Oklahoma City-based Ascent Resources, LLC announced on Wednesday that its Board of Managers approved a quarterly distribution of $12.5 million payable on September 25, 2023 to unitholders of the Company. All future distributions are subject to further approval by the Board of Managers. Additionally, the Company will conduct a reverse stock split of its outstanding units at a ratio of 1-for-100 (1:100). The reverse stock split will reduce the number of units outstanding from approximately 14.5 billion to approximately 145 million.
Ascent’s financial sponsors, The Energy & Minerals Group, First Reserve and Riverstone, added “The commencement of an equity distribution program represents a significant milestone for Ascent and is a testament to the quality of the Company’s asset base, strong operational execution, and prudent approach to risk management. This inaugural distribution represents Ascent’s continuing commitment to a disciplined capital program grounded in a return of capital to shareholders through a combination of continued debt reduction, share repurchases and distributions.”