OKLAHOMA CITY, March 21, 2019 /PRNewswire/ — Ascent Resources, LLC (together with its subsidiaries, “Ascent” or the “Company”) today released certain fourth quarter and end of year 2018 operational and financial results and 2019 guidance. Key milestones and accomplishments in 2018 included:
- Achieving record daily production of approximately 2.4 bcfe/d gross and 1.9 bcfe/d net in December 2018;
- Increasing the Company’s proved natural gas, oil and natural gas liquids reserves to approximately 7.6 tcfe, with a PV-10 value at SEC pricing of approximately $6.0 billion, as of December 31, 2018;
- Improving well EURs and capital efficiency through longer laterals and optimized well completions, while continuing to deliver basin leading well cost and performance metrics;
- Achieving record fourth quarter and annual Adjusted EBITDAX of $318 million and $844 millionrespectively;
- Increasing the Company’s acreage position in the core of the southern Utica Shale to approximately 311,000 net leasehold acres with royalty interests in more than 71,000 fee mineral acres; and
- Successfully increasing the borrowing base on the Company’s revolving credit facility from $925 million to a fully committed $2 billion.
“2018 was another exciting year for Ascent with our team efficiently integrating several strategic acquisitions, delivering significant organic growth through the drill bit and achieving record financial and operational results,” said Jeff Fisher, Ascent’s Chairman and Chief Executive Officer. “Operationally, our team continues to execute at a high level of efficiency, with continued achievements realized in safety, well performance, and well cost. Ascent remains the largest producer in the Utica Shale, operating 29 of the top 40 natural gas wells and 21 of the top 40 oil wells in Ohio during 2018. In addition to this outstanding operating performance, we remain focused on maintaining a strong balance sheet and liquidity profile. Our 2019 operational plans are supported by our substantial operating cash flow, ample liquidity from our $2.0 billion revolving credit facility and a robust hedging portfolio. Using the midpoint of our 2019 guidance, we have proactively hedged approximately 85% of our anticipated natural gas production and approximately 75% of our anticipated oil production for the remainder of 2019. We believe 2019 will be an inflection point for Ascent as we achieve a size and scale that should allow us, at current strip prices, to reach cash flow neutrality before the end of 2019 and generate significant free cash flow in 2020 and beyond.”
2019 Capital Budget and Production Guidance
In 2019, the Company forecasts net production to average between 2.0 – 2.2 bcfe/d, consisting of approximately 90% natural gas, 7% natural gas liquids and 3% crude oil. Capital expenditures are anticipated to be between $1.1 and $1.25 billion and consist of approximately $1.0 to $1.1 billion in drilling & completion costs and approximately $130 to $170 million in land expenditures. At the midpoint of the capital plan, the Company expects to spud between 90 to 100 gross wells, complete 100 to 110 gross wells, and bring online 120 to 130 gross operated wells.
About Ascent Resources
Ascent Resources is a leading private exploration and production company focused on acquiring, exploring for, developing, producing and operating natural gas and oil properties in the Utica Shale. The Company is capitalized with equity investments from various private equity sponsors, led by funds managed by The Energy & Minerals Group and First Reserve. For more information, please visit www.ascentresources.com.