Earthstone Energy, Inc. Completes Sale of Bakken Assets

THE WOODLANDS, Texas–(BUSINESS WIRE)–Earthstone Energy, Inc. (NYSE: ESTE) (“Earthstone” or the “Company”),
today announced that it has closed its previously announced agreement to
sell its Bakken assets (“Transaction”) to an unaffiliated party for
approximately $27 million in cash. The effective date of the Transaction
is December 1, 2017 and is subject to certain customary closing purchase
price adjustments. The proceeds from the Transaction will be used to pay
down debt under its senior secured revolving credit facility (“Credit
Facility”).

Robert J. Anderson, Executive Vice President, Corporate Development and
Engineering of Earthstone commented, “The sale of our non-operated
Bakken assets represents a further step in Earthstone’s continued shift
in emphasis to being primarily a Midland Basin focused operator. Over
the past 18 months, we have established a position in the Midland Basin
that stands at approximately 27,000 net acres and approximately 7,000
Boepd. The divestiture of our Bakken assets allows us to continue
focusing our human and capital resources on our highly economic assets
in the Midland Basin.”

About Earthstone Energy, Inc.

Earthstone Energy, Inc. is a growth-oriented, independent energy company
engaged in developing and operating oil and gas properties. The
Company’s primary assets are located in the Midland Basin of west Texas
and the Eagle Ford trend of south Texas. Earthstone is listed on NYSE
under the symbol “ESTE.” For more information, visit the Company’s
website at www.earthstoneenergy.com.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended (the “Securities
Act”), and Section 21E of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”). Statements that are not strictly
historical statements constitute forward-looking statements and may
often, but not always, be identified by the use of such words such as
“expects,” “believes,” “intends,” “anticipates,” “plans,” “estimates,”
“potential,” “possible,” or “probable” or statements that certain
actions, events or results “may,” “will,” “should,” or “could” be taken,
occur or be achieved. Forward-looking statements are based on current
expectations and assumptions and analyses made by Earthstone and its
management in light of experience and perception of historical trends,
current conditions and expected future developments, as well as other
factors appropriate under the circumstances that involve various risks
and uncertainties that could cause actual results to differ materially
from those reflected in the statements. These risks include, but are not
limited to, those set forth in Earthstone’s annual report on Form 10-K/A
for the year ended December 31, 2016, quarterly reports on Form 10-Q,
recent current reports on Form 8-K and Form 8-K/A, and other Securities
and Exchange Commission filings. Earthstone undertakes no obligation to
revise or update publicly any forward-looking statements except as
required by law.

Contacts

Earthstone Energy, Inc.
Mark Lumpkin, Jr., 281-298-4246
Executive
Vice President – Chief Financial Officer
[email protected]
or
Scott
Thelander, 281-298-4246
Director of Finance
[email protected]