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Earthstone Energy Inc

ESTE

Crude Petroleum & Natural Gas

Mkt Cap

$2.254B

PE

7.28

Debt

$1.75B

Cash

$16.59M

EV

$3.988B

FCF

$1.076B

Market Cap

$2.254B

P/E Ratio

7.28

Debt

$1.75B

Cash

$16.59M

EV

$3.988B

FCF

$1.076B

Earthstone Energy, Inc., operates as an independent oil and gas company in the United States. It engages in the acquisition and development of oil and gas reserves through drilling and development of undeveloped leases, as well as asset and corporate acquisitions and mergers. The company's asset portfolio includes the Midland Basin in West Texas, Delaware Basin in New Mexico, and the Eagle Ford trend located in southern Gonzales County, Texas. Earthstone Energy, Inc. was incorporated in 1969 and is headquartered in The Woodlands, Texas.

Sector

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    AR

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Growth

%

%

Discount

%

%

Multiple

g\r+10%+11%+12%+13%+14%
0%109887
+1%1110988
+2%13111098
+3%141311109
+4%1714121110
Years012345678910TV
FCF$1.076B$1.399B$1.78B$2.215B$2.695B$3.204B$3.721B$4.217B$4.662B$5.024B$5.276B$52.76B
DCF$1.217B$1.346B$1.457B$1.541B$1.593B$1.609B$1.585B$1.524B$1.428B$1.304B$13.04B
Value$27.64B

In the chart Earnings are multiplied by this value.

Earnings Growth 110%
Earnings Stability -15%


Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years12-201412-201512-201612-201712-201812-201912-202012-202112-2022TTM
Net Margin-60%-240%-130%-41%26%0.38%-20%8.5%27%18%
ROA-1.5%-54%-15%-6%9.7%4.9%-2.9%12%25%14%
ROE-9.1%-58%-23%-6.2%5.1%0.086%-3.6%3.4%19%12%

What is the average Net Margin?

The average Net Margin over the past 5 years is -0.11%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +7.66%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +7.08%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +4.35%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +3.05%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +3.41%.


Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years12-201412-201512-201612-201712-201812-201912-202012-202112-2022TTM
Debt FCF0.15-1.039.970.490.771.350.881.391.051.63
Debt Equity0.040.060.070.030.100.200.140.310.460.68
MIN
Graham Stability-------100%100%100%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 1.63.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 0.12.

What is the Graham’s Stability?

Graham’s Stability measure stands at 1.00.


Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years12-201512-201712-201912-2021Trend
Revenue66%73%110%300%15%
Net Income--760%1.2K%420%
Stockholders Equity42%26%41%120%-73%
FCF-82%100%340%-390%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +73.42%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +15.37%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +424.49%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +26.21%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -72.54%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +82.09%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -394.37%.