NYSE:ESTE

Stock Analysis Report

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Executive Summary

Earthstone Energy, Inc., an independent energy company, engages in the acquisition, exploration, development, and production of oil and natural gas properties in the United States. More Details


Snowflake Analysis

Undervalued with adequate balance sheet.


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

Stable Share Price: ESTE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.4%

ESTE

1.0%

US Oil and Gas

-0.4%

US Market


1 Year Return

-32.5%

ESTE

-45.9%

US Oil and Gas

18.3%

US Market

Return vs Industry: ESTE exceeded the US Oil and Gas industry which returned -45.9% over the past year.

Return vs Market: ESTE underperformed the US Market which returned 18.3% over the past year.


Shareholder returns

ESTEIndustryMarket
7 Day-0.4%1.0%-0.4%
30 Day2.6%3.6%6.6%
90 Day-8.4%-14.9%8.6%
1 Year-32.5%-32.5%-42.6%-45.9%21.0%18.3%
3 Year-66.6%-66.6%-45.2%-52.5%42.1%32.7%
5 Year-80.9%-80.9%-42.6%-53.7%85.6%64.7%

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

Valuation

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

45.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ESTE ($2.72) is trading below our estimate of fair value ($4.99)

Significantly Below Fair Value: ESTE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ESTE is poor value based on its PE Ratio (8.4x) compared to the US Oil and Gas industry average (7.7x).

PE vs Market: ESTE is good value based on its PE Ratio (8.4x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: ESTE is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: ESTE is good value based on its PB Ratio (0.2x) compared to the US Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is Earthstone Energy forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

21.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ESTE's forecast earnings growth (21.2% per year) is above the savings rate (2.2%).

Earnings vs Market: ESTE's earnings (21.2% per year) are forecast to grow slower than the US market (22.1% per year).

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

Revenue vs Market: ESTE's revenue (4.5% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: ESTE's revenue (4.5% 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 ESTE'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?

61.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ESTE has a large one-off loss of $15.4M impacting its June 30 2020 financial results.

Growing Profit Margin: ESTE's current net profit margins (5.5%) are lower than last year (15.9%).


Past Earnings Growth Analysis

Earnings Trend: ESTE has become profitable over the past 5 years, growing earnings by 61.6% per year.

Accelerating Growth: ESTE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ESTE had negative earnings growth (-66.1%) over the past year, making it difficult to compare to the Oil and Gas industry average (-36.5%).


Return on Equity

High ROE: ESTE's Return on Equity (2.5%) is considered low.


Next Steps

Financial Health

How is Earthstone Energy's financial position?


Financial Position Analysis

Short Term Liabilities: ESTE's short term assets ($56.2M) exceed its short term liabilities ($39.1M).

Long Term Liabilities: ESTE's short term assets ($56.2M) do not cover its long term liabilities ($188.4M).


Debt to Equity History and Analysis

Debt Level: ESTE's debt to equity ratio (20.1%) is considered satisfactory.

Reducing Debt: ESTE's debt to equity ratio has increased from 3.6% to 20.1% over the past 5 years.

Debt Coverage: ESTE's debt is well covered by operating cash flow (75.7%).

Interest Coverage: ESTE's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if ESTE'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 ESTE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Robert Anderson (58 yo)

0.50

Tenure

US$2,709,712

Compensation

Mr. Robert J. Anderson has been the President of Earthstone Energy, Inc. since April 2, 2018 and serves as Chief Executive Officer since April 01, 2020. Mr. Anderson has served as Executive Vice President ...


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD2.71M) is above average for companies of similar size in the US market ($USD1.24M).

Compensation vs Earnings: Robert's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Frank Lodzinski
Executive Chairman5.83yrsUS$3.79m0.42%
$ 737.8k
Robert Anderson
CEO & President0.50yrUS$2.71m0.82%
$ 1.5m
Steven Collins
Executive Vice President of Completions & Operations5.83yrsUS$1.68m0.49%
$ 870.9k
Mark Lumpkin
Executive VP & CFO3.17yrsUS$545.48k0.33%
$ 583.4k
Tony Oviedo
Executive Vice President of Accounting & Administration3.67yrsUS$842.15k0.20%
$ 351.6k
Timothy Merrifield
Executive Vice President of Geology & Geophysics5.83yrsUS$1.32m0%
$ 0
Leonard Wood
Vice President of Exploration & Development2.58yrsno datano data
William Wiederkehr
VP of Financial Reporting & Tax and Corporate Secretaryno datano datano data
Scott Thelander
Vice President of Finance3.5yrsno datano data

3.3yrs

Average Tenure

61yo

Average Age

Experienced Management: ESTE's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Frank Lodzinski
Executive Chairman5.83yrsUS$3.79m0.42%
$ 737.8k
Phillip Kramer
Independent Director4yrsUS$228.08k0.16%
$ 280.2k
Ray Singleton
Director31.25yrsUS$193.08k1.84%
$ 3.3m
Jay Joliat
Independent Director5.83yrsUS$233.08k0.53%
$ 942.2k
Robert Zorich
Director5.83yrsno datano data
Zachary Urban
Independent Director5.83yrsUS$213.08k0.035%
$ 62.2k
Wynne Snoots
Director3.42yrsno datano data
Brad Thielemann
Independent Director5.83yrsno datano data

5.8yrs

Average Tenure

64yo

Average Age

Experienced Board: ESTE's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Earthstone Energy, Inc.
  • Ticker: ESTE
  • Exchange: NYSE
  • Founded: 1969
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Implied Market Cap: US$177.030m
  • Market Cap: US$81.793m
  • Shares outstanding: 65.08m
  • 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 acquisition, exploration, development, and production of oil and natural gas properties in the United States. Its asset portfolio incl ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 00:24
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.