Ascent Resources reported strong Q2 2024 results, with a 5% increase in net production and a significant 60% rise in liquids production compared to the prior year. The company generated $333 million in Adjusted EBITDAX and $76 million in Adjusted Free Cash Flow, while receiving credit rating upgrades from major agencies. Ascent also updated its full-year 2024 guidance, increasing production expectations and lowering operating expenses.
The document you provided is Ascent Resources’ Q2 2024 Press Release. Here are some key highlights and details from the release:
Second Quarter 2024 Highlights:
- Net Production: Averaged 2,190 MMcfe per day, a 5% increase over the prior year period.
- Liquids Production: Averaged nearly 50 Mbbls per day, representing 13% of total production, which is a significant 60% increase over the prior year.
- Realized Pre-Hedge Natural Gas Equivalent Price: $2.19 per Mcfe, with a $0.30 per Mcfe premium to NYMEX pricing during the quarter.
- Financial Metrics:
- Cash Flow from Operating Activities: $211 million.
- Adjusted EBITDAX: $333 million.
- Adjusted Free Cash Flow: $76 million.
- Credit Rating Upgrades: Received upgrades from S&P, Moody’s, and Fitch.
- Sustainability: Issued the 6th Annual Sustainability Report and achieved Grade A certification for 100% of natural gas production from MiQ for the third consecutive year.
Guidance Update for Full-Year 2024:
- Production: Revised guidance to 2,100 – 2,200 MMcfe per day, with an increased liquids mix by 2% and lowered operating expenses by $0.05 per Mcfe at the mid-point.
- Capital Expenditures: Updated guidance to $750 – $810 million, with drilling and completion costs estimated at $625 – $675 million.
Operational Performance:
- Spud 19 operated wells, hydraulically fractured 18 wells, and turned-in-line 17 wells with an average lateral length of 13,761 feet.
- Total of 888 gross operated producing Utica wells as of June 30, 2024.
Financial Results:
- Net Loss: $98 million for Q2 2024.
- Adjusted Net Income: $96 million.
- Total Revenues: $460 million, down from $785 million in Q2 2023.
- Capital Expenditures: $213 million in Q2 2024, including $157 million for drilling and completion costs.
Hedging:
- Significant hedges in place to mitigate commodity price volatility, including natural gas and crude oil hedges extending through 2027.
In conclusion, Ascent Resources continues to demonstrate strong operational and financial performance in Q2 2024, with strategic improvements in production and cost management. The company’s focus on increasing liquids production, coupled with effective hedging strategies and credit rating upgrades, positions it well for sustained growth and stability in a volatile market. Ascent remains committed to maximizing shareholder value through prudent financial management and operational excellence as it moves forward in the second half of the year.
