Ascent Resources Posts Strong 2024 Financial Results & 2025 Plans
Ascent Resources Reports Stellar Financial Results for 2024
Ascent Resources Utica Holdings, LLC has released its operating and financial results for the fourth quarter and the entire year of 2024, showcasing an impressive performance despite challenging market conditions in the natural gas sector. The company's achievements underline its strong operational efficiency and strategic focus on value generation while preparing for future growth in 2025.
2024 Highlights
The net production for the fourth quarter averaged 2,186 mmcfe per day, while the full year averaged 2,166 mmcfe per day. The increase in liquid production reached 44 mbbls per day, making up 12% of total production, representing a significant growth of 44% compared to 2023.
Ascent's annual realized natural gas equivalent prices pre-hedge averaged $2.54 per mcfe, which is notable as it surpassed NYMEX natural gas prices by $0.27. In terms of cash flows from operations, the company reported $280 million for the quarter, amounting to $1.1 billion for the year.
In addition, Ascent reported an Adjusted EBITDAX of $385 million for the fourth quarter, totalling $1.5 billion for the year. The Adjusted Free Cash Flow stood at $202 million for the quarter and $533 million for the year, marking five consecutive years of positive free cash flow generation.
Operational Efficiency
Ascent has proven its operational excellence by achieving a remarkable safety milestone, accumulating over 2 million man-hours without a single employee injury. Moreover, it reported 3.6 million man-hours without a lost time injury, underscoring the company’s commitment to workplace safety.
2025 Guidance Overview
Looking ahead to 2025, Ascent Resources has provided an initial production guidance of 2.05 to 2.15 bcfe per day, aiming to increase liquids production to 15% of total output. Personnel and operational enhancements will include capital expenditures projected between $755 million and $815 million, focusing primarily on drilling activities and land acquisition efforts.
Financial Position
At the end of 2024, Ascent had validated total proved reserves of 9.0 tcfe, representing a recycling ratio of 139% with a robust reserve profile. As for their balance sheet, total debt registered at approximately $2.3 billion, with $1.4 billion in liquidity, highlighting the company's solid financial stability.
Significance of Driven Performance
The impressive fourth-quarter results and overall annual performance reflects Ascent Resources' disciplined approach in navigating financial and operational challenges within the energy sector. The management team, led by Chairman and CEO Jeff Fisher, believes that 2025 presents a prime opportunity for growth driven by anticipated improvements in the natural gas market.
Fisher remarks, “Our results affirm our strategy of effectively balancing activity across our diversified asset portfolio while concurrently expanding operational timeliness through active leasing.” This serves as a testament to the resilient strategy that Ascent Resources employs in ensuring continuity and growth in asset offerings.
Frequently Asked Questions
What were Ascent Resources' average production metrics for 2024?
The overall net production averaged 2,166 mmcfe per day for the year, with fourth-quarter figures reflecting an average of 2,186 mmcfe daily.
How did cash flows perform in 2024?
Ascent generated $280 million in cash flows from operations during the fourth quarter and achieved a total of $1.1 billion for the entire year.
What are the projections for 2025?
The company anticipates producing between 2.05 to 2.15 bcfe per day and aims for liquids production to constitute 15% of the overall mix.
What safety metrics were highlighted in the 2024 report?
Ascent has reported over 2 million man-hours without incidents of employee injuries, reflecting a significant commitment to workplace safety.
What does the 2025 capital expenditure plan entail?
The capital expenditures are expected to range from $755 million to $815 million, focusing on drilling and land acquisition initiatives.
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