ASCENT RESOURCES REPORTS FIRST QUARTER 2025 OPERATING AND FINANCIAL RESULTS

News provided by

Ascent Resources Utica Holdings, LLC

May 07, 2025, 16:00 ET

First Quarter Highlights:

Net production of 2,002 mmcfe per day, with liquids production representing 16% of total production
Pre-hedge natural gas equivalent realized prices were $4.15 per mcfe, representing a $0.50 per mcfe premium to NYMEX natural gas prices
Cash Flows from Operations and Adjusted EBITDAX⁽¹⁾ of $359 million and $430 million, respectively
Adjusted Free Cash Flow⁽¹⁾of $177 million
Reaffirmed the borrowing base and elected commitments under our credit facility at $3.0 billion and $2.0 billion, respectively, in April

⁽¹⁾ A non-GAAP financial measure. See the non-GAAP reconciliations included in this press release for the definition of, and other important information regarding, this non-GAAP financial measure.

OKLAHOMA CITY, May 7, 2025 /PRNewswire/ -- Ascent Resources Utica Holdings, LLC ("Ascent" or the "Company") today reported first quarter 2025 operating and financial results. Additionally, Ascent announced a conference call with analysts and investors scheduled for 9 AM CT / 10 AM ET, Thursday, May 8, 2025. For more detailed information on Ascent, please refer to our financials, the latest investor presentation and additional information located on our website at https://www.ascentresources.com/investors.

Commenting on the first quarter 2025 results, Ascent's Chairman and Chief Executive Officer, Jeff Fisher said, "I am pleased to report that Ascent had another excellent quarter of operational and financial execution. Our results were highlighted by strong price realizations, lower costs and exceptional well performance. These accomplishments translated to strong financial results as we delivered $177 million of Adjusted Free Cash Flow, repaid debt and returned capital to our shareholders."

Fisher continued, "As we move through the rest of the year, we remain committed to maintaining a capital efficient development plan that is underpinned by our disciplined hedging program. Despite the recent market volatility, our prudent financial and operational strategy gives us confidence in our plan and positions the business to weather these near-term headwinds. We remain optimistic about the long-term prospects for natural gas, and believe Ascent is well positioned to maximize and grow free cash flow this year and beyond."

First Quarter 2025 Production and Financial Results

First quarter 2025 net production averaged 2,002 mmcfe per day, consisting of 1,680 mmcf per day of natural gas, 13,833 bbls per day of oil and 39,789 bbls per day of natural gas liquids ("NGL"), putting liquids at 16% of the overall production mix for the quarter.

The first quarter 2025 realized price, including the impact of settled commodity derivatives, was $4.18 per mcfe. Excluding the impact of settled commodity derivatives, the realized price was $4.15 per mcfe in the first quarter of 2025.

For the first quarter of 2025, Ascent reported a Net Loss of $362 million, Adjusted Net Income of $210 million, Adjusted EBITDAX of $430 million, along with Cash Flows from Operations of $359 million and Adjusted Free Cash Flow of $177 million. Ascent incurred $211 million of total capital expenditures in the first quarter of 2025 consisting of $177 million of D&C costs, $28 million of land and leasehold costs, and $7 million of capitalized interest.

Balance Sheet and Liquidity

As of March 31, 2025, Ascent had total debt of approximately $2.3 billion, with $485 million of borrowings and $84 million of letters of credit issued under the credit facility. Liquidity as of March 31, 2025 was in excess of $1.4 billion, comprised of more than $1.4 billion of available borrowing capacity under the credit facility and $7 million of cash on hand. The Company's leverage ratio at the end of the quarter was 1.54x based on a LTM Adjusted EBITDAX basis.

Operational Update

During the first quarter of 2025, the Company spud 18 operated wells, hydraulically fractured 19 wells, and turned-in-line 11 wells with an average lateral length of 14,566 feet. As of March 31, 2025, Ascent had 930 gross operated producing Utica wells.

Hedging Update

Ascent has significant hedges in place to reduce exposure to the volatility in commodity prices, as well as to protect its expected operating cash flow. As of March 31, 2025, Ascent had hedged 1,633,000 mmbtu per day of natural gas production for the remainder of 2025 at an average downside price of $3.80 per mmbtu, 1,475,000 mmbtu per day in 2026 at an average downside price of $3.74 per mmbtu, and 568,000 mmbtu per day in 2027 at an average downside price of $3.76 per mmbtu. Additionally, Ascent has hedged 11,000 bbls per day of crude oil production at an average downside price of $70.36 per bbl for the remainder of 2025. Ascent also has a significant portion of its natural gas basis and propane position hedged for the remainder of 2025. Please reference the financial statements for additional detail on Ascent's hedge position.

About Ascent Resources

Ascent is one of the largest private producers of natural gas in the United States and is focused on acquiring, developing, and operating natural gas and oil properties located in the Utica Shale in southern Ohio. With a continued focus on good corporate citizenship, Ascent is committed to delivering cleaner burning, affordable energy to our country and the world, while reducing environmental impacts.

Contact:
Chris Benton
Vice President – Finance and Investor Relations
405-252-7850
chris.benton@ascentresources.com

This news release contains forward-looking statements within the meaning of US federal securities laws. Forward-looking statements express views of Ascent regarding future plans and expectations. Forward-looking statements in this news release include, but are not limited to, statements regarding future operations, business strategy, liquidity and cash flows of Ascent. These statements are based on numerous assumptions and are subject to known and unknown risks and uncertainties, including, commodity price volatility, inherent uncertainty in estimating natural gas, oil and NGL reserves, environmental and regulatory risks, availability of capital, and the other risks described in Ascent's most recent investor presentation provided at www.ascentresources.com/investors. Actual future results may vary materially from those expressed or implied in this news release and Ascent's business, financial condition, results of operations and cash flow could be materially and adversely affected by such risks and uncertainties. As a result, forward-looking statements should be understood to be only predictions and statements of Ascent's current beliefs; they are not guarantees of performance.

ASCENT RESOURCES UTICA HOLDINGS, LLC CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

	Three Months Ended
	March 31,
($ in thousands)	2025	2024

Revenues:
Natural gas	$ 560,569	$ 390,502
Oil	78,863	58,368
NGL	108,209	77,424
Commodity derivative gain (loss)	(551,019)	116,259
Total Revenues	196,622	642,553
Operating Expenses:
Lease operating expenses	32,645	30,628
Gathering, processing and transportation expenses	259,287	262,663
Taxes other than income	10,581	11,048
Exploration expenses	1,640	6,021
General and administrative expenses	34,281	31,481
Depreciation, depletion and amortization	172,724	187,000
Total Operating Expenses	511,158	528,841
Income (Loss) from Operations	(314,536)	113,712
Other Income (Expense):
Interest expense, net	(46,732)	(50,212)
Change in fair value of contingent payment right	(2,120)	(3,696)
Other income	915	25,921
Total Other Expense	(47,937)	(27,987)
Net Income (Loss)	$ (362,473)	$ 85,725

ASCENT RESOURCES UTICA HOLDINGS, LLC CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

	March 31,	December 31,
($ in thousands)	2025	2024

Current Assets:
Cash and cash equivalents	$ 7,336	$ 8,066
Accounts receivable – natural gas, oil and NGL sales	352,834	352,435
Accounts receivable – joint interest and other	37,746	35,106
Short-term derivative assets	4,851	179,656
Other current assets	11,368	11,054
Total Current Assets	414,135	586,317
Property and Equipment:
Natural gas and oil properties, based on successful efforts accounting	12,560,545	12,354,428
Other property and equipment	44,896	43,991
Less: accumulated depreciation, depletion and amortization	(5,536,714)	(5,364,590)
Property and Equipment, net	7,068,727	7,033,829
Other Assets:
Long-term derivative assets	3,758	11,256
Other long-term assets	48,570	54,849
Total Assets	$ 7,535,190	$ 7,686,251

Current Liabilities:
Accounts payable	$ 76,915	$ 51,811
Accrued interest	49,971	52,530
Short-term derivative liabilities	297,368	1,658
Other current liabilities	552,722	578,024
Total Current Liabilities	976,976	684,023
Long-Term Liabilities:
Long-term debt, net	2,273,515	2,339,589
Long-term derivative liabilities	126,111	46,867
Other long-term liabilities	106,516	106,146
Total Long-Term Liabilities	2,506,142	2,492,602
Member's Equity	4,052,072	4,509,626
Total Liabilities and Member's Equity	$ 7,535,190	$ 7,686,251

ASCENT RESOURCES UTICA HOLDINGS, LLC CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Three Months Ended
	March 31,
($ in thousands)	2025	2024

Cash Flows from Operating Activities:
Net income (loss)	$ (362,473)	$ 85,725
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization	172,724	187,000
(Gain) loss on commodity derivatives	551,019	(116,259)
Settlements received for commodity derivatives	6,238	178,611
Impairment of unproved natural gas and oil properties	1,109	5,559
Non-cash interest expense	5,564	5,374
Long-term incentive compensation	11,655	9,314
Change in fair value of contingent payment right	2,120	3,696
Other	—	67
Changes in operating assets and liabilities	(28,845)	9,554
Net Cash Provided by Operating Activities	359,111	368,641
Cash Flows from Investing Activities:
Natural gas and oil capital expenditures	(185,540)	(218,589)
Proceeds from divestiture of natural gas and oil properties	37,095	—
Cash paid for acquisitions	(33,665)	—
Additions to other property and equipment	(460)	(543)
Net Cash Used in Investing Activities	(182,570)	(219,132)
Cash Flows from Financing Activities:
Proceeds from credit facility borrowings	535,000	405,000
Repayment of credit facility borrowings	(605,000)	(525,000)
Cash received for settlements of commodity derivatives	—	29,480
Cash paid for distributions to Parent	(106,736)	(56,250)
Other	(535)	(932)
Net Cash Used in Financing Activities	(177,271)	(147,702)
Net Increase (Decrease) in Cash and Cash Equivalents	(730)	1,807
Cash and Cash Equivalents, Beginning of Period	8,066	6,718
Cash and Cash Equivalents, End of Period	$ 7,336	$ 8,525

ASCENT RESOURCES UTICA HOLDINGS, LLC SUPPLEMENTAL TABLES NATURAL GAS, OIL AND NGL PRODUCTION AND PRICES (Unaudited)

	Three Months Ended
	March 31,
	2025	2024

Net Production Volumes:
Natural gas (mmcf)	151,212	181,432
Oil (mbbls)	1,245	855
NGL (mbbls)	3,581	2,496
Natural Gas Equivalents (mmcfe)	180,160	201,532

Average Daily Net Production Volumes:
Natural gas (mmcf/d)	1,680	1,994
Oil (mbbls/d)	14	9
NGL (mbbls/d)	40	27
Natural Gas Equivalents (mmcfe/d)	2,002	2,215
% Natural Gas	84 %	90 %
% Liquids	16 %	10 %

Average Sales Prices:
Natural gas ($/mcf)	$ 3.71	$ 2.15
Oil ($/bbl)	$ 63.34	$ 68.33
NGL ($/bbl)	$ 30.22	$ 31.02

Natural Gas Equivalents ($/mcfe)	$ 4.15	$ 2.61
Settlements of commodity derivatives ($/mcfe)	0.03	1.12
Average sales price, after effects of settled derivatives ($/mcfe)	$ 4.18	$ 3.73

CAPITAL EXPENDITURES INCURRED (Unaudited)

	Three Months Ended
	March 31,
($ in thousands)	2025	2024

Capital Expenditures Incurred:
Drilling and completion costs incurred^(a)	$ 176,722	$ 179,833
Land and leasehold costs incurred	27,731	24,904
Capitalized interest incurred	6,528	7,133
Total Capital Expenditures Incurred^(b)	$ 210,981	$ 211,870


^(a)	Drilling and completion costs incurred excludes asset retirement obligations (ARO) of $(0.1) million and $0.3 million for the three months ended March 31, 2025 and 2024, respectively.
^(b)	Excludes acquisition and divestiture activity.

ASCENT RESOURCES UTICA HOLDINGS, LLC
NON-GAAP FINANCIAL MEASURES

Ascent uses certain non-GAAP measures as a supplement to its financial results prepared in accordance with generally accepted accounting principles (GAAP). These non-GAAP measures include Adjusted Net Income, Adjusted EBITDAX, Last Twelve Months (LTM) Adjusted EBITDAX, Net Debt and Adjusted Free Cash Flow. A reconciliation of each financial measure to its most directly comparable GAAP financial measure is included in the tables below. Ascent's management team believes these non-GAAP measures are useful to an investor in evaluating Ascent's financial performance because (a) management uses these financial measures to evaluate operating performance, in presentations to its Board of Managers and as a basis for strategic planning and forecasting, (b) these financial measures are more comparable to estimates used by analysts, and (c) items excluded are one-time items, non-cash items or items whose timing or amount cannot be reasonably estimated.

Ascent believes these non-GAAP measures provide meaningful information to its investors and lenders; however, they should not be used as a substitute for measures of performance that are calculated in accordance with GAAP. These non-GAAP measures, as used and defined by Ascent below, may not be comparable to similarly titled measures employed by other companies.

Adjusted Net Income: Adjusted Net Income is defined as net income (loss) before the revenue impact of changes in the fair value of commodity derivative instruments prior to settlement, unrealized (gain) loss on interest rate derivatives, change in fair value of contingent payment right, long-term incentive compensation, (gains) losses on purchases or exchanges of debt, impairment of unproved natural gas and oil properties and certain items management believes affect the comparability of results or that are not indicative of trends in the ongoing business. Adjusted Net Income is a supplemental measure of operating performance monitored by management that is not defined under GAAP and does not represent, and should not be considered as, an alternative to net income (loss), as determined by GAAP.

Adjusted EBITDAX and LTM Adjusted EBITDAX: Adjusted EBITDAX is defined as net income (loss) before exploration expenses, depreciation, depletion and amortization expense, interest expense (net), the revenue impact of changes in the fair value of commodity derivative instruments prior to settlement, change in fair value of contingent payment right, long-term incentive compensation, (gains) losses on purchases or exchanges of debt and certain items management believes affect the comparability of results or that are not indicative of trends in the ongoing business. Adjusted EBITDAX is a supplemental measure of operating performance monitored by management that is not defined under GAAP and does not represent, and should not be considered as, an alternative to net income (loss), as determined by GAAP.

Net Debt: Net Debt is defined as long-term debt, net, less cash and cash equivalents. Management uses Net Debt to determine our outstanding debt obligations that would not be readily satisfied by our cash and cash equivalents on hand. Net Debt does not represent, and should not be considered as, an alternative to total debt, as determined by GAAP.

Adjusted Free Cash Flow: Adjusted Free Cash Flow is defined as net cash provided by (used in) operating activities adjusted for changes in operating assets and liabilities, drilling and completion costs incurred (excluding ARO), land and leasehold costs incurred, capitalized interest incurred, financing commodity derivative settlements and certain items management believes affect the comparability of results or that are not indicative of trends in the ongoing business. Adjusted Free Cash Flow is an indicator of a company's ability to generate funding to maintain or expand its asset base, make equity distributions and repurchase or extinguish debt. Adjusted Free Cash Flow is a supplemental measure of liquidity monitored by management that is not defined under GAAP and that does not represent, and should not be considered as, an alternative to net cash provided by (used in) operating activities, as determined by GAAP.

RECONCILIATION OF ADJUSTED NET INCOME (Unaudited)

	Three Months Ended
	March 31,
($ in thousands)	2025	2024

Net Income (Loss) (GAAP)	$ (362,473)	$ 85,725
Adjustments to reconcile net income (loss) to Adjusted Net Income:
(Gain) loss on commodity derivatives	551,019	(116,259)
Settlements received for commodity derivatives	6,238	226,562
Unrealized gain on interest rate derivatives	—	(102)
Change in fair value of contingent payment right	2,120	3,696
Long-term incentive compensation^(a)	11,655	9,314
Impairment of unproved natural gas and oil properties	1,109	5,559
Legal settlements, loss contingencies and other	—	3,272
Adjusted Net Income (Non-GAAP)	$ 209,668	$ 217,767

RECONCILIATION OF ADJUSTED EBITDAX (Unaudited)

	Three Months Ended
	March 31,
($ in thousands)	2025	2024

Net Income (Loss) (GAAP)	$ (362,473)	$ 85,725
Adjustments to reconcile net income (loss) to Adjusted EBITDAX:
Exploration expenses	1,640	6,021
Depreciation, depletion and amortization	172,724	187,000
Interest expense, net	46,732	50,212
(Gain) loss on commodity derivatives	551,019	(116,259)
Settlements received for commodity derivatives	6,238	226,562
Change in fair value of contingent payment right	2,120	3,696
Long-term incentive compensation^(a)	11,655	9,314
Legal settlements, loss contingencies and other	—	3,272
Adjusted EBITDAX (Non-GAAP)	$ 429,655	$ 455,543


^(a)	The expense associated with the Long-Term Incentive Plan Cash Award of $8.1 million and $4.8 million for the three months ended March 31, 2025 and 2024, respectively, is included in these amounts.

RECONCILIATION OF LTM ADJUSTED EBITDAX (Unaudited)

	Three Months Ended				Twelve Months Ended
	March 31,	December 31,	September 30,	June 30,	March 31,
($ in thousands)	2025	2024	2024	2024	2025

Net Income (Loss) (GAAP)	$ (362,473)	$ (134,786)	$ 92,398	$ (98,046)	$ (502,907)
Adjustments to reconcile net income (loss) to Adjusted EBITDAX:
Exploration expenses	1,640	6,521	4,122	3,335	15,618
Depreciation, depletion and amortization	172,724	192,777	181,049	186,940	733,490
Interest expense, net	46,732	48,369	48,607	49,166	192,874
(Gain) loss on commodity derivatives	551,019	170,351	(175,725)	(23,918)	521,727
Settlements received for commodity derivatives	6,238	91,946	191,305	204,604	494,093
Change in fair value of contingent payment right	2,120	(5,254)	(20,291)	(605)	(24,030)
Long-term incentive compensation^(a)	11,655	9,071	5,646	10,952	37,324
Losses on purchases or exchanges of debt	—	6,472	—	—	6,472
Legal settlements, loss contingencies and other	—	—	18	244	262
Adjusted EBITDAX (Non-GAAP)	$ 429,655	$ 385,467	$ 327,129	$ 332,672	$ 1,474,923

	Three Months Ended				Twelve Months Ended
	March 31,	December 31,	September 30,	June 30,	March 31,
($ in thousands)	2024	2023	2023	2023	2024

Net Income (GAAP)	$ 85,725	$ 757,202	$ 16,655	$ 250,036	$ 1,109,618
Adjustments to reconcile net income to Adjusted EBITDAX:
Exploration expenses	6,021	5,971	1,862	4,185	18,039
Depreciation, depletion and amortization	187,000	178,749	186,486	175,677	727,912
Interest expense, net	50,212	52,714	50,043	47,818	200,787
Gain on commodity derivatives	(116,259)	(758,301)	(69,253)	(348,982)	(1,292,795)
Settlements received for commodity derivatives	226,562	58,169	104,269	126,929	515,929
Change in fair value of contingent payment right	3,696	651	3,760	2,039	10,146
Long-term incentive compensation^(a)	9,314	1,006	999	859	12,178
Losses on purchases or exchanges of debt	—	—	—	26,900	26,900
Legal settlements, loss contingencies and other	3,272	20,000	—	—	23,272
Adjusted EBITDAX (Non-GAAP)	$ 455,543	$ 316,161	$ 294,821	$ 285,461	$ 1,351,986


^(a)	The expense associated with the Long-Term Incentive Plan Cash Award of $8.1 million, $6.8 million, $3.0 million, $6.5 million and $4.8 million for the three months ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024 and March 31, 2024, respectively, is included in these amounts. Ascent did not recognize any expense associated with the Cash Award in 2023.

RECONCILIATION OF NET DEBT & NET DEBT TO LTM ADJUSTED EBITDAX (Unaudited)

	March 31,
($ in thousands)	2025	2024

Net Debt:
Long-term debt, net	$ 2,273,515	$ 2,418,175
Less: cash and cash equivalents	7,336	8,525
Net Debt	$ 2,266,179	$ 2,409,650

Net Debt to LTM Adjusted EBITDAX:
Net Debt	$ 2,266,179	$ 2,409,650
LTM Adjusted EBITDAX (Non-GAAP)	$ 1,474,923	$ 1,351,986
Net Debt to LTM Adjusted EBITDAX	1.54 x	1.78 x

RECONCILIATION OF ADJUSTED FREE CASH FLOW (Unaudited)

	Three Months Ended
	March 31,
($ in thousands)	2025	2024

Net Cash Provided by Operating Activities (GAAP)	$ 359,111	$ 368,641
Adjustments to reconcile Net Cash Provided by Operating Activities to Adjusted Free Cash Flow:
Changes in operating assets and liabilities	28,845	(9,554)
Drilling and completion costs incurred	(176,722)	(179,833)
Land and leasehold costs incurred	(27,731)	(24,904)
Capitalized interest incurred	(6,528)	(7,133)
Financing commodity derivative settlements	—	47,951
Legal settlements, loss contingencies and other	—	2,984
Adjusted Free Cash Flow (Non-GAAP)^(a)	$ 176,975	$ 198,152


^(a)	Adjusted Free Cash Flow does not include the impact of the Long-Term Incentive Cash Award of $8.1 million and $4.8 million for the three months ended March 31, 2025 and 2024, respectively.

SOURCE Ascent Resources Utica Holdings, LLC