Ascent Resources improves earnings


Oklahoma City’s Ascent Resources Utica Holdings, LLC reported first quarter 2020 net income of $85 million and adjusted net income of $36 million, a turnaround from the net loss of $85 million and adjusted net income of $79 million a year earlier.

Ascent is the seventh largest producer of natural gas in the United States in terms of daily production and is focused on acquiring, exploring for, developing, producing, and operating natural gas and oil properties located in the Utica Shale in Southeast Ohio.

The Company’s adjusted EBITDAX for the first quarter of 2020 was $247 million, compared to $261 million for the first quarter of 2019. Cash flow from operating activities was $292 million and the company cut its net debt by nearly $100 million while maintaining nearly $700 million of liquidity.

Ascent followed what other energy companies have done as a result of the energy crisis and the pandemic. It cut its capital expenditures to a range of $600 to $650 million.

“Ascent delivered on the key operating objectives we set to accomplish in the first quarter,” said Jeff Fisher, Chairman and
Chief Executive Officer. “We took aggressive actions in response to the global pandemic, and have taken proactive steps
to reduce and focus our capital on the strong performing dry gas areas of our position, secure our future free cash flow
generation and reduce additional costs throughout the organization.”

Average net daily production for the first quarter of 2020 was 2,009 mmcfe per day, a 14% increase compared to the first
quarter of 2019 and consisted of 1,712 mmcf per day of natural gas, 13,769 barrels (bbl) per day of oil and 35,714 bbl per
day of natural gas liquids (NGL).

During the first quarter of 2020, Ascent generated positive free cash flow of $11 million. This is the second consecutive
quarter of positive free cash flow and the Company is targeting positive free cash flow for calendar year 2020.

Ascent’s 2020 full year guidance includes a revised capital budget of $600 to $650 million, a 17% reduction at the midpoint
as compared to the midpoint of prior guidance.

First quarter 2020 capital expenditures incurred decreased over 25% to $242 million, compared to $327 million in the first
quarter 2019.

As of March 31, 2020, Ascent’s principal amount of debt outstanding was approximately $2.7 billion, including $1.2 billion
drawn under its revolving credit facility, compared to $2.8 billion as of December 31, 2019. As of March 31, 2020, Ascent
had $163 million of letters of credit issued and $684 million of available capacity under its fully committed $2.0 billion
borrowing base.

Source: Ascent Resources