Ascent Resources, LLC Completes Tender Offer for Common Units

Ascent Resources Announces Tender Offer Completion

Ascent Resources, LLC has officially completed its tender offer, which aimed to acquire Series A and Series B units, collectively referred to as Common Units. This tender offer was designed to provide an engaging opportunity for current unitholders to sell their units at competitive prices. Ascent has shown its commitment to enhancing shareholder value through this strategic financial move.

Details of the Tender Offer

The company set a maximum purchase price of $23.75 per Common Unit, allowing for up to $25 million in total acquisitions. The tender offer was structured as an unmodified reverse Dutch auction, which provided unitholders with the flexibility to determine price levels at which they were willing to sell their units. By establishing this framework, Ascent placed control in the hands of the unitholders, making it an attractive proposition for participants.

Tender Offer Timeline

The formal offer was issued with specific terms and encompassed a competitive pricing range. As of the cutoff at 5:00 p.m. ET on the designated expiration date, a significant number of 3,511,825 Common Units were tendered. The acceptance of these units indicates robust interest from unitholders looking to capitalize on favorable market conditions.

Investment and Funding

In a proactive move, Ascent accepted purchases of all validly tendered Common Units within an aggregate price of $81.6 million. The company plans to fund these purchases using cash reserves alongside available borrowings from its senior secured revolving credit facility. This approach reflects a sound financial strategy designed to maintain liquidity while fulfilling commitments to its unitholders.

Ascent's Commitment to Sustainable Energy

Ascent Resources stands tall as one of the largest private natural gas producers in the United States, primarily concentrated on developing key assets within the Utica Shale. The company has embraced its role amidst increasing energy demand and has set out with a clear focus on lowering environmental impacts while providing a reliable energy source. This dual commitment to financial growth and sustainable practices underscores Ascent’s strategic goals moving forward.

Corporate Social Responsibility

Through its operations, Ascent Resources prioritizes good corporate citizenship. The company is driven by the notion of delivering clean, affordable energy while also being a steward of the environment. Its ongoing initiatives are aimed at reducing emissions and promoting sustainable practices throughout its operational lifecycle.

Final Thoughts on the Tender Offer

The completion of the tender offer marks a significant milestone in Ascent Resources’ financial journey. By embracing this opportunity, unitholders have not only connected with the company’s vision for sustainable growth but also have positioned themselves advantageously in an ever-evolving energy market. The company remains committed to transparency and will continue to keep stakeholders updated on further developments.

Frequently Asked Questions

What was the main purpose of the tender offer?

The tender offer aimed to allow unitholders to sell their Series A and Series B units for cash, enhancing shareholder engagement and value.

How much was the maximum price per Common Unit?

The maximum purchase price set for the Common Units was $23.75.

How many Common Units were tendered?

A total of 3,511,825 Common Units were validly tendered by the expiration date.

How will the company fund the tender offer settlement?

The settlement will be funded through cash reserves and borrowings available under a credit facility of the subsidiary.

What is Ascent Resources' focus in the energy market?

Ascent Resources focuses on operating and developing natural gas and oil properties while prioritizing environmental sustainability and energy efficiency.

About The Author

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