EARTHSTONE ENERGY, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts) December 31, ASSETS 2019 2018 Current assets: Cash $ 13,822 $ 376 Accounts receivable: Oil, natural gas, and natural gas liquids revenues 29,047 13,683 Joint interest billings and other, net of allowance of $83 and $134 at December 31, 2019 and 2018, respectively 6,672 4,166 Derivative asset 8,860 43,888 Prepaid expenses and other current assets 1,867 1,443 Total current assets 60,268 63,556 Oil and gas properties, successful efforts method: Proved properties 970,808 755,443 Unproved properties 260,271 266,140 Land 5,382 5,382 Total oil and gas properties 1,236,461 1,026,965 Accumulated depreciation, depletion and amortization (195,567 ) (127,256 ) Net oil and gas properties 1,040,894 899,709 Other noncurrent assets: Goodwill 17,620 17,620 Office and other equipment, net of accumulated depreciation of $3,180 and $2,490 at December 31, 2019 and 2018, respectively 1,311 662 Derivative asset 770 21,121 Operating lease right-of-use assets 3,108 — Other noncurrent assets 1,572 1,640 TOTAL ASSETS $ 1,125,543 $ 1,004,308 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 25,284 $ 26,452 Revenues and royalties payable 35,815 28,748 Accrued expenses 19,538 22,406 Asset retirement obligation 308 557 Derivative liability 6,889 528 Advances 11,505 3,174 Operating lease liability 570 — Finance lease liability 206 — Other current liability 43 — Total current liabilities 100,158 81,865 Noncurrent liabilities: Long-term debt 170,000 78,828 Asset retirement obligation 1,856 1,672 Derivative liability — 1,891 Deferred tax liability 15,154 13,489 Operating lease liability 2,539 — Finance lease liability 85 — Other noncurrent liabilities — 71 Total noncurrent liabilities 189,634 95,951 Commitments and Contingencies (Note 16) Equity: Preferred stock, $0.001 par value, 20,000,000 shares authorized; none issued or outstanding — — Class A Common Stock, $0.001 par value, 200,000,000 shares authorized; 29,421,131 and 28,696,321 issued and outstanding at December 31, 2019 and 2018, respectively 29 29 3