Earthstone Energy Reports 2nd Quarter Results

Earthstone Energy Reports 2nd Quarter Results 
DENVER, CO -- (Marketwire) -- 11/13/12 --  EARTHSTONE ENERGY, INC.
(NYSE MKT: ESTE) reported net income of $486,000, or $0.28 per
diluted share, on revenue of $2,809,000 for the second quarter of
fiscal 2013, ended September 30, 2012 (2012). This compares to net
income of $728,000, or $0.43 per diluted share, on revenue of
$2,545,000 for the quarter ended September 30, 2011 (2011). For the
first half of fiscal year 2013, the Company reported net income of
$756,000, or $0.44 per share, on revenue of $5,156,000, compared to
net income of $1,393,000, or $0.81 per share, on revenue of
$5,070,000 for the six months ended September 30, 2011. For the
quarter, total revenue increased and net income decreased $264,000
(10%) and $242,000 (33%), respectively, from the comparable prior
year period. The increase in total revenue was due primarily to
higher oil production, which was nearly offset by lower oil and gas
prices. Net income decreased due to higher depletion and general &
administrative expenses, in addition to higher production taxes in
2012 relative to 2011. Other factors which contributed to our
quarterly results are disclosed in the Company's most recent Form
"We are pleased to see the results of our recent drilling efforts as
this quarter we posted solid gains in oil production and reserves;
nearly 25% and 22%, respectively," commented Ray Singleton, President
of Earthstone. "We expect this trend to continue, as our increased
exploration efforts lead the way to higher reserves and production
rates. Year-to-date, our capital deployment increased on an accrual
basis 82% over the same period last year. Based on this, by year-end,
we expect to easily double last year's capital expenditures. This
continues a trend, as last year's capex doubled the previous year's
expenditures. Our general and administrative expenses continue to
increase, but are directly attributable to significant additions to
the operational capability of our staff. The Company continues to
pursue its strategy of drilling non-operated, horizontal Bakken wells
along with the acquisition of producing properties in the Montana and
North Dakota portions of the Williston Basin. The next few months
should be exciting. With a number of efforts both underw
ay and in the
planning process, we eagerly anticipate increasing the Company's
production and reserves the remainder of this year." 
Operations Update
 Banks Field, McKenzie County, North Dakota
continues to be excellent potential for reserve growth in the Banks
area, where we placed nine new wells on production this year. These
wells, the Garmann 19-18 #1H, Sax 25-36 1H, Skarston 1-12 1H, Knight
35-26 1H, Jay 24-13 1H and, Maston 34-27 1H, operated by Brigham, the
Chameleon State 153-97-16-21-1H and the Chameleon State
153-97-16-21-2H, operated by Oasis and ZI Nelson 11-2H, operated by
Zenergy, have an average of 3.14% working interest.  
Rush Mountain Field, Sheridan County, Montana
 The Federal #1-5H, a
horizontal Ratcliffe formation well, has finally been placed on
production, where progress by the operator, Vess Corporation, has
been painfully slow on federal lands. At this time the well has not
been released from confidential status, and as such, production
information is not available.  
 Earthstone Energy, Inc. is a
growth-oriented independent oil and gas exploration and production
company with primary operations in the Williston Basin and southern
Texas. Earthstone is currently traded on NYSE MKT under the symbol
ESTE. Information on Earthstone can be found at its web site: 
contained in this release are forward-looking, and therefore involve
uncertainties or risks that could cause actual results to differ
materially. Forward-looking statements can be identified by words
such as "should," "may," "will," "anticipate," "expect," "estimate,"
"intend" or "continue," or comparable words or phrases. In addition,
all statements other than statements of historical facts that address
activities that Earthstone intends, expects or anticipates will or
may occur in the future are forward-looking statements.
Forward-looking statements also include comments regarding
assumptions regarding production rates and growth, operating costs,
reduction of operation costs, commodity prices, industry outlook,
future drilling activities, acquisitions and industry opportunities.
Factors that could cause actual results to differ materially include
availability of rigs and services, price volatility of oil and gas,
estimated production rates and adjustments to ownership percentages
in addition to economic and political events affecting supply and
demand for oil and gas, loss of customers for oil and gas production
and government regulations. These and other factors are discussed in
more detail in Earthstone Energy's filings with the Securities and
Exchange Commission, including the Company's Annual Report on Form
10-K filed for March 31, 2012 and Quarterly Reports on Form 10-Q for
the three and six months ended June 30, 2012 and September 30, 2012,
respectively. The Company disclaims any obligation to update
forward-looking statements. 

                      FINANCIAL & OPERATING HIGHLIGHTS                      
                                Three Months Ended       Six Months Ended   
                                  September 30,           September 30,     
                                 2012        2011        2012        2011   
Revenue                      $ 2,809,000 $ 2,545,000 $ 5,156,000 $ 5,070,000
Net income                   $   486,000 $   728,000 $   756,000 $ 1,393,000
Basic and diluted per share                                                 
 income                      $      0.28 $      0.43 $      0.44 $      0.81
Oil Sales, Bbls.                  31,169      25,056      58,168      47,618

Contact Information:
Ray Singleton
303-296-3076, ext. 102 
633 Seventeenth Street, Ste. 1900 
Denver, CO 80202-3619 
(303) 296-3076 
(303) 773-8099 Fax 
Press spacebar to pause and continue. Press esc to stop.