Here's Why Earthstone Energy Inc Stock Is Slumping Today

Shares of Earthstone Energy (NYSE: ESTE) slumped on Thursday, falling 14% as of 11:28 a.m. EDT, following an operations update and the announcement of a dilutive equity offering.

Last night Earthstone Energy reported that its estimated production for the third quarter averaged 9,671 barrels of oil equivalent per day (BOE/D). That's less than the company expected because it had to shut-in three wells for 44 days while it completed some offset wells, which resulted in the temporary loss of 425 BOE/D. In addition to that, Hurricane Harvey forced the company to shut-in some production and stop flaring gas, resulting in another 64 BOE/D in lost output. As a result of these issues and the sale of some non-core assets, Earthstone Energy expects its 2017 production exit rate to be 500 BOE/D below its initial estimate.

Image source: Getty Images.

Source: Fool.com