July 1, 2022 Erin

Ascent Resources, LLC Announces Utica Shale Bolt-On Acquisition, Extension of Revolving Credit Facility Maturity and Borrowing Base Increase

Oklahoma City, Oklahoma, July 1, 2022 (PR Newswire) – Ascent Resources, LLC (together with its subsidiaries, “Ascent” or the “Company”) announced today that it has entered into a Purchase and Sale Agreement with an undisclosed seller to acquire all of its assets in the Utica Shale in Ohio for a total purchase price of $270 million, subject to customary closing purchase price adjustments. Ascent intends to fund the transaction with a combination of cash on hand and borrowings under its revolving credit facility (“Credit Facility”). The Company has also entered into an amended and restated credit agreement with a syndicate of banks to extend the maturity of the Credit Facility to June 2027 while increasing the borrowing base and elected commitment amount to $3.0 billion and $2.0 billion, respectively. The Credit Facility will be governed by the lessor of the borrowing base and the elected commitment amount.

The acquisition expands Ascent’s asset base in the Ohio Utica Shale play by ~26,800 net acres and increases net production by approximately 60 mmcfe/d. The Company already holds working interests in a material portion of the acquired production and, as such, is very familiar with the acquired acreage. In addition, the acquisition comes with a substantial inventory of identified drilling locations in both the Utica and Marcellus which we expect to add high margin cash flow in the future. The acquisition requires no incremental overhead or external financing and is immediately accretive to Adjusted Free Cash Flow and corporate returns. Consistent with past practice, the Company has hedged a significant portion of the expected production from the asset to capture the strong economics and returns offered in the current market.

Jeff Fisher, Ascent’s Chairman and Chief Executive Officer, commented “We are excited to announce these strategic transactions as they highlight both our operational and financial execution. Through the acquisition we have added high quality acreage and production in the core of the Utica Shale at an attractive valuation, while also picking up prospective locations in the Marcellus. This transaction is immediately accretive to our financial metrics and returns while adding high-quality undeveloped inventory to our portfolio. The extension and increase of our credit facility provides the business with additional access to capital to execute on our long-term returns based strategy.”

About Ascent Resources:

Ascent is one of the largest private producers of natural gas in the United States 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.

This press release contains forward-looking statements within the meaning of U.S. federal securities laws. Forward-looking statements in this press release include, but are not limited to, statements regarding the transaction. These statements are not guarantees of future performance and are subject to known and unknown risks and uncertainties. Actual results may vary materially from those expressed or implied in this press release. These statements are made as of the date of this press release and Ascent undertakes no duty or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

Chris Benton
Director – Finance and Investor Relations