Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 29, 2020 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0000010254 | |
Entity Registrant Name | EARTHSTONE ENERGY INC | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2020 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-35049 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-0592823 | |
Entity Address, Address Line One | 1400 Woodloch Forest Drive, Suite 300 | |
Entity Address, City or Town | The Woodlands | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77380 | |
City Area Code | 281 | |
Local Phone Number | 298-4246 | |
Title of 12(b) Security | Class A Common Stock, $0.001 par value per share | |
Trading Symbol | ESTE | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 35,009,371 | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 30,210,749 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash | $ 5,311 | $ 13,822 |
Accounts receivable: | ||
Oil, natural gas, and natural gas liquids revenues | 12,097 | 29,047 |
Joint interest billings and other, net of allowance of $80 and $83 at September 30, 2020 and December 31, 2019, respectively | 11,548 | 6,672 |
Derivative asset | 25,097 | 8,860 |
Prepaid expenses and other current assets | 1,560 | 1,867 |
Total current assets | 55,613 | 60,268 |
Oil and gas properties, successful efforts method: | ||
Proved properties | 995,666 | 970,808 |
Unproved properties | 236,482 | 260,271 |
Land | 5,382 | 5,382 |
Total oil and gas properties | 1,237,530 | 1,236,461 |
Accumulated depreciation, depletion and amortization | (271,012) | (195,567) |
Net oil and gas properties | 966,518 | 1,040,894 |
Other noncurrent assets: | ||
Goodwill | 0 | 17,620 |
Office and other equipment, net of accumulated depreciation and amortization of $3,558 and $3,180 at September 30, 2020 and December 31, 2019, respectively | 1,044 | 1,311 |
Derivative asset | 4,727 | 770 |
Operating lease right-of-use assets | 2,769 | 3,108 |
Other noncurrent assets | 1,331 | 1,572 |
TOTAL ASSETS | 1,032,002 | 1,125,543 |
Current liabilities: | ||
Accounts payable | 6,910 | 25,284 |
Revenues and royalties payable | 28,047 | 35,815 |
Accrued expenses | 12,844 | 19,538 |
Asset retirement obligation | 308 | 308 |
Derivative liability | 1,040 | 6,889 |
Advances | 93 | 11,505 |
Operating lease liabilities | 768 | 570 |
Finance lease liabilities | 96 | 206 |
Other current liabilities | 11 | 43 |
Total current liabilities | 50,117 | 100,158 |
Noncurrent liabilities: | ||
Long-term debt | 130,000 | 170,000 |
Deferred tax liability | 15,294 | 15,154 |
Asset retirement obligation | 2,027 | 1,856 |
Derivative liability | 577 | 0 |
Operating lease liabilities | 2,001 | 2,539 |
Finance lease liabilities | 15 | 85 |
Other noncurrent liabilities | 138 | 0 |
Total noncurrent liabilities | 150,052 | 189,634 |
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 | 537,990 | 527,246 |
Accumulated deficit | (186,787) | (181,711) |
Total Earthstone Energy, Inc. equity | 351,268 | 345,599 |
Noncontrolling interest | 480,565 | 490,152 |
Total equity | 831,833 | 835,751 |
TOTAL LIABILITIES AND EQUITY | 1,032,002 | 1,125,543 |
Common Class A [Member] | ||
Equity: | ||
Class A Common Stock, $0.001 par value, 200,000,000 shares authorized; 30,210,749 and 29,421,131 issued and outstanding at September 30, 2020 and December 31, 2019, respectively | 30 | 29 |
Common Class B [Member] | ||
Equity: | ||
Class A Common Stock, $0.001 par value, 200,000,000 shares authorized; 30,210,749 and 29,421,131 issued and outstanding at September 30, 2020 and December 31, 2019, respectively | $ 35 | $ 35 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Joint interest billings and other, allowance | $ 80,000 | $ 83,000 |
Office and other equipment, accumulated depreciation | $ 3,558 | $ 3,180 |
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 Class A [Member] | ||
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) | 30,210,749 | 29,421,131 |
Common stock, shares outstanding (in shares) | 30,210,749 | 29,421,131 |
Common Class B [Member] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 35,009,371 | 35,260,680 |
Common stock, shares outstanding (in shares) | 35,009,371 | 35,260,680 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
REVENUES | ||||
Revenues | $ 41,047 | $ 39,204 | $ 107,848 | $ 124,474 |
OPERATING COSTS AND EXPENSES | ||||
Lease operating expense | 7,044 | 6,419 | 21,971 | 20,485 |
Production and ad valorem taxes | 2,696 | 2,698 | 7,198 | 8,001 |
Rig termination expense | 0 | 0 | 426 | 0 |
Depreciation, depletion and amortization | 28,538 | 14,079 | 76,096 | 42,281 |
Impairment expense | 2,115 | 0 | 62,548 | 0 |
General and administrative expense | 5,796 | 6,057 | 19,615 | 19,948 |
Transaction costs | (705) | 215 | (324) | 797 |
Accretion of asset retirement obligation | 47 | 52 | 137 | 160 |
Exploration expense | 0 | 0 | 298 | 0 |
Total operating costs and expenses | 45,531 | 29,520 | 187,965 | 91,672 |
(Loss) gain on sale of oil and gas properties | 0 | (120) | 198 | (446) |
(Loss) income from operations | (4,484) | 9,564 | (79,919) | 32,356 |
OTHER INCOME (EXPENSE) | ||||
Interest expense, net | (1,186) | (1,609) | (4,207) | (4,735) |
(Loss) gain on derivative contracts, net | (6,040) | 18,726 | 73,065 | (19,672) |
Other income (expense), net | (18) | 21 | 120 | (1) |
Total other income (expense) | (7,244) | 17,138 | 68,978 | (24,408) |
(Loss) income before income taxes | (11,728) | 26,702 | (10,941) | 7,948 |
Income tax expense | (130) | (575) | (112) | (728) |
Net (loss) income | (11,858) | 26,127 | (11,053) | 7,220 |
Less: Net (loss) income attributable to noncontrolling interest | (6,413) | 14,357 | (5,977) | 3,877 |
Net (loss) income attributable to Earthstone Energy, Inc. | $ (5,445) | $ 11,770 | $ (5,076) | $ 3,343 |
Net (loss) income per common share attributable to Earthstone Energy, Inc.: | ||||
Basic (in dollars per share) | $ (0.18) | $ 0.41 | $ (0.17) | $ 0.12 |
Diluted (in dollars per share) | $ (0.18) | $ 0.41 | $ (0.17) | $ 0.12 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 30,073,635 | 29,032,842 | 29,810,705 | 28,883,907 |
Diluted (in shares) | 30,073,635 | 29,032,842 | 29,810,705 | 28,883,907 |
Oil Revenue [Member] | ||||
REVENUES | ||||
Revenues | $ 33,158 | $ 35,443 | $ 93,017 | $ 111,657 |
Natural Gas [Member] | ||||
REVENUES | ||||
Revenues | 2,642 | 903 | 4,855 | 2,126 |
Natural Gas Liquids [Member] | ||||
REVENUES | ||||
Revenues | $ 5,247 | $ 2,858 | $ 9,976 | $ 10,691 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands | Cumulative Effect, Period of Adoption, Adjustment [Member]Common Stock [Member]Common Class A [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Common Stock [Member]Common Class B [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Additional Paid-in Capital [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Parent [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Noncontrolling Interest [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member]Common Class A [Member] | Common Stock [Member]Common Class B [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Parent [Member] | Noncontrolling Interest [Member] | Common Class B [Member] | Total |
Balance (in shares) at Dec. 31, 2018 | 28,696,321 | 35,452,178 | |||||||||||||
Balance at Dec. 31, 2018 | $ 0 | $ 0 | $ 0 | $ 67 | $ 67 | $ 99 | $ 166 | $ 29 | $ 35 | $ 517,073 | $ (182,497) | $ 334,640 | $ 491,852 | $ 826,492 | |
Stock-based compensation expense | $ 0 | $ 0 | 2,212 | 0 | 2,212 | 0 | 2,212 | ||||||||
Vesting of restricted stock units, net of taxes paid (in shares) | 166,140 | 0 | |||||||||||||
Vesting of restricted stock units, net of taxes paid | $ 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
Vested restricted stock units retained by the Company in exchange for payment of recipient mandatory tax withholdings (in shares) | 59,261 | 0 | |||||||||||||
Vested restricted stock units retained by the Company in exchange for payment of recipient mandatory tax withholdings | $ 0 | $ 0 | (396) | 0 | (396) | 0 | (396) | ||||||||
Cancellation of treasury shares (in shares) | (59,261) | 0 | |||||||||||||
Net income (loss) | $ 0 | $ 0 | 0 | (17,204) | (17,204) | (21,239) | (38,443) | ||||||||
Balance (in shares) at Mar. 31, 2019 | 28,862,461 | 35,452,178 | |||||||||||||
Balance at Mar. 31, 2019 | $ 29 | $ 35 | 518,889 | (199,634) | 319,319 | 470,712 | 790,031 | ||||||||
Balance (in shares) at Dec. 31, 2018 | 28,696,321 | 35,452,178 | |||||||||||||
Balance at Dec. 31, 2018 | $ 0 | $ 0 | $ 0 | $ 67 | $ 67 | $ 99 | $ 166 | $ 29 | $ 35 | 517,073 | (182,497) | 334,640 | 491,852 | 826,492 | |
Class B Common Stock converted to Class A Common Stock (in shares) | 35,732 | ||||||||||||||
Net income (loss) | 7,220 | ||||||||||||||
Balance (in shares) at Sep. 30, 2019 | 29,150,220 | 35,416,446 | |||||||||||||
Balance at Sep. 30, 2019 | $ 29 | $ 35 | 523,402 | (179,087) | 344,379 | 495,352 | 839,731 | ||||||||
Balance (in shares) at Mar. 31, 2019 | 28,862,461 | 35,452,178 | |||||||||||||
Balance at Mar. 31, 2019 | $ 29 | $ 35 | 518,889 | (199,634) | 319,319 | 470,712 | 790,031 | ||||||||
Stock-based compensation expense | $ 0 | $ 0 | 2,261 | 0 | 2,261 | 2,261 | |||||||||
Vesting of restricted stock units, net of taxes paid (in shares) | 133,311 | 0 | |||||||||||||
Vesting of restricted stock units, net of taxes paid | $ 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
Vested restricted stock units retained by the Company in exchange for payment of recipient mandatory tax withholdings (in shares) | 43,344 | 0 | |||||||||||||
Vested restricted stock units retained by the Company in exchange for payment of recipient mandatory tax withholdings | $ 0 | $ 0 | (265) | 0 | (265) | 0 | (265) | ||||||||
Cancellation of treasury shares (in shares) | (43,344) | 0 | |||||||||||||
Class B Common Stock converted to Class A Common Stock (in shares) | 35,732 | ||||||||||||||
Conversion of Stock, Shares Converted (in shares) | (35,732) | ||||||||||||||
Class B Common Stock converted to Class A Common Stock | $ 0 | $ 0 | 476 | 0 | 476 | 0 | |||||||||
Class B Common Stock converted to Class A Common Stock | (476) | ||||||||||||||
Net income (loss) | $ 0 | $ 0 | 0 | 8,777 | 8,777 | 10,759 | 19,536 | ||||||||
Balance (in shares) at Jun. 30, 2019 | 29,031,504 | 35,416,446 | |||||||||||||
Balance at Jun. 30, 2019 | $ 29 | $ 35 | 521,361 | (190,857) | 330,568 | 480,995 | 811,563 | ||||||||
Stock-based compensation expense | $ 0 | $ 0 | 2,207 | 0 | 2,207 | 2,207 | |||||||||
Vesting of restricted stock units, net of taxes paid (in shares) | 118,716 | 0 | |||||||||||||
Vesting of restricted stock units, net of taxes paid | $ 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
Vested restricted stock units retained by the Company in exchange for payment of recipient mandatory tax withholdings (in shares) | 49,111 | 0 | |||||||||||||
Vested restricted stock units retained by the Company in exchange for payment of recipient mandatory tax withholdings | $ 0 | $ 0 | (166) | 0 | (166) | 0 | (166) | ||||||||
Cancellation of treasury shares (in shares) | (49,111) | 0 | |||||||||||||
Class B Common Stock converted to Class A Common Stock (in shares) | 0 | 35,732 | |||||||||||||
Conversion of Stock, Shares Converted (in shares) | 0 | ||||||||||||||
Class B Common Stock converted to Class A Common Stock | $ 0 | $ 0 | 0 | 0 | 0 | 0 | |||||||||
Class B Common Stock converted to Class A Common Stock | 0 | ||||||||||||||
Net income (loss) | $ 0 | $ 0 | 0 | 11,770 | 11,770 | 14,357 | 26,127 | ||||||||
Balance (in shares) at Sep. 30, 2019 | 29,150,220 | 35,416,446 | |||||||||||||
Balance at Sep. 30, 2019 | $ 29 | $ 35 | 523,402 | (179,087) | 344,379 | 495,352 | 839,731 | ||||||||
Balance (in shares) at Dec. 31, 2019 | 29,421,131 | 35,260,680 | |||||||||||||
Balance at Dec. 31, 2019 | $ 29 | $ 35 | 527,246 | (181,711) | 345,599 | 490,152 | 835,751 | ||||||||
Stock-based compensation expense | $ 0 | $ 0 | 2,694 | 0 | 2,694 | 2,694 | |||||||||
Vesting of restricted stock units, net of taxes paid (in shares) | 231,834 | 0 | |||||||||||||
Vesting of restricted stock units, net of taxes paid | $ 1 | $ 0 | 0 | 0 | 1 | 0 | 1 | ||||||||
Vested restricted stock units retained by the Company in exchange for payment of recipient mandatory tax withholdings (in shares) | 75,695 | 0 | |||||||||||||
Vested restricted stock units retained by the Company in exchange for payment of recipient mandatory tax withholdings | $ 0 | $ 0 | (214) | 0 | (214) | 0 | (214) | ||||||||
Cancellation of treasury shares (in shares) | (75,695) | 0 | |||||||||||||
Class B Common Stock converted to Class A Common Stock (in shares) | 199,993 | ||||||||||||||
Conversion of Stock, Shares Converted (in shares) | (199,993) | ||||||||||||||
Class B Common Stock converted to Class A Common Stock | $ 0 | $ 0 | 2,897 | 0 | 2,897 | 0 | |||||||||
Class B Common Stock converted to Class A Common Stock | (2,897) | ||||||||||||||
Net income (loss) | $ 0 | $ 0 | 0 | 16,708 | 16,708 | 20,006 | 36,714 | ||||||||
Balance (in shares) at Mar. 31, 2020 | 29,852,958 | 35,060,687 | |||||||||||||
Balance at Mar. 31, 2020 | $ 30 | $ 35 | 532,623 | (165,003) | 367,685 | 507,261 | 874,946 | ||||||||
Balance (in shares) at Dec. 31, 2019 | 29,421,131 | 35,260,680 | |||||||||||||
Balance at Dec. 31, 2019 | $ 29 | $ 35 | 527,246 | (181,711) | 345,599 | 490,152 | 835,751 | ||||||||
Class B Common Stock converted to Class A Common Stock (in shares) | 251,309 | ||||||||||||||
Net income (loss) | (11,053) | ||||||||||||||
Balance (in shares) at Sep. 30, 2020 | 30,210,749 | 35,009,371 | |||||||||||||
Balance at Sep. 30, 2020 | $ 30 | $ 35 | 537,990 | (186,787) | 351,268 | 480,565 | 831,833 | ||||||||
Balance (in shares) at Mar. 31, 2020 | 29,852,958 | 35,060,687 | |||||||||||||
Balance at Mar. 31, 2020 | $ 30 | $ 35 | 532,623 | (165,003) | 367,685 | 507,261 | 874,946 | ||||||||
Stock-based compensation expense | $ 0 | $ 0 | 2,568 | 0 | 2,568 | 0 | 2,568 | ||||||||
Vesting of restricted stock units, net of taxes paid (in shares) | 165,399 | 0 | |||||||||||||
Vesting of restricted stock units, net of taxes paid | $ 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
Vested restricted stock units retained by the Company in exchange for payment of recipient mandatory tax withholdings (in shares) | 57,810 | 0 | |||||||||||||
Vested restricted stock units retained by the Company in exchange for payment of recipient mandatory tax withholdings | $ 0 | $ 0 | (170) | 0 | (170) | 0 | (170) | ||||||||
Cancellation of treasury shares (in shares) | (57,810) | 0 | |||||||||||||
Class B Common Stock converted to Class A Common Stock (in shares) | 2,000 | ||||||||||||||
Conversion of Stock, Shares Converted (in shares) | (2,000) | ||||||||||||||
Class B Common Stock converted to Class A Common Stock | $ 0 | $ 0 | 28 | 0 | 28 | 0 | |||||||||
Class B Common Stock converted to Class A Common Stock | (28) | ||||||||||||||
Net income (loss) | $ 0 | $ 0 | 0 | (16,339) | (16,339) | (19,570) | (35,909) | ||||||||
Balance (in shares) at Jun. 30, 2020 | 30,020,357 | 35,058,687 | |||||||||||||
Balance at Jun. 30, 2020 | $ 30 | $ 35 | 535,049 | (181,342) | 353,772 | 487,663 | 841,435 | ||||||||
Stock-based compensation expense | $ 0 | $ 0 | 2,403 | 0 | 2,403 | 0 | 2,403 | ||||||||
Vesting of restricted stock units, net of taxes paid (in shares) | 141,076 | 0 | |||||||||||||
Vesting of restricted stock units, net of taxes paid | $ 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
Vested restricted stock units retained by the Company in exchange for payment of recipient mandatory tax withholdings (in shares) | 54,268 | 0 | |||||||||||||
Vested restricted stock units retained by the Company in exchange for payment of recipient mandatory tax withholdings | $ 0 | $ 0 | (147) | 0 | (147) | 0 | (147) | ||||||||
Cancellation of treasury shares (in shares) | (54,268) | 0 | |||||||||||||
Class B Common Stock converted to Class A Common Stock (in shares) | 49,316 | 49,316 | |||||||||||||
Conversion of Stock, Shares Converted (in shares) | (49,316) | ||||||||||||||
Class B Common Stock converted to Class A Common Stock | $ 0 | $ 0 | 685 | 0 | 685 | 0 | |||||||||
Class B Common Stock converted to Class A Common Stock | (685) | ||||||||||||||
Net income (loss) | $ 0 | $ 0 | 0 | (5,445) | (5,445) | (6,413) | (11,858) | ||||||||
Balance (in shares) at Sep. 30, 2020 | 30,210,749 | 35,009,371 | |||||||||||||
Balance at Sep. 30, 2020 | $ 30 | $ 35 | $ 537,990 | $ (186,787) | $ 351,268 | $ 480,565 | $ 831,833 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||||
Net income (loss) | $ (11,858) | $ 26,127 | $ (11,053) | $ 7,220 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||
Depreciation, depletion and amortization | 28,538 | 14,079 | 76,096 | 42,281 |
Impairment of proved and unproved oil and gas properties | 0 | 44,928 | 0 | |
Impairment of goodwill | 0 | 0 | 17,620 | 0 |
Accretion of asset retirement obligations | 47 | 52 | 137 | 160 |
Settlement of asset retirement obligations | 0 | (179) | ||
(Gain) loss on sale of oil and gas properties | 0 | 120 | (198) | 446 |
Total (gain) loss on derivative contracts, net | 6,040 | (18,726) | (73,065) | 19,672 |
Operating portion of net cash received in settlement of derivative contracts | 47,599 | 13,660 | ||
Stock-based compensation | 7,665 | 6,680 | ||
Deferred income taxes | 112 | 728 | ||
Amortization of deferred financing costs | 100 | 100 | 241 | 336 |
Changes in assets and liabilities: | ||||
(Increase) decrease in accounts receivable | 12,102 | (5,585) | ||
(Increase) decrease in prepaid expenses and other current assets | (264) | (28) | ||
Increase (decrease) in accounts payable and accrued expenses | 1,976 | (8,330) | ||
Increase (decrease) in revenues and royalties payable | (7,768) | (9,042) | ||
Increase (decrease) in advances | (11,412) | 17,720 | ||
Net cash provided by operating activities | 104,716 | 85,739 | ||
Cash flows from investing activities: | ||||
Additions to oil and gas properties | (72,869) | (120,685) | ||
Additions to office and other equipment | (111) | (379) | ||
Proceeds from sales of oil and gas properties | 409 | 2 | ||
Net cash used in investing activities | (72,571) | (121,062) | ||
Cash flows from financing activities: | ||||
Proceeds from borrowings | 93,923 | 165,272 | ||
Repayments of borrowings | (133,923) | (119,099) | ||
Cash paid related to the exchange and cancellation of Class A Common Stock | (531) | (827) | ||
Cash paid for finance leases | (125) | (355) | ||
Deferred financing costs | 0 | (228) | ||
Net cash (used in) provided by financing activities | (40,656) | 44,763 | ||
Net (decrease) increase in cash | (8,511) | 9,440 | ||
Cash at beginning of period | 13,822 | 376 | ||
Cash at end of period | $ 5,311 | $ 9,816 | 5,311 | 9,816 |
Cash paid for: | ||||
Interest | 3,613 | 4,235 | ||
Non-cash investing and financing activities: | ||||
Accrued capital expenditures | 2,213 | 50,615 | ||
Lease asset additions - ASC 842 | 0 | 4,710 | ||
Asset retirement obligations | $ 44 | $ 43 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | Note 1. Earthstone Energy, Inc., a Delaware corporation (“Earthstone” and together with its consolidated subsidiaries, the “Company”), is a growth-oriented independent oil and natural gas development and production company. In addition, the Company is active in corporate mergers and the acquisition of oil and natural gas properties that have production and future development opportunities. The Company's operations are all in the upstream segment of the oil and natural gas industry and all its properties are onshore in the United States. Earthstone is the sole managing member of Earthstone Energy Holdings, LLC, a Delaware limited liability company (together with its wholly-owned consolidated subsidiaries, “EEH”), with a controlling interest in EEH. Earthstone, together with its wholly-owned subsidiary, Lynden Energy Corp., a corporation organized under the laws of British Columbia (“Lynden Corp”), and Lynden Corp’s wholly-owned consolidated subsidiary, Lynden USA Inc., a Utah corporation (“Lynden US”) and also a member of EEH, consolidates the financial results of EEH and records a noncontrolling interest in the Condensed Consolidated Financial Statements representing the economic interests of EEH's members other than Earthstone and Lynden US. The accompanying unaudited Condensed Consolidated Financial Statements and notes thereto have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) applicable to interim financial statements. Pursuant to such rules and regulations, certain disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted. The accompanying unaudited Condensed Consolidated Financial Statements and notes should be read in conjunction with the financial statements and notes included in Earthstone’s 2019 10 The information furnished herein reflects all adjustments that are, in the opinion of management, necessary for the fair presentation of the Company's financial position, results of operations and cash flows for the periods presented. The Company’s Condensed Consolidated Balance Sheet at December 31, 2019 Certain prior period amounts have been reclassified to conform to current period presentation within the Condensed Consolidated Financial Statements. Prior period ad valorem taxes which were previously included in Lease operating expenses within the Operating Costs and Expenses section of the Condensed Consolidated Statements of Operations have been reclassified from Lease operating expenses and combined with the previously presented Severance taxes line-item and the combined total presented as Production and ad valorem taxes, also within Operating Costs and Expenses, in order to conform to current period presentation. Additionally, prior period legal expenses related to a previously completed transaction and previously included in General and administrative expense within Operating Costs and Expenses have been reclassified to Transaction costs, also within Operating Costs and Expenses, to conform to current period presentation. These reclassifications had no Recently Issued Accounting Standards Intangibles – Goodwill and Other – January 2017, December 15, 2019 January 1, 2017. January 1, 2020. Note 15. Fair Value Measurements – August 2018, 820. December 15, 2019 January 1, 2020 not Credit Losses June 2016, not December 15, 2019. January 1, 2020 not Income Taxes December 2019, 740. 740 December 15, 2020 Reference Rate Reform March 2020, December 31, 2022. not not |
Note 2 - Fair Value Measurement
Note 2 - Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note 2. FASB Accounting Standards Codification (“ASC”) Topic 820, 820 three The three 820 Level 1 Level 2 1, Level 3 3 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 three no no nine September 30, 2020 Fair Value on a Recurring Basis Derivative financial instruments are carried at fair value and measured on a recurring basis. The derivative financial instruments consist of swaps for crude oil and natural gas and interest rate swaps. The Company’s commodity price hedges and interest rate swaps are valued based on discounted future cash flow models that are primarily based on published forward commodity price curves and published LIBOR forward curves; thus, these inputs are designated as Level 2 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 The following table summarizes the fair value of the Company’s financial assets and liabilities, by level within the fair-value hierarchy (in thousands) September 30, 2020 Level 1 Level 2 Level 3 Total Financial assets Derivative asset - current $ — $ 25,097 $ — $ 25,097 Derivative asset - noncurrent — 4,727 — 4,727 Total financial assets $ — $ 29,824 $ — $ 29,824 Financial liabilities Derivative liability - current $ — $ 1,040 $ — $ 1,040 Derivative liability - noncurrent — 577 — 577 Total financial liabilities $ — $ 1,617 $ — $ 1,617 December 31, 2019 Financial assets Derivative asset - current $ — $ 8,860 $ — $ 8,860 Derivative asset - noncurrent — 770 — 770 Total financial assets $ — $ 9,630 $ — $ 9,630 Financial liabilities Derivative liability - current $ — $ 6,889 $ — $ 6,889 Derivative liability - noncurrent — — — — Total financial liabilities $ — $ 6,889 $ — $ 6,889 Other financial instruments include cash, accounts receivable and payable, and revenue royalties. The carrying amount of these instruments approximates fair value because of their short-term nature. The Company’s long-term debt obligation bears interest at floating market rates, therefore carrying amounts and fair value are approximately equal. Fair Value on a Nonrecurring Basis The Company applies the provisions of the fair value measurement standard on a non-recurring basis to its non-financial assets and liabilities, including oil and gas properties, goodwill, business combinations, asset retirement obligations and performance units. These assets and liabilities are not may 19 nine September 30, 2020 Note 4. |
Note 3 - Derivative Financial I
Note 3 - Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Note 3. 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. Swaps exchange floating price risk in the future for a fixed price at the time of the hedge. Consistent with its hedging policy, the Company has entered into a series of derivative instruments to hedge a significant portion of its expected oil and natural gas production through December 31, 2021. not The Company’s derivative instruments are cash flow hedge transactions in which it is hedging the variability of cash flow related to a forecasted transaction. The Company does not 815. may The Company nets its derivative instrument fair value amounts executed with each counterparty pursuant to an International Swap Dealers Association Master Agreement (“ISDA”), which provides for net settlement over the term of the contract. The ISDA is a standard contract that governs all derivative contracts entered into between the Company and the respective counterparty. The ISDA allows for offsetting of amounts payable or receivable between the Company and the counterparty, at the election of both parties, for transactions that occur on the same date and in the same currency. The Company had the following open crude oil and natural gas derivative contracts as of September 30, 2020 Price Swaps Volume Weighted Average Price Period Commodity (Bbls / MMBtu) ($/Bbl / $/MMBtu) Q4 2020 Crude Oil 552,000 $ 60.65 Q1 - Q4 2021 Crude Oil 1,460,000 $ 55.16 Q4 2020 Crude Oil Basis Swap (1) 598,000 $ (1.50 ) Q4 2020 Crude Oil Basis Swap (2) 92,000 $ 2.55 Q4 2020 Crude Oil Roll Swap (3) 552,000 $ (1.79 ) Q1 - Q4 2021 Crude Oil Basis Swap (1) 1,825,000 $ 1.05 Q4 2020 Natural Gas 644,000 $ 2.85 Q1 - Q4 2021 Natural Gas 4,380,000 $ 2.76 Q4 2020 Natural Gas Basis Swap (4) 644,000 $ (1.07 ) Q1 - Q4 2021 Natural Gas Basis Swap (4) 4,380,000 $ (0.45 ) ( 1 The basis differential price is between WTI Midland Crude and the WTI NYMEX. ( 2 The basis differential price is between WTI Houston and the WTI NYMEX. ( 3 The swap is between WTI Roll and the WTI NYMEX. ( 4 The basis differential price is between W. Texas (WAHA) and the Henry Hub NYMEX. Interest Rate Swaps At times, the Company’s hedging activities include the use of interest rate swaps entered into in order to manage cash flow variability resulting from changes in interest rates. These derivative instruments are not The Company had the following interest rate swaps as of September 30, 2020 Effective Dates Notional Amount Fixed Rate May 5, 2020 to May 5, 2022 $ 125,000,000 0.286 % May 5, 2022 to May 5, 2023 $ 100,000,000 0.286 % May 5, 2023 to May 7, 2024 $ 75,000,000 0.286 % The following table summarizes the location and fair value amounts of all derivative instruments in the Condensed Consolidated Balance Sheets as well as the gross recognized derivative assets, liabilities, and amounts offset in the Condensed Consolidated Balance Sheets (in thousands) September 30, 2020 December 31, 2019 Derivatives not Gross Net Gross Net designated as hedging Balance Recognized Gross Recognized Recognized Gross Recognized contracts under ASC Sheet Assets / Amounts Assets / Assets / Amounts Assets / Topic 815 Location Liabilities Offset Liabilities Liabilities Offset Liabilities Commodity contracts Derivative asset - current $ 26,773 $ (1,676 ) $ 25,097 $ 13,321 $ (4,461 ) $ 8,860 Commodity contracts Derivative liability - current $ 2,539 $ (1,676 ) $ 863 $ 11,350 $ (4,461 ) $ 6,889 Interest rate swaps Derivative liability - current $ 177 $ — $ 177 $ — $ — $ — Commodity contracts Derivative asset - noncurrent $ 4,727 $ — $ 4,727 $ 1,031 $ (261 ) $ 770 Commodity contracts Derivative liability - noncurrent $ 355 $ — $ 355 $ 261 $ (261 ) $ — Interest rate swaps Derivative liability - noncurrent $ 222 $ — $ 222 $ — $ — $ — 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) Three Months Ended Nine Months Ended Derivatives not designated as hedging contracts under ASC Topic 815 September 30, September 30, Statement of Cash Flows Location Statement of Operations Location 2020 2019 2020 2019 Unrealized (loss) gain Not separately presented Not separately presented $ (14,543 ) $ 15,021 $ 25,466 $ (33,332 ) Realized gain Operating portion of net cash received in settlement of derivative contracts Not separately presented 8,503 3,705 47,599 13,660 Total (loss) gain on derivative contracts, net (Loss) gain on derivative contracts, net $ (6,040 ) $ 18,726 $ 73,065 $ (19,672 ) Included in Accounts receivable under the subheading of Joint interest billings and other in the Condensed Consolidated Balance Sheets as of September 30, 2020 December 31, 2019 not |
Note 4 - Asset Impairments
Note 4 - Asset Impairments | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Asset Impairment Charges [Text Block] | Note 4. The Company had the following non-cash asset impairment charges for the three nine September 30, 2020 in thousands Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Proved property $ — $ 25,252 Unproved property 2,115 19,676 Goodwill — 17,620 Impairment expense $ 2,115 $ 62,548 See further discussion of non-cash asset impairment charges to Proved property and Unproved property in Note 5. Note 15. The Company did not three nine September 30, 2019 |
Note 5 - Oil and Natural Gas Pr
Note 5 - Oil and Natural Gas Properties | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Oil and Gas Properties [Text Block] | Note 5. 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 nine September 30, 2020 three nine September 30, 2019 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 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 five 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 Impairments to Oil and Natural Gas Properties During the three March 31, 2020, No three September 30, 2020 three nine September 30, 2020 The Company did not three nine September 30, 2019 Capitalized costs, impairment, and depreciation, depletion and amortization relating to the Company’s oil and natural gas properties as of September 30, 2020 December 31, 2019 in thousands September 30, December 31, 2020 2019 Oil and gas properties, successful efforts method: Proved properties $ 1,096,318 $ 1,046,208 Accumulated impairment to proved properties (100,652 ) (75,400 ) Proved properties, net of accumulated impairments 995,666 970,808 Unproved properties 301,847 305,961 Accumulated impairment to Unproved properties (65,365 ) (45,690 ) Unproved properties, net of accumulated impairments 236,482 260,271 Land 5,382 5,382 Total oil and gas properties, net of accumulated impairments 1,237,530 1,236,461 Accumulated depreciation, depletion and amortization (271,012 ) (195,567 ) Net oil and gas properties $ 966,518 $ 1,040,894 |
Note 6 - Noncontrolling Interes
Note 6 - Noncontrolling Interest | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Noncontrolling Interest Disclosure [Text Block] | Note 6. Earthstone consolidates the financial results of EEH and its subsidiaries and records a noncontrolling interest for the economic interest in Earthstone held by the members of EEH other than Earthstone and Lynden US. Net (loss) income attributable to noncontrolling interest in the Condensed Consolidated Statements of Operations for the three nine September 30, 2020 2019 September 30, 2020 December 31, 2019 The following table presents the changes in noncontrolling interest for the nine September 30, 2020 EEH Units Held Total EEH By Earthstone EEH Units Held Units and Lynden US % By Others % Outstanding As of December 31, 2019 29,421,131 45.5 % 35,260,680 54.5 % 64,681,811 EEH Units and Class B Common Stock converted to Class A Common Stock 251,309 (251,309 ) — EEH Units issued in connection with the vesting of restricted stock units 538,309 — 538,309 As of September 30, 2020 30,210,749 46.3 % 35,009,371 53.7 % 65,220,120 |
Note 7 - Net (Loss) Income Per
Note 7 - Net (Loss) Income Per Common Share | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 7. Net (loss) income per common share—basic is calculated by dividing Net (loss) income by the weighted average number of shares of common stock outstanding during the period. Net (loss) income per common share—diluted assumes the conversion of all potentially dilutive securities and is calculated by dividing Net (loss) income by the sum of the weighted average number of shares of common stock, as defined above, outstanding plus potentially dilutive securities. Net (loss) 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 (loss) income per common share is as follows: Three Months Ended Nine Months Ended September 30, September 30, (In thousands, except per share amounts) 2020 2019 2020 2019 Net (loss) income attributable to Earthstone Energy, Inc. $ (5,445 ) $ 11,770 $ (5,076 ) $ 3,343 Net (loss) income per common share attributable to Earthstone Energy, Inc.: Basic $ (0.18 ) $ 0.41 $ (0.17 ) $ 0.12 Diluted $ (0.18 ) $ 0.41 $ (0.17 ) $ 0.12 Weighted average common shares outstanding Basic 30,073,635 29,032,842 29,810,705 28,883,907 Add potentially dilutive securities: Unvested restricted stock units (1) — — — — Unvested performance units (1) — — — — Diluted weighted average common shares outstanding 30,073,635 29,032,842 29,810,705 28,883,907 ( 1 three nine September 30, 2020 2019, Class B Common Stock has been excluded, as its conversion would eliminate noncontrolling interest and net loss attributable to noncontrolling interest of $6.4 million for the three September 30, 2020 nine September 30, 2020 no Class B Common Stock has been excluded, as its conversion would eliminate noncontrolling interest and net income attributable to noncontrolling interest of $14.4 million for the three September 30, 2019 nine September 30, 2019 no |
Note 8 - Common Stock
Note 8 - Common Stock | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | Note 8. Class A Common Stock At September 30, 2020 December 31, 2019 three nine September 30, 2020 2014 “2014 three nine September 30, 2019 2014 Class B Common Stock At September 30, 2020 December 31, 2019 three nine September 30, 2020 three nine September 30, 2019 |
Note 9 - Stock-based Compensati
Note 9 - Stock-based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | Note 9. Restricted Stock Units The 2014 September 30, 2020 may 2014 Each RSU represents the contingent right to receive one share of Class A Common Stock. The holders of outstanding RSUs do not The table below summarizes RSU award activity for the nine September 30, 2020 Shares Weighted-Average Grant Date Fair Value Unvested RSUs at December 31, 2019 1,107,796 $ 6.60 Granted 568,900 $ 5.15 Forfeited (1,083 ) $ 5.19 Vested (726,082 ) $ 6.43 Unvested RSUs at September 30, 2020 949,531 $ 5.86 As of September 30, 2020 For the three nine September 30, 2020 three nine September 30, 2019 Performance Units The table below summarizes performance unit (“PSU”) activity for the nine September 30, 2020 Shares Weighted-Average Grant Date Fair Value Unvested PSUs at December 31, 2019 835,625 $ 10.51 Granted 1,043,800 $ 5.36 Unvested PSUs at September 30, 2020 1,879,425 $ 7.65 On January 30, 2020, “2020 2014 “2020 2020 2014 “2014 2014 2020 June 3, 2020. 2020 February 1, 2020 January 31, 2023 ( The 2020 three February 1, 2020. 0x 2.0x 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 2020 may 19 14.5% 2020 The Company accounts for these awards as market-based awards which are valued utilizing the Monte Carlo Simulation pricing model, which calculates multiple potential outcomes for an award and establishes grant date fair value based on the most likely outcome. For the 2020 As of September 30, 2020 For the three nine September 30, 2020 three nine September 30, 2019 |
Note 10 - Long-term Debt
Note 10 - Long-term Debt | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | Note 10. Credit Facility On November 21, 2019, November 21, 2019. Concurrently with the effectiveness of the Credit Facility, the Company terminated that certain credit agreement, dated as of May 9, 2017 ( On March 27, 2020, On September 28, 2020, $275 The next regularly scheduled redetermination of the borrowing base is on or around April 1, 2021. November 1st May 1st one November 21, 2024. Effective May 2020, May 2022 May 2023 May 2024. The Credit Facility contains a number of covenants that, among other things, restrict, subject to certain exceptions, EEH’s ability to incur additional indebtedness, create liens on assets, make investments, pay dividends and distributions or repurchase its limited liability interests, engage in mergers or consolidations, sell certain assets, sell or discount any notes receivable or accounts receivable and engage in certain transactions with affiliates. In addition, the Credit Facility requires EEH to maintain the following financial covenants: a current ratio of not 1.0 not 1.0. four x not The Credit Facility contains customary affirmative covenants and defines events of default to include failure to pay principal or interest, breach of covenants, breach of representations and warranties, insolvency, judgment default and a change in control. Upon the occurrence and continuance of an event of default, the Lenders have the right to accelerate repayment of the loans and exercise their remedies with respect to the collateral. As of September 30, 2020 As of September 30, 2020 December 31, 2019 For the nine September 30, 2020 For the three nine September 30, 2020 three nine September 30, 2019 The Company’s policy is to capitalize the financing costs associated with its debt and amortize those costs on a straight-line basis over the term of the associated debt. These capitalized costs are included in Other noncurrent assets in the Condensed Consolidated Balance Sheets. No costs associated with the Credit Facility were capitalized during the three nine September 30, 2020 2019 |
Note 11 - Asset Retirement Obli
Note 11 - Asset Retirement Obligations | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Asset Retirement Obligation Disclosure [Text Block] | Note 11. The Company has asset retirement obligations associated with the future plugging and abandonment of oil and gas properties and related facilities. Revisions to the liability typically occur due to changes in the estimated abandonment costs, well economic lives, and the discount rate. The following table summarizes the Company’s asset retirement obligation transactions recorded during the nine September 30, (in thousands) 2020 Beginning asset retirement obligations $ 2,164 Liabilities incurred 46 Accretion expense 137 Divestitures (10 ) Revision of estimates (2 ) Ending asset retirement obligations $ 2,335 |
Note 12 - Related Party Transac
Note 12 - Related Party Transactions | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | Note 12. FASB ASC Topic 850 , Related Party Disclosures Earthstone's majority shareholder consists of various investment funds managed by a private equity firm who may February 12, 2020, not In connection with the Olenik v. Lodzinski et al. lawsuit described below in Note 13. June 2020, September 30, 2020 |
Note 13 - Commitments and Conti
Note 13 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note 13. Legal From time to time, Earthstone and its subsidiaries may June 2, 2017, November 7, 2016 March 21, 2017 ( not not March 13, 2017, July 20, 2018, April 5, 2019, September 21, 2020. Prior to September 30, 2020, Environmental and Regulatory As of September 30, 2020 no 17 Table of Contents EARTHSTONE ENERGY, INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
Note 14 - Income Taxes
Note 14 - Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 14. The Company’s corporate structure requires the filing of two one not During the nine September 30, 2020 1 no 2 3 no nine September 30, 2020 During the nine September 30, 2019 1 2 no 3 no nine September 30, 2019 |
Note 15 - Goodwill
Note 15 - Goodwill | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Goodwill Disclosure [Text Block] | Note 15. Goodwill represents the excess of the purchase price of assets acquired over the fair value of those assets. The fair value of Goodwill is classified as a Level 3 820. may not A discounted future cash flow analysis of the properties to which the Goodwill was associated was performed based on commodity price futures as of March 31, 2020. two No September 30, 2020. not three nine September 30, 2019. Accumulated impairments to Goodwill as of September 30, 2020 December 31, 2019 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Standards Intangibles – Goodwill and Other – January 2017, December 15, 2019 January 1, 2017. January 1, 2020. Note 15. Fair Value Measurements – August 2018, 820. December 15, 2019 January 1, 2020 not Credit Losses June 2016, not December 15, 2019. January 1, 2020 not Income Taxes December 2019, 740. 740 December 15, 2020 Reference Rate Reform March 2020, December 31, 2022. not not |
Note 2 - Fair Value Measureme_2
Note 2 - Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | September 30, 2020 Level 1 Level 2 Level 3 Total Financial assets Derivative asset - current $ — $ 25,097 $ — $ 25,097 Derivative asset - noncurrent — 4,727 — 4,727 Total financial assets $ — $ 29,824 $ — $ 29,824 Financial liabilities Derivative liability - current $ — $ 1,040 $ — $ 1,040 Derivative liability - noncurrent — 577 — 577 Total financial liabilities $ — $ 1,617 $ — $ 1,617 December 31, 2019 Financial assets Derivative asset - current $ — $ 8,860 $ — $ 8,860 Derivative asset - noncurrent — 770 — 770 Total financial assets $ — $ 9,630 $ — $ 9,630 Financial liabilities Derivative liability - current $ — $ 6,889 $ — $ 6,889 Derivative liability - noncurrent — — — — Total financial liabilities $ — $ 6,889 $ — $ 6,889 |
Note 3 - Derivative Financial_2
Note 3 - Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | Price Swaps Volume Weighted Average Price Period Commodity (Bbls / MMBtu) ($/Bbl / $/MMBtu) Q4 2020 Crude Oil 552,000 $ 60.65 Q1 - Q4 2021 Crude Oil 1,460,000 $ 55.16 Q4 2020 Crude Oil Basis Swap (1) 598,000 $ (1.50 ) Q4 2020 Crude Oil Basis Swap (2) 92,000 $ 2.55 Q4 2020 Crude Oil Roll Swap (3) 552,000 $ (1.79 ) Q1 - Q4 2021 Crude Oil Basis Swap (1) 1,825,000 $ 1.05 Q4 2020 Natural Gas 644,000 $ 2.85 Q1 - Q4 2021 Natural Gas 4,380,000 $ 2.76 Q4 2020 Natural Gas Basis Swap (4) 644,000 $ (1.07 ) Q1 - Q4 2021 Natural Gas Basis Swap (4) 4,380,000 $ (0.45 ) |
Schedule of Interest Rate Derivatives [Table Text Block] | Effective Dates Notional Amount Fixed Rate May 5, 2020 to May 5, 2022 $ 125,000,000 0.286 % May 5, 2022 to May 5, 2023 $ 100,000,000 0.286 % May 5, 2023 to May 7, 2024 $ 75,000,000 0.286 % |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | September 30, 2020 December 31, 2019 Derivatives not Gross Net Gross Net designated as hedging Balance Recognized Gross Recognized Recognized Gross Recognized contracts under ASC Sheet Assets / Amounts Assets / Assets / Amounts Assets / Topic 815 Location Liabilities Offset Liabilities Liabilities Offset Liabilities Commodity contracts Derivative asset - current $ 26,773 $ (1,676 ) $ 25,097 $ 13,321 $ (4,461 ) $ 8,860 Commodity contracts Derivative liability - current $ 2,539 $ (1,676 ) $ 863 $ 11,350 $ (4,461 ) $ 6,889 Interest rate swaps Derivative liability - current $ 177 $ — $ 177 $ — $ — $ — Commodity contracts Derivative asset - noncurrent $ 4,727 $ — $ 4,727 $ 1,031 $ (261 ) $ 770 Commodity contracts Derivative liability - noncurrent $ 355 $ — $ 355 $ 261 $ (261 ) $ — Interest rate swaps Derivative liability - noncurrent $ 222 $ — $ 222 $ — $ — $ — |
Derivatives Not Designated as Hedging Instruments [Table Text Block] | Three Months Ended Nine Months Ended Derivatives not designated as hedging contracts under ASC Topic 815 September 30, September 30, Statement of Cash Flows Location Statement of Operations Location 2020 2019 2020 2019 Unrealized (loss) gain Not separately presented Not separately presented $ (14,543 ) $ 15,021 $ 25,466 $ (33,332 ) Realized gain Operating portion of net cash received in settlement of derivative contracts Not separately presented 8,503 3,705 47,599 13,660 Total (loss) gain on derivative contracts, net (Loss) gain on derivative contracts, net $ (6,040 ) $ 18,726 $ 73,065 $ (19,672 ) |
Note 4 - Asset Impairments (Tab
Note 4 - Asset Impairments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Details of Impairment of Long-Lived Assets Held and Used by Asset [Table Text Block] | Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Proved property $ — $ 25,252 Unproved property 2,115 19,676 Goodwill — 17,620 Impairment expense $ 2,115 $ 62,548 |
Note 5 - Oil and Natural Gas _2
Note 5 - Oil and Natural Gas Properties (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Capitalized Costs Relating to Oil and Gas Producing Activities Disclosure [Table Text Block] | September 30, December 31, 2020 2019 Oil and gas properties, successful efforts method: Proved properties $ 1,096,318 $ 1,046,208 Accumulated impairment to proved properties (100,652 ) (75,400 ) Proved properties, net of accumulated impairments 995,666 970,808 Unproved properties 301,847 305,961 Accumulated impairment to Unproved properties (65,365 ) (45,690 ) Unproved properties, net of accumulated impairments 236,482 260,271 Land 5,382 5,382 Total oil and gas properties, net of accumulated impairments 1,237,530 1,236,461 Accumulated depreciation, depletion and amortization (271,012 ) (195,567 ) Net oil and gas properties $ 966,518 $ 1,040,894 |
Note 6 - Noncontrolling Inter_2
Note 6 - Noncontrolling Interest (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Changes in Noncontrolling Interest [Table Text Block] | EEH Units Held Total EEH By Earthstone EEH Units Held Units and Lynden US % By Others % Outstanding As of December 31, 2019 29,421,131 45.5 % 35,260,680 54.5 % 64,681,811 EEH Units and Class B Common Stock converted to Class A Common Stock 251,309 (251,309 ) — EEH Units issued in connection with the vesting of restricted stock units 538,309 — 538,309 As of September 30, 2020 30,210,749 46.3 % 35,009,371 53.7 % 65,220,120 |
Note 7 - Net (Loss) Income Pe_2
Note 7 - Net (Loss) Income Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Nine Months Ended September 30, September 30, (In thousands, except per share amounts) 2020 2019 2020 2019 Net (loss) income attributable to Earthstone Energy, Inc. $ (5,445 ) $ 11,770 $ (5,076 ) $ 3,343 Net (loss) income per common share attributable to Earthstone Energy, Inc.: Basic $ (0.18 ) $ 0.41 $ (0.17 ) $ 0.12 Diluted $ (0.18 ) $ 0.41 $ (0.17 ) $ 0.12 Weighted average common shares outstanding Basic 30,073,635 29,032,842 29,810,705 28,883,907 Add potentially dilutive securities: Unvested restricted stock units (1) — — — — Unvested performance units (1) — — — — Diluted weighted average common shares outstanding 30,073,635 29,032,842 29,810,705 28,883,907 |
Note 9 - Stock-based Compensa_2
Note 9 - Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Shares Weighted-Average Grant Date Fair Value Unvested RSUs at December 31, 2019 1,107,796 $ 6.60 Granted 568,900 $ 5.15 Forfeited (1,083 ) $ 5.19 Vested (726,082 ) $ 6.43 Unvested RSUs at September 30, 2020 949,531 $ 5.86 Shares Weighted-Average Grant Date Fair Value Unvested PSUs at December 31, 2019 835,625 $ 10.51 Granted 1,043,800 $ 5.36 Unvested PSUs at September 30, 2020 1,879,425 $ 7.65 |
Schedule of Total Shareholder Return Goals [Table Text Block | 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 |
Note 11 - Asset Retirement Ob_2
Note 11 - Asset Retirement Obligations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Change in Asset Retirement Obligation [Table Text Block] | 2020 Beginning asset retirement obligations $ 2,164 Liabilities incurred 46 Accretion expense 137 Divestitures (10 ) Revision of estimates (2 ) Ending asset retirement obligations $ 2,335 |
Note 2 - Fair Value Measureme_3
Note 2 - Fair Value Measurements - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Derivative asset - current | $ 25,097 | $ 8,860 |
Derivative asset | 4,727 | 770 |
Derivative liability - current | 1,040 | 6,889 |
Derivative liability | 577 | 0 |
Fair Value, Recurring [Member] | ||
Derivative asset - current | 25,097 | 8,860 |
Derivative asset | 4,727 | 770 |
Total financial assets | 29,824 | 9,630 |
Derivative liability - current | 1,040 | 6,889 |
Derivative liability | 577 | 0 |
Total financial liabilities | 1,617 | 6,889 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Derivative asset - current | 0 | 0 |
Derivative asset | 0 | 0 |
Total financial assets | 0 | 0 |
Derivative liability - current | 0 | 0 |
Derivative liability | 0 | 0 |
Total financial liabilities | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Derivative asset - current | 25,097 | 8,860 |
Derivative asset | 4,727 | 770 |
Total financial assets | 29,824 | 9,630 |
Derivative liability - current | 1,040 | 6,889 |
Derivative liability | 577 | 0 |
Total financial liabilities | 1,617 | 6,889 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Derivative asset - current | 0 | 0 |
Derivative asset | 0 | 0 |
Total financial assets | 0 | 0 |
Derivative liability - current | 0 | 0 |
Derivative liability | 0 | 0 |
Total financial liabilities | $ 0 | $ 0 |
Note 3 - Derivative Financial_3
Note 3 - Derivative Financial Instruments (Details Textual) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Oil and Gas Joint Interest Billing Receivables Current [Member] | Commodity Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivative Asset, Total | $ 3.6 | $ 0.6 |
Note 3 - Derivative Financial_4
Note 3 - Derivative Financial Instruments - Derivative Financial Instruments - Schedule of Open Crude Oil and Natural Gas Derivative Contracts (Details) | 3 Months Ended | |
Sep. 30, 2020BoeMMBTU | ||
Crude Oil Derivative Swap Q4 2020 [Member] | ||
Crude oil volume (Barrel of Oil Equivalent) | 552,000 | |
Weighted average price | 60.65 | |
Crude Oil Derivative Swap Q1 - Q4 2021 [Member] | ||
Crude oil volume (Barrel of Oil Equivalent) | 1,460,000 | |
Weighted average price | 55.16 | |
Crude Oil Basis Swap 1 Q4 2020 [Member] | ||
Crude oil volume (Barrel of Oil Equivalent) | 598,000 | [1] |
Weighted average price | (1.50) | [1] |
Crude Oil Basis Swap 2 Q4 2020 [Member] | ||
Crude oil volume (Barrel of Oil Equivalent) | 92,000 | [2] |
Weighted average price | 2.55 | [2] |
Crude Oil Basis Swap 3 Q4 2020 [Member] | ||
Crude oil volume (Barrel of Oil Equivalent) | 552,000 | [3] |
Weighted average price | (1.79) | [3] |
Crude Oil Basis Swap Q1 - Q4 2021 [Member] | ||
Crude oil volume (Barrel of Oil Equivalent) | 1,825,000 | [1] |
Weighted average price | 1.05 | [1] |
Natural Gas Derivative Swap Q4 2021 [Member] | ||
Crude oil volume (Barrel of Oil Equivalent) | MMBTU | 644,000 | |
Weighted average price | 2.85 | |
Natural Gas Derivative Swap Q1 - Q4 2021 [Member] | ||
Crude oil volume (Barrel of Oil Equivalent) | MMBTU | 4,380,000 | |
Weighted average price | 2.76 | |
Natural Gas Basis Swap Q4 2021 [Member] | ||
Crude oil volume (Barrel of Oil Equivalent) | MMBTU | 644,000 | [4] |
Weighted average price | (1.07) | [4] |
Natural Gas Basis Swap Q1 - Q4 2021 [Member] | ||
Crude oil volume (Barrel of Oil Equivalent) | MMBTU | 4,380,000 | [4] |
Weighted average price | (0.45) | [4] |
[1] | The basis differential price is between WTI Midland Crude and the WTI NYMEX. | |
[2] | The basis differential price is between WTI Houston and the WTI NYMEX. | |
[3] | The swap is between WTI Roll and the WTI NYMEX. | |
[4] | The basis differential price is between W. Texas (WAHA) and the Henry Hub NYMEX. |
Note 3 - Derivative Financial_5
Note 3 - Derivative Financial Instruments - Schedule of Interest Rate Swaps (Details) | Sep. 30, 2020USD ($) |
May 5, 2020 to May 5, 2022 [Member] | |
Notional amount | $ 125,000,000 |
Fixed rate | 0.286% |
May 5, 2022 to May 5, 2023 [Member] | |
Notional amount | $ 100,000,000 |
Fixed rate | 0.286% |
May 5, 2023 to May 7, 2024 [Member] | |
Notional amount | $ 75,000,000 |
Fixed rate | 0.286% |
Note 3 - Derivative Financial_6
Note 3 - Derivative Financial Instruments - Schedule of Location and Fair Value Amounts of All Derivative Instruments (Details) - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Commodity Contract [Member] | Derivative Asset - Current [Member] | ||
Gross recognized assets | $ 26,773 | $ 13,321 |
Gross amounts offset, assets | (1,676) | (4,461) |
Derivative assets | 25,097 | 8,860 |
Commodity Contract [Member] | Derivative Liability - Current [Member] | ||
Gross recognized liabilities | 2,539 | 11,350 |
Gross amounts offset, liabilities | (1,676) | (4,461) |
Derivative liabilites | 863 | 6,889 |
Commodity Contract [Member] | Derivative Assets - Noncurrent [Member] | ||
Gross recognized assets | 4,727 | 1,031 |
Gross amounts offset, assets | 0 | (261) |
Derivative assets | 4,727 | 770 |
Commodity Contract [Member] | Derivative Liability - Noncurrent [Member] | ||
Gross recognized liabilities | 355 | 261 |
Gross amounts offset, liabilities | 0 | (261) |
Derivative liabilites | 355 | 0 |
Interest Rate Swap [Member] | Derivative Liability - Current [Member] | ||
Gross recognized liabilities | 177 | 0 |
Gross amounts offset, liabilities | 0 | 0 |
Derivative liabilites | 177 | 0 |
Interest Rate Swap [Member] | Derivative Liability - Noncurrent [Member] | ||
Gross recognized liabilities | 222 | 0 |
Gross amounts offset, liabilities | 0 | 0 |
Derivative liabilites | $ 222 | $ 0 |
Note 3 - Derivative Financial_7
Note 3 - Derivative Financial Instruments - Summary of Realized and Unrealized Gains and Losses on Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Realized gain | $ (47,599) | $ (13,660) | ||
(Loss) gain on derivative contracts, net | $ (6,040) | $ 18,726 | 73,065 | (19,672) |
Not Designated as Hedging Instrument [Member] | ||||
Unrealized (loss) gain | (14,543) | 15,021 | 25,466 | (33,332) |
Realized gain | 8,503 | 3,705 | 47,599 | 13,660 |
(Loss) gain on derivative contracts, net | $ (6,040) | $ 18,726 | $ 73,065 | $ (19,672) |
Note 4 - Asset Impairments (Det
Note 4 - Asset Impairments (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Impairment of Oil and Gas Properties | $ 0 | $ 44,928 | $ 0 |
Note 4 - Asset Impairments - No
Note 4 - Asset Impairments - Non-cash Asset Impairment Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Impairment of proved and unproved oil and gas properties | $ 0 | $ 44,928 | $ 0 | |
Goodwill | $ 0 | 0 | 17,620 | 0 |
Impairment expense | 2,115 | $ 0 | 62,548 | $ 0 |
Proved Property [Member] | ||||
Impairment of proved and unproved oil and gas properties | 0 | 25,252 | ||
Unproved Property [Member] | ||||
Impairment of proved and unproved oil and gas properties | $ 2,115 | $ 19,676 |
Note 5 - Oil and Natural Gas _3
Note 5 - Oil and Natural Gas Properties (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Impairment of Oil and Gas Properties | $ 0 | $ 44,928 | $ 0 | ||
Asset Impairment Charges, Total | $ 2,115 | 0 | 62,548 | 0 | |
Proved Oil and Natural Gas Properties [Member] | |||||
Depletion of Oil and Gas Properties | 28,400 | $ 13,900 | $ 75,700 | $ 41,700 | |
Proved Oil and Natural Gas Properties [Member] | Eagle Ford Trend [Member] | |||||
Impairment of Oil and Gas Properties | $ 25,300 | ||||
Unproved Oil and Gas Properties [Member] | Eagle Ford Trend [Member] | |||||
Impairment of Oil and Gas Properties | 0 | $ 11,300 | |||
Unproved Oil and Gas Properties [Member] | Minimum [Member] | |||||
Oil and Gas Commitments and Contracts Term (Year) | 3 years | ||||
Unproved Oil and Gas Properties [Member] | Maximum [Member] | |||||
Oil and Gas Commitments and Contracts Term (Year) | 5 years | ||||
Oil and Gas Properties, Subject to Acreage Expirations [Member] | |||||
Impairment of Oil and Gas Properties | $ 2,100 | $ 8,400 |
Note 5 - Oil and Natural Gas _4
Note 5 - Oil and Natural Gas Properties - Schedule of Capitalized Costs, Impairment, and Depreciation (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Proved properties | $ 995,666 | $ 970,808 |
Net oil and gas properties | 966,518 | 1,040,894 |
Unproved properties | 236,482 | 260,271 |
Land | 5,382 | 5,382 |
Total oil and gas properties, net of accumulated impairments | 1,237,530 | 1,236,461 |
Accumulated depreciation, depletion and amortization | (271,012) | (195,567) |
Proved Oil and Natural Gas Properties [Member] | ||
Proved properties | 1,096,318 | 1,046,208 |
Accumulated impairment | (100,652) | (75,400) |
Net oil and gas properties | 995,666 | 970,808 |
Unproved Oil and Gas Properties [Member] | ||
Accumulated impairment | (65,365) | (45,690) |
Net oil and gas properties | 236,482 | 260,271 |
Unproved properties | $ 301,847 | $ 305,961 |
Note 6 - Noncontrolling Inter_3
Note 6 - Noncontrolling Interest - Summary of Changes in Noncontrolling Interest (Details) | 9 Months Ended | |
Sep. 30, 2020shares | Dec. 31, 2019 | |
Common Class A [Member] | ||
Outstanding, beginning balance (in shares) | 29,421,131 | |
Outstanding, ending balance (in shares) | 30,210,749 | |
Earthstone Energy Holdings Limited Liability Company [Member] | ||
Outstanding, beginning balance (in shares) | 64,681,811 | |
Outstanding, ending balance (in shares) | 65,220,120 | |
Earthstone Energy Holdings Limited Liability Company [Member] | Restricted Stock Units (RSUs) [Member] | ||
EEH Units issued in connection with the vesting of restricted stock units (in shares) | 538,309 | |
Earthstone Energy Holdings Limited Liability Company [Member] | Bold Transaction [Member] | Common Class A [Member] | ||
EEH Units and Class B Common Stock converted to Class A Common Stock (in shares) | 0 | |
Earthstone Energy Incorporation and Lynden United States of America Incorporation [Member] | Earthstone Energy Holdings Limited Liability Company [Member] | ||
Outstanding, beginning balance (in shares) | 29,421,131 | |
Percent of units held | 46.30% | 45.50% |
Outstanding, ending balance (in shares) | 30,210,749 | |
Earthstone Energy Incorporation and Lynden United States of America Incorporation [Member] | Earthstone Energy Holdings Limited Liability Company [Member] | Restricted Stock Units (RSUs) [Member] | ||
EEH Units issued in connection with the vesting of restricted stock units (in shares) | 538,309 | |
Earthstone Energy Incorporation and Lynden United States of America Incorporation [Member] | Earthstone Energy Holdings Limited Liability Company [Member] | Bold Transaction [Member] | Common Class A [Member] | ||
EEH Units and Class B Common Stock converted to Class A Common Stock (in shares) | 251,309 | |
Other Entities [Member] | Earthstone Energy Holdings Limited Liability Company [Member] | ||
Outstanding, beginning balance (in shares) | 35,260,680 | |
Percent of units held | 53.70% | 54.50% |
Outstanding, ending balance (in shares) | 35,009,371 | |
Other Entities [Member] | Earthstone Energy Holdings Limited Liability Company [Member] | Restricted Stock Units (RSUs) [Member] | ||
EEH Units issued in connection with the vesting of restricted stock units (in shares) | 0 | |
Other Entities [Member] | Earthstone Energy Holdings Limited Liability Company [Member] | Bold Transaction [Member] | Common Class A [Member] | ||
EEH Units and Class B Common Stock converted to Class A Common Stock (in shares) | (251,309) |
Note 7 - Net (Loss) Income Pe_3
Note 7 - Net (Loss) Income Per Common Share (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Dilutive Securities, Effect on Basic Earnings Per Share, Total | $ 0 | $ 0 | $ 0 | $ 0 |
Net Income (Loss) Attributable to Noncontrolling Interest, Total | $ (6,413) | $ 14,357 | $ (5,977) | $ 3,877 |
Note 7 - Net (Loss) Income Pe_4
Note 7 - Net (Loss) Income Per Common Share - Reconciliation of Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Net (loss) income attributable to Earthstone Energy, Inc. | $ (5,445) | $ 11,770 | $ (5,076) | $ 3,343 | |
Net (loss) income per common share attributable to Earthstone Energy, Inc.: | |||||
Basic (in dollars per share) | $ (0.18) | $ 0.41 | $ (0.17) | $ 0.12 | |
Diluted (in dollars per share) | $ (0.18) | $ 0.41 | $ (0.17) | $ 0.12 | |
Weighted average common shares outstanding: | |||||
Basic (in shares) | 30,073,635 | 29,032,842 | 29,810,705 | 28,883,907 | |
Add potentially dilutive securities: | |||||
Unvested restricted stock units (1) (in shares) | [1] | 0 | 0 | 0 | 0 |
Unvested performance units (1) (in shares) | [1] | 0 | 0 | 0 | 0 |
Diluted weighted average common shares outstanding (in shares) | 30,073,635 | 29,032,842 | 29,810,705 | 28,883,907 | |
[1] | For the three and nine months ended September 30, 2020 and 2019, the Company had no dilutive effect related to unvested restricted stock units or performance units as, under the treasury stock method, the proceeds from the average unrecognized expense for both during these periods were in excess of the weighted average outstanding fair value for the unvested shares for the same periods. |
Note 8 - Common Stock (Details
Note 8 - Common Stock (Details Textual) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020shares | Sep. 30, 2019shares | Sep. 30, 2020shares | Sep. 30, 2019shares | Dec. 31, 2019shares | |
Bold Contribution Agreement [Member] | Member Units [Member] | |||||
Stockholders Equity, Conversion Ratio | 1 | ||||
Common Class A [Member] | |||||
Common Stock, Shares, Issued, Total (in shares) | 30,210,749 | 30,210,749 | 29,421,131 | ||
Common Stock, Shares, Outstanding, Ending Balance (in shares) | 30,210,749 | 30,210,749 | 29,421,131 | ||
Common Class A [Member] | Bold Contribution Agreement [Member] | |||||
Stockholders Equity, Conversion Ratio | 1 | ||||
Common Class A [Member] | The 2014 Plan [Member] | |||||
Stock Issued During Period, Shares, New Issues (in shares) | 195,344 | 167,827 | 726,082 | 569,883 | |
Treasury Stock, Shares, Acquired (in shares) | 54,268 | 49,111 | 187,773 | 151,716 | |
Common Class B [Member] | |||||
Common Stock, Shares, Issued, Total (in shares) | 35,009,371 | 35,009,371 | 35,260,680 | ||
Stock Issued During Period, Shares, Conversion of Convertible Securities (in shares) | 49,316 | 35,732 | 251,309 | 35,732 | |
Common Stock, Shares, Outstanding, Ending Balance (in shares) | 35,009,371 | 35,009,371 | 35,260,680 |
Note 9 - Stock-based Compensa_3
Note 9 - Stock-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Millions | Jan. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 568,900 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ 5.86 | $ 5.86 | $ 6.60 | |||
Performance Stock Unit [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 1,043,800 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ 7.65 | $ 7.65 | $ 10.51 | |||
Long Term Incentive Plan 2014 [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 9,400,000 | 9,400,000 | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 5.4 | $ 5.4 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term (Year) | 10 months 6 days | |||||
Share-based Payment Arrangement, Expense | 1.2 | $ 1.4 | $ 4.2 | $ 4.5 | ||
Long Term Incentive Plan 2014 [Member] | Restricted Stock Units (RSUs) [Member] | Bold Contribution Agreement [Member] | Common Class A [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award Contingent Right to Receive Number of Shares of Common Stock Upon Vesting (in shares) | 1 | |||||
The 2014 Plan [Member] | Performance Stock Unit [Member] | ||||||
Share-based Payment Arrangement, Expense | $ 1.2 | $ 0.8 | $ 3.5 | $ 2.2 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 1,043,800 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.40% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 62.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ 5.36 | $ 5.36 | ||||
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 7.3 | $ 7.3 | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 11 months 23 days |
Note 9 - Stock-Based Compensa_4
Note 9 - Stock-Based Compensation - Summary of Unvested Award Activity (Details) | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Restricted Stock Units (RSUs) [Member] | |
Unvested (in shares) | shares | 1,107,796 |
Unvested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 6.60 |
Granted (in shares) | shares | 568,900 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | $ 5.15 |
Forfeited (in shares) | shares | (1,083) |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | $ 5.19 |
Vested (in shares) | shares | (726,082) |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 6.43 |
Unvested (in shares) | shares | 949,531 |
Unvested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 5.86 |
Performance Stock Unit [Member] | |
Unvested (in shares) | shares | 835,625 |
Unvested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 10.51 |
Granted (in shares) | shares | 1,043,800 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | $ 5.36 |
Unvested (in shares) | shares | 1,879,425 |
Unvested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 7.65 |
Note 9 - Stock-based Compensa_5
Note 9 - Stock-based Compensation - Schedule of Target Multipliers (Details) - Performance Stock Unit [Member] | 9 Months Ended |
Sep. 30, 2020 | |
TSR Range Two [Member] | |
Company's Annualized TSR | 1.00% |
TSR Range Three [Member] | |
Company's Annualized TSR | 0.50% |
Minimum [Member] | TSR Range One [Member] | |
Company's Annualized TSR | 2.00% |
Maximum [Member] | TSR Range Four [Member] | |
Company's Annualized TSR | 0.00% |
Note 10 - Long-term Debt (Detai
Note 10 - Long-term Debt (Details Textual) $ in Thousands | Sep. 28, 2020USD ($) | Mar. 27, 2020USD ($) | Nov. 21, 2019 | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | May 31, 2024USD ($) | May 31, 2023USD ($) | Mar. 31, 2020USD ($) | Mar. 26, 2020USD ($) | Dec. 31, 2019USD ($) |
Long-term Debt, Excluding Current Maturities, Total | $ 130,000 | $ 130,000 | $ 170,000 | |||||||||
Long-term Line of Credit, Total | $ 93,900 | 93,900 | ||||||||||
Repayments of Lines of Credit | $ 133,900 | |||||||||||
Long-term Debt, Weighted Average Interest Rate, over Time | 2.48% | 4.38% | 2.89% | 4.53% | ||||||||
Line of Credit Facility, Commitment Fee Amount | $ 200 | $ 200 | $ 500 | $ 500 | ||||||||
Amortization of Debt Issuance Costs | 100 | 100 | 241 | 336 | ||||||||
Interest Rate Swap [Member] | ||||||||||||
Derivative, Fixed Interest Rate | 0.286% | |||||||||||
Derivative, Notional Amount | $ 125,000 | |||||||||||
Interest Rate Swap [Member] | Forecast [Member] | ||||||||||||
Derivative, Notional Amount | $ 75,000 | $ 100,000 | ||||||||||
Earthstone Energy Holdings Credit Agreement [Member] | ||||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 240,000 | $ 275,000 | $ 325,000 | |||||||||
Line of Credit Facility Increase (Decrease) in Current Borrowing Base, Percent | 15.00% | |||||||||||
Line Of Credit Facility, Covenant Terms, Minimum Current Ratio | 1 | |||||||||||
Line Of Credit Facility, Covenant Terms, Maximum Leverage Ratio | 4 | |||||||||||
Long-term Debt, Excluding Current Maturities, Total | $ 130,000 | $ 130,000 | $ 170,000 | |||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 2.658% | 2.658% | ||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 110,000 | $ 110,000 | ||||||||||
Capitalized Deferred Finance Costs | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||
Earthstone Energy Holdings Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||||||
Earthstone Energy Holdings Credit Agreement [Member] | Fed Funds Effective Rate Overnight Index Swap Rate [Member] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||||||
Earthstone Energy Holdings Credit Agreement [Member] | Minimum [Member] | ||||||||||||
Debt Instrument, Increase (Decrease) in Interest Rate | 0.25% | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.375% | |||||||||||
Earthstone Energy Holdings Credit Agreement [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |||||||||||
Earthstone Energy Holdings Credit Agreement [Member] | Maximum [Member] | ||||||||||||
Debt Instrument, Increase (Decrease) in Interest Rate | 0.50% | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | |||||||||||
Earthstone Energy Holdings Credit Agreement [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.25% |
Note 11 - Asset Retirement Ob_3
Note 11 - Asset Retirement Obligations - Asset Retirement Obligation Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Beginning asset retirement obligations | $ 2,164 | |||
Liabilities incurred | 46 | |||
Accretion expense | $ 47 | $ 52 | 137 | $ 160 |
Divestitures | (10) | |||
Revision of estimates | (2) | |||
Ending asset retirement obligations | $ 2,335 | $ 2,335 |
Note 12 - Related Party Trans_2
Note 12 - Related Party Transactions (Details Textual) - USD ($) $ in Millions | Feb. 12, 2020 | Jun. 30, 2020 |
Related Party Transaction, Proceeds From Sale of Oil and Gas Leases | $ 0.4 | |
Majority Shareholder [Member] | ||
Related Party Transaction, Preliminary Reimbursement | $ 0.6 | |
Insurance Carrier [Member] | ||
Related Party Transaction, Preliminary Reimbursement | $ 0.6 |
Note 13 - Commitments and Con_2
Note 13 - Commitments and Contingencies (Details Textual) - Terms Sheet Settlement [Member] $ in Thousands | Sep. 21, 2020USD ($) |
Loss Contingency, All-in Cash Settlement Payment to Be Funded by Defendants And/Or Their Insurers Into an Escrow Account | $ 3,500 |
Loss Contingency, Percentage of Fund to Be Used Based on Management Duties and Business Judgment | 55.00% |
Loss Contingency, Percentage of Fund to Be Paid to Members of the Class or Current Stockholders of the Company out of the Escrow Account | 45.00% |
Loss Contingency, Expected Insurance Carries Reimbursement | $ 2,800 |
Loss Contingency, Expected Reimbursement From Related Affiliate | 100 |
Loss Contingency Accrual, Ending Balance | 3,750 |
Reimbursements from Insurance and Majority Shareholders [Member] | |
Loss Contingency, Receivable, Ending Balance | $ 5,700 |
Note 14 - Income Taxes (Details
Note 14 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Expense (Benefit), Total | $ 130 | $ 575 | $ 112 | $ 728 |
Deferred Income Tax Expense (Benefit), Total | 112 | 728 | ||
Earthstone Energy Holdings Limited Liability Company [Member] | ||||
Deferred Income Tax Expense (Benefit), Total | 100 | (600) | ||
Lynden USA Inc. [Member] | ||||
Income Tax Expense (Benefit), Total | $ (800) | (100) | ||
Deferred Income Tax Expense (Benefit), Total | $ 600 |
Note 15 - Goodwill (Details Tex
Note 15 - Goodwill (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 17,620 | $ 0 | |
Goodwill, Impaired, Accumulated Impairment Loss | $ 36,700 | $ 36,700 | $ 19,100 |