In what order does Ghost Dance work? PoE2

Question about Ghost Dance, in what order do we get the energy shield back? Such as...

Lets say we have 300 energy shield and ghost dance when it triggers gives us about 100 back. We get hit by a monster for 350 damage. Do we lose the 300 base ES, take 50 points of life damage and then gain 100 ES?

Or, do we take 350 dmg, -100 from ghost dance meaning we now take 250 dmg that goes to our ES brining us down to 50 ES left and take NO health dmg?

Chaos Inoculation user here would love to know : P

Thank you!