Ascent Resources Utica Holdings reports 1Q 2021 operating and financial results

Ascent Resources spends $1.5B to grow Utica position - OklahomaMinerals.com

 

The first quarter of 2021 for Oklahoma City-based Ascent Resources Utica Holdings was so strong that it not only generated $54 million of free cash flow but made enough to eliminate all debt maturities until the second quarter of 2024.

The company reported adjusted EBITDAX of $240 million and net cash provided by operating activities of $210 million.

While Ascent reported a net loss of $43 million, its adjusted net income was $59 million, cap-ex was $148 million including $127 million for well costs, $8 million for acquisitions and leasehold costs and $13 million in capitalized interest.

Here’s how strong the quarter was for Ascent.  It also retired its convertible notes in March 2021 and the redemption of its senior notes due 2022 and in April 2021, reaffirmed its borrowing base at $1.85 billion, decreased its average well cost to about $564 per lateral foot, and reaffirmed its 2021 guidance.

Jeff Fisher

 

 

 

“Ascent has delivered another strong quarter of results. Coming into the year our strategy was clear: improve margins,
optimize cost structure and generate sustainable free cash flow while achieving attractive corporate level returns,” said Ascent’s Chairman and Chief Executive Officer, Jeff Fisher.

He said the company is well positioned to deliver on its financial and operational plans moving forward for the rest of 2021.

First quarter 2021 net production averaged 1,791 mmcfe per day, which consisted of 1,600 mmcf per day of natural gas,
9,333 bbls per day of oil and 22,533 bbls per day of natural gas liquids (“NGL”).

Operations | Ascent Resources

During the first quarter of 2021, Ascent operated 4 drilling rigs and one fracture stimulation crew. The company spud
14 operated wells, hydraulically fractured 18 wells, and turned in line 11 wells with an average lateral length of 15,265
feet. Seven of the 11 new wells were located in the dry gas and lean gas areas, while the four other wells were in the
liquids-rich window. As of March 31, 2021, Ascent had 609 gross operated producing Utica wells.

As of March 31, 2021, Ascent had total debt outstanding of approximately $2.8 billion, with $888 million of borrowings
outstanding and $149 million of letters of credit issued under its revolving credit facility. Liquidity at the end of the first
quarter of 2021 was $819 million, comprised of $813 million of available borrowing capacity and $6 million of cash on
hand.

The company’s leverage ratio at the end of the quarter was 3.1x.

 

Click here for Ascent Resources press release.