Earthstone Energy, Inc. Announces Sale of Bakken Assets

THE WOODLANDS, Texas–(BUSINESS WIRE)–Earthstone Energy, Inc. (NYSE: ESTE) (“Earthstone” or the “Company”),
today announced that it has entered into a definitive agreement to sell
its Bakken assets for approximately $27 million in cash to an
unaffiliated party. The transaction is subject to customary closing
conditions and adjustments. The effective date will be December 1, 2017
and is expected to close by year-end 2017.

Robert J. Anderson, Executive Vice President, Corporate Development and
Engineering of Earthstone commented, “The sale of our Bakken assets,
which are non-operated, 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 traded 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
for the year ended December 31, 2016, quarterly reports on Form 10-Q,
recent current reports on Form 8-K, 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
Earthstone
Energy, Inc.
Scott Thelander, 281-298-4246
Director of Finance
[email protected]