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10.03.2021 22:16:00
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Ascent Resources Reports Fourth Quarter And Year-End 2020 Operating And Financial Results And Announces 2021 Guidance
OKLAHOMA CITY, March 10, 2021 /PRNewswire/ --
Fourth Quarter and Full-Year 2020 Highlights:
- Averaged net production of 1.9 bcfe per day for the quarter and 2.0 bcfe per day for the full-year 2020
- Decreased average well cost to $549 per lateral foot during the quarter while averaging $611 per lateral foot for the full-year 2020, 5% below the low-end of our guidance range
- Adjusted EBITDAX(1) of $214 million for the quarter and $881 million for the full-year 2020
- Net cash provided by operating activities of $118 million for the quarter and $773 million for the full-year 2020
- Generated $54 million of free cash flow(1) during the quarter and $114 million for the full-year 2020, 14% above the high-end of our guidance range
- Reported year-end 2020 proved reserves of 9.0 tcfe using SEC pricing
- Drill-bit finding and development costs for undeveloped reserves were $0.37 per mcfe in 2020
- Initial 2021 capital guidance of $550 to $600 million maintains production of 2.0 bcfe/d while generating free cash flow of $100 to $150 million based on current market conditions
(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. |
Ascent Resources Utica Holdings, LLC ("Ascent", "our" or the "Company") today reported its fourth quarter and year-end 2020 operating and financial results and issued its initial 2021 guidance. In addition, Ascent announced a conference call with analysts and investors at 9 AM CST / 10 AM EST, Thursday, March 11, 2021. For more detailed information on Ascent, please refer to the latest investor presentation and additional information located on our website at https://www.ascentresources.com/investors.
"Ascent has successfully delivered on its operational and financial objectives in 2020," said Jeff Fisher, Chairman and Chief Executive Officer of Ascent. "Our goals coming into the year were to generate free cash flow, continue to improve on our best-in-class capital efficiencies, and access the capital markets in order to address a large, near-term debt maturity. While these goals were made more difficult by the pandemic and other macro events, we were able to successfully navigate the business through unprecedented challenges by staying disciplined, leveraging our operational capabilities and improving our balance sheet while further positioning the business for long-term success."
Fisher continued, "Our operational and financial results were achieved while continuing to prioritize the health and safety of our employees, contractors and the communities in which we operate. We successfully delivered on our 2020 production guidance while exceeding both free cash flow and capital efficiency targets. Our team continues to execute at a high level, and we are on track to deliver another outstanding year in 2021 with a focus on capital and operational discipline, margin expansion and free cash flow generation that will drive sustainable value generation for all of our stakeholders."
Fourth Quarter 2020 Financial Results
Fourth quarter 2020 net production averaged 1,886 mmcfe per day, which includes the impact from 9 bcfe of net curtailments. Net production during the quarter consisted of 1,705 mmcf per day of natural gas, 9,652 bbls per day of oil and 20,446 bbls per day of natural gas liquids ("NGL").
Fourth quarter 2020 price realizations, including the impact of derivatives, were $2.80 per mcfe. Excluding the impact of derivatives, fourth quarter 2020 price realizations were $2.65 per mcfe.
For the fourth quarter of 2020, Ascent reported net income of $169 million, adjusted net income of $15 million and adjusted EBITDAX of $214 million. Ascent incurred a total of $133 million of capital expenditures in the fourth quarter of 2020 including $104 million of drilling and completions, $11 million of acquisitions and leasehold costs and $18 million of capitalized interest. The Company generated $54 million of free cash flow in the fourth quarter of 2020.
Full-Year 2020 Financial Results
Full-year 2020 average daily production was 1,991 mmcfe per day, which includes the impact from 40 bcfe of net curtailments. Net production during the period consisted of 1,768 mmcf per day of natural gas, 11,724 bbls per day of oil and 25,421 bbls per day of NGL.
Full-year 2020 price realizations, including the impact of derivatives, were $2.71 per mcfe. Excluding the impact of derivatives, full-year 2020 price realizations were $2.08 per mcfe.
For the full-year 2020, Ascent reported a net loss of $590 million, adjusted net income of $6 million and adjusted EBITDAX of $881 million. Ascent incurred a total of $657 million of capital expenditures in 2020 including $517 million of drilling and completions, $58 million of acquisition and leasehold costs and $82 million of capitalized interest. The Company generated $114 million of free cash flow for the full-year 2020.
Balance Sheet and Liquidity
As of December 31, 2020, Ascent had total debt outstanding of approximately $2.8 billion. As of December 31, 2020, the Company had $953 million of borrowings outstanding and $149 million of letters of credit issued under its revolving credit facility, resulting in $757 million of total available liquidity comprised of $748 million of available borrowing capacity and $9 million of cash on hand. Our leverage ratio at the end of the year was 3.2x.
During the quarter, the Company continued to strengthen the balance sheet, reduce near-term debt, and increase liquidity building on the success of the exchange transaction completed in October 2020. In November 2020, the Company retired $58 million of outstanding principal of its Convertible Notes due March 1, 2021 for $88 million, a discount of approximately $2 million to the terminal value at maturity. Further, in December 2020, Ascent opportunistically accessed the capital markets and issued $300 million of Senior Notes due 2028 to repay borrowings outstanding under its revolving credit facility and to further bolster liquidity.
Operational Update
During the fourth quarter of 2020, Ascent operated 3 drilling rigs and one fracture stimulation crew. The Company spud 11 operated wells, hydraulically fractured 16 wells, and turned in line 10 wells with an average lateral length of 12,267 feet. Seven of the 10 new wells were located in the dry gas and lean gas areas while the three other wells were in the liquids-rich window. As of December 31, 2020, Ascent had 598 gross operated producing Utica wells.
During the fourth quarter of 2020, we averaged D&C costs of approximately $549 per lateral foot, a 31% reduction compared to the fourth quarter of 2019 average cost per lateral foot. These cost savings represent a significant and lasting step-change in efficiencies year-over-year, with the vast majority of the improvement due to sustainable drilling and completion efficiency gains. The improvements are reflected in reduced drilling cycle times, increased lateral feet drilled per day as well as the marked increase in the number of frac stages completed per day. The operational execution that the team has been able to achieve differentiates Ascent relative to its peers, as we continue to innovate, and leverage technology and proprietary data in order to create value through operational performance and cost reductions.
2020 Year-End Reserves
Ascent reported year-end 2020 proved reserves, under SEC guidelines, of 9.0 tcfe, of which 48% were classified as proved developed and 52% as proved undeveloped. The 2020 drill-bit F&D costs for undeveloped reserves were $0.37 per mcfe, compared to $0.48 per mcfe in 2019. A summary of the changes in Ascent's proved reserves for the full-year 2020 is included in the table below and a detailed reconciliation can be found in our financial statements.
Year-End 2020 Proved Reserves (Bcfe) | ||
Balance at December 31, 2019 | 9,252 | |
Extensions, discoveries and other additions | 907 | |
Revisions of prior estimates | (439) | |
Production | (729) | |
Balance at December 31, 2020 | 8,991 |
Hedging Update
Ascent has significant hedges in place in 2021 and beyond to reduce exposure to volatility in commodity prices, as well as to protect our expected operating cash flow. As of December 31, 2020, Ascent had hedged 1,303,000 mmbtu per day of natural gas production for the calendar year 2021, at approximately $2.54 per mmbtu. In addition, Ascent had also hedged 2,200 bbls per day of crude oil production at an average price of $50.44 per bbl through 2021.
2021 Guidance
The Company expects its full-year 2021 capital budget to come in between $550 million to $600 million, and to be fully funded with operating cash flow generated throughout the year. A detailed summary including production, expense and operational counts is included in the table that follows:
2021 Guidance | ||
Production | Full-Year 2021 | |
Total Production (bcfe/d) | 2.0 | |
% Natural Gas | 90% - 92% | |
Operating Expenses ($/mcfe)(1) | $1.50 - $1.55 | |
Capital Expenditures Incurred ($mm)(2) | $550 - $600 | |
Free Cash Flow ($mm) | $100 - $150 | |
Operations / Well Counts | ||
Operated Rigs | 3 - 4 | |
Wells Spud | 60 - 65 | |
Wells TIL'd | 65 - 70 | |
Average TIL'd Lateral Length | 13,000' |
(1) | Includes GP&T, LOE, Taxes and G&A |
(2) | Excludes Capitalized Interest |
About Ascent Resources
Ascent is the eighth largest producer of natural gas in the United States in terms of daily production and is focused on acquiring, developing, producing, 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 low-cost clean-burning energy to our country and the world, while reducing environmental impacts. For more information, visit www.ascentresources.com.
Contact:
Chris Benton – Director of Finance & Investor Relations
investor.relations@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
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Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
($ in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Revenues: | ||||||||||||||||
Natural gas | $ | 390,345 | $ | 415,718 | $ | 1,258,594 | $ | 1,589,099 | ||||||||
Oil | 30,987 | 66,593 | 138,723 | 241,521 | ||||||||||||
NGL | 37,634 | 57,668 | 118,224 | 148,639 | ||||||||||||
Commodity derivative gain (loss) | 228,899 | 83,616 | (19,167) | 441,139 | ||||||||||||
Total Revenues | 687,865 | 623,595 | 1,496,374 | 2,420,398 | ||||||||||||
Operating Expenses: | ||||||||||||||||
Lease operating expenses | 20,591 | 20,327 | 78,430 | 72,606 | ||||||||||||
Gathering, processing and transportation expenses | 230,090 | 236,158 | 919,986 | 856,126 | ||||||||||||
Production and ad valorem taxes | 9,152 | 8,198 | 37,495 | 34,167 | ||||||||||||
Exploration expenses | 26,323 | 41,561 | 104,230 | 124,477 | ||||||||||||
General and administrative expenses | 13,713 | 15,322 | 63,825 | 61,027 | ||||||||||||
Natural gas and oil depreciation, depletion and amortization | 161,449 | 203,091 | 733,450 | 702,414 | ||||||||||||
Depreciation and amortization of other assets | 774 | 875 | 3,568 | 3,239 | ||||||||||||
Total Operating Expenses | 462,092 | 525,532 | 1,940,984 | 1,854,056 | ||||||||||||
Income (Loss) from Operations | 225,773 | 98,063 | (444,610) | 566,342 | ||||||||||||
Other (Expense) Income: | ||||||||||||||||
Interest expense, net | (35,781) | (34,249) | (134,213) | (109,114) | ||||||||||||
Change in fair value of contingent payment right | (6,518) | — | (6,518) | — | ||||||||||||
Change in fair value of embedded derivative | — | 622 | — | 5,026 | ||||||||||||
Losses on purchases or exchanges of debt | (15,708) | — | (6,037) | — | ||||||||||||
Other income | 843 | 819 | 1,867 | 3,711 | ||||||||||||
Total Other Expense | (57,164) | (32,808) | (144,901) | (100,377) | ||||||||||||
Net Income (Loss) | $ | 168,609 | $ | 65,255 | $ | (589,511) | $ | 465,965 | ||||||||
ASCENT RESOURCES UTICA HOLDINGS, LLC
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December 31, | ||||||||
($ in thousands) | 2020 | 2019 | ||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 8,843 | $ | 7,346 | ||||
Accounts receivable – natural gas, oil and NGL sales | 223,976 | 260,759 | ||||||
Accounts receivable – joint interest and other | 8,466 | 20,425 | ||||||
Short-term derivative assets | 8,202 | 248,118 | ||||||
Other current assets | 8,316 | 8,468 | ||||||
Total Current Assets | 257,803 | 545,116 | ||||||
Property and Equipment: | ||||||||
Natural gas and oil properties, based on successful efforts accounting | 8,791,061 | 8,233,964 | ||||||
Other property and equipment | 31,565 | 30,818 | ||||||
Less: accumulated depreciation, depletion and amortization | (2,627,213) | (1,890,506) | ||||||
Property and Equipment, net | 6,195,413 | 6,374,276 | ||||||
Other Assets: | ||||||||
Long-term derivative assets | 2,401 | 70,778 | ||||||
Other long-term assets | 16,232 | 20,248 | ||||||
Total Assets | $ | 6,471,849 | $ | 7,010,418 | ||||
Current Liabilities: | ||||||||
Accounts payable | $ | 36,736 | $ | 68,364 | ||||
Revenue payable | 84,142 | 99,300 | ||||||
Accrued interest | 31,287 | 36,787 | ||||||
Current portion of long-term debt, net | 12,498 | — | ||||||
Short-term derivative liabilities | 54,144 | — | ||||||
Other current liabilities | 257,495 | 280,841 | ||||||
Total Current Liabilities | 476,302 | 485,292 | ||||||
Long-Term Liabilities: | ||||||||
Long-term debt, net of current portion | 2,707,382 | 2,838,676 | ||||||
Long-term derivative liabilities | 113,160 | — | ||||||
Other long-term liabilities | 73,010 | 5,067 | ||||||
Total Long-Term Liabilities | 2,893,552 | 2,843,743 | ||||||
Member's Equity | 3,101,995 | 3,681,383 | ||||||
Total Liabilities and Member's Equity | $ | 6,471,849 | $ | 7,010,418 | ||||
ASCENT RESOURCES UTICA HOLDINGS, LLC CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
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Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
($ in thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Cash Flows from Operating Activities: | |||||||||||||||
Net income (loss) | $ | 168,609 | $ | 65,255 | $ | (589,511) | $ | 465,965 | |||||||
Adjustments to reconcile net income (loss) to net cash provided | |||||||||||||||
Depreciation, depletion and amortization | 162,223 | 203,966 | 737,018 | 705,653 | |||||||||||
Change in fair value of commodity derivatives | (202,620) | (3,077) | 475,027 | (249,457) | |||||||||||
Change in fair value of interest rate derivatives | 41 | — | 569 | — | |||||||||||
Impairment of unproved natural gas and oil properties | 25,201 | 36,450 | 100,207 | 115,802 | |||||||||||
Non-cash interest expense | 5,953 | 6,535 | 25,347 | 27,305 | |||||||||||
Change in fair value of contingent payment right | 6,518 | — | 6,518 | — | |||||||||||
Change in fair value of embedded derivative | — | (622) | — | (5,026) | |||||||||||
Losses (gains) on purchases or exchanges of debt | 1,803 | — | (11,500) | — | |||||||||||
Stock-based compensation | 1,065 | — | 1,775 | — | |||||||||||
Other | (13) | (360) | (1,577) | 148 | |||||||||||
Changes in operating assets and liabilities | (50,306) | (87,239) | 29,148 | 79,728 | |||||||||||
Net Cash Provided by Operating Activities | 118,474 | 220,908 | 773,021 | 1,140,118 | |||||||||||
Cash Flows from Investing Activities: | |||||||||||||||
Drilling and completion costs | (99,627) | (235,338) | (571,860) | (1,125,216) | |||||||||||
Acquisitions of natural gas and oil properties | (27,607) | (55,860) | (139,106) | (258,001) | |||||||||||
Proceeds from divestitures of natural gas and oil properties | — | (2,067) | — | 12,474 | |||||||||||
Additions to other property and equipment | (48) | (583) | (1,509) | (3,547) | |||||||||||
Net Cash Used in Investing Activities | (127,282) | (293,848) | (712,475) | (1,374,290) | |||||||||||
Cash Flows from Financing Activities: | |||||||||||||||
Proceeds from credit facility borrowings | 370,000 | 355,000 | 1,065,000 | 1,270,000 | |||||||||||
Repayment of credit facility borrowings | (585,000) | (272,000) | (1,300,000) | (1,030,000) | |||||||||||
Proceeds from issuance of long-term debt, net | 300,000 | — | 300,000 | — | |||||||||||
Repayment of long-term debt | (87,769) | — | (138,764) | — | |||||||||||
Proceeds from the exchange | 20,000 | — | 20,000 | — | |||||||||||
Cash paid for debt issuance costs | (4,548) | (9,512) | (6,842) | (9,512) | |||||||||||
Other | — | — | 1,557 | — | |||||||||||
Net Cash Provided by (Used in) Financing Activities | 12,683 | 73,488 | (59,049) | 230,488 | |||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 3,875 | 548 | 1,497 | (3,684) | |||||||||||
Cash and Cash Equivalents, Beginning of Period | 4,968 | 6,798 | 7,346 | 11,030 | |||||||||||
Cash and Cash Equivalents, End of Period | $ | 8,843 | $ | 7,346 | $ | 8,843 | $ | 7,346 | |||||||
ASCENT RESOURCES UTICA HOLDINGS, LLC NATURAL GAS, OIL AND NGL PRODUCTION AND PRICES (Unaudited)
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Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net Production Volumes: | ||||||||||||||||
Natural gas (mmcf) | 156,874 | 182,913 | 646,982 | 638,243 | ||||||||||||
Oil (mbbls) | 888 | 1,348 | 4,291 | 4,794 | ||||||||||||
NGL (mbbls) | 1,881 | 3,002 | 9,304 | 8,685 | ||||||||||||
Natural Gas Equivalents (mmcfe) | 173,484 | 209,016 | 728,553 | 719,113 | ||||||||||||
Average Daily Net Production Volumes: | ||||||||||||||||
Natural gas (mmcf/d) | 1,705 | 1,988 | 1,768 | 1,749 | ||||||||||||
Oil (mbbls/d) | 10 | 15 | 12 | 13 | ||||||||||||
NGL (mbbls/d) | 20 | 33 | 25 | 24 | ||||||||||||
Natural Gas Equivalents (mmcfe/d) | 1,886 | 2,272 | 1,991 | 1,970 | ||||||||||||
% Natural Gas | 90 | % | 88 | % | 89 | % | 89 | % | ||||||||
% Liquids | 10 | % | 12 | % | 11 | % | 11 | % | ||||||||
Average Sales Prices: | ||||||||||||||||
Natural gas ($/mcf) | $ | 2.49 | $ | 2.27 | $ | 1.95 | $ | 2.49 | ||||||||
Oil ($/bbl) | $ | 34.90 | $ | 49.40 | $ | 32.33 | $ | 50.38 | ||||||||
NGL ($/bbl) | $ | 20.01 | $ | 19.21 | $ | 12.71 | $ | 17.11 | ||||||||
Natural Gas Equivalents ($/mcfe) | $ | 2.65 | $ | 2.58 | $ | 2.08 | $ | 2.75 | ||||||||
Settlements of commodity derivatives ($/mcfe) | 0.15 | 0.39 | 0.63 | 0.27 | ||||||||||||
Average sales price, after effects of settled derivatives ($/mcfe) | $ | 2.80 | $ | 2.97 | $ | 2.71 | $ | 3.02 | ||||||||
ASCENT RESOURCES UTICA HOLDINGS, LLC CAPITAL EXPENDITURES INCURRED (Unaudited)
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Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
($ in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Capital Expenditures Incurred: | ||||||||||||||||
Drilling and completion costs incurred | $ | 104,342 | $ | 149,821 | $ | 517,079 | $ | 1,030,294 | ||||||||
Acquisition and leasehold costs incurred | 10,852 | 30,483 | 58,018 | 141,631 | ||||||||||||
Capitalized interest incurred | 18,089 | 24,474 | 82,208 | 123,370 | ||||||||||||
Total Capital Expenditures Incurred | $ | 133,283 | $ | 204,778 | $ | 657,305 | $ | 1,295,295 | ||||||||
ASCENT RESOURCES UTICA HOLDINGS, LLC
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Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
($ in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Net Income (Loss) | $ | 168,609 | $ | 65,255 | $ | (589,511) | $ | 465,965 | ||||||||
Adjustments to reconcile net income (loss) to adjusted net | ||||||||||||||||
Impairment of unproved natural gas and oil properties | 25,201 | 36,450 | 100,207 | 115,802 | ||||||||||||
Change in fair value of commodity derivatives | (202,620) | (3,077) | 475,027 | (249,457) | ||||||||||||
Change in fair value of interest rate derivatives | 41 | — | 569 | — | ||||||||||||
Change in fair value of contingent payment right | 6,518 | — | 6,518 | — | ||||||||||||
Losses on purchases or exchanges of debt | 15,708 | — | 6,037 | — | ||||||||||||
Stock-based compensation | 1,065 | — | 1,775 | — | ||||||||||||
Non-recurring legal expense | — | — | 5,572 | — | ||||||||||||
Change in fair value of embedded derivative | — | (622) | — | (5,026) | ||||||||||||
Other | — | 61 | — | 375 | ||||||||||||
Adjusted Net Income (Non-GAAP)(a)(b) | $ | 14,522 | $ | 98,067 | $ | 6,194 | $ | 327,659 | ||||||||
(a) | As shown above and on the following pages, Ascent uses adjusted net income (loss), EBITDAX, adjusted EBITDAX, discretionary cash flow and free cash flow (non-GAAP measures) as supplemental measures to evaluate the performance of its assets. Ascent believes these non-GAAP measures provide meaningful information to our investors, as discussed below. These non-GAAP measures, as used and defined by Ascent, are not measures of performance as determined by United States generally accepted accounting principles (US GAAP) and may not be comparable to similarly titled measures employed by other companies. |
Non-GAAP measures should not be considered in isolation or as substitutes for operating income, net income or loss, cash flows provided by operating, investing and financing activities or other income or cash flow statement data prepared in accordance with US GAAP. Non-GAAP measures provide no information regarding a company's capital structure, borrowings, interest costs, capital expenditures and working capital movement. Non-GAAP measures do not represent funds available for discretionary use because those funds may be required for debt service, capital expenditures, working capital, exploration expenses and other commitments and obligations. However, Ascent's management team believes these non-GAAP measures are useful to an investor in evaluating Ascent's financial performance because these measures: | |
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There are significant limitations to using non-GAAP measures as measures of performance, including the inability to analyze the effect of certain recurring and non-recurring items that materially affect Ascent's net income or loss, the lack of comparability of results of operations of different companies, and the different methods of calculating non-GAAP measures reported by different companies. | |
(b) | Ascent defines "adjusted net (loss) income" as net income (loss) before impairment of unproved natural gas and oil properties; changes in fair value of commodity derivatives; change in fair value of interest rate derivatives; change in fair value of contingent payment right; (gains) losses on purchases or exchanges of debt; stock-based compensation; non-recurring legal expense (benefit); change in fair value of embedded derivative; acquisition expenses; impairment of other property and equipment; and other non-recurring items. |
ASCENT RESOURCES UTICA HOLDINGS, LLC | ||||||||||||||||
EBITDAX and Adjusted EBITDAX | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
($ in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Net Income (Loss) | $ | 168,609 | $ | 65,255 | $ | (589,511) | $ | 465,965 | ||||||||
Adjustments to reconcile net income (loss) to EBITDAX: | ||||||||||||||||
Exploration expenses | 26,323 | 41,561 | 104,230 | 124,477 | ||||||||||||
Natural gas and oil depreciation, depletion and amortization | 161,449 | 203,091 | 733,450 | 702,414 | ||||||||||||
Depreciation and amortization of other assets | 774 | 875 | 3,568 | 3,239 | ||||||||||||
Interest expense, net | 35,781 | 34,249 | 134,213 | 109,114 | ||||||||||||
EBITDAX (Non-GAAP)(a)(b) | 392,936 | 345,031 | 385,950 | 1,405,209 | ||||||||||||
Adjustments to reconcile EBITDAX to Adjusted EBITDAX: | ||||||||||||||||
Change in fair value of commodity derivatives | (202,620) | (3,077) | 475,027 | (249,457) | ||||||||||||
Change in fair value of contingent payment right | 6,518 | — | 6,518 | — | ||||||||||||
Losses on purchases or exchanges of debt | 15,708 | — | 6,037 | — | ||||||||||||
Stock-based compensation | 1,065 | — | 1,775 | — | ||||||||||||
Non-recurring legal expense | — | — | 5,572 | — | ||||||||||||
Change in fair value of embedded derivative | — | (622) | — | (5,026) | ||||||||||||
Other | — | 61 | — | 375 | ||||||||||||
Adjusted EBITDAX (Non-GAAP)(b)(c) | $ | 213,607 | $ | 341,393 | $ | 880,879 | $ | 1,151,101 | ||||||||
(a) | Ascent defines "EBITDAX" as net income (loss) before exploration expenses; depreciation, depletion and amortization; and interest expense, net. |
(b) | See footnote (a) on page 10 for a discussion around our uses of non-GAAP measures. |
(c) | Ascent defines "adjusted EBITDAX" as EBITDAX before changes in fair value of commodity derivatives; change in fair value of contingent payment right; (gains) losses on purchases or exchanges of debt; stock-based compensation; non-recurring legal expense (benefit); change in fair value of embedded derivative; and other non-recurring items. |
ASCENT RESOURCES UTICA HOLDINGS, LLC | ||||||||||||||||||||
Last Twelve Months ("LTM") EBITDAX and Adjusted EBITDAX | ||||||||||||||||||||
Three Months | Twelve Months Ended | |||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
($ in thousands) | 2020 | 2020 | 2020 | 2020 | 2020 | |||||||||||||||
Net Income (Loss) | $ | 168,609 | $ | (552,432) | $ | (291,050) | $ | 85,362 | $ | (589,511) | ||||||||||
Adjustments to reconcile net income (loss) to | ||||||||||||||||||||
Exploration expenses | 26,323 | 28,096 | 22,858 | 26,953 | 104,230 | |||||||||||||||
Natural gas and oil depreciation, depletion | 161,449 | 195,120 | 201,331 | 175,550 | 733,450 | |||||||||||||||
Depreciation and amortization of other assets | 774 | 928 | 942 | 924 | 3,568 | |||||||||||||||
Interest expense, net | 35,781 | 33,279 | 31,233 | 33,920 | 134,213 | |||||||||||||||
EBITDAX (Non-GAAP)(a)(b) | 392,936 | (295,009) | (34,686) | 322,709 | 385,950 | |||||||||||||||
Adjustments to reconcile EBITDAX to Adjusted | ||||||||||||||||||||
Change in fair value of commodity | (202,620) | 500,175 | 239,847 | (62,375) | 475,027 | |||||||||||||||
Change in fair value of contingent payment | 6,518 | — | — | — | 6,518 | |||||||||||||||
(Gains) losses on purchases or exchanges of | 15,708 | 3,632 | 190 | (13,493) | 6,037 | |||||||||||||||
Stock-based compensation | 1,065 | 710 | — | — | 1,775 | |||||||||||||||
Non-recurring legal expense | — | — | 5,572 | — | 5,572 | |||||||||||||||
Adjusted EBITDAX (Non-GAAP)(b)(c) | $ | 213,607 | $ | 209,508 | $ | 210,923 | $ | 246,841 | $ | 880,879 | ||||||||||
(a) | Ascent defines "EBITDAX" as net income (loss) before exploration expenses; depreciation, depletion and amortization; and interest expense, net. |
(b) | See footnote (a) on page 10 for a discussion around our uses of non-GAAP measures. |
(c) | Ascent defines "adjusted EBITDAX" as EBITDAX before changes in fair value of commodity derivatives; change in fair value of contingent payment right; (gains) losses on purchases or exchanges of debt; stock-based compensation; non-recurring legal expense (benefit); change in fair value of embedded derivative; and other non-recurring items. |
ASCENT RESOURCES UTICA HOLDINGS, LLC | ||||||||
Net Debt and Net Debt to LTM Adjusted EBITDAX | ||||||||
December 31, | ||||||||
($ in thousands) | 2020 | 2019 | ||||||
Net Debt: | ||||||||
Total debt(a) | $ | 2,827,418 | $ | 2,840,336 | ||||
Less: cash and cash equivalents | 8,843 | 7,346 | ||||||
Net Debt(b) | $ | 2,818,575 | $ | 2,832,990 | ||||
Net Debt to LTM Adjusted EBITDAX: | ||||||||
Net Debt(b) | $ | 2,818,575 | $ | 2,832,990 | ||||
LTM Adjusted EBITDAX(c) | $ | 880,879 | $ | 1,151,101 | ||||
Net Debt to LTM Adjusted EBITDAX | 3.2 | x | 2.5 | x | ||||
(a) | Total debt represents outstanding principal balances and includes the current portion of our long-term debt. |
(b) | Ascent defines "Net Debt" 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 its cash and cash equivalents on hand. |
(c) | Adjusted EBITDAX for the LTM ended December 31, 2020 and 2019, respectively. |
ASCENT RESOURCES UTICA HOLDINGS, LLC
| ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
($ in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Net Cash Provided by Operating Activities | $ | 118,474 | $ | 220,908 | $ | 773,021 | $ | 1,140,118 | ||||||||
Adjustments to reconcile Net Cash Provided by Operating | ||||||||||||||||
Changes in operating assets and liabilities | 50,306 | 87,239 | (29,148) | (79,728) | ||||||||||||
Discretionary Cash Flow (Non-GAAP)(a)(b) | 168,780 | 308,147 | 743,873 | 1,060,390 | ||||||||||||
Adjustments to reconcile Discretionary Cash Flow to Free Cash | ||||||||||||||||
Drilling and completion costs incurred | (104,342) | (149,821) | (517,079) | (1,030,294) | ||||||||||||
Acquisition and leasehold costs incurred | (10,852) | (30,483) | (58,018) | (141,631) | ||||||||||||
Capitalized interest incurred | (18,089) | (24,474) | (82,208) | (123,370) | ||||||||||||
Non-recurring legal expense | — | — | 5,572 | — | ||||||||||||
Debt Exchange Fees | 13,905 | — | 17,537 | — | ||||||||||||
Other | 4,271 | — | 4,271 | — | ||||||||||||
Free Cash Flow (Non-GAAP)(b)(c) | $ | 53,673 | $ | 103,369 | $ | 113,948 | $ | (234,905) | ||||||||
(a) | Discretionary cash flow is widely accepted as a financial indicator of a natural gas and oil company's ability to generate cash which is used to internally fund exploration and development activities and service debt. Ascent defines "discretionary cash flow" as net cash provided by operating activities before changes in operating assets and liabilities. |
(b) | See footnote (a) on page 10 for a discussion around our uses of non-GAAP measures. |
(c) | Free cash flow is an indicator of a company's ability to generate funding to maintain or expand its asset base, make distributions and repurchase or extinguish debt. Ascent defines "free cash flow" as discretionary cash flow less incurred drilling and completion costs, acquisitions of natural gas and oil properties, capitalized interest, debt exchange fees and certain non-recurring items. |
Roll-Forward of Proved Reserves | |||||||
Year Ended | |||||||
December 31, | |||||||
(in mmcfe) | 2020 | ||||||
Proved Reserves at December 31, 2019 | 9,251,715 | ||||||
Extensions, discoveries and other additions | 907,393 | ||||||
Revisions | (439,680) | ||||||
Production | (728,553) | ||||||
Proved Reserves at December 31, 2020 | 8,990,875 | ||||||
Proved developed reserves | 4,275,548 | ||||||
Proved developed reserves percentage | 48 | % | |||||
Standardized Measure of Discounted Future Net Cash Flows ($ in thousands)(GAAP) | $ | 1,265,100 | |||||
Add: Present value of future income taxes discounted at 10% per annum(a) | — | ||||||
PV-10 ($ in thousands) (Non-GAAP)(a) | $ | 1,265,100 | |||||
(a) | Reserve volumes and PV-10 were estimated using SEC reserve recognition standards and pricing assumptions based on the unweighted arithmetic average of the prices on the first day of each month within the 12-month period ended December 31, 2020. The prices used in Ascent's reserve reports were $1.99 per mcf of natural gas and $39.54 per bbl of oil and condensate, before basis differential adjustments. PV-10 is a non-GAAP measure that typically differs from the standardized measure, because the former does not include the effects of estimated future income tax expense. However, because Ascent is a disregarded entity for income tax purposes, it has estimated no future income tax expense and the two measures are the same as of December 31, 2020, as calculated in the reconciliation above. PV-10 can be used within the industry and by creditors and securities analysts to evaluate estimated net cash flows from proved reserves on a more comparable basis. |
View original content:http://www.prnewswire.com/news-releases/ascent-resources-reports-fourth-quarter-and-year-end-2020-operating-and-financial-results-and-announces-2021-guidance-301245029.html
SOURCE Ascent Resources, LLC
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