (12,522) Net income (loss) 238,362 (3,544) 312,211 (12,319) Less: Net income (loss) attributable to noncontrolling interest 76,673 (1,528) 102,865 (5,454) Net income (loss) attributable to Earthstone Energy, Inc. 161,689 (2,016) 209,346 (6,865) Pro forma net income (loss) per common share attributable to Earthstone Energy, Inc.: Basic $ 2.07 $ (0.03) $ 2.95 $ (0.09) Diluted $ 1.62 $ (0.03) $ 2.54 $ (0.09) The Company has included in its Condensed Consolidated Statements of Operations, revenues of $167.3 million and operating expenses of $50.9 million for the period April 14, 2022 to June 30, 2022 related to the Bighorn Acquisition. The Company has included in its Condensed Consolidated Statements of Operations, revenues of $128.1 million and operating expenses of $46.3 million for the period February 15, 2022 to June 30, 2022 related to the Chisholm Acquisition. During the three and six months ended June 30, 2022, the Company recorded $0.3 million and $10.3 million, respectively, of legal and professional fees related to the Chisholm Acquisition which are included in Transaction costs in the Condensed Consolidated Statements of Operations. Foreland-BCC Acquisition On November 2, 2021, Earthstone, EEH and Foreland Investments LP, a Delaware limited partnership (“Foreland”), consummated the transactions contemplated in the Purchase and Sale Agreement dated as of September 30, 2021 by and among Earthstone, EEH and Foreland (the “Foreland Purchase Agreement”). Net of customary purchase price adjustments, EEH acquired (the “Foreland Acquisition”) interests in oil and gas leases and related property of Foreland located in Irion County and Crockett County, Texas, for a purchase price consisting of: (i) $13.4 million in cash and (ii) 2,611,111 shares of Class A Common Stock. Also, on November 2, 2021, Earthstone, EEH and BCC-Foreland LLC, a Delaware limited liability company (“BCC”), consummated the transactions contemplated in the Purchase and Sale Agreement dated as of September 30, 2021 by and among Earthstone, EEH and BCC (the “BCC Purchase Agreement”). Net of customary purchase price adjustments, EEH acquired (the “BCC Acquisition” and with the Foreland Acquisition, the “Foreland-BCC Acquisition”) certain well-bore interests and related equipment held by BCC that were part of a joint development agreement between Foreland, Foreland Operating, LLC, and BCC involving portions of the acreage covered by the Foreland Purchase Agreement for a purchase price of $20.5 million in cash. 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 $45.2 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 acquired oil and natural gas properties. Eagle Ford Divestiture

Oil and Natural Gas Properties

Oil and Natural Gas Properties	6 Months Ended
	Jun. 30, 2022
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 six months ended June 30, 2022, depletion expense for oil and gas producing property and related equipment was $66.2 million and $100.3 million, respectively. For the three and six months ended June 30, 2021, depletion expense for oil and gas producing property and related equipment was $25.9 million and $50.1 million, respectively. Our accrual basis capital expenditures for the three and six months ended June 30, 2022 were as follows ( in thousands ): Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 Drilling and completions $ 119,300 $ 201,300 Leasehold costs 151 260 Total capital expenditures $ 119,451 $ 201,560 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 six months ended June 30, 2022 and 2021.

Noncontrolling Interest

Noncontrolling Interest	6 Months Ended
	Jun. 30, 2022
Noncontrolling Interest [Abstract]
Noncontrolling Interest	Noncontrolling Interest Earthstone consolidates the financial results of EEH and its subsidiaries and records a noncontrolling interest for the economic interest in Earthstone held by the members of EEH other than Earthstone and Lynden US. Net income (loss) attributable to noncontrolling interest in the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2022 and 2021 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 June 30, 2022 and December 31, 2021 represents the portion of net assets of the Company attributable to the members of EEH other than Earthstone and Lynden US. The term “EEH Unit” means the units of limited liability company interests of EEH denominated as common units. The following table presents the changes in noncontrolling interest for the six months ended June 30, 2022: EEH Units Held % EEH Units Held % Total EEH As of December 31, 2021 53,467,307 60.9 % 34,344,532 39.1 % 87,811,839 EEH Units issued in connection with the Chisholm Acquisition 19,417,476 — 19,417,476 EEH Units issued in connection with the Bighorn Acquisition 5,650,977 — 5,650,977 EEH Units and Class B Common Stock converted to Class A Common Stock 82,891 (82,891) — EEH Units issued in connection with the vesting of restricted stock units and performance-based units 598,772 — 598,772 As of June 30, 2022 79,217,423 69.8 % 34,261,641 30.2 % 113,479,064

Net Income (Loss) Per Common Sh

Net Income (Loss) Per Common Share	6 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
Net Income (Loss) Per Common Share	Net Income (Loss) Per Common ShareNet 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 Six Months Ended (In thousands, except per share amounts) 2022 2021 2022 2021 Net income (loss) attributable to Earthstone Energy, Inc. $ 144,885 $ (8,871) $ 111,407 $ (14,704) Net income (loss) attributable to Earthstone Energy, Inc. from assumed conversion of Series A Preferred Stock (2) 4,351 — 4,351 — Net income (loss) attributable to Earthstone Energy, Inc. - Diluted $ 149,236 $ (8,871) $ 115,758 $ (14,704) Net income (loss) per common share attributable to Earthstone Energy, Inc.: Basic $ 1.85 $ (0.20) $ 1.57 $ (0.34) Diluted $ 1.46 $ (0.20) $ 1.37 $ (0.34) Weighted average common shares outstanding Basic 78,291,037 44,127,718 70,909,353 43,457,043 Add potentially dilutive securities: Unvested restricted stock units (1) 493,600 — 506,760 — Unvested performance units (1) 2,003,778 — 1,979,770 — Series A Preferred Stock (2) 21,621,621 — 10,870,539 — Diluted weighted average common shares outstanding 102,410,036 44,127,718 84,266,422 43,457,043 (1) For the three and six months ended June 30, 2022 and 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 three and six months ended June 30, 2021, there were no dilutive effects related to unvested restricted stock units or performance units due to the losses for those periods. (2) On April 14, 2022, Earthstone issued 280,000 shares of Series A Convertible Preferred Stock which automatically converted into 25,225,225 shares of Class A Common Stock on July 6, 2022. Under the “If-Converted” method, the shares would have been assumed issued on April 14, 2022 which would have resulted in an additional allocation of Net income (loss) attributable to Earthstone Energy, Inc. of $4.4 million for both the three and six months ended June 30, 2022. The Class B Common Stock, par value $0.001 per share of Earthstone (the “Class B Common Stock” and with the Class A Common Stock, the “Common Stock”) has been excluded, as its conversion would eliminate noncontrolling interest and net income attributable to noncontrolling interest of $73.1 million for the three months ended June 30, 2022 and net income attributable to noncontrolling interest of $54.7 million for the six months ended June 30, 2022 would be added back to Net income attributable to Earthstone Energy, Inc. for the periods then ended, having no dilutive effect on Net income 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 $7.0 million for the three months ended June 30, 2021 and net loss attributable to noncontrolling interest of $11.7 million for the six months ended June 30, 2021 would be added back to Net loss attributable to Earthstone Energy, Inc. for the periods then ended, having no dilutive effect on Net loss per common share attributable to Earthstone Energy, Inc.

Common Stock and Preferred Stoc

Common Stock and Preferred Stock	6 Months Ended
	Jun. 30, 2022
Equity [Abstract]
Common Stock and Preferred Stock	Common Stock and Preferred Stock Class A Common Stock At June 30, 2022 and December 31, 2021, there were 79,217,423 and 53,467,307 shares of Class A Common Stock issued and outstanding, respectively. In connection with the Chisholm Acquisition, on February 15, 2022, Earthstone issued 19,417,476 shares of Class A Common Stock valued at approximately $249.5 million on that date. In connection with the Bighorn Acquisition, on April 14, 2022, Earthstone issued 5,650,977 shares of Class A Common Stock valued at approximately $77.8 million on that date. During the three and six months ended June 30, 2022, 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 issued 163,753 and 933,896 shares, respectively, of Class A Common Stock, of which 48,232 and 335,124 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 six months ended June 30, 2021, (1) in connection with the IRM Acquisition, on January 7, 2021, Earthstone issued 12,719,594 shares of Class A Common Stock valued at approximated $76.6 million on that date, (2) as a result of the vesting and settlement of performance units and restricted stock units under the 2014 Plan, Earthstone issued 221,401 and 487,660 shares, respectively, of Class A Common Stock, of which 66,343 and 145,654 shares, respectively, of Class A Common Stock were retained as treasury stock and canceled to satisfy the related employee income tax liability and (3) 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 June 30, 2022 and December 31, 2021, there were 34,261,641 and 34,344,532 shares of Class B Common Stock issued and outstanding, respectively. Each share of Class B Common Stock, together with one EEH Unit, is convertible into one share of Class A Common Stock. During the three and six months ended June 30, 2022, 10,125 and 82,891 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 six months ended June 30, 2021, 33,463 and 611,494 shares, respectively, of Class B Common Stock and EEH Units were exchanged for an equal number of shares of Class A Common Stock. Series A Convertible Preferred Stock On January 30, 2022, Earthstone entered into a securities purchase agreement (the “SPA”) with EnCap Energy Capital Fund XI, L.P. (“EnCap Fund XI”), an affiliate of EnCap Investments L.P. (“EnCap”), and Cypress Investments, LLC, a fund managed by Post Oak Energy Capital, LP (“Post Oak” and collectively with EnCap Fund XI, the “Investors”) to sell, in a private placement (the “Private Placement”), 280,000 shares of newly authorized convertible preferred stock, $0.001 par value per share (the “Series A Preferred Stock”), each share of which would be convertible into 90.0900900900901 shares of Class A Common Stock for anticipated gross proceeds of $280.0 million, at a price of $1,000.00 per share of Series A Preferred Stock (or $11.10 per share of Class A Common Stock on an as-converted basis). The Private Placement was contingent upon the closing of the Bighorn Acquisition. The Company used the net proceeds from the sale of the Series A Preferred Stock to partially fund the Bighorn Acquisition. See Note 12. Related Party Transactions for further discussion. On April 14, 2022, Earthstone, EnCap Fund XI and Cypress consummated the sale and issuance of 280,000 shares of Series A Preferred Stock pursuant to the SPA in exchange for cash proceeds of $279.3 million, net of offering costs. At June 30, 2022 and December 31, 2021, there were 280,000 and no shares of the Series A Preferred Stock issued and outstanding, respectively. On July 6, 2022, the Series A Preferred Stock automatically converted into 25,225,225 shares of Class A Common Stock. As such, the Series A Preferred Stock is no longer outstanding and the Investors now hold the 25,225,225 shares of Class A Common Stock issued upon the conversion of the Series A Preferred Stock. On July 15, 2022, Earthstone filed a certificate of elimination with the Secretary of State of the State of Delaware eliminating all provisions of the certificate of designations previously filed by Earthstone with the Secretary of State of the State of Delaware on April 13, 2022 related to the Series A Preferred Stock.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2022
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 June 30, 2022, 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 six months ended June 30, 2022: Shares Weighted-Average Grant Date Fair Value Unvested RSUs at December 31, 2021 771,817 $ 5.91 Granted 487,215 $ 11.20 Forfeited (10,100) $ 7.08 Vested (325,771) $ 7.70 Unvested RSUs at June 30, 2022 923,161 $ 8.06 As of June 30, 2022, there was $8.4 million of unrecognized compensation expense related to the RSU awards which will be recognized over a weighted average period of 1.09 years. For the three and six months ended June 30, 2022, Stock-based compensation related to RSUs was $1.5 million and $2.7 million, respectively. For the three and six months ended June 30, 2021, Stock-based compensation related to RSUs was $1.2 million and $2.7 million, respectively. Performance Units The table below summarizes PSU activity for the six months ended June 30, 2022: Shares Weighted-Average Grant Date Fair Value Unvested PSUs at December 31, 2021 2,751,725 $ 8.42 Granted 472,485 $ 19.42 Vested (608,125) $ 9.30 Unvested PSUs at June 30, 2022 2,616,085 $ 10.20 On February 1, 2022, the Board of Directors of Earthstone (the “Board”) granted 472,485 PSUs (the “2022 PSUs”) to certain officers pursuant to the 2014 Plan (the “2022 Grant”). The 2022 PSUs are expected to be paid in shares of Class A Common Stock upon the achievement by Earthstone over a period commencing on January 1, 2022 and ending on December 31, 2024 (the “Performance Period”) of certain performance criteria established by the Board. The Company classifies these awards as equity awards as they are expected to be settled in shares. In the event that a PSU grant is expected to be settled in cash, it is alternatively classified as a liability award. The 2022 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, 2022. 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 23.9% or greater 2 14.5% 1 8.4% 0.5 Less than 8.4% 0 The Company accounts for these awards as market-based awards which are valued 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 2022 PSUs, assuming a risk-free rate of 1.4% and volatility of 86.0%, the Company calculated the weighted average grant date fair value per PSU to be $19.42. On January 27, 2021, the Board granted 1,099,800 PSUs to certain officers pursuant to the 2014 Plan (the “2021 PSUs”). The 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 of certain performance criteria established by the Board. The Company classifies these awards as liability awards as they are expected to be paid in cash. As of June 30, 2022 and December 31, 2021, $12.9 million and $6.3 million, respectively, have been included in Other noncurrent liabilities in the Condensed Consolidated Balance Sheets related to the 2021 PSUs. On January 28, 2019, the Board granted 669,550 PSUs to certain named executive officers pursuant to the 2014 Plan (the “2019 PSUs”). The 2019 PSUs were payable in shares of Class A Common Stock based upon the achievement by Earthstone over a period commencing on February 1, 2019 and ending on January 31, 2022 of performance criteria established by the Board. On January 31, 2022, the Company settled the remaining 608,125 PSUs, net of forfeitures, at a rate of 1.97x. 1.0x was settled through the issuance of 608,125 shares of Class A Common Stock and the remainder was settled in cash. As of June 30, 2022, there was $22.5 million of unrecognized compensation expense related to all PSU awards which will be amortized over a weighted average period of 0.94 years.

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 30, 2022
Debt Disclosure [Abstract]
Long-term debt	Long-Term Debt Credit Agreement 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 Agreement”), which replaced the prior credit facility, which was terminated on November 21, 2019. On January 30, 2022, Earthstone, EEH, as Borrower, Wells Fargo as Administrative Agent, the lenders party thereto (the “Lenders”) and the guarantors party thereto entered into an amended and restated Fifth Amendment (the “Fifth Amendment”) to the Credit Agreement. Among other things, the Amendment increased the borrowing base and corresponding elected commitments from $650 million to $825 million upon the closing of the Chisholm Agreement. On April 12, 2022, EEH issued $550.0 million aggregate principal amount of unsecured 8.000% senior notes due 2027 (the “Notes”). EEH received net proceeds from the offering (the “Notes Offering”) which reduced the elected commitments by $500 million. On April 14, 2022, in connection with the Notes Offering, the Company voluntarily elected to reduce commitments under the borrowing base of the Credit Agreement to $800 million. On June 2, 2022, the Company, EEH, Wells Fargo, the Lenders and the guarantors party thereto entered into an amendment (the “Sixth Amendment”) to the Credit Agreement. Among other things, the Amendment extended the maturity of the Credit Agreement to June 2027, increased the borrowing base from $1.325 billion to $1.4 billion and reduced the interest rate for amounts outstanding. Elected commitments under the Credit Agreement remain at $800 million. The next regularly scheduled redetermination of the borrowing base is expected to occur on or around November 1, 2022. Subsequent redeterminations are expected to occur on or about each May 1st and November 1st thereafter. The amounts borrowed under the Credit Agreement bear annual interest rates at either (a) the adjusted SOFR Rate (the “Adjusted Term SOFR Rate”) plus 2.25% to 3.25% 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 Term SOFR Rate for an interest rate period of one month plus 1.0%, (ii) plus 1.25% to 2.25%, depending on the amount borrowed under the Credit Agreement. Principal amounts outstanding under the Credit Agreement are due and payable in full at maturity on June 2, 2027. All of the obligations under the Credit Agreement, and the guarantees of those obligations, are secured by substantially all of EEH’s assets. Additional payments due under the Credit Agreement include paying a commitment fee of 0.375% to 0.50% per year, depending on the amount borrowed under the Credit Agreement, to the Lenders in respect of the unutilized commitments thereunder. EEH is also required to pay customary letter of credit fees. The Credit Agreement contains a number of covenants that, among other things, restrict, subject to certain exceptions, EEH’s ability to incur additional indebtedness, create liens on assets, make investments, 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 Agreement 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, for the period ended June 30, 2022, was calculated by multiplying EBITDAX for the fiscal quarter ending on such date by four. 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 Agreement contains customary affirmative covenants and defines events of default to include failure to pay principal or interest, breach of covenants, breach of representations and warranties, insolvency, judgment default and 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 June 30, 2022, EEH was in compliance with the covenants under the Credit Agreement. As of June 30, 2022, $395.0 million of borrowings were outstanding under the Credit Agreement, bearing annual interest of 4.584%, resulting in an additional $405.0 million of borrowing base availability under the Credit Agreement. At December 31, 2021, there were $320.0 million of borrowings outstanding under the Credit Agreement. For the three and six months ended June 30, 2022, interest on borrowings under the Credit Agreement averaged 4.42% and 4.04% per annum, respectively, which excluded commitment fees of $0.0 million and $0.2 million, respectively, and amortization of deferred financing costs of $0.9 million and $1.6 million, respectively. For the three and six months ended June 30, 2021, interest on borrowings under the Credit Agreement averaged 3.33% and 3.36% per annum, respectively, which excluded commitment fees of $0.2 million and $0.4 million, respectively, and amortization of deferred financing costs of $0.2 million and $0.3 million, respectively. During the three and six months ended June 30, 2022, the Company capitalized $5.7 million and $11.6 million, respectively, of costs associated with the Credit Agreement. During the three and six months ended June 30, 2021, the Company capitalized $0.8 million and $1.8 million, respectively, of costs associated with the Credit Agreement. Related to the Credit Agreement, the Company had debt issuance costs of $18.3 million and $6.7 million, net of accumulated amortization of $4.9 million and $3.3 million, as of June 30, 2022 and December 31, 2021, respectively. The Company’s policy is to capitalize the financing costs associated with the Credit Agreement and amortize those costs on a straight-line basis over the term of the associated debt. The capitalized costs related to the Credit Agreement are included in Other noncurrent assets in the Condensed Consolidated Balance Sheets. 8.000% Senior Notes EEH received net proceeds from the Notes Offering of approximately $537.2 million (after deducting underwriting discounts and commissions) which was used primarily to fund the Bighorn Acquisition and the remainder for general corporate purposes. On April 12, 2022, in connection with the completion of the Notes Offering, EEH entered into an indenture, dated as of April 12, 2022 (the “Indenture”), among EEH, the guarantors party thereto and U.S. Bank Trust Company, National Association, as trustee. The Notes will mature on April 15, 2027 with interest accruing at a rate of 8.000% per annum payable semi-annually in cash in arrears on April 15 and October 15 of each year, commencing October 15, 2022. Before April 15, 2024, EEH may redeem some or all of the Notes at a redemption price equal to 100% of the aggregate principal amount of the Notes redeemed plus the “applicable premium” as of and accrued and unpaid interest, if any, to, but excluding, the date of redemption. EEH may redeem, at its option, all or part of the Notes at any time on or after April 15, 2024, at the applicable redemption price plus accrued and unpaid interest to, but not including, the date of redemption. Further, before April 15, 2024, EEH may on one or more occasions redeem up to 35% of the aggregate principal amount of the Notes in an amount not exceeding the net proceeds from one or more private or public equity offerings at a redemption price of 108.000% of the principal amount of the Notes, plus accrued and unpaid interest to the date of redemption, if at least 65% of the aggregate principal amount of the Notes remains outstanding immediately after such redemption and the redemption occurs within 180 days of the closing date of each such equity offering. Upon a Change of Control (as defined in the Indenture) EEH must offer to repurchase the Notes on terms and conditions set forth in detail in the Indenture. The Notes are guaranteed on a senior unsecured basis by the Company and its subsidiaries (the “Guarantors”) and may be guaranteed by certain of EEH’s future restricted subsidiaries. The Notes are unsecured, rank equally in right of payment with all existing and future senior unsecured indebtedness of EEH and the Guarantors and rank senior in right of payment to any future subordinated indebtedness of EEH and the Guarantors. The Notes will rank effectively junior to all secured indebtedness of EEH and the Guarantors, including indebtedness under EEH’s revolving credit facility, to the extent of the value of the assets securing such indebtedness. The Notes will rank structurally junior in right of payment to all indebtedness and other liabilities, including trade payables, of any future subsidiary of EEH that are not guarantors. The Indenture restricts EEH’s ability and the ability of its Restricted Subsidiaries (as defined in the Indenture), including the Guarantors, to: (i) incur or guarantee additional indebtedness or issue certain types of preferred stock; (ii) pay dividends on capital stock or redeem, repurchase or retire its capital stock or subordinated indebtedness; (iii) transfer or sell assets; (iv) make investments; (v) create certain liens; (vi) enter into agreements that restrict dividends or other payments from its Restricted Subsidiaries to EEH; (vii) consolidate, merge or transfer all or substantially all of its assets; (viii) engage in transactions with affiliates; and (ix) create unrestricted subsidiaries. These covenants are subject to important exceptions and qualifications set forth in the Indenture. If the Notes achieve an Investment Grade Rating (as defined in the Indenture) or better from two of three of Moody’s Investors Service, Inc., S&P Global Ratings, or Fitch Ratings, Inc., many of these covenants will be suspended. The Indenture contains customary events of default (each an “Event of Default”). If an Event of Default occurs and is continuing, the Trustee or the holders of not less than 25% in aggregate principal amount of the outstanding Notes may declare the unpaid principal of, premium, if any, and accrued but unpaid interest on, all the Notes then outstanding to be due and payable. Upon such a declaration, such principal, premium, if any, and interest will be due and payable immediately. If an Event of Default relating to certain events of bankruptcy or insolvency of EEH or any Significant Subsidiary (as defined in the Indenture) occurs, the principal of, premium, if any, and the interest on, all the Notes will become immediately due and payable without any declaration or other act on the part of the Trustee or any holders of the Notes. Under certain circumstances, the holders of a majority in principal amount of the outstanding Notes may rescind any such acceleration with respect to the Notes and its consequences. During the three and six months ended June 30, 2022, the Company capitalized $12.8 million of costs associated with the Notes. No costs associated with the Notes were capitalized during the three and six months ended June 30, 2021. Related to the Notes, the Company had debt issuance costs of $12.2 million, net of accumulated amortization of $0.5 million, as of June 30, 2022. The Company’s policy is to capitalize the financing costs associated with the Notes and amortize those costs on a straight-line basis over the term of the Notes. The capitalized costs associated with the Notes are included in 8.000% Senior Notes due 2027, net in the Condensed Consolidated Balance Sheets. As of June 30, 2022, accrued interest of $9.5 million associated with the Notes was included in Accrued expenses in the Condensed Consolidated Balance Sheets.

Asset Retirement Obligations

Asset Retirement Obligations	6 Months Ended
	Jun. 30, 2022
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligations	Asset Retirement ObligationsThe Company has asset retirement obligations associated with the future plugging and abandonment of oil and gas properties and related facilities. Revisions to the liability typically occur due to changes in the estimated abandonment costs, well economic lives, and the discount rate. The following table summarizes the Company’s asset retirement obligation transactions recorded during the six months ended June 30, 2022 (in thousands) : 2022 Beginning asset retirement obligations $ 15,866 Liabilities incurred 215 Liabilities settled (475) Acquisitions 19,165 Accretion expense 1,105 Revision of estimates 69 Ending asset retirement obligations $ 35,945

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2022
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 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 (the “Significant Shareholders” or separately, each a “Significant Shareholder”). As discussed in Note 4. Acquisitions, the Chisholm Acquisition was consummated on February 15, 2022, whereby the Company acquired the Chisholm Assets for a purchase price of $377.5 million in cash, net of preliminary and customary purchase price adjustments, and 19.4 million shares of Class A Common Stock. A Significant Shareholder was the majority owner of Chisholm as of the closing of the Chisholm Acquisition. The deferred payment of $70 million as of March 31, 2022 was paid on April 15, 2022 and included in Deferred acquisition payment – Chisholm in the Condensed Consolidated Balance Sheet as of March 31, 2022. The issuance of 19.4 million shares of Class A Common Stock in connection with the closing of the Chisholm Agreement was (1) approved by a majority of the voting power of all outstanding disinterested shares of the Common Stock and (2) increased the Significant Stockholder's beneficial ownership of Class A Common Stock from approximately 25% to 36% as of February 15, 2022. As discussed in Note 4. Acquisitions, on March 31, 2021, Earthstone and EEH 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 $18.8 million in cash and 4.7 million shares of Class A Common Stock. A 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 $45.2 million in cash. A 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. As described in Note 8. Common Stock and Preferred Stock, on January 30, 2022, Earthstone entered into the SPA with certain affiliates of EnCap and Post Oak (collectively, the “Investors”) to issue 220,000 shares and 60,000 shares, respectively, of the Series A Preferred Stock. On April 14, 2022, the SPA was consummated resulting in the issuance of the total of 280,000 shares of the Series A Preferred Stock in exchange for cash proceeds of $279.3 million, net of offering costs. On July 6, 2022, the Series A Preferred Stock automatically converted into 25,225,225 shares of Class A Common Stock. The Company paid $0.2 million to one of our Significant Shareholders for reimbursement of certain costs associated with the aforementioned SPA.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal From time to time, the Company may be involved in various legal proceedings and claims in the ordinary course of business. Commitment to Purchase Materials The Company entered into an agreement to purchase certain materials related to its drilling completion activities through 2024 (the “Materials Purchase Agreement”). The Company has already fulfilled its 2022 financial obligation under the Materials Purchase Agreement and the Company has committed to payments totaling $13.6 million and $3.7 million due on or before January 1, 2023 and 2024, respectively. Environmental and Regulatory

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2022
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. On February 15, 2022, the Company completed the Chisholm Acquisition which included the issuance of 19,417,476 shares of Class A Common Stock. When there is a change in ownership, as defined under Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”), it results in a limitation that applies to all net operating losses (“NOLs”) and credits generated prior to the ownership change date that can be used to offset taxable income incurred after the ownership change date (the “382 Limitation”). The annual limitation is based on Earthstone’s stock value prior to the ownership change, multiplied by the applicable federal long-term, tax-exempt interest rate (the “FLTR”). Based on Earthstone’s stock price at the close of business on February 15, 2022 of $12.85 and the applicable FLTR of 1.46%, the current limitation is estimated to be $10.1 million per year. Additionally, unutilized 382 Limitation amounts can be carried forward to future years, cumulatively. As of June, 2022 and December 31, 2021, a current liability of $0.8 million and $0.9 million, respectively, are included in Other current liabilities in the Condensed Consolidated Balance Sheets. The amounts represent current Texas Margin Tax payable. During the six months ended June 30, 2022, the Company recorded income tax expense of approximately $21.2 million which included (1) a deferred income tax expense for Earthstone of $17.9 million, which included a deferred income tax expense of $24.3 million resulting from its share of the distributable income from EEH, offset by a $6.4 million release of valuation allowance, (2) a deferred income tax expense for Lynden US of $2.0 million as a result of its share of the distributable loss from EEH and (3) income tax expense of $1.3 million related to state taxes. Lynden Corp incurred no material income or loss, or related income tax expense or benefit, for the six months ended June 30, 2022. During the six months ended June 30, 2021, the Company recorded income tax benefit of approximately $0.8 million which included (1) a deferred income tax benefit for Lynden US of $0.4 million as a result of its share of the distributable loss from EEH, (2) no net income tax benefit for Earthstone as the $2.6 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 $0.4 million related to the Texas Margin Tax. Lynden Corp incurred no material income or loss, or related income tax expense or benefit, for the six months ended June 30, 2021.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Summary of Fair Value of Financial Assets and Liabilities	The following table summarizes the fair value of the Company’s financial assets and liabilities, by level within the fair-value hierarchy (in thousands) : June 30, 2022 Level 1 Level 2 Level 3 Total Financial assets Derivative asset - current $ — $ 3,327 $ — $ 3,327 Derivative asset - noncurrent — 3,523 — 3,523 Total financial assets $ — $ 6,850 $ — $ 6,850 Financial liabilities Derivative liability - current $ — $ 122,067 $ — $ 122,067 Derivative liability - noncurrent — 19,761 — 19,761 Share-based compensation liability - noncurrent — 12,898 — 12,898 Total financial liabilities $ — $ 154,726 $ — $ 154,726 December 31, 2021 Financial assets Derivative asset - current $ — $ 1,348 $ — $ 1,348 Derivative asset - noncurrent — 157 — 157 Total financial assets $ — $ 1,505 $ — $ 1,505 Financial liabilities Derivative liability - current $ — $ 45,310 $ — $ 45,310 Derivative liability - noncurrent — 571 — 571 Share-based compensation liability - current — 7,835 — 7,835 Share-based compensation liability - noncurrent — 6,324 — 6,324 Total financial liabilities $ — $ 60,040 $ — $ 60,040

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Open Crude Oil and Natural Gas Derivative Contracts	The Company had the following open crude oil and natural gas derivative contracts as of June 30, 2022: Price Swaps Period Commodity Volume Weighted Average Price Q3 - Q4 2022 Crude Oil 2,162,000 $ 66.70 Q1 - Q4 2023 Crude Oil 1,277,500 $ 76.20 Q3 - Q4 2022 Crude Oil Basis Swap (1) 3,082,000 $ 0.61 Q1 - Q4 2023 Crude Oil Basis Swap (1) 4,743,500 $ 0.59 Q3 - Q4 2022 Natural Gas 5,159,500 $ 3.52 Q1 - Q4 2023 Natural Gas 3,670,000 $ 3.35 Q3 - Q4 2022 Natural Gas Basis Swap (2) 3,680,000 $ (0.33) Q1 - Q4 2023 Natural Gas Basis Swap (2) 36,500,000 $ (1.47) Q1 - Q4 2024 Natural Gas Basis Swap (2) 36,600,000 $ (1.05) (1) The basis differential price is between WTI Midland Crude and the WTI NYMEX. (2) The basis differential price is between W. Texas (WAHA) and the Henry Hub NYMEX. Costless Collars Period Commodity Volume Bought Floor Sold Ceiling Q3 - Q4 2022 Crude Oil Costless Collar 1,357,000 $ 71.86 $ 91.39 Q1 - Q4 2023 Crude Oil Costless Collar 2,828,000 $ 65.74 $ 91.90 Q3 - Q4 2022 Natural Gas Costless Collar 11,400,500 $ 4.08 $ 6.48 Q1 - Q4 2023 Natural Gas Costless Collar 14,133,000 $ 3.46 $ 5.34 Deferred Premium Puts Period Commodity Volume $/Bbl (Put Price) $/Bbl (Net of Premium) Q3 - Q4 2022 Crude Oil 253,000 $ 80.00 $ 75.79 Q1 - Q4 2023 Crude Oil 638,000 $ 70.00 $ 62.85
Schedule of Location and Fair Value Amounts of All Derivative Instruments	The following table summarizes the location and fair value amounts of all derivative instruments in the Condensed Consolidated Balance Sheets as well as the gross recognized derivative assets, liabilities, and amounts offset in the Condensed Consolidated Balance Sheets (in thousands) : June 30, 2022 December 31, 2021 Derivatives not Balance Sheet Location Gross Gross Net Gross Gross Net Commodity contracts Derivative asset - current $ 18,502 $ (15,175) $ 3,327 $ 3,191 $ (1,843) $ 1,348 Commodity contracts Derivative liability - current $ 137,242 $ (15,175) $ 122,067 $ 47,153 $ (1,843) $ 45,310 Commodity contracts Derivative asset - noncurrent $ 15,819 $ (12,296) $ 3,523 $ 2,721 $ (2,564) $ 157 Commodity contracts Derivative liability - noncurrent $ 32,057 $ (12,296) $ 19,761 $ 3,135 $ (2,564) $ 571
Schedule 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 Six Months Ended Statement of Cash Flows Location Statement of Operations Location 2022 2021 2022 2021 Unrealized gain (loss) Not separately presented Not separately presented $ 29,192 $ (36,653) $ (90,602) $ (59,011) Realized loss Operating portion of net cash paid in settlement of derivative contracts Not separately presented (79,099) (14,522) (110,785) (25,427) Total loss on derivative contracts, net Loss on derivative contracts, net $ (49,907) $ (51,175) $ (201,387) $ (84,438)

Acquisitions and Divestitures (

Acquisitions and Divestitures (Tables)	6 Months Ended
	Jun. 30, 2022
Business Combination, Asset Acquisition and Divestitures [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 Class A Common Stock issued 5,650,977 Class A Common Stock price as of April 14, 2022 $ 13.76 Class A Common Stock consideration 77,757 Cash consideration (1) 640,157 Direct transaction costs (2) 1,619 Total consideration transferred $ 719,533 Fair value of assets acquired: Current assets $ 827 Oil and gas properties 762,045 Amount attributable to assets acquired $ 762,872 Fair value of liabilities assumed: Suspense payable 27,062 Other current liabilities 3,083 Noncurrent liabilities - ARO 13,194 Amount attributable to liabilities assumed $ 43,339 (1) Includes preliminary customary purchase price adjustments. (2) Represents $1.6 million of estimated transaction costs associated with the Bighorn Acquisition which have been capitalized in accordance with ASC 805-50. Consideration: Shares of Class A Common Stock issued 19,417,476 Class A Common Stock price as of February 15, 2022 $ 12.85 Class A Common Stock consideration 249,515 Cash consideration 383,843 Total consideration transferred $ 633,358 Fair value of assets acquired: Oil and gas properties $ 641,398 Amount attributable to assets acquired $ 641,398 Fair value of liabilities assumed: Other current liabilities $ 2,069 Asset retirement obligation - noncurrent 5,971 Amount attributable to liabilities assumed $ 8,040 Consideration: Shares of Class A Common Stock issued 12,719,594 Class A Common Stock price as of January 7, 2021 $ 6.02 Class A Common Stock consideration 76,572 Cash consideration 140,507 Total consideration transferred $ 217,079 Fair value of assets acquired: Cash $ 4,763 Other current assets 11,524 Oil and gas properties 224,112 Other non-current assets 252 Amount attributable to assets acquired $ 240,651 Fair value of liabilities assumed: Derivative liability $ 10,177 Other current liabilities 5,196 Asset retirement obligation - noncurrent 8,199 Amount attributable to liabilities assumed $ 23,572
Schedule of 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 Class A Common Stock issued 6,200,000 Class A Common Stock price as of July 20, 2021 $ 9.97 Class A Common Stock consideration 61,814 Cash consideration (1) 60,159 Direct transaction costs (2) 1,715 Total consideration transferred $ 123,688 Fair value of assets acquired: Oil and gas properties $ 124,288 Amount attributable to assets acquired $ 124,288 Fair value of liabilities assumed: Noncurrent liabilities - asset retirement obligations 600 Amount attributable to liabilities assumed $ 600 (1) Includes customary purchase price adjustments. (2) Represents $1.7 million of transaction costs associated with the Tracker Acquisition and the Sequel Acquisition that have been capitalized in accordance with ASC 805-50.
Schedule of 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 supplemental pro forma results of operations (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Revenue $ 501,601 $ 291,725 $ 893,604 $ 512,796 Income (loss) before taxes 261,050 (3,675) 333,366 (12,522) Net income (loss) 238,362 (3,544) 312,211 (12,319) Less: Net income (loss) attributable to noncontrolling interest 76,673 (1,528) 102,865 (5,454) Net income (loss) attributable to Earthstone Energy, Inc. 161,689 (2,016) 209,346 (6,865) Pro forma net income (loss) per common share attributable to Earthstone Energy, Inc.: Basic $ 2.07 $ (0.03) $ 2.95 $ (0.09) Diluted $ 1.62 $ (0.03) $ 2.54 $ (0.09)

Oil and Natural Gas Properties

Oil and Natural Gas Properties Oil and Natural Gas Properties (Tables)	6 Months Ended
	Jun. 30, 2022
Oil and Gas Exploration and Production Industries Disclosures [Abstract]
Schedule of Capital Expenditures Of Oil and Gas	Our accrual basis capital expenditures for the three and six months ended June 30, 2022 were as follows ( in thousands ): Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 Drilling and completions $ 119,300 $ 201,300 Leasehold costs 151 260 Total capital expenditures $ 119,451 $ 201,560

Noncontrolling Interest (Tables

Noncontrolling Interest (Tables)	6 Months Ended
	Jun. 30, 2022
Noncontrolling Interest [Abstract]
Schedule of Changes in Noncontrolling Interest	The following table presents the changes in noncontrolling interest for the six months ended June 30, 2022: EEH Units Held % EEH Units Held % Total EEH As of December 31, 2021 53,467,307 60.9 % 34,344,532 39.1 % 87,811,839 EEH Units issued in connection with the Chisholm Acquisition 19,417,476 — 19,417,476 EEH Units issued in connection with the Bighorn Acquisition 5,650,977 — 5,650,977 EEH Units and Class B Common Stock converted to Class A Common Stock 82,891 (82,891) — EEH Units issued in connection with the vesting of restricted stock units and performance-based units 598,772 — 598,772 As of June 30, 2022 79,217,423 69.8 % 34,261,641 30.2 % 113,479,064

Net Income (Loss) Per Common _2

Net Income (Loss) Per Common Share (Tables)	6 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
Schedule of Reconciliation of Net Income (Loss) Per Common Share	A reconciliation of Net income (loss) per common share is as follows: Three Months Ended Six Months Ended (In thousands, except per share amounts) 2022 2021 2022 2021 Net income (loss) attributable to Earthstone Energy, Inc. $ 144,885 $ (8,871) $ 111,407 $ (14,704) Net income (loss) attributable to Earthstone Energy, Inc. from assumed conversion of Series A Preferred Stock (2) 4,351 — 4,351 — Net income (loss) attributable to Earthstone Energy, Inc. - Diluted $ 149,236 $ (8,871) $ 115,758 $ (14,704) Net income (loss) per common share attributable to Earthstone Energy, Inc.: Basic $ 1.85 $ (0.20) $ 1.57 $ (0.34) Diluted $ 1.46 $ (0.20) $ 1.37 $ (0.34) Weighted average common shares outstanding Basic 78,291,037 44,127,718 70,909,353 43,457,043 Add potentially dilutive securities: Unvested restricted stock units (1) 493,600 — 506,760 — Unvested performance units (1) 2,003,778 — 1,979,770 — Series A Preferred Stock (2) 21,621,621 — 10,870,539 — Diluted weighted average common shares outstanding 102,410,036 44,127,718 84,266,422 43,457,043 (1) For the three and six months ended June 30, 2022 and 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 three and six months ended June 30, 2021, there were no dilutive effects related to unvested restricted stock units or performance units due to the losses for those periods.

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]
Schedule of Unvested RSU and PSU Award Activity	The table below summarizes RSU award activity for the six months ended June 30, 2022: Shares Weighted-Average Grant Date Fair Value Unvested RSUs at December 31, 2021 771,817 $ 5.91 Granted 487,215 $ 11.20 Forfeited (10,100) $ 7.08 Vested (325,771) $ 7.70 Unvested RSUs at June 30, 2022 923,161 $ 8.06 The table below summarizes PSU activity for the six months ended June 30, 2022: Shares Weighted-Average Grant Date Fair Value Unvested PSUs at December 31, 2021 2,751,725 $ 8.42 Granted 472,485 $ 19.42 Vested (608,125) $ 9.30 Unvested PSUs at June 30, 2022 2,616,085 $ 10.20
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 23.9% or greater 2 14.5% 1 8.4% 0.5 Less than 8.4% 0

Asset Retirement Obligations (T

Asset Retirement Obligations (Tables)	6 Months Ended
	Jun. 30, 2022
Asset Retirement Obligation Disclosure [Abstract]
Summary of Asset Retirement Obligation Transactions	The following table summarizes the Company’s asset retirement obligation transactions recorded during the six months ended June 30, 2022 (in thousands) : 2022 Beginning asset retirement obligations $ 15,866 Liabilities incurred 215 Liabilities settled (475) Acquisitions 19,165 Accretion expense 1,105 Revision of estimates 69 Ending asset retirement obligations $ 35,945

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Financial assets
Derivative asset - current	$ 3,327	$ 1,348
Derivative asset - noncurrent	3,523	157
Financial liabilities
Derivative liability - current	122,067	45,310
Derivative liability - noncurrent	19,761	571
Fair Value on a Recurring Basis
Financial assets
Derivative asset - current	3,327	1,348
Derivative asset - noncurrent	3,523	157
Total financial assets	6,850	1,505
Financial liabilities
Derivative liability - current	122,067	45,310
Derivative liability - noncurrent	19,761	571
Share-based compensation liability - noncurrent	12,898	6,324
Share-based compensation liability - current		7,835
Total financial liabilities	154,726	60,040
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	0
Share-based compensation liability - current		0
Total financial liabilities	0	0
Level 2 | Fair Value on a Recurring Basis
Financial assets
Derivative asset - current	3,327	1,348
Derivative asset - noncurrent	3,523	157
Total financial assets	6,850	1,505
Financial liabilities
Derivative liability - current	122,067	45,310
Derivative liability - noncurrent	19,761	571
Share-based compensation liability - noncurrent	12,898	6,324
Share-based compensation liability - current		7,835
Total financial liabilities	154,726	60,040
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	0
Share-based compensation liability - current		0
Total financial liabilities	$ 0	$ 0

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - 8.000% Senior Notes Due 2027 - Senior Notes - USD ($) $ in Millions	Jun. 30, 2022	Apr. 12, 2022
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Interest rate, stated percentage		8%
Interest payable	$ 9.5
Portion at Other than Fair Value Measurement
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Interest rate, stated percentage		8%
Deferred financing costs	12.2
Long-term debt	537.8
Interest payable	9.5
Estimate of Fair Value Measurement
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Fair value disclosure	$ 521.2

Derivative Financial Instrume_3

Derivative Financial Instruments - Open Crude Oil and Natural Gas Derivative Contracts (Details)	6 Months Ended
	Jun. 30, 2022 MMBTU $ / bbl $ / MMBTU bbl
Crude Oil, Q3 - Q4 2022 | Crude Oil
Derivative [Line Items]
Crude oil volume (Bbl) | bbl	2,162,000
Weighted Average Price ($/Bbl / $/MMBtu) | $ / bbl	66.70
Crude Oil, Q1 - Q4 2023 | Crude Oil
Derivative [Line Items]
Crude oil volume (Bbl) | bbl	1,277,500
Weighted Average Price ($/Bbl / $/MMBtu) | $ / bbl	76.20
Crude Oil Basis Swap, Q3 - Q4 2022 | Crude Oil
Derivative [Line Items]
Crude oil volume (Bbl) | bbl	3,082,000
Weighted Average Price ($/Bbl / $/MMBtu) | $ / bbl	0.61
Crude Oil Basis Swap, Q1 - Q4 2023 | Crude Oil
Derivative [Line Items]
Crude oil volume (Bbl) | bbl	4,743,500
Weighted Average Price ($/Bbl / $/MMBtu) | $ / bbl	0.59
Natural Gas, Q3 - Q4 2022 | Natural gas
Derivative [Line Items]
Natural gas volume (MMBtu) | MMBTU	5,159,500
Weighted Average Price ($/Bbl / $/MMBtu) | $ / bbl	3.52
Natural Gas, Q1-Q4 2023 | Natural gas
Derivative [Line Items]
Natural gas volume (MMBtu) | MMBTU	3,670,000
Weighted Average Price ($/Bbl / $/MMBtu) | $ / bbl	3.35
Natural Gas Basis Swap, Q3 - Q4 2022 | Natural gas
Derivative [Line Items]
Natural gas volume (MMBtu) | MMBTU	3,680,000
Weighted Average Price ($/Bbl / $/MMBtu)	(0.33)
Natural Gas Basis Swap, Q1 - Q4 2023 | Natural gas
Derivative [Line Items]
Natural gas volume (MMBtu) | MMBTU	36,500,000
Weighted Average Price ($/Bbl / $/MMBtu) | $ / bbl	(1.47)
Natural Gas Basis Swap Q1 - Q1 2024 | Natural gas
Derivative [Line Items]
Natural gas volume (MMBtu) | MMBTU	36,600,000
Weighted Average Price ($/Bbl / $/MMBtu) | $ / bbl	(1.05)
Crude Oil Costless Collar One Member - Q3 - Q4 2022 | Crude Oil
Derivative [Line Items]
Crude oil volume (Bbl) | bbl	1,357,000
Derivative, floor price ($/Bbl / $/MMBtu)	71.86
Derivative, ceiling price ($/Bbl / $/MMBtu)	91.39
Crude Oil Costless Collar Q1 - Q4 2023 | Crude Oil
Derivative [Line Items]
Crude oil volume (Bbl) | bbl	2,828,000
Derivative, floor price ($/Bbl / $/MMBtu)	65.74
Derivative, ceiling price ($/Bbl / $/MMBtu)	91.90
Natural Gas Costless Collar Q3 - Q4 2022 | Natural gas
Derivative [Line Items]
Natural gas volume (MMBtu) | MMBTU	11,400,500
Derivative, floor price ($/Bbl / $/MMBtu)	4.08
Derivative, ceiling price ($/Bbl / $/MMBtu)	6.48
Natural Gas Costless Collar Q1 - Q4 2023 | Natural gas
Derivative [Line Items]
Natural gas volume (MMBtu) | MMBTU	14,133,000
Derivative, floor price ($/Bbl / $/MMBtu)	3.46
Derivative, ceiling price ($/Bbl / $/MMBtu)	5.34
Crude Oil Premium Puts Q3 - Q4 2022 | Crude Oil
Derivative [Line Items]
Crude oil volume (Bbl) | bbl	253,000
Derivative, option strike price ($/Bbl)	80
Derivative, net of premium strike price ($/Bbl)	75.79
Crude Oil Premium Puts Q1 - Q4 2023 | Crude Oil
Derivative [Line Items]
Crude oil volume (Bbl) | bbl	638,000
Derivative, option strike price ($/Bbl)	70
Derivative, net of premium strike price ($/Bbl)	62.85

Derivative Financial Instrume_4

Derivative Financial Instruments - Location and Fair Value Amounts of All Derivative Instruments (Details) - Derivatives Not Designated as Hedging Contracts - Commodity contracts - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Derivative asset - current
Derivative Asset [Abstract]
Gross recognized assets	$ 18,502	$ 3,191
Gross amounts offset, assets	(15,175)	(1,843)
Total financial assets	3,327	1,348
Derivative liability - current
Derivative Liability [Abstract]
Gross recognized liabilities	137,242	47,153
Gross amounts offset, liabilities	(15,175)	(1,843)
Total financial liabilities	122,067	45,310
Derivative asset - noncurrent
Derivative Asset [Abstract]
Gross recognized assets	15,819	2,721
Gross amounts offset, assets	(12,296)	(2,564)
Total financial assets	3,523	157
Derivative liability - noncurrent
Derivative Liability [Abstract]
Gross recognized liabilities	32,057	3,135
Gross amounts offset, liabilities	(12,296)	(2,564)
Total financial liabilities	$ 19,761	$ 571

Derivative Financial Instrume_5

Derivative Financial Instruments - Realized and Unrealized Gains and Losses on Derivative Instruments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Derivative Instruments, Gain (Loss) [Line Items]
Realized loss			$ 110,785	$ 25,427
(Loss) gain on derivative contracts, net	$ (49,907)	$ (51,175)	(201,387)	(84,438)
Derivatives Not Designated as Hedging Contracts | (Loss) Gain On Derivative Contracts, Net
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized gain (loss)	29,192	(36,653)	(90,602)	(59,011)
Realized loss	(79,099)	(14,522)	(110,785)	(25,427)
(Loss) gain on derivative contracts, net	$ (49,907)	$ (51,175)	$ (201,387)	$ (84,438)

Acquisitions and Divestitures -

Acquisitions and Divestitures - Narrative (Details) $ / shares in Units, $ in Thousands

3 Months Ended

5 Months Ended

6 Months Ended

Jul. 01, 2022 USD ($)

Jun. 27, 2022 USD ($) $ / shares shares

Apr. 15, 2022 USD ($)

Apr. 14, 2022 USD ($) shares

Feb. 15, 2022 USD ($) $ / shares shares

Nov. 02, 2021 USD ($) shares

Jul. 20, 2021 USD ($) shares

Jan. 07, 2021 USD ($) $ / shares shares

Jun. 30, 2022 USD ($) $ / shares

Jun. 30, 2022 USD ($) $ / shares

Jun. 30, 2021 USD ($) seller

Jun. 30, 2022 USD ($) $ / shares

Jun. 30, 2022 USD ($) $ / shares

Jun. 30, 2021 USD ($)

Jun. 29, 2022 USD ($)

Dec. 31, 2021 $ / shares

Business Acquisition [Line Items]

Transaction costs

$ (402)

$ 507

$ 10,340

$ 2,613

Discontinued Operations, Disposed of by Sale | Eagle Ford Divestiture | Subsequent Event

Business Acquisition [Line Items]

Proceeds from divestiture

$ 25,600

IRM Acquisition

Business Acquisition [Line Items]

Net cash consideration

$ 140,500

Transaction costs

$ 300

$ 10,300

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

Share price (in dollars per share) | $ / shares

$ 12.85

Class A Common Stock | IRM Acquisition

Business Acquisition [Line Items]

Shares acquired (in shares) | shares

12,719,594

Class A common stock price as of January 7, 2021 (in dollars per share) | $ / shares

$ 6.02

Titus I Acquisition

Business Acquisition [Line Items]

Cash consideration

$ 270,000

Shares of class A common stock issued (in shares) | shares

1,811,132

Escrow deposit

$ 18,800

Titus I Acquisition | Class A Common Stock

Business Acquisition [Line Items]

Common stock, par value (in dollars per share) | $ / shares

$ 0.001

Titus II Acquisition

Business Acquisition [Line Items]

Cash consideration

$ 305,000

Shares of class A common stock issued (in shares) | shares

2,047,811

Escrow deposit

$ 21,200

Bighorn Acquisition

Business Acquisition [Line Items]

Cash consideration

$ 641,800

Shares of class A common stock issued (in shares) | shares

5,650,977

Pro forma revenue

$ 167,300

Pro forma operating expense

$ 50,900

Bighorn Acquisition | Class A Common Stock

Business Acquisition [Line Items]

Shares of class A common stock issued (in shares) | shares

5,650,977

Chisholm Acquisition

Business Acquisition [Line Items]

Initial payment for asset acquisition

$ 313,800

Subsequent payment for asset acquisition

$ 70,000

Asset acquisition, percentage of voting interest acquired

36%

Pro forma revenue

$ 128,100

Pro forma operating expense

$ 46,300

Chisholm Acquisition | Class A Common Stock

Business Acquisition [Line Items]

Shares of class A common stock issued (in shares) | shares

19,417,476

Share price (in dollars per share) | $ / shares

$ 12.85

Tracker And Sequel Aquisitions | Class A Common Stock

Business Acquisition [Line Items]

Shares of class A common stock issued (in shares) | shares

6,200,000

Tracker Purchase Agreement

Business Acquisition [Line Items]

Cash consideration

$ 18,800

Shares of 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%

Tracker Purchase Agreement | Class A Common Stock

Business Acquisition [Line Items]

Shares of class A common stock issued (in shares) | shares

4,700,000

Sequel Purchase Agreement

Business Acquisition [Line Items]

Cash consideration

$ 41,400

Shares of class A common stock issued (in shares) | shares

1,500,000

Foreland Acquisition

Business Acquisition [Line Items]

Cash consideration

$ 13,400

Shares of class A common stock issued (in shares) | shares

2,611,111

B C C Acquisition

Business Acquisition [Line Items]

Cash consideration

$ 20,500

Eagle Ford Acquisitions

Business Acquisition [Line Items]

Cash consideration

$ 45,200

Number of separate sellers | seller

4

Acquisitions and Divestitures_2

Acquisitions and Divestitures - Asset Acquisition (Details) - USD ($) $ / shares in Units, $ in Thousands				6 Months Ended
	Apr. 14, 2022	Feb. 15, 2022	Jul. 20, 2021	Jun. 30, 2022
Asset Acquisition [Line Items]
Noncurrent liabilities - asset retirement obligations				$ 215
Bighorn Acquisition
Asset Acquisition [Line Items]
Shares of class A common stock issued (in shares)	5,650,977
Cash consideration	$ 640,157
Direct transaction costs	1,619
Total consideration transferred	719,533
Current assets	827
Oil and gas properties	762,045
Amount attributable to assets acquired	762,872
Suspense payable	27,062
Other current liabilities	3,083
Noncurrent liabilities - asset retirement obligations	13,194
Amount attributable to liabilities assumed	$ 43,339
Bighorn Acquisition | Class A Common Stock
Asset Acquisition [Line Items]
Shares of class A common stock issued (in shares)	5,650,977
Class A common stock price (in dollar per share)	$ 13.76
Class A Common Stock consideration	$ 77,757
Chisholm Acquisition
Asset Acquisition [Line Items]
Cash consideration		$ 383,843
Total consideration transferred		633,358
Oil and gas properties		641,398
Amount attributable to assets acquired		641,398
Other current liabilities		2,069
Noncurrent liabilities - asset retirement obligations		5,971
Amount attributable to liabilities assumed		$ 8,040
Chisholm Acquisition | Class A Common Stock
Asset Acquisition [Line Items]
Shares of class A common stock issued (in shares)		19,417,476
Class A common stock price (in dollar per share)		$ 12.85
Class A Common Stock consideration		$ 249,515
Tracker And Sequel Aquisitions
Asset Acquisition [Line Items]
Cash consideration			$ 60,159
Direct transaction costs			1,715
Total consideration transferred			123,688
Oil and gas properties			124,288
Amount attributable to assets acquired			124,288
Noncurrent liabilities - asset retirement obligations			600
Amount attributable to liabilities assumed			$ 600
Tracker And Sequel Aquisitions | Class A Common Stock
Asset Acquisition [Line Items]
Shares of class A common stock issued (in shares)			6,200,000
Class A common stock price (in dollar per share)			$ 9.97
Class A Common Stock consideration			$ 61,814

Acquisitions and Divestitures_3

Acquisitions and Divestitures - Business Acquisitions, by Acquisition (Details) - IRM Acquisition $ / shares in Units, $ in Thousands	Jan. 07, 2021 USD ($) $ / shares shares
Business Acquisition [Line Items]
Cash consideration	$ 140,507
Total consideration transferred	217,079
Fair value of assets acquired:
Cash	4,763
Other current assets	11,524
Oil and gas properties	224,112
Other non-current assets	252
Amount attributable to assets acquired	240,651
Fair value of liabilities assumed:
Derivative liability	10,177
Other current liabilities	5,196
Asset retirement obligation - noncurrent	8,199
Amount attributable to liabilities assumed	$ 23,572
Class A Common Stock
Business Acquisition [Line Items]
Shares of Class A Common Stock issued (in shares) | shares	12,719,594
Class A Common Stock price (in dollars per share) | $ / shares	$ 6.02
Class A Common Stock consideration	$ 76,572

Acquisitions and Divestitures_4

Acquisitions and Divestitures - Business Acquisition, Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Business Combination, Asset Acquisition and Divestitures [Abstract]
Revenue	$ 501,601	$ 291,725	$ 893,604	$ 512,796
Income (loss) before taxes	261,050	(3,675)	333,366	(12,522)
Net income (loss)	238,362	(3,544)	312,211	(12,319)
Less: Net income (loss) attributable to noncontrolling interest	76,673	(1,528)	102,865	(5,454)
Net income (loss) attributable to Earthstone Energy, Inc.	$ 161,689	$ (2,016)	$ 209,346	$ (6,865)
Basic (in dollars per share)	$ 2.07	$ (0.03)	$ 2.95	$ (0.09)
Diluted (in dollars per share)	$ 1.62	$ (0.03)	$ 2.54	$ (0.09)

Oil and Natural Gas Propertie_2

Oil and Natural Gas Properties - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Oil And Natural Gas Properties [Line Items]
Impairment of oil and gas properties	$ 0	$ 0	$ 0	$ 0
Proved Oil And Natural Gas Properties
Oil And Natural Gas Properties [Line Items]
Depletion expenses	$ 66,200,000	$ 25,900,000	$ 100,300,000	$ 50,100,000
Unproved Oil And Gas Properties | Minimum
Oil And Natural Gas Properties [Line Items]
Unproved oil and gas lease term			3 years
Unproved Oil And Gas Properties | Maximum
Oil And Natural Gas Properties [Line Items]
Unproved oil and gas lease term			5 years

Oil and Natural Gas Propertie_3

Oil and Natural Gas Properties - Capital Expenditures Of Oil and Gas (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022
Oil And Natural Gas Properties [Line Items]
Total capital expenditures	$ 119,451	$ 201,560
Drilling and completions
Oil And Natural Gas Properties [Line Items]
Total capital expenditures	119,300	201,300
Leasehold costs
Oil And Natural Gas Properties [Line Items]
Total capital expenditures	$ 151	$ 260

Noncontrolling Interest - Summa

Noncontrolling Interest - Summary of Changes in Noncontrolling Interest (Details) - shares			6 Months Ended
	Apr. 14, 2022	Jan. 07, 2021	Jun. 30, 2022	Dec. 31, 2021
Class A Common Stock
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Outstanding, beginning balance (in shares)			53,467,307
Outstanding, ending balance (in shares)			79,217,423
Bighorn Acquisition | Class A Common Stock
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
EEH Units issued in connect with Acquisition (in shares)	5,650,977
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
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Outstanding, beginning balance (in shares)			87,811,839
Outstanding, ending balance (in shares)			113,479,064
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)			598,772
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 | Bighorn Acquisition
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
EEH Units issued in connect with Acquisition (in shares)			5,650,977
Earthstone Energy Holdings, LLC | IRM Acquisition
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
EEH Units issued in connect with Acquisition (in shares)			19,417,476
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			69.80%	60.90%
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)			53,467,307
Outstanding, ending balance (in shares)			79,217,423
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)			598,772
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)			82,891
EEH Units Held By Earthstone and Lynden US | Earthstone Energy Holdings, LLC | Bighorn Acquisition
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
EEH Units issued in connect with Acquisition (in shares)			5,650,977
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)			19,417,476
EEH Units Held By Others | Earthstone Energy Holdings, LLC
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Outstanding, beginning balance (in shares)			34,344,532
Outstanding, ending balance (in shares)			34,261,641
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)			(82,891)
EEH Units Held By Others | Earthstone Energy Holdings, LLC | Bighorn 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 | 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
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Percentage of EEH Units Held By Others			30.20%	39.10%

Net Income (Loss) Per Common _3

Net Income (Loss) Per Common Share - Reconciliation of Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Jul. 06, 2022	Apr. 14, 2022	Dec. 31, 2021
Class of Stock [Line Items]
Net income (loss) attributable to Earthstone Energy, Inc.	$ 144,885	$ (8,871)	$ 111,407	$ (14,704)
Net income (loss) attributable to Earthstone Energy, Inc. from assumed conversion of Series A Preferred Stock	4,351	0	4,351	0
Net income (loss) attributable to Earthstone Energy, Inc. diluted	$ 149,236	$ (8,871)	$ 115,758	$ (14,704)
Net income (loss) per common share attributable to Earthstone Energy, Inc.:
Basic (in dollars per share)	$ 1.85	$ (0.20)	$ 1.57	$ (0.34)
Diluted (in dollars per share)	$ 1.46	$ (0.20)	$ 1.37	$ (0.34)
Weighted average common shares outstanding
Basic (in shares)	78,291,037	44,127,718	70,909,353	43,457,043
Add potentially dilutive securities:
Unvested restricted stock units (in shares)	493,600	0	506,760	0
Unvested performance units (in shares)	2,003,778	0	1,979,770	0
Series A Preferred Stock (in shares)	21,621,621	0	10,870,539	0
Diluted weighted average common shares outstanding (in shares)	102,410,036	44,127,718	84,266,422	43,457,043
Antidilutive securities (in shares)	1,099,800	1,099,800	1,099,800	1,099,800
Preferred stock, shares issued (in shares)	0		0				0
Series A Convertible Preferred Stock
Class of Stock [Line Items]
Net income (loss) attributable to Earthstone Energy, Inc. from assumed conversion of Series A Preferred Stock	$ 4,400		$ 4,400
Add potentially dilutive securities:
Preferred stock, shares issued (in shares)	280,000		280,000			280,000	0
Class A Common Stock | Subsequent Event
Add potentially dilutive securities:
Convertible preferred stock, shares issued upon conversion (in shares)					25,225,225

Net Income (Loss) Per Common _4

Net Income (Loss) Per Common Share - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Less: Net income (loss) attributable to noncontrolling interest	$ 73,140,000	$ (6,960,000)	$ 54,741,000	$ (11,683,000)
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
Less: Net income (loss) attributable to noncontrolling interest	$ 73,100,000	$ (7,000,000)	$ 54,700,000	(11,700,000)
Dilutive securities, effect on earnings per share			$ 0	$ 0

Common Stock and Preferred St_2

Common Stock and Preferred Stock (Details) $ / shares in Units, $ in Thousands					3 Months Ended				6 Months Ended
	Apr. 14, 2022 USD ($) shares	Feb. 15, 2022 USD ($) shares	Jan. 30, 2022 USD ($) $ / shares shares	Jan. 07, 2021 USD ($) shares	Jun. 30, 2022 USD ($) $ / shares shares	Mar. 31, 2022 USD ($)	Jun. 30, 2021 shares	Mar. 31, 2021 USD ($)	Jun. 30, 2022 $ / shares shares	Jun. 30, 2021 shares	Jul. 06, 2022 shares	Dec. 31, 2021 $ / shares shares
Capital Unit [Line Items]
Shares issued in connection with Acquisition | $					$ 77,757	$ 249,515		$ 76,572
Preferred stock, par value (in dollars per share) | $ / shares					$ 0.001				$ 0.001			$ 0.001
Preferred stock, shares issued (in shares)					0				0			0
Preferred stock, shares outstanding (in shares)					0				0			0
Securities Purchase Agreement
Capital Unit [Line Items]
Sale of stock, proceeds received on transaction | $	$ 279,300		$ 280,000
Member Units | Bold Contribution Agreement
Capital Unit [Line Items]
Stock conversion (in shares)					1
IRM Acquisition
Capital Unit [Line Items]
EEH Units issued in connect with Acquisition (in shares)				12,719,594
Shares issued in connection with Acquisition | $				$ 76,600
Class A Common Stock
Capital Unit [Line Items]
Common stock, shares issued (in shares)					79,217,423				79,217,423			53,467,307
Common stock, shares outstanding (in shares)					79,217,423				79,217,423			53,467,307
Class A Common Stock | Subsequent Event
Capital Unit [Line Items]
Convertible preferred stock, shares issued upon conversion (in shares)											25,225,225
Class A Common Stock | Securities Purchase Agreement
Capital Unit [Line Items]
Preferred stock, conversion ratio			90.0900900900901
Sale of stock, price per share (in dollars per share) | $ / shares			$ 11.10
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]
Shares issued in transaction (in shares)					163,753		221,401		933,896	487,660
Common stock repurchased (in shares)					48,232		66,343		335,124	145,654
Class A Common Stock | Chisholm Acquisition
Capital Unit [Line Items]
EEH Units issued in connect with Acquisition (in shares)		19,417,476
Shares issued in connection with Acquisition | $		$ 249,500
Class A Common Stock | Bighorn Acquisition
Capital Unit [Line Items]
EEH Units issued in connect with Acquisition (in shares)	5,650,977
Shares issued in connection with Acquisition | $	$ 77,800
Class B Common Stock
Capital Unit [Line Items]
Common stock, shares issued (in shares)					34,261,641				34,261,641			34,344,532
Common stock, shares outstanding (in shares)					34,261,641				34,261,641			34,344,532
EEH units and class B common stock converted to class A common stock (in shares)					10,125		33,463		82,891	611,494
Series A Convertible Preferred Stock
Capital Unit [Line Items]
Preferred stock, par value (in dollars per share) | $ / shares					$ 0.001				$ 0.001			$ 0.001
Preferred stock, shares issued (in shares)	280,000				280,000				280,000			0
Preferred stock, shares outstanding (in shares)					280,000				280,000			0
Series A Convertible Preferred Stock | Securities Purchase Agreement
Capital Unit [Line Items]
Sale of stock, number of shares issued in transaction (in shares)	280,000		280,000
Preferred stock, par value (in dollars per share) | $ / shares			$ 0.001
Sale of stock, price per share (in dollars per share) | $ / shares			$ 1,000

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions					3 Months Ended		6 Months Ended
	Feb. 01, 2022	Jan. 31, 2022	Jan. 27, 2021	Jan. 28, 2019	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance-based restricted stock granted (in shares)							487,215
Weighted average fair value per share (in dollars per share)					$ 8.06		$ 8.06		$ 5.91
Vested in period (in shares)							325,771
Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance-based restricted stock granted (in shares)							472,485
Weighted average fair value per share (in dollars per share)					$ 10.20		$ 10.20		$ 8.42
Share-based compensation liability related to PSUs					$ 12.9		$ 12.9		$ 6.3
Vested in period (in shares)							608,125
Performance Stock Units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Relative total shareholder return, percentage							0%
Performance Stock Units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Relative total shareholder return, percentage							200%
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					$ 8.4		$ 8.4
Weighted average remaining vesting period of unrecognized compensation expense							1 year 1 month 2 days
Stock-based compensation expense					1.5	$ 1.2	$ 2.7	$ 2.7
2014 Plan | Restricted Stock Units | Bold Contribution Agreement | 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
2014 Plan | Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense					$ 4.5	$ 3.2	$ 9.1	$ 5
Performance-based restricted stock granted (in shares)	472,485			669,550
Risk-free interest rate							1.40%
Expected volatility (as a percent)							86%
Weighted average fair value per share (in dollars per share)					$ 19.42		$ 19.42
Vested in period (in shares)		608,125
Settlement rate		197%
Settlement rate in common stock		100%
Unrecognized compensation expense related to PSU awards					$ 22.5		$ 22.5
Remaining vesting period of unrecognized compensation expense (in years)							11 months 8 days
2014 Plan | 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)		608,125
2021 PSUs | Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance-based restricted stock granted (in shares)			1,099,800

Stock-Based Compensation - Unve

Stock-Based Compensation - Unvested RSU and PSU Award Activity (Details)	6 Months Ended
	Jun. 30, 2022 $ / shares shares
Restricted Stock Units
Shares
Unvested at beginning period (in shares) | shares	771,817
Granted (in shares) | shares	487,215
Forfeited (in shares) | shares	(10,100)
Vested (in shares) | shares	(325,771)
Unvested at end period (in shares) | shares	923,161
Weighted-Average Grant Date Fair Value
Unvested at beginning of period, weighted-average grant date fair value (in dollars per share) | $ / shares	$ 5.91
Granted, weighted-average grant date fair value (in dollars per share) | $ / shares	11.20
Forfeited, weighted-average grant date fair value (in dollars per share) | $ / shares	7.08
Vested, weighted-average grant date fair value (in dollars per share) | $ / shares	7.70
Unvested at end of period, Weighted-Average Grant Date Fair Value (in dollars per share) | $ / shares	$ 8.06
Performance Stock Units
Shares
Unvested at beginning period (in shares) | shares	2,751,725
Granted (in shares) | shares	472,485
Vested (in shares) | shares	(608,125)
Unvested at end period (in shares) | shares	2,616,085
Weighted-Average Grant Date Fair Value
Unvested at beginning of period, weighted-average grant date fair value (in dollars per share) | $ / shares	$ 8.42
Granted, weighted-average grant date fair value (in dollars per share) | $ / shares	19.42
Vested, weighted-average grant date fair value (in dollars per share) | $ / shares	9.30
Unvested at end of period, Weighted-Average Grant Date Fair Value (in dollars per share) | $ / shares	$ 10.20

Stock-Based Compensation - Tota

Stock-Based Compensation - Total Shareholder Return Goals (Details) - Performance Stock Units	6 Months Ended
	Jun. 30, 2022
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Earthstone’s Annualized TSR	8.40%
23.9% or greater | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Earthstone’s Annualized TSR	23.90%
23.9% or greater | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
TSR Multiplier	200%
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%
7.7% | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Earthstone’s Annualized TSR	8.40%
7.7% | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
TSR Multiplier	50%
Less than 8.4% | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
TSR Multiplier	0%

Long-Term Debt (Details)

Long-Term Debt (Details) - USD ($)			3 Months Ended		6 Months Ended
	Apr. 12, 2022	Nov. 21, 2019	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Jun. 02, 2022	Jun. 01, 2022	Apr. 14, 2022	Jan. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Amortization of deferred financing costs					$ 2,069,000	$ 339,000
Debt instrument, redemption period	180 days
Debt Instrument, Redemption, Period Three
Debt Instrument [Line Items]
Redemption price, percentage of principal amount redeemed					25%
EEH Credit Agreement
Debt Instrument [Line Items]
Current borrowing base under EEH credit agreement							$ 800,000,000		$ 800,000,000	$ 825,000,000	$ 650,000,000
Line of credit, borrowing base							$ 1,400,000,000	$ 1,325,000,000
Credit agreement, covenant, current ratio		1
Credit agreement, covenant, leverage ratio		3.5
Long-term debt outstanding			$ 395,000,000		$ 395,000,000						320,000,000
Long-term debt, percentage bearing annual interest rate			4.584%		4.584%
Additional borrowing base available under credit agreement			$ 405,000,000		$ 405,000,000
Averaged interest rate on borrowings			4.42%	3.33%	4.04%	3.36%
Commitment fees on borrowings			$ 0	$ 200,000	$ 200,000	$ 400,000
Amortization of deferred financing costs			900,000	200,000	1,600,000	300,000
Capitalized costs associated with borrowings			5,700,000	800,000	11,600,000	1,800,000
Debt issuance costs, net			18,300,000		18,300,000						6,700,000
Accumulated amortization			4,900,000		4,900,000						$ 3,300,000
EEH Credit Agreement | Minimum
Debt Instrument [Line Items]
Applicable margin percentage		1.25%
Commitment fee percentage		0.375%
EEH Credit Agreement | Maximum
Debt Instrument [Line Items]
Applicable margin percentage		2.25%
Commitment fee percentage		0.50%
EEH Credit Agreement | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Applicable margin percentage		1%
EEH Credit Agreement | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum
Debt Instrument [Line Items]
Applicable margin percentage		2.25%
EEH Credit Agreement | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum
Debt Instrument [Line Items]
Applicable margin percentage		3.25%
EEH Credit Agreement | Federal Funds Rate
Debt Instrument [Line Items]
Applicable margin percentage		0.50%
8.000% Senior Notes Due 2027 | Senior Notes
Debt Instrument [Line Items]
Debt instrument, face amount	$ 550,000,000
Interest rate, stated percentage	8%
Decrease in principal amount	$ 500,000,000
Capitalized costs associated with borrowings				$ 0	12,800,000	$ 0
Debt issuance costs, net			12,200,000		12,200,000
Accumulated amortization			500,000		500,000
Proceeds from issuance of debt, net	$ 537,200,000
Interest payable			$ 9,500,000		$ 9,500,000
8.000% Senior Notes Due 2027 | Senior Notes | Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Redemption price, percentage of principal amount redeemed	100%
8.000% Senior Notes Due 2027 | Senior Notes | Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Redemption price, percentage of principal amount redeemed	35%
Debt Instrument, redemption price	108%
Redemption price, percentage of principal amount outstanding	65%

Asset Retirement Obligations (D

Asset Retirement Obligations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Beginning asset retirement obligations			$ 15,866
Liabilities incurred			215
Liabilities settled			(475)
Acquisitions			19,165
Accretion expense	$ 708	$ 303	1,105	$ 593
Revision of estimates			69
Ending asset retirement obligations	$ 35,945		$ 35,945

Related Party Transactions (Det

Related Party Transactions (Details) $ in Thousands					3 Months Ended		6 Months Ended
	Apr. 14, 2022 USD ($) shares	Feb. 15, 2022 USD ($) shares	Jan. 30, 2022 USD ($) shares	Jul. 20, 2021 USD ($) shares	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($) seller	Jun. 30, 2022 USD ($)	Jul. 06, 2022 shares	Mar. 31, 2022 USD ($)
Related Party Transaction [Line Items]
Deferred acquisition payment - Chisholm									$ 70,000
Payments of stock issuance costs	$ 200				$ 674		$ 674
Securities Purchase Agreement
Related Party Transaction [Line Items]
Sale of stock, proceeds received on transaction	$ 279,300		$ 280,000
Eagle Ford Acquisitions
Related Party Transaction [Line Items]
Total consideration transferred						$ 45,200
Number of separate sellers | seller						4
Eagle Ford, Seller One
Related Party Transaction [Line Items]
Total consideration transferred						$ 8,200
Class A Common Stock | Subsequent Event
Related Party Transaction [Line Items]
Convertible preferred stock, shares issued upon conversion (in shares) | shares								25,225,225
Series A Convertible Preferred Stock | Securities Purchase Agreement
Related Party Transaction [Line Items]
Sale of stock, number of shares issued in transaction (in shares) | shares	280,000		280,000
Series A Convertible Preferred Stock | Securities Purchase Agreement | En Cap And Affiliates
Related Party Transaction [Line Items]
Sale of stock, number of shares issued in transaction (in shares) | shares			220,000
Series A Convertible Preferred Stock | Securities Purchase Agreement | Post Oak And Affiliates
Related Party Transaction [Line Items]
Sale of stock, number of shares issued in transaction (in shares) | shares			60,000
Chisholm Acquisition
Related Party Transaction [Line Items]
Cash consideration		$ 383,843
Asset acquisition, ownership percentage before acquisition		25%
Asset acquisition, percentage of voting interest acquired		36%
Chisholm Acquisition | Class A Common Stock
Related Party Transaction [Line Items]
Shares of Class A Common Stock issued (in shares) | shares		19,417,476
Tracker And Sequel Aquisitions
Related Party Transaction [Line Items]
Cash consideration				$ 60,159
Tracker And Sequel Aquisitions | Class A Common Stock
Related Party Transaction [Line Items]
Shares of Class A Common Stock issued (in shares) | shares				6,200,000
Tracker Purchase Agreement
Related Party Transaction [Line Items]
Cash consideration				$ 18,800
Shares of 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%
Tracker Purchase Agreement | Class A Common Stock
Related Party Transaction [Line Items]
Shares of Class A Common Stock issued (in shares) | shares				4,700,000
EEH Credit Agreement | Chisholm Acquisition
Related Party Transaction [Line Items]
Cash consideration		$ 377,500

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Jun. 30, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Purchase obligation, to be paid, remainder of fiscal year	$ 13.6
Purchase obligation, to be paid, year one	$ 3.7

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		6 Months Ended
	Feb. 15, 2022	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Income Tax Disclosure [Line Items]
Annual limitation of operating loss carryforwards	$ 10,100
Accrued income taxes, current		$ 800		$ 800		$ 900
Income tax expense (benefit)		$ 22,688	$ (486)	21,155	$ (794)
Deferred income tax expense (benefit)				20,546	(794)
Valuation allowance				6,400
State and Local Jurisdiction
Income Tax Disclosure [Line Items]
Deferred income tax expense (benefit)				1,300
Texas Margin Tax
Income Tax Disclosure [Line Items]
Income tax expense (benefit)					400
Earthstone Energy, Inc.
Income Tax Disclosure [Line Items]
Deferred income tax expense (benefit)				17,900
Earthstone Energy Holdings, LLC
Income Tax Disclosure [Line Items]
Income tax expense (benefit)					(2,600)
Deferred income tax expense (benefit)				24,300
Earthstone Energy Holdings, LLC | Texas Margin Tax
Income Tax Disclosure [Line Items]
Deferred income tax expense (benefit)					(800)
Lynden Corp
Income Tax Disclosure [Line Items]
Deferred income tax expense (benefit)				$ 2,000	$ (400)
Class A Common Stock
Income Tax Disclosure [Line Items]
Share price (in dollars per share)	$ 12.85
Chisholm Acquisition | Class A Common Stock
Income Tax Disclosure [Line Items]
EEH Units issued in connect with Acquisition (in shares)	19,417,476
Share price (in dollars per share)	$ 12.85