EARTHSTONE ENERGY, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share amounts) The accompanying notes are an integral part of these consolidated financial statements. Years Ended December 31, 2020 2019 REVENUES Oil $ 120,355  $ 171,925  Natural gas 8,567  3,913  Natural gas liquids 15,601  15,424  Total revenues 144,523  191,262  OPERATING COSTS AND EXPENSES Lease operating expense 29,131  28,683  Production and ad valorem taxes 9,411  11,871  Rig idle and termination expense 426  —  Impairment expense 64,498  —  Depreciation, depletion and amortization 96,414  69,243  General and administrative expense 28,233  27,611  Transaction costs 622  1,077  Accretion of asset retirement obligation 307  214  Exploration expense 298  653  Total operating costs and expenses 229,340  139,352  Gain on sale of oil and gas properties, net 204  3,222  (Loss) income from operations (84,613) 55,132 OTHER INCOME (EXPENSE) Interest expense, net (5,232) (6,566) Write-off of deferred financing costs —  (1,242) Gain (loss) on derivative contracts, net 59,899  (43,983) Other income (expense), net 400  (96) Total other income (expense) 55,067  (51,887) (Loss) income before income taxes (29,546) 3,245  Income tax benefit (expense) 112  (1,665) Net (loss) income (29,434) 1,580  Less: Net (loss) income attributable to noncontrolling interest (15,887) 861  Net (loss) income attributable to Earthstone Energy, Inc. $ (13,547) $ 719  Net (loss) income per common share attributable to Earthstone Energy, Inc.: Basic $ (0.45) $ 0.02  Diluted $ (0.45) $ 0.02  Weighted average common shares outstanding: Basic 29,911,625  28,983,354  Diluted 29,911,625  29,360,885  6