Natural gas prices influence its valuation significantly, (266+244)/1639 = 31% of the revenue :
This would result in Earthstone generating around $1.639 billion in revenues in 2023 at current strip prices (including low-$70s WTI oil) after hedges. Earthstone’s hedges only have a slight amount of negative value in 2023 at current strip, mainly from deferred put premiums.
Type Units $/Unit $ Million
Oil (Barrels) 15,695,000 $72.50 $1,138
NGLs (Barrels) 9,490,000 $28.00 $266
Natural Gas [MCF]67,890,000 $3.50 $244
Hedge Value -$9
Total Revenue $1,639
Natural gas prices influence its valuation significantly, (266+244)/1639 = 31% of the revenue :
This would result in Earthstone generating around $1.639 billion in revenues in 2023 at current strip prices (including low-$70s WTI oil) after hedges. Earthstone’s hedges only have a slight amount of negative value in 2023 at current strip, mainly from deferred put premiums.
Type Units $/Unit $ Million
Oil (Barrels) 15,695,000 $72.50 $1,138
NGLs (Barrels) 9,490,000 $28.00 $266
Natural Gas [MCF]67,890,000 $3.50 $244
Hedge Value -$9
Total Revenue $1,639
Earthstone Energy: A Look At Its Potential 2023 Outlook:
https://seekingalpha.com/article/4563101-earthstone-energy-stock-q3-earnings-potential-2023-outlook