Earthstone Energy Reports 2nd Quarter Results

Marketwired

DENVER, CO--(Marketwired - Nov 12, 2013) - EARTHSTONE ENERGY, INC. (NYSE MKT: ESTE) reported net income of $1,224,000, or $0.71 per diluted share, on revenue of $4,672,000 for the second quarter of fiscal 2014, ended September 30, 2013 (2013). This compares to net income of $486,000, or $0.28 per diluted share, on revenue of $2,809,000 for the second quarter of fiscal 2013, ended September 30, 2012 (2012). For the first half of fiscal year 2014, the Company reported net income of $1,917,000, or $1.11 per share, on revenue of $8,267,000, compared to net income of $756,000, or $0.44 per share, on revenue of $5,156,000 for the six months ended September 30, 2012. For the quarter, total revenue and net income increased $1,863,000 (66%) and $738,000 (152%), respectively, from 2012. These increases were due to both higher oil and gas sales volumes and higher oil and natural gas prices in 2013 relative to 2012. Other factors which contributed to our quarterly results are disclosed in the Company's most recent Form 10-Q.

"It is certainly nice to see the results of our recent drilling efforts come to fruition," commented Ray Singleton, President of Earthstone. "It was simply an outstanding quarter. We posted solid gains across the board; volume sales, revenue and net income. Notably, BOE (barrels, oil equivalent) sales were up nearly 43% and our year-to-date EBITDA increased 148% over the same period last year. Compared to the trailing quarter, BOE sales were up nearly 25% and our 2nd quarter EBITDA increased 55% over the trailing quarter EBITDA. For the first six months of this fiscal year, capital deployment on oil and gas properties increased 54% on an accrual basis over the same period last year. Based on this, by year-end, we expect to easily exceed last year's capital expenditures. We expect our undeveloped Bakken locations in the Banks Field will receive the majority of these funds. Given all this, we anticipate a great year as we anticipate increasing the Company's earnings and cash flow during the remainder of the year."

ABOUT EARTHSTONE ENERGY:
Earthstone Energy, Inc. is a growth-oriented independent oil and gas exploration and production company with primary operations in the Williston Basin and southern Texas. Earthstone is currently traded on NYSE MKT under the symbol ESTE. Information on Earthstone can be found at its web site: www.earthstoneenergy.com.

THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. Some statements contained in this release are forward-looking, and therefore involve uncertainties or risks that could cause actual results to differ materially. Forward-looking statements can be identified by words such as "should," "may," "will," "anticipate," "expect," "estimate," "intend" or "continue," or comparable words or phrases. In addition, all statements other than statements of historical facts that address activities that Earthstone intends, expects or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements also include comments regarding assumptions regarding production rates and growth, operating costs, reduction of operation costs, commodity prices, industry outlook, future drilling activities, acquisitions and industry opportunities. Factors that could cause actual results to differ materially include availability of rigs and services, price volatility of oil and gas, estimated production rates and adjustments to ownership percentages in addition to economic and political events affecting supply and demand for oil and gas, loss of customers for oil and gas production and government regulations. These and other factors are discussed in more detail in Earthstone Energy's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K filed for March 31, 2013 and Quarterly Reports on Form 10-Q for the three and six months ended June 30, 2013 and September 30, 2013, respectively. The Company disclaims any obligation to update forward-looking statements.

 
 
FINANCIAL & OPERATING HIGHLIGHTS
                 
    Three Months Ended   Six Months Ended
    September 30,   September 30,
    2013   2012   2013   2012
Revenue   $ 4,672,000   $ 2,809,000   $ 8,267,000   $ 5,156,000
Net income   $ 1,224,000   $ 486,000   $ 1,917,000   $ 756,000
Basic and diluted per share income   $ 0.71   $ 0.28   $ 1.11   $ 0.44
Weighted avg. number of shares outstanding, basic and diluted     1,732,250     1,720,712     1,732,250     1,720,712
                         
                         
Contact:
CONTACT:
Ray Singleton
303-296-3076, Ext. 102

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