Benzinga | Jul 20, 2021 05:40PM EDT

Earthstone Energy Updates Guidance; Expects To Spend $130M-$140M In 2021

The Company has revised its 2021 capital budget to include the addition of a second rig that is expected to commence operations in early August and now expects to spend $130-$140 million. This program is expected to result in spudding 30 gross / 26.2 net operated wells and bringing 20 gross / 16.1 net operated wells and 0.7 net non-operated wells online in 2021 on its acreage in the Midland Basin.

Based on its 2021 capital budget, operating plan, and existing service costs, along with current commodity prices and hedges, the Company expects to generate significant positive free cash flow4 in 2021. The Company's capital budget excludes acquisitions.

Gross / Gross / Net Net Net $ millions Non-OperatedFY 2021 Capital Expenditures Operated Operated (Net) Wells On Wells Wells On Line Spudded Line

Drilling and Completions $120 ? 130 30 / 26.220 / 16.10.7

Land / Infrastructure 10

FY 2021 Total Capital $130 ? 140 Expenditures



FY 2021 Average Daily 23,500 ? Production (Boe/d) 24,250

% Oil 50% ? 51%

% Liquids 74% ? 75%



2H 2021 Average Daily 25,500 ? Production (Boe/d) 27,000

% Oil 46% ? 47%

% Liquids 73% ? 74%



2H 2021 Operating Costs

Lease Operating Expense ($/Boe)$5.75 ? $6.00

Production and Ad Valorem Taxes6.25% ? 7.00% (% of Revenue)

Cash G&A ($mm) $12 ? $13