Company profile

Ticker
ESTE
Exchange
CEO
Frank Alan Lodzinski
Employees
Incorporated in
Location
Fiscal year end
Former names
Basic Earth Science Systems Inc
SEC CIK
IRS number
840592823

ESTE stock data

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FINRA relative short interest over last month (20 trading days) ?

Calendar

11 Mar 20
3 Apr 20
31 Dec 20

News

Company financial data Financial data

Quarter (USD) Dec 19 Sep 19 Jun 19 Mar 19
Revenue 66.79M 39.2M 44.54M 40.73M
Net income -2.62M 11.77M 8.78M -17.2M
Diluted EPS -0.1 0.41 0.3 -0.6
Net profit margin -3.93% 30.02% 19.70% -42.24%
Operating income 22.78M 9.56M 12.35M 10.44M
Net change in cash 4.01M 4.03M 5.36M 50K
Cash on hand 13.82M 9.82M 5.79M 426K
Annual (USD) Dec 19 Dec 18 Dec 17 Dec 16
Revenue 191.26M 165.36M 108.08M 42.27M
Net income 719K 42.33M -12.51M -54.54M
Diluted EPS 0.02 1.5 -0.53 -2.92
Net profit margin 0.38% 25.60% -11.58% -129%
Operating income 55.13M 44.06M -49.88M -46.02M
Net change in cash 13.45M -22.58M 12.76M -13.06M
Cash on hand 13.82M 376K 22.96M 10.2M

Financial data from company earnings reports

Date Owner Security Transaction Code $Price #Shares $Value #Remaining
31 Mar 20 Lodzinski Frank Alan Class A Common Stock Payment of exercise Dispose F 1.77 19,038 33.7K 204,662
31 Mar 20 Oviedo Tony Class A Common Stock Payment of exercise Dispose F 1.77 5,564 9.85K 144,682
31 Mar 20 Lumpkin Mark Jr Class A Common Stock Payment of exercise Dispose F 1.77 5,319 9.41K 167,747
30 Jan 20 Zachary G. Urban Class A Common Stock Grant Aquire A 0 28,600 0 32,015
30 Jan 20 Singleton Ray J JR Class A Common Stock Grant Aquire A 0 28,600 0 573,760
54.0% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 64 59 +8.5%
Opened positions 11 10 +10.0%
Closed positions 6 8 -25.0%
Increased positions 30 21 +42.9%
Reduced positions 12 17 -29.4%
13F shares
Current Prev Q Change
Total value 128.65M 44.95M +186.2%
Total shares 15.61M 13.83M +12.8%
Total puts 0 0
Total calls 0 0
Total put/call ratio
Largest owners
Shares Value Change
N Price T Rowe Associates 1.65M $10.45M -24.8%
BLK BlackRock 1.31M $8.32M +6.4%
Dimensional Fund Advisors 1.29M $8.15M +4.6%
Investment Counselors Of Maryland 1.24M $7.83M +1.7%
Hotchkis & Wiley Capital Management 1.22M $7.71M +15.3%
American Century Companies 1.15M $7.29M +3.1%
WFC Wells Fargo & Company 906.77K $5.74M -0.3%
JBF Capital 814.95K $5.16M -9.5%
Vanguard 735.06K $4.65M +14.9%
Russell Investments 732K $4.63M +14252.9%
Largest transactions
Shares Bought/sold Change
Russell Investments 732K +726.9K +14252.9%
N Price T Rowe Associates 1.65M -545.37K -24.8%
Solas Capital Management 455.3K +404.03K +788.0%
Boston Partners 266.48K +266.48K NEW
Hotchkis & Wiley Capital Management 1.22M +161.17K +15.3%
Royce & Associates 130K +130K NEW
JPM JPMorgan Chase & Co. 29.1K -124.85K -81.1%
Vanguard 735.06K +95.11K +14.9%
Bridgeway Capital Management 438.4K +86.5K +24.6%
JBF Capital 814.95K -85.62K -9.5%

Financial report summary

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Risks
  • Oil, natural gas and natural gas liquids prices are volatile. Their prices at times since 2014 have adversely affected, and in the future may adversely affect, our business, financial condition and results of operations and our ability to meet our capital expenditure obligations and financial commitments. Volatile and lower prices may also negatively impact our stock price.
  • As a result of low prices for oil, natural gas and natural gas liquids, we may be required to take significant future write-downs of the financial carrying values of our properties.
  • Any significant reduction in our borrowing base under the Credit Agreement as a result of a periodic borrowing base redetermination or otherwise may negatively impact our liquidity and, consequently, our ability to fund our operations, including capital expenditures, and we may not have sufficient funds to repay borrowings under the Credit Agreement or any other obligation if required as a result of a borrowing base redetermination.
  • Unless we replace our reserves, our production and estimated reserves will decline, which may adversely affect our financial condition, results of operations and/or cash flows.
  • Estimates of proved oil and natural gas reserves involve assumptions and any material inaccuracies in these assumptions will materially affect the quantities and the value of those reserves.
  • The standardized measure of discounted future net cash flows from our estimated proved reserves may not be the same as the current market value of our estimated oil and natural gas reserves.
  • Our development and exploratory drilling efforts and our well operations may not be profitable or achieve our targeted returns.
  • Properties we acquire may not produce as projected and we may be unable to determine reserve potential, identify liabilities associated with the properties that we acquire or obtain protection from sellers against such liabilities.
  • Future drilling and completion activities associated with identified drilling locations may be adversely affected by factors that could materially alter the occurrence or timing of their drilling and completion, which in certain instances could prevent production prior to the expiration date of mineral leases for such locations.
  • Many of our properties are in areas that may have been partially depleted or drained by offset wells and certain of our wells may be adversely affected by actions we or other operators may take when drilling, completing, or operating wells that we or they own.
  • Multi-well pad drilling may result in volatility in our operating results.
  • The unavailability or high cost of additional drilling rigs, equipment, supplies, personnel and oilfield services could adversely affect our ability to execute our development plans within our budget and on a timely basis.
  • Our acquisition, development and exploitation projects require substantial capital expenditures. We may be unable to obtain required capital or financing on satisfactory terms, which could limit growth or lead to a decline in our reserves.
  • A negative shift in investor sentiment towards the oil and gas industry could adversely affect our ability to raise equity and debt capital.
  • We have incremental cash inflows and outflows as a result of our hedging activities. To the extent we are unable to obtain future hedges at attractive prices or our derivative activities are not effective, our cash flows and financial condition may be adversely impacted.
  • Derivatives reform legislation and related regulations could have an adverse effect on our ability to hedge risks associated with our business.
  • The oil and natural gas industry is highly competitive, and our small size puts us at a disadvantage in competing for resources.
  • Failure to complete additional acquisitions could limit our potential growth.
  • Acquisitions involve a number of risks, including the risk that we will discover unanticipated liabilities or other problems associated with the acquired business or property.
  • We may incur substantial losses and be subject to substantial liability claims as a result of our oil and natural gas operations, including our drilling operations.
  • The nature of our business and assets exposes us to significant compliance costs and liabilities.
  • Federal, state and local legislation and regulatory initiatives relating to hydraulic fracturing could result in increased costs and additional operating restrictions or delays.
  • Extreme weather conditions could adversely affect our ability to conduct drilling, completion and production activities in the areas where we operate.
  • Climate change legislation or regulations restricting emissions of "greenhouse gases" could result in increased operating costs and reduced demand for the oil, natural gas and natural gas liquids we produce.
  • Our oil, natural gas and natural gas liquids are sold in a limited number of geographic markets so an oversupply in any of those areas could have a material negative effect on the price we receive.
  • We may incur more taxes and certain of our projects may become uneconomic if certain federal income tax deductions currently available with respect to oil and natural gas exploration and development are eliminated as a result of future legislation.
  • Our operations are substantially dependent on the availability, use and disposal of water. New legislation and regulatory initiatives or restrictions relating to water disposal wells could have a material adverse effect on our future business, financial condition, operating results and prospects.
  • Any change to government regulation or administrative practices may have a negative impact on our ability to operate and our profitability.
  • The marketability of our production is dependent upon gathering systems, transportation facilities and processing facilities that we do not own or control. If these facilities or systems are unavailable, our oil and natural gas production can be interrupted and our revenues reduced.
  • We operate or participate in oil and natural gas leases with third parties who may not be able to fulfill their commitments to our projects.
  • Use of debt financing may adversely affect our strategy.
  • Non-operated properties are controlled by third parties that may not allow us to proceed with our planned capital expenditures. Activities on our operated properties could also be limited or subject to penalties.
  • Because we cannot control activities on properties we do not operate, we cannot directly control the timing of exploitation. If we are unable to fund required capital expenditures with respect to non-operated properties, our interests in those properties may be reduced or forfeited.
  • A cyber incident could result in information theft, data corruption, operational disruption and/or financial loss.
  • We are subject to litigation relating to Bold and the Bold Transaction, and we may be subject to additional litigation, any of which could adversely affect our business, financial condition and operating results.
  • The loss or unavailability of any of our executive officers or other key employees could have a material adverse effect on our business.
  • We are a holding company and the sole manager of EEH. Our only material asset is our equity interest in EEH and, accordingly, we are dependent upon distributions from EEH to cover our corporate and other overhead expenses and pay taxes.
  • We are a “controlled company” within the meaning of the NYSE rules and, as a result, qualify for and rely on exemptions from certain corporate governance requirements.
  • Our principal stockholders hold a substantial majority of the voting power of our Class A Common Stock and Class B Common Stock.
  • Future sales of our Class A Common Stock in the public market, or the perception that such sales may occur, could reduce our stock price, and any additional capital raised by us through the sale of equity may dilute your ownership in us.
  • Bold Holdings and its permitted transferees have the right to exchange their EEH Units and shares of Class B Common Stock for our Class A Common Stock pursuant to the terms of the EEH LLC Agreement.
  • We have no plans to pay dividends on our Class A Common Stock. Stockholders may not receive funds without selling their shares.
  • Our Board of Directors can, without stockholder approval, cause preferred stock to be issued on terms that could adversely affect our common stockholders.
  • The price of our Class A Common Stock may fluctuate significantly, which could negatively affect us and holders of our Class A Common Stock.
  • We are subject to certain requirements of Section 404 of the Sarbanes-Oxley Act. If we fail to comply with the requirements of Section 404 or if we or our auditors identify and report material weaknesses in internal control over financial reporting, our investors may lose confidence in our reported information and our stock price may be negatively affected.
  • Anti-takeover provisions could make a third-party acquisition difficult.
  • Our stockholders may act by unilateral written consent.
Management Discussion
  • For the year ended December 31, 2019, oil revenues increased by approximately $31.2 million or 22% relative to the comparable period in 2018. Of the increase, approximately $39.9 million was attributable to increased sales volumes, partially offset by a decrease of $8.7 million due to lower realized prices. Our average realized price per Bbl decreased from $59.40 for the year ended December 31, 2018 to $55.71 or 6% for the year ended December 31, 2019. We had a net increase in the volume of oil sold of 716 MBbls or 30%, primarily due to new wells brought online, partially offset by the impact of divestitures in the latter half of 2018.
  • For the year ended December 31, 2019, natural gas revenues decreased by $3.5 million or 47% relative to the comparable period in 2018. Of the decrease, approximately $4.4 million was attributable to lower realized prices, partially offset by an increase of $0.9 million attributable to increased sales volumes. Our average realized price per Mcf decreased 60% from $2.05 for the year ended December 31, 2018 to $0.82 for the year ended December 31, 2019. Approximately 96% of our natural gas sales volumes for the year was from the Midland Basin, which, since the fourth quarter of 2018, has been experiencing a lack of sufficient pipeline transportation that is connected to markets which are purchasing the gas. This has resulted in negative gas prices at times, whereby the seller is actually paying the purchaser to take the gas. The total volume of natural gas produced and sold increased 1,150 MMcf or 32% primarily due to new wells brought online, partially offset by the impact of 2018 gas well divestitures.
  • For the year ended December 31, 2019, natural gas liquids revenues decreased by $1.8 million or 10% relative to the comparable period in 2018. Of the decrease, approximately $7.3 million was attributable to lower realized prices, partially offset by an increase of $5.5 million attributable to increased sales volumes. Approximately 94% of our natural gas liquids sales volumes for the period was from the Midland Basin. Since the fourth quarter of 2018, the price for fractionated natural gas liquids has decreased, and after also taking into account the cost to transport our natural gas liquids, has resulted in significant decreases in prices received. The volume of natural gas liquids produced and sold increased by 367 MBbls or 56%, primarily due to new wells brought online, partially offset by the impact of divestitures in the latter half of 2018.
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