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Ascent Resources Reports Strong First Quarter Results for 2025

Ascent Resources Utica Holdings, LLC released its operating and financial results for the first quarter of 2025 on May 7, demonstrating robust performance despite the volatile market conditions.

Key Production Highlights

In the first quarter of 2025, Ascent achieved a remarkable net production of 2,002 mmcfe per day. This impressive output included 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 (NGLs), with liquids making up 16% of the total production mix. The company's realized natural gas equivalent prices reached an average of $4.18 per mcfe, which reflects a substantial premium over NYMEX natural gas prices, underscoring its operational efficiency and strategic positioning within the industry.

Despite facing a net loss of $362 million, Ascent reported an Adjusted Net Income of $210 million and Adjusted EBITDAX of $430 million. Cash flows from operations totaled $359 million, showcasing Ascent's ability to generate significant cash even in challenging times. The company also noted Adjusted Free Cash Flow amounting to $177 million, which has been utilized for debt repayment and capital returns to shareholders.

Financial Strategies and Market Positioning

Jeff Fisher, Ascent's Chairman and CEO, expressed satisfaction with the company's performance, highlighting strong price realizations, cost management, and well performance as crucial factors for this quarter's success. Ascent reaffirmed its commitment to maintaining a capital-efficient development plan, supported by a disciplined hedging program that shields against price volatility in the commodity markets.

In terms of financial health, Ascent maintained a borrowing base of $3.0 billion and available commitments of $2.0 billion in its credit facility, securing liquidity worth over $1.4 billion as of March 31, 2025.

Operational Achievements

During Q1 2025, Ascent actively managed its resources by spudding 18 operated wells, hydraulically fracturing 19 wells, and bringing 11 wells online. Each well averaged a lateral length of 14,566 feet, contributing to the overall operational effectiveness.

The company has hedged approximately 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, offering further assurance against market fluctuations. Additionally, Ascent hedged 11,000 bbls per day of crude oil production, with similar strategic measures in place for natural gas basis and propane positions.

Ascent Resources is a key player in the U.S. natural gas landscape, focused on acquiring, developing, and operating properties primarily in the Utica Shale region of southern Ohio. The company's continued emphasis on delivering cleaner burning energy solutions reflects its commitment to sustainable resource management and corporate responsibility.

Looking Ahead

As the company progresses through 2025, it remains optimistic about the natural gas market. Fisher points out that Ascent is well-positioned to optimize growth and cash flow, preparing to harness both short-term opportunities and long-term prospects in the energy sector. Investor relations and a conference call with analysts scheduled for May 8, 2025, will provide further insight into the company's strategies and future outlook.

In conclusion, Ascent Resources' first quarter results spotlights not only its operational strengths but also a resilient approach to navigating market challenges. The strategic focus on efficient capital allocation and proactive resource management continues to set Ascent apart in a competitive industry landscape.