ESTENEUTRAL

ESTE Debt-to-Equity Ratio Analysis

0.95x

Higher than 67% of Energy sector peers

Updated 2555h ago·SEC filings & market data

Key Takeaway

Earthstone Energy's debt-to-equity ratio of 0.95x means that for every dollar of shareholder equity, the company carries 95 cents of debt—a measure of financial leverage that indicates how much the business relies on borrowed funds.

Sector Performance

67th percentile

ESTE

0.95x

Sector Median

0.62x

Sector Avg

0.85x

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Deep Analysis

At this level, the company is above the Energy sector median of 0.76x, placing it in the 58th percentile among peers, meaning it uses more debt than roughly 58% of comparable firms. Trend data for this metric is not available: the year-over-year change is listed as N/A, and the quarter-over-quarter change is also N/A, leaving no directional insight. The combination of a moderately elevated debt level and no trend history suggests a neutral risk profile—investors should monitor future changes but have no immediate signal of increasing or decreasing leverage. This metric does not contradict the overall NEUTRAL verdict, as the ratio is only slightly above the sector median and lacks trend context to justify a bullish or bearish tilt.

Frequently Asked Questions

What does the Debt-to-Equity Ratio tell investors about ESTE?

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.

How is the Debt-to-Equity Ratio calculated?

Debt-to-Equity Ratio is calculated as: Total Debt / Shareholders' Equity.

How does ESTE's Debt-to-Equity Ratio compare to its sector?

ESTE's Debt-to-Equity Ratio of 0.95x compares to a Energy sector median of 0.62x, placing it in the 67th percentile.

Who are ESTE's closest peers by Debt-to-Equity Ratio?

The closest Energy peers by Debt-to-Equity Ratio include: MTDR (0.62x), AR (0.59x), APA (0.68x), SEDG (0.81x), CNQ (0.37x).

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Learn More About Debt-to-Equity Ratio

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Debt/Equity Ratio: How Much Debt Is Too Much?

The debt to equity ratio explained: why context, interest coverage, and sector norms matter far more than the raw number when assessing debt risk.

The Formula

Total Debt / Shareholders' Equity

Why It Matters

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.