DB:BSC2

Stock Analysis Report

Earthstone Energy

Executive Summary

Earthstone Energy, Inc., an independent energy company, engages in the development and operation of oil and gas properties in the United States.

Snowflake

Fundamentals

Good value with reasonable growth potential.


Similar Companies

Share Price & News

How has Earthstone Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.3%

BSC2

-2.7%

DE Oil and Gas

1.7%

DE Market


1 Year Return

-62.6%

BSC2

54.7%

DE Oil and Gas

7.2%

DE Market

Return vs Industry: BSC2 underperformed the German Oil and Gas industry which returned 54.7% over the past year.

Return vs Market: BSC2 underperformed the German Market which returned 7.2% over the past year.


Shareholder returns

BSC2IndustryMarket
7 Day-1.3%-2.7%1.7%
30 Day-17.0%3.7%2.4%
90 Day-25.6%11.3%2.3%
1 Year-62.6%-62.6%59.8%54.7%10.6%7.2%
3 Year-65.5%-65.5%38.0%24.9%18.4%8.1%
5 Yearn/a161.3%120.9%42.3%22.9%

Price Volatility Vs. Market

How volatile is Earthstone Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Earthstone Energy undervalued compared to its fair value and its price relative to the market?

3.52x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate BSC2's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate BSC2's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: BSC2 is good value based on its PE Ratio (3.5x) compared to the Oil and Gas industry average (9.7x).

PE vs Market: BSC2 is good value based on its PE Ratio (3.5x) compared to the German market (19x).


Price to Earnings Growth Ratio

PEG Ratio: BSC2 is good value based on its PEG Ratio (0.1x)


Price to Book Ratio

PB vs Industry: BSC2 is good value based on its PB Ratio (0.3x) compared to the DE Oil and Gas industry average (1.1x).


Next Steps

Future Growth

How is Earthstone Energy forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

37.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BSC2's forecast earnings growth (37.6% per year) is above the savings rate (0.2%).

Earnings vs Market: BSC2's earnings (37.6% per year) are forecast to grow faster than the German market (12.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BSC2's revenue (14.2% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: BSC2's revenue (14.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if BSC2's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Earthstone Energy performed over the past 5 years?

30.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BSC2 has become profitable over the past 5 years, growing earnings by 30.2% per year.

Accelerating Growth: BSC2's earnings growth over the past year (183.5%) exceeds its 5-year average (30.2% per year).

Earnings vs Industry: BSC2 earnings growth over the past year (183.5%) exceeded the Oil and Gas industry 4.1%.


Return on Equity

High ROE: BSC2's Return on Equity (7.7%) is considered low.


Return on Assets

ROA vs Industry: BSC2's Return on Assets is below or equal to the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: BSC2's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Earthstone Energy's financial position?


Financial Position Analysis

Short Term Liabilities: BSC2's short term assets ($43.4M) do not cover its short term liabilities ($78.7M)

Long Term Liabilities: BSC2's short term assets (43.4M) do not cover its long term liabilities (127.1M)


Debt to Equity History and Analysis

Debt Level: BSC2's debt to equity ratio (13.6%) is considered satisfactory

Reducing Debt: BSC2's debt to equity ratio has increased from 7.1% to 13.6% over the past 5 years.

Debt Coverage: BSC2's debt is well covered by operating cash flow (94.8%).

Interest Coverage: BSC2's interest payments on its debt are well covered by EBIT (18.2x coverage).


Balance Sheet

Inventory Level: BSC2 has a high level of physical assets or inventory.

Debt Coverage by Assets: BSC2's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is Earthstone Energy's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage5.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate BSC2's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate BSC2's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if BSC2's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BSC2's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BSC2's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Earthstone Energy's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Frank Lodzinski (70yo)

4.8yrs

Tenure

US$2,941,250

Compensation

Mr. Frank A. Lodzinski has been the Chief Executive Officer, President and Director of Lynden Energy Corp. since May 18, 2016. Mr. Lodzinski has been the Chief Executive Officer of Earthstone Energy, Inc.  ...


CEO Compensation Analysis

Compensation vs. Market: Frank's total compensation ($USD2.94M) is about average for companies of similar size in the German market ($USD544.56K).

Compensation vs Earnings: Frank's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.8yrs

Average Tenure

63yo

Average Age

Experienced Management: BSC2's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

63yo

Average Age

Experienced Board: BSC2's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: BSC2 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$28,84827 Aug 19
Robert Anderson
EntityIndividual
Role
President
President
Shares10,000
Max PriceUS$2.88
SellUS$67,76302 Jul 19
Tony Oviedo
EntityIndividual
Role
Chief Accounting Officer
Executive Vice President of Accounting & Administration
Shares12,000
Max PriceUS$5.65

Ownership Breakdown


Management Team

  • Frank Lodzinski (70yo)

    Chairman & CEO

    • Tenure: 4.8yrs
    • Compensation: US$2.94m
  • Francis Mury (67yo)

    Executive Vice President of Drilling & Development

    • Tenure: 4.8yrs
  • Robert Anderson (57yo)

    President

    • Tenure: 1.5yrs
    • Compensation: US$2.12m
  • Timothy Merrifield (63yo)

    Executive Vice President of Geological & Geophysical

    • Tenure: 4.8yrs
    • Compensation: US$1.32m
  • Steve Collins (54yo)

    Executive Vice President of Completions & Operations

    • Tenure: 4.8yrs
  • Tony Oviedo (65yo)

    Executive Vice President of Accounting & Administration

    • Tenure: 2.7yrs
    • Compensation: US$842.15k
  • William Wiederkehr

    VP of Financial Reporting & Tax & Secretary

    • Tenure: 0yrs
  • Mark Lumpkin (45yo)

    Executive VP & CFO

    • Tenure: 2.2yrs
    • Compensation: US$545.48k
  • Lenny Wood

    Vice President of Exploration & Development

    • Tenure: 1.6yrs

Board Members

  • Phil Kramer (63yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$103.00k
  • Ray Singleton (68yo)

    Director

    • Tenure: 30.3yrs
    • Compensation: US$82.59k
  • Frank Lodzinski (70yo)

    Chairman & CEO

    • Tenure: 4.8yrs
    • Compensation: US$2.94m
  • Jay Joliat (63yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$104.00k
  • Bob Zorich (69yo)

    Director

    • Tenure: 4.8yrs
  • Doug Swanson (47yo)

    Director

    • Tenure: 4.8yrs
  • Zachary Urban (41yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$88.00k
  • Wynne Snoots (58yo)

    Director

    • Tenure: 2.4yrs
  • Brad Thielemann (42yo)

    Independent Director

    • Tenure: 4.8yrs

Company Information

Earthstone Energy, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Earthstone Energy, Inc.
  • Ticker: BSC2
  • Exchange: DB
  • Founded: 1969
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Implied Market Cap: US$221.701m
  • Market Cap: US$89.642m
  • Listing Market Cap: US$198.999m
  • Shares outstanding: 64.45m
  • Website: https://www.earthstoneenergy.com

Number of Employees


Location

  • Earthstone Energy, Inc.
  • 1400 Woodloch Forest Drive
  • Suite 300
  • The Woodlands
  • Texas
  • 77380
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ESTENYSE (New York Stock Exchange)YesClass A Common StockUSUSDDec 1972
BSC2DB (Deutsche Boerse AG)YesClass A Common StockDEEURDec 1972

Biography

Earthstone Energy, Inc., an independent energy company, engages in the development and operation of oil and gas properties in the United States. Its asset portfolio includes the Midland Basin of west Texas ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 20:31
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.