From a net loss of $362 million in the first quarter to net income of $467 million in the second quarter—it’s what Ascent Resources Utica Holdings, LLC reported in its second quarter 2025 operating and financial results.
The Oklahoma City company, one of the largest private producers of natural gas in the United States and is focused on acquiring, developing, and operating natural gas and oil properties located in the Utica Shale in southern Ohio, recorded $186 million in adjusted net income. It also had adjusted EBITDAX of $406 million along with cash flows from operations of $407 million and adjusted free cash flow of $112 million.
Ascent incurred $254 million of total capital expenditures in the second quarter of 2025 consisting of $224 million of D&C costs, $22 million of land and leasehold costs, and $8 million of capitalized interest.
“Our second quarter results were highlighted by exceptional performance across both drilling and completions, underscoring our continued focus on operational execution,” said Ascent’s Chairman and Chief Executive Officer, Jeff Fisher.
“These results were driven by faster cycle times, improved efficiencies and longer laterals. As a result of these improvements, our D&C cost decreased below our $700 annual target during the second quarter.”
He said based on the improvements, the company is well positioned in the second half of the year to capture additional efficiency gains.
“Our business is poised to continue delivering outstanding operational and financial results, supported by a strong hedge book and capital efficient development. We remain committed to generating sustainable free cash flow and long-term value for all stakeholders.”
Second Quarter 2025 Production and Financial Results
Second quarter 2025 net production averaged 2,034 mmcfe per day, consisting of 1,738 mmcf per day of natural gas, 13,033 bbls per day of oil and 36,385 bbls per day of natural gas liquids (“NGL”), putting liquids at 15% of the overall production mix for the quarter.
The second quarter 2025 realized price, including the impact of settled commodity derivatives, was $3.87 per mcfe. Excluding the impact of settled commodity derivatives, the realized price was $3.44 per mcfe in the second quarter of 2025.
Year-to-Date 2025 Financial Results
Net production for the six months ended June 30, 2025 averaged 2,018 mmcfe per day, consisting of 1,709 mmcf per day of natural gas, 13,431 bbls per day of oil and 38,077 bbls per day of NGL.
The realized price, including the impact of settled commodity derivatives, was $4.03 per mcfe for the six months ended June 30, 2025. Excluding the impact of settled commodity derivatives, price realizations were $3.79 per mcfe for the year-to-date period.
For the six months ended June 30, 2025, Ascent reported Net Income of $104 million, Adjusted Net Income of $396 million and Adjusted EBITDAX of $836 million, along with Cash Flow from Operations of $766 million and Adjusted Free Cash Flow of $289 million. Ascent incurred a total of $465 million of capital expenditures during the six months ended June 30, 2025 consisting of $400 million of D&C costs, $50 million of land and leasehold costs, and $15 million of capitalized interest.
Balance Sheet and Liquidity
As of June 30, 2025, Ascent had total debt of approximately $2.3 billion, with $520 million of borrowings and $83 million of letters of credit issued under the credit facility. Liquidity as of June 30, 2025 was in excess of $1.4 billion, comprised of approximately $1.4 billion of available borrowing capacity under the credit facility and $8 million of cash on hand. The Company’s leverage ratio at the end of the quarter was 1.49x based on a LTM Adjusted EBITDAX basis.
In early June, Ascent issued $500 million of new 6.625% senior unsecured notes due 2033 with proceeds used to redeem its existing 8.250% senior unsecured notes due 2028. This transaction enhanced its balance sheet by reducing interest expense and extending its maturity profile.
Operational Update
During the second quarter of 2025, the Company spud 15 operated wells, hydraulically fractured 22 wells, and turned-in-line 24 wells with an average lateral length of 17,238 feet. As of June 30, 2025, Ascent had 954 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. The following table summarizes the Company’s natural gas and crude oil hedge position and average downside and upside prices as of June 30, 2025: