The fourth quarter of 2019 saw a drop in earnings forAscent Resources Utica Holdings, LLC in Oklahoma City but its overall 2019 net income saw a huge turnaround compared to 2018.
The company reported fourth quarter net income of $65 million and adjusted net income of $98 million compared to net income of $124 million and adjusted net income of $132 million in the fourth quarter of 2018.
Its fourth quarter EBITDAX was $341 million, or 7% more than the $318 million reported a year ago.
For the full year 2019, Ascent reported net income of $466 million and adjusted net income of $328 million, compared to
a net loss of $4 million and adjusted net income of $244 million in the full year 2018. Adjusted EBITDAX for the full
year was $1.2 billion, which is a 36% increase compared to $844 million for full year 2018.
In announcing the end-of-the-year results, Ascent pointed out:
◦ Cash flows from operating activities were $221 million, and free cash flow was $17 million
◦ Net income was $65 million, adjusted net income was $98 million and adjusted EBITDAX was $341 million
◦ Net production averaged 2,272 mmcfe per day
◦ Net liquids production averaged over 47,000 bbl per day
◦ Extended maturity of $2.5 billion revolving credit facility to April 2024
◦ Reaffirmed $2.0 billion borrowing base on revolving credit facility
Full Year 2019 Highlights:
◦ Net income was $466 million, adjusted net income was $328 million and adjusted EBITDAX was $1.2 billion
◦ Net production averaged 1,970 mmcfe per day
◦ SEC proved reserves grew 21% year-over-year to 9.3 tcfe
◦ Year-end leverage decreased to less than 2.5x net debt / LTM adjusted EBITDAX
2020 Outlook:
◦ Full year 2020 capital expenditures are projected to range from $700 to $800 million, excluding capitalized interest
◦ Net production in 2020 is projected to average 2.0 to 2.3 bcfe per day
◦ Free cash flow for 2020 is expected at current commodity prices and rig activity.
“Ascent successfully delivered on our operational and financial objectives in 2019,” said Jeff Fisher, Chairman and Chief
Executive Officer. “Our results reflect the strength of the Southern Utica and the talents of our team to develop this
prolific asset.”
During the fourth quarter of 2019, Ascent generated positive free cash flow of $17 million. This is Ascent’s first quarter of positive free cash flow, and the Company stated it will generate increasing amounts of free cash flow in 2020 and beyond.
As previously reported, Ascent amended its $2.5 billion credit facility with its lenders in order to extend the maturity of
the facility to April 2024. Additionally, the bank group, led by JPMorgan Chase NA as administrative agent, reaffirmed
the borrowing base at $2.0 billion.
“Our team has led the industry in efficiently building the seventh largest producer of natural gas in the United States, capable of generating substantial free cash flow into the future. Our focus has shifted from production growth to free cash flow generation and liquidity growth,” said Fisher.
Source: Business Wire
