Third Quarter Highlights:
- Net production averaged 2,075 mmcfe per day, with liquids accounting for nearly 41 thousand barrels per day
- Realized pre-hedge natural gas equivalent price of $2.29 per mcfe, a $0.13 per mcfe premium to NYMEX pricing
- Cash Flows from Operations and Adjusted EBITDAX(1) of $260 million and $327 million, respectively
- Generated $56 million of Adjusted Free Cash Flow(1)
- Subsequent to quarter end, the Company extended the maturity of its revolving credit facility by two years to June 2029 and issued $600 million of new 6.625% Senior Notes due 2032 with proceeds used to refinance its existing 7.000% Senior Notes due 2026
(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, Nov. 6, 2024 /PRNewswire/ -- Ascent Resources Utica Holdings, LLC ("Ascent" or the "Company") today reported its third quarter 2024 operating and financial results. Additionally, Ascent announced a conference call with analysts and investors scheduled for 9 AM CT / 10 AM ET, Thursday, November 7, 2024. For more detailed information on Ascent, please refer to our financials, the latest investor presentation and additional information located on our website at https://www.ascentresources.com/investors.
Commenting on the third quarter results, Ascent's Chairman and Chief Executive Officer, Jeff Fisher said, "I am pleased to announce another strong quarter of financial and operational execution. We maintained the momentum gained in the first half of the year by continuing to balance our development between natural gas and liquids while reducing operating costs throughout the business. This approach, combined with our continuous focus on efficiency gains in the field, has improved margins and ultimately sets us on the course to generating nearly $500 million of free cash flow in a down market."
Fisher continued, "As we close out the year, fourth quarter activity will once again be predominantly focused on liquids. Our financially disciplined approach to managing the business, combined with our industry leading hedge position, puts us in an enviable position to grow free cash flow, reduce debt and return capital to our unitholders."
Third Quarter 2024 Financial Results
Third quarter 2024 net production averaged 2,075 mmcfe per day, consisting of 1,829 mmcf per day of natural gas, 12,011 bbls per day of oil and 28,891 bbls per day of natural gas liquids ("NGL").
Third quarter 2024 price realizations, including the impact of settled commodity derivatives, were $3.29 per mcfe. Excluding the impact of settled commodity derivatives, price realizations were $2.29 per mcfe in the third quarter of 2024.
For the third quarter of 2024, Ascent reported Net Income of $92 million, Adjusted Net Income of $97 million, Adjusted EBITDAX of $327 million, along with Cash Flows from Operations of $260 million and Adjusted Free Cash Flow of $56 million. Ascent incurred $233 million of total capital expenditures in the third quarter of 2024 consisting of $197 million of D&C costs, $27 million of land and leasehold costs, and $9 million of capitalized interest.
Year-to-Date 2024 Financial Results
Net production for the nine months ended September 30, 2024 averaged 2,160 mmcfe per day, consisting of 1,911 mmcf per day of natural gas, 11,208 bbls per day of oil and 30,296 bbls per day of NGLs.
Price realizations, including the impact of settled commodity derivatives, were $3.41 per mcfe for the nine months ended September 30, 2024. Excluding the impact of settled commodity derivatives, price realizations were $2.36 per mcfe for the period.
For the nine months ended September 30, 2024, Ascent reported Net Income of $80 million, Adjusted Net Income of $411 million and Adjusted EBITDAX of $1.1 billion, along with Cash Flows from Operations of $839 million and Adjusted Free Cash Flow of $331 million. Ascent incurred a total of $658 million of capital expenditures during the nine months ended September 30, 2024 consisting of $534 million of D&C costs, $100 million of land and leasehold costs, and $24 million of capitalized interest.
Balance Sheet and Liquidity
As of September 30, 2024, Ascent had total debt of approximately $2.4 billion, with $625 million of borrowings and $102 million of letters of credit issued under the credit facility. Liquidity as of September 30, 2024 was approximately $1.3 billion, comprised of $1.3 billion of available borrowing capacity under the credit facility and $5 million of cash on hand. The Company's leverage ratio at the end of the quarter was 1.7x based on a LTM Adjusted EBITDAX basis.
After quarter end, the Company completed several transactions that enhanced its balanced sheet and improved its credit profile. In early October, Ascent extended the maturity of its revolving credit facility by two years from June 2027 to June 2029. Concurrent with the extension, the Company also reaffirmed the borrowing base and elected commitment amounts under the credit facility at $3.0 billion and $2.0 billion, respectively. Ascent also issued $600 million of new 6.625% senior unsecured notes due 2032 with proceeds used to refinance its existing 7.000% senior unsecured notes due 2026.
Operational Update
During the third quarter of 2024, the Company spud 14 operated wells, hydraulically fractured 15 wells, and turned-in-line 15 wells with an average lateral length of 13,745 feet. As of September 30, 2024, Ascent had 904 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. As of September 30, 2024, Ascent had hedged 1,473,000 mmbtu per day of natural gas production for the remainder of 2024 at an average downside price of $3.50 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 7,000 bbls per day in 2025 at an average price of $70.96. Subsequent to quarter end, the Company added additional oil hedges in 2025, increasing its hedge position to a total of 11,000 bbls per day at an average price of $70.36. Ascent also has a significant portion of its natural gas basis position hedged in 2024 and 2025 along with additional natural gas hedges in place through 2027. Please reference the financial statements for additional detail on Ascent's hedge position.
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
[email protected]
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 | Nine Months Ended | |||||||
September 30, | September 30, | |||||||
($ in thousands) | 2024 | 2023 | 2024 | 2023 | ||||
Revenues: | ||||||||
Natural gas | $ 300,736 | $ 388,727 | $ 974,999 | $ 1,334,008 | ||||
Oil | 74,396 | 61,336 | 212,100 | 188,495 | ||||
NGL | 61,649 | 52,685 | 212,345 | 136,062 | ||||
Commodity derivative gain | 175,725 | 69,253 | 315,902 | 1,339,884 | ||||
Total Revenues | 612,506 | 572,001 | 1,715,346 | 2,998,449 | ||||
Operating Expenses: | ||||||||
Lease operating expenses | 26,202 | 31,252 | 83,268 | 95,219 | ||||
Gathering, processing and transportation expenses | 248,984 | 253,479 | 766,695 | 721,563 | ||||
Taxes other than income | 10,888 | 11,784 | 33,412 | 35,918 | ||||
Exploration expenses | 4,122 | 1,862 | 13,478 | 6,654 | ||||
General and administrative expenses | 21,568 | 17,852 | 80,790 | 52,824 | ||||
Depreciation, depletion and amortization | 181,049 | 186,486 | 554,989 | 545,202 | ||||
Total Operating Expenses | 492,813 | 502,715 | 1,532,632 | 1,457,380 | ||||
Income from Operations | 119,693 | 69,286 | 182,714 | 1,541,069 | ||||
Other Income (Expense): | ||||||||
Interest expense, net | (48,607) | (50,043) | (147,985) | (153,196) | ||||
Change in fair value of contingent payment right | 20,291 | (3,760) | 17,200 | (1,919) | ||||
Losses on purchases or exchanges of debt | - | - | - | (26,900) | ||||
Other income | 1,021 | 1,172 | 28,148 | 12,083 | ||||
Total Other Expense | (27,295) | (52,631) | (102,637) | (169,932) | ||||
Net Income | $ 92,398 | $ 16,655 | $ 80,077 | $ 1,371,137 | ||||
ASCENT RESOURCES UTICA HOLDINGS, LLC CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||
September 30, | December 31, | |||
($ in thousands) | 2024 | 2023 | ||
Current Assets: | ||||
Cash and cash equivalents | $ 4,947 | $ 6,718 | ||
Accounts receivable - natural gas, oil and NGL sales | 187,150 | 266,906 | ||
Accounts receivable - joint interest and other | 89,341 | 38,540 | ||
Short-term derivative assets | 294,597 | 438,041 | ||
Other current assets | 7,119 | 10,620 | ||
Total Current Assets | 583,154 | 760,825 | ||
Property and Equipment: | ||||
Natural gas and oil properties, based on successful efforts accounting | 12,212,893 | 11,565,453 | ||
Other property and equipment | 43,681 | 42,542 | ||
Less: accumulated depreciation, depletion and amortization | (5,172,644) | (4,619,852) | ||
Property and Equipment, net | 7,083,930 | 6,988,143 | ||
Other Assets: | ||||
Long-term derivative assets | 113,826 | 288,396 | ||
Other long-term assets | 58,650 | 68,486 | ||
Total Assets | $ 7,839,560 | $ 8,105,850 | ||
Current Liabilities: | ||||
Accounts payable | $ 79,696 | $ 76,333 | ||
Accrued interest | 45,618 | 44,665 | ||
Short-term derivative liabilities | 3,180 | 13,157 | ||
Other current liabilities | 502,801 | 551,894 | ||
Total Current Liabilities | 631,295 | 686,049 | ||
Long-Term Liabilities: | ||||
Long-term debt, net | 2,407,156 | 2,533,873 | ||
Long-term derivative liabilities | 129 | - | ||
Other long-term liabilities | 109,371 | 124,565 | ||
Total Long-Term Liabilities | 2,516,656 | 2,658,438 | ||
Member's Equity | 4,691,609 | 4,761,363 | ||
Total Liabilities and Member's Equity | $ 7,839,560 | $ 8,105,850 | ||
ASCENT RESOURCES UTICA HOLDINGS, LLC CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||||||
Three Months Ended | Nine Months Ended | |||||||
September 30, | September 30, | |||||||
($ in thousands) | 2024 | 2023 | 2024 | 2023 | ||||
Cash Flows from Operating Activities: | ||||||||
Net income | $ 92,398 | $ 16,655 | $ 80,077 | $ 1,371,137 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation, depletion and amortization | 181,049 | 186,486 | 554,989 | 545,202 | ||||
Gain on commodity derivatives | (175,725) | (69,253) | (315,902) | (1,339,884) | ||||
Settlements received for commodity derivatives | 148,964 | 104,269 | 484,234 | 164,380 | ||||
Impairment of unproved natural gas and oil properties | 2,679 | 977 | 10,789 | 4,791 | ||||
Non-cash interest expense | 6,970 | 6,606 | 18,655 | 15,854 | ||||
Long-term incentive compensation | 5,646 | 999 | 25,912 | 2,689 | ||||
Change in fair value of contingent payment right | (20,291) | 3,760 | (17,200) | 1,919 | ||||
Losses on purchases or exchanges of debt | - | - | - | 26,038 | ||||
Other | 35 | 95 | 55 | (1,249) | ||||
Changes in operating assets and liabilities | 18,126 | (21,877) | (2,298) | 93,265 | ||||
Net Cash Provided by Operating Activities | 259,851 | 228,717 | 839,311 | 884,142 | ||||
Cash Flows from Investing Activities: | ||||||||
Natural gas and oil capital expenditures | (210,997) | (259,516) | (645,387) | (789,795) | ||||
Additions to other property and equipment | (329) | (323) | (1,174) | (2,151) | ||||
Net Cash Used in Investing Activities | (211,326) | (259,839) | (646,561) | (791,946) | ||||
Cash Flows from Financing Activities: | ||||||||
Proceeds from credit facility borrowings | 365,000 | 400,000 | 1,215,000 | 1,820,000 | ||||
Repayment of credit facility borrowings | (395,000) | (360,000) | (1,355,000) | (1,445,000) | ||||
Proceeds from issuance of long-term debt | - | - | - | 210,000 | ||||
Repayment of long-term debt | - | - | - | (549,822) | ||||
Cash paid for debt issuance and amendment costs | - | - | - | (11,219) | ||||
Cash paid for debt prepayment costs | - | - | - | (27,491) | ||||
Cash received (paid) for settlements of commodity derivatives | 38,119 | - | 122,724 | (53,530) | ||||
Cash paid to Parent for equity distributions | (56,238) | (12,503) | (168,702) | (30,359) | ||||
Other | (1,021) | (375) | (8,543) | (4,254) | ||||
Net Cash Provided by (Used in) Financing Activities | (49,140) | 27,122 | (194,521) | (91,675) | ||||
Net Increase (Decrease) in Cash and Cash Equivalents | (615) | (4,000) | (1,771) | 521 | ||||
Cash and Cash Equivalents, Beginning of Period | 5,562 | 8,415 | 6,718 | 3,894 | ||||
Cash and Cash Equivalents, End of Period | $ 4,947 | $ 4,415 | $ 4,947 | $ 4,415 | ||||
ASCENT RESOURCES UTICA HOLDINGS, LLC SUPPLEMENTAL TABLES NATURAL GAS, OIL AND NGL PRODUCTION AND PRICES (Unaudited) | ||||||||
Three Months Ended | Nine Months Ended | |||||||
September 30, | September 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Net Production Volumes: | ||||||||
Natural gas (mmcf) | 168,300 | 181,873 | 523,509 | 539,011 | ||||
Oil (mbbls) | 1,105 | 838 | 3,071 | 2,744 | ||||
NGL (mbbls) | 2,658 | 2,044 | 8,301 | 5,202 | ||||
Natural Gas Equivalents (mmcfe) | 190,881 | 199,163 | 591,739 | 586,687 | ||||
Average Daily Net Production Volumes: | ||||||||
Natural gas (mmcf/d) | 1,829 | 1,977 | 1,911 | 1,974 | ||||
Oil (mbbls/d) | 12 | 9 | 11 | 10 | ||||
NGL (mbbls/d) | 29 | 22 | 30 | 19 | ||||
Natural Gas Equivalents (mmcfe/d) | 2,075 | 2,165 | 2,160 | 2,149 | ||||
% Natural Gas | 88 % | 91 % | 88 % | 92 % | ||||
% Liquids | 12 % | 9 % | 12 % | 8 % | ||||
Average Sales Prices: | ||||||||
Natural gas ($/mcf) | $ 1.79 | $ 2.14 | $ 1.86 | $ 2.47 | ||||
Oil ($/bbl) | $ 67.33 | $ 73.23 | $ 69.07 | $ 68.69 | ||||
NGL ($/bbl) | $ 23.19 | $ 25.78 | $ 25.58 | $ 26.16 | ||||
Natural Gas Equivalents ($/mcfe) | $ 2.29 | $ 2.52 | $ 2.36 | $ 2.83 | ||||
Settlements of commodity derivatives ($/mcfe) | 1.00 | 0.52 | 1.05 | 0.28 | ||||
Average sales price, after effects of settled derivatives ($/mcfe) | $ 3.29 | $ 3.04 | $ 3.41 | $ 3.11 | ||||
CAPITAL EXPENDITURES INCURRED (Unaudited) | ||||||||
Three Months Ended | Nine Months Ended | |||||||
September 30, | September 30, | |||||||
($ in thousands) | 2024 | 2023 | 2024 | 2023 | ||||
Capital Expenditures Incurred: | ||||||||
Drilling and completion costs incurred | $ 197,486 | $ 206,088 | $ 534,385 | $ 666,441 | ||||
Land and leasehold costs incurred | 27,270 | 36,176 | 99,554 | 89,976 | ||||
Capitalized interest incurred | 8,697 | 8,377 | 24,225 | 27,985 | ||||
Total Capital Expenditures Incurred | $ 233,453 | $ 250,641 | $ 658,164 | $ 784,402 | ||||
ASCENT RESOURCES UTICA HOLDINGS, LLC
NON-GAAP FINANCIAL MEASURES
Ascent uses certain non-GAAP measures as a supplement to its 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 its 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 | Nine Months Ended | |||||||
September 30, | September 30, | |||||||
($ in thousands) | 2024 | 2023 | 2024 | 2023 | ||||
Net Income (GAAP) | $ 92,398 | $ 16,655 | $ 80,077 | $ 1,371,137 | ||||
Adjustments to reconcile net income to Adjusted Net Income: | ||||||||
Gain on commodity derivatives | (175,725) | (69,253) | (315,902) | (1,339,884) | ||||
Settlements received for commodity derivatives | 191,305 | 104,269 | 622,471 | 164,380 | ||||
Unrealized loss on interest rate derivatives | 1,022 | 1,366 | 1,598 | 361 | ||||
Change in fair value of contingent payment right | (20,291) | 3,760 | (17,200) | 1,919 | ||||
Long-term incentive compensation(a) | 5,646 | 999 | 25,912 | 2,689 | ||||
Losses on purchases or exchanges of debt | - | - | - | 26,900 | ||||
Impairment of unproved natural gas and oil properties | 2,679 | 977 | 10,789 | 4,791 | ||||
Legal settlements, loss contingencies and other | 18 | - | 3,534 | (1,477) | ||||
Adjusted Net Income (Non-GAAP) | $ 97,052 | $ 58,773 | $ 411,279 | $ 230,816 | ||||
RECONCILIATION OF ADJUSTED EBITDAX (Unaudited) | ||||||||
Three Months Ended | Nine Months Ended | |||||||
September 30, | September 30, | |||||||
($ in thousands) | 2024 | 2023 | 2024 | 2023 | ||||
Net Income (GAAP) | $ 92,398 | $ 16,655 | $ 80,077 | $ 1,371,137 | ||||
Adjustments to reconcile net income to Adjusted EBITDAX: | ||||||||
Exploration expenses | 4,122 | 1,862 | 13,478 | 6,654 | ||||
Depreciation, depletion and amortization | 181,049 | 186,486 | 554,989 | 545,202 | ||||
Interest expense, net | 48,607 | 50,043 | 147,985 | 153,196 | ||||
Gain on commodity derivatives | (175,725) | (69,253) | (315,902) | (1,339,884) | ||||
Settlements received for commodity derivatives | 191,305 | 104,269 | 622,471 | 164,380 | ||||
Change in fair value of contingent payment right | (20,291) | 3,760 | (17,200) | 1,919 | ||||
Long-term incentive compensation(a) | 5,646 | 999 | 25,912 | 2,689 | ||||
Losses on purchases or exchanges of debt | - | - | - | 26,900 | ||||
Legal settlements, loss contingencies and other | 18 | - | 3,534 | (1,477) | ||||
Adjusted EBITDAX (Non-GAAP) | $ 327,129 | $ 294,821 | $ 1,115,344 | $ 930,716 | ||||
(a) | The expense associated with the Long-Term Incentive Plan Cash Award of $3.0 million and $14.3 million for the three and nine months ended September 30, 2024, respectively, is included in these amounts. Ascent did not recognize any expense associated with the Cash Award in 2023. |
RECONCILIATION OF LTM ADJUSTED EBITDAX (Unaudited) | ||||||||||
Three Months Ended | Twelve | |||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||
($ in thousands) | 2024 | 2024 | 2024 | 2023 | 2024 | |||||
Net Income (Loss) (GAAP) | $ 92,398 | $ (98,046) | $ 85,725 | $ 757,202 | $ 837,279 | |||||
Adjustments to reconcile net income (loss) to Adjusted EBITDAX: | ||||||||||
Exploration expenses | 4,122 | 3,335 | 6,021 | 5,971 | 19,449 | |||||
Depreciation, depletion and amortization | 181,049 | 186,940 | 187,000 | 178,749 | 733,738 | |||||
Interest expense, net | 48,607 | 49,166 | 50,212 | 52,714 | 200,699 | |||||
Gain on commodity derivatives | (175,725) | (23,918) | (116,259) | (758,301) | (1,074,203) | |||||
Settlements received for commodity derivatives | 191,305 | 204,604 | 226,562 | 58,169 | 680,640 | |||||
Change in fair value of contingent payment right | (20,291) | (605) | 3,696 | 651 | (16,549) | |||||
Long-term incentive compensation(a) | 5,646 | 10,952 | 9,314 | 1,006 | 26,918 | |||||
Legal settlements, loss contingencies and other | 18 | 244 | 3,272 | 20,000 | 23,534 | |||||
Adjusted EBITDAX (Non-GAAP) | $ 327,129 | $ 332,672 | $ 455,543 | $ 316,161 | $ 1,431,505 | |||||
Three Months Ended | Twelve | |||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||
($ in thousands) | 2023 | 2023 | 2023 | 2022 | 2023 | |||||
Net Income (GAAP) | $ 16,655 | $ 250,036 | $ 1,104,446 | $ 1,600,999 | $ 2,972,136 | |||||
Adjustments to reconcile net income to Adjusted EBITDAX: | ||||||||||
Exploration expenses | 1,862 | 4,185 | 607 | 3,353 | 10,007 | |||||
Depreciation, depletion and amortization | 186,486 | 175,677 | 183,039 | 181,519 | 726,721 | |||||
Interest expense, net | 50,043 | 47,818 | 55,335 | 57,426 | 210,622 | |||||
Gain on commodity derivatives | (69,253) | (348,982) | (921,649) | (993,155) | (2,333,039) | |||||
Settlements received (paid) for commodity derivatives | 104,269 | 126,929 | (66,818) | (473,217) | (308,837) | |||||
Change in fair value of contingent payment right | 3,760 | 2,039 | (3,880) | 1,955 | 3,874 | |||||
Losses on purchases or exchanges of debt | - | 26,900 | - | - | 26,900 | |||||
Long-term incentive compensation(a) | 999 | 859 | 831 | 8,780 | 11,469 | |||||
Legal settlements, loss contingencies and other | - | - | (1,477) | (59) | (1,536) | |||||
Adjusted EBITDAX (Non-GAAP) | $ 294,821 | $ 285,461 | $ 350,434 | $ 387,601 | $ 1,318,317 | |||||
(a) | The expense associated with the Long-Term Incentive Plan Cash Award of $3.0 million, $6.5 million, $4.8 million and $6.5 million for the three months ended September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2022, respectively, is included in these amounts. Ascent did not recognize any expense associated with the Cash Award in 2023. |
RECONCILIATION OF NET DEBT & NET DEBT TO LTM ADJUSTED EBITDAX (Unaudited) | ||||
September 30, | ||||
($ in thousands) | 2024 | 2023 | ||
Net Debt: | ||||
Total debt | $ 2,407,156 | $ 2,509,692 | ||
Less: cash and cash equivalents | 4,947 | 4,415 | ||
Net Debt | $ 2,402,209 | $ 2,505,277 | ||
Net Debt to LTM Adjusted EBITDAX: | ||||
Net Debt | $ 2,402,209 | $ 2,505,277 | ||
LTM Adjusted EBITDAX (Non-GAAP) | $ 1,431,505 | $ 1,318,317 | ||
Net Debt to LTM Adjusted EBITDAX | 1.7 x | 1.9 x | ||
RECONCILIATION OF ADJUSTED FREE CASH FLOW (Unaudited) | ||||||||
Three Months Ended | Nine Months Ended | |||||||
September 30, | September 30, | |||||||
($ in thousands) | 2024 | 2023 | 2024 | 2023 | ||||
Net Cash Provided by Operating Activities (GAAP) | $ 259,851 | $ 228,717 | $ 839,311 | $ 884,142 | ||||
Adjustments to reconcile Net Cash Provided by Operating Activities to Adjusted Free Cash Flow: | ||||||||
Changes in operating assets and liabilities | (18,126) | 21,877 | 2,298 | (93,265) | ||||
Drilling and completion costs incurred | (197,486) | (206,088) | (534,385) | (666,441) | ||||
Land and leasehold costs incurred | (27,270) | (36,176) | (99,554) | (89,976) | ||||
Capitalized interest incurred | (8,697) | (8,377) | (24,225) | (27,985) | ||||
Financing commodity derivative settlements | 42,341 | - | 138,237 | - | ||||
Legal settlements, loss contingencies and other | 5,862 | 3,039 | 9,378 | 3,901 | ||||
Adjusted Free Cash Flow (Non-GAAP)(a) | $ 56,475 | $ 2,992 | $ 331,060 | $ 10,376 | ||||
(a) | Adjusted Free Cash Flow does not include the impact of the Long-Term Incentive Cash Award of $3.0 million and $14.3 million for the three and nine months ended September 30, 2024, respectively. Ascent did not recognize any expense associated with the Cash Award in 2023. |
SOURCE Ascent Resources Utica Holdings, LLC
