An expanded drilling program is the goal of Oklahoma City-based Ascent Resources.
The company released its fourth quarter and full year 2025 earnings report an indicated it will increase 2026 land spending by nearly 40% up to nearly $225 million. The company wants to beef up its long-term inventory and also take advantage of the growing development of data centers which use natural gas to generate needed power.
“In addition to increasing production, Ascent is exploring supply deals with data centers to capitalize on growing power demand in the Appalachian region,” stated the company in its earnings report.
Considered a major producer in Ohio, part of the Utica shale play, Ascent reported it plans to divide the 2026 drilling between gas and liquids with nearly $700 million in development. It also intends to hedge more than 80% of expected natural gas production.
Ascent reported $454 million in generated cash flow from operations in the fourth quarter and $1.7 billion for the year. Its adjusted EBITDAX was $462 million for the quarter and $1.7 billion for 2025. Adjusted free cash flow totaled $238 million in the quarter and $749 million for the year.
Ascent reported using some of the revenue to repay nearly $300 million of debt during the year. It ended 2025 with liquidity in excess of $1.75 billion.
Company President and CEO Brooks Shughart said the strong year of financial and operational results reflected a consistent execution of the firm’s strategy.
“The team exceeded expectations, delivering efficiency gains that enhanced production and reduced costs. This execution resulted in record free cash flow after reinvesting in the business to allow for continued debt repayment and return of capital to unitholders.”
Ascent had 972 gross operated producing wells in the Utica Shale in late 2025 and the company believes it has 18 to 21 years of future drilling inventory, an estimate based on current activity levels.
◦Net production averaged 2,308 mmcfe per day for the quarter and 2,149 mmcfe per day for the year; liquids production averaged 53,000 bbls per day in the fourth quarter and for the year
◦Initial 2026 guidance of 2.1 to 2.2 bcfe per day of production on D&C spend of $650 to $700 million
The fourth quarter 2025 realized price, including the impact of settled commodity derivatives, was $3.89 per mcfe. Excluding the impact of settled commodity derivatives, the realized price was $3.58 per mcfe in the fourth quarter of 2025, a $0.03 per mcfe premium to NYMEX natural gas prices.
Shughart continued, “Looking forward to 2026, the Company remains focused on risk management to maintain operational continuity and financial flexibility during periods of volatility. We are also well positioned to capitalize on a strong foundation of disciplined capital investment and consistent operational execution to create long-term value for all stakeholders.”
Fourth Quarter 2025 Production and Financial Results
Fourth quarter 2025 net production averaged 2,308 mmcfe per day, consisting of 1,992 mmcf per day of natural gas, 14,370 bbls per day of oil and 38,250 bbls per day of natural gas liquids (“NGLs”), putting liquids at 14% of the overall production mix for the quarter.
Full-Year 2025 Production and Financial Results
Net production for the year ended December 31, 2025 averaged 2,149 mmcfe per day, consisting of 1,829 mmcf per day of natural gas, 14,345 bbls per day of oil and 39,022 bbls per day of NGLs, putting liquids at 15% of the overall production mix for 2025.
The realized price, including the impact of settled commodity derivatives, was $3.92 per mcfe for the year ended December 31, 2025. Excluding the impact of settled commodity derivatives, price realizations were $3.56 per mcfe for the year, a $0.13 per mcfe premium to NYMEX natural gas prices.
During the fourth quarter of 2025, the Company spud 11 operated wells, hydraulically fractured 10 wells, and turned-in-line 9 wells with an average lateral length of 13,845 feet. For the full-year, Ascent spud 56 wells, hydraulically fractured 61 wells, and turned-in-line 62 wells with an average lateral length of approximately 16,021 feet. As of December 31, 2025, Ascent had 995 gross operated productive Utica wells.
As of December 31, 2025, Ascent had total debt of approximately $2.1 billion, with $185 million of borrowings and $62 million of letters of credit issued under the credit facility. Liquidity as of December 31, 2025 was approximately $1.76 billion, comprised of $1.75 billion of available borrowing capacity under the credit facility and $4 million of cash on hand.