Earthstone Energy (ESTE) 10-Q 2 Aug 23 2023 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2023	Jul. 25, 2023
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
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	2023
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		106,331,055
Class B Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		34,257,641

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 49,500	$ 0
Accounts receivable:
Oil, natural gas, and natural gas liquids revenues	111,436	161,531
Joint interest billings and other, net of allowance of $19 and $19 at June 30, 2023 and December 31, 2022, respectively	24,196	34,549
Derivative asset	7,106	31,331
Prepaid expenses and other current assets	19,658	18,854
Total current assets	211,896	246,265
Oil and gas properties, successful efforts method:
Proved properties	4,348,453	3,987,901
Unproved properties	280,221	282,589
Land	5,482	5,482
Total oil and gas properties	4,634,156	4,275,972
Accumulated depreciation, depletion and amortization	(832,886)	(619,196)
Net oil and gas properties	3,801,270	3,656,776
Other noncurrent assets:
Office and other equipment, net of accumulated depreciation of $6,090 and $5,273 at June 30, 2023 and December 31, 2022, respectively	6,056	5,394
Derivative asset	2,284	9,117
Operating lease right-of-use assets	6,573	4,569
Other noncurrent assets	92,362	15,280
TOTAL ASSETS	4,120,441	3,937,401
Current liabilities:
Accounts payable	53,824	91,815
Revenues and royalties payable	166,380	163,368
Accrued expenses	102,201	80,942
Asset retirement obligation	860	948
Derivative liability	31,702	14,053
Advances	11,449	7,312
Operating lease liabilities	906	842
Finance lease liabilities	1,083	802
Other current liabilities	14,335	16,202
Total current liabilities	382,740	376,284
Noncurrent liabilities:
Long-term debt, net	1,021,555	1,053,879
Deferred tax liability	174,565	138,336
Asset retirement obligation	29,695	29,611
Derivative liability	10,624	0
Operating lease liabilities	3,524	3,889
Finance lease liabilities	1,151	876
Other noncurrent liabilities	4,760	10,509
Total noncurrent liabilities	1,245,874	1,237,100
Commitments and Contingencies (Note 13)
Equity:
Preferred stock, $0.001 par value, 20,000,000 shares authorized; none issued or outstanding	0	0
Additional paid-in capital	1,345,657	1,346,463
Retained earnings	411,301	292,711
Total Earthstone Energy, Inc. equity	1,757,098	1,639,314
Noncontrolling interest	734,729	684,703
Total equity	2,491,827	2,324,017
TOTAL LIABILITIES AND EQUITY	4,120,441	3,937,401
Class A Common Stock
Equity:
Common stock	106	106
Class B Common Stock
Equity:
Common stock	$ 34	$ 34

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Joint interest billings and other, allowance	$ 19	$ 19
Office and other equipment, accumulated depreciation	$ 6,090	$ 5,273
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	20,000,000	20,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, shares outstanding (in shares)	140,600,000
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)	106,331,055	105,547,139
Common stock, shares outstanding (in shares)	106,331,055	105,547,139
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)	34,257,641	34,259,641
Common stock, shares outstanding (in shares)	34,257,641	34,259,641

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
REVENUES
Total revenues	$ 370,008	$ 472,551	$ 783,144	$ 668,701
OPERATING COSTS AND EXPENSES
Lease operating expense	87,602	50,514	175,580	72,145
Production and ad valorem taxes	31,805	34,195	64,958	47,510
Depreciation, depletion and amortization	109,990	66,463	220,740	100,789
Impairment expense	854	0	854	0
General and administrative expense	19,992	14,077	37,571	26,383
Transaction costs	208	(402)	401	10,340
Accretion of asset retirement obligation	646	708	1,275	1,105
Exploration expense	6,082	0	6,548	92
Total operating costs and expenses	257,179	165,555	507,927	258,364
Gain on sale of oil and gas properties	49,254	0	46,114	0
Income from operations	162,083	306,996	321,331	410,337
OTHER INCOME (EXPENSE)
Interest expense, net	(22,092)	(16,625)	(44,948)	(21,943)
Write-off of deferred financing costs	0	0	(5,109)	0
Loss on derivative contracts, net	(40,309)	(49,907)	(66,773)	(201,387)
Other income, net	819	249	812	296
Total other income (expense)	(61,582)	(66,283)	(116,018)	(223,034)
Income before income taxes	100,501	240,713	205,313	187,303
Income tax expense	(18,053)	(22,688)	(36,654)	(21,155)
Net income	82,448	218,025	168,659	166,148
Less: Net income attributable to noncontrolling interest	24,406	73,140	50,069	54,741
Net income attributable to Earthstone Energy, Inc.	$ 58,042	$ 144,885	$ 118,590	$ 111,407
Net income per common share attributable to Earthstone Energy, Inc.:
Basic (in dollars per share)	$ 0.55	$ 1.85	$ 1.12	$ 1.57
Diluted (in dollars per share)	$ 0.54	$ 1.46	$ 1.10	$ 1.37
Weighted average common shares outstanding:
Basic (in shares)	106,209,657	78,291,037	106,091,850	70,909,353
Diluted (in shares)	107,336,695	102,410,036	107,438,062	84,266,422
Oil
REVENUES
Total revenues	$ 294,997	$ 286,632	$ 612,375	$ 424,384
Natural gas
REVENUES
Total revenues	20,649	96,125	50,667	119,083
Natural gas liquids
REVENUES
Total revenues	$ 54,362	$ 89,794	$ 120,102	$ 125,234

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands	Total	Total Earthstone Energy, Inc. Equity	Common Stock Class A Common Stock	Common Stock Class B Common Stock	Additional Paid-in Capital	Retained Earnings	Noncontrolling Interest	Preferred Stock Series A Convertible Preferred Stock
Beginning balance (in shares) at Dec. 31, 2021			53,467,307	34,344,532				0
Beginning balance at Dec. 31, 2021	$ 1,046,261	$ 558,494	$ 53	$ 34	$ 718,181	$ (159,774)	$ 487,767	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	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, net of taxes paid (in shares)			483,251
Vesting of restricted stock units, net of taxes paid	0		$ 1		(1)
Class A Shares retained by the Company in exchange for payment of recipient mandatory tax withholdings (in shares)			286,892
Class A 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			73,440,800	34,271,766				0
Ending balance at Mar. 31, 2022	1,242,302	773,948	$ 73	$ 34	967,093	(193,252)	468,354	$ 0
Beginning balance (in shares) at Dec. 31, 2021			53,467,307	34,344,532				0
Beginning balance at Dec. 31, 2021	1,046,261	558,494	$ 53	$ 34	718,181	(159,774)	487,767	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	166,148
Ending balance (in shares) at Jun. 30, 2022			79,217,423	34,261,641				280,000
Ending balance at Jun. 30, 2022	1,819,384	1,278,039	$ 79	$ 34	1,326,293	(48,367)	541,345	$ 0
Beginning balance (in shares) at Mar. 31, 2022			73,440,800	34,271,766				0
Beginning balance at Mar. 31, 2022	1,242,302	773,948	$ 73	$ 34	967,093	(193,252)	468,354	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	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	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, net of taxes paid (in shares)			115,521
Class A Shares retained by the Company in exchange for payment of recipient mandatory tax withholdings (in shares)			48,232
Class A 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
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			79,217,423	34,261,641				280,000
Ending balance at Jun. 30, 2022	1,819,384	1,278,039	$ 79	$ 34	1,326,293	(48,367)	541,345	$ 0
Beginning balance (in shares) at Dec. 31, 2022			105,547,139	34,259,641				0
Beginning balance at Dec. 31, 2022	2,324,017	1,639,314	$ 106	$ 34	1,346,463	292,711	684,703	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	3,844	3,844			3,844
Vesting of restricted stock units, net of taxes paid (in shares)			756,429
Class A Shares retained by the Company in exchange for payment of recipient mandatory tax withholdings (in shares)			460,473
Class A Shares retained by the Company in exchange for payment of recipient mandatory tax withholdings	(6,342)	(6,342)			(6,342)
Cancellation of treasury shares (in shares)			(460,473)
Net income (loss)	86,211	60,548				60,548	25,663
Ending balance (in shares) at Mar. 31, 2023			106,303,568	34,259,641				0
Ending balance at Mar. 31, 2023	2,407,730	1,697,364	$ 106	$ 34	1,343,965	353,259	710,366	$ 0
Beginning balance (in shares) at Dec. 31, 2022			105,547,139	34,259,641				0
Beginning balance at Dec. 31, 2022	2,324,017	1,639,314	$ 106	$ 34	1,346,463	292,711	684,703	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	168,659
Ending balance (in shares) at Jun. 30, 2023			106,331,055	34,257,641				0
Ending balance at Jun. 30, 2023	2,491,827	1,757,098	$ 106	$ 34	1,345,657	411,301	734,729	$ 0
Beginning balance (in shares) at Mar. 31, 2023			106,303,568	34,259,641				0
Beginning balance at Mar. 31, 2023	2,407,730	1,697,364	$ 106	$ 34	1,343,965	353,259	710,366	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	3,937	3,937			3,937
Vesting of restricted stock units, net of taxes paid (in shares)			131,381
Class A Shares retained by the Company in exchange for payment of recipient mandatory tax withholdings (in shares)			56,683
Class A Shares retained by the Company in exchange for payment of recipient mandatory tax withholdings	(799)	(799)			(799)
Cancellation of treasury shares (in shares)			(56,683)
Class B Common Stock converted to Class A Common Stock (in shares)			2,000	2,000
Class B Common Stock converted to Class A Common Stock	0	43			43		(43)
Settlement of Chisholm escrow shares (in shares)			(105,894)
Settlement of Chisholm escrow shares	(1,489)	(1,489)			(1,489)
Net income (loss)	82,448	58,042				58,042	24,406
Ending balance (in shares) at Jun. 30, 2023			106,331,055	34,257,641				0
Ending balance at Jun. 30, 2023	$ 2,491,827	$ 1,757,098	$ 106	$ 34	$ 1,345,657	$ 411,301	$ 734,729	$ 0

Condensed Consolidated Statem_3

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

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net income	$ 168,659	$ 166,148
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	220,740	100,789
Impairment of oil and gas properties	854	0
Accretion of asset retirement obligations	1,275	1,105
Settlement of asset retirement obligations	(1,036)	(475)
Gain on sale of oil and gas properties	(46,114)	0
Gain on sale of office and other equipment	(33)	(46)
Total loss on derivative contracts, net	66,773	201,387
Operating portion of net cash paid in settlement of derivative contracts	(7,443)	(110,785)
Stock-based compensation - equity and liability awards	12,453	11,790
Deferred income taxes	36,229	20,546
Write-off of deferred financing costs	5,109	0
Amortization of deferred financing costs	3,459	2,069
Changes in assets and liabilities:
(Increase) decrease in accounts receivable	63,303	(184,315)
(Increase) decrease in prepaid expenses and other current assets	(834)	(11,103)
Increase (decrease) in accounts payable and accrued expenses	(62,031)	64,658
Increase (decrease) in revenues and royalties payable	11,267	85,570
Increase (decrease) in advances	4,137	(9,661)
Net cash provided by operating activities	476,767	337,677
Cash flows from investing activities:
Acquisition of oil and gas properties, net of cash acquired	(76,078)	(1,035,289)
Additions to oil and gas properties	(357,186)	(180,381)
Additions to office and other equipment	(482)	(1,356)
Proceeds from sales of oil and gas properties	56,062	0
Net cash used in investing activities	(377,684)	(1,217,026)
Cash flows from financing activities:
Proceeds from borrowings under Credit Agreement	1,890,487	1,471,572
Repayments of borrowings under Credit Agreement	(2,160,624)	(1,396,572)
Repayment of term loan	(250,000)	0
Proceeds from issuance of Series A Convertible Preferred Stock, net of offering costs of $674	0	279,326
Cash paid related to the exchange and cancellation of Class A Common Stock	(7,141)	(4,617)
Cash paid for finance leases	(441)	0
Deferred financing costs	(3,079)	(11,623)
Net cash (used in) provided by financing activities	(49,583)	875,336
Net increase (decrease) in cash and cash equivalents	49,500	(4,013)
Cash and cash equivalents at beginning of period	0	4,013
Cash and cash equivalents at end of period	49,500	0
8.000% Senior Notes Due 2027 | Senior Notes
Cash flows from financing activities:
Proceeds from issuance, net	0	537,250
9.875% Senior Notes Due 2031 | Senior Notes
Cash flows from financing activities:
Proceeds from issuance, net	$ 481,215	$ 0

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022	Jun. 30, 2023
Offering costs	$ 674	$ 674
8.000% Senior Notes Due 2027 | Senior Notes
Interest rate, stated percentage (in percent)			8%
9.875% Senior Notes Due 2031 | Senior Notes
Interest rate, stated percentage (in percent)			9.875%

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2023
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”), collectively own a 75.6% interest in EEH. The Company consolidates the financial results of EEH and presents a noncontrolling interest in the Condensed Consolidated Financial Statements representing the economic interests of EEH’s members other than Earthstone and Lynden US. Each of the outstanding shares of Class A common stock, $0.001 par value per share of Earthstone (the “Class A Common Stock”), has a corresponding unit of limited liability company interests denominated as a common unit in EEH (an “EEH Unit”). Each of the outstanding shares of Class B common stock, $0.001 par value per share of Earthstone (the “Class B Common Stock” and with the Class A Common Stock, “Common Stock”), has a corresponding EEH Unit and collectively represent the noncontrolling interests in the Condensed Consolidated Financial Statements. At any time, at the holder’s discretion, a holder of an EEH Unit and a share of Class B Common Stock may receive a share of Class A Common Stock in exchange for an EEH Unit and a corresponding share of Class B Common Stock, resulting in the immediate cancellation of both the EEH Unit and share of Class B Common Stock exchanged. As of June 30, 2023, outstanding common shares of Earthstone, along with the equal number of corresponding outstanding EEH Units, were approximately 140.6 million, consisting of 106.3 million shares of Class A Common Stock and 34.3 million shares of Class B Common Stock. 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 2022 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 as of December 31, 2022 is derived from the audited Consolidated Financial Statements at that date. For the purposes of these Condensed Consolidated Financial Statements, short-term investments, which have an original maturity of three months or less, are considered cash equivalents.

Noncontrolling Interest

Noncontrolling Interest	6 Months Ended
	Jun. 30, 2023
Noncontrolling Interest [Abstract]
Noncontrolling Interest	Noncontrolling InterestEarthstone consolidates the financial results of EEH and its subsidiaries and records a noncontrolling interest for the economic interest in Earthstone held by the members of EEH other than Earthstone and Lynden US. Net income attributable to noncontrolling interest in the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2023 and 2022 represents the portion of net income 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, 2023 and December 31, 2022 represents the portion of net assets of the Company attributable to the members of EEH other than Earthstone and Lynden US. The following table presents the changes in noncontrolling interest for the six months ended June 30, 2023: EEH Units Held % EEH Units Held % Total EEH As of December 31, 2022 105,547,139 75.5 % 34,259,641 24.5 % 139,806,780 EEH Units exchanged for shares of Class A Common Stock 2,000 (2,000) — EEH Units cancelled in connection with the settlement of Chisholm escrow shares (105,894) — (105,894) EEH Units issued in connection with the vesting of restricted stock units and performance units 887,810 — 887,810 As of June 30, 2023 106,331,055 75.6 % 34,257,641 24.4 % 140,588,696

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The Financial Accounting Standards Board (“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. FASB ASC Topic 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 FASB ASC Topic 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, 2023. 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 swaps, basis swaps, costless collars and deferred premium put options. The Company’s commodity price hedges are valued based on discounted future cash flow models that are primarily based on published forward commodity price 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”) and performance-based restricted stock units (“PRSUs” and collectively with the PSUs, “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 performance unit liability awards is included in Other noncurrent liabilities in the Condensed Consolidated Balance Sheet as of June 30, 2023. 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, 2023 Level 1 Level 2 Level 3 Total Financial assets Derivative asset - current $ — $ 7,106 $ — $ 7,106 Derivative asset - noncurrent — 2,284 — 2,284 Total financial assets $ — $ 9,390 $ — $ 9,390 Financial liabilities Derivative liability - current $ — $ 31,702 $ — $ 31,702 Derivative liability - noncurrent — 10,624 — 10,624 Share-based compensation liability - current — 12,722 — 12,722 Share-based compensation liability - noncurrent — 2,179 — 2,179 Total financial liabilities $ — $ 57,227 $ — $ 57,227 December 31, 2022 Financial assets Derivative asset - current $ — $ 31,331 $ — $ 31,331 Derivative asset - noncurrent — 9,117 — 9,117 Total financial assets $ — $ 40,448 $ — $ 40,448 Financial liabilities Derivative liability - current $ — $ 14,053 $ — $ 14,053 Share-based compensation liability - current — 14,411 — 14,411 Share-based compensation liability - noncurrent — 10,357 — 10,357 Total financial liabilities $ — $ 38,821 $ — $ 38,821 Other financial instruments include cash, accounts receivable and payable, and revenue royalties. The carrying amount of these instruments approximates fair value because of their short-term nature. The Company’s revolving credit facility obligation bears interest at floating market rates, therefore carrying amounts and fair value of any outstanding amounts would be approximately equal. The 2027 Notes and 2031 Notes bear interest at fixed rates. 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, 2023. See further discussion in Note 6. 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, 2023
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 portion of its expected oil and natural gas production through December 31, 2024 and maintains certain natural gas basis swaps through December 31, 2025. 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. The Company’s derivative instruments are cash flow hedge transactions in which it is hedging the variability of cash flow related to a forecasted transaction. 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 following table sets forth the Company's open crude oil and natural gas derivative contracts as of June 30, 2023. When aggregating multiple contracts, the weighted average contract price is disclosed. Price Swaps Period Commodity Volume Weighted Average Price Q3 - Q4 2023 Crude Oil 1,145,200 $74.90 Q1 - Q4 2024 Crude Oil 621,600 $69.28 Q3 - Q4 2023 Crude Oil Basis Swap (1) 4,692,000 $0.92 Q3 - Q4 2023 Natural Gas 2,300,000 $3.35 Q3 - Q4 2023 Natural Gas Basis Swap (2) 25,760,000 $(1.67) Q1 - Q4 2024 Natural Gas Basis Swap (2) 36,600,000 $(1.05) Q1 - Q4 2025 Natural Gas Basis Swap (2) 14,600,000 $(0.74) (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 2023 Crude Oil Costless Collar 2,120,800 $62.73 $85.26 Q1 - Q4 2024 Crude Oil Costless Collar 732,000 $60.00 $76.01 Q3 - Q4 2023 Natural Gas Costless Collar 13,298,800 $3.12 $5.21 Q1 - Q4 2024 Natural Gas Costless Collar 14,640,000 $2.56 $4.51 Deferred Premium Puts Period Commodity Volume $/Bbl (Put Price) $/Bbl (Net of Premium) Q3 - Q4 2023 Crude Oil 791,200 $70.00 $64.54 Q1 - Q4 2024 Crude Oil 915,000 $65.00 $60.04 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, 2023 December 31, 2022 Derivatives not Balance Sheet Location Gross Gross Net Gross Gross Net Commodity contracts Derivative asset - current $ 20,420 $ (13,314) $ 7,106 $ 51,803 $ (20,472) $ 31,331 Commodity contracts Derivative liability - current $ 45,016 $ (13,314) $ 31,702 $ 34,525 $ (20,472) $ 14,053 Commodity contracts Derivative asset - noncurrent $ 3,516 $ (1,232) $ 2,284 $ 9,117 $ — $ 9,117 Commodity contracts Derivative liability - noncurrent $ 11,856 $ (1,232) $ 10,624 $ — $ — $ — 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 2023 2022 2023 2022 Unrealized (loss) gain Not separately presented Not separately presented $ (39,891) $ 29,192 $ (59,330) $ (90,602) Realized loss Operating portion of net cash paid in settlement of derivative contracts Not separately presented (418) (79,099) (7,443) (110,785) Total loss on derivative contracts, net Loss on derivative contracts, net $ (40,309) $ (49,907) $ (66,773) $ (201,387)

Acquisitions and Divestitures

Acquisitions and Divestitures	6 Months Ended
	Jun. 30, 2023
Business Combination and Asset Acquisition [Abstract]
Acquisitions and Divestitures	Acquisitions and Divestitures Novo Acquisition On June 14, 2023, EEH entered into (i) a Securities Purchase Agreement (the “Novo Purchase Agreement”) with Novo Oil & Gas Legacy Holdings, LLC (“Holdings”), Novo Intermediate, LLC (“Intermediate,” and together with Holdings, collectively, the “Sellers”) and Novo Oil & Gas Holdings, LLC (“Novo”), pursuant to which EEH will acquire 100% of the issued and outstanding equity interests (the “Subject Securities”) of Novo (the “Novo Acquisition”); and (ii) an Acquisition and Cooperation Agreement (the “Cooperation Agreement”) with Northern Oil and Gas, Inc. (“NOG”), pursuant to which NOG has agreed to acquire, immediately after the closing of the Novo Acquisition, an undivided 1/3 interest in Novo’s oil and natural gas properties and related assets (the “Novo Assets”) acquired pursuant to the Novo Purchase Agreement (the “Novo Divestiture” and, together with the Novo Acquisition, the “Novo Transactions”). A Significant Shareholder is the majority owner of the Sellers. Under the terms and conditions of the Novo Purchase Agreement, which has an economic effective date of May 1, 2023, the aggregate consideration to be paid to the Sellers in the Novo Acquisition will consist of $1.5 billion in cash (the “Novo Consideration”), subject to customary purchase price adjustments. Pursuant to the Novo Purchase Agreement, on the execution date thereof, EEH (together with NOG) deposited approximately $112.5 million (the “Acquisition Deposit”) into escrow, which will be credited toward the Novo Consideration payable at the closing of the Novo Acquisition. EEH’s portion of the deposit was $75 million which is included in Other noncurrent assets in the Condensed Consolidated Balance Sheets (Unaudited) as of June 30, 2023. Immediately after the consummation of the Novo Acquisition, pursuant to the Cooperation Agreement, EEH has agreed to transfer to NOG an undivided 1/3 interest in the Novo Assets acquired pursuant to the Novo Purchase Agreement in exchange for consideration of approximately $500.0 million in cash, subject to certain customary purchase price adjustments. As a result, assuming an undivided 1/3 interest in the Novo Assets are transferred at the closing of the Cooperation Agreement, the Company will have acquired Novo, and retained ownership of an undivided 2/3 interest in the Novo Assets, for an unadjusted aggregate purchase price of approximately $1.0 billion in cash. The Sellers and Purchaser have made customary representations and warranties in the Novo Purchase Agreement. The Novo Purchase Agreement also contains customary covenants and agreements, including, among others, covenants and agreements relating to (a) the conduct of Novo’s businesses during the period between the execution of the Novo Purchase Agreement and closing of the Novo Acquisition and (b) the efforts of the parties to cause the Novo Acquisition to be completed, including obtaining any required governmental approval and causing any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 to expire or terminate. Titus Acquisition On June 27, 2022, Earthstone and EEH, 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”) which provided that EEH or its designated wholly-owned subsidiary would 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 (the “Titus I Assets”). 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” and together with Titus I, “Titus”), as seller, entered into a purchase and sale agreement (the “Titus II Purchase Agreement” and together with the Titus I Purchase Agreement, the “Titus Purchase Agreements”) which provided that EEH or its designated wholly-owned subsidiary would acquire (the “Titus II Acquisition” and together with the Titus I Acquisition, the “Titus Acquisition”) interests in oil and gas leases and related property of Titus II located in the Northern Delaware Basin of New Mexico (the “Titus II Assets” and together with the Titus I Assets, the “Titus Assets”). On August 10, 2022, the transactions contemplated in the Titus Purchase Agreements were consummated whereby EEH acquired the Titus Assets for aggregate consideration of approximately $568.5 million in cash, net of customary purchase price adjustments, and 3,857,015 shares of Class A Common Stock. The Titus Acquisition was accounted for as an asset acquisition. The consideration paid by the Company and allocation of that amount to the underlying assets acquired, on a relative fair value basis, was recorded on the Company's books as of the date of the closing of the Titus Acquisition. Additionally, costs directly related to the Titus Acquisition were capitalized as a component of the purchase price. The consideration transferred, assets acquired and liabilities assumed by the Company were recorded as follows (in thousands, except share amounts and stock price): Consideration: Shares of Class A Common Stock issued 3,857,015 Class A Common Stock price as of August 10, 2022 $ 13.89 Class A Common Stock consideration 53,574 Cash consideration 567,334 Direct transaction costs 1,202 Total consideration transferred $ 622,110 Assets acquired: Oil and gas properties $ 626,696 Amount attributable to assets acquired $ 626,696 Liabilities assumed: Current liabilities $ 3,672 Noncurrent liabilities - ARO 914 Amount attributable to liabilities assumed $ 4,586 Bighorn Acquisition On January 30, 2022, Earthstone, EEH, as buyer, 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 $628.3 million in cash, net of customary purchase price adjustments, and 5,650,977 shares Class A Common Stock. The Bighorn Acquisition was accounted for as an asset acquisition. The consideration paid by the Company and allocation of that amount to the underlying assets acquired, on a relative fair value basis, was recorded on the Company's 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. The consideration transferred, assets acquired and liabilities assumed by the Company 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 625,887 Direct transaction costs 2,397 Total consideration transferred $ 706,041 Assets acquired: Current assets $ 769 Oil and gas properties 746,211 Amount attributable to assets acquired $ 746,980 Liabilities assumed: Suspense payable $ 25,710 Other current liabilities 2,035 Noncurrent liabilities - ARO 13,194 Amount attributable to liabilities assumed $ 40,939 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 consisting of: (i) approximately $313.9 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 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. On April 10, 2023, 105,894 shares of Class A Common Stock were released to Earthstone from escrow and canceled in connection with the settlement of the Chisholm Acquisition. A Significant Shareholder, as identified below, was the majority owner 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 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 19,311,582 Class A Common Stock price as of February 15, 2022 $ 12.85 Class A Common Stock consideration 248,154 Cash consideration 383,877 Total consideration transferred $ 632,031 Fair value of assets acquired: Oil and gas properties $ 642,391 Amount attributable to assets acquired $ 642,391 Fair value of liabilities assumed: Other current liabilities $ 4,389 Asset retirement obligation - noncurrent 5,971 Amount attributable to liabilities assumed $ 10,360 The fair value measurements of assets acquired and liabilities assumed are based on inputs that are not observable in the market and therefore represent Level 3 inputs. The fair value of oil and gas properties and asset retirement obligations were measured using the discounted cash flow technique of valuation. Significant inputs to the valuation of oil and gas properties include estimates of: (i) reserves, (ii) future operating and development costs, (iii) future commodity prices, (iv) future plugging and abandonment costs, (v) estimated future cash flows, and (vi) a market-based weighted average cost of capital rate. These inputs require significant judgments and estimates and are the most sensitive and subject to change. Divestitures During the three and six months ended June 30, 2023, the Company sold certain non-core properties for approximately $54.2 million and $56.1 million, respectively, in cash, resulting in net gains of approximately $49.3 million and $46.1 million, respectively, recorded in Gain on sale of oil and gas properties, net in the Condensed Consolidated Statements of Operations for each of the periods then ended. There were no material divestitures during the six months ended June 30, 2022.

Oil and Natural Gas Properties

Oil and Natural Gas Properties	6 Months Ended
	Jun. 30, 2023
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, 2023, depletion expense for oil and gas producing property and related equipment was $109.6 million and $219.9 million, 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. Our accrual basis capital expenditures for the three and six months ended June 30, 2023, were as follows ( in thousands ): Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Development costs $ 173,702 $ 375,086 Leasehold costs 738 1,626 Total capital expenditures $ 174,440 $ 376,712 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 During the three and six months ended June 30, 2023, the Company recorded non-cash impairment charges of $0.9 million to its oil and natural gas properties due to acreage expirations in non-core operating areas. No impairments were recorded to the Company's oil and natural gas properties during the three and six months ended June 30, 2022.

Net Income Per Common Share

Net Income Per Common Share	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
Net Income Per Common Share	Net Income Per Common ShareNet income per common share—basic is calculated by dividing Net income by the weighted average number of shares of common stock outstanding during the period. Net income per common share—diluted assumes the conversion of all potentially dilutive securities and is calculated by dividing Net income by the sum of the weighted average number of shares of common stock, as defined above, outstanding plus potentially dilutive securities. Net income 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 per common share is as follows: Three Months Ended Six Months Ended (In thousands, except per share amounts) 2023 2022 2023 2022 Net income attributable to Earthstone Energy, Inc. $ 58,042 $ 144,885 $ 118,590 $ 111,407 Net income attributable to Earthstone Energy, Inc. from assumed conversion of Series A Convertible Preferred Stock — 4,351 — 4,351 Net income attributable to Earthstone Energy, Inc. - Diluted $ 58,042 $ 149,236 $ 118,590 $ 115,758 Net income per common share attributable to Earthstone Energy, Inc.: Basic $ 0.55 $ 1.85 $ 1.12 $ 1.57 Diluted $ 0.54 $ 1.46 $ 1.10 $ 1.37 Weighted average common shares outstanding Basic 106,209,657 78,291,037 106,091,850 70,909,353 Add potentially dilutive securities: Unvested restricted stock units 204,310 493,600 276,434 506,760 Unvested performance units 922,728 2,003,778 1,069,778 1,979,770 Series A Convertible Preferred Stock — 21,621,621 — 10,870,539 Diluted weighted average common shares outstanding 107,336,695 102,410,036 107,438,062 84,266,422 The Class B Common Stock has been excluded, as its conversion would eliminate noncontrolling interest and net income attributable to noncontrolling interest of $24.4 million for the three months ended June 30, 2023 and net income attributable to noncontrolling interest of $50.1 million for the six months ended June 30, 2023 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 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.

Common Stock

Common Stock	6 Months Ended
	Jun. 30, 2023
Equity [Abstract]
Common Stock	Common Stock Class A Common Stock At June 30, 2023 and December 31, 2022, there were 106,331,055 and 105,547,139 shares of Class A Common Stock issued and outstanding, respectively. During the three and six months ended June 30, 2023, 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 188,064 and 1,404,966 shares, respectively, of Class A Common Stock, of which 56,683 and 517,156 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. Additionally, on April 10, 2023, 105,894 shares of Class A Common Stock were released to Earthstone from escrow and canceled in connection with the settlement of the Chisholm Acquisition. 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 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. 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 closing of 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. Class B Common Stock At June 30, 2023 and December 31, 2022, there were 34,257,641 and 34,259,641 shares of Class B Common Stock issued and outstanding. 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, 2023, 2,000 shares 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, 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.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2023
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, 2023, 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 have voting rights prior to vesting and settlement. Holders of outstanding RSUs granted prior to December 1, 2022 do not have dividend rights prior to vesting and settlement. Holders of outstanding RSUs granted subsequent to December 1, 2022 do have dividend rights. 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 period 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, 2023: Shares Weighted-Average Grant Date Fair Value Unvested RSUs at December 31, 2022 869,978 $ 11.40 Granted 420,655 $ 13.37 Forfeited (22,252) $ 12.14 Vested (361,166) $ 11.10 Unvested RSUs at June 30, 2023 907,215 $ 12.41 As of June 30, 2023, there was $11.0 million of unrecognized compensation expense related to the RSU awards which will be recognized over a weighted average period of 1.06 years. For the three and six months ended June 30, 2023, Stock-based compensation related to RSUs was $1.8 million and $3.6 million, respectively. 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. Performance Units Performance units include both performance-based stock units (“PSUs”) and performance-based restricted stock units (“PRSUs”). The table below summarizes performance unit activity for the six months ended June 30, 2023: Shares Weighted-Average Grant Date Fair Value Unvested Performance Units at December 31, 2022 2,616,085 $ 10.21 Granted 559,325 $ 18.86 Vested (1,043,800) $ 5.36 Unvested Performance Units at June 30, 2023 2,131,610 $ 14.85 On January 6, 2023, the Board of Directors of Earthstone (the “Board”) granted 258,150 PRSUs (the “2023 RTSR PRSUs”) to certain officers pursuant to the 2014 Plan. The 2023 RTSR PRSUs are payable in cash or shares of Class A Common Stock upon the achievement by Earthstone over a period commencing on January 1, 2023 and ending on December 31, 2025 (the “2023 Performance Period”) of certain performance criteria established by the Board. The Company classifies these awards that will be settled in cash as liability awards. PRSU grants to be settled in shares are classified as equity awards. The holders of 2023 RTSR PRSUs do not have any voting rights with respect to such PRSUs until vesting and settlement; however, such holders do have dividend rights. The number of shares of Class A Common Stock that may be earned will be determined based on the TSR (as defined below) achieved by Earthstone relative to the TSR of each of the companies in the predetermined peer group during the Performance Period. Between 0x to 2.0x of the PRSUs are eligible to be earned based on Earthstone’s ranking relative to the companies in the predetermined peer group. In the event that greater than 1.0x of the 2023 RTSR PRSUs are earned, such additional PRSUs may be paid in cash rather than the issuance of shares of Class A Common Stock Total shareholder return is generally determined by dividing (A) the volume weighted average price of a share of stock for the trading days during the thirty calendar days ending on and including the last calendar day of the applicable performance period minus the volume weighted average price of a share of stock for the trading days during the thirty calendar days ending on and including the first day of the applicable performance period plus cash dividends paid over the applicable performance period by (B) the volume weighted average price of a share of stock for the trading days during the thirty calendar days ending on and including the first day of the applicable performance period (“TSR”). The Company accounts for the 2023 RTSR PRSU 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 2023 RTSR PRSUs, assuming a risk-free rate of 3.89% and volatilities ranging from 40.6% to 142.5%, the Company calculated the weighted average grant date fair value per PRSU to be $20.06. On January 6, 2023, the Board granted 301,175 PRSUs (the “2023 ATSR PRSUs”) to certain officers pursuant to the 2014 Plan. The 2023 ATSR PRSUs are payable in cash or shares of Class A Common Stock upon the achievement by Earthstone over the 2023 Performance Period of certain performance criteria established by the Board. The Company classifies these awards that will be settled in cash as liability awards. PRSU grants to be settled in shares are classified as equity awards. The holders of 2023 ATSR PRSUs do not have any voting rights with respect to such PRSUs until vesting and settlement; however, such holders do have dividend rights. The 2023 ATSR PRSUs are eligible to be earned based on the annualized TSR of the Class A Common Stock during the 2023 Performance Period. 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 2.0 14.5% 1.0 8.4% 0.5 Less than 8.4% 0.0 In the event that greater than 1.0x of the 2023 ATSR PRSUs are earned, such additional PRSUs may be paid in cash rather than the issuance of shares of Class A Common Stock. The Company accounts for the 2023 ATSR PRSUs 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 2023 ATSR PRSUs, assuming a risk-free rate of 3.89% and volatility of 77%, the Company calculated the weighted average grant date fair value per PRSU to be $17.84. On January 30, 2020, the Board granted 1,043,800 PSUs (the “2020 PSUs”) to certain officers pursuant to the 2014 Plan (the “2020 Grant”). The 2020 PSUs were settled on January 31, 2023 resulting in the issuance of 1,043,800 shares of Class A Common Stock and cash payments totaling approximately $14.5 million. As of June 30, 2023, there was $17.7 million of unrecognized compensation expense related to all PSU awards which will be amortized over a weighted average period of 0.89 years. For the three and six months ended June 30, 2023, Stock-based compensation related to all performance units was approximately $6.1 million and $8.9 million, respectively. For the three and six months ended June 30, 2022, Stock-based compensation related to all performance units was approximately $4.5 million and $9.1 million, respectively. The Company classifies awards that will be settled in cash as liability awards. PSU grants to be settled in shares are classified as equity awards. Corresponding liabilities of $12.7 million and $14.4 million related to the performance units were included in Other current liabilities and Accrued expenses, respectively, in the Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022, respectively. Additionally, corresponding liabilities of $2.2 million and $10.4 million related to the performance units were included in Other noncurrent liabilities in the Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022, respectively.

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt The Company's long-term debt consisted of the following ( in thousands ): June 30, 2023 December 31, 2022 Revolving credit facility (1) $ — $ 270,136 Term loan under credit facility due 2027 — 250,000 8.000% Senior notes due 2027 550,000 550,000 9.875% Senior notes due 2031 500,000 — 1,050,000 1,070,136 Unamortized debt issuance costs on term loan — (5,309) Unamortized debt issuance costs on 8.000% Senior notes (9,660) (10,948) Original issue discount on 9.875% Senior notes (2) (10,160) — Unamortized debt issuance costs on 9.875% Senior notes (2) (8,625) — Long-term debt, net $ 1,021,555 $ 1,053,879 (1) Related to the borrowings under the revolving credit facility, the Company had debt issuance costs of $16.4 million and $15.3 million, net of accumulated amortization of $8.5 million and $6.5 million, as of June 30, 2023 and December 31, 2022, respectively. Unamortized deferred financing costs on the borrowings under the revolving credit facility are included in Other noncurrent assets in the Condensed Consolidated Balance Sheets. (2) The 9.875% Senior notes due 2031 were issued on June 30, 2023 resulting in no amortization of the original issue discount and debt issuance costs in the current period. Beginning July 1, 2023, the Company will show amortization of the original issue discount and debt issuance costs as interest expense in the Condensed Consolidated Statement of Operations. Credit Agreement On November 21, 2019, Earthstone, EEH (the “Borrower”), Wells Fargo Bank, National Association, as Administrative Agent and Issuing Bank (“Wells Fargo”), BOKF, NA dba Bank of Texas, as Issuing Bank with respect to Existing Letters of Credit, Royal Bank of Canada, as Syndication Agent, Truist Bank, as successor by merger to SunTrust Bank, as Documentation Agent, and the Lenders party thereto (collectively, the “Parties”) entered into a credit agreement (together with all amendments or other modifications, the “Credit Agreement”), which replaced the prior credit facility, which was terminated on November 21, 2019. On March 30, 2023, Earthstone, EEH, Wells Fargo, the lenders party thereto (the “Lenders”) and the guarantors party thereto entered into an amendment (the “Eighth Amendment”) to the Credit Agreement. Among other things, the Eighth Amendment (i) increased elected commitments from $1.2 billion to $1.4 billion, (ii) settled the $250 million term loan tranche under the Credit Agreement (the “Term Loan”) through an elected revolving commitment, (iii) redetermined the borrowing base at $1.65 billion as a part of the regularly scheduled redetermination, (iv) added new banks to the lending group, and (v) made certain administrative changes. On July 7, 2023, Earthstone, EEH, Wells Fargo, the Lenders and the guarantors party thereto entered into an amendment (the “Ninth Amendment”) to the Credit Agreement. Among other things, the Amendment (i) adds JPMorgan Chase Bank, N.A. and Citibank N.A. as new Lenders, arrangers, and documentation agents for the Lenders under the Credit Agreement, (ii) increases the aggregate elected borrowing base commitments from $1.40 billion to $1.75 billion, and (iii) increases the borrowing base from $1.65 billion to $2.00 billion. The effectiveness of the Amendment is conditioned upon, among other things, the closing of the previously announced Novo Transactions. The next regularly scheduled redetermination of the borrowing base is expected to occur on or around October 1, 2023. 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 (as customarily defined) (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 was calculated as EBITDAX for the four consecutive fiscal quarters ending on such date. The term “EBITDAX” means, for any period, the sum of consolidated net income (loss) for such period plus (a) the following expenses or charges to the extent deducted from consolidated net income (loss) in such period: (i) interest, (ii) taxes, (iii) depreciation, (iv) depletion, (v) amortization, (vi) certain distributions to employees related to the stock compensation, (vii) certain transaction related expenses, (viii) reimbursed indemnification expenses related to certain dispositions and investments, (ix) non-cash extraordinary, usual, or nonrecurring expenses or losses, (x) other non-cash charges and minus (b) to the extent included in consolidated net income (loss) in such period: (i) non-cash income, (ii) gains on asset dispositions, disposals and abandonments outside of the ordinary course of business and (iii) to the extent not otherwise deducted from consolidated net income (loss), the aggregate amount of any pass-through cash distributions received by Borrower during such period in an amount equal to the aggregate amount of pass-through cash distributions actually made by Borrower during such period. The Credit 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, 2023, EEH was in compliance with the covenants under the Credit Agreement. As of June 30, 2023, no borrowings were outstanding under the Credit Agreement, resulting in $1.4 billion of borrowing base availability. At December 31, 2022, $270.1 million and $250.0 million of borrowings were outstanding under the revolving tranche and the term loan tranche of the Credit Agreement, respectively. For the three and six months ended June 30, 2023, the interest rate on borrowings under the revolving tranche of the Credit Agreement averaged 7.60% and 7.56% per annum, respectively, which excluded commitment fees of $0.9 million and $1.6 million, respectively, and amortization of deferred financing costs of $1.0 million and $2.0 million, respectively. For the three and six months ended June 30, 2022, the interest rate 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. No costs associated with the revolving tranche of the Credit Agreement were capitalized during the three months ended June 30, 2023. During the six months ended June 30, 2023, the Company capitalized $3.1 million of costs associated with the revolving tranche of the Credit Agreement. There were no costs associated with the term loan tranche of the Credit Agreement to capitalize during the three and six months ended June 30, 2023. 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. The Company’s policy is to capitalize the financing costs associated with its debt and amortize those costs on a straight-line basis over the term of the associated debt, which approximates the effective interest method over the term of the related debt. 8.000% Senior Notes At June 30, 2023, there were $550.0 million of outstanding senior notes due 2027 (the “2027 Notes”). The 2027 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. The 2027 Notes are guaranteed on a senior unsecured basis by Earthstone and four subsidiaries of EEH (the “Guarantors”) and the 2027 Notes may be guaranteed by certain of EEH’s future restricted subsidiaries. The 2027 Notes are unsecured, rank equally in right of payment with all existing and future senior unsecured indebtedness of EEH and the Guarantors, including the 2031 Notes, and rank senior in right of payment to any future subordinated indebtedness of EEH and the Guarantors. The 2027 Notes will rank effectively junior to all secured indebtedness of EEH and the Guarantors, including indebtedness under the Credit Agreement, to the extent of the value of the assets securing such indebtedness. The 2027 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 dated April 12, 2022 under which the 2027 Notes were issued also contains certain restrictive covenants, redemption rights, events of default and other customary provisions. As of June 30, 2023, accrued interest of $9.3 million associated with the 2027 Notes was included in Accrued expenses in the Condensed Consolidated Balance Sheets. 9.875% Senior Notes On June 30, 2023, EEH completed an offering of $500.0 million aggregate principal amount of EEH’s 9.875% senior notes due 2031 (the “2031 Notes”). The 2031 Notes will mature on July 15, 2031 with interest accruing at a rate of 9.875% per annum payable semi-annually in cash in arrears on January 15 and July 15 of each year, commencing January 15, 2024. The 2031 Notes are guaranteed on a senior unsecured basis by the Guarantors and the 2031 Notes may be guaranteed by certain of EEH’s future restricted subsidiaries. The 2031 Notes are unsecured, rank equally in right of payment with all existing and future senior unsecured indebtedness of EEH and the Guarantors, including the 2027 Notes, and rank senior in right of payment to any future subordinated indebtedness of EEH and the Guarantors. The 2031 Notes will rank effectively junior to all secured indebtedness of EEH and the Guarantors, including indebtedness under the Credit Agreement, to the extent of the value of the assets securing such indebtedness. The 2031 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 dated June 30, 2023 under which the 2031 Notes were issued (the “Indenture”) also contains certain restrictive covenants, redemption rights, events of default and other customary provisions. Subject to the terms of the Indenture, if the consummation of the Novo Acquisition does not occur before a specified date, EEH will be required to redeem all of the 2031 Notes issued on the issue date at a redemption price equal to 100% of the initial issue price of the 2031 Notes, plus accrued and unpaid interest on the 2031 Notes being redeemed, if any. As of June 30, 2023, accrued interest of $0.1 million associated with the 2031 Notes was included in Accrued expenses in the Condensed Consolidated Balance Sheets.

Asset Retirement Obligations

Asset Retirement Obligations	6 Months Ended
	Jun. 30, 2023
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligations	Asset Retirement Obligations The Company has asset retirement obligations associated with the future plugging and abandonment of oil and gas properties and related facilities. Revisions to the liability typically occur due to changes in the estimated abandonment costs, well economic lives, and the discount rate. The following table summarizes the Company’s asset retirement obligation transactions recorded during the six months ended June 30, 2023 (in thousands) : 2023 Beginning asset retirement obligations $ 30,559 Liabilities incurred 171 Liabilities settled (1,036) Accretion expense 1,275 Divestitures (892) Revision of estimates 478 Ending asset retirement obligations $ 30,555

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2023
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 5. Acquisitions and Divestitures , the Chisholm Acquisition was consummated on February 15, 2022, whereby the Company acquired the Chisholm Assets for a purchase price of $383.9 million in cash, net of customary purchase price adjustments, and approximately 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 approximately 19.4 million shares of Class A Common Stock in connection with the closing of the Chisholm Acquisition 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. On April 10, 2023, 105,894 shares of Class A Common Stock were released to Earthstone from escrow and canceled in connection with the settlement of the Chisholm Acquisition. As discussed in Note 5. Acquisitions and Divestitures , on June 14, 2023, EEH entered into the Novo Purchase Agreement. Pursuant to the Novo Purchase Agreement, EEH will acquire the Novo Assets for an aggregate purchase price of $1.5 billion in cash, subject to customary purchase price adjustments, and reduced by NOG's portion of the purchase price pursuant to the Cooperation Agreement. A Significant Shareholder is the majority owner of the Sellers.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal George Assad, et. al. v. EnCap Investments L.P., et. al.: On September 12, 2022, a complaint (the “Complaint”) styled as a “derivative action” was filed in the Delaware Court of Chancery (the “Court”) by George Assad (the “plaintiff”) a purported holder of a small number of shares of Class A Common Stock against Earthstone, six of its 10 directors and EnCap Investments L.P. (“EnCap”), a principal stockholder. The Complaint alleges that a majority of Earthstone’s directors were conflicted and, along with EnCap, breached their fiduciary duties in approving the sale of shares of Series A Convertible Preferred Stock that is convertible into Class A Common Stock pursuant to the Securities Purchase Agreement dated as of January 30, 2022, by and among Earthstone and the Investors. The plaintiff requested the Court to declare that the defendants breached their fiduciary duties, award of unspecified monetary damages, including interest and costs, and/ or rescind the stock purchase transaction. On October 14, 2022, the defendants filed a motion to dismiss the amended Complaint. Earthstone believes the Complaint is completely without merit and intends to contest vigorously the allegations made therein and to seek reimbursement for its costs and expenses in so doing. Earthstone carries insurance for the claims asserted against it and the officer and director defendants in the Complaint, and the carrier has accepted coverage subject to applicable self-retentions and limits of liability. The Company does not expect this case to have a material adverse effect on the results of operations, financial position or cash flows of the Company. From time to time, the Company may be involved in other various legal proceedings and claims in the ordinary course of business, none of which are reasonably expected to result in a material liability to the Company as of June 30, 2023. Environmental and Regulatory

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesThe Company’s corporate structure requires the filing of two separate U.S. Federal income tax returns and one Canadian income tax return which include Lynden US, Earthstone, and Lynden Corp, respectively. 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 19,311,582 shares of Class A Common Stock, which resulted in an ownership change within the meaning of Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”). As a result of the ownership change, the Company’s ability to utilize net operating losses (“NOLs”) and credits generated prior to the ownership change date may be limited to offset taxable income incurred after the ownership change date (the “382 Limitation”). As of June 30, 2023 and December 31, 2022, current liabilities of $1.6 million and $1.8 million, respectively, are included in Other current liabilities in the Condensed Consolidated Balance Sheets related solely to current Texas Margin Tax payable. During the six months ended June 30, 2023, the Company recorded income tax expense of approximately $36.7 million comprised of (1) deferred federal income tax expense for Earthstone of $31.0 million resulting from its share of the distributable income from EEH, (2) a deferred federal income tax expense for Lynden US of $1.8 million as a result of its share of the distributable income from EEH and (3) income tax expense of $3.9 million related to both current and deferred state income taxes. Lynden Corp incurred no material income or loss, or related income tax expense or benefit, for the six months ended June 30, 2023.

Supplemental Disclosures

Supplemental Disclosures	6 Months Ended
	Jun. 30, 2023
Supplemental Cash Flow Elements [Abstract]
Supplemental Disclosures	Supplemental Disclosures Accounts Payable The following table summarizes the Company’s current accounts payable at June 30, 2023 and December 31, 2022 (in thousands): June 30, December 31, 2023 2022 Accounts payable related to vendors $ 37,430 $ 76,044 Accounts payable related to severance taxes 8,752 10,380 Other 7,642 5,391 Total accounts payable $ 53,824 $ 91,815 Revenue and Royalties Payable The following table summarizes the Company’s revenues held in suspense and royalties payable at June 30, 2023 and December 31, 2022 (in thousands): June 30, December 31, 2023 2022 Revenue held in suspense $ 115,540 $ 101,838 Revenue and royalties payable 50,840 61,530 Total revenue and royalties payable $ 166,380 $ 163,368 Accrued Expenses The following table summarizes the Company’s current accrued expenses at June 30, 2023 and December 31, 2022 (in thousands): June 30, December 31, 2023 2022 Accrued capital expenditures $ 42,866 $ 38,482 Accrued lease operating expenses 16,342 14,173 Accrued interest 9,450 10,995 Accrued general and administrative expense 8,417 7,351 Accrued ad valorem taxes 18,873 4,243 Other 6,253 5,698 Total accrued expenses $ 102,201 $ 80,942 Supplemental Cash Flow Information The following table provides supplemental disclosures of cash flow information for the three months ended June 30, 2023 and 2022 (in thousands): For the Six Months Ended 2023 2022 Cash paid for: Interest $ 43,035 $ 9,468 Income taxes $ 1,251 $ 625 Non-cash investing and financing activities: Class A Common Stock issued in Chisholm Acquisition $ (1,361) $ 249,515 Class A Common Stock issued in Bighorn Acquisition $ — $ 77,757 Accrued capital expenditures $ 74,689 $ 44,285 Lease asset additions - ASC 842 $ 997 $ 678 Asset retirement obligations $ 649 $ 284

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ 58,042	$ 144,885	$ 118,590	$ 111,407

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Noncontrolling Interest (Tables

Noncontrolling Interest (Tables)	6 Months Ended
	Jun. 30, 2023
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, 2023: EEH Units Held % EEH Units Held % Total EEH As of December 31, 2022 105,547,139 75.5 % 34,259,641 24.5 % 139,806,780 EEH Units exchanged for shares of Class A Common Stock 2,000 (2,000) — EEH Units cancelled in connection with the settlement of Chisholm escrow shares (105,894) — (105,894) EEH Units issued in connection with the vesting of restricted stock units and performance units 887,810 — 887,810 As of June 30, 2023 106,331,055 75.6 % 34,257,641 24.4 % 140,588,696

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2023
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, 2023 Level 1 Level 2 Level 3 Total Financial assets Derivative asset - current $ — $ 7,106 $ — $ 7,106 Derivative asset - noncurrent — 2,284 — 2,284 Total financial assets $ — $ 9,390 $ — $ 9,390 Financial liabilities Derivative liability - current $ — $ 31,702 $ — $ 31,702 Derivative liability - noncurrent — 10,624 — 10,624 Share-based compensation liability - current — 12,722 — 12,722 Share-based compensation liability - noncurrent — 2,179 — 2,179 Total financial liabilities $ — $ 57,227 $ — $ 57,227 December 31, 2022 Financial assets Derivative asset - current $ — $ 31,331 $ — $ 31,331 Derivative asset - noncurrent — 9,117 — 9,117 Total financial assets $ — $ 40,448 $ — $ 40,448 Financial liabilities Derivative liability - current $ — $ 14,053 $ — $ 14,053 Share-based compensation liability - current — 14,411 — 14,411 Share-based compensation liability - noncurrent — 10,357 — 10,357 Total financial liabilities $ — $ 38,821 $ — $ 38,821

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Open Crude Oil and Natural Gas Derivative Contracts	The following table sets forth the Company's open crude oil and natural gas derivative contracts as of June 30, 2023. When aggregating multiple contracts, the weighted average contract price is disclosed. Price Swaps Period Commodity Volume Weighted Average Price Q3 - Q4 2023 Crude Oil 1,145,200 $74.90 Q1 - Q4 2024 Crude Oil 621,600 $69.28 Q3 - Q4 2023 Crude Oil Basis Swap (1) 4,692,000 $0.92 Q3 - Q4 2023 Natural Gas 2,300,000 $3.35 Q3 - Q4 2023 Natural Gas Basis Swap (2) 25,760,000 $(1.67) Q1 - Q4 2024 Natural Gas Basis Swap (2) 36,600,000 $(1.05) Q1 - Q4 2025 Natural Gas Basis Swap (2) 14,600,000 $(0.74) (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 2023 Crude Oil Costless Collar 2,120,800 $62.73 $85.26 Q1 - Q4 2024 Crude Oil Costless Collar 732,000 $60.00 $76.01 Q3 - Q4 2023 Natural Gas Costless Collar 13,298,800 $3.12 $5.21 Q1 - Q4 2024 Natural Gas Costless Collar 14,640,000 $2.56 $4.51 Deferred Premium Puts Period Commodity Volume $/Bbl (Put Price) $/Bbl (Net of Premium) Q3 - Q4 2023 Crude Oil 791,200 $70.00 $64.54 Q1 - Q4 2024 Crude Oil 915,000 $65.00 $60.04
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, 2023 December 31, 2022 Derivatives not Balance Sheet Location Gross Gross Net Gross Gross Net Commodity contracts Derivative asset - current $ 20,420 $ (13,314) $ 7,106 $ 51,803 $ (20,472) $ 31,331 Commodity contracts Derivative liability - current $ 45,016 $ (13,314) $ 31,702 $ 34,525 $ (20,472) $ 14,053 Commodity contracts Derivative asset - noncurrent $ 3,516 $ (1,232) $ 2,284 $ 9,117 $ — $ 9,117 Commodity contracts Derivative liability - noncurrent $ 11,856 $ (1,232) $ 10,624 $ — $ — $ —
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 2023 2022 2023 2022 Unrealized (loss) gain Not separately presented Not separately presented $ (39,891) $ 29,192 $ (59,330) $ (90,602) Realized loss Operating portion of net cash paid in settlement of derivative contracts Not separately presented (418) (79,099) (7,443) (110,785) Total loss on derivative contracts, net Loss on derivative contracts, net $ (40,309) $ (49,907) $ (66,773) $ (201,387)

Acquisitions and Divestitures (

Acquisitions and Divestitures (Tables)	6 Months Ended
	Jun. 30, 2023
Business Combination and Asset Acquisition [Abstract]
Schedule of Asset Acquisition	The consideration transferred, assets acquired and liabilities assumed by the Company were recorded as follows (in thousands, except share amounts and stock price): Consideration: Shares of Class A Common Stock issued 3,857,015 Class A Common Stock price as of August 10, 2022 $ 13.89 Class A Common Stock consideration 53,574 Cash consideration 567,334 Direct transaction costs 1,202 Total consideration transferred $ 622,110 Assets acquired: Oil and gas properties $ 626,696 Amount attributable to assets acquired $ 626,696 Liabilities assumed: Current liabilities $ 3,672 Noncurrent liabilities - ARO 914 Amount attributable to liabilities assumed $ 4,586 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 625,887 Direct transaction costs 2,397 Total consideration transferred $ 706,041 Assets acquired: Current assets $ 769 Oil and gas properties 746,211 Amount attributable to assets acquired $ 746,980 Liabilities assumed: Suspense payable $ 25,710 Other current liabilities 2,035 Noncurrent liabilities - ARO 13,194 Amount attributable to liabilities assumed $ 40,939
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 19,311,582 Class A Common Stock price as of February 15, 2022 $ 12.85 Class A Common Stock consideration 248,154 Cash consideration 383,877 Total consideration transferred $ 632,031 Fair value of assets acquired: Oil and gas properties $ 642,391 Amount attributable to assets acquired $ 642,391 Fair value of liabilities assumed: Other current liabilities $ 4,389 Asset retirement obligation - noncurrent 5,971 Amount attributable to liabilities assumed $ 10,360

Oil and Natural Gas Properties

Oil and Natural Gas Properties (Tables)	6 Months Ended
	Jun. 30, 2023
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, 2023, were as follows ( in thousands ): Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Development costs $ 173,702 $ 375,086 Leasehold costs 738 1,626 Total capital expenditures $ 174,440 $ 376,712

Net Income Per Common Share (Ta

Net Income Per Common Share (Tables)	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
Schedule of Reconciliation of Net Income Per Common Share	A reconciliation of Net income per common share is as follows: Three Months Ended Six Months Ended (In thousands, except per share amounts) 2023 2022 2023 2022 Net income attributable to Earthstone Energy, Inc. $ 58,042 $ 144,885 $ 118,590 $ 111,407 Net income attributable to Earthstone Energy, Inc. from assumed conversion of Series A Convertible Preferred Stock — 4,351 — 4,351 Net income attributable to Earthstone Energy, Inc. - Diluted $ 58,042 $ 149,236 $ 118,590 $ 115,758 Net income per common share attributable to Earthstone Energy, Inc.: Basic $ 0.55 $ 1.85 $ 1.12 $ 1.57 Diluted $ 0.54 $ 1.46 $ 1.10 $ 1.37 Weighted average common shares outstanding Basic 106,209,657 78,291,037 106,091,850 70,909,353 Add potentially dilutive securities: Unvested restricted stock units 204,310 493,600 276,434 506,760 Unvested performance units 922,728 2,003,778 1,069,778 1,979,770 Series A Convertible Preferred Stock — 21,621,621 — 10,870,539 Diluted weighted average common shares outstanding 107,336,695 102,410,036 107,438,062 84,266,422

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2023
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, 2023: Shares Weighted-Average Grant Date Fair Value Unvested RSUs at December 31, 2022 869,978 $ 11.40 Granted 420,655 $ 13.37 Forfeited (22,252) $ 12.14 Vested (361,166) $ 11.10 Unvested RSUs at June 30, 2023 907,215 $ 12.41 Shares Weighted-Average Grant Date Fair Value Unvested Performance Units at December 31, 2022 2,616,085 $ 10.21 Granted 559,325 $ 18.86 Vested (1,043,800) $ 5.36 Unvested Performance Units at June 30, 2023 2,131,610 $ 14.85
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 2.0 14.5% 1.0 8.4% 0.5 Less than 8.4% 0.0

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
Schedule of Long-Term Debt	The Company's long-term debt consisted of the following ( in thousands ): June 30, 2023 December 31, 2022 Revolving credit facility (1) $ — $ 270,136 Term loan under credit facility due 2027 — 250,000 8.000% Senior notes due 2027 550,000 550,000 9.875% Senior notes due 2031 500,000 — 1,050,000 1,070,136 Unamortized debt issuance costs on term loan — (5,309) Unamortized debt issuance costs on 8.000% Senior notes (9,660) (10,948) Original issue discount on 9.875% Senior notes (2) (10,160) — Unamortized debt issuance costs on 9.875% Senior notes (2) (8,625) — Long-term debt, net $ 1,021,555 $ 1,053,879 (1) Related to the borrowings under the revolving credit facility, the Company had debt issuance costs of $16.4 million and $15.3 million, net of accumulated amortization of $8.5 million and $6.5 million, as of June 30, 2023 and December 31, 2022, respectively. Unamortized deferred financing costs on the borrowings under the revolving credit facility are included in Other noncurrent assets in the Condensed Consolidated Balance Sheets. (2) The 9.875% Senior notes due 2031 were issued on June 30, 2023 resulting in no amortization of the original issue discount and debt issuance costs in the current period. Beginning July 1, 2023, the Company will show amortization of the original issue discount and debt issuance costs as interest expense in the Condensed Consolidated Statement of Operations.

Asset Retirement Obligations (T

Asset Retirement Obligations (Tables)	6 Months Ended
	Jun. 30, 2023
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, 2023 (in thousands) : 2023 Beginning asset retirement obligations $ 30,559 Liabilities incurred 171 Liabilities settled (1,036) Accretion expense 1,275 Divestitures (892) Revision of estimates 478 Ending asset retirement obligations $ 30,555

Supplemental Disclosures (Table

Supplemental Disclosures (Tables)	6 Months Ended
	Jun. 30, 2023
Supplemental Cash Flow Elements [Abstract]
Schedule of Accounts Payable	The following table summarizes the Company’s current accounts payable at June 30, 2023 and December 31, 2022 (in thousands): June 30, December 31, 2023 2022 Accounts payable related to vendors $ 37,430 $ 76,044 Accounts payable related to severance taxes 8,752 10,380 Other 7,642 5,391 Total accounts payable $ 53,824 $ 91,815
Schedule of Revenue and Royalties Payable	The following table summarizes the Company’s revenues held in suspense and royalties payable at June 30, 2023 and December 31, 2022 (in thousands): June 30, December 31, 2023 2022 Revenue held in suspense $ 115,540 $ 101,838 Revenue and royalties payable 50,840 61,530 Total revenue and royalties payable $ 166,380 $ 163,368
Schedule of Accrued Expenses	The following table summarizes the Company’s current accrued expenses at June 30, 2023 and December 31, 2022 (in thousands): June 30, December 31, 2023 2022 Accrued capital expenditures $ 42,866 $ 38,482 Accrued lease operating expenses 16,342 14,173 Accrued interest 9,450 10,995 Accrued general and administrative expense 8,417 7,351 Accrued ad valorem taxes 18,873 4,243 Other 6,253 5,698 Total accrued expenses $ 102,201 $ 80,942
Schedule of Cash Flow, Supplemental Disclosures	The following table provides supplemental disclosures of cash flow information for the three months ended June 30, 2023 and 2022 (in thousands): For the Six Months Ended 2023 2022 Cash paid for: Interest $ 43,035 $ 9,468 Income taxes $ 1,251 $ 625 Non-cash investing and financing activities: Class A Common Stock issued in Chisholm Acquisition $ (1,361) $ 249,515 Class A Common Stock issued in Bighorn Acquisition $ — $ 77,757 Accrued capital expenditures $ 74,689 $ 44,285 Lease asset additions - ASC 842 $ 997 $ 678 Asset retirement obligations $ 649 $ 284

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Details) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
Basis of Presentation and Summary of Significant Accounting Policies [Line Items]
Common stock, shares outstanding (in shares)	140,600,000
Class A Common Stock
Basis of Presentation and Summary of Significant Accounting Policies [Line Items]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares outstanding (in shares)	106,331,055	105,547,139
Class B Common Stock
Basis of Presentation and Summary of Significant Accounting Policies [Line Items]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares outstanding (in shares)	34,257,641	34,259,641
Earthstone Energy Holdings Limited Liability Company and Lynden United States of America Incorporation | Earthstone Energy Holdings, LLC
Basis of Presentation and Summary of Significant Accounting Policies [Line Items]
Percentage of ownership interest held by Earthstone Energy, Inc. and Lynden US Inc.	75.60%

Noncontrolling Interest (Detail

Noncontrolling Interest (Details)	6 Months Ended
	Jun. 30, 2023 shares	Dec. 31, 2022
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Outstanding, ending balance (in shares)	140,600,000
Class A Common Stock
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Outstanding, beginning balance (in shares)	105,547,139
Outstanding, ending balance (in shares)	106,331,055
Earthstone Energy Holdings, LLC
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Outstanding, beginning balance (in shares)	139,806,780
EEH Units cancelled in connection with the settlement of Chisholm escrow shares (in shares)	(105,894)
Outstanding, ending balance (in shares)	140,588,696
Earthstone Energy Holdings, LLC | Class A Common Stock
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
EEH Units exchanged for shares of Class A Common Stock (in shares)	0
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 (in shares)	887,810
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 US	75.60%	75.50%
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)	105,547,139
EEH Units cancelled in connection with the settlement of Chisholm escrow shares (in shares)	(105,894)
Outstanding, ending balance (in shares)	106,331,055
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 exchanged for shares of Class A Common Stock (in shares)	2,000
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 (in shares)	887,810
EEH Units Held By Others | Earthstone Energy Holdings, LLC
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Outstanding, beginning balance (in shares)	34,259,641
EEH Units cancelled in connection with the settlement of Chisholm escrow shares (in shares)	0
Outstanding, ending balance (in shares)	34,257,641
EEH Units Held By Others | Earthstone Energy Holdings, LLC | Class A Common Stock
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
EEH Units exchanged for shares of Class A Common Stock (in shares)	(2,000)
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 (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	24.40%	24.50%

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Financial assets
Derivative asset - current	$ 7,106	$ 31,331
Derivative asset - noncurrent	2,284	9,117
Financial liabilities
Derivative liability - current	31,702	14,053
Derivative liability - noncurrent	10,624	0
Fair Value on a Recurring Basis
Financial assets
Derivative asset - current	7,106	31,331
Derivative asset - noncurrent	2,284	9,117
Total financial assets	9,390	40,448
Financial liabilities
Derivative liability - current	31,702	14,053
Derivative liability - noncurrent	10,624
Share-based compensation liability - current	12,722	14,411
Share-based compensation liability - noncurrent	2,179	10,357
Total financial liabilities	57,227	38,821
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
Share-based compensation liability - current	0	0
Share-based compensation liability - noncurrent	0	0
Total financial liabilities	0	0
Level 2 | Fair Value on a Recurring Basis
Financial assets
Derivative asset - current	7,106	31,331
Derivative asset - noncurrent	2,284	9,117
Total financial assets	9,390	40,448
Financial liabilities
Derivative liability - current	31,702	14,053
Derivative liability - noncurrent	10,624
Share-based compensation liability - current	12,722	14,411
Share-based compensation liability - noncurrent	2,179	10,357
Total financial liabilities	57,227	38,821
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
Share-based compensation liability - current	0	0
Share-based compensation liability - noncurrent	0	0
Total financial liabilities	$ 0	$ 0

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Long-term debt, net	$ 1,021,555	$ 1,053,879
8.000% Senior Notes Due 2027 | Senior Notes
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Interest rate, stated percentage (in percent)	8%
Interest payable	$ 9,300
8.000% Senior Notes Due 2027 | Senior Notes | Portion at Other than Fair Value Measurement
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Deferred financing costs	9,700
Long-term debt, net	540,300
Interest payable	9,300
8.000% Senior Notes Due 2027 | Senior Notes | Estimate of Fair Value Measurement
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Fair value disclosure	$ 530,900
9.875% Senior Notes Due 2031 | Senior Notes
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Interest rate, stated percentage (in percent)	9.875%
Interest payable	$ 100
Debt issue discount	10,160	$ 0
9.875% Senior Notes Due 2031 | Senior Notes | Portion at Other than Fair Value Measurement
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Deferred financing costs	8,600
Long-term debt, net	481,200
Interest payable	100
Debt issue discount	10,200
9.875% Senior Notes Due 2031 | Senior Notes | Estimate of Fair Value Measurement
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Fair value disclosure	$ 494,700

Derivative Financial Instrume_3

Derivative Financial Instruments - Open Crude Oil and Natural Gas Derivative Contracts (Details)	6 Months Ended
	Jun. 30, 2023 MMBTU $ / MMBTU $ / bbl bbl
Crude Oil, Q3 - Q4 2023 | Crude Oil
Derivative [Line Items]
Crude oil volume (Bbl) | bbl	1,145,200
Weighted Average Price ($/Bbl / $/MMBtu)	74.90
Crude Oil, Q1 - Q4 2024 | Crude Oil
Derivative [Line Items]
Crude oil volume (Bbl) | bbl	621,600
Weighted Average Price ($/Bbl / $/MMBtu)	69.28
Crude Oil Basis Swap, Q3 - Q4 2023 | Crude Oil
Derivative [Line Items]
Crude oil volume (Bbl) | bbl	4,692,000
Weighted Average Price ($/Bbl / $/MMBtu)	0.92
Natural Gas, Q3 - Q4 2023 | Natural gas
Derivative [Line Items]
Natural gas volume (MMBtu) | MMBTU	2,300,000
Weighted Average Price ($/Bbl / $/MMBtu) | $ / MMBTU	3.35
Natural Gas Basis Swap, Q3 - Q4 2023 | Natural gas
Derivative [Line Items]
Natural gas volume (MMBtu) | MMBTU	25,760,000
Weighted Average Price ($/Bbl / $/MMBtu) | $ / MMBTU	(1.67)
Natural Gas Basis Swap, Q1 - Q4 2024 | Natural gas
Derivative [Line Items]
Natural gas volume (MMBtu) | MMBTU	36,600,000
Weighted Average Price ($/Bbl / $/MMBtu) | $ / MMBTU	(1.05)
Natural Gas Basis Swap Q1 - Q4 2025 | Natural gas
Derivative [Line Items]
Natural gas volume (MMBtu) | MMBTU	14,600,000
Weighted Average Price ($/Bbl / $/MMBtu) | $ / MMBTU	(0.74)
Crude Oil Costless Collar Q3 - Q4 2023 | Crude Oil
Derivative [Line Items]
Crude oil volume (Bbl) | bbl	2,120,800
Derivative, floor price ($/Bbl / $/MMBtu)	62.73
Derivative, ceiling price ($/Bbl / $/MMBtu)	85.26
Crude Oil Costless Collar Q1 - Q4 2024 | Crude Oil
Derivative [Line Items]
Crude oil volume (Bbl) | bbl	732,000
Derivative, floor price ($/Bbl / $/MMBtu)	60
Derivative, ceiling price ($/Bbl / $/MMBtu)	76.01
Natural Gas Costless Collar Q3 - Q4 2023 | Natural gas
Derivative [Line Items]
Natural gas volume (MMBtu) | MMBTU	13,298,800
Derivative, floor price ($/Bbl / $/MMBtu) | $ / MMBTU	3.12
Derivative, ceiling price ($/Bbl / $/MMBtu) | $ / MMBTU	5.21
Natural Gas Costless Collar Q1 - Q4 2024 | Natural gas
Derivative [Line Items]
Natural gas volume (MMBtu) | MMBTU	14,640,000
Derivative, floor price ($/Bbl / $/MMBtu) | $ / MMBTU	2.56
Derivative, ceiling price ($/Bbl / $/MMBtu) | $ / MMBTU	4.51
Crude Oil Premium Puts Q3 - Q4 2023 | Crude Oil
Derivative [Line Items]
Crude oil volume (Bbl) | bbl	791,200
Derivative, option strike price ($/Bbl)	70
Derivative, net of premium strike price ($/Bbl)	64.54
Crude Oil Premium Puts Q1 - Q4 2024 | Crude Oil
Derivative [Line Items]
Crude oil volume (Bbl) | bbl	915,000
Derivative, option strike price ($/Bbl)	65
Derivative, net of premium strike price ($/Bbl)	60.04

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, 2023	Dec. 31, 2022
Derivative asset - current
Derivative Asset [Abstract]
Gross recognized assets	$ 20,420	$ 51,803
Gross amounts offset, assets	(13,314)	(20,472)
Total financial assets	7,106	31,331
Derivative liability - current
Derivative Liability [Abstract]
Gross recognized liabilities	45,016	34,525
Gross amounts offset, liabilities	(13,314)	(20,472)
Total financial liabilities	31,702	14,053
Derivative asset - noncurrent
Derivative Asset [Abstract]
Gross recognized assets	3,516	9,117
Gross amounts offset, assets	(1,232)	0
Total financial assets	2,284	9,117
Derivative liability - noncurrent
Derivative Liability [Abstract]
Gross recognized liabilities	11,856	0
Gross amounts offset, liabilities	(1,232)	0
Total financial liabilities	$ 10,624	$ 0

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, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Derivative Instruments, Gain (Loss) [Line Items]
Realized loss			$ 7,443	$ 110,785
Gain (loss) on derivative contracts, net	$ (40,309)	$ (49,907)	(66,773)	(201,387)
Derivatives Not Designated as Hedging Contracts | Gain (Loss) on Derivative Contracts, Net
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized (loss) gain	(39,891)	29,192	(59,330)	(90,602)
Realized loss	(418)	(79,099)	(7,443)	(110,785)
Gain (loss) on derivative contracts, net	$ (40,309)	$ (49,907)	$ (66,773)	$ (201,387)

Acquisitions and Divestitures -

Acquisitions and Divestitures - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands							3 Months Ended		6 Months Ended
	Jun. 14, 2023	Apr. 10, 2023	Aug. 10, 2022	Apr. 15, 2022	Apr. 14, 2022	Feb. 15, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Business Acquisition [Line Items]
Proceeds from sales of oil and gas properties									$ 56,062	$ 0
Gain on sale of oil and gas properties							$ 49,254	$ 0	46,114	$ 0
Non Core Properties
Business Acquisition [Line Items]
Proceeds from sales of oil and gas properties							54,200		56,100
Gain on sale of oil and gas properties							$ 49,300		$ 46,100
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Novo Assets
Business Acquisition [Line Items]
Ownership percentage after disposal	66.70%
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Novo Assets | Northern Oil and Gas, Inc. (NOG)
Business Acquisition [Line Items]
Ownership percentage of disposed assets	33.30%
Consideration received for disposal	$ 500,000
Novo Acquisition
Business Acquisition [Line Items]
Percentage of equity interest acquired	100%
Cash consideration paid or payable	$ 1,500,000
Consideration transferred, escrow deposit	112,500
Aggregate purchase price	1,000,000
Novo Acquisition | Earthstone Energy Holdings, LLC
Business Acquisition [Line Items]
Consideration transferred, escrow deposit	$ 75,000
Titus Acquisition
Business Acquisition [Line Items]
Asset acquisition consideration			$ 567,334
Consideration transferred including transaction costs			$ 568,500
Titus Acquisition | Class A Common Stock
Business Acquisition [Line Items]
Shares issued or issuable (in shares)			3,857,015
Bighorn Acquisition
Business Acquisition [Line Items]
Asset acquisition consideration					$ 625,887
Shares issued or issuable (in shares)					5,650,977
Cash consideration					$ 628,300
Bighorn Acquisition | Class A Common Stock
Business Acquisition [Line Items]
Shares issued or issuable (in shares)					5,650,977
Chisholm Acquisition
Business Acquisition [Line Items]
Asset acquisition consideration						$ 383,877
Initial payment for asset acquisition						$ 313,900
Subsequent payment for asset acquisition				$ 70,000
Chisholm Acquisition | Class A Common Stock
Business Acquisition [Line Items]
Shares issued or issuable (in shares)						19,417,476
Share price (in dollars per share)						$ 12.85
Shares cancelled (in shares)		105,894

Acquisitions and Divestitures_2

Acquisitions and Divestitures - Asset Acquisition (Details) - USD ($) $ / shares in Units, $ in Thousands				6 Months Ended
	Aug. 10, 2022	Apr. 14, 2022	Feb. 15, 2022	Jun. 30, 2023
Asset Acquisition [Line Items]
Noncurrent liabilities - ARO				$ 171
Titus Acquisition
Asset Acquisition [Line Items]
Cash consideration	$ 567,334
Direct transaction costs	1,202
Total consideration transferred	622,110
Oil and gas properties	626,696
Amount attributable to assets acquired	626,696
Current liabilities	3,672
Noncurrent liabilities - ARO	914
Amount attributable to liabilities assumed	$ 4,586
Titus Acquisition | Class A Common Stock
Asset Acquisition [Line Items]
Class A Common Stock price (in dollars per share)	$ 13.89
Class A Common Stock consideration	$ 53,574
Bighorn Acquisition
Asset Acquisition [Line Items]
Cash consideration		$ 625,887
Direct transaction costs		2,397
Total consideration transferred		706,041
Current assets		769
Oil and gas properties		746,211
Amount attributable to assets acquired		746,980
Suspense payable		25,710
Other current liabilities		2,035
Noncurrent liabilities - ARO		13,194
Amount attributable to liabilities assumed		$ 40,939
Bighorn Acquisition | Class A Common Stock
Asset Acquisition [Line Items]
Class A Common Stock price (in dollars per share)		$ 13.76
Class A Common Stock consideration		$ 77,757
Chisholm Acquisition
Asset Acquisition [Line Items]
Cash consideration			$ 383,877
Total consideration transferred			632,031
Oil and gas properties			642,391
Amount attributable to assets acquired			642,391
Other current liabilities			4,389
Noncurrent liabilities - ARO			5,971
Amount attributable to liabilities assumed			$ 10,360
Chisholm Acquisition | Class A Common Stock
Asset Acquisition [Line Items]
Shares of Class A Common Stock issued (shares)			19,311,582
Class A Common Stock price (in dollars per share)			$ 12.85
Class A Common Stock consideration			$ 248,154

Oil and Natural Gas Propertie_2

Oil and Natural Gas Properties - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Oil And Natural Gas Properties [Line Items]
Impairment of oil and gas properties	$ 900,000	$ 0	$ 900,000	$ 0
Proved Oil and Natural Gas Properties
Oil And Natural Gas Properties [Line Items]
Depletion expenses	$ 109,600,000	$ 66,200,000	$ 219,900,000	$ 100,300,000
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, 2023	Jun. 30, 2023
Oil And Natural Gas Properties [Line Items]
Total capital expenditures	$ 174,440	$ 376,712
Development costs
Oil And Natural Gas Properties [Line Items]
Total capital expenditures	173,702	375,086
Leasehold costs
Oil And Natural Gas Properties [Line Items]
Total capital expenditures	$ 738	$ 1,626

Net Income Per Common Share - R

Net Income Per Common Share - Reconciliation of Net Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Share [Abstract]
Net income attributable to Earthstone Energy, Inc.	$ 58,042	$ 144,885	$ 118,590	$ 111,407
Net income (loss) attributable to Earthstone Energy, Inc. from assumed conversion of Series A Convertible Preferred Stock	0	4,351	0	4,351
Net income attributable to Earthstone Energy, Inc. - Diluted	$ 58,042	$ 149,236	$ 118,590	$ 115,758
Net income per common share attributable to Earthstone Energy, Inc.:
Basic (in dollars per share)	$ 0.55	$ 1.85	$ 1.12	$ 1.57
Diluted (in dollars per share)	$ 0.54	$ 1.46	$ 1.10	$ 1.37
Weighted average common shares outstanding
Basic (in shares)	106,209,657	78,291,037	106,091,850	70,909,353
Add potentially dilutive securities:
Unvested restricted stock units (in shares)	204,310	493,600	276,434	506,760
Unvested performance units (in shares)	922,728	2,003,778	1,069,778	1,979,770
Series A Convertible Preferred Stock (in shares)	0	21,621,621	0	10,870,539
Diluted weighted average common shares outstanding (in shares)	107,336,695	102,410,036	107,438,062	84,266,422

Net Income Per Common Share - N

Net Income Per Common Share - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net income attributable to noncontrolling interest	$ 24,406	$ 73,140	$ 50,069	$ 54,741
Class B Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net income attributable to noncontrolling interest	$ 24,400	$ 73,100	$ 50,100	$ 54,700

Common Stock (Details)

Common Stock (Details) - USD ($) $ in Thousands				3 Months Ended			6 Months Ended
	Apr. 10, 2023	Apr. 14, 2022	Feb. 15, 2022	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Capital Unit [Line Items]
Common stock, shares outstanding (in shares)				140,600,000			140,600,000
Shares issued in connection with Acquisition					$ 77,757	$ 249,515
Member Units | Bold Contribution Agreement
Capital Unit [Line Items]
Stock conversion (in shares)							1
Class A Common Stock
Capital Unit [Line Items]
Common stock, shares issued (in shares)				106,331,055			106,331,055		105,547,139
Common stock, shares outstanding (in shares)				106,331,055			106,331,055		105,547,139
Class A Common Stock | Bold Contribution Agreement
Capital Unit [Line Items]
Stock conversion (in shares)							1
Class A Common Stock | Chisholm Acquisition
Capital Unit [Line Items]
Shares cancelled (in shares)	105,894
Shares issued in connection 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]
Shares issued in connection with Acquisition (in shares)		5,650,977
Shares issued in connection with Acquisition		$ 77,800
Class A Common Stock | Long Term Incentive Plan
Capital Unit [Line Items]
Issuance of Series A Convertible Preferred Stock, net of offering costs (in shares)				188,064	163,753		1,404,966	933,896
Common stock repurchased (in shares)				56,683	48,232		517,156	335,124
Class B Common Stock
Capital Unit [Line Items]
Common stock, shares issued (in shares)				34,257,641			34,257,641		34,259,641
Common stock, shares outstanding (in shares)				34,257,641			34,257,641		34,259,641
Conversion of convertible securities (in shares)				2,000	10,125		2,000	82,891

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions				3 Months Ended		6 Months Ended
	Jan. 31, 2023	Jan. 06, 2023	Jan. 30, 2020	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2023	Dec. 31, 2022
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance-based restricted stock granted (in shares)						420,655
Weighted average fair value per share (in dollars per share)				$ 12.41		$ 12.41			$ 11.40
Vested in period (in shares)						361,166
Restricted Stock Units | Long Term Incentive Plan
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				$ 11		$ 11
Weighted average remaining vesting period of unrecognized compensation expense						1 year 21 days
Stock-based compensation expense				$ 1.8	$ 1.5	$ 3.6	$ 2.7
Restricted Stock Units | Long Term Incentive Plan | Class A Common Stock | Bold Contribution Agreement
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
Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance-based restricted stock granted (in shares)						559,325
Relative total shareholder return, percentage						100%
Risk-free interest rate						3.89%
Expected volatility, minimum (as a percent)						40.60%
Expected volatility, maximum (as a percent)						142.50%
Weighted average fair value per share (in dollars per share)				$ 14.85		$ 14.85			$ 10.21
Vested in period (in shares)						1,043,800
Deferred compensation share-based arrangements, liability, current								$ 12.7	$ 14.4
Share-based compensation liability related to PSUs								$ 2.2	$ 10.4
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%
Performance Stock Units | Long Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense				$ 6.1	$ 4.5	$ 8.9	$ 9.1
Performance-based restricted stock granted (in shares)			1,043,800
Weighted average fair value per share (in dollars per share)				$ 20.06		$ 20.06
Unrecognized compensation expense related to PSU awards				$ 17.7		$ 17.7
Remaining vesting period of unrecognized compensation expense (in years)						10 months 20 days
Performance Stock Units | Long Term Incentive Plan | Grant Date 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate						3.89%
Weighted average fair value per share (in dollars per share)				$ 17.84		$ 17.84
Expected volatility (as a percent)						77%
2023 RTSR PSUs | Long Term Incentive Plan | Grant Date 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance-based restricted stock granted (in shares)		258,150
2023 ATSR PSUs | Long Term Incentive Plan | Grant Date 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance-based restricted stock granted (in shares)		301,175
2020 Performance Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested in period (in shares)	1,043,800
Cash paid to settle awards	$ 14.5

Stock-Based Compensation - Unve

Stock-Based Compensation - Unvested RSU and PSU Award Activity (Details)	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Restricted Stock Units
Shares
Unvested at beginning period (in shares) | shares	869,978
Granted (in shares) | shares	420,655
Forfeited (in shares) | shares	(22,252)
Vested (in shares) | shares	(361,166)
Unvested at end period (in shares) | shares	907,215
Weighted-Average Grant Date Fair Value
Unvested at beginning of period, weighted-average grant date fair value (in dollars per share) | $ / shares	$ 11.40
Granted, weighted-average grant date fair value (in dollars per share) | $ / shares	13.37
Forfeited, weighted-average grant date fair value (in dollars per share) | $ / shares	12.14
Vested, weighted-average grant date fair value (in dollars per share) | $ / shares	11.10
Unvested at end of period, Weighted-Average Grant Date Fair Value (in dollars per share) | $ / shares	$ 12.41
Performance Stock Units
Shares
Unvested at beginning period (in shares) | shares	2,616,085
Granted (in shares) | shares	559,325
Vested (in shares) | shares	(1,043,800)
Unvested at end period (in shares) | shares	2,131,610
Weighted-Average Grant Date Fair Value
Unvested at beginning of period, weighted-average grant date fair value (in dollars per share) | $ / shares	$ 10.21
Granted, weighted-average grant date fair value (in dollars per share) | $ / shares	18.86
Vested, weighted-average grant date fair value (in dollars per share) | $ / shares	5.36
Unvested at end of period, Weighted-Average Grant Date Fair Value (in dollars per share) | $ / shares	$ 14.85

Stock-Based Compensation - TSR

Stock-Based Compensation - TSR Multiplier (Details) - Performance Stock Units	6 Months Ended
	Jun. 30, 2023
Range One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
TSR Multiplier	200%
Range Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Earthstone’s Annualized TSR	14.50%
TSR Multiplier	100%
Range Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Earthstone’s Annualized TSR	8.40%
TSR Multiplier	50%
Range Four
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
TSR Multiplier	0%
Minimum | Range One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Earthstone’s Annualized TSR	23.90%
Maximum | Range Four
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Earthstone’s Annualized TSR	8.40%

Long-Term Debt - Schedule of De

Long-Term Debt - Schedule of Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Long-term debt, gross	$ 1,050,000	$ 1,070,136
Long-term debt, net	1,021,555	1,053,879
Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Long-term debt, gross	0	270,136
Debt issuance costs	16,400	15,300
Accumulated amortization	8,500	6,500
Term Loan | Line of Credit
Debt Instrument [Line Items]
Long-term debt, gross	0	250,000
Unamortized debt issuance costs	$ 0	(5,309)
8.000% Senior Notes Due 2027 | Senior Notes
Debt Instrument [Line Items]
Interest rate, stated percentage (in percent)	8%
Long-term debt, gross	$ 550,000	550,000
Unamortized debt issuance costs	$ (9,660)	(10,948)
9.875% Senior Notes Due 2031 | Senior Notes
Debt Instrument [Line Items]
Interest rate, stated percentage (in percent)	9.875%
Long-term debt, gross	$ 500,000	0
Unamortized debt issuance costs	(8,625)	0
Original issue discount	$ (10,160)	$ 0

Long-Term Debt - Narrative (Det

Long-Term Debt - Narrative (Details) - USD ($)			3 Months Ended		6 Months Ended
	Mar. 30, 2023	Nov. 21, 2019	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Jul. 07, 2023	Jul. 06, 2023	Mar. 29, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Repayments of borrowings					$ 2,160,624,000	$ 1,396,572,000
Long-term debt, net			$ 1,021,555,000		1,021,555,000					$ 1,053,879,000
Amortization of deferred financing costs					3,459,000	$ 2,069,000
EEH Credit Agreement
Debt Instrument [Line Items]
Current borrowing base under EEH credit agreement	$ 1,400,000,000								$ 1,200,000,000
Line of credit, borrowing base	1,650,000,000
Credit agreement, covenant, current ratio		1
Credit agreement, covenant, leverage ratio		3.5
Additional borrowing base available under credit agreement			1,400,000,000		1,400,000,000
Averaged interest rate on borrowings				4.42%		4.04%
Commitment fees on borrowings			900,000	$ 0	1,600,000	$ 200,000
Amortization of deferred financing costs			1,000,000	900,000	2,000,000	1,600,000
Capitalized costs associated with borrowings				$ 5,700,000		$ 11,600,000
EEH Credit Agreement | Subsequent Event
Debt Instrument [Line Items]
Current borrowing base under EEH credit agreement							$ 1,750,000,000	$ 1,400,000,000
Line of credit, borrowing base							$ 2,000,000,000	$ 1,650,000,000
EEH Credit Agreement | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate		1%
EEH Credit Agreement | Federal Funds Rate
Debt Instrument [Line Items]
Basis spread on variable rate		0.50%
EEH Credit Agreement | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate		1.25%
Commitment fee percentage		0.375%
EEH Credit Agreement | Minimum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate		2.25%
EEH Credit Agreement | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate		2.25%
Commitment fee percentage		0.50%
EEH Credit Agreement | Maximum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate		3.25%
EEH Credit Agreement | Term Loan
Debt Instrument [Line Items]
Repayments of borrowings	$ 250,000,000
Long-term debt, net										250,000,000
EEH Credit Agreement | New Credit Facility
Debt Instrument [Line Items]
Long-term debt, net			$ 0		$ 0					$ 270,100,000
Averaged interest rate on borrowings			7.60%		7.56%
Capitalized costs associated with borrowings			$ 0		$ 3,100,000
8.000% Senior Notes Due 2027 | Senior Notes
Debt Instrument [Line Items]
Long-term debt, net			$ 550,000,000		$ 550,000,000
Interest rate, stated percentage (in percent)			8%		8%
Interest payable			$ 9,300,000		$ 9,300,000
9.875% Senior Notes Due 2031 | Senior Notes
Debt Instrument [Line Items]
Interest rate, stated percentage (in percent)			9.875%		9.875%
Interest payable			$ 100,000		$ 100,000
Debt instrument, face amount			$ 500,000,000		$ 500,000,000

Asset Retirement Obligations (D

Asset Retirement Obligations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Beginning asset retirement obligations			$ 30,559
Liabilities incurred			171
Liabilities settled			(1,036)
Accretion expense	$ 646	$ 708	1,275	$ 1,105
Divestitures			(892)
Revision of estimates			478
Ending asset retirement obligations	$ 30,555		$ 30,555

Related Party Transactions (Det

Related Party Transactions (Details) $ in Thousands			6 Months Ended
	Apr. 10, 2023 shares	Feb. 15, 2022 USD ($) shares	Jun. 30, 2023 shareholder private_equity_firm	Jun. 14, 2023 USD ($)	Mar. 31, 2022 USD ($)
Related Party
Related Party Transaction [Line Items]
Number of significant shareholders | shareholder			2
Number of private equity firms | private_equity_firm			2
Chisholm Acquisition
Related Party Transaction [Line Items]
Asset acquisition consideration		$ 383,877
Chisholm Acquisition | Related Party
Related Party Transaction [Line Items]
Asset acquisition consideration		$ 383,900
Deferred acquisition payment - Chisholm					$ 70,000
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 issued or issuable (in shares) | shares		19,417,476
Shares cancelled (in shares) | shares	105,894
Chisholm Acquisition | Class A Common Stock | Related Party
Related Party Transaction [Line Items]
Shares issued or issuable (in shares) | shares		19,400,000
Shares cancelled (in shares) | shares	105,894
Novo Acquisition
Related Party Transaction [Line Items]
Cash consideration paid or payable				$ 1,500,000
Novo Acquisition | Related Party
Related Party Transaction [Line Items]
Cash consideration paid or payable				$ 1,500,000

Commitments and Contingencies (

Commitments and Contingencies (Details)	Sep. 12, 2022 director
Commitments and Contingencies Disclosure [Abstract]
Number of directors sued	6
Total number of directors	10

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
	Feb. 15, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Income Tax Disclosure [Line Items]
Accrued income taxes, current		$ 1,600		$ 1,600		$ 1,800
Income tax expense		$ 18,053	$ 22,688	36,654	$ 21,155
Deferred income taxes				36,229	20,546
Release of valuation allowance					6,400
Lynden US
Income Tax Disclosure [Line Items]
Deferred federal income tax expense				1,800
Deferred state income tax expense				3,900
Deferred income taxes					2,000
Earthstone Energy, Inc.
Income Tax Disclosure [Line Items]
Deferred federal income tax expense				$ 31,000
Deferred income taxes					17,900
Earthstone Energy Holdings, LLC
Income Tax Disclosure [Line Items]
Income tax expense					1,300
Deferred income taxes					$ 24,300
Chisholm Acquisition | Class A Common Stock
Income Tax Disclosure [Line Items]
Common stock issued (shares)	19,311,582

Supplemental Disclosures - Acco

Supplemental Disclosures - Accounts Payable (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Supplemental Cash Flow Elements [Abstract]
Accounts payable related to vendors	$ 37,430	$ 76,044
Accounts payable related to severance taxes	8,752	10,380
Other	7,642	5,391
Total accounts payable	$ 53,824	$ 91,815

Supplemental Disclosures - Reve

Supplemental Disclosures - Revenue and Royalties Payable (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Supplemental Cash Flow Elements [Abstract]
Revenue held in suspense	$ 115,540	$ 101,838
Revenue and royalties payable	50,840	61,530
Total revenue and royalties payable	$ 166,380	$ 163,368

Supplemental Disclosures - Accr

Supplemental Disclosures - Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Supplemental Cash Flow Elements [Abstract]
Accrued capital expenditures	$ 42,866	$ 38,482
Accrued lease operating expenses	16,342	14,173
Accrued interest	9,450	10,995
Accrued general and administrative expense	8,417	7,351
Accrued ad valorem taxes	18,873	4,243
Other	6,253	5,698
Total accrued expenses	$ 102,201	$ 80,942

Supplemental Disclosures - Supp

Supplemental Disclosures - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash paid for:
Interest	$ 43,035	$ 9,468
Income taxes	1,251	625
Non-cash investing and financing activities:
Accrued capital expenditures	74,689	44,285
Lease asset additions - ASC 842	997	678
Asset retirement obligations	649	284
Chisholm Acquisition
Non-cash investing and financing activities:
Class A Common Stock issued in Acquisition	(1,361)	249,515
Bighorn Acquisition
Non-cash investing and financing activities:
Class A Common Stock issued in Acquisition	$ 0	$ 77,757