Earthstone Energy Inc (ESTE, Financial) released its financial and operating results for the third quarter and year-to-date 2023 on November 1, 2023. The company reported a net income of $87.2 million and an average daily production of 116,967 Boepd for the third quarter. The company also closed the Novo Acquisition on August 15, 2023.
Financial Highlights
ESTE's Q3 2023 financial highlights include an adjusted net income of $106.2 million and adjusted EBITDAX of $302.3 million. The company's net cash provided by operating activities was $285.1 million, with free cash flow of $76.1 million. Capital expenditures for the quarter amounted to $191.7 million.
Year-to-date, ESTE reported an average daily production of 109,016 Boepd, a net income of $255.8 million, and an adjusted net income of $291.0 million. The company's adjusted EBITDAX for the period was $808.0 million, with net cash provided by operating activities amounting to $761.9 million. Free cash flow for the period was $159.8 million, with capital expenditures totaling $568.4 million.
Merger Agreement with Permian Resources Corporation
On October 30, 2023, ESTE's stockholders approved the previously disclosed merger agreement with Permian Resources Corporation. The parties expect the merger to close on or about November 1, 2023, subject to customary closing conditions.
Non-Core Assets Sale
ESTE recently agreed to sell certain non-core assets located in Karnes and Gonzales counties of Texas on approximately 2,800 net acres for a purchase price of $66.5 million. The transaction is expected to close late in the fourth quarter of 2023.
Liquidity and Equity Capitalization
As of September 30, 2023, ESTE had $16.6 million of cash on hand and $700.4 million outstanding under its senior secured credit facility. The company's elected commitments under the credit facility were $1.75 billion with a borrowing base of $2.0 billion.
Commodity Hedging
ESTE's outstanding derivative contracts as of September 30, 2023, include price swaps for crude oil and natural gas, costless collars for crude oil and natural gas, and deferred premium puts for crude oil.
About Earthstone Energy Inc
Earthstone Energy Inc is a growth-oriented, independent energy company engaged in acquisitions and the development and operation of oil and natural gas properties. Its primary assets are located in the Permian Basin of New Mexico and west Texas. Earthstone's Class A Common Stock is listed on the New York Stock Exchange under the symbol “ESTE.”
Explore the complete 8-K earnings release (here) from Earthstone Energy Inc for further details.
