ASCENT RESOURCES REPORTS SECOND QUARTER 2025 OPERATING AND FINANCIAL RESULTS

News provided by

Ascent Resources Utica Holdings, LLC

Aug 06, 2025, 16:00 ET

Second Quarter Highlights:

Net production of 2,034 mmcfe per day, with liquids production representing 15% of total production
Cash Flows from Operations and Adjusted EBITDAX⁽¹⁾ of $407 million and $406 million, respectively
Adjusted Free Cash Flow⁽¹⁾of $112 million
Issued $500 million of new 6.625% Senior Notes due 2033 with proceeds used to refinance its existing 8.250% Senior Notes due 2028
Issued 7th Annual Sustainability Report and received a Grade A certification on 100% of its natural gas production from MiQ for the fourth consecutive year

⁽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, Aug. 6, 2025 /PRNewswire/ -- Ascent Resources Utica Holdings, LLC ("Ascent" or the "Company") today reported second 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, August 7, 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 second quarter 2025 results, Ascent's Chairman and Chief Executive Officer, Jeff Fisher said, "Our second quarter results were highlighted by exceptional performance across both drilling and completions, underscoring our continued focus on operational execution. These results were driven by faster cycle times, improved efficiencies and longer laterals. As a result of these improvements, our D&C cost decreased below our $700 annual target during the second quarter."

Fisher continued, "Moving into the second half of the year, we are well positioned to capture additional efficiency gains while continuing to maximize margins. Our business is poised to continue delivering outstanding operational and financial results, supported by a strong hedge book and capital efficient development. We remain committed to generating sustainable free cash flow and long-term value for all stakeholders."

Second Quarter 2025 Production and Financial Results

Second quarter 2025 net production averaged 2,034 mmcfe per day, consisting of 1,738 mmcf per day of natural gas, 13,033 bbls per day of oil and 36,385 bbls per day of natural gas liquids ("NGL"), putting liquids at 15% of the overall production mix for the quarter.

The second quarter 2025 realized price, including the impact of settled commodity derivatives, was $3.87 per mcfe. Excluding the impact of settled commodity derivatives, the realized price was $3.44 per mcfe in the second quarter of 2025.

For the second quarter of 2025, Ascent reported Net Income of $467 million, Adjusted Net Income of $186 million, Adjusted EBITDAX of $406 million, along with Cash Flows from Operations of $407 million and Adjusted Free Cash Flow of $112 million. Ascent incurred $254 million of total capital expenditures in the second quarter of 2025 consisting of $224 million of D&C costs, $22 million of land and leasehold costs, and $8 million of capitalized interest.

Year-to-Date 2025 Financial Results

Net production for the six months ended June 30, 2025 averaged 2,018 mmcfe per day, consisting of 1,709 mmcf per day of natural gas, 13,431 bbls per day of oil and 38,077 bbls per day of NGL.

The realized price, including the impact of settled commodity derivatives, was $4.03 per mcfe for the six months ended June 30, 2025. Excluding the impact of settled commodity derivatives, price realizations were $3.79 per mcfe for the year-to-date period.

For the six months ended June 30, 2025, Ascent reported Net Income of $104 million, Adjusted Net Income of $396 million and Adjusted EBITDAX of $836 million, along with Cash Flow from Operations of $766 million and Adjusted Free Cash Flow of $289 million. Ascent incurred a total of $465 million of capital expenditures during the six months ended June 30, 2025 consisting of $400 million of D&C costs, $50 million of land and leasehold costs, and $15 million of capitalized interest.

Balance Sheet and Liquidity

As of June 30, 2025, Ascent had total debt of approximately $2.3 billion, with $520 million of borrowings and $83 million of letters of credit issued under the credit facility. Liquidity as of June 30, 2025 was in excess of $1.4 billion, comprised of approximately $1.4 billion of available borrowing capacity under the credit facility and $8 million of cash on hand. The Company's leverage ratio at the end of the quarter was 1.49x based on a LTM Adjusted EBITDAX basis.

In early June, Ascent issued $500 million of new 6.625% senior unsecured notes due 2033 with proceeds used to redeem its existing 8.250% senior unsecured notes due 2028. This transaction enhanced its balance sheet by reducing interest expense and extending its maturity profile.

Operational Update

During the second quarter of 2025, the Company spud 15 operated wells, hydraulically fractured 22 wells, and turned-in-line 24 wells with an average lateral length of 17,238 feet. As of June 30, 2025, Ascent had 954 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. The following table summarizes the Company's natural gas and crude oil hedge position and average downside and upside prices as of June 30, 2025:

Hedge Summary
Natural Gas	Volume (mmbtu/d)	Average Downside Price	Average Upside Price
Remainder of 2025	1,630,000	$ 3.80	$ 4.44
2026	1,565,000	$ 3.75	$ 4.27
2027	875,000	$ 3.80	$ 4.10
2028	80,000	$ 3.75	$ 3.84

Crude Oil	Volume (bbls/d)	Average Downside Price	Average Upside Price
Remainder of 2025	11,000	$ 70.36	$ 73.09
2026	9,000	$ 64.63	—
2027	2,000	$ 63.38	—

Ascent also has a significant portion of its natural gas basis and propane position hedged for the remainder of 2025 and 2026. 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 and oil 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		Six Months Ended
	June 30,		June 30,
($ in thousands)	2025	2024	2025	2024

Revenues:
Natural gas	$ 489,976	$ 283,761	$ 1,050,545	$ 674,263
Oil	65,323	79,336	144,186	137,704
NGL	81,478	73,272	189,687	150,696
Commodity derivative gain (loss)	410,084	23,918	(140,935)	140,177
Total Revenues	1,046,861	460,287	1,243,483	1,102,840
Operating Expenses:
Lease operating expenses	25,647	26,438	58,292	57,066
Gathering, processing and transportation expenses	258,527	255,048	517,814	517,711
Taxes other than income	10,607	11,476	21,188	22,524
Exploration expenses	2,130	3,335	3,770	9,356
General and administrative expenses	31,287	27,741	65,568	59,222
Depreciation, depletion and amortization	173,733	186,940	346,457	373,940
Total Operating Expenses	501,931	510,978	1,013,089	1,039,819
Income (Loss) from Operations	544,930	(50,691)	230,394	63,021
Other Income (Expense):
Interest expense, net	(44,544)	(49,166)	(91,276)	(99,378)
Change in fair value of contingent payment right	(1,094)	605	(3,214)	(3,091)
Losses on purchases or exchanges of debt	(33,094)	—	(33,094)	—
Other income	663	1,206	1,578	27,127
Total Other Expense	(78,069)	(47,355)	(126,006)	(75,342)
Net Income (Loss)	$ 466,861	$ (98,046)	$ 104,388	$ (12,321)

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

	June 30,	December 31,
($ in thousands)	2025	2024

Current Assets:
Cash and cash equivalents	$ 7,564	$ 8,066
Accounts receivable – natural gas, oil and NGL sales	287,360	352,435
Accounts receivable – joint interest and other	48,927	35,106
Short-term derivative assets	50,050	179,656
Other current assets	9,814	11,054
Total Current Assets	403,715	586,317
Property and Equipment:
Natural gas and oil properties, based on successful efforts accounting	12,816,014	12,354,428
Other property and equipment	45,617	43,991
Less: accumulated depreciation, depletion and amortization	(5,709,341)	(5,364,590)
Property and Equipment, net	7,152,290	7,033,829
Other Assets:
Long-term derivative assets	3,187	11,256
Other long-term assets	60,352	54,849
Total Assets	$ 7,619,544	$ 7,686,251

Current Liabilities:
Accounts payable	$ 116,901	$ 51,811
Accrued interest	30,890	52,530
Short-term derivative liabilities	18,746	1,658
Other current liabilities	559,318	578,024
Total Current Liabilities	725,855	684,023
Long-Term Liabilities:
Long-term debt, net	2,312,162	2,339,589
Long-term derivative liabilities	119,114	46,867
Other long-term liabilities	111,378	106,146
Total Long-Term Liabilities	2,542,654	2,492,602
Member's Equity	4,351,035	4,509,626
Total Liabilities and Member's Equity	$ 7,619,544	$ 7,686,251

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

	Three Months Ended		Six Months Ended
	June 30,		June 30,
($ in thousands)	2025	2024	2025	2024

Cash Flows from Operating Activities:
Net income (loss)	$ 466,861	$ (98,046)	$ 104,388	$ (12,321)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization	173,733	186,940	346,457	373,940
(Gain) loss on commodity derivatives	(410,084)	(23,918)	140,935	(140,177)
Settlements received for commodity derivatives	79,835	156,659	86,073	335,270
Impairment of unproved natural gas and oil properties	746	2,551	1,855	8,110
Non-cash interest expense	5,563	6,311	11,127	11,685
Long-term incentive compensation	14,686	10,952	26,341	20,266
Change in fair value of contingent payment right	1,094	(605)	3,214	3,091
Losses on purchases or exchanges of debt	33,094	—	33,094	—
Other	—	(47)	—	20
Changes in operating assets and liabilities	41,755	(29,978)	12,910	(20,424)
Net Cash Provided by Operating Activities	407,283	210,819	766,394	579,460
Cash Flows from Investing Activities:
Natural gas and oil capital expenditures	(222,988)	(215,801)	(408,528)	(434,390)
Proceeds from divestiture of natural gas and oil properties	—	—	37,095	—
Cash paid for acquisitions	—	—	(33,665)	—
Additions to other property and equipment	(2,505)	(302)	(2,965)	(845)
Net Cash Used in Investing Activities	(225,493)	(216,103)	(408,063)	(435,235)
Cash Flows from Financing Activities:
Proceeds from credit facility borrowings	1,100,000	445,000	1,635,000	850,000
Repayment of credit facility borrowings	(1,065,000)	(435,000)	(1,670,000)	(960,000)
Proceeds from issuance of long-term debt	500,000	—	500,000	—
Cash paid for debt issuance costs	(8,234)	—	(8,234)	—
Repayment of long-term debt	(514,592)	—	(514,592)	—
Cash paid for debt prepayment costs	(10,576)	—	(10,576)	—
Cash received for settlements of commodity derivatives	—	55,125	—	84,605
Cash paid for distributions to Parent	(197,584)	(62,397)	(304,320)	(118,647)
Other	14,424	(407)	13,889	(1,339)
Net Cash (Used in) Provided by Financing Activities	(181,562)	2,321	(358,833)	(145,381)
Net Increase (Decrease) in Cash and Cash Equivalents	228	(2,963)	(502)	(1,156)
Cash and Cash Equivalents, Beginning of Period	7,336	8,525	8,066	6,718
Cash and Cash Equivalents, End of Period	$ 7,564	$ 5,562	$ 7,564	$ 5,562

ASCENT RESOURCES UTICA HOLDINGS, LLC SUPPLEMENTAL TABLES

NATURAL GAS, OIL AND NGL PRODUCTION AND PRICES (Unaudited)

	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2025	2024	2025	2024

Net Production Volumes:
Natural gas (mmcf)	158,139	173,777	309,351	355,209
Oil (mbbls)	1,186	1,111	2,431	1,966
NGL (mbbls)	3,311	3,146	6,892	5,642
Natural Gas Equivalents (mmcfe)	185,125	199,326	365,285	400,858

Average Daily Net Production Volumes:
Natural gas (mmcf/d)	1,738	1,910	1,709	1,952
Oil (mbbls/d)	13	12	13	11
NGL (mbbls/d)	36	35	38	31
Natural Gas Equivalents (mmcfe/d)	2,034	2,190	2,018	2,203
% Natural Gas	85 %	87 %	85 %	89 %
% Liquids	15 %	13 %	15 %	11 %

Average Sales Prices:
Natural gas ($/mcf)	$ 3.10	$ 1.63	$ 3.40	$ 1.90
Oil ($/bbl)	$ 55.08	$ 71.37	$ 59.31	$ 70.04
NGL ($/bbl)	$ 24.61	$ 23.29	$ 27.52	$ 26.71

Natural Gas Equivalents ($/mcfe)	$ 3.44	$ 2.19	$ 3.79	$ 2.40
Settlements of commodity derivatives ($/mcfe)	0.43	1.03	0.24	1.08
Average sales price, after effects of settled derivatives ($/mcfe)	$ 3.87	$ 3.22	$ 4.03	$ 3.48

CAPITAL EXPENDITURES INCURRED (Unaudited)

	Three Months Ended		Six Months Ended
	June 30,		June 30,
($ in thousands)	2025	2024	2025	2024

Capital Expenditures Incurred:
Drilling and completion costs incurred^(a)	$ 223,652	$ 156,291	$ 400,374	$ 336,124
Land and leasehold costs incurred	21,901	47,380	49,632	72,284
Capitalized interest incurred	8,297	8,395	14,825	15,528
Total Capital Expenditures Incurred^(b)	$ 253,850	$ 212,066	$ 464,831	$ 423,936


^(a)	Drilling and completion costs incurred excludes asset retirement obligations (ARO) of $0.6 million and $0.5 million for the three months ended June 30, 2025 and 2024, respectively, and $0.4 million and $0.8 million for the six months ended June 30, 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		Six Months Ended
	June 30,		June 30,
($ in thousands)	2025	2024	2025	2024

Net Income (Loss) (GAAP)	$ 466,861	$ (98,046)	$ 104,388	$ (12,321)
Adjustments to reconcile net income (loss) to Adjusted Net Income:
(Gain) loss on commodity derivatives	(410,084)	(23,918)	140,935	(140,177)
Settlements received for commodity derivatives	79,835	204,604	86,073	431,166
Change in fair value of contingent payment right	1,094	(605)	3,214	3,091
Long-term incentive compensation^(a)	14,686	10,952	26,341	20,266
Losses on purchases or exchanges of debt	33,094	—	33,094	—
Impairment of unproved natural gas and oil properties	746	2,551	1,855	8,110
Legal settlements, loss contingencies and other	—	922	—	4,092
Adjusted Net Income (Non-GAAP)	$ 186,232	$ 96,460	$ 395,900	$ 314,227

RECONCILIATION OF ADJUSTED EBITDAX (Unaudited)

	Three Months Ended		Six Months Ended
	June 30,		June 30,
($ in thousands)	2025	2024	2025	2024

Net Income (Loss) (GAAP)	$ 466,861	$ (98,046)	$ 104,388	$ (12,321)
Adjustments to reconcile net income (loss) to Adjusted EBITDAX:
Exploration expenses	2,130	3,335	3,770	9,356
Depreciation, depletion and amortization	173,733	186,940	346,457	373,940
Interest expense, net	44,544	49,166	91,276	99,378
(Gain) loss on commodity derivatives	(410,084)	(23,918)	140,935	(140,177)
Settlements received for commodity derivatives	79,835	204,604	86,073	431,166
Change in fair value of contingent payment right	1,094	(605)	3,214	3,091
Long-term incentive compensation^(a)	14,686	10,952	26,341	20,266
Losses on purchases or exchanges of debt	33,094	—	33,094	—
Legal settlements, loss contingencies and other	—	244	—	3,516
Adjusted EBITDAX (Non-GAAP)	$ 405,893	$ 332,672	$ 835,548	$ 788,215


^(a)	The expense associated with the Long-Term Incentive Plan Cash Award of $8.4 million and $6.5 million for the three months ended June 30, 2025 and 2024, respectively, and $16.5 million and $11.3 million for the six months ended June 30, 2025 and 2024, respectively, is included in these amounts.

RECONCILIATION OF LTM ADJUSTED EBITDAX (Unaudited)

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

Net Income (Loss) (GAAP)	$ 466,861	$ (362,473)	$ (134,786)	$ 92,398	$ 62,000
Adjustments to reconcile net income (loss) to Adjusted EBITDAX:
Exploration expenses	2,130	1,640	6,521	4,122	14,413
Depreciation, depletion and amortization	173,733	172,724	192,777	181,049	720,283
Interest expense, net	44,544	46,732	48,369	48,607	188,252
(Gain) loss on commodity derivatives	(410,084)	551,019	170,351	(175,725)	135,561
Settlements received for commodity derivatives	79,835	6,238	91,946	191,305	369,324
Change in fair value of contingent payment right	1,094	2,120	(5,254)	(20,291)	(22,331)
Long-term incentive compensation^(a)	14,686	11,655	9,071	5,646	41,058
Losses on purchases or exchanges of debt	33,094	—	6,472	—	39,566
Legal settlements, loss contingencies and other	—	—	—	18	18
Adjusted EBITDAX (Non-GAAP)	$ 405,893	$ 429,655	$ 385,467	$ 327,129	$ 1,548,144

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

Net Income (Loss) (GAAP)	$ (98,046)	$ 85,725	$ 757,202	$ 16,655	$ 761,536
Adjustments to reconcile net income (loss) to Adjusted EBITDAX:
Exploration expenses	3,335	6,021	5,971	1,862	17,189
Depreciation, depletion and amortization	186,940	187,000	178,749	186,486	739,175
Interest expense, net	49,166	50,212	52,714	50,043	202,135
Gain on commodity derivatives	(23,918)	(116,259)	(758,301)	(69,253)	(967,731)
Settlements received for commodity derivatives	204,604	226,562	58,169	104,269	593,604
Change in fair value of contingent payment right	(605)	3,696	651	3,760	7,502
Long-term incentive compensation^(a)	10,952	9,314	1,006	999	22,271
Legal settlements, loss contingencies and other	244	3,272	20,000	—	23,516
Adjusted EBITDAX (Non-GAAP)	$ 332,672	$ 455,543	$ 316,161	$ 294,821	$ 1,399,197

^(a)

The expense associated with the Long-Term Incentive Plan Cash Award of $8.4 million, $8.1 million, $6.8 million, $3.0 million, $6.5 million and $4.8 million for the three months ended June 30, 2025, 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)

	June 30,
($ in thousands)	2025	2024

Net Debt:
Long-term debt, net (GAAP)	$ 2,312,162	$ 2,432,601
Less: cash and cash equivalents	7,564	5,562
Net Debt	$ 2,304,598	$ 2,427,039

Net Debt to LTM Adjusted EBITDAX:
Net Debt	$ 2,304,598	$ 2,427,039
LTM Adjusted EBITDAX	$ 1,548,144	$ 1,399,197
Net Debt to LTM Adjusted EBITDAX (Non-GAAP)	1.49 x	1.73 x

RECONCILIATION OF ADJUSTED FREE CASH FLOW (Unaudited)

	Three Months Ended		Six Months Ended
	June 30,		June 30,
($ in thousands)	2025	2024	2025	2024

Net Cash Provided by Operating Activities (GAAP)	$ 407,283	$ 210,819	$ 766,394	$ 579,460
Adjustments to reconcile Net Cash Provided by Operating Activities to Adjusted Free Cash Flow:
Changes in operating assets and liabilities	(41,755)	29,978	(12,910)	20,424
Drilling and completion costs incurred	(223,652)	(156,291)	(400,374)	(336,124)
Land and leasehold costs incurred	(21,901)	(47,380)	(49,632)	(72,284)
Capitalized interest incurred	(8,297)	(8,395)	(14,825)	(15,528)
Financing commodity derivative settlements	—	47,945	—	95,896
Legal settlements, loss contingencies and other	—	(243)	—	2,741
Adjusted Free Cash Flow (Non-GAAP)^(a)	$ 111,678	$ 76,433	$ 288,653	$ 274,585


^(a)	Adjusted Free Cash Flow does not include the impact of the Long-Term Incentive Plan Cash Award of $8.4 million and $6.5 million for the three months ended June 30, 2025 and 2024, respectively, and $16.5 million and $11.3 million for the six months ended June 30, 2025 and 2024, respectively.

SOURCE Ascent Resources Utica Holdings, LLC