Ascent Resources Launches Tender Offer for $25 Million in Common Units

Ascent Resources, LLC, a prominent player in the natural gas sector, has unveiled a tender offer aiming to purchase up to $25 million of its Common Units. This move, utilizing an unmodified reverse Dutch auction method, is designed to provide flexibility to investors while maintaining transparency in the buyback process.

The Details of the Tender Offer

On April 1, 2025, Ascent issued an announcement stipulating that the price per Common Unit will not exceed $23.75. This tender offer covers both Series A and Series B units, marking a significant opportunity for existing unitholders to sell their shares back to the company. The funds for this buyback will be drawn from available cash or through borrowings from its secured credit facility, reinforcing the company’s financial prowess and commitment to shareholder returns.

In this reverse Dutch auction format, unitholders looking to sell can submit both the number of units they wish to tender and the minimum price they would accept. Notably, the bids will be accepted starting from those with the lowest prices, providing a structured and fair bidding process for all participants. Unitholders must act quickly, as the expiration date for this offer is set for 5 PM, Eastern Time, on April 29, 2025.

Key Considerations for Unitholders

While the maximum purchase price is capped at $23.75, unitholders who set a bid below this can potentially receive their stated bid price. However, those who submit bids above this cap will find their units rejected, emphasizing the importance of strategic bidding for unitholders eager to maximize their returns.

As the buyback approach unfolds, unitholders are encouraged to consult financial and legal advisors to gauge the tender offer's impact on their personal portfolios, ensuring informed decision-making amidst evolving market conditions. It's crucial for participants to comprehend the implications of their bids, especially concerning tax obligations and capital gains considerations.

Ascent Resources and Its Market Position

Ascent stands as one of the United States’ largest privately-owned natural gas producers, concentrating its efforts in the Utica Shale region of southern Ohio. Demonstrating a commitment to responsible energy production, the company aims to provide cleaner, more affordable energy, while notably minimizing environmental impacts associated with traditional energy extraction methods.

Conclusion

The tender offer by Ascent Resources presents a timely opportunity for unitholders and reflects the company’s ongoing strategy to enhance shareholder value while promoting engagement through structured buyback mechanisms. As the company continues navigating the complexities of the energy market, staying informed and involved during significant financial maneuvers like this tender offer can prove beneficial for unitholders looking to take advantage of the current market landscape.

In summary, unitholders should carefully consider their participation in the tender offer by reviewing the terms in detail and consulting with advisors to make the best decisions regarding their investments.

Forward-Looking Statements

This announcement includes forward-looking statements concerning the tender offer and anticipated outcomes. It’s important for potential participants to understand the associated risks and uncertainties drawn from market influences and insider information, which may significantly alter the course of the tender offer or company performance. Ascent's management retains the right to update or amend any forward-looking statements as necessary, disclaiming final commitment until the tender concludes on the specified date.