Earthstone Energy (NYSE: ESTE) has announced a definitive agreement to acquire Independence Resources Management (IRM) for approximately $185.9 million. This includes $135.2 million in cash and 12.7 million shares of Earthstone’s Class A common stock. The acquisition is anticipated to enhance Earthstone’s production and Adjusted EBITDAX by around 50%, increasing total production from ~17,000 Boepd to ~25,700 Boepd. The deal is expected to close in Q1 2021, enhancing operational efficiency and allowing for a targeted reduction in cash G&A costs by 25%.
Earthstone Energy, Inc. (NYSE: ESTE) announced its third-quarter financial results for 2020, showcasing an average daily production of 16,959 Boepd and an Adjusted EBITDAX of $36.4 million. The company reported a net loss of $(11.9) million, or $(0.18) per share, alongside an adjusted net income of $3.7 million, or $0.06 per share. Free cash flow reached $33.8 million, enabling the reduction of long-term debt by $38.6 million. Furthermore, the company has increased its production guidance for the year and is targeting a net debt to Adjusted EBITDAX ratio below 1x by year-end.
Earthstone Energy (NYSE: ESTE) reported a significant financial update for Q3 2020, achieving a 23% debt reduction to $130 million from $168.6 million in Q2 2020. The company successfully completed a borrowing base redetermination, reducing the borrowing base by 13% from $275 million to $240 million. Alongside these changes, the Credit Facility was amended to provide enhanced flexibility for financing acquisitions. CEO Robert J. Anderson highlighted the company’s focus on maintaining a leverage ratio below 1x Net Debt to Adjusted EBITDAX, driven by strong free cash flow and effective cost management.