EARTHSTONE ENERGY, INC. CONSOLIDATED STATEMENTS OF EQUITY (In thousands, except share amounts) Issued Shares The accompanying notes are an integral part of these consolidated financial statements. 6 Class A Common Stock Class B Common Stock Class A Common Stock Class B Common Stock Additional Paid-in Capital Accumulated Deficit Total Earthstone Energy, Inc. Stockholders’ Equity Noncontrolling Interest Total Equity At January 1, 2018 27,584,638 36,052,169 $ 28 $ 36 $ 503,932 $ (224,822 ) $ 279,174 $ 446,558 $ 725,732 Stock-based compensation expense — — — — 7,071 — 7,071 — 7,071 Vesting of restricted stock units, net of taxes paid 511,692 — — — — — — — — Class A Common Stock retained by the Company in exchange for payment of recipient mandatory tax withholdings 169,893 — — — (1,524) — (1,524) — (1,524) Cancellation of treasury shares (169,893 ) — — — — — — — — Class B Common Stock converted to Class A Common Stock 599,991 (599,991) 1 (1) 7,594 — 7,594 (7,594) — Net income — — — — — 42,325 42,325 52,888 95,213 At December 31, 2018 28,696,321 35,452,178 $ 29 $ 35 $ 517,073 $ (182,497) $ 334,640 $ 491,852 $ 826,492 ASC 842 implementation — — — — — 67 67 99 166 Stock-based compensation expense — — — — 8,648 — 8,648 — 8,648 Vesting of restricted stock units, net of taxes paid 533,312 — — — — — — — — Vested restricted stock units retained by the Company in exchange for payment of recipient mandatory tax withholdings 203,394 — — — (1,135) — (1,135) — (1,135) Cancellation of treasury shares (203,394 ) — — — — — — — — Class B Common Stock converted to Class A Common Stock 191,498 (191,498) — — 2,660 — 2,660 (2,660) — Net income — — — — — 719 719 861 1,580 At December 31, 2019 29,421,131 35,260,680 $ 29 $ 35 $ 527,246 $ (181,711) $ 345,599 $ 490,152 $ 835,751