Earthstone Energy: Conservative Question Will Be Answered

Summary

  • The shopping spree benefits will become apparent in the current fiscal year.
  • Earthstone Energy management's experience, the low debt ratio, and the upside potential all point to an asymmetric return in a very positive direction.
  • Technology advancements will open up more production opportunities for this acreage (and the industry in general).
  • Management claims to have minimal to no location cost. That would be reflected in above average company profitability.
  • The ability to run the newly constructed company effectively should become apparent to the market this year.
  • This idea was discussed in more depth with members of my private investing community, Oil & Gas Value Research. Learn More »

Working Pumpjacks On Sunset

imaginima

The management of Earthstone Energy (ESTE) made claims that the shopping spree had conservative underpinnings. Now we are about to find out just how conservative this shopping spree was. I believe that shareholders will like the answer not only for current results but

I analyze oil and gas companies like Earthstone Energy and related companies in my service, Oil & Gas Value Research, where I look for undervalued names in the oil and gas space. I break down everything you need to know about these companies -- the balance sheet, competitive position and development prospects. This article is an example of what I do. But for Oil & Gas Value Research members, they get it first and they get analysis on some companies that is not published on the free site. Interested? Sign up here for a free two-week trial.

This article was written by

23.83K Followers

Long Player believes oil and gas is a boom-bust, cyclical industry. It takes patience, and it certainly helps to have experience. He has been focusing on this industry for years. He is a retired CPA, and holds an MBA and MA.

He leads the investing group Oil & Gas Value Research. He looks for under-followed oil companies and out-of-favor midstream companies that offer compelling opportunities. The group includes an active chat room in which Oil & Gas investors discuss recent information and share ideas. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of ESTE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: I am not an investment advisor, and this article is not meant to be a recommendation of the purchase or sale of stock. Investors are advised to review all company documents and press releases to see if the company fits their own investment qualifications.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

More on ESTE