ASCENT RESOURCES REPORTS SECOND QUARTER 2024 OPERATING AND FINANCIAL RESULTS AND ANNOUNCES UPDATED 2024 GUIDANCE
Second Quarter Highlights:
-- Net production averaged 2,190 mmcfe per day, an increase of 5% over the
prior year period
-- Liquids production averaged nearly 50 mbbls per day, an increase of
approximately 60% over the prior year period, representing 13% of total
production
-- Realized pre-hedge natural gas equivalent price of $2.19 per mcfe, a
$0.30 per mcfe premium to NYMEX pricing during the quarter
-- Cash Flow from Operating Activities and Adjusted EBITDAX((1)) of $211
million and $333 million, respectively
-- Generated $76 million of Adjusted Free Cash Flow((1) )
-- Received credit rating upgrades from S&P, adding to Q1 2024 upgrades
from Moody's and Fitch
-- Issued 6th Annual Sustainability Report and received a Grade A
certification of 100% of our natural gas production from MiQ for third
consecutive year
-- Increased production guidance range to 2,100 - 2,200 mmcfe per day,
increased liquids mix by 2% and lowered operating expense by $0.05 per
mcfe at the mid-point
(1) A non-GAAP financial measure. See the non-GAAP reconciliations included in this press release
for the definition of, and other important information regarding, this non-GAAP financial
measure.
OKLAHOMA CITY, Okla., Aug 7, 2024 /PRNewswire/ -- Ascent Resources Utica Holdings, LLC ("Ascent", "our" or the "Company") today reported its second quarter 2024 operating and financial results and issued updated full-year 2024 guidance. Additionally, Ascent announced a conference call with analysts and investors scheduled for 9 AM CT / 10 AM ET, Thursday, August 8, 2024. For more detailed information on Ascent, please refer to our audited financials, the latest investor presentation and additional information located on our website at https://www.ascentresources.com/investors.
Commenting on the second quarter results, Ascent's Chairman and Chief Executive Officer, Jeff Fisher said, "I am pleased to say that we built on our success from the first quarter by continuing to balance our development program to more prominently feature liquids in the production mix. By doing so, we have improved price realizations and maximized returns during a volatile quarter for natural gas prices. We also continue to focus on cost management by working to reduce operating and capital costs in order to improve margins. Our commitment to generating consistent, sustainable free cash flow remains our top priority."
Fisher continued, "As we move into the second half of the year, we will continue to focus on growing liquids production, reducing costs, improving efficiencies and optimizing margins. Our prudent operational and financial approach, coupled with a systematic hedging program, provides a solid foundation to navigate challenging market conditions while positioning the business for growing natural gas demand."
Second Quarter 2024 Financial Results
Second quarter 2024 net production averaged 2,190 mmcfe per day, consisting of 1,910 mmcf per day of natural gas, 12,209 bbls per day of oil and 34,571 bbls per day of natural gas liquids ("NGL").
Second quarter 2024 price realizations, including the impact of settled commodity derivatives, were $3.22 per mcfe. Excluding the impact of settled commodity derivatives, price realizations were $2.19 per mcfe in the second quarter of 2024.
For the second quarter of 2024, Ascent reported a Net Loss of $98 million, Adjusted Net Income of $96 million, Adjusted EBITDAX of $333 million, along with Cash Flows from Operations of $211 million and Adjusted Free Cash Flow of $76 million. Ascent incurred $213 million of total capital expenditures in the second quarter of 2024 consisting of $157 million of D&C costs, $47 million of land and leasehold costs, and $8 million of capitalized interest.
Year-to-Date 2024 Financial Results
Net production for the six months ended June 30, 2024 averaged 2,203 mmcfe per day, consisting of 1,952 mmcf per day of natural gas, 10,802 bbls per day of oil and 31,000 bbls per day of NGLs.
Price realizations, including the impact of settled commodity derivatives, were $3.48 per mcfe for the six months ended June 30, 2024. Excluding the impact of settled commodity derivatives, price realizations were $2.40 per mcfe for the year-to-date period.
For the six months ended June 30, 2024, Ascent reported a Net Loss of $12 million, Adjusted Net Income of $314 million and Adjusted EBITDAX of $788 million, along with Cash Flow from Operations of $579 million and Adjusted Free Cash Flow of $275 million. Ascent incurred a total of $425 million of capital expenditures during the six months ended June 30, 2024 consisting of $337 million of D&C costs, $72 million of land and leasehold costs, and $16 million of capitalized interest.
Balance Sheet and Liquidity
As of June 30, 2024, Ascent had total debt of approximately $2.4 billion, with $655 million of borrowings and $169 million of letters of credit issued under the credit facility. Liquidity as of June 30, 2024 was approximately $1.2 billion, comprised of $1.2 billion of available borrowing capacity under the credit facility and $6 million of cash on hand. Our leverage ratio at the end of the quarter was 1.7x based on a LTM Adjusted EBITDAX basis.
Operational Update
During the second quarter of 2024, we spud 19 operated wells, hydraulically fractured 18 wells, and turned-in-line 17 wells with an average lateral length of 13,761 feet. As of June 30, 2024, Ascent had 888 gross operated producing Utica wells.
Hedging Update
Ascent has significant hedges in place in order to reduce exposure to the volatility in commodity prices, as well as to protect our expected operating cash flow. As of June 30, 2024, Ascent had hedged 1,483,000 mmbtu per day of natural gas production for the remainder of 2024 at an average downside price of $3.49 per mmbtu, and 1,450,000 mmbtu per day in 2025 at an average downside price of $3.80 per mmbtu. Additionally, Ascent has hedged 10,000 bbls per day of crude oil production at an average price of $75.39 per bbl for the remainder of 2024, and 6,000 bbls per day in 2025 at an average price of $71.13. We also have a significant portion of our natural gas basis position hedged in 2024 and 2025 along with additional natural gas hedges in place through 2027. Please reference our financial statements for additional detail on our hedge position.
Guidance Update
The Company has updated its full-year 2024 guidance to reflect operational outperformance, improved realizations and lower operating expenses. A detailed summary including production, expense and operational counts is included in the table that follows:
Updated 2024 Guidance
Production
Production (mmcfe/d) 2,100 -2,200
% Natural Gas 86% - 88%
Unhedged Differentials
Natural Gas ($/mcf) ($0.30) -
($0.20)
Crude Oil ($/bbl) ($9.00) -
($8.00)
NGL (% ofWTI) 27.5% - 32.5%
Operating Expenses ($/mcfe)
Operating Expenses(1)
$1.50 - $1.60
G&A(2)
$0.08 - $0.10
Capital Expenditures Incurred ($mm)
(3)
$750 - $810
D&C
$625 - $675
Land
$125 - $135
Operations / Well Counts
Operated Rigs 2.5 -3.0
Wells Spud 60 -65
Average Spud Lateral Length 16,000' -
16,500'
(1) Includes GP&T, LOE, and Taxes Other than
Income
(2) Excludes long-term incentive compensation
expense
(3)
Excludes capitalized interest
About Ascent Resources
Ascent is 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. With a continued focus on good corporate citizenship, Ascent is committed to delivering cleaner burning, affordable energy to our country and the world, while reducing environmental impacts.
Contact:
Chris Benton
Vice President - Finance and Investor Relations
405-252-7850
chris.benton@ascentresources.com
This news release contains forward-looking statements within the meaning of US federal securities laws. Forward-looking statements express views of Ascent regarding future plans and expectations. Forward-looking statements in this news release include, but are not limited to, statements regarding future operations, business strategy, liquidity and cash flows of Ascent. These statements are based on numerous assumptions and are subject to known and unknown risks and uncertainties, including, commodity price volatility, inherent uncertainty in estimating natural gas, oil and NGL reserves, environmental and regulatory risks, availability of capital, and the other risks described in Ascent's most recent investor presentation provided at www.ascentresources.com/investors. Actual future results may vary materially from those expressed or implied in this news release and Ascent's business, financial condition, results of operations and cash flow could be materially and adversely affected by such risks and uncertainties. As a result, forward-looking statements should be understood to be only predictions and statements of Ascent's current beliefs; they are not guarantees of performance.
ASCENT RESOURCES UTICA HOLDINGS, LLC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
($ in thousands) 2024 2023 2024 2023
---
Revenues:
Natural gas $283,761 $333,721 $674,263 $945,281
Oil 79,336 63,166 137,704 127,159
NGL 73,272 39,636 150,696 83,377
Commodity derivative gain 23,918 348,982 140,177 1,270,631
Total Revenues 460,287 785,505 1,102,840 2,426,448
Operating Expenses:
Lease operating expenses 26,438 30,317 57,066 63,967
Gathering, processing and transportation expenses 255,048 227,792 517,711 468,084
Taxes other than income 11,476 12,637 22,524 24,134
Exploration expenses 3,335 4,185 9,356 4,792
General and administrative expenses 27,741 18,479 59,222 34,972
Depreciation, depletion and amortization 186,940 175,677 373,940 358,716
Total Operating Expenses 510,978 469,087 1,039,819 954,665
Income (Loss) from Operations (50,691) 316,418 63,021 1,471,783
Other Income (Expense):
Interest expense, net (49,166) (47,818) (99,378) (103,153)
Change in fair value of contingent payment right 605 (2,039) (3,091) 1,841
Losses on purchases or exchanges of debt (26,900) (26,900)
Other income 1,206 10,375 27,127 10,911
Total Other Expense (47,355) (66,382) (75,342) (117,301)
Net Income (Loss) $(98,046) $250,036 $(12,321) $1,354,482
ASCENT RESOURCES UTICA HOLDINGS, LLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, December 31,
($ in thousands) 2024 2023
---
Current Assets:
Cash and cash equivalents $5,562 $6,718
Accounts receivable - natural gas, oil and NGL sales 238,661 266,906
Accounts receivable - joint interest and other 58,979 38,540
Short-term derivative assets 314,390 438,041
Other current assets 8,463 10,620
Total Current Assets 626,055 760,825
Property and Equipment:
Natural gas and oil properties, based on successful efforts accounting 11,982,119 11,565,453
Other property and equipment 43,637 42,542
Less: accumulated depreciation, depletion and amortization (4,992,266) (4,619,852)
Property and Equipment, net 7,033,490 6,988,143
Other Assets:
Long-term derivative assets 116,998 288,396
Other long-term assets 67,564 68,486
Total Assets $7,844,107 $8,105,850
Current Liabilities:
Accounts payable $63,335 $76,333
Accrued interest 43,314 44,665
Short-term derivative liabilities 9,672 13,157
Other current liabilities 517,626 551,894
Total Current Liabilities 633,947 686,049
Long-Term Liabilities:
Long-term debt, net 2,432,601 2,533,873
Other long-term liabilities 127,147 124,565
Total Long-Term Liabilities 2,559,748 2,658,438
Member's Equity 4,650,412 4,761,363
Total Liabilities and Member's Equity $7,844,107 $8,105,850
ASCENT RESOURCES UTICA HOLDINGS, LLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
($ in thousands) 2024 2023 2024 2023
---
Cash Flows from Operating Activities:
Net income (loss) $(98,046) $250,036 $(12,321) $1,354,482
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Depreciation, depletion and amortization 186,940 175,677 373,940 358,716
Gain on commodity derivatives (23,918) (348,982) (140,177) (1,270,631)
Settlements received for commodity derivatives 156,659 126,929 335,270 60,111
Impairment of unproved natural gas and oil properties 2,551 3,814 8,110 3,814
Non-cash interest expense 6,311 3,271 11,685 9,248
Long-term incentive compensation 10,952 859 20,266 1,690
Change in fair value of contingent payment right (605) 2,039 3,091 (1,841)
Losses on purchases or exchanges of debt 26,038 26,038
Other (47) 79 20 (1,344)
Changes in operating assets and liabilities (29,978) 44,747 (20,424) 115,142
Net Cash Provided by Operating Activities 210,819 284,507 579,460 655,425
Cash Flows from Investing Activities:
Natural gas and oil capital expenditures (215,801) (270,363) (434,390) (530,279)
Additions to other property and equipment (302) (769) (845) (1,828)
Net Cash Used in Investing Activities (216,103) (271,132) (435,235) (532,107)
Cash Flows from Financing Activities:
Proceeds from credit facility borrowings 445,000 910,000 850,000 1,420,000
Repayment of credit facility borrowings (435,000) (540,000) (960,000) (1,085,000)
Proceeds from issuance of long-term debt 210,000 210,000
Repayment of long-term debt (549,822) (549,822)
Cash paid for debt issuance and amendment costs (11,219) (11,219)
Cash paid for debt prepayment costs (27,491) (27,491)
Cash received (paid) for settlements of commodity 55,125 84,605 (53,530)
derivatives
Cash paid to Parent for equity distributions (56,214) (112,464)
Cash paid to Parent for long-term incentive Cash (17,856)
Awards
Other (6,590) (3,608) (7,522) (3,879)
Net Cash Provided by (Used in) Financing 2,321 (12,140) (145,381) (118,797)
Activities
Net Increase (Decrease) in Cash and Cash (2,963) 1,235 (1,156) 4,521
Equivalents
Cash and Cash Equivalents, Beginning of Period 8,525 7,180 6,718 3,894
Cash and Cash Equivalents, End of Period $5,562 $8,415 $5,562 $8,415
ASCENT RESOURCES UTICA HOLDINGS, LLC
SUPPLEMENTAL TABLES
NATURAL GAS, OIL AND NGL PRODUCTION AND PRICES
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2024 2023 2024 2023
Net Production Volumes:
Natural gas (mmcf) 173,777 173,694 355,209 357,138
Oil (mbbls) 1,111 974 1,966 1,906
NGL (mbbls) 3,146 1,695 5,642 3,158
Natural Gas Equivalents (mmcfe) 199,326 189,712 400,858 387,523
Average Daily Net Production Volumes:
Natural gas (mmcf/d) 1,910 1,909 1,952 1,973
Oil (mbbls/d) 12 11 11 11
NGL (mbbls/d) 35 19 31 17
Natural Gas Equivalents (mmcfe/d) 2,190 2,085 2,203 2,141
% Natural Gas 87 % 92 % 89 % 92 %
% Liquids 13 % 8 % 11 % 8 %
Average Sales Prices:
Natural gas ($/mcf) $1.63 $1.92 $1.90 $2.65
Oil ($/bbl) $71.37 $64.79 $70.04 $66.71
NGL ($/bbl) $23.29 $23.38 $26.71 $26.40
Natural Gas Equivalents ($/mcfe) $2.19 $2.30 $2.40 $2.98
Settlements of commodity derivatives ($/mcfe) 1.03 0.67 1.08 0.16
Average sales price, after effects of settled derivatives ($/mcfe) $3.22 $2.97 $3.48 $3.14
CAPITAL EXPENDITURES INCURRED
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
($ in thousands) 2024 2023 2024 2023
---
Capital Expenditures Incurred:
Drilling and completion costs incurred $156,778 $221,121 $336,899 $460,353
Land and leasehold costs incurred 47,380 27,615 72,284 53,800
Capitalized interest incurred 8,395 9,338 15,528 19,608
Total Capital Expenditures Incurred $212,553 $258,074 $424,711 $533,761
ASCENT RESOURCES UTICA HOLDINGS, LLC
NON-GAAP FINANCIAL MEASURES
Ascent uses certain non-GAAP measures as a supplement to our financial results prepared in accordance with generally accepted accounting principles (GAAP). These non-GAAP measures include Adjusted Net Income, Adjusted EBITDAX, Last Twelve Months (LTM) Adjusted EBITDAX, Net Debt and Adjusted Free Cash Flow. A reconciliation of each financial measure to its most directly comparable GAAP financial measure is included in the tables below. Ascent's management team believes these non-GAAP measures are useful to an investor in evaluating Ascent's financial performance because (a) management uses these financial measures to evaluate operating performance, in presentations to its Board of Managers and as a basis for strategic planning and forecasting, (b) these financial measures are more comparable to estimates used by analysts, and (c) items excluded are one-time items, non-cash items or items whose timing or amount cannot be reasonably estimated.
Ascent believes these non-GAAP measures provide meaningful information to our investors and lenders; however, they should not be used as a substitute for measures of performance that are calculated in accordance with GAAP. These non-GAAP measures, as used and defined by Ascent below, may not be comparable to similarly titled measures employed by other companies.
Adjusted Net Income: Adjusted Net Income is defined as net income (loss) before the revenue impact of changes in the fair value of commodity derivative instruments prior to settlement, unrealized (gain) loss on interest rate derivatives, change in fair value of contingent payment right, long-term incentive compensation, (gains) losses on purchases or exchanges of debt, impairment of unproved natural gas and oil properties and certain items management believes affect the comparability of results or that are not indicative of trends in the ongoing business. Adjusted Net Income is a supplemental measure of operating performance monitored by management that is not defined under GAAP and does not represent, and should not be considered as, an alternative to net income (loss), as determined by GAAP.
Adjusted EBITDAX and LTM Adjusted EBITDAX: Adjusted EBITDAX is defined as net income (loss) before exploration expenses, depreciation, depletion and amortization expense, interest expense (net), the revenue impact of changes in the fair value of commodity derivative instruments prior to settlement, change in fair value of contingent payment right, long-term incentive compensation, (gains) losses on purchases or exchanges of debt and certain items management believes affect the comparability of results or that are not indicative of trends in the ongoing business. Adjusted EBITDAX is a supplemental measure of operating performance monitored by management that is not defined under GAAP and does not represent, and should not be considered as, an alternative to net income (loss), as determined by GAAP.
Net Debt: Net Debt is defined as total debt less cash and cash equivalents. Management uses Net Debt to determine our outstanding debt obligations that would not be readily satisfied by our cash and cash equivalents on hand. Net Debt does not represent, and should not be considered as, an alternative to total debt, as determined by GAAP.
Adjusted Free Cash Flow: Adjusted Free Cash Flow is defined as net cash provided by (used in) operating activities adjusted for changes in operating assets and liabilities, drilling and completion costs incurred, land and leasehold costs incurred, capitalized interest incurred, financing commodity derivative settlements, and certain items management believes affect the comparability of results or that are not indicative of trends in the ongoing business. Adjusted Free Cash Flow is an indicator of a company's ability to generate funding to maintain or expand its asset base, make equity distributions and repurchase or extinguish debt. Adjusted Free Cash Flow is a supplemental measure of liquidity monitored by management that is not defined under GAAP and that does not represent, and should not be considered as, an alternative to net cash provided by (used in) operating activities, as determined by GAAP.
RECONCILIATION OF ADJUSTED NET INCOME (Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
($ in thousands) 2024 2023 2024 2023
---
Net Income (Loss) (GAAP) $(98,046) $250,036 $(12,321) $1,354,482
Adjustments to reconcile net income (loss) to Adjusted
Net Income:
Gain on commodity derivatives (23,918) (348,982) (140,177) (1,270,631)
Settlements received for commodity derivatives 204,604 126,929 431,166 60,111
Unrealized (gain) loss on interest rate derivatives 678 (1,840) 576 (1,005)
Change in fair value of contingent payment right (605) 2,039 3,091 (1,841)
Long-term incentive compensation(a) 10,952 859 20,266 1,690
Losses on purchases or exchanges of debt 26,900 26,900
Impairment of unproved natural gas and oil properties 2,551 3,814 8,110 3,814
Legal settlements, loss contingencies and other 244 3,516 (1,477)
Adjusted Net Income (Non-GAAP) $96,460 $59,755 $314,227 $172,043
RECONCILIATION OF ADJUSTED EBITDAX (Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
($ in thousands) 2024 2023 2024 2023
---
Net Income (Loss) (GAAP) $(98,046) $250,036 $(12,321) $1,354,482
Adjustments to reconcile net income (loss) to Adjusted
EBITDAX:
Exploration expenses 3,335 4,185 9,356 4,792
Depreciation, depletion and amortization 186,940 175,677 373,940 358,716
Interest expense, net 49,166 47,818 99,378 103,153
Gain on commodity derivatives (23,918) (348,982) (140,177) (1,270,631)
Settlements received for commodity derivatives 204,604 126,929 431,166 60,111
Change in fair value of contingent payment right (605) 2,039 3,091 (1,841)
Long-term incentive compensation(a) 10,952 859 20,266 1,690
Losses on purchases or exchanges of debt 26,900 26,900
Legal settlements, loss contingencies and other 244 3,516 (1,477)
Adjusted EBITDAX (Non-GAAP) $332,672 $285,461 $788,215 $635,895
(a) The expense associated with the Long-Term Incentive Plan Cash Award of $6.5 million and $11.3
million for the three and six months ended June 30, 2024, respectively, is non-cash to the
Company as the Plan was established by our Parent, Ascent Resources, LLC. We did not recognize
any expense associated with the Cash Award in 2023.
RECONCILIATION OF LTM ADJUSTED EBITDAX (Unaudited)
Three Months Twelve
Months Ended
Ended
June 30, March 31, December 31, September 30, June 30,
($ in thousands) 2024 2024 2023 2023 2024
---
Net Income (Loss) (GAAP) $(98,046) $85,725 $757,202 $16,655 $761,536
Adjustments to reconcile net income (loss)
to Adjusted EBITDAX:
Exploration expenses 3,335 6,021 5,971 1,862 17,189
Depreciation, depletion and 186,940 187,000 178,749 186,486 739,175
amortization
Interest expense, net 49,166 50,212 52,714 50,043 202,135
Gain on commodity derivatives (23,918) (116,259) (758,301) (69,253) (967,731)
Settlements received for commodity 204,604 226,562 58,169 104,269 593,604
derivatives
Change in fair value of contingent (605) 3,696 651 3,760 7,502
payment right
Long-term incentive compensation(a) 10,952 9,314 1,006 999 22,271
Legal settlements, loss contingencies 244 3,272 20,000 23,516
and other
Adjusted EBITDAX (Non-GAAP) $332,672 $455,543 $316,161 $294,821 $1,399,197
Three Months Twelve
Ended Months Ended
June 30, March 31, December 31, September 30, June 30,
($ in thousands) 2023 2023 2022 2022 2023
---
Net Income (GAAP) $250,036 $1,104,446 $1,600,999 $46,540 $3,002,021
Adjustments to reconcile net income to
Adjusted EBITDAX:
Exploration expenses 4,185 607 3,353 15,365 23,510
Depreciation, depletion and 175,677 183,039 181,519 192,484 732,719
amortization
Interest expense, net 47,818 55,335 57,426 57,553 218,132
(Gain) loss on commodity derivatives (348,982) (921,649) (993,155) 1,100,991 (1,162,795)
Settlements received (paid) for 126,929 (66,818) (473,217) (856,004) (1,269,110)
commodity derivatives
Change in fair value of contingent 2,039 (3,880) 1,955 (3,656) (3,542)
payment right
Losses on purchases or exchanges of 26,900 26,900
debt
Long-term incentive compensation(a) 859 831 8,780 8,914 19,384
Legal settlements, loss contingencies (1,477) (59) (3,352) (4,888)
and other
Adjusted EBITDAX (Non-GAAP) $285,461 $350,434 $387,601 $558,835 $1,582,331
(a) The expense associated with the Long-Term Incentive Plan Cash Award of $6.5 million, $4.8
million, $6.5 million and $8.1 million for the three months ended June 30, 2024, March 31, 2024,
December 31, 2022 and September 30, 2022, respectively, is non-cash to the Company as the Plan
was established by our Parent, Ascent Resources, LLC. We did not recognize any expense
associated with the Cash Award in 2023.
RECONCILIATION OF NET DEBT & NET DEBT TO LTM ADJUSTED EBITDAX (Unaudited)
June 30,
($ in thousands) 2024 2023
---
Net Debt:
Total debt $2,432,601 $2,465,629
Less: cash and cash equivalents 5,562 8,415
Net Debt $2,427,039 $2,457,214
Net Debt to LTM Adjusted EBITDAX:
Net Debt $2,427,039 $2,457,214
LTM Adjusted EBITDAX (Non-GAAP)(a) $1,399,197 $1,582,331
Net Debt to LTM Adjusted EBITDAX 1.7 x 1.6 x
(a) Only includes impact of XTO acquisition since
August 5, 2022.
RECONCILIATION OF ADJUSTED FREE CASH FLOW (Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
($ in thousands) 2024 2023 2024 2023
---
Net Cash Provided by Operating Activities (GAAP) $210,819 $284,507 $579,460 $655,425
Adjustments to reconcile Net Cash Provided by
Operating Activities to Adjusted Free Cash Flow:
Changes in operating assets and liabilities 29,978 (44,747) 20,424 (115,142)
Drilling and completion costs incurred (156,778) (221,121) (336,899) (460,353)
Land and leasehold costs incurred (47,380) (27,615) (72,284) (53,800)
Capitalized interest incurred (8,395) (9,338) (15,528) (19,608)
Financing commodity derivative settlements 47,945 95,896
Legal settlements, loss contingencies and other 244 862 3,516 862
Adjusted Free Cash Flow (Non-GAAP)(a) $76,433 $(17,452) $274,585 $7,384
(a) Adjusted Free Cash Flow does not include the impact of the Long-Term Incentive Cash Award of
$6.5 million and $11.3 million for the three and six months ended June 30, 2024, respectively.
It is reflected in our consolidated financial statements as a non-cash equity contribution
received from our Parent as the Plan was established by our Parent, Ascent Resources, LLC. We
did not recognize any expense associated with the Cash Award in 2023.
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SOURCE Ascent Resources Utica Holdings, LLC
