Latest news with #AscentResourcesUticaHoldings


Malaysian Reserve
03-06-2025
- Business
- Malaysian Reserve
ASCENT RESOURCES UTICA HOLDINGS, LLC ANNOUNCES PROPOSED OFFERING OF $500 MILLION OF NEW SENIOR NOTES
OKLAHOMA CITY, June 3, 2025 /PRNewswire/ — Ascent Resources Utica Holdings, LLC (together with its subsidiaries, 'Ascent') announced today that it, along with its wholly-owned subsidiary, ARU Finance Corporation, intends to offer subject to market and other conditions $500 million in aggregate principal amount of senior unsecured notes due 2033 (the '2033 Notes') in a private placement to eligible purchasers under Rule 144A and Regulation S of the Securities Act of 1933, as amended (the 'Securities Act') (the 'Offering'). Ascent intends to use the net proceeds from the Offering, together with cash on hand and borrowings under its revolving credit facility, to fund the redemption of all of its outstanding 8.25% senior notes due 2028 (the '2028 Notes'). Pursuant to the terms of the indenture governing the 2028 Notes, Ascent will issue a conditional notice of redemption to redeem the outstanding 2028 Notes, which redemption will be conditioned upon the closing of the Offering. The 2033 Notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws. The 2033 Notes are being offered and sold only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act and to certain non-U.S. persons outside the United States in compliance with Regulation S under the Securities Act. This press release is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, nor shall there be any sale of the 2033 Notes or any other securities in any state or jurisdiction in which such offer, solicitation or sale is unlawful. This press release does not constitute a notice of redemption under the optional redemption provisions of the indenture governing the 2028 Notes. 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. Forward-Looking and Cautionary Statements: This press release contains 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included in this press release regarding, among other things, the Offering, including the anticipated use of the net proceeds therefrom, the planned redemption of the 2028 Notes, our strategy and future operations. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control, including, but not limited to, market risks and uncertainties, including those which might affect the Offering. Should one or more of these risks or uncertainties occur, or should any underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements. All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release. Contact:Chris BentonVice President – Finance and Investor RelationsPhone: 405-252-7850Email:
Yahoo
07-05-2025
- Business
- Yahoo
ASCENT RESOURCES REPORTS FIRST QUARTER 2025 OPERATING 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. 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." 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." 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 . (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. Reaffirmed the borrowing base and elected commitments under our credit facility at $3.0 billion and $2.0 billion, respectively, in April Story Continues 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 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 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. 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