Oklahoma-based Ascent Resources Utica Holdings, LLC announced its first quarter earnings which included $210 million in adjusted net income and adjusted EBITDAX of $430 million.
Considered one of the largest private producers of natural gas in the United States with operations focused in southern Ohio, the Oklahoma City company also reported a net loss of $362 million. Its cash flow from operations totaled $359 million and adjusted free cash flow of $177 million.
It was also well received by Ascent’s Chairman and Chief Executive Officer, Jeff Fisher. “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.”
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.
Fisher said that despite recent market volatility, Ascent’s “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.”
The firm’s quarterly reported indicated 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.
First Quarter 2025 Production 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.
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.
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.