Earthstone Energy: Smooth Sailing

Summary

  • The OPEC production cutback enhances the operational optimization of the acquisitions process by providing more cash flow.
  • Occidental Petroleum Corporation had the exact opposite experience by running into covid challenges right after the acquisition.
  • The buyers' market enabled the company to rapidly expand operations while paying close to zero for undrilled locations.
  • Location costs are rarely revealed to shareholders in breakeven calculations.
  • Earthstone Energy's strategy is confirmed by larger entities like John Goff and KKR through Crescent Energy pursuing a similar strategy.
  • This idea was discussed in more depth with members of my private investing community, Oil & Gas Value Research. Learn More »

Oil field site, in the evening, oil pumps are running, The oil pump and the beautiful sunset reflected in the water

zhengzaishuru

Earthstone Energy, Inc. (ESTE) management is a company with a goal of building and selling the company. As I have noted many times before, this is the sixth attempt for management to build and sell a

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

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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, CRGY, OXY, HPK 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.

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