Earthstone Energy (ESTE) 10-Q 13 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 06, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Trading Symbol	ESTE
Entity Registrant Name	EARTHSTONE ENERGY INC
Entity Central Index Key	10,254
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		13,835,128

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 44,870	$ 100,447
Accounts receivable:
Oil, natural gas, and natural gas liquids revenues	15,010	14,016
Joint interest billings and other	3,903	9,417
Prepaid expenses and other current assets	1,176	1,578
Current derivative assets	600	3,569
Total current assets	65,559	129,027
Oil and gas properties, successful efforts method:
Proved properties	349,589	317,006
Unproved properties	81,704	76,791
Total oil and gas properties	431,293	393,797
Accumulated depreciation, depletion, and amortization	(103,551)	(97,920)
Net oil and gas properties	327,742	295,877
Other noncurrent assets:
Goodwill	22,992	22,992
Office and other equipment, less accumulated depreciation of $733 and $474 at June 30, 2015 and December 31, 2014	2,130	2,109
Land	101	101
Other noncurrent assets	1,252	1,282
TOTAL ASSETS	419,776	451,388
Current liabilities:
Accounts payable	21,806	28,753
Accrued expenses	9,120	20,529
Revenues and royalties payable	14,421	17,364
Advances	13,810	21,398
Asset retirement obligations	350	408
Current derivative liability	15
Total current liabilities	59,522	88,452
Noncurrent liabilities:
Long-term debt	11,191	11,191
Asset retirement obligations	5,653	5,670
Deferred tax liability	28,387	29,258
Noncurrent derivative liabilities	97
Other noncurrent liabilities	260	289
Total noncurrent liabilities	45,588	46,408
Total liabilities	$ 105,110	$ 134,860
Commitments and Contingencies (Note 10)
Equity:
Preferred stock, $0.001 par value, 20,000,000 shares authorized; none issued or outstanding
Common stock, $0.001 par value, 100,000,000 shares authorized; 13,835,128 shares issued and outstanding at June 30, 2015 and December 31, 2014	$ 14	$ 14
Additional paid-in capital	358,086	358,086
Accumulated deficit	(42,974)	(41,112)
Treasury stock, 15,414 shares at June 30, 2015 and December 31, 2014	(460)	(460)
Total equity	314,666	316,528
TOTAL LIABILITIES AND EQUITY	$ 419,776	$ 451,388

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Statement Of Financial Position [Abstract]
Office and other equipment, accumulated depreciation	$ 733	$ 474
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	13,835,128	13,835,128
Common stock, shares outstanding	13,835,128	13,835,128
Treasury stock, shares	15,414	15,414

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Oil, natural gas, and natural gas liquids revenues:
Oil	$ 12,163	$ 8,508	$ 21,201	$ 16,376
Natural gas	1,982	2,593	3,512	5,346
Natural gas liquids	813	958	1,487	1,914
Total oil, natural gas, and natural gas liquids revenues	14,958	12,059	26,200	23,636
Gathering income	95	86	173	195
Gain on sales of oil and gas properties, net	1,680		1,680
Total revenues	16,733	12,145	28,053	23,831
Production costs:
Lease operating expense	4,239	2,376	8,613	4,674
Severance taxes	746	509	1,376	998
Re-engineering and workovers	167	121	286	319
Exploration expense	142		142
Depreciation, depletion, and amortization	8,674	4,383	14,598	7,763
General and administrative expense	2,484	1,802	5,055	3,214
Total operating costs and expenses	16,452	9,191	30,070	16,968
Income (loss) from operations	281	2,954	(2,017)	6,863
OTHER INCOME (EXPENSE)
Interest expense, net	(169)	(152)	(338)	(297)
Net loss on derivative contracts	(1,318)	(1,275)	(644)	(2,303)
Other income, net	163	3	257	7
Total other income (expense)	(1,324)	(1,424)	(725)	(2,593)
(Loss) income before income taxes	(1,043)	1,530	(2,742)	4,270
Income tax benefit	(295)		(880)
Net (loss) income	$ (748)	$ 1,530	$ (1,862)	$ 4,270
Net (loss) income per common share:
Basic	$ (0.05)	$ 0.17	$ (0.13)	$ 0.47
Diluted	$ (0.05)	$ 0.17	$ (0.13)	$ 0.47
Weighted average common shares outstanding:
Basic	13,835,128	9,124,452	13,835,128	9,124,452
Diluted	13,835,128	9,124,452	13,835,128	9,124,452

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net (loss) income	$ (1,862,000)	$ 4,270,000
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation, depletion, and amortization	14,598,000	7,763,000
Unrealized loss on derivative contracts	3,081,000	1,214,000
Accretion of asset retirement obligations	282,000	151,000
Deferred income taxes	(871,000)
Amortization of deferred financing costs	129,800	75,600
Settlement of asset retirement obligations	(46,000)	(31,000)
Gain on sale of assets	(1,680,000)
Changes in assets and liabilities:
Decrease (increase) in accounts receivable	4,397,000	(5,129,000)
Decrease (increase) in prepaid expenses and other	427,000	(450,000)
(Decrease) increase in accounts payable and accrued expenses	(18,356,000)	5,453,000
(Decrease) increase in revenue and royalties payable	(2,895,000)	7,382,000
(Decrease) increase in advances	(7,566,000)	15,441,000
Net cash (used in) provided by operating activities	(10,361,000)	36,140,000
Cash flows from investing activities:
Acquisitions of oil and gas property	(5,430,000)
Additions to oil and gas property and equipment	(42,888,000)	(29,197,000)
Additions to other property and equipment	(279,000)	(229,000)
Proceeds from sales of oil and gas properties	3,506,000
Net cash used in investing activities	(45,091,000)	(29,426,000)
Cash flows from financing activities:
Deferred financing costs	(125,000)	(102,000)
Net cash used in financing activities	(125,000)	(102,000)
Net (decrease) increase in cash and cash equivalents	(55,577,000)	6,612,000
Cash and cash equivalents at beginning of period	100,447,000	25,423,000
Cash and cash equivalents at end of period	44,870,000	32,035,000
Cash paid for:
Interest	175,000	221,000
Non-cash investing and financing activities:
Asset retirement obligations	$ 91,000	$ 29,000

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Basis of Presentation	Note 1. Basis of Presentation Earthstone Energy, Inc., a Delaware corporation (“Earthstone” or the “Company”) is an independent oil and gas exploration and production company engaged in the acquisition, development, exploration and production of onshore, unconventional reserves, with a current focus on the Eagle Ford trend of South Texas and the Bakken trend of North Dakota and Montana. The Company also has conventional wells in East Texas, South Texas and Oklahoma. The accompanying unaudited consolidated financial statements of Earthstone and our wholly-owned subsidiaries, which we refer to as “we,” “our” or “us,” have been prepared in accordance with Article 8-03 of Regulation S-X for interim financial statements required to be filed with the Securities and Exchange Commission (“SEC”). The information furnished herein reflects all adjustments that are, in the opinion of management, necessary for the fair presentation of the Company's Consolidated Balance Sheets as of June 30, 2015, and December 31, 2014; the Consolidated Statements of Operations for the three and six months ended June 30, 2015 and 2014; and the Consolidated Statements of Cash Flows for the six months ended June 30, 2015 and 2014. The Company’s balance sheet at December 31, 2014 is derived from the audited consolidated financial statements at that date. The preparation of financial statements in conformity with the generally accepted accounting principles of the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. For further information, see Note 2 in the Notes to Consolidated Financial Statements contained in our Annual Report on Form 10-K for the year ended December 31, 2014. Interim period results are not necessarily indicative of results of operations or cash flows for the full year and accordingly, certain information normally included in financial statements and the accompanying notes prepared in accordance with GAAP, has been condensed or omitted. These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, and the Company’s other filings with the SEC. The Company has evaluated events or transactions through the date of issuance of these unaudited consolidated financial statements. On December 19, 2014, the Company acquired three operating subsidiaries of Oak Valley Resources, LLC (“OVR”), in exchange for shares of Earthstone common stock (the “Exchange”), which resulted in a change of control of the Company. Pursuant to the Exchange Agreement, OVR contributed to Earthstone the membership interests of its three subsidiaries, Oak Valley Operating, LLC (“OVO”), EF Non-Op, LLC (“EF Non-Op”) and Sabine River Energy, LLC (“Sabine”), each a Texas limited liability company (collectively “Oak Valley”), in exchange for approximately 9.124 million shares, representing 84% of the Company’s common stock. The transaction was accounted for as a reverse acquisition whereby Oak Valley is considered the acquirer for accounting purposes. All historical financial information, prior to December 19, 2014, contained in this Quarterly Report on Form 10-Q is that of Oak Valley. Immediately following the Exchange, the Company, through its acquired wholly owned subsidiary, Sabine, acquired an additional 20% undivided ownership interest in certain crude oil and gas properties located in Fayette and Gonzales Counties, Texas, in exchange for the issuance of approximately 2.957 million shares of common stock (the “Contribution Agreement”) to Flatonia Energy, LLC, increasing the Company’s ownership in these properties from a 30% undivided ownership to a 50% undivided ownership interest. As a result of the share issuance to Flatonia, OVR’s ownership in the Company decreased from 84% to 66%. Recently Issued Accounting Standards Revenue Recognition - In May 2014, the Financial Accounting Standards Board (“FASB”) issued updated guidance for recognizing revenue from contracts with customers. The objective of this guidance is to establish principles for reporting information about the nature, timing, and uncertainty of revenue and cash flows arising from an entity’s contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and change in judgments, and assets recognized from the costs to obtain or fulfill a contract. In July 2015, the FASB deferred the effective date of the standards update for one year, to be effective for interim and annual period beginning after December 15, 2017; early adoption is allowed as of the original effective date of December 31, 2016. The Company will adopt this standards update, as required, beginning with the first quarter of 2018. The Company is in the process of evaluating the impact, if any, of the adoption of this guidance on its consolidated financial statements. Debt Issuance Costs – In April 2015, the FASB issued updated guidance which changes the presentation of debt issuance costs in the financial statements. Under this updated guidance, debt issuance costs are presented on the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. The standards update is effective for interim and annual periods beginning after December 15, 2015. The Company will adopt this standards update, as required, beginning with the first quarter of 2016 and will be retrospectively applied to all prior periods. The Company does not expect the adoption of this new presentation guidance to have a material impact on its consolidated balance sheets. Simplifying the Measurement of Inventory – In July 2015, the FASB issued updated guidance to simplify the measurement of inventory. Under this guidance, an entity should measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The standards update is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. This guidance should be applied prospectively and early adoption is permitted. We are in the process of evaluating the impact, if any, of the adoption of this guidance on our consolidated financial statements.

Acquisitions and Divestitures

Acquisitions and Divestitures	6 Months Ended
	Jun. 30, 2015
Business Combinations [Abstract]
Acquisitions and Divestitures	Note 2. Acquisitions and Divestitures Earthstone Energy Reverse Acquisition On December 19, 2014, the Company and OVR closed the Exchange. In this transaction, OVR contributed to the Company the membership interests of its three wholly-owned subsidiaries, which included producing assets, undeveloped acreage and cash. OVR received approximately 9.124 million shares of newly issued common stock, $0.001 par value per share (the “Common Stock”), of the Company. The Exchange resulted in a change of control of the Company. The Exchange has been accounted in accordance with FASB Accounting Standards Codification (“ASC”) An allocation of the purchase price was prepared using, among other things, the 2014 year-end reserve report prepared by Cawley, Gillespie and Associates, Inc. that was adjusted and re-priced by the Company’s reserve engineering staff back to the December 19, 2014 acquisition date. The following allocation is still preliminary with respect to final tax amounts, pending the completion of the 2014 Earthstone tax return and certain accruals and includes the use of estimates based on information that was available to management at the time these consolidated financial statements were prepared. Additional changes to the purchase price allocation may result in a corresponding change to goodwill in the period of the change. The following table summarizes the consideration paid to acquire the legacy Earthstone net assets and the estimated values of those net assets ( in thousands, except share and share price amounts Shares of Common Stock outstanding before the Exchange 1,734,988 Company director and officer restricted shares that vested in the Exchange 18,400 Shares of Common Stock issued in the Exchange 9,124,452 Total shares of Common Stock outstanding following the Exchange 10,877,840 Shares of Common Stock issued as consideration 1,753,388 Closing price of Common Stock (1) $ 19.08 Total purchase price $ 33,455 Estimated Fair Value of Liabilities Assumed: Current liabilities $ 7,852 Long-term debt 7,000 Deferred tax liability (2) 2,880 Asset retirement obligation 2,227 Amount attributable to liabilities assumed 19,959 Total purchase price plus liabilities assumed $ 53,414 Estimated Fair Value of Assets Acquired: Cash (3) $ 2,920 Other current assets 3,466 Proved oil and natural gas properties (4) (5) 21,813 Unproved oil and natural gas properties 5,524 Other non-current assets 745 Amount attributable to assets acquired $ 34,468 Goodwill (6) $ 18,946 (1) The share price used for the determination of the purchase price was $19.08, which was the closing price of the Common Stock on December 19, 2014. (2) This amount represents the recorded book value versus tax value difference in oil and natural gas properties and other net assets as of the date of the Exchange on a tax effected basis of approximately 35%. The tax basis of the legacy Earthstone assets were not adjusted in the Exchange. As noted above, however, ASC 805 requires that the Company in a reverse acquisition record the legacy Earthstone net assets at fair value on the date of the Exchange; the fair value of the net assets was in excess of the tax basis and as such required the recognition of a deferred tax liability. (3) The components of cash flow in the Exchange in which the legacy Earthstone assets were acquired were $7.1 million in notes payable and accrued interest that was paid in full in conjunction with the Exchange less the cash acquired of $2.9 million. (4) The weighted average commodity prices utilized in the determination of the fair value of oil and natural gas properties were $51.62 per barrel of oil and $4.58 per Mcf of natural gas after adjustments for transportation fees and regional price differentials. (5) The market assumptions as to the future commodity prices, projections of estimated quantities of oil and natural gas reserves, expectations for timing and amount of the future development and operating costs, projections of future rates of production, expected recovery rate and risk adjusted discount rates used by the Company to estimate the fair value of the oil and natural gas properties represent Level 3 inputs; see Note 4 Fair Value Measurements (6) Goodwill was determined to be the excess consideration exchanged over the fair value of the Company’s net assets on December 19, 2014. The goodwill recognized will not be deductible for tax purposes. 2014 Eagle Ford Acquisition Properties Also on December 19, 2014, immediately following the Exchange, Flatonia Energy, LLC (“Flatonia”), Parallel Resource Partners, LLC (“Parallel”), and Sabine, closed the transactions contemplated by the Contribution Agreement by and among the Company, OVR, Sabine, Oak Valley Operating, LLC, Parallel, and Flatonia, whereby Parallel contributed 28.57% of the oil and natural gas property interests held by Flatonia, a wholly owned subsidiary of Parallel, in consideration for approximately 2.96 million shares of Common Stock (the “Contribution”). The assets subject to the Contribution Agreement were oil and natural gas property interests in producing wells and acreage in the Eagle Ford trend of Texas (the “2014 Eagle Ford Acquisition Propertie s An allocation of the purchase price was prepared using, the 2014 year-end reserve report prepared by Cawley, Gillespie and Associates, Inc. that was adjusted and re-priced by the Company’s reserve engineering staff back to December 19, 2014. The following allocation is still preliminary with respect to final tax amounts, pending the completion of the 2014 Flatonia tax return and certain accruals and it includes the use of estimates based on information that was available to management at the time these audited consolidated financial statements were prepared. The Company’s final allocation of purchase price is dependent on the seller’s tax return since Earthstone received carryover basis on Flatonia’s assets and liabilities because the Contribution Agreement was not a taxable transaction under the United States Internal Revenue Code of 1986, as amended. Additional changes to the purchase price allocation may result in a corresponding change to goodwill in the period of the change. The following table summarizes the consideration paid to acquire the 2014 Eagle Ford Acquisition Properties and the estimated values of those net assets ( in thousands, except share and share price amounts Shares of Common Stock issued as consideration in the Contribution 2,957,288 Closing price of Common Stock (1) $ 19.08 Total purchase price $ 56,425 Estimated Fair Value of Liabilities Assumed: Deferred tax liability (2) $ 4,046 Asset retirement obligation 173 Amount attributable to liabilities assumed 4,219 Total purchase price plus liabilities assumed $ 60,644 Estimated Fair Value of Assets Acquired: Proved oil and natural gas properties (3) (4) $ 34,745 Unproved oil and natural gas properties 21,853 Amount attributable to assets acquired $ 56,598 Goodwill (5) $ 4,046 (1) The share price used for the determination of the purchase price was $19.08, which was the closing price of the Common Stock on December 19, 2014. (2) This amount represents the recorded book value to tax difference in the oil and natural gas properties as of the date of the Contribution Agreement on a tax effected basis of approximately 34%. As noted above, the Company received the net assets at Flatonia’s carryover tax basis and as such requires the recognition of a deferred tax liability. (3) The weighted average commodity prices utilized in the determination of the fair value of oil and natural gas properties was $56.36 per barrel of oil and $3.36 per Mcf of natural gas after adjustments for transportation fees and regional price differentials. (4) The market assumptions as to the future commodity prices, projections of estimated quantities of oil and natural gas reserves, expectations for timing and amount of the future development and operating costs, projecting of future rates of production, expected recovery rate and risk adjusted discount rates used by the Company to estimate the fair value of the oil and natural gas properties represent Level 3 inputs; see Note 4 Fair Value Measurements, (5) Goodwill was determined to be the excess consideration exchanged over the fair value of the 2014 Eagle Ford Acquisition Properties on December 19, 2014. The goodwill recognized will not be deductible for tax purposes. The following unaudited supplemental pro forma combined condensed results of operations present consolidated information as though the Exchange and Contribution had been completed as of January 1, 2014. These unaudited supplemental pro forma results of operations are provided for illustrative purposes only and do not purport to be indicative of the actual results that would have been achieved by the combined company for the periods presented or that may be achieved by the combined company in the future. The pro forma results of operations do not include any cost savings or other synergies that resulted, or may result, from the Exchange or Contribution or any estimated costs that will be incurred to integrate the legacy Earthstone net assets and the 2014 Eagle Ford Acquisition Properties. Future results may vary significantly from the results reflected in this unaudited pro forma financial information ( in thousands, except per share amounts Three months ended June 30, Six months ended June 30, 2014 2014 (Unaudited) Revenue $ 22,898 $ 42,961 Income before taxes $ 8,264 $ 15,834 Net income available to Earthstone common stockholders $ 5,444 $ 10,424 Pro forma net income per common share: Basic and diluted $ 0.39 $ 0.76 For the three and six months ended June 30, 2015, the Company recognized $2.6 million and $5.3 million, respectively, of oil, natural gas and natural gas liquids sales related to the legacy Earthstone assets and operating expenses including depletion of $2.9 million and $5.9 million, respectively. There were no non-recurring transaction costs related to this acquisition incurred during the three and six months ended June 30, 2015. For the three and six months ended June 30, 2015, the Company recognized $4.1 million and $6.6 million, respectively, of oil, natural gas and natural gas liquids related to the 2014 Eagle Ford Acquisition Properties and operating expenses including depletion of $3.1 million and $5.4 million, respectively. There were no non-recurring transaction costs related to this acquisition incurred during the three and six months ended June 30, 2015. Other Acquisitions In June 2015, the Company acquired a 50% operated interest in two gross Austin Chalk wells, which hold approximately 970 gross acres in southern Gonzales County, Texas. The acreage, acquired for future Eagle Ford development, is 100% held-by-production, with current gross production of 44 barrels of oil equivalent per day (“BOEPD”) all of which was oil. Also during June 2015, the Company acquired additional acreage in northern Karnes County, Texas, increasing its total leasehold position to approximately 404 gross acres. The Company currently has a 33% working interest in the Karnes acreage. These two positions are adjacent to one another and will provide for 17 gross Eagle Ford locations with expected development beginning in the fourth quarter of 2015. The following table summarizes the consideration paid to acquire the properties and the estimated fair values of the assets acquired and liabilities assumed (in thousands) Purchase price $ 4,066 Estimated fair value of assets acquired: Proved oil and natural gas properties $ 588 Unproved oil and natural gas properties 3,496 Total assets acquired $ 4,084 Estimated fair value of liabilities assumed: Asset retirement obligations $ 13 Other liabilities 5 Total liabilities assumed $ 18 Consideration paid $ 4,066 Pro forma financial information, assuming the acquisition occurred at the beginning of each period presented, has not been presented because the effect on the Company’s results for each of those periods is not material. The results of the above acquisitions have been included in the Company’s consolidated financials since the date of each acquisition. In June 2015, the Company acquired additional acreage in existing Bakken spacing units primarily located in the Banks Field of McKenzie County, North Dakota, for $1.4 million. The acquisition included 164 net acres which will allow us to increase our working interest in approximately 41 producing wells and 21 wells that are drilling or in the process of completing. Divestitures In April 2015, the Company sold its Louisiana properties located primarily in DeSoto and Caddo Parishes for cash consideration of $3.5 million. The Company recorded a gain of $1.7 million on the sale. The effective date of the transaction was March 1, 2015.

Derivative Financial Instrument

Derivative Financial Instruments	6 Months Ended
	Jun. 30, 2015
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	Note 3. Derivative Financial Instruments The Company is exposed to certain risks relating to its ongoing business operations, such as commodity price risk. Derivative contracts are utilized to economically hedge the Company’s exposure to price fluctuations and reduce the variability in the Company’s cash flows associated with anticipated sales of future oil and natural gas production. The Company follows FASB ASC Topic 815 Derivatives and Hedging It is the Company’s policy to enter into derivative contracts only with counterparties that are creditworthy financial institutions deemed by management as competent and competitive. The counterparties to the Company’s current derivative contracts are lenders in the Company’s credit agreement, which is described in Note 6 Long-Term Debt The Company’s crude oil and natural gas derivative positions consist of swaps. Swaps are designed so that the Company receives or makes payments based on a differential between fixed and variable prices for crude oil and natural gas. The Company has elected to not designate any of its derivative contracts for hedge accounting. Accordingly, the Company records the net change in the mark-to-market valuation of these derivative contracts, as well as all payments and receipts on settled derivative contracts, in “ Net loss on derivative contracts With an individual derivative counterparty, the Company may have multiple hedge positions that expire at various points in the future and result in fair value asset and liability positions. At the end of each reporting period, those positions are offset to a single fair value asset or liability for each commodity per counter party, and the netted balance is reflected in the Company’s Consolidated Balance Sheets as an asset or a liability. The Company nets its derivative instrument fair value amounts executed with the same 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 derivative contracts as of June 30, 2015: Period Instrument Commodity Volume in Bbls Fixed Price July 2015 - December 2015 Swap Crude Oil 33,000 $ 95.10 July 2015 - March 2016 Swap Crude Oil 45,000 $ 57.00 July 2015 - June 2016 Swap Crude Oil 120,000 $ 58.00 July 2015 - December 2016 Swap Crude Oil 90,000 $ 60.80 July 2015 - December 2016 Swap Crude Oil 90,000 $ 60.80 The following table summarizes the location and fair value amounts of all derivative instruments in the Consolidated Balance Sheets as well as the gross recognized derivative assets, liabilities, and amounts offset in the Consolidated Balance Sheets (in thousands) June 30, 2015 December 31, 2014 Derivatives not designated as hedging contracts under ASC Topic 815 Balance Sheet Location Gross Recognized Assets / Liabilities Gross Amounts Offset Net Recognized Assets / Liabilities Gross Recognized Assets / Liabilities Gross Amounts Offset Net Recognized Assets / Liabilities Commodity contracts Current derivative assets $ 1,144 $ (544 ) $ 600 $ 3,569 $ — $ 3,569 Commodity contracts Current derivative liabilities $ (559 ) $ 544 $ (15 ) $ — $ — $ — Commodity contracts Noncurrent derivative liabilities $ (97 ) $ — $ (97 ) $ — $ — $ — The follow table summarizes the location and amounts of the Company’s realized and unrealized gains and losses on derivative instruments in the Company’s Consolidated Statements of Operations (in thousands) Three months ended June 30, Six months ended June 30, Derivatives not designated as hedging contracts under ASC Topic 815 Statement of Operations Location 2015 2014 2015 2014 Unrealized gain (loss) on commodity contracts Net loss on derivative contracts $ (2,261 ) $ (725 ) $ (3,081 ) $ (1,214 ) Realized gain (loss) on commodity contracts Net loss on derivative contracts $ 943 $ (550 ) $ 2,437 $ (1,089 ) $ (1,318 ) $ (1,275 ) $ (644 ) $ (2,303 )

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 4. Fair Value Measurements FASB ASC Topic 820, Fair Value Measurements and Disclosure (“ASC Topic 820”) The three-level fair value hierarchy for disclosure of fair value measurements defined by 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, 2015. Fair Value on a Recurring Basis Derivative financial instruments are carried at fair value and measured on a recurring basis. The derivative financial instruments consist of swaps for crude oil and natural gas. The Company’s swaps are valued based on a discounted future cash flow model. The primary input for the model is published forward commodity price curves. The Company’s model is validated by the counterparty’s marked-to-market statements. The swaps are also designated as Level 2 within the valuation hierarchy. The fair values of commodity derivative instruments in an asset position include a measure of counterparty nonperformance risk, and the fair values of commodity derivative instruments in a liability position include a measure of the Company’s nonperformance risk. These measurements were not material to the consolidated financial statements. The following table summarizes the fair value of the Company’s financial assets and liabilities, by level within the fair-value hierarchy (in thousands) June 30, 2015 Level 1 Level 2 Level 3 Total Financial assets Current derivative assets $ — $ 600 $ — $ 600 Total financial assets $ — $ 600 $ — $ 600 Financial liabilities Current derivative liabilities $ — $ 15 $ — $ 15 Noncurrent derivative liabilities $ — $ 97 $ — $ 97 Total financial liabilities $ — $ 112 $ — $ 112 December 31, 2014 Financial assets Current derivative assets $ — $ 3,569 $ — $ 3,569 Total financial assets $ — $ 3,569 $ — $ 3,569 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 Asset Impairment Oil and natural gas properties are measured at fair value on a nonrecurring basis. An impairment charge reduces the carrying values of oil and natural gas properties’ 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 natural 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. The Company did not recognize any impairment write-downs with respect to its oil and natural gas properties during the six months ended June 30, 2015 or 2014. Business Combinations The Company records the identifiable assets acquired and liabilities assumed at fair value at the date of acquisition on a nonrecurring basis. Fair value may be estimated using comparable market data, a discounted cash flow method, or a combination of the two. In the discounted cash flow method, estimated future cash flows are based on management’s expectations for the future and include estimates of future oil and gas production, commodity prices based on NYMEX commodity futures price strips as of the date of the estimate, operating and development costs, and a risk-adjusted discount rate. The future oil and natural gas pricing used in the valuation is a Level 2 assumption. Significant Level 3 assumptions associated with the calculation of discounted cash flows used in the determination of fair value of the acquisition include the Company’s estimate operating and development costs, anticipated production of proved reserves, appropriate risk-adjusted discount rates and other relevant data. The Company’s acquisitions are discussed in Note 2 Acquisitions Asset Retirement Obligations The asset retirement obligation estimates are derived from historical costs and management’s expectation of future cost environments; and therefore, the Company has designated these liabilities as Level 3. The significant inputs to this fair value measurement include estimates of plugging, abandonment and remediation costs, well life, inflation and credit-adjusted risk free rate. See Note 7 Asset Retirement Obligations

Earnings (Loss) Per Common Shar

Earnings (Loss) Per Common Share	6 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
Earnings (Loss) Per Common Share	Note 5. Earnings (Loss) Per Common Share Basic earnings (loss) per share is computed by dividing net income (loss) attributable to shares of Common Stock by the basic weighted-average shares of Common Stock outstanding during the period. The calculation of diluted earnings per share is similar to basic, except the denominator includes the effect of dilutive common stock equivalents. The following table is a reconciliation of net (loss) income and weighted-average shares of Common Stock outstanding for purposes of calculating basic and diluted (loss) income per share: Three months ended June 30, Six months ended June 30, (In thousands, except share and per share amounts) 2015 2014 2015 2014 Net (loss) income $ (748 ) $ 1,530 $ (1,862 ) $ 4,270 Weighted average common shares outstanding: Basic 13,835,128 9,124,452 13,835,128 9,124,452 Diluted 13,835,128 9,124,452 13,835,128 9,124,452 Net (loss) income per share: Basic $ (0.05 ) $ 0.17 $ (0.13 ) $ 0.47 Diluted $ (0.05 ) $ 0.17 $ (0.13 ) $ 0.47

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Long-Term Debt	Note 6. Long-Term Debt On December 19, 2014, the Company entered into a credit agreement providing for a $500.0 million four-year senior secured revolving credit facility (the “ESTE Credit Facility”). The OVR credit facility was refinanced under the ESTE Credit Facility and the legacy credit facility of the Company was paid in full and terminated. The initial borrowing base of the ESTE Credit Facility was $80.0 million and is subject to redetermination during May and November of each year. On May 14, 2015, the $80.0 million borrowing base was reaffirmed. At the option of the borrower, the amounts borrowed under the credit agreement bear annual interest rates at either (a) LIBOR plus the applicable utilization margin of 1.50% to 2.50% (1.687% at June 30, 2015) or (b) the base rate plus the applicable utilization margin of 0.50% to 1.50% (3.75% at June 30, 2015). Principal amounts outstanding under the ESTE Credit Facility are due and payable in full at maturity on December 19, 2018. All of the obligations under the credit agreement, and the guarantees of those obligations, are secured by substantially all of the Company’s assets. Additional payments due under the credit agreement include paying a commitment fee to the Lender in respect of the unutilized commitments thereunder. The commitment fee ranges from 0.375% to 0.50% per year, depending upon the unutilized portion of the borrowing base in effect from time to time. The Company is also required to pay customary letter of credit fees. As of June 30, 2015, the Company had $11.2 million of debt outstanding, bearing an interest rate of 1.687%, $0.3 million of letters of credit outstanding and $68.5 million of borrowing base available under its ESTE Credit Facility. The ESTE Credit Facility contains a number of customary covenants that, among other things, restrict, subject to certain exceptions, the Company’s ability to incur additional indebtedness, create liens on asset, pay dividends, and repurchase its capital stock. In addition, the Company is required to maintain certain financial ratios, including a minimum modified current ratio which includes the available borrowing base of 1.0 to 1.0 and a maximum annualized quarterly leverage ratio of 4.0 to 1.0. The Company is also required to submit an audited annual report 120 days after the end of each fiscal period. As of June 30, 2015, the Company was in compliance with these covenants. Interest expense for the three months ended June 30, 2015 and 2014, includes amortization of deferred financing costs of $64,900 and $37,800, respectively. Interest expense for the six months ended June 30, 2015 and 2014, includes amortization of deferred financing costs of $129,800 and $75,600, respectively. Approximately $1.0 million, net of amortization, associated with the Company’s credit facilities have been capitalized as of June 30, 2015 and December 31, 2014, and was being amortized over the terms of the credit agreements.

Asset Retirement Obligations

Asset Retirement Obligations	6 Months Ended
	Jun. 30, 2015
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligations	Note 7. Asset Retirement Obligations The Company has asset retirement obligations associated with the future plugging and abandonment of oil and natural gas properties and related facilities. The accretion of the asset retirement obligation is included in “Lease operating expense” in the Consolidated Statements of Operations. 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, 2015, and in accordance with the provisions of FASB ASC Topic 410, Asset Retirement and Environmental Obligations (in thousands) 2015 Asset retirement obligations at December 31, 2014 $ 6,078 Liabilities incurred 91 Accretion expense 282 Property dispositions (403 ) Liabilities settled (46 ) Revision of estimates 1 Asset retirement obligations at June 30, 2015 $ 6,003 Based on expected timing of settlement, $0.4 million of the asset retirement obligation is classified as current at June 30, 2015.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2015
Related Party Transactions [Abstract]
Related Party Transactions	Note 8. Related Party Transactions FASB ASC Topic 850 , Related Party Disclosures ) The Company employs members of OVM. For the three months ended June 30, 2015 and 2014, the Company made payments totaling $0.7 million and $0.7 million, respectively, to these members as compensation for services and reimbursement of expenses. For the six months ended June 30, 2015 and 2014, the Company made payments totaling $2.2 million and $2.1 million, respectively, to these members as compensation for services and reimbursement of expenses. The payments are included in “ General and administrative expense At June 30, 2015 and December 31, 2014, the Company had a liability of $0.1 million and $2.3 million, respectively, due to companies to which certain members of OVR are significant related parties. These amounts are included in “ Accounts payable

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	Note 9. Income Taxes For the three and six months ended June 30, 2015, the Company recorded an income tax benefit of $0.3 million and $0.9 million, respectively, all of which was deferred. The Company’s effective tax rate for the three and six months ended June 30, 2015 was 28% and 32%, respectively, which is approximately 3% lower than the U.S. Federal statutory corporate income tax rate of 34% due to certain permanent differences. The effective tax rate also includes approximately 0.7% of the estimated portion of the Company’s income that is subject to income tax in the states in which the Company operates. The Company did not record any tax provision for income tax in the three or months ended June 30, 2014 because OVR is a partnership and is not subject to taxation. As explained in Note 1 Basis of Presentation The Company provides for deferred income taxes on the difference between the tax basis of an asset or liability and its carrying amount in the financial statements in accordance with guidance in ASC Topic 740. This difference will result in taxable income or deductions in future years when the reported amount of the asset or liability is recovered or settled, respectively. In recording deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred income tax asset will be realized. The ultimate realization of deferred income tax assets, if any, is dependent upon the generation of future taxable income during the periods in which those deferred income tax assets would be deductible.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 10. Commitments and Contingencies In the course of its business affairs and operations, the Company is subject to possible loss contingencies arising from federal, state, and local environmental, health and safety laws and regulations and third party litigation. Commitments In 2014, the Company entered into an 18 month drilling contract to utilize a new-build drilling rig in its drilling operations. The new rig is an upgrade and replacement of a rig with a drilling contract that was expiring. The contract provides for a daily drilling rate of approximately $29,000. In April 2015, the Company took delivery of the rig and commenced drilling. As of June 30, 2015, the minimum commitment per the terms of the agreement is approximately $13.2 million through the end of 2016. Further, in the event the Company breaks the contract and surrenders the rig, the contract provides for lump sum liquidated damages equal to approximately $20,000 per day through the end of the contract term. As of June 30, 2015 the liquidated damages amount is approximately $9.1 million. As a part of the 2013 Eagle Ford Acquisition, the Company and its working interest partner in the area ratified several long-term natural gas purchasing and natural gas processing contracts. As is customary in the industry, the Company has reserved gathering and processing capacity in a pipeline. In one of the contracts, the Company and its working interest partner have a volume commitment, whereby the owner of the pipeline is paid a fee of $0.45 per MMBtu to hold 10,000 MMBtu per day of capacity. Since the time of the acquisition, the volume commitment has not been met. The rate and terms under this purchasing and processing contract expire on June 1, 2021. As of June 30, 2015, the Company’s share of the remaining commitment on this contract is approximately $4.9 million. Contingencies Environmental The Company’s operations are subject to risks normally associated with the exploration for and the production of oil and natural gas, including blowouts, fires, and environmental risks such as oil spills or natural gas leaks that could expose the Company to liabilities associated with these risks. In the Company’s acquisition of existing or previously drilled well bores, the Company may not be aware of prior environmental safeguards, if any, that were taken at the time such wells were drilled or during such time the wells were operated. The Company maintains comprehensive insurance coverage that it believes is adequate to mitigate the risk of any adverse financial effects associated with these risks. However, should it be determined that a liability exists with respect to any environmental cleanup or restoration, the liability to cure such a violation could still fall upon the Company. No claim has been made, nor is the Company aware of any liability which the Company may have, as it relates to any environmental cleanup, restoration, or the violation of any rules or regulations relating thereto except for the matter discussed above. Legal From time to time, the Company may be involved in various legal proceedings and claims in the ordinary course of business. In July 2015, EF Non-Op, LLC, a subsidiary of the Company, filed suit in the 125 th EF Non-Op, LLC vs. BHP Billiton Petroleum Properties (N.A.), LP (F/K/A Petrohawk Properties, LP)

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Recently Issued Accounting Standards	Recently Issued Accounting Standards Revenue Recognition - In May 2014, the Financial Accounting Standards Board (“FASB”) issued updated guidance for recognizing revenue from contracts with customers. The objective of this guidance is to establish principles for reporting information about the nature, timing, and uncertainty of revenue and cash flows arising from an entity’s contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and change in judgments, and assets recognized from the costs to obtain or fulfill a contract. In July 2015, the FASB deferred the effective date of the standards update for one year, to be effective for interim and annual period beginning after December 15, 2017; early adoption is allowed as of the original effective date of December 31, 2016. The Company will adopt this standards update, as required, beginning with the first quarter of 2018. The Company is in the process of evaluating the impact, if any, of the adoption of this guidance on its consolidated financial statements. Debt Issuance Costs – In April 2015, the FASB issued updated guidance which changes the presentation of debt issuance costs in the financial statements. Under this updated guidance, debt issuance costs are presented on the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. The standards update is effective for interim and annual periods beginning after December 15, 2015. The Company will adopt this standards update, as required, beginning with the first quarter of 2016 and will be retrospectively applied to all prior periods. The Company does not expect the adoption of this new presentation guidance to have a material impact on its consolidated balance sheets. Simplifying the Measurement of Inventory – In July 2015, the FASB issued updated guidance to simplify the measurement of inventory. Under this guidance, an entity should measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The standards update is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. This guidance should be applied prospectively and early adoption is permitted. We are in the process of evaluating the impact, if any, of the adoption of this guidance on our consolidated financial statements.

Acquisitions and Divestitures (

Acquisitions and Divestitures (Tables)	6 Months Ended
	Jun. 30, 2015
Earthstone Energy Reverse Acquisition [Member]
Business Acquisition [Line Items]
Schedule of Consideration Paid to Acquire Net Assets and Estimated Values of Net Assets	The following table summarizes the consideration paid to acquire the legacy Earthstone net assets and the estimated values of those net assets ( in thousands, except share and share price amounts Shares of Common Stock outstanding before the Exchange 1,734,988 Company director and officer restricted shares that vested in the Exchange 18,400 Shares of Common Stock issued in the Exchange 9,124,452 Total shares of Common Stock outstanding following the Exchange 10,877,840 Shares of Common Stock issued as consideration 1,753,388 Closing price of Common Stock (1) $ 19.08 Total purchase price $ 33,455 Estimated Fair Value of Liabilities Assumed: Current liabilities $ 7,852 Long-term debt 7,000 Deferred tax liability (2) 2,880 Asset retirement obligation 2,227 Amount attributable to liabilities assumed 19,959 Total purchase price plus liabilities assumed $ 53,414 Estimated Fair Value of Assets Acquired: Cash (3) $ 2,920 Other current assets 3,466 Proved oil and natural gas properties (4) (5) 21,813 Unproved oil and natural gas properties 5,524 Other non-current assets 745 Amount attributable to assets acquired $ 34,468 Goodwill (6) $ 18,946 (1) The share price used for the determination of the purchase price was $19.08, which was the closing price of the Common Stock on December 19, 2014. (2) This amount represents the recorded book value versus tax value difference in oil and natural gas properties and other net assets as of the date of the Exchange on a tax effected basis of approximately 35%. The tax basis of the legacy Earthstone assets were not adjusted in the Exchange. As noted above, however, ASC 805 requires that the Company in a reverse acquisition record the legacy Earthstone net assets at fair value on the date of the Exchange; the fair value of the net assets was in excess of the tax basis and as such required the recognition of a deferred tax liability. (3) The components of cash flow in the Exchange in which the legacy Earthstone assets were acquired were $7.1 million in notes payable and accrued interest that was paid in full in conjunction with the Exchange less the cash acquired of $2.9 million. (4) The weighted average commodity prices utilized in the determination of the fair value of oil and natural gas properties were $51.62 per barrel of oil and $4.58 per Mcf of natural gas after adjustments for transportation fees and regional price differentials. (5) The market assumptions as to the future commodity prices, projections of estimated quantities of oil and natural gas reserves, expectations for timing and amount of the future development and operating costs, projections of future rates of production, expected recovery rate and risk adjusted discount rates used by the Company to estimate the fair value of the oil and natural gas properties represent Level 3 inputs; see Note 4 Fair Value Measurements (6) Goodwill was determined to be the excess consideration exchanged over the fair value of the Company’s net assets on December 19, 2014. The goodwill recognized will not be deductible for tax purposes.
2014 Eagle Ford Properties [Member]
Business Acquisition [Line Items]
Schedule of Consideration Paid to Acquire Net Assets and Estimated Values of Net Assets	The following table summarizes the consideration paid to acquire the 2014 Eagle Ford Acquisition Properties and the estimated values of those net assets ( in thousands, except share and share price amounts Shares of Common Stock issued as consideration in the Contribution 2,957,288 Closing price of Common Stock (1) $ 19.08 Total purchase price $ 56,425 Estimated Fair Value of Liabilities Assumed: Deferred tax liability (2) $ 4,046 Asset retirement obligation 173 Amount attributable to liabilities assumed 4,219 Total purchase price plus liabilities assumed $ 60,644 Estimated Fair Value of Assets Acquired: Proved oil and natural gas properties (3) (4) $ 34,745 Unproved oil and natural gas properties 21,853 Amount attributable to assets acquired $ 56,598 Goodwill (5) $ 4,046 (1) The share price used for the determination of the purchase price was $19.08, which was the closing price of the Common Stock on December 19, 2014. (2) This amount represents the recorded book value to tax difference in the oil and natural gas properties as of the date of the Contribution Agreement on a tax effected basis of approximately 34%. As noted above, the Company received the net assets at Flatonia’s carryover tax basis and as such requires the recognition of a deferred tax liability. (3) The weighted average commodity prices utilized in the determination of the fair value of oil and natural gas properties was $56.36 per barrel of oil and $3.36 per Mcf of natural gas after adjustments for transportation fees and regional price differentials. (4) The market assumptions as to the future commodity prices, projections of estimated quantities of oil and natural gas reserves, expectations for timing and amount of the future development and operating costs, projecting of future rates of production, expected recovery rate and risk adjusted discount rates used by the Company to estimate the fair value of the oil and natural gas properties represent Level 3 inputs; see Note 4 Fair Value Measurements, (5) Goodwill was determined to be the excess consideration exchanged over the fair value of the 2014 Eagle Ford Acquisition Properties on December 19, 2014. The goodwill recognized will not be deductible for tax purposes.
Schedule of Unaudited Pro forma Revenues and Expenses of Assets Acquired and Liabilities Assumed	The following unaudited supplemental pro forma combined condensed results of operations present consolidated information as though the Exchange and Contribution had been completed as of January 1, 2014. These unaudited supplemental pro forma results of operations are provided for illustrative purposes only and do not purport to be indicative of the actual results that would have been achieved by the combined company for the periods presented or that may be achieved by the combined company in the future. The pro forma results of operations do not include any cost savings or other synergies that resulted, or may result, from the Exchange or Contribution or any estimated costs that will be incurred to integrate the legacy Earthstone net assets and the 2014 Eagle Ford Acquisition Properties. Future results may vary significantly from the results reflected in this unaudited pro forma financial information ( in thousands, except per share amounts Three months ended June 30, Six months ended June 30, 2014 2014 (Unaudited) Revenue $ 22,898 $ 42,961 Income before taxes $ 8,264 $ 15,834 Net income available to Earthstone common stockholders $ 5,444 $ 10,424 Pro forma net income per common share: Basic and diluted $ 0.39 $ 0.76
Other Acquisitions [Member]
Business Acquisition [Line Items]
Schedule of Consideration Paid to Acquire Net Assets and Estimated Values of Net Assets	The following table summarizes the consideration paid to acquire the properties and the estimated fair values of the assets acquired and liabilities assumed (in thousands) Purchase price $ 4,066 Estimated fair value of assets acquired: Proved oil and natural gas properties $ 588 Unproved oil and natural gas properties 3,496 Total assets acquired $ 4,084 Estimated fair value of liabilities assumed: Asset retirement obligations $ 13 Other liabilities 5 Total liabilities assumed $ 18 Consideration paid $ 4,066

Derivative Financial Instrume18

Derivative Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2015
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Schedule of Outstanding Commodity Derivative Instruments	The Company had the following open crude oil derivative contracts as of June 30, 2015: Period Instrument Commodity Volume in Bbls Fixed Price July 2015 - December 2015 Swap Crude Oil 33,000 $ 95.10 July 2015 - March 2016 Swap Crude Oil 45,000 $ 57.00 July 2015 - June 2016 Swap Crude Oil 120,000 $ 58.00 July 2015 - December 2016 Swap Crude Oil 90,000 $ 60.80 July 2015 - December 2016 Swap Crude Oil 90,000 $ 60.80
Summary of Gross and Net Information about Commodity Derivative Instruments	The following table summarizes the location and fair value amounts of all derivative instruments in the Consolidated Balance Sheets as well as the gross recognized derivative assets, liabilities, and amounts offset in the Consolidated Balance Sheets (in thousands) June 30, 2015 December 31, 2014 Derivatives not designated as hedging contracts under ASC Topic 815 Balance Sheet Location Gross Recognized Assets / Liabilities Gross Amounts Offset Net Recognized Assets / Liabilities Gross Recognized Assets / Liabilities Gross Amounts Offset Net Recognized Assets / Liabilities Commodity contracts Current derivative assets $ 1,144 $ (544 ) $ 600 $ 3,569 $ — $ 3,569 Commodity contracts Current derivative liabilities $ (559 ) $ 544 $ (15 ) $ — $ — $ — Commodity contracts Noncurrent derivative liabilities $ (97 ) $ — $ (97 ) $ — $ — $ —
Realized and Unrealized Gains and Losses from Commodity Derivative Instruments	The follow table summarizes the location and amounts of the Company’s realized and unrealized gains and losses on derivative instruments in the Company’s Consolidated Statements of Operations (in thousands) Three months ended June 30, Six months ended June 30, Derivatives not designated as hedging contracts under ASC Topic 815 Statement of Operations Location 2015 2014 2015 2014 Unrealized gain (loss) on commodity contracts Net loss on derivative contracts $ (2,261 ) $ (725 ) $ (3,081 ) $ (1,214 ) Realized gain (loss) on commodity contracts Net loss on derivative contracts $ 943 $ (550 ) $ 2,437 $ (1,089 ) $ (1,318 ) $ (1,275 ) $ (644 ) $ (2,303 )

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2015
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, 2015 Level 1 Level 2 Level 3 Total Financial assets Current derivative assets $ — $ 600 $ — $ 600 Total financial assets $ — $ 600 $ — $ 600 Financial liabilities Current derivative liabilities $ — $ 15 $ — $ 15 Noncurrent derivative liabilities $ — $ 97 $ — $ 97 Total financial liabilities $ — $ 112 $ — $ 112 December 31, 2014 Financial assets Current derivative assets $ — $ 3,569 $ — $ 3,569 Total financial assets $ — $ 3,569 $ — $ 3,569

Earnings (Loss) Per Common Sh20

Earnings (Loss) Per Common Share (Tables)	6 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
Reconciliation of Net (Loss) Income and Weighted-Average Shares of Common Stock Outstanding for Calculating Basic and Diluted (Loss) Income Per Share	The following table is a reconciliation of net (loss) income and weighted-average shares of Common Stock outstanding for purposes of calculating basic and diluted (loss) income per share: Three months ended June 30, Six months ended June 30, (In thousands, except share and per share amounts) 2015 2014 2015 2014 Net (loss) income $ (748 ) $ 1,530 $ (1,862 ) $ 4,270 Weighted average common shares outstanding: Basic 13,835,128 9,124,452 13,835,128 9,124,452 Diluted 13,835,128 9,124,452 13,835,128 9,124,452 Net (loss) income per share: Basic $ (0.05 ) $ 0.17 $ (0.13 ) $ 0.47 Diluted $ (0.05 ) $ 0.17 $ (0.13 ) $ 0.47

Asset Retirement Obligations (T

Asset Retirement Obligations (Tables)	6 Months Ended
	Jun. 30, 2015
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, 2015, and in accordance with the provisions of FASB ASC Topic 410, Asset Retirement and Environmental Obligations (in thousands) 2015 Asset retirement obligations at December 31, 2014 $ 6,078 Liabilities incurred 91 Accretion expense 282 Property dispositions (403 ) Liabilities settled (46 ) Revision of estimates 1 Asset retirement obligations at June 30, 2015 $ 6,003

Basis of Presentation - Additio

Basis of Presentation - Additional Information (Details)	Dec. 19, 2014Subsidiaryshares	Jun. 30, 2015shares
Oak Valley Resources, LLC [Member]
Basis Of Presentation [Line Items]
Number of subsidiaries | Subsidiary	3
Common stock shares issued in exchange for acquisition	9,124,452
Percentage of common stock acquired	84.00%	66.00%
Flatonia Energy, LLC [Member]
Basis Of Presentation [Line Items]
Undivided ownership interest acquired percentage		20.00%
Common stock shares issued in exchange for acquisition		2,957,000
Undivided ownership interest percentage before acquisition		30.00%
Undivided ownership interest percentage after acquisition		50.00%

Acquisitions and Divestitures -

Acquisitions and Divestitures - Additional Information (Details)	Dec. 19, 2014USD ($)$ / sharesshares	Jun. 30, 2015USD ($)aBoeWellLocation	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Apr. 30, 2015USD ($)
Business Acquisition [Line Items]
Proceeds from sales of oil and gas properties					$ 3,506,000
General and administrative expense			$ 2,484,000	$ 1,802,000	$ 5,055,000	$ 3,214,000
Cash consideration							$ 3,500,000
Gain (loss) on sale of properties			1,700,000
Effective date of transaction					Mar. 1, 2015
Legacy Earthstone [Member]
Business Acquisition [Line Items]
Proceeds from sales of oil and gas properties			2,600,000		$ 5,300,000
Operating expenses including depletion			2,900,000		5,900,000
Legacy Earthstone [Member] | Non Recurring Transaction Costs [Member]
Business Acquisition [Line Items]
General and administrative expense			0		0
Earthstone Energy Reverse Acquisition [Member]
Business Acquisition [Line Items]
Common stock shares issued in exchange for acquisition | shares	9,124,000
Common stock, price per share | $ / shares	$ 0.001
2014 Eagle Ford Properties [Member]
Business Acquisition [Line Items]
Common stock shares issued in exchange for acquisition | shares	2,957,288
Percentage of oil and natural gas property interests held by a wholly owned subsidiary	28.57%
Proceeds from sales of oil and gas properties			4,100,000		6,600,000
Operating expenses including depletion			3,100,000		5,400,000
Cash consideration	$ 56,425,000
2014 Eagle Ford Properties [Member] | Non Recurring Transaction Costs [Member]
Business Acquisition [Line Items]
General and administrative expense			$ 0		$ 0
Acreage [Member]
Business Acquisition [Line Items]
Cash consideration		$ 4,066,000
Acreage [Member] | Austin Chalk Wells [Member]
Business Acquisition [Line Items]
Acquisition of operating interest		50.00%
Gross acres acquired | a		970
Number of wells acquired | Well		2
Percentage of acres held for production		100.00%
Gross production, barrels of oil equivalents per day | Boe		44
Acreage [Member] | Northern Kames County [Member]
Business Acquisition [Line Items]
Gross acres acquired | a		404
Acquisition of working interest		33.00%
Number of locations for eagle ford with expected development | Location		17
Acreage [Member] | Banks Field of McKenzie County [Member]
Business Acquisition [Line Items]
Number of wells acquired | Well		41
Cash consideration		$ 1,400,000
Net acres acquired | a		164
Number of drilling wells acquired | Well		21

Acquisitions and Divestitures24

Acquisitions and Divestitures - Schedule of Consideration Paid to Acquire Net Assets and Estimated Values of Net Assets (Details) - USD ($) $ / shares in Units, $ in Thousands	Dec. 19, 2014	Jun. 30, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Total shares of Common Stock outstanding following the Exchange		13,835,128	13,835,128
Common stock, shares issued		13,835,128	13,835,128
Estimated Fair Value of Assets Acquired:
Goodwill		$ 22,992	$ 22,992
Earthstone Energy Reverse Acquisition [Member]
Business Acquisition [Line Items]
Shares of Common Stock outstanding before the Exchange	1,734,988
Company director and officer restricted shares that vested in the Exchange	18,400
Shares of Common Stock issued in the Exchange	9,124,452
Total shares of Common Stock outstanding following the Exchange	10,877,840
Common stock, shares issued	1,753,388
Shares of Common Stock issued as consideration in the Contribution	9,124,000
Closing price of Common Stock	$ 19.08
Total purchase price	$ 33,455
Estimated Fair Value of Liabilities Assumed:
Current liabilities	7,852
Long-term debt	7,000
Deferred tax liability	2,880
Asset retirement obligation	2,227
Amount attributable to liabilities assumed	19,959
Total purchase price plus liabilities assumed	53,414
Estimated Fair Value of Assets Acquired:
Cash	2,920	2,900
Other current assets	3,466
Other non-current assets	745
Amount attributable to assets acquired	34,468
Goodwill	18,946
Earthstone Energy Reverse Acquisition [Member] | Proved Oil and Gas Properties [Member]
Estimated Fair Value of Assets Acquired:
Oil and natural gas properties	21,813
Earthstone Energy Reverse Acquisition [Member] | Unproved Oil and Gas Properties [Member]
Estimated Fair Value of Assets Acquired:
Oil and natural gas properties	$ 5,524
2014 Eagle Ford Properties [Member]
Business Acquisition [Line Items]
Shares of Common Stock issued as consideration in the Contribution	2,957,288
Closing price of Common Stock	$ 19.08
Estimated Fair Value of Liabilities Assumed:
Deferred tax liability	$ 4,046
Asset retirement obligation	173
Amount attributable to liabilities assumed	4,219
Total purchase price plus liabilities assumed	60,644
Estimated Fair Value of Assets Acquired:
Amount attributable to assets acquired	56,598
Goodwill	4,046
Cash consideration	56,425
2014 Eagle Ford Properties [Member] | Proved Oil and Gas Properties [Member]
Estimated Fair Value of Assets Acquired:
Oil and natural gas properties	34,745
2014 Eagle Ford Properties [Member] | Unproved Oil and Gas Properties [Member]
Estimated Fair Value of Assets Acquired:
Oil and natural gas properties	$ 21,853
Acreage [Member]
Estimated Fair Value of Liabilities Assumed:
Asset retirement obligation		13
Amount attributable to liabilities assumed		18
Other liabilities		5
Total purchase price plus liabilities assumed		4,066
Estimated Fair Value of Assets Acquired:
Amount attributable to assets acquired		4,084
Cash consideration		4,066
Acreage [Member] | Proved Oil and Gas Properties [Member]
Estimated Fair Value of Assets Acquired:
Oil and natural gas properties		588
Acreage [Member] | Unproved Oil and Gas Properties [Member]
Estimated Fair Value of Assets Acquired:
Oil and natural gas properties		$ 3,496

Acquisitions and Divestitures25

Acquisitions and Divestitures - Schedule of Consideration Paid to Acquire Net Assets and Estimated Values of Net Assets (Parenthetical) (Details) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2015USD ($)	Jun. 30, 2015USD ($)$ / bbl$ / Mcf	Dec. 19, 2014USD ($)$ / shares
Business Acquisition [Line Items]
Exchange tax rate	34.00%
Earthstone Energy Reverse Acquisition [Member]
Business Acquisition [Line Items]
Closing price of Common Stock			$ 19.08
Exchange tax rate		35.00%
Business combination assets acquired notes payable and accrued interest | $	$ 7,100	$ 7,100
Cash | $	$ 2,900	$ 2,900	$ 2,920
Weighted average commodity prices of oil | $ / bbl		51.62
Weighted average commodity prices of natural gas | $ / Mcf		4.58
2014 Eagle Ford Properties [Member]
Business Acquisition [Line Items]
Closing price of Common Stock			$ 19.08
Exchange tax rate		34.00%
Weighted average commodity prices of oil | $ / bbl		56.36
Weighted average commodity prices of natural gas | $ / Mcf		3.36

Acquisitions and Divestitures26

Acquisitions and Divestitures - Schedule of Unaudited Pro forma Revenues and Expenses of Assets Acquired and Liabilities Assumed (Details) - Jun. 30, 2014 - 2014 Eagle Ford Properties [Member] - USD ($) $ / shares in Units, $ in Thousands	Total	Total
Business Acquisition [Line Items]
Revenue	$ 22,898	$ 42,961
Income before taxes	8,264	15,834
Net income available to Earthstone common stockholders	$ 5,444	$ 10,424
Pro forma net income per common share:
Basic and diluted	$ 0.39	$ 0.76

Derivative Financial Instrume27

Derivative Financial Instruments - Schedule of Open Crude Oil Derivative Contracts (Details) - 6 months ended Jun. 30, 2015 - Crude Oil [Member]	$ / bblbbl
July 2015 - December 2015 [Member]
Derivative [Line Items]
Instrument	Swap
Volume in Bbls	33,000
Fixed Price, Bbls | $ / bbl	95.10
July 2015 - March 2016 [Member]
Derivative [Line Items]
Instrument	Swap
Volume in Bbls	45,000
Fixed Price, Bbls | $ / bbl	57
July 2015 - June 2016 [Member]
Derivative [Line Items]
Instrument	Swap
Volume in Bbls	120,000
Fixed Price, Bbls | $ / bbl	58
July 2015 - December 2016 [Member]
Derivative [Line Items]
Instrument	Swap
Volume in Bbls	90,000
Fixed Price, Bbls | $ / bbl	60.80
July 2015 - December 2016 [Member]
Derivative [Line Items]
Instrument	Swap
Volume in Bbls	90,000
Fixed Price, Bbls | $ / bbl	60.80

Derivative Financial Instrume28

Derivative Financial Instruments - Schedule of Location and Fair Value Amounts of All Derivative Instruments (Details) - Derivatives Not Designated as Hedging Contracts [Member] - Commodity Contracts [Member] - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current Derivative Assets [Member]
Derivatives Fair Value [Line Items]
Gross Recognized Assets	$ 1,144	$ 3,569
Gross Amounts Offset, Assets	(544)
Net Recognized Assets	600	$ 3,569
Current Derivative Liabilities [Member]
Derivatives Fair Value [Line Items]
Gross Recognized Liabilities	(559)
Gross Amounts Offset, Liabilities	544
Net Recognized Liabilities	(15)
Noncurrent Derivative Liabilities [Member]
Derivatives Fair Value [Line Items]
Gross Recognized Liabilities	(97)
Net Recognized Liabilities	$ (97)

Derivative Financial Instrume29

Derivative Financial Instruments - Summary of Gross and Net Information About Commodity Derivative Instruments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Derivative Instruments Gain Loss [Line Items]
Net gain (loss) on derivative contracts	$ (1,318)	$ (1,275)	$ (644)	$ (2,303)
Derivatives Not Designated as Hedging Contracts [Member] | Net Gain (Loss) On Derivative Contracts [Member]
Derivative Instruments Gain Loss [Line Items]
Unrealized gain (loss) on commodity contracts	(2,261)	(725)	(3,081)	(1,214)
Realized gain (loss) on commodity contracts	$ 943	$ (550)	$ 2,437	$ (1,089)

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value assets transfer from Level 1 to Level 2	$ 0
Fair value assets transfer from Level 2 to Level 1	0
Fair value liabilities transfer from Level 1 to Level 2	0
Fair value liabilities transfer from Level 2 to Level 1	0
Level 3 [Member] | Fair Value on a Nonrecurring Basis [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impairment of oil and natural gas properties	$ 0	$ 0

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Financial assets
Current derivative assets	$ 600	$ 3,569
Financial liabilities
Current derivative liabilities	15
Noncurrent derivative liabilities	97
Fair Value on a Recurring Basis [Member]
Financial assets
Current derivative assets	600	3,569
Total financial assets	600	3,569
Financial liabilities
Current derivative liabilities	15
Noncurrent derivative liabilities	97
Total financial liabilities	112
Fair Value on a Recurring Basis [Member] | Level 2 [Member]
Financial assets
Current derivative assets	600	3,569
Total financial assets	600	$ 3,569
Financial liabilities
Current derivative liabilities	15
Noncurrent derivative liabilities	97
Total financial liabilities	$ 112

Earnings (Loss) Per Common Sh32

Earnings (Loss) Per Common Share - Reconciliation of Net (Loss) Income and Weighted-Average Shares of Common Stock Outstanding for Calculating Basic and Diluted (Loss) Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Earnings Loss Per Common Share [Abstract]
Net (loss) income	$ (748)	$ 1,530	$ (1,862)	$ 4,270
Weighted average common shares outstanding:
Basic	13,835,128	9,124,452	13,835,128	9,124,452
Diluted	13,835,128	9,124,452	13,835,128	9,124,452
Net (loss) income per share:
Basic	$ (0.05)	$ 0.17	$ (0.13)	$ 0.47
Diluted	$ (0.05)	$ 0.17	$ (0.13)	$ 0.47

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Details) - USD ($)	Dec. 19, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Debt Instrument [Line Items]
Long term debt		$ 11,200,000		$ 11,200,000
Long-term debt, percentage bearing interest rate		1.687%		1.687%
Letters of credit outstanding amount		$ 300,000		$ 300,000
Borrowing base available under credit facility		68,500,000		68,500,000
Amortization of deferred financing costs		64,900	$ 37,800	129,800	$ 75,600
Deferred financing cost, net of amortization		1,000,000		1,000,000		$ 1,000,000
Four Year Senior Secured Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 500,000,000
Line of credit, maturity period	4 years
Initial borrowing of the credit facility		$ 80,000,000		$ 80,000,000
Debt outstanding maturity				Dec. 19, 2018
Line of credit facility, covenant terms				The ESTE Credit Facility contains a number of customary covenants that, among other things, restrict, subject to certain exceptions, the Company’s ability to incur additional indebtedness, create liens on asset, pay dividends, and repurchase its capital stock. In addition, the Company is required to maintain certain financial ratios, including a minimum modified current ratio which includes the available borrowing base of 1.0 to 1.0 and a maximum annualized quarterly leverage ratio of 4.0 to 1.0. The Company is also required to submit an audited annual report 120 days after the end of each fiscal period.
Four Year Senior Secured Revolving Credit Facility | Minimum [Member]
Debt Instrument [Line Items]
Commitment fee percentage				0.375%
Four Year Senior Secured Revolving Credit Facility | Maximum [Member]
Debt Instrument [Line Items]
Commitment fee percentage				0.50%
Four Year Senior Secured Revolving Credit Facility | LIBOR Adjusted Rate [Member]
Debt Instrument [Line Items]
Applicable margin percentage				1.687%
Four Year Senior Secured Revolving Credit Facility | LIBOR Adjusted Rate [Member] | Minimum [Member]
Debt Instrument [Line Items]
Applicable margin percentage				1.50%
Four Year Senior Secured Revolving Credit Facility | LIBOR Adjusted Rate [Member] | Maximum [Member]
Debt Instrument [Line Items]
Applicable margin percentage				2.50%
Four Year Senior Secured Revolving Credit Facility | Base Rate [Member]
Debt Instrument [Line Items]
Applicable margin percentage				3.75%
Four Year Senior Secured Revolving Credit Facility | Base Rate [Member] | Minimum [Member]
Debt Instrument [Line Items]
Applicable margin percentage				0.50%
Four Year Senior Secured Revolving Credit Facility | Base Rate [Member] | Maximum [Member]
Debt Instrument [Line Items]
Applicable margin percentage				1.50%

Asset Retirement Obligations -

Asset Retirement Obligations - Summary of Asset Retirement Obligation Transactions (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Asset Retirement Obligation Disclosure [Abstract]
Asset retirement obligations, Beginning balance	$ 6,078
Liabilities incurred	91
Accretion expense	282	$ 151
Property dispositions	(403)
Liabilities settled	(46)
Revision of estimates	1
Asset retirement obligations, Ending balance	$ 6,003

Asset Retirement Obligations 35

Asset Retirement Obligations - Additional Information (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Asset Retirement Obligation Disclosure [Abstract]
Asset retirement obligations	$ 350	$ 408

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Oak Valley Management Limited Liability Company
Related Party Transaction [Line Items]
General and administrative expenses related to services	$ 0.7	$ 0.7	$ 2.2	$ 2.1
Oak Valley Resources, LLC [Member]
Related Party Transaction [Line Items]
Accounts payable, related parties	$ 0.1		$ 0.1		$ 2.3

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - Jun. 30, 2015 - USD ($) $ in Thousands	Total	Total
Income Tax Disclosure [Abstract]
Income tax benefit	$ (295)	$ (880)
Effective tax rate	28.00%	32.00%
Difference between effective tax rate and U.S. federal statutory corporate income tax rate	3.00%
U.S. Federal statutory corporate income tax rate	34.00%
States income tax rate	0.70%

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	6 Months Ended	12 Months Ended
	Jun. 30, 2015USD ($)MMBTU$ / MMBTU	Dec. 31, 2014USD ($)
Natural Gas Purchasing and Natural Gas Processing Contract
Loss Contingencies [Line Items]
Pipeline fee paid | $ / MMBTU	0.45
Holding pipeline capacity | MMBTU	10,000
Purchasing and processing contract expiry date	Jun. 1, 2021
Company's share of remaining commitment amount	$ 4,900,000
Drilling Commitments
Loss Contingencies [Line Items]
Daily drilling rate of wells		$ 29,000
Contractual obligations, liquidated damages	9,100,000
Minimum commitment per terms of the agreement	$ 13,200,000
Drilling Rigs Contract Period	18 months
Liquidated damages per day	$ 20,000